Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-18
SEIZURE AND MORTON ON REsUMP.

speech against imitation and for re-
sumption was amply sufficient to JUS
tify Senator Morton in makinga stated,
critical review of it; but the latter gen.
tleman was unfortunate in assuming
that the formers argument was falla-
cious-a proposition which he utterly
failed to establish. Senator Morton
has done little more than to prove that
the problem of dissOciating the national
currency from the national debt is de-
cidedly beyond his comprehension.
He was unjust enough to assume, at
the outset of his remarks, that Mr..
Schurz proposed contraction as
means of resumption. He
argued throughout upon this
false assumption and, of
course, failed to shake his oppo-
nent's logic. Mr.. Schurz only proposed
that Congress should take advantage
OF the present contraction of prices to
institute resumption; and yet Mr.. Nor
ton insists upon the Misrepresentation,
saying, at would be well for the coun-
try to understand now that the propo-
sition is that We return to specie pay
ment by contraction of the currency"
This language is calculated to cheat
the country of the truth. 1t is difficult
TO see how contraction would result
from resumption; if it should, it would
be only a contraction of volume But
Mr.. Morton should know that there is
a vast distinction between contraction
of volume and contraction of value.
Imitation of volume contracts value or
diminishes purchasing power. But
contraction of volume initiates value.
The country understands this and has
little to fear of what frightens Mr.
"contractions of currency"
But, in fact, there is no contraction in
the process of raising the notes of the
country to a par with gold. The vol
ume would probably remain about the
same, while the purchasing power
would increase. 1t is quite the oppo-
site of contraction; it is initiation of
value. But Mr.. Morton relies mainly
upon the argument of analogy and
seems entirely satisfied of the truth of
his conclusions. He was thoroughly
imbued with the perils that a nan
would encounter by descending from
Lake Erie to Lake Ontario over the
Niagara Falls. This adventure he
thinks would be disastrous. Hardly
less disastrous, he weens, to pass from
our present currency to a specie basis.
He next makes an analogue of
the commerce of England
and this country, and exclaims
that our currency is not redundant!
What a glorious fact Not forsaking
his argument of analogy, Mr.. Morton
next informs Mr.. Schurz that Austria,
Germany and Italy had made
the greatest progress during the last
ten years. He is not bold enough to
assert it, but he hints TO Mr.. Schurz
that this progress has been due to a de-
preciated currency in each case, and
that, therefore, a deprecated currency
is the very thing we must have in this
if We expect to progress.
This illustrates, as forcibly as we could
wish, the weakness OF the reasoning
upon which the Senator depended. 1t
is well known TO all thinkers, that the
from analogy by itself never
lid prove anything. No good reasoner
would employ it for anything but mere
Illustration, much less oppose it to
-ogic.
The argument, upon which Mr..
Schurz chiefly relied, and which he
therefore placed towards the close of
MS address, Is passed over by Mr.. Nor
-on IN silence. That argument was,
hat the Government is in law Lound to
redeem its promises to pay as soon as
possible. Mr.. Morton did not choose
. say anything about this, and for all
We know, it did not carry any force to
lis mind. 1t is, indeed, the strongest
'eason why the Government should be-
lin to resume now. 1t is the reason,
which embodies the great principle up
N which the controversy turns. If
he fnanciers of the country could be
persuaded that the Government, or the
,eople, do not recognize and acknowl-
,dge their obligation in law to return
o specie payments as soon as possible,
he currency would at once depre-
late to a startling extent, and |
produce disastrous results. If Senator |
iIorton's argument should deter the
ountry from pursuing the course ad-
Used by Senator Schurz now, it should |
qually deter the country five, ten or
fly years hence. There is. nothing to
revent gradual resumption of specie
ayments from the present moment.
his reflection is the more pleasurable
Of that the honest business men of the
Ountry so much desire a resumption.
me way to accomplish gradualresump-
ion is to substitute first coin for the
fractional currency now Outstand-
lg, about fifty millions, and then
squire the redemption of all
reenbacks and bank notes below
certain denomination, say five dollars.
his would bring about gradual and
eneficial resumption, would Obviate
be only real difficulty in the way, and
leet the only valid objection that has
cen urged against it, viz: That re-
lmption would operate as tax on the
ebtor class, by making that class pay
lore in value to crafty their creditors,
lille it would pay the same nominally.
hose who oppose resumption are hap
ilv described by Mr.. SchurZ.