The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1874-04-01

| tuclf theories 10 uioTt uttiuuSI uOuuS
They Offset what they term Inflated
. currency with inflated bonds
-, M = x, e suT n = ss.Is.;:.
preciatSe the b0ads; - tkatFthe N
tional bonds suffer xh6t ne national
pledged by the same total wealth o.
the nation. lfexpansion of currenc,
depreciates il, upon ike principle ex-
pansion of bonds depreciats them
Contraction of the currency adds nc
more value to the remainder, as long
as the amount contracted reappears in
an equal increase of bends. for the IN
\ tion4l& indebtedness Is not lessened
4 By the interest involved on the bonds
and diminish value rather. Change
of form is not lessening of obligation,
| and cannot be an increase Of value
Then follows this ironical thrust:
No finaneiers have ever yet discoy-
cred a way by which person or peo-
pie can borrow out of debt If the
advocates of contraction can show us
how to do this, | shall come to their
aid az the. easier method, by FAR, of
relieving the people of financial en-
l
| He ridieuled with just severity Mr..
Schurz' elaborate reference to Marco
| Polo story of the currency of China
and to the assignats of France as SIM
| liar to our present system, showing
that the issue of French assignats
reached the enormous volume of
SO, OO0, 600 600, saying:
"Assignats were mere assignments
e. i 4. 4. I I
be possessed till formally put up for
sale. Thus based and thus INSTRUCTED,
with no national security, and an issue
of 5000, 100000 francs, equal to
S., 0OO, 0O0, 600 of our money, can this
be a worthy or noticeable parallel to
our national bank issue, based upon
80 per cent. of bonds of the nation.
secured by the total wealth aud honor
of the country, and necessarily limited
at the utmost by the outstanding
bonds of the United States? There
are less of these bonds than we had of
different forms Of circulation in 1866
and still the supposititious issue of
the possible maximum of what we
once endured is made. the occasion Of
invoking the specter of 5000, Ctsl. 600
of French assignatsi Poor substitute,
indeed. for argument upon Il grave
national subject e} s.st
One after another he took up and
analysed with master hand the ysri-
Gus points made by Mr.. Sehurz, show
ing them to consist of cunnlnely de-
vised sophistries, "palmed off under
the attractive decoration OF n master
of rehtoric, without solidity, to meet
the distressful facts and logic Of
crippled condition of national finance
On Mr.. Sehurz mode of res ,mptien .
he drew this picture of ineyitab bic ~
suits:
The irredeematility of the currea-
cy is the bane of the system. in the
Judgment Of the Senator. What is
his remedy? Not redemption in coin.
for he admits the iinpossibility of re-
deeming $775 200, 900 of notes with but
SIC, 900, 900 of available coin in the
Treasury, and but 100000, 900 be-
sides in the whole country. To re-
deem, the two must in one way or the
other meet. The Senator would avail
himself Of the opportunity of the pres
ent prostration of business by further
impoverishment and misery, in order
to reach the solution of our Difficult
ties through specie, resumption. He
would break down more of the enter
prlses. PROSTATE more of our business
men, throw more of the people out of
employment, and carry desoIationand
starvation into more Of the households
OF the land. that the finances of the
nation may be brought to a specie
standard" ef1.s,~
Commenting on Mr. Schurz' Ger
man friead's letter asking advice as
to the loan of money In the United
States, he;concluded as follows: -
q Il tell the Senator that the tribute
We are now paying for foreign faith
costs this nation over one hundred
millions of money annually, and the !
quicker we supply the people with adj
equate means to develop and husband
their own resources, the greater will
be our wealth and our credit and our
independence. Europe wants us to
check our enterprises and cripple our
resources by forced resumption, for
she is envious of our growth and leal-
Gus four power. To make the New
World tributary to the Old is the gist
of the financial theories of the books.
To make the New Independent of the
Old World is the financial problem of
American aim.
The honorable Senator from Mis-
souri,, holding seat in the Senate of
the United States, denounces the mon
ey which the people have issued as a
disgrace, and which the people cherish
and value as no currency was ever
valued before, and assumes FROM a
European standpoint to shape finan-
eial policy for the people who have so
highly honored him. Not satisfied to
deride and undcrvalue, In terms, the
currency Of the nation, he elassifies it |
with the dilhmitable paper money of
China and the assienats of France, ali |
without substantial security, while |
that OF the United States is SO valu-
able that the notes of any suspended |
bank are worth = premium of five per
cent. for reissue under new organiza-
tieE--the demand for banking curren-
cy. to meet the unsupplied business
wants causing this enhanced value
On the theory of reaching specie !,
payments through contraction. Mr.. Il.
said: 80 J. f,ez {7z9 va7sh y=a +,
What has been our experience un-
der the policy oil direct contraction? |
This policy urged by the then Secre-
tary, of the, Treasury, known as the |
McCulloch policy, was embodied in
the, act of April II. 1866. directing
that not more than S10.N0OOO in
greenbacks should be retired within |
the six months following the act, and |
that thereafter not more than 81 Co.,
900 IN any one meath should be retIr- |
ed. Gold at the date of this act stood |
at 12S; the next month of May 1T had |
advanced to an average for the month, |
of 121E and rconfinuade IA oAvan.o