The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-04
Ftaaaeis Propositions An Congress-A
Better Outlook.

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as the direct question of expansion or con-
traction b concerned. The West, the agri-
cu]tu al and railroad interest is on the side OF
expansion and no gold basis; New Eng
land the manufacturing interest Is IN
favor of contraction and immediate or speedy
resumption. 1t is q struggle between the
debtor and creditor classes. The former
desire to make anything that Will pass Tor
money abundant, and are Indifferent how much
it may be diluted IN value, because they desire
facilities for paying their debts The latter
wish to restrict the currency, so that its value
may be increased, and to place it as
quickly as possible upon coin basis,
because they would then realize so much the
more when their debts were paid. New Eng
land, we are told by one authority, would
gladly surrender all tariff protection, the
special legislation to which it owes its wealth,
if it should become necessary to do so in order
to prevent any increase in the volume of the
currency and to place the existing Treasury
notes in the way of speedy redemption. The
West, on the other hand, supplies the back
bone of the Washington lobby that is clamor-
ing for expansion and denouncing gold basis
as wicked device of foreign capitalists to get
us more completely in their clutches. Here
and there individuals may be found from
either side advocating the policy adverse to
the sentiments or interests of their section,
but they are only exceptions to the rule. Mr..
Thurman, for instance, has ambitious
political aspirations, and is, on that
fha fsnon cio1 hut
his friends at home are, nine-tenths OF them,
advocates Of imitation. Mr. Sherman is also
politician with future before him, and he
would gladly see some compromise which
would help the West to more currency with
out in reality increasing the volume of green
backs now adoat Of that character is the
bill reported by him yesterday from the
Finance Committee, with a recommendation
that it be made law. This measure is
amendatory of the act of July, 1870, in rela-
ton to the circulation of national bank notes,
and seeks to secure more equal distribution
of the currency among the States by the
withdrawal of twenty-five million dollars
from the States which are in excess of
their due proportion and its distribution in
which have less than their share. This
is, in effect, contracting in the great money
centres, like New York, and expanding in the
Western and Southern States, without increas-
ing the volume of currency. While the prop
osition possesses some apparent justice it is
like law endeavoring to force water to run up
hill for the currency will. after all, seek its
/ I
out Of its course.
After all, the wires which move the Con-
gressional puppets are held in the hands of
the lobby, and the real fight promises to be
between the interests of classes or sections
rather than between honest legislators
who differ in their views as to the policy de-
manded by the interests of the whole people.
This opinion is strengthened by the fact that
there appears to be design on the part Of
some of our Washington fnanciers to befog
the real issues involved in the questions of
currency and finance. No doubt the desire is
to confuse the public mind with the multi
plicity of conflicting theories and PROPOSE
tons, SO that in the end the people may tire
| of the subject and legislation to suit the in
terests of the national banks and the plans of
| the infationists may be suffered to slip
through Congress almost unnoticed; for the
probability now appears to favor a union be-
tween the banks and the infationists and
continuance of policy similar to that we
have heretofore pursued, only in an
aggravated form. The objects to be
attained in the interest of the ma
ton are, however simple enough. We
have heavy debt entailed upon us by war
which impoverished an important portion of
the country, and we desire to reduce the rate
of interest we now pay upon this debt to
tighten the burdens of the people who have
suffered severely from the war, and to leave
the principal of the debt to be paid by those
who will come after us to enjoy the immense
benefits we have secured for them by our sac
rifices in the war. We have an irredeemable
currency, growing out of the war, which is
issued by the government and made by law to
represent money but which has no value
except as we may hereafter pay it in coin as
we would pay any other debt We desire to
put this irredeemable paper as speedily as
possible on coin basis by fixing definite
time for its redemption. We desire also, for
the credit of the national government, to take
it out of the shinplaster business and
to place the issue of currency where it
belongs-in the hands Of the banking institu-
tons of the country. We have limited
number of national banks chartered with
special privileges under special law. We
desire to make banking free, so that capital
may engage in that business as unrestrictedly
as in any other; for there is no good reason
why banking should not be as open to compe-
tition as shipping, dry goods or any other
pursuit.
The landmarks to be kept in view by those
who are willing to legislate on the subject of
our currency without reference to special or
/ al Int L.. m