Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1874-02-20
THE BURLINGTON
x.,..,, r,,,,,,. ., The Finances.
A LETTER WRITTEN TO GENERAL B. +. BuILhh'
Wendell Phillips prints the following
letter in the Evening Post


A LETTER WRITTEN TO GENERAL B. T. BuIl.A'
Wendell Phillips prints the following
letter in the Epening Post:
To Hon. B. F. Butler: i
S;r-Allov me. among the multitude OF
councillors TO propose q plan OF hnance.
4 debtor nation is always the slave Oh us
creditor Our slavery to England Is seen IN
the threat of the Bank ofEngland to swamp
MI Boutwell's syndicate If he did not con-
form 10 the wishes Of the bank. In conse-
onence of the dependence of debtor ma,
1ion. it should separate entirely Its natiohai
currency from its international currency, III
order To save its home system from foreign
interference. propose, therefore; one sys-
fem of currency for home use and ano,ner
entirely distinct for use between ourselves
and foreign nations. For home currency l
propose as follows; First, take from .ns
national banks all right to issue DIS, anu
oblige them to return what currency my
have within reasonable time. Accept inc
present greenbacks in payment OF al, ueDss
due the government, and destroy Them H.
last as paid IN.
Second-Let the United States lend green
hacks at 3-65 per cent. per annum to any
one who will pledge national bonds or I'M
nroved land. For bonds thus pledged the
owner is to have in greenbacks four-tiths OF
their mar value; for the land one-half oil It's
value. such value to be the average OF wia'
said land has been appraised at for taxation
during the last ten years such greenoacKs
| 70 he LEGAL tenders for all debts due the
Government as well as for those due private
persons. Let them state, each on Its lace,
the manner in which they are to be redeem
ed. which | specify in the next paragraph.
Third-Any such borrower who at any
time finds that he does not want MS green
backs can, of course, return them anu iia'o
| his bonds or land released to hifn' any
other holder of greenbacks can SURRENDER
them and have in their stead national ponu
bearing 3-G5 per cent, interest; PaSapi1 III
grCenbacks. the principal payablein gold IN
twenty or thirty wears from date. The re-
snIts of such a system would be, first, to re-
deem and destroy the present greenbacks
and thus silence the complaint that govern
ment does not keep faith in the matter OF
their REDEMPTION, and also to reduce the IN
terest on our national debt to about iour
ner cert. Suppose the nation thus issues
| fends) 81 POO, 900 900 of currency, then 1t
will receive over $40, 900 900 in interest.
The annual interest on our debt is now, In
round numbers, SIP 100000 Subtract
$40 900 900 from this audit leaves us to pay
$50 900 200 annually, which IS less than 4
ner cent. on the whole debt. Twelve nun
dred millions of currency would be no ex-
trayarant estimate. We have TWO OF three
times this amount of what is really curren-
cy. Now since bills ofexchange and cheeks
are really currency in their nature anu ei'
fccts as much as greenbacks are, under my
Man we should have fewer checks and bill,
of exchange and more greenbacks. But II
we had these twelve hundred millions oil
preenbacks and besides the same amount OF
hills and checks as now, it would be no Ill
and no wonder France, an old, rich nation
thoroughly developed, has now twice th'
amount of national currency per head tha'
we have. A new and undeyeloped nation
like ourselves ought TO have twice INT
amount per head that France has. iiehc'
If our rreenbacks were trebled 1t would Dc
well Second. the second result would bt
that neither the Bank of England. nor any
other ring there or here, could disturb oul
currency by corner in gold or greenbacks
we should be beyond such interierenceS
Third. in time capitalists will invest IN suci
bonds, since in conformity to their preSen
theories these bonds will at last be PAID II
gold. Fourth. We develope our new couh
try by having money abundant at 500 pc
cent. interest, and can thus compete witt
|
cannot we now compete with Scotland II
sbip-building or with the Welsh in maxim!
, nails? Not because of our rate OF wages
that * not the reason. Thomas Brassey
the largest employer of labor perhaps Il
, this country, proves (see his lite) that 1t l
the cheaper to build railways in ASIA AM
Hungary by carrying there English work
men at fifty cents n day than by employln!
the natives on the spot at ten cents Jay
1t is not the rate of wages that cripples on
manufactures and our Western develop
, ment. 1t is because our dead capital lands
buildings and machinery, is worth here ten
twelve and fourteen per cent. We work a
a constant disadvantage of from to lOpe
cent. year by year. Give our eastern manu-
facturers and our western landholders mon
ey at per cent, and We can then DEFY tn
competition of the world. Keep your rev
, enue tariff to pay the debt, abolish ITS pro
tectiye element at once. L waive entirety
E so far as our home currency Is concerned
all abortive attempts TO keep gold basis
, We have never really had one. We hay
only pretended 10 have one. One dolla
, gold to five or seven in paper is no gol
: basis. We have pretended it was, and as
f consequence it has happened that the mo
/ ment confidence ceased the banks Away
suspended specie payments. Just the mo
. ment we needed specie we could not get
of the banks 1t Is of no use to try to kee
/ up this sham any longer, as from our inter
national currency We must remember ina
our coin is worth nothing abroad as com
Ii is received as only 50 much merchandise
according to its purity and price IN tn
| market, like wheat still, as gold Is con
! yenient medium of exchange on many &C
, counts, and at present Is so received by IN
! world. our government will help the mer
, chants to use it. In order to 10 TINS 10
government will certify by its stamp tn
weight and purity of gold bars sent to J.,
! mint, and the government will keep gol
. deposited with it by the merchants, and CIV
. certificates of its amour. and value sue
= | certificates may be used here and abroad
thus enabling the merchant TO save the COS
= | and risk of carrying gold to and fro and tn
: expense of insurance. In this way We inl
| | nish the merchants with certificates, whlc
will soon be of the same use and value a
:, gold itsslf, whether in the form of bars o
!. coin If any one doubts whether the GOV
eminent is honest enough to be trusted wit
. such power, answer that it is as honest n
! the national banks, who now WELD thes
a | powers. We must trust such powers sOm'
: where We can detect and punish and pre-
vent misdoing more quickly in the govern
- ment than we can in many corporation
. shielded by privacy.
Yours, respectfully,
! WENDELL PHILLIPS.
Feb :, 1874.
C A GEN FROM WnrTrIER-To appreciat