The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-12
vsnishing Views OF Finance Legisls-
tt0n.

Opinions are divided as to the passage by
both houses of the Currency bilr reported by
the Committee of Conference. Should it pass
it can hardly fail to encounter veto; and it
is for the republican members to decide
whether their party can afford to go into the
approaching elections so heavily handicapped
as it would be by break with the President.
If they push the controversy, the party will be
cleft asunder by geographical line. The
question cannot be ignored by the twenty or
thirty republican State conventions that will
assemble between the close Of the session and
the middle of September These conventions
will either pass the customary resolutions in
dorsing the President or resolutions virtually
condemning him by approving the action of
the imitation members of Congress. In the
Eastern and the Pacific States the President
would be strongly indorsed in many Of the
Western States he would be condemned. Be-
tween these sections Of divided political
army the enemy, if keen enough, would insert
o wedge which, if we'll driven, would result in
hopeless and final split. The imitation MEM
bers need to feel an undoubting assurance Of
the support of their constituents to hazard so
fatal q consequence
It is better for the interests Of the repub-
lican party that Congress should treat the cur
rency as an adjourned question. In a ques-
ton between expansion on one side and con-
traction on the other the easiest compromise
is to leave the currency as it stands and await
further development of public opinion. No
T. c1>a 80
permanence, even if the President should
approve it. The public mind is too unsettled
for stable legislation. A new Congress is to
be elected this year, and until it is seen
whether its majority support or oppose the
views of the President there will be no trust
public opinion. The President is an agent or
servant of the people this Congress- elected
at the same time, is also an agent Of the
people. When agents SO widely differ it is
reasonable to forbear action and refer the SUBJ
ject to their common principal for new in
structions Let the people decide. Even if
the bill of the Conference Committee should
pass and be approved, the banks would
have no confidence to act under
it. In the unsettled state of public
opinion they could have no assurance
that it would not be repealed by the next Con-
gress The wisest of them would prefer to
wait and watch the elections this year before
taking any active steps under the new law.
If majority of pronounced anti-infationists
should be returned to the new Congress the
banks would expect an early repeal of any
law passed at this session and would regulate
their business accordingly. It is therefore for
the interest of the country as well as of the
republican party that this important question
be adjourned until the people shall have pro-
nounced their verdict in the elections of
this year.
We have no doubt that q majority of the
people will support the anti-infation policy of
the President. Be this as it may, the question
has been precipitated upon the country since
the present Congress was elected and the peo-
pie must be heard before it can be finally dis
posed Of Had it not been for the panic of
last autumn this Congress would not have
occupied itself with new legislation on the
currency. The outcry of an alarmed commu-
heads Of many Congressman. It is quite
| true that there was q great dearth of
money at that juncture. But it was because
business men with engagements to meet dis
trusted the banks and withdrew their deposits
to keep them in their own Safes This
created real and painful dearth Of money,
| for the reason that the usual system of de-
post and payment by checks was partially
arrested The dearth of currency then ex-
perienced was not imaginary, but real The
currency was short by the curtailment of
checks, in times of settled confidence its most
important part That difficulty is long past,
and we have Of present not only an abundance
but redundancy of money for the transac-
ton of legitimate business. Yet the imitation
members Of Congress are acting and reasoning
as if the system of payment by checks were
| permanently abolished because it was par
tally and temporarily suspended during the
panic. It is better that legislation on the
currency should be postponed until this
transient delusion is dispelled.
| The experience OF the coming autumn in
moving the crops will have rectfying effect
on Western public opinion. 1t will be found
that there is ample money in the country for
that purpose. AS there is no longer any dis
| trust Of the banks checks and inland bills of
exchange will perform their accustomed part
as substitute for money. We have all the
bsnk note currency we had previous to the
paric, and the greenbacks have been in
creased from three hundred and forty-four
million dollars to three hundred and
eighty-two million dollars. Let us wait
and see whether the expansion fever will
not be cured by the business of the coming
autumn. Besides the restoration Of bank
checks to their usual Office as substitute for
money the available currency will be in