The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-23

the country The result would be failure Currency
viii dow where it belongs, and therefore naturally
o sne @ " acting ss% upon ns Ssass
almost UNI 3al, pay interest on deposits, and the
oess1 81 saws N Ss
often being held there subject to can. The a &C.
means led to an innatiOn OF the currency in that
city, and to speculations, followed by disaster
and rum An inaa'i o. q the currency o.
70 any increase in the volume e II the
hand, was opposed to any contraction OF the cur
rency. He did not think deprecated currency,
10 itself, great evil By that he meant 70 say thai
II the currency be deprecated, and the prices and
products Of labor become accommodated to that
state OF things there are no substantial evils AFFECT
authority OF the treasury Department to use the
fOrtyfour million legal tender reserve ought never
TO have been questioned, but he trusted that this
debate would settle the legal right OF the Treasury
to use that reserve. The department had acted
the idea that II had the right to use 1t when
ways that 1t was not to be added to the volume of
the currency when issued, but to be restored to
the Treasury as soon ss practicable.
gentleman maintains that the Treasury had the
legal right to issue the $4,000 Does he also
maintain that the department has the legal right
withdraw 1t againi
MT. BoUTwELL,-Keeping IN view the legislation
OF Congress- 1t was the duty Of the Secretary OF the
Treasury to DO 80. Deducng from the policy of
Congress his conclusion would be that $3.50 900 600
was the amount Of currency TO be kept in circula-
OF the Secretary TO reduce the volume of currency
to $3.50, GOO. 600. He argued that the issue
Of the $4,000 600, IN his judgment. was consistent
with the public interest In the highest Degree and
the secretary Of the Treasury could not st Silent
and inactive while ruin and disaster to the coun-
try were apparent But to permanently increase
the currency ne was opposed In q time of peace
like this, when the country is prosperous, its re-
sources great. It's future bright, what excuse
nOrlih rffor kt,o
try for adding to the volume OF the currency and
changing the relation Of debtor and creditOr9 He
been violated me act or MsrcS isea n de-.
clared that the holders of United States
notes might, between March and the following
july convert their notes into United Sua tee bonds
and they had that time to make such conversion.
He favored return to specie payments with such
limitations set forth In the annual report OF the
Secretary OF the Treasury Of 1872. The Statement
had been made here that during the PAST four
years no progress had been made toward return
to specie payment This he denied In 1869 the
average price OF gold was 321 per cent, in 1870 it
less than 49, in 1871 less than r. In 1872 1t was
IL 4.l0 and in 1873 II was Is 84IOO Did not these
facts by themselves considered, demonstrate that
in those Jour years we had made progress toward
specie payment
Mr.. MORTON lnauired If the gentleman did not
attribute the decrease In the price OF gold in 1869
to the act Of Congress passed then to strengthen
Mr.. BOUTWELL, replied that ne attributed much of
the cause OF the decrease TO that act. When the
act was passed the credit OF the United states m
",
Turkey and the dishOnOred countries Of Europe
From the passage of that act in 1859 the credit OF
tine All th sseady sed RAPIDLY
was equal to that OF any other nation,
without excsptlon;, but the depreciation IN
to the passage of that act. 1t was due asO to the
increase in the business OF the country He looked
our PAPER Currency ana COIN and uStI that m .,
arrived, any policy looking to a resumption of
specie payment would be Taught with the greatest
danger.
Mr.. GORDON (dem.) OF Georgia, INQUIRED II the
gentleman believed that the general prosperity of
the country, and particularly that OF the produc-
ing classes, Increased as the currency approached
gold vaiueY
Mr.. BOUTWELL, replied that the government had
never enjoyed such prosperity as during the past
four years. II there had been lack OF prosperity
anywhere 1t was caused BY circumstances inde-
pendent Of the policy Of the government. He
called the gentleman from Georgia to witness that
the cities OF the south were more prosperous now
than before the war and had increased in wealth
MI. GoRDoN--That Ia true; but my question was,
Have the producing classes grown weather. f''
Mr.. BourwsLL-When you have demonstrated
that a city ID prosperous you have demonstrated
the fact that such city is situated in prosperous
labor-producing community. There are IN the
black, who have entered upon lands they have
either leased or bought, and are producing larger
crops than before the war. me aggregate products
than before the war.
Mr.. GORDON said the increased production Of cot
been furnished ior it. but was due to the TACT that
new fields new acres were opened for cultivation,
and higher nn 10 given to grass
Mr. BOUTw ELL said the general fact remained
and Indicated that the south was as prosperous
vious CONDITION OF its history. The Senator
from Georgia demanded cheap money. II he
meant by that demand to secure additional
circulati0n OF paper money for the purpose of
cheapening it, he (Mr. BOutwelD would advise the
senator (Mr. GordOn) to recall his own experience
money, and went to market with basket iull or
money to purchase basket OF provisions.
Mr.. GORDON said that he did not mean cheap
money, as the gentleman understood him, put he
meant cheap interest.
Mr.. BOUTWELL, said that. with innation, the in
Money ne grew cheap in New YORK in july, when busi
ness men were away In Europe or at the watering
places taking their recreation, but, as the iall
came on, the demand increased and interest adj
vanced. After the crops had been moved
1t became plentiful again, and interest became
year. He argued that 1t was possible to have
deprecated currency and yet the paper in clrcua-
ton could be nOminally redeemable In coin. He
currency Of the country would be vastly increased,
and when the time came to resume specie pay
He was also opposed to the Proposition Of NE col.
league, MI. Sumner, for convertible bonds and ex-
pressed the opinion that 1t would result In con-
Of the business interests Of the country II the cur
rency was to be contracted as o means to resume
specie payment, let u De zone openly, 80 that
every business man could see what was going to
be- and shape his business accordingly. Was Il to
be presumed for moment that we could 60 into
the markets Of the world and purchase coin with
which to redeem the legal tender nOtes9 The
whole Bank OF England and the money markets Of
Europe combined would be arrayed against US.
Great fortunes accumulated during the war by
in this country, put 1t in the power OF
. few men to organize themselves to prey upon
the government. 1t was possible for men in New
York to mass for o the he purpose Of speculation
and orc control tSe Or even
colleague (Mr. Sumner) should be adopted those
men would work rum to the Treasury by putting
their money into those convertible bonds when
money was plentiful, hold their bonds until a
scarcity OF money occurred when they would have
them redeemed, and precipitate an additional
volume OF currency on the country, infaming
prices and doing great damage. The plan Of re.
turning TO specie payments q year from now also
was very Objectionable, as he had shown the gov
eminent could not get gold to do It; ana,
il the time Tor q return SHOULD be
fixed at year from now, the governments
could not stand the shock. After redeeming