The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-24

how 1t can be done. To maintain specie payments
highest estimate Of the amount now IN the coun.
try does not exceed $l50.000,000. No one has
shown how the other s25oOO0. 900 can be obtained.
New York and other Diner financial centres is
only evidence that the body OF enterprise
the patient alone; ne will get well hlmselfn
Another says, "Bleed and reduce the circulation"
Another says stimulate and give him TONES;
niuse warm, fresh blood, and get him on his leet.o
They have been in consideration four months and
agreed upon nothing. The principal obstruction
lists have been the Sangrados OF finance, VINO be-
leve only In depletion and salyation, and that
the patient must be worse before he can be better
FOUR HUNDRED MILLION DOLLARS THE PROPER
STANDARD
There is much complaint against the Secretary
for issuing 900 or the $44 600 900 reserve.
gate OF $500 90, 900. An increase OF currency TO
meet the demands OF increasing business Is not In
initiating population. II the currency was not too
large in 1870 1t must be too small now. He read
from the Presidents Message to show the cur
rency mad been directly contracted $63000,O00
since 1870 and other causes had the erect OF con-
tractlon. When business has outgrown the cur
reBcy the eject is the same as contraction, Hcar-
ried on with volume OF currency relatively d.
minishing then prices must fall to bring business
within the capacity OF the currency. The policy OF
MASTERLY INACTIVITY
OF Mr.. boutwell, Is contraction in another direc-
tion, slowly but inevitably. like the story OF the
which, by his continued growth, produced pres.
sure, agony and death. Currency Is the instru-
ment OF business and should increase with 1T. The
people were not made for the currency, but cur
rency for the people. He asked no other increase
than free banking will give. That will be governed
by the law OF supply and demand. When the
United states took possession OF the whole field Of
banking there was plain obligation to adjust the
system to the wants Of every part OF the country
rency the system was an experiment. Now 1t is
an established success. BY the apportionment the
VIOLATION oE LAW
celved $4,000 200 more than their apportonment.
IL would require 100000 600 to equalize the dis
tributlon on the basis OF the act of 1865 Consider
ing the growth Of the Northwest it would now re-
quire still $200O0,000 more. He was friena to the
national banking system and wished to relieve II OF
this blemish and its monopoly features, which
render 1t unpopular and will make it 0dious. In
this debate indation had been confused with de-
probation. To initiate the currency is to increase
Seyona shs ds%anas o %srs
the imitation s arbitrary, as IN Germany,
Where Il IS e
ness it produces only healthy effects. AS well talk
OF lnnatIng with cotton mills because their num-
Der is not limited as OF Initiating the currency by
Tree banking
GOLD INSECURE.
Great improvements have been made in paper
money, and our currency Is as much superior to
that Of John Law or the Michigan wild cat banks
as gold coin Is to the iron money OF Sparta. From
our currency are drawn. The invention OF bank
Ing, with bills secured by ponds Of unquestioned
papsn oney ssee o
Improvement in eighty years as the steam engine.
When our currency becomes convertible, is made
OF the world, scarcity Of gold In Europe, short
crop at home or large crop abroad would make a
transfer OF gold necessary and would disturb our
which other nations have larger supply. 1t
places our home industry on foundation they
may Withdraw. These considerations admOnish
us not to attempt resumption until the country is
fully. prepared The greenbacks are the most
solved the financial question OF the war. 1t never
occurred to the people that they were forced
loan. They took them without force and would
part with them with reluctance, and three iourths
OF them would be glad to see them substituted
for national bank notes. To bring them to par in
Twelve months would bring profit OF ten per cent
would profit merchants having them in stock.
Hence there is a class for speedy resumption.
THE GOLD IN TIL COUNTRY.
When we are In condition for specie pay
ments Is practical question. The Director Of
s aos in h sse tas are or
$so,ooo.0oo are in the coin treasury, belonging
to the government t, or deposited by private
mines produce only $40, OOO,O 900 annually The ex-
port OF coin and bullion for ten years has been
ss2 600 600 annually. Our five per cent bonds were
not be sold for gold. To bring back the withdrawal
Of $lsse9a,o 600 in gold from England would pro
duce panic. Even the $15, 100000 Of the Geneva
award had to be taken in our bonds held there.
They would not suffer gold 10 go away. With
and retired, or. II again put in circulation, the
government must be continually prepared to re-
deem them. So too. OF the banks Then the
Gold Room will be abolished, speculation in gold
having ceased, and those wanting to send gold
abroad VIII present greenbacks and notes for re-
demption, which Will make continual drain for
APANIC ABROAD
will lead to the suspension OF banks here imme-
diately. England has had panics about every ten
years since 1895. Whoever believes that because
England and Germany maintain specie payments
vast drence IN the of the
Greenbacks are deprecated because, by law, they
cannot be used to pay duties Or the interest and
principal OF the public debt. If we had no public
debt or II the interest was payable in currency,
duties could be collected in currency and there
would De no mn While import
rom Missouri Mr scnur mad argued that the
establishment OF national banks and 1t would be
better for them to let the East nave them all.
TINS was telling them in effect that they dla not
tional banks increase loanable funds, the twenty
nine banks IN Missouri outside OF st. Louis had a
capital OF 81, 1856, 900 and loans Of 81, 954 900.
LOCALIzATION OF THE CURRENCY.
Greenbacks have no local habitation, but go
wherever the currents Of trade take them. Cur.
rency issued by banks in loans is localized. like
amount returns periodically IN payment OF loans
to be there borrowed again. An increase OF cur
business will not depreciate it or produce
an unhealthy increase Of prices. The whole
business Oh the country Is upon level with the
currency and relative prices OF all commodities
adjusted to each other as perfectly If 1t was
coin instead Of paper. The conversion OF cur
rency prices Of exports into gold prices is as easy
as converting dollars into pounds sterling-from
the export you deduct premium. to the import YOU
add 1t.
MIR. scnuRz Qib) read from former speeches. Of
the Senator from Indiana (Mr. Morton), where
that gentleman expressed his views in favor OF
specie payments, and the impracticabilIty OF free
banking without specie payments. He tMr.
Schurz) said the financial discussion had already
attracted the attention OF the foreign press, and
If such propositions for expansion should become
law as had been made here, we would become the
laughing stock OF the whole world. He inquired
OF the Senator (Mr. M0rt0n) as to bis opinion Of
the legality Of the $44, DOC, 600 reserves
THE FORTY-F0UR MILLION DOLLAR ISSUE.
Mr.. MORTON said there had been some doubt
upon the subject, but, In his opinion, the secretary
had authority as the law stood to issue 1t.
Mr.. SEIZURE quoted from the speech or the sena.
tor from Indiana tMr. MOrton) and SAID that the
Senator some time. ago had charged him (Nr,
Schurz) with knowing but little oil the financial
wants Of this country, having been born in
foreign country. He Mr.. schurz) would ike to
know where the Senator was born, when, two or
three years ago, he expressed similar views. He
(Mr. Schurz) argued that the business centres OF
fhe country are full of money nj nrpsant and the