The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-09

is unequal to its proper punishment The
more numerous the criminal class grows the
more severely should it be dealt with.
A New Master In Finance.
Now that we are in an earnest discus
sion of the finances, not without hopes, also,
that out of the chaos and Encouragement
which Of late have marked our financial
administration We may have definite, intel
hgent policy, any new opinions on the subject
VIII DO welcome. Our aim should be not to
discuss this question with partisanship, but to
strive to attain . policy that will bring the
country to solvenoy and give the United
States her true financial position. Any con-
tribution to the debate, therefore, possesses
unusual value.
Mr.. Wendell Phillips is q man apt to have
his own mind on all subjects. Recently no
wrote Q letter about the finances. the substance
Of which is printed in Western journal. His
plan is to abolish the National Bank
circulation and issue greenbacks. These
greenbacks he would make receivable
tor customs. He would have the gon-
eral government lend greenbacks at
3.65 per cent per annum to any citizen
who would pledge national bonds or improved
land For bonds thus pledged the govern
msnt would lend the owner four-ffths Of their
value in greenbacks for the land one-half its
value, such value to be the average Of what
said land had been appraised at for taxation
during the last ten years. These greenbacks
should also be legal tender for all debts due
the government as well IS for oil due private
parties He would provide that any such
borrower who found that he did not have fur
Their use for the greenbacks could restore them
and have his bonds and lands released Any
one desiring to surrender greenbacks could
do SO, receiving in their stead national
bond bearing 3.65 per cent interest payable
in greenbacks, the principal payable in gold
twenty or thirty years later.
In advocacy Of this proposition Mr.. Phillips
thinks that one billion two hundred million dol
lars would not be more than the country requires
as the volume Of circulation. He cites France
as an example Of what finished country needs
in the way of money, and reasons from this
that America should have twice as much. be-
cause we are in - process of development"
and require money. BE CLOCKS forward to q
currency double our present" and "scorns the
delusion Of ever returning to specie basis !"
81 repudiate," he adds, s'all resemblances to
sassignats' and Laws schemes in this, that the
government shall act as bankers, and, taking
first ample individual security in land, bonds
or gold, loan its credit l consider those who
insist on banking on gold alone as twins TO
those who should propose laws to forbid any
locomotion except by OK carts. Enlarged
population and quadrupled business demand
increased banking facilities based upon
broader foundations than gold. New times
demand new measures"
Any proposition from Mr.. Phillips Is certain
to be honest and very apt to be original Our
objection to this plan is radical one It is
impossible to build q house on air, and just as
impossible to build credit or currency on
promises to pay. Apromise to pay has two
fold value-the value attributed to it by the
person who makes the promise and the value
entertained by the person who receives it
If Spanish bonds for instance, could be pur-
chased at Spanish estimate Of their value
they would be the highest on the stock list.
They certainly represent Castilian promises to
pay-made in good faith, and which would be
redeemed if any one would find the money.
Custom and law and necessity have made gold
the basis of currency, and we cannot change
it without making war upon civilization. We
may rank the faith OF the government as good
as gold, and issue currency representing it !;
but what will be the RESULT Foreign money
markets will have their own views,
and we shall find ourselves in London
and Frankfort ranking with Turkey
and Brazil. We issue bonds that
represent promises to pay, and then issue cur
rency representing the bonds, and ask the
world to take the currency at par. This is
like building nothing on nothing and calling
the foundation granite. We enter into ma
tional pawnbroking business, lending money
on land at the tax collectors appraised value
There would be one advantage in this that
owners of real estate, who return it's value
at q low figure to avoid taxation, would in
crease the appraisement to borrow money. and
we should have large revenue from taxation
on property. But we see no other advantage.
The plan would be cumbersome and impracti-
cable, and would open the road to system
of corruption and favoritism unlike anything
we have ever known.
Mr.. Phillips makes the surprising mistake
that two and two make more than four.
The many financial plans that have been sub
mitted to Congress have been based upon the
theory that the constitution somehow gives
/ Congress the right to enact that it should be