Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-01-15
Proceedings in the Senate Yes
terdsy-Speech Of Carl Schurz
on Resumption of Spe-
Gle Payments.
boutwell, AnsWered-His Policy
as Secretary of the Treasu-
ry Questioned and De-
clared Dangerous.
Honest and Productive Labor the
True Source Of Wealth-We
Should Resume at Once
The Panic Due to Over
Speculation.
SENATE.

SENATE.
WASHINGTON, d. c., January H.
Various unfavorable reports were made
by the committee on claims on bills of
a private nature, and their further con-
sideration indefinitely postponed.
Senator Pratt presented the petition OF
the indianapolis woman's suffrage asso-
citation PROTESTING against the passage OF
the bill limiting suffrage in the Terrific
ries to males; referred.
The morning hour having expired the
senate proceeded to the consideration OF
the resolution from the finance commit
tee, and Senator Schurz addressed the
senate.
Senator Schurz said: The issue now
seemed to be between resumption and
initiation. He thought the doctrine OF
procrastination in redeeming legal-ten-
ders an alarming and dangerous one,
and was surprised to hear statement
of the senator from Massachusetts
(Boutwell), few days since, that the
credit of the country had not been i'm
paired. He (Schurz) thought the public
credit would be impaired when the gov
ernment adopted the doctrine of that
gentleman, that the government re-
deems its promises to pay only when it
pleases to do so. He (Schurz)
disapproved of the reissue of any
portion of the forty-four mill
| lion reserve, and went on to
give his views as to the causes of the re-
cent panic, and continued; 1--WE have
neither foreign war, nor domestic re-
bellion at our gates, to-day, nor any
other disaster upon US, to cause an In
| crease in our currency. This PROPOSE
| ton to invest the government with such
power meant that it should exercise the
bower at its discretion, and issue any
amount of unredeemable legal-teDder
money; or in the other words, it placed
all private fortunes in the country, at
the mercy of the federal government.
Do the senators think the American
people would ever invest any branch of
| the government with this great power.
None but despotic governments ever
claimed such power. 1t was virtually
debasing the coin of the realm, and he
hoped congress would consider well be-
fore it adopted any such measure. Ii
the currency should be expanded to ten
thousand millions, the people would
complain of an insufficiency. why?
| Because an excessive issue gener-
ally effected a rise in the prices
of the commodities of living, while
a return to specie payments decreased
the prices of those articles. An ire
deemable currency always diverted capi
tai from legitimate business enterprises;
hence the continued and Unsuitable de-
mand for more. The more currency is
expanded, the greater will this evil be-
come; he did not agree with his col
| league that a new national bank should
be started in the west, or that the issue
of these should be increased, as he did
not believe the money issued by them
would stay there and benefit that re-
gIon; he argued that the reliefsOught by
| imitation OF the currency would be a
mere illusion. Let it be supposed that
every individual in the country could
wake up in the morning and find ten
dollars in his pocket or safe in the place
of one the day before, what jnbilee
| there would be among the fools. Did
any sane man suppose the wealth OF
the country would be increased by it?
Not in the least. Would the wealth OF
the citizen be any greater? Net par
ticle; for, going to market next mOrn-
ing, he would have to pay ten
dollars for what Cne dollar would
have purchased the day previous. Every
consideration of good faith and sound
policy urges US to put an end to this in
iquitous system, In regard to the re-
turn to specie-payment, he desired to
enter his protest against the two plans
that are presented by the senator from
Michigan Mr.. Ferry, to first expand
the currency, and revive the prosperity
of the country. The second plan, pro-
posed by the senator from Massa-
chusetts (Mr. Boutwel), to do
nothing, but let things remain as
now. The return to specie
payment must be preceded by severe re-
trenchment in our public and private
expenditures, by prudence in our busi-
ness enterprises, and by a recognition OF
the truth that honest and productive Ia
!, Dor is the true source Of wealth. He
thought if the plan of the senator from
Michigan should prevail, it would be
goodbye retrenchment, goodbye econ
Omy, let initiation prevail. As to that
of the gentleman from Massachusetts
Senator Boutwel), he said it was a
do-nothing policy, and the country had
' already seen the evils of II. The geo.
tleman had adhered to that policy
faithfully while he was secretary of the
treasury, and his successor had followed
the same course. He (Schufz) thought
the country should understand these
teachings and profit by the lesson. The
lesson from Massachusetts was most
dangerous, because it bore the same
aspect Of plausibility, and would present
itself as feasible to large class of pee
pie who did not study deeply the
question of finance. 1t was not
proper for congress to stand
still, and let this case work it's own cure,
and we would present sorry spectacle
to the world, by hiding our heads in the
sand, and saying we are afraid to move,
lest we break something, when the
breakdown had already occurred. De
declared it to be his candid opinion, that
the present time is most opportuhe,
since the close of the war, to resume
\ specie payment. If this time be lost,
we would have to await another finan-
cial crisis, and overcome greater evils.
Many of the difficulties in the way OF
specie resumption had been surmounted
. by the crisis. Let it be under
stood that we are to return to
specie payments, and every sensible
man will take care not to run in debt
more than is absolutely necessary, when
he knows that that with which he is to
pay such debt will daily appreciate in
value. He argued that the west and
south had never been benefited by the
imitation, but those sections would be
greatly benefited by the resumption.
Another difficulty which presented
itself against specie resumption arose
ftom the sinking of prices which
would accompany such resumption;
that the difficulty is less than ever now,
the crisis having brought down prices,
! and for months past merchants have
bought carefully, and losses from shrink
age in prices would now be lighter than
ever could be expected. The resump-
ton policy was opposed by three classes.
First, honest men who had formed
an erroneous opinion; second, men who
think every move to increase cur
rency popular, and join in it,
and third, set of thoroughly
reckless gamblers and speculalors who
wanted initiation without end, that they
might settle up old scores and set out
again in full sail. The first class could
he convinced bya source of argument;
the second by a new breeze of public
! Ooinion, and the third to-day were
( ,rtunately in a crippled condition,
and would give less trouble
! than ever. In conclusion, he ar
gued that The government is,
, in law bound to redeem its promises as
, soon as possible; that crisis was not
J produced by any insufficiency Of cur
! jrency; that sudden scare might be
+ checked by an increase Of currency, but
. panic brought about BY over-specula-