The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-13
Reputation the Av0wed Ultimate
Object Of the South.
THE PATE OF FREE BANKING
America's Losses Through Lack Of
Cheap Transportation.
Alarming Rivalry of Russia and India
in Production.


WASHINGTON April IL 1874.
1opuafatton the Ultimate Object of the
Observation-Disclosures OF "a Southern
Politician-Rcputiatio 10 Ltft Taxes
from the Shoulders Of the PoOr-The
South's Revenge.
In . conversation yesterday morning with an old
southern politician OF thirty odd years. experience
In public affairs, ne advanced some startling but
growing opinions touching the necessities Of the
South and West calling for more currency and the
advantages that will be gained to these sections
from an innaron and depreciation OF our paper
money. But, proceeding still further, this South
ern philosopher not only expressed the opinion
that inati0n at this late day would open the door
10 Reputation, but that Reputation, the time
honored method oil abolishing q dishono ed paper
currency, would be cheeriully accepted BY the
South, ana not very seriously resisted by the
West, and would he great blessing to the whole
country
The South ana West said he want more cur
rcncy, simply because not one OF the Southern
Western States has anything like the currency
facilities which il had before the war, and most OF
Them have less than half the amount Of their
ante beustan circulation. This, too, when their
business AFFAIRS call for more, and more they are
bound TO have. or course, In proportion as the
currency is inflated, it will be deprecated; but
suppose It is deprecated so far that So
in paper will be an equivalent for ony 81
In g0id do You not perceive that the Western and
Southern States, as the debtor States, Will gain
largely by this depreciation? Southern mer.
chant, we win say, owes debt to a New York i'm
porter Of $4,000 ae pays it in legal tender paper
money, and il $4,000 OF this paper are in value
equal to only $4,000 IN gold he saves upon the
gold standard $4,000 by the operation; and 80
through all the transactions between debtor and
creditor individuals, States or sections; and If
Through Congress these debtor States can enforce
this system OF settlement, is 1t not according to
Th s s9G I'd old Iple the %s smp a E howe,
And he shall keep who can
Heff- preservation and selfinterest are che first
laws OF nature. The interests OF the East are the
creditors interests me interests OF the West and
South are those OF the DEBTOR, and, to use
familiar Southern expression, "the longest pole
brings down the persimmoDs.n That is
MI there is OF IT, and II we have the
power over them in Congress our creditors
must take the consequences. Vice rersa, we
would be the sufferers. The balance OF power
happens to be on our side and we avail ourselves
Of its advantages. What else could you expect us
to dor ! grant you that innation at this late day
opens the door to reputation, through financial
collapse; but as a Southern man, whose interests
are those OF the South, what is reputation to me?
Nv idea is that, looking at the general welfare, re-
pudiation VIII be blessing, and great blessing,
70 the country. Was 1t not blessing to France.
in the matter OF those deprecated assignatS !.
Was 1t not blessing to the United States IN the
extinction OF that deprecated Continental cur
rency9 Was there any other way to get rid OF
this deprecated rubbish than the short and
decisive way OF reputation 1t operates,
70 be sure, like hurricane: but it puri.
Gao
the country like q fire on the praircs; but like
IRE Oh the prairies. 1T win not touch the living
roots OF the grass. Indeed the grass viii spring
mp again with renewed life from the visitation.
But what OF the disnonor OF a reputation OF the
national debt? you ask. Suppose the bondholder
gets in his interest payments sum total amount
ing to the principal OF his bond and six per cent
interest in legal Jenders, will that be reputation?
Are we coming to thatY Imitation will surely carry
to this idea or to the shorter catecnism or our
continental currency. But again ask you what Is
this to US Of the Souths You compelled us to re-
pudiate our Confederate debts OF all descriptions,
and do you suppose that 1t Is . matter OF pride or
pleasure to MS to be further compelled to tax our
Impoverished people to assist in the payment Of
your debt or to meet your taxationsg Don't you
know that
Time at last sets all things even.
Sponge out the national debt and, deducting
our bonds, win not the act be equal to an appro-
pration OF $780, 900 for the relief Of the South
ern States, in relieving US Of these heavy federal
taxatIons, internal and externali Does 1t not APP
pear strange that the producing States should be
the debtor States9 But 1t is, and SO 1t has been
In all ages. Your middlemen, the merchants ana
money changers, pocket the profit OF the producers
and keep them constantly in debt. The day will
come when these relations between producers and
middlemen will be better understood and regu.
lated than they are now; but the pro-
ducers already understand where the shoe
pinches. and the Changers VIII know
what to do in 1876. Imitation, you may
depend upon it, is the remedy for all their griev-
ances, for it strikes at the roots OF these heavy
taxes and these grinding railway and moneyed
monopohes and brings them all down to the CON-
mon level OF general settlement and q new be-
ginning, call it general collapse or universal
bankruptcy, or reputation, or what you please.
Can you imagine that this national debt VIII be
paid on IN gold within the next twenty years.
Can you believe that with its heavy burdens OF
taxes and bondholders it will be tolerated even ten
years longer? We are travelling too fast
for this. Do You not perceive that the
republican party is breaking up on this
financial question That the West and the South
Save entered upon what you call "a new depar
tufe." FROM the Young Oh tue CurTcnCy piils
In both houses of Congress is it not ap-
parent that the republican party is gone,
and that the democratic party is also sec
tionally cut to pieces on this vital matter OF nna
tion i believe that our National Centennial will
usher in another American Declaration OF Inde-
pendence that will astonish the world quite as i'm
prcssively as the great Declaration Of 1776 though
It will be upon the same broad platform OF equal
rights
such are the views Of more than one or score
OF the active politicians Of the SOUTH and that to
some extent they underhe the innation movement
In congress there is no reason to doubt.
sentiments OF Congressmen ON the Cur-
rency Bflls-Both the House and senate
Measures Likely to Pass-A Question OF
Mutuai Admfration-Danger OF Com
sinued suspense for the Country.
At no time while the financial matter has been
xkesa