, 1875-10-10
WENDELL PHILLIPS.
The Visionary Massachusetts A01tn"
tor Makes q Kambl1ng Reply 10.


Boston, Mass, Oct. s,-Weudell Phillips has
written reply to Carl schurz's letter OF the sth
inst. He says Mr. schuiz wastes BALI his letter
in charging United States paper-money men
with ignorance Of facts, which ue not only know
but have been the first to bring ont in the dis
cuesion. and have boen arguing on for two Or
three years. II he cannot answer, claim he
shall not misrepresent me. never proposed TO
abolish the discount power OF banks only to forbid
their sauing bills. They may continue to lend
all they can at ar per cent, which Will be
ern1nent gives only 3.65. said. Fewer checks
and more 8reenbncks." He Argues as If had
eald.' F" No checks aud all gseenbacks." Of
course, be easily knocks down the absurd image
be had set up. dreenbacks and interconvert-
ible bonda are more convenient for business
men scattered from the Atlantic to the Pacific
Fewer checks and more greenbacks neans
money mora within the reach Of every class
OF businessmen. EVERYBODY knovs that 1t
is not true, as Mr. schurz asserts, thst
mass OF businessmen. When bankruptcy opens
bank lsdgers to the public gaze, we see that i've
or si1 rich firms have borrowed all the bank
lent, Is in the case Of the Rhode lsland banks
to the wall and bankruptcy. Our system will
prevent this "More greenbacks" means =
healthier system Of business az to the effect OF
the currency On prices.
Mr. sshnTz and his school pesture everything
bsct bs s'd ssten @s assertion raaouss saa" % s
prices Is entitled to certain respect;
but I did not aaY, proyed,-l did not
assert. I demonatrated.-by 3 long extract from
that ablost living economist, Carey, thai our war
currency was not the cause which made gold
vary in price, Mc. Schurz does not and cannot
attack these facts. He goes back one hundred
years, and INDUCES 10 jokes which | put leas
faith in than in Henry cAtey's facts. Hls refer
ence to Mill seems simple evasion. Il Bonamy
Price ever inquiries about my path because be-
leve in greenbacks secured BY Government
bonds, payable ii gold. will quiet Price by
quoting bus words. am not aware
Of any valid objection which can be
urged against this method OF guaranteeing
Schurz 1ecapts his assertion that no nation ever
anywhere used paper money without ruin. He
is forced to confess that England has f1ourished
under paper, which ia all claimed. said the
same Of France and this Mr.. SchurZ not only
allows but shows that France. having -four
ished under paper. is now preparing to resume
specie payment. Whenever cur foreign COM
merce, like that OF France, enables US to pay
neighbor $1,000, 100000 Of coin, and have as
much left We may also resume Until then,
French experience teaches us to wait
So far AZ my allusioa to Germany being lndi-
crpus, be cannot deny that Germany, choked
with coin. is yet actually in crisis, which up
sets his claim that specie basis always saves
bottom out OF his whole speech. He tells us
that specie guaranteed against panic, and over
trading aud imitation brought these on, and then
asserts tbxt in Germany the cause OF the col
lapse is the overwhelming Of the credit system,
over production, etc., Which is always excited by
an oTerabundance Of money. etc; The New
York Tribune john him in this. So it
soems that coin aud paper, If IN
oxcoes, arc all the Bame. Where, then,
is Schnrz's philosophy? Our greenback system
has uutried elements which seem to promise
more security against crises than We ever had.
France with all her 5000, 900, 900 Of paper does
not tremble to her centre as does Germany. be-
cause Rhe keeps tree on silver Is basis whila
Germany, With gold as her sole legal-tender,
binds herself slave to tue London market, and
our bankers are crazy to have Us put on similar
British charms and hare an ague-ht every time
London feels cold.
Mr. schurz calls our greenbacks ~ 'irredeem-
able" Once they we're redeemable in 500 bonds,
as good as gold, but greedy capital outwitted the
people ten years ago, and cut the currency loose.
We mean to make them again redeemablo in
3.65 bonds, payable finally ID gold.
Mr. Schurz WARNS the laborer not to trust us,
but ii the labor1ng men, instead OF depositing
in institutions like the Third Avenue Bank. OF
New York, recently suspended, had Kelley's
1855 bill" been in operation, Invested their
money in 3.65 bonds, they would always be sure
to get their capital aud interest.
Mfr. Phillips closes by saying that workiugnen
did not complain Of their wages during the aea-
son OF ample currency succeeding the War, and
that they and businessmen would cheerfuliy see
such times again, when all made money. NoW
the rich grow richer, and the rest starve-