The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1875-12-04
An OPEN LETTER
FROM
Mr.. Piiny Freeman to the Secretary
of the Treasury

I the treasury now CITIZEN OF tOrclgt
monarchy, through 'open letters i.
engaged IN lecturing the citizens Of the
United States on the subject of the Ma
tional Finances, and attempting u per
suade them that the policy which he lnau.
eurated and put in practice, to such an
extent as to bankrupt and impoverish a
large part of our business men, and rem
der our Government largely tributary to
the moneyed powers Of Europe. is the
best policy for them to continue to pursue.
OF the disastrous results Of his policy wit
ness single illustration, taken from the
Mercantile Register Of Messrs Dun. Barlow
! a Co.: The number Of merchants whu be-
came bankrupt in 1868 (about year before
he became Secretary was 485, and for
nine months Of the present year tho mum
Der has swollen to !, ,334 while the habiI-
tiles, which III 1858 were six million ei Lht
hundred thousand dollars (S6, 500, 0OO),
during nine months Of this year has swol-
len to one hundred and thirty-one mil
hon dollars (sI3l, 900, OO0); which for the
whole year, would make ABOUT tiCentg toif
times the amount Of 1868, which is an III
crease Of his victims OF eleven hundred per
cent, and he is not satisfied with this, but
would sink us To a still lower deep.
| take the liberty of following his ex-
ample, To the extent Of respectfully sub
nlitting to you, sir, all "open letter on
the same subject.
AS financial representative of our gov
ernment, to whom is entrusted the keys Of
the national exchequer, and On whom
more OF less depends the destnies Of our
people, for veal or for woe, | would re-
spectfully invite your examination and
consideration Of what is termed the IN
convertible system: which, If you please,
We will call the American system " tiuauce
In order to arrive At a Just decision, 1
would respectfully request that all precOn-
ceived theOries-dS tdr as practicable be
Land aside, and the subject examined on its
merits
1t is claimed that the government paper
money, made full legal tender for all
monetary purposes, convertible into inter
est bearing bonds at the option Of the
holder, saId bonds being recoverable into
said legal tender money, with accrued IN
terest at the same option, would be per
feet solution Of the financial question.
That when established, gold and said legal
tender money would be IN a par. and
thenceforth that both initiation and con
traction would be practically lmposslbili-
ties.
Ii il also claimed that the above PROPOSE
tiOns have been demonstrated and actually
put IN practice.
LIST, That gold and legal tender paper
would be on a par, was demonstrated by
the fact that what were termed Demand
Notes of which sixty millions were IS
sued, and receivable for duties on imports
Continued on a par with gold until all
we're absorbed at the Custom House. That
fact, it Is claimed, proves conclusively
that if Greenbacks had been received for
duties on imports, being thus made full
legal tender, gold could never have risen
above par
I'd, That a free issue Ot paper money can
not produce initiation When convertible into
bonds bearing interest, was demonstrated
| by the fact that, when greenbacks we're
| first issued and convertible at the option
OF the holder into 5.20 bonds, bearing
per cent interest, during the sixteen
months the convertible law eXlste there
was neither imitation nor expansion, but y
steady uniformity in prices and values
never before klOwn. THIS, II Is claimed,
was demonstration and proof positive
that when paper money IS convertible mt
bonds, initiation is impossible For, should
said paper money be issued ia excess u
the wants Of business, such excess would
reduce the ruling rates VI interest To the
Government standard, when all excess
would retnrn to the treasury tor its bonds
and restore the equilibrium.
3rd. That whIle bonds or certificates .
debt, bearing interest, are issued, convert
ible into legal tender paper, panlcs o
financial revulsiuns cannot he produced
was demonstrated during the time th'
Treasury received money on deposit un
der the temporary loan acts, and issued
therefore, bonds OF certificates virtually
payable, with accrued interest, on demand
For during that time no panic did occur
although at one time the Bank Of Eng Lame
drew from Wall street 80 millions Of gol,
IN as many days, causing great excitemen
and rise of Isterest when the conversion
Of few millions I'D certificates relieved tn
money market, and again restored the equI
librium. AZ another time, and before h'
was specifically authorized by law. MIR
McCulloch withdrew FIFTY millions o
greenbacks from New York, which cause,
a sudden rise IN the rate of interest whel
again the conversion of a few millions INT
certificates relieved the market. Thes
are claimed as demonstration and posltIv
proof that when the American Systel
Of Finance" is adopted. panics and revul
sions can neither exist nor be produced.
Should combinations OF rings be forme
and raise the rate OF interest above th
Government standard, its bonds would b
be Immediately returned and conyerte
into Government currency IN sufhclen
amounts to reduce the interest to Govern
ment standard, and again restore the equl
librlum. and thus establish a self-actIn
regulator that no combination Of cIrcum
stances could ever seriously disturb. LAX
the bed of the ocean, 1t will remain vi
moved; although storms may disturb II
surface, its bed, never
Ii is claimed that the lnterconvertlbl
(American) system of Finance will B
found a. impregnable an the rock Of agei
, and that it embraces a great, an eterni
truth
4th, 1t is claimed that when Cover
ment issues are received for duties on in
ports and made full legal tender and II
) terconvertible with bonds bearing interes
gold will be on par with said issue-pr'
vided the same act requires the SecretAr
Of the Treasury to dispose Of bOnds in Il
rope-nOt in America-to provide coin