The Portland daily press., 1875-10-12
Carl schurz Comments ON Wendell Phil
Isps' Finn nciai Theories.

NEW YORK. Oct. 11.-In an interview yes
terday at ST. Louis, Schurz replied as follows
to Wenoeli Phillips last letter:
The difficulty with Phillips is, he speaks
without thinking. Here he conn plains that
banks do not accommodate the whole mass of
business men with their favors, and that mon
ev does. He proposes his system of green
backs and interconvertible bonds. Now what
in the name OF common sense does he mean?
That the government under his system is to
discount the notes of business men who can
not get their notes discounted at the bank, TO
make time loans to them, and to buy and sell
them bills of exchange? Or does Philips
think it more greenbacks are issued, a busl-
ness man who at present does not get an de-
sired bank accommodation, will then only nave
to put tub out of doors in the evening and
rain of greenbacks will pour down to fill it be-
fore morning? You see the thing is too child :
ish to be discussed among serious men. 1t on
" shows that Phillips has not the slightest con-
ception of what the business OF a country real.
lyis.
His attempt to turn and twist what I said
about Germany and France, l will in human
kindness pass over. His assertion that France
has in five years been most prosperous with ir-
redeemable paper money. while she makes o
most resolute and energetic effort to get rid of
that i-redeemable paper money by contracting
it, will also cover with the mantle of charity.
1t seems family to dawn upon Phillips's
mind that initiation of an irredeemable paper
currency will also initiate prices. but he is not
at all sure of it, and doubt if he ever will be.
There are certain minds so crooked that
straight thing will not go through them.
Quite characteristic is the assertion that
France is prosperous and steady in her ecOnom-
zeal condition because. as ne says, she Keeps 3,
as sole legal tender, finds herself slave in
the London market.
There is really something wonderful in the
comprehensiveness of Mr.. Phillips's ignorance.
&c 1affa r
he mistook the suspension of the bank act of
1874 in England, for suspension of specie
payments. And now I would tell him that
from 1855 to 1870, there were coined in the
French mint, according to the statistics of the
London Economist. over 5000, ZOO, 900 of francs
in gold, and only 55O,0OO,OOO francs in silver,
that is, ten francs in gold to one in silver.
But according to Mr.. Phillips, it is silver that
kept France free, while it is gold that makes
Germany a slave. Perhaps Mr.. Phillips, in
the interest OF freedom, would suggest to the
American people return to the silver basis on
account of its stability while all other nations
enslave themselves by gold, gold being roto-
riously much much more stable than silver.
Nothing seems impossible with such reasoning.
But Mr.. Phillips turns out 20 be not abso.
lutely opposed to the resumption of specie pay
ments after all. He is willing to anchor under
certain circumstances, and what are those cir
cumstances? He says that whenever our for
eign commerce. like that of France, enables
q
coin and have as much left, we may also resume.
Until then French experience tells us to wait.
Thus he wants us to have two thousand mil
lions of coin before we resume, or at least one
thousand million after we have divided with a
neighbOr
o. course he does not know that the French,
with their boarding habits and deficient bank
facilities, need much more currency in proper
ton than our people, but in the meantime he
advocates policy which will tend, as the in
creasing of paper currency always does, to
drive out OF the country what coin there is still
in it, so that we shall get on his real basis,-
that is, the country. the sovereignty of the peo-
Pile, the wealth of our country, and not that
sham of paper.
Perhaps Phillips, as an economist, has his
use. He can serve as a warning example to
teach others that it is not safe to talk in public
about such things, before having some idea at
least, of the A, B, G, of the scieuce
The trouble is that many people having
thought specifically on the subject, have a
vague notion that if more currency is issued
some of it will somehow fad its way into their
pockets, and in a general way stimulate bust
ness. But when they attempt to express theil
ideas clearly, they make sorry muddle of it,
as Mr.. Phillips shows.
Some on the contrary are convinced that the
policy of expansion would under existing cir.
cumstances, be calculated only to chill what
little confidence still exists intensity the gen.
eral ling of insecurity, and make bad worse
Mr.. Schuz says he has other things to dc
and expects to be in New York in a few days.