The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-09-18
EVILS OF PAPER MONEY
A Letter From Ex-Seorstary Mccul-
-- loch.
European Opinion Of Inaaticn-ovsr- Produe-
rion one Cause Of Financial Depression
Tho Experience Of the United
States with an Irredeema-
BILE Currency, s.

The Experience Of the United
States with an Irredeema-
Bile Currency.
TO the Editor Of The N, Y. Tribune.
Sra: A few days ago asked gentle
man of large experience and careful obser-
vation-a friend of the United States when
we had few friends among the leading men
Of EngIand-"When shall we be able to
borrow at four per cent. for the purpose
Of retiring our six per cent government
bonds~1C -r.ls-I sn. .DlN
"When," replied he, you get back to
specie payments. Everything hinges up
on that l agree with you that your gov
eminent ought to be equal, if not superior,
TO that Of any government in the world,
and it will be when you come to your
senses upon the question of the currency.
Should the inhationists succeed in their
efforts to increase the circulation of ire
deemable legal tender notes, you will not
either at home or in Europe, but you will
find even the holders of your ives flor
which there is now an active demand at
premium) dispoosd to get rid of them as
speedily as possible. IF the inhationists
get the control of your legislation and re-
new the old and foolish experiment of
making money plentiful by the use of the
printing press, the credit Of your great
country will sink to the level Of that OF
Egypt or Turkey"
TnMIDITY OF HARD-MoNEY MEN.
This opinion, which have given in very
nearly the language of the gentleman who
expressed it, is the prevailing sentiment on
this side Of the Atlantic. There is not an
intelligent man in all Europe who has CIV
en- attention to the subject who does not
wonder at the infatuation, if it be
not something more than infatuation,
of the advocates of an ire
deemable currency in the United States,
who does not condemn the irresolution OF
most of those who claim to be the friends
of sound currency. There is in fact more
danger to be apprehended from the timid-
ity of many who are ranked on the side OF
specie, than from the undisguised action
Of those who favor further issues of goy-
eminent notes. The latter are in earnest,
and their aim is spparent-the former are
deceiving themselves with delusive expec-
tations. Every rejecting and intelligent
man must perceive that further issue Of
irredeemable notes means further depre-
citation of those now in circulation, an in
crease of financial trouble, and ultimate re-
pudiation; but the fatal results of the. "let
alone" policy are not so apparent. An
immense majority of our leading politicians
of all parties are sound in theory. but they
seem to lack nerve. The resolutions which
they adopt in their conventions lack the
metallic ring of real earnestness. They
favor q return to specie payments, but they
do not say how this is to be effected
They deprecate continuance of depre-
ciated currency, but they hesitate to put
their hands upon the prime cause of mis-
chief, the legal-tender notes. They seen
to be afraid Of the bugbear of contraction
as if a return to the true measure Of value
would affect values. They seem blind Il
the self.evident proposition that there vii
be no real contraction if the purchasing
power of the currency is increased proper
tionately with a reduction of its volume
IF the specie standard is to be restored
something more is required than the pass
age of milk and water resolutions and act
of congress fixing a day on which resump
ton shall take place. Unless some decide,
and practicable measures are put into &C
tual operation for the restoration of tn
specie standard, we shall 60 on as we hav
been going for some years past, durin
which every day has made return to tn
paths Of safety and real prosperity NOR
difficult, Let US look for a moment at th
causes of the existing embarrassments an
prostration in the United States, and the
consider some of the remedies which hav
been suggested.
CAUSES OF THE DEPRESSION.
First, the causes. That there is gres
stagnation in all or nearly all branches
enterprise and industry in the Unite
States, that our manufactures are sad
depressed, that very few of our railroad
are yielding fair returns on their actui
cost, while large part of them are unab
to pay the interest on their bonds; thu
our shipping interests have so decline
that the United States, which quarter
q century ago seemed in fair way
become the first of maritime powers,is no
not to be ranked even among second-cla:
nations in the foreign carrying trade; tn;
our counties, cities, and towns are so s.
riously in debt that taxpayers are lookin
to unlawful measures for relief, and thI
for some years past we, as people, hav
been so extravagant and wasteful that "
have become q byword throughout En-
rope, are facts that can neither be denie
nor disguised. Now, while this depressio
of our manufactures, this unproftablenes
Of our railroads, this decline of our me-
chant marine, this frightful accumulate
OF municipal Indebtedness, this extravs
gance and wastefulness cannot be attriI
uted exclusively to redundant currency
they can in great measure be traced {
1t. Other causes, it is true, have to som
extent assisted in producing the troubI
in which we are involved; but, if we ha
been on a specie basis, this trouble woul
have been small in comparison with wha
it is. Had there been no over emission
paper money, there would have still bee
depression in trade and manufactures, BIZ
we should not have been overwhelmed 6
we have been with debt and bankruptc,
We should have felt the effect of over-prC
duction, as Great Britain is feeling i
Enormous as has been the increase of col
sumption in civilized nations within III
last 20 years, it has not kept pace wit
production. The world has of late bee
pushed on too rapidly. The wonderful il
ventions in machinery, the revolutic
effected by steam power, and thereductio
of time in international exchanges, hay
greatly disturbed old economic laws. Pr
duction has been immensely stimulated
forces which were not understood. or
least were not utilized. until long after Il
commencement of the present ce,
tury, the result of which has bee
over production, reaction, depression
and these are felt in the creates
measure in those countries in which the:
forces have been most actively in us