New-York tribune., 1875-10-11
UENDELL PHILLIPS And CARL StHtRM

UENDELL PHILLIPS md Carl SCHURZ.
When Wendell Phillips, Judge Kelley, Hen
nv G.. Carey, and Henry Carey Baird tell us
what would happen under the regime of their
3.65 assignats we hardly think it worth while
to dispute with them. We are glad to he re-
lieved from the always difficult task of pre-
dieting the future by the opportunities they
afford of exposing Misrepresentation of the
present and the past. Far be it from us to
charge falsehood and ignorance on these dis
coverers and rcfOrmeIs, but we may be per
mtted cOurtcouSly and temperately to point
out their misapprchensiOnS of fact The ne
ccssity of doing this is obvious from the cor
rcspondence just published between Wendell
Phillips and Carl SchuH.
l. In his reply to Mr.. Schurz's letter OF the
Sth inst. published in THE TEIBCNE of Sat
urday) Mr. Phillips says: never proposed
{" TO abolish the discount power of the banks"
Begging his pardon. the measures proposed by
himself Judge Kelley, and Mr. Carey have
precisely that end in view. These measures
are: % that Government shall pay 3.65 per
cent interest on deposits of above 500 left
with the Treasury. thereby depriving the banks
of the fund which is the basis of their loans,
and (2) that the Government itself shall "lend
" grecnbacks at 3.65 per cent per annum to
any one who will pledge national bonds or
q" "improrcd lond" This is the proposition of
Wendell Phillips himself in a letter written to
Gen. Butler and bearing date Feb. 7, 1874. In
that letter Mr.. Phillips proposed to issue in that
WAY 81 ,2OO, 900, 900 of legal tender. Under
such a system of legal tender what bank. or
what individual of sound mind would lend
money, or even accumulate itf In the Ian
guage which Burke applied to 4 system of cur
rcncy far more sensible, "WhO will labor
"without knowing the amount of his pay
"Who will study to increase what none can
estimate! Who will accumulate when he
[" does not know the value of what he saves
eff YOU abstract it from Its uScS in gaming,
" to accumulate Your paper wealth would be
"not the providence of Il man, but the dis
" tempered instinct of Il jackdaw'
III. In the book of Prof Bonamy Price and
in the writings of all accepted teachers OF polr-
ical economy, il convertible currency means
currency convertible into coin On demand. 1t
is therefore singular misapprehcnSion of Ian
euage for Mr.. Phillips to charge Prof. Price
with countcnancng a currency of paper money
convertible into 3.65 per cent assignats alone.
Prof. Price proposes that all banks shall
nav their notes on demand in standard
gold coin. TO guarantee cOnycrtibiity into
coin he proposes that they shall deposit with
the Government approved securities in order
that whenever the banks fail to pay on de
mand, the Government may sell these sccuri
ties for coin and with the proceeds pay the
notes whic. the banks have failed to meet ac
corIng to the promise inscribed on their face.
This is a species of paper currency totally diff
fcrent from the kind recommended to the pco
pie of this country by Judge Kelley, Mr.. Carey,
and Mr.. Phillips
III. Mr.. Carey and Mr.. Phillips have repre-
sented that France has proSpered under an in
convertible paper currency, issued III quantities
to suit the wants of trade The facts are that
France like the United States, having issued an
inconvertble paper currency under the stress of
war and subsequently, to pay the penalty of
defeat, has for two years, unlike the United
States, been steadily Withdrawing that paper
and supplying its place with coin Two years
ago, when the last insialment of the indemnity
to Germany was paid, tie paper money of France
was 3,O71 10000 francs, or S6l1,OOO, 900.
II is now 2,34S, 100000 francs, or $40. .O00.-
600. and not 100000. 900. as erroneously