The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-03-08
r.. NJ. T. Hunter ON the Financial
Question.

to encounter on each voyage.
r.. NJ. r. Hunter ON the Financial
Question.
We call attention TO the able letter Of Mr..
Hunter, in other columns, written at our re-
quest on the most important question of the
period. We think it will be conceded that the
HERALD evinces discrimination in its invita-
tons to writers to discuss difficult public ques-
tons requiring special knowledge and train
ing The admirable Communication of Mr.
David A. Wells, which we printed few
weeks since, on what he calls "the cremation
theory of resumption is generally pro-
nounced one of the ablest things that even
Mr.. Wells has ever written. Our applica-
ton to Mr.. Hunter was also prompted BY
our high estimate of his qualifications to
handle such subject. He is statesman Of
mark, trained in the soundest democratic
school, He served as Chairman of the United
States Committee on Finance from 1849 ia
the beginning of the civil war in 1861, and the
fact that his party thought him qualified to fill
for twelve years position which had long
been held by Silas Wright proved their esti
mate of his financial ability. 1t was not,
however, merely on this account that We
solicited Mr.. Hunters opinions. He is a
Southerner who held high Offices in the Con-
federate govern ment during the war. Ho has
been an attentive observer OF Southern affairs
since, and e supposed The country would be
willing 10 see the view taken OF the financial
question by the most competent judge in the
South. Our currency sys EN- affects the
South in a different manner from what it does
the North. The prosperity of the country,
IS whole, depends on the separate prosper.
ity OF its parts, and every survey Of the situs
ton is defective which overlooks the peculiar
condition of the Southern communities. We
must not be understood as indorsing all the
positions of Mr.. Hunter; but we have not
space at this time to point out and contro-
vert those from which we dissent. We will
merely notice his explanation of the reasons
why the South has shown 80 little power of
recupsration during the ten years since tho
close of the war.
Mr. Hunter regards the destruction Of the
State banks by federal legislation as great
impeachment to Southern prosperity. For
community which has been exhausted and
Frustrated by desolating war the first ne
cessity is ability to command and utilize capt.
tsl Banks create no capital, but they are in,
dispensable agencies tor extending and
strengthening credit. and the National Bank.
ing law has virtually deprived the South Of
this great resource by destroying the State
banks. Had the South been able to substi.
tute national banks in their place, as we did
in the North, the evil would have been
slight. But under system which requires
heavy deposits of federal bonds the Southern
people, who were not the owners of such
bonds, were deprived of the ordinary facil-
tiles OF credit. If tho State banks had
been permitted to stand Southern re-
cuperation would not have been SO
fatally obstructed. Banks could have
been organized and secured on such
property as the Southern people possessed.
The bonds of their State governments, the
municipal bonds of their cities and the bonds
of the Southern railroads would have been
available for that purpose, and numerous
local banks could have made advances to the
planters on the strength Of their growing
crops and their real estate. But the property
of the planters could not enable them to
borrow money in distant parts of the country,
and they were deprived OF the great advsn-
tage of we'll organized system of home
credit. What would have been the condition
of the North if, when the State banks were
destroyed by federal legislation, we had been
unable to supply their place by other institu-
tons?
Mr. Hunter discusses emancipation only in
its financial aspect. He does not dispute that
it may prove an ultimate advantage TO tho
South even in a pecuniary view, but its i'm
mediate effect was undoubtedly disastrous.
1t is not, as Mr.. Hunter puts it, a question
between the comparative economy Of free
and slave labor, but question as TO the
means of recuperation after the impoverish-
ment OF a great war. What the South most
of all needed was credit, and had slavery
continued abundant loans could have been
procured by mortgaging that species of prop
erty. We suppose this is undeniable as
financial proposition but it is as futile to
discuss il now as it would be to spend I'M
availing regrets over the war or to cry for
split milk There are many interesting
points in Mr.. Hunters letter which invite
discussion, but we have no space for them al
present
| PERSONAL INTELLIGENCE.
Rov Rron Herto ord of ENGLAND. II