New-York tribune., 1875-10-16
A PLAN FOR RESUMPTION.
LETTER FROM EX-sECRETARY MCCUL-

ATE WITHDRAWAL AND FUNDING or THE LEGAL
TENDER NOTES.
rome Editor Of rhe Tribune.
SIR: BY what means then, is the country to be re-
lieved from the existing embarrassment To my
mind, the answer is a very simple one-by industry
and economy, by earning more and spending less by
the restoration of confidence; in word BY return
TO the true measure Of value, departure from
Which has done moro than anything and everything
else to land lis where We are. Confidence certainly
will not be restored nor business rest upon SUD
stantal footing, until this is brought about.
The experiment We have been trying for some
years past of substituting inconvertibie paper for
coin, OF endeavoT;ng by legislative enactment 10
give value to promises which they do not possess,
is not an original one It has not the gloss of
novelty TO recommend it. 1t has been tired on po'h
sides the Atlantic, and always with disastrous re-
suits.
Some years ago my excellent friend Charles
Beecher, who was then living with me at Fort
Wayne and who had among his other gifts talent
for invention, discovered, as he thought, new
method of propelling steamships. The more nc
thought and the more he read upon the subject the
more confident he became that he had made n DIS
coyery which would not only be of great gain 10
the world but which would secure to himself tame
and fortune. Before applying for patent, now
ever he thought lac would bring the matter TO the
attention of some one whose judgment he could
rely. lie therefore wrote to his brother lhoniS IN
Beechcr, then living in Cincinnati, and who had IL
not been foleordaned that all the Beecher brOteis
should be ministers of the Gospel, would have ui-
doubcdly become one Of the create II mechanics ofthe
age described to him his new process of PROPULSION
and requested that he should say what he thought
about it. Although afterwards had good iaugh
over it, I shall not soon forget the shade OF ds'l-
pontnent which passed over Charlcss intellectual
face when he read his brothers aconc reply, when
was fOllOwS:
DEAR CHARLEY: have examined your proposed
tions 10 il. first Is old nNnton second IL j. good
for nothing Yours atectOnately, AoH'
If "Tomr could have gone further and said,
"Your process is not only old and worthless one
but, instead of driving ships more rapidly through
the wafer, il has wherever il has been tried in
variablv sunk theln,, he would have given sub
stantialy such an answer as might now be given TO
those who think the way to make money plenty Is
by the free of the printing press, and that All
Government has to DO to create money is 10 decree
that its promises to pay shall be money-the higher
law that has been in force since man begun tn trade
with his fellow to the contrary Notwithstanding.
THE TRUE MEASURE OF VALUE.
Some time after the close of the late civil war met
a yirginian who contended that the failure OF the
South 10 establish its independence was attributable
To it's financial condition. He related to me an incl
dent which will repeat, as nearly can recoilec
in mis- own language:
81 knew said he, "tlat our Confederate notes
which had been made a legal tender were terribly
deprecated, but a little purchase that | made
brought the fact home to me very forcibly. Az /
was walking along one of the streets Of Richmond
with some of my friends from the country, short
time before the fall of the city, observed IN the
show-window of shop some fine apples for saie
Thinking that it would be nice thing to treat each
Of my friends to an apple, which was then very
rara fruit in Richmond, | stepped into the shop and
said to the dealer How much for your apples
Three dollars apiece, was the reply. Three dollars
apIecer exclaimed; that is an outrageous price
for apples Cant help it, said the dealer; 1T
is as cheap as | afford to sell
Them, There were eIght in the party aud
S24 was rather more than could conveniently spare
az the time but Us had undertaken to do a clever
thing did not like to back down; so said to the
dealer. The price is eXtrayagant, but will take
eight of the apples The apples were placed upon
the counter and AS was taking out my wallet to pay
for them il occurred TO ME that had two half dol
lls in silver in my pocket, and that it would look
eter TO pay for the apples with them than with the
Confederate notes So inyountarily almost, threw
both pieces down upon the counter, remark
ing. Perhaps that will pay for theIl' On,
YES, said the dealer, Selling the half dollars,
and hastily dropping them into his TIL, that
will pay for them and leave you some change L
took the apples and he handed me back the change,
and how much do YOU think the change was Why,
Sir. S3G in Confederate notes. Do you think, Sir"
said he. that we could continue the war with
currency like that =
The real dollar in this case showed its purchasing
power over tue inconyeribe paper dollar, and SO it
ALWAYS will. This it did over Continental notes,
this over the French assignats, and 1T shows It's
mower TO some extent over our own legal tender
notes Grayitaton is not more certain than ~ that
law which makes gold and silver the measure OF
value. We may argue against it, we may struggle
against it, but it is law which is as irresistible as
fate. The value of irrcdeemable currency depends
not upon the law which authorizes its issue and
fixes legal value upon it, but upon the responsible
ity of the government that issues 1t, the pur-
poses for which it can be used, and the
amount in circulation. Our legal tender
notes are not greatly deprecated, because tine
limited States are great nation, rich in undevel-
oped resources if not in actually acquired wealth.
hecanse these notes are receivable for all public
dues except duties upon imports, but chiefly because
the amount Of issue is limited. Let this limitation
he removed aud further issues be authorized, and
we shall find that every dollar thus added to the
circulation will be marked by an equal if not
greater depreciation in the exehangcabe value and
purchasing power of the outstanding notes.
A POWER SUPERIOR TO GOVERNMENTS.
Does any sane suppose if the circulation Of
legal tender notes were increased as some are de-
srous that it should be- to two thousand millions,
that there would be any more real money in the
country by reason of this increase! /! Suppose Con-
gress should change our standard of measure and
enact that 30 pounds instead of 60 pounds should be
a bushel of wheat-would wheat thereby be ad-
yanced in value, or would the farmer get any more