New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-08-21

tary in retiring the legal-tender notes. Mr.. Van
Dyck. the clear-hesded and judicous Sub Treasurer
at Ncw-York. who kept me promptly advised OF
everything which occurring mt the commercial
center which likely to affect the interests of the
Department, and who anticipated every possible
danger thorefrom informed that there were indi-
cations of Wal-st. panic and expressed
his apprehensions that if the next monthly
statement showed that the usual curtaiment
had been made panic would actually occur. The
apprchensons of Mr.. Van D,'ch also expressed
by other valued and iudicOus correspondents in
New-York and although | knew that the disease
with which the country was laborng was plethora
Of paper money, aud that there then real
cause for panic. thought il wise to give heed to
the warnings which had received. thereupon
sent for Gen. Spinner twho, highly | esteem his
successor. sorry to learn is not to occupy.
through life. position, the duties of which he has
for many years discharged with an ability uiisur-
passed, and a diligent fidelity uneGualed by any
officer ever employed by Government and said 10
him: General, our friends in New-York advise me
that there will be panic in Wall-st. if your next
statement shows that the usual monthly curtaiment
has been made. You have the four millions Tor cam
collation. hand. and have occasion 10 use them
The law only authorizes their cancellation it does
not require il. Let them remain where they are so
that your statement will show them to be cash or
This course was pursued, and although the four
millions had been actually retired and were never
~ SEQ daylight again. except to be counted and
burned the report nj the end Of the month indicated
that the depicting hand of the Secretary had been
stayed Wall-st. at once in good humor again.
and the operators for rise were relieved as the
sensualist il relieved, who oppressed by his late
dinner and heavy wines dreams that he is in trouble,
and wakes up Overjoyed to find that his dream was
not reality
have made the foregoing reference as sailors take
observation after having been long in fog, to
show how retrograde have been the movements of
our finances during the last eight years First, in
obedience to the senseless cutlery against contraction
(although the withdrawal Of legal tenders had been
fully made mp by the increased circulation of the Ma
tonal banks came the repeal of the act authorizing
the withdrawal and cancellation of the legal ten
ders then the decision of the Supreme Court Over
ruling its former decisOnl that the legal-tender
acts were not only constitutional bat that the notes
issued under them could be rendered and must be
ceved in satisfaction of contracts made before as
well as after the acts were passed.
INITIATION AND TIE PANIC
Thus the currency question settled and every
body was happy. The operators in stocks and gold
were happy. because Secretary could lay his ruth
less hands upon the currency. The railroad com
panies were happy because they could pay in de-
preciated notes the interest on the bonds land the
principal. If they had matured issued before the
passage of the legaltendcr acts. States were happy
because they could violate the letter and spirit of
their obligations. and yet keep within the law Rail-
roads were built or commenced in advance of the
need of them. because money could be borrowed and
profits could be made in tbcir construction. Extrava
gance with waste. its coDconitant. increased, and
everything seemed to be lovely" lovely as
marriage feast. SO strong had become the deluson
produced By redundant, and in the language
Of Webster a degraded currency, that one of the
most sagacious bankers in New-York, who had
formerly been one of the most vigorous supporters
of contraction said to me III the Autumn
Of 1870: "Mr. McCuloch think we shall have to
acknowledge that We were IN the wrong In our OPP
position to tho lega-tender notes. the country Il
prospecting in spite of them. We are getting on very
well, if we have superabundanee of currency"
But alas alas all earthly bliss is transient If not
illnsory The happy days rolled until the time
came later admit. than had expected, when the
imitation bubble could longer bear the strain upon
It. and the country awakened from its blissful
DRAINS to a realization of the fact that what had
appeared to be solid Observation-Disclosures the
seeming prosperity Of the country was sham and
deluson. The first impression made upon the
public mind by the crisis of September, 1873, was
that there was merely a panic in New
Of 1857. This impression Of short duration. A
few DAYS were sufficient TO show that what was sup
y,osed to be- ONLY an unreasonable and unreasOnlng
panic was the outbreak of deep-rOOted disorder to
stay which the reissue, as 1t was called, Oh
$40 10000 of legal-tender notes was Is powerless
IA bread pills would he to check the progress of
cholera yellow fever. And while IT seems TO
me as clear day that our financial troubles are
attributable mainly if not exclusively to redun-
dant currency we find thousands of hCDcst-mnded
people and the intelligent leaders of great party
In one State at least, denOancing contraction, when
there has been contraction the cause OF these
troubles, and camorng for more currency, as cure
of disease which an excess of currency has pro-
duced. Whatever may lie the operations of such
practice upon the human system, il is certain that
financial disorders not durable by doses
sllopathic or homeopathic-Of the poison. from the
effect of which collapse has resulted.
Is THE IND To BE REPUDIATIoS
In view of what has occurred in recent iinan-
cisl history. is it strange that calm looker-on
should have said to me few days ago You
Americans have seen the beginning of trouble but
not the end. You are passing through one Jordan.
but deeper one has yet be tray ersed before you
stand upon solid ground again. You are too wise 10
profit by the experience of other nations. You
will hug the dc!usiOn that you can make money by
printing presses that promises-to-pay dollars
good ~ dollars until they become a. worthless as
the assignats Of France, and you will close the
account by repudiating them"
Was no right Most assuredly he was not; and yet
cannot deny that have given and still giving
him GOOD ressons for his conclusions.
London, Aug. 2. 1873. HUGH McCULLocH