Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-10-06
GENERAL PILLOW.
His DecIinatiOn to Deliver am Address
atthc Fair at CharIestOWn. Mo.
His Views upon the Financial Situation
Legislative Errors the Cause of
business PrOstratiOn.
a Substitution of Greenbacks for Ma
tiOnaI Currency the True Policy.

From the Charlestown mo- Gazette
We copy the foilOwing very interesting letter
OF General Pillow touching the great and
growing issue OF the day:
MEMPHIS, TENS., september l6, 1875.
II. J. Deal, L. W. DanfOrtn and j. II. Bethune,
committee:
CISNTLFMEN-Your very courteous letter
OF the tenth instant, inviting me, on behalf
of the Mississippi county agricultural ard me-
chanical soc ETY., 10 address the people at your
fair, is received. II would afford me great
pleasure 10 meet their wishes and comply with
your request; but my time will necessarily be
occupied by my professional duties in the Su-
preme court OF the state, bo n before and dur
ing the meeting of your association, / accept
the compliment OF your invitation, and thank
YOU for the honor done me. The EeOple OF
Mississippi and the people of Tennessee are
part of the same great community who
dwell in the valley of the Mississippi. We are
one in interest, pursuit and nationality, and
we should cooperate in sli measures of policy
which tend, or may tend, 10 better the condi-
ton of the agricultural and mechanical class
es OF this great valley. Those interests are
now everywhere depressed. This is so all
over the country, north as Wen as south why
is this so? II is not because the earIh re1uSt
its accustomed reward to the industrious
agriculturist: nor because the hard-wOrk-
ing and honest mechanic has lost his habits
of industry. What then produces this de-
preston? answer, because the financial
system OF the country is wrong, and because
the legislation of the government is unfriend-
ly TO these industries. Tie financial system
OF the government grew out of the necessities
of the late civil war AT that time there was
nothing but the credit OF the government lett
ii ID conduct its vast operations upon. The
present banking system was the only one
which was then possible. II was well con-
ceived and answered the purpose of its con-
cepJion. But ii is all wrong in a time of peace.
From its foundation up, it is bat a syste m
Of credits. The bonds Of the government and
green backs are substituted for specie as ba-
sis of all banking operations. These bonds
aid greenbacks are bat credits. National
bank notes are payable and redeemable in
UrAgnh9ckS. A three classes SeCuritie
are government credits. There is
no approaching specie payment from such
note of the two thousand banks is payab e in
greenbacks, and the holder has no right 10 de-
mand anything else. This war system OF
credits should be done away with by congress.
How can the country reach specie payment
while two thousand banks are doing business
on bank oteS, pay able in gTeenbacks, and
greenbacks are payable at the pleasure of the
government, and can only be converted into
bonds, at large premiums? The whole system
is in The interest of the government and the
capitalists, who seek large profits and escape
al taxes on their capital by converting their
means into government bonds. Why should
the government pay tWenty-three million
dollars interest on its bonds, upon
the credit of which it issues these bank
notes? Why not call IN the bank
notes, and with its greenbacks pay its bonds
and save this twenty-three millions of money
and tighten, TO that extent, the taxes upon
the country? If 1t would do this, and make
its greenbacks receivable for import duties,
and reduce its interest on its bonds to three or
four per cent, and make greenbackS and
bonds convertible into each other at the
pleasure of the holder, it would reach at once
a specie basis. 1t is an acknowledged right of
all governments to mOlItfy all its loans, and
to fix the conditions upon which those Derry
ing rights under those loans shall eAjoy those
rights. This is one OF the prerogatiVes of
sovereignty. All governments, which have
had length of national life, have had
wars These wars beget great national debts.
These debts accumulate until the national
prosperity and life demands the reduction
n q national OhliU2tinnE
This is no violation OF its faith. 1t is the cX-
ercise of one of its pTerOgatiVes which 20 gov
ernment can part with. All European gov
ernments have had this TO do, except where
they have gotten rid of the national obliga-
tions entirely by successful revolution and a
new dynasty. The adoption of this system
would enable the government to remove its
import duties, which have to be paid in gold,
anu which comes mostly out OF the greaC ag-
ricultural and mechanical industries of the
county. With this gold tax it meets its in
terest on its bonds held abroad. Reduce this
interest, and we reduce the gold tax on those
classes who consume foreign products. No
government can part with its power TO legiS
late Tor the weu-Deing of its people. By is.
suing bonds bearing SIX per per cent. IL did
not deprive itself of the power to reduce
that interest, nor pledge itself not to do so.
The purchasers of bonds know that the gov
eminent has the right to reduce the interest,
and they take the bonds subject to the eXeT-
else of that right. The legislation of congress
is in favor OF the banks, bOndholders and
manufacturers. 1t is un1riendly TO the agIi-
cultural and mechanical interests of the
country. am not connected with the
grangeTs but l am in sympathy with this
powCiiUI organization. Its purpose is pa
Iriotic and couseI Vstlve OF the well-being of
the country. 1t should not become partisan,
but il should WELD its vast powers to correcI
the abuses AID reform tbs false legislation CT
the country. Ihe agvlcUIturyl and I0echani-
cat industries Q, Ghe country are the only pr1-
ducing interests which gives wealth ard
prUSp Sperity. These great interests will never
prosper until there is a change in the
financial system of the government. Reduce
70 an "a H.
bonds deposited with the government, as a
basis of the national bank notes, with green
backs, and make gTeenb backs AMI bonds con-
Vertlble into each other and receivable in
payment of imports. Do this, and you will
have reVOlutiOUiged the financial system and
reached specie payment, for gold and green
backs will have reached an exact equi ipOise,
which is specie pay ment. To refine green
backs and increase the volume OF national
bank notes, rs was proposed by the action of
the last congress, Is 10 90 further
off from specie payment. The present
bank system rests upon credi!S cad
OF a specie basis. 1t is wrong in prin-
ciple, and must be changed Before we
can have a sound financial system. An hum
would not bring the county back t0 2 sound
financial system, with currency convertible
into specie at the viii of the holder. L have
not the time, nor is the present the proper oc-
casOn TO Vindicate these propositions. l only
announce them as sound financial aXiOms
and truths in pOlit Cal economy. They are the
views | entertain, and have direct bearing
you represent, and they interest all other
classes of the country. With great respect,
am your Obedient servant,
GIDEON J. PILLOW.