New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-01-06
COZ. 11LDEY ON THE FINANCES.

|
| is devoted to discussion of the finances, and
very properly so, considering the Importance
of the subject and the universal interest it
excites among intelligent men of all classes.
| The Governors views are entitled to great
weight, being the opinions of one who has
read and thought much and has had the adj
vantage of long experience. and who has,
moreover, the capacity and cast Of mind to
turn observation and study to good account.
| Having said this it is hardly necessary to add
that the conclusions and recommendations OF
| Gov Tilden are simple, sound and practical
BILE. The one thing necessary to give sta
| bility to business and equity to pecuniary
| engagements is the restoration of all our paper
money, whether issued by the Government or
by the banks to an equality in value with
the standard gold dollar, or in other words to
restore specie payments and to maintain them
permanently That is the creed of THE TRIB-
UNE, Gov. Tilden, and all honest currency
| men.
The Governor maintains that this might
have been accomplished long ago, and
that nothing but evil has resulted
from the shutting and double-faced
policy of Congress and the Treasury Depart
ment. 1t is simply question of the Govern
ment's command of resources to pay such
portions of the circulating credits green
backs) as the public may return upon it for
REDEMPTION" That command of resources.
if we may be permitted the observation, was
| ample at the time Mr.. Greeley favored imme-
date resumption, and it is ample now.
There is the taxing power, and the Dor
rowing power. and the power to re-
trench; and we wish we could discover any
disposition on the part of Congress to
make use of either of these powers for the
PAYMENT of its dishOnOred promises. III the
pledge on the face of the greenback has been
for ten years disregarded. with what consis-
tency are we asked to put faith in now
pledge to be honest after 1897 Why not be-
gin to be honest at oncef We are glad to see
that Gov Tilden believes that there is at this
present time can excess of currency beyond
"what is capable of being used for the bust
"ness of society," and that this excess may be
without injury removed by the Governments
withdrawing portion of its paper. Again he
is right when lie says that the distress now
| felt arises from " a want of capital, which the
party in distress does not own and has not
a." the credit to borrow" and not from a lack
of currency This want Of capital is caused
in turn. by investments which have not proved
successful. All this is as old as Adam Smith,
| as is also the delusOn that the remedy is more
money or cheap money. 1t is forgotten that
the distressed individual would have no adj
"ditional means to buy or borrow these new
issues" which could not be obtained without
an equivalent. The manner in which the pet
| flllacy of the InhatiOnistS is cut up root and
branch leaves us nothing to add 1t is sur
gical operation by master of the art.
The observations on the prevailing extrava-
gance of Municipal State, and National Gov
ernments, and its blighting effects on the
moral and material well being of the people,
will not be new doctrine to the readers of
The TRIBUNE. We have preached in this
vein in season and out of season. before cleo
ton and after election. The heavy battalions
of Hard Times are now drawn up on our side,
and it is necessary for those in power, whether
Republicans Democrats, or RefOrmers, to be
more careful of the public money, under pen
atty of being remandea to private life and
made 70 stay there
! While heartily agreeing with most of the
Governors reasoNings and all of his cOnclu-
sIons on the subject of the currency, we are
unable fully to accord with his views OF the
comparative unimpOrtance OF bank notes III
their influence on prices. " Free Barklng on
the basis of irredeemable greenbaoks, as per-
mitted by the latest compromise with the
In1ationists, he would agree with us in
condemning. But we 90 further and maintain
that the power to issue bank notes, "volun-
"tarily accepted by everybody in place OF
"cOin," is a privilege which ought to be
subjected to stringent limitation. The
obligation of the issuers to pay in
coin is not alone sufficient For this opinion
we have not only the authority of Webster
and Calhoun. but that of nearly all the great
writer's on banks and currency in Europe and
America, including Mr.. Tooke, whose opinions
in regard to the Bank of England Gov Til
den seems to share. SO far as our knowledge
| extends there is no country in Europe which
permits any approach to the unrestricted issue
of bank notes, subject only to the obligation
of redemption in coin. Certainly the laws of
England, France, Germany, and Belgium are
very far from allowing the banks unlimited
| freedom to substitute their notes for coin, thus
"banshing coin" from circulation, to quote
the words of Webster in 1888. We must also
dissent from Mr.. Tilden's summary condemna-
ton of the English Bank Act of 1874. But
these are minor points. Any system of bank
ing and currency under which paper substi-
tutes for money are convertible into real
money on demand and not forced on creditors
az q legal tender, is 80 immensely superior to
our present system that we should welcome
the change though it brought us nothing
better than the very free banking which was