The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-08-03

sempt to advance the value Of our currency to the
gold standard. We are told that the specie pay
ments Involve great contraction or the currency.
and that contraction OF the currency would
make money scarce and ada 90 the present dis
uess. ms objection rests upon fallaCy deny
both the premise aud the conclusion. IL rests
upon we iallacy that we can by law TX The
business. From the very nature OF a good cur
repcy II ehba AMI nows contracts ana expands, 10
meet the demands OF trade II IDLE it ought 20 be
redeemed; II needed Tor The purchase Of produc-
ton II should be issued to NEST the demand The
only law 10 regulate rs AMOUNT ~ 10 provide for
the Issue OF an that can be main tanned at par IN
gold. IL Il IS below par there rs 100 much; II IL can
not DO readily had IN exchange for productions
Tor which there Is demand thsn there ~ TOO
little Under tbis rule tne great body OF our
present circulation could Oc maintained At par In
gold and 81 the gold now lying lQle and al that
Is pros uced bJ mining VIII be added 20 and ningle
Wlth the paper money IN dally use 1t Is 80 IN
France, where an aggregate currency OF paper
tnan ours. so "a England, where the Bank OF
England notes and gold com are both in circua
country, except that the paper money being then
issued by State authority was OF limited citcula-
ton. And now under our admirable system or
United states notes and national bank notes both
could be maintained IN circulation at par with
gold and form currency as safe ana perfect as
human ingenuity has ever devised. All labor and
productions would be measured by al uncnange-
able standard. ana an the money would circulate
that was necessary TO purchase nc the gold stand
ara every production OF human Industry.
A GREAT ERROR.
caused ~ want OF currency, or a contraction
Of the currency. THIS IS a great errer. Ia sep
amount OF United states notes OUTSTANDING was
$3.50 600 600, or fractional currency $4,000 COO ana
OF bank circulation $3.50 900 coo, Ia an $780, 000
or more tnan 10 had ever oeen before. The panic
came with this vast sum alOai, and Secretary
Richardson, without authority OF law, issued
S26,O00,09O more " United states notes, for the
laudabie purpose, as he Thought, OF casing the
money market. lt nearly all went tato banks, end
there remained In unbroken packages. II food
ing a country with currency would prevent a
panic stop one, here we had the trial.
But 1t was only Ike pouring oil en- IRE.
II Is demonstrable that nearly all pancs
except only suoh as are traceable 10 war,
famine or ike causes, sprRg from expanded
credits and, In many cases, from excessive pa
per money, over production Is the inevitable
resuit: improvldent contracts unavoidable en-
terprlaes, and Wild speculation always follow
expanded credits, whether by corporations
banks or individuals. lnnadon,. tAe very name
and alas, tae destruction Olten fails on those
VINO did not breed the storm. Now that tune
has given us a iuii view OF the expanded credits
and mprovdent enterprises OF 1873, we only
wonder that The wreck was not more everwhelm
ing snd enduring. Surely prudent, sensible men
VINO VIII study such financial waves, must con-
Glade thas The only remedy Is 10 reduce credits (
20 a substantial bass teY articles Tor q lime
VIII not sell because ther9 Is no demand Tor /
them, or there IS an over supply. But this soon
passes away Industry IS 4raetaly reysying, /
aud now - the TIME 20 base cur enterprises upon
specie, aging money, ana upon tarht, industry
aAd economy
But we republicans afe often told mat il gold is
the standard OF value, why Wds paper money
issued ID an m excess Of Inc amount t6at could
be sept aE par IN god. inc ans IS that IL wac
issued under the oyerWhc ming necessities OF a
great cIg.l war. remsm1e well al. The clrCum
stances conn eCted With The atst ana all The sue
ceediRg issues OF United states notes. ana took ~
effective part as AIRY one else 10 providing for
their issue. II was Ia Fe0ru ~ lso2, after HI the
banks nzd suspended specie payments when our
armies had made no .. ogress, our cyenues were
cut oil by tae war and our expenditures were
more than slOO0,OOJ . day. There was then lying
on the table Mr.. Chase, secretary OF the Treas
ury, acquisitions for oVet OO00 10 pay our
so.dlers anu 20 supply them VITA IOod, amInuul- /
ton and transportation Our bonds could not be
Sold Tor there vas no currency to pay Tor them. We
had to Issue the notes OF the UGted states III the
iorm OF currency and YET az part OF tde public (
debt The only question was whether they should |
be legal tender between individuals In the pay /
ment OF debts. Upon this point had clear con-
VCttOns felt That our soldiers were to be COM |
pelled 70 take these notes as monoy that we were /
take them as money. We could not leave them to |
the tender mercles OF creditors. shavers and un-
patriotic mon, wAo would gladly 0ecry and repu-
dlate these notes. We therefore maze them g |
legal tender AID the supreme Court mas upheld |
ton 20 prevent thcir depreciation. We carefully /
limited the amount; we made them receivable Tor |
all internal taxes; We made them legal tender in |
pay Ihent Tor all deDts' ana We made Them CONVEX
toe IL to Donus, the Interest OF Wbich was payable
In gold and the duties or taxes on imported goods
we're made payable In gold so tnat we would |
have all ample fund In gold 10 pay The interest |
After all this re limited tue amount beyond whien |
We w s q az Sh Wien We 6saseGf IRIS
with the understanding ana declared public Z
pocy that after the war was over they would .
be redeemed Ia gold. Tue great error OF our
financial policy was IN repeating, instead OF sus-
pending, during the war the rlgGt OF each holder
az his viii 70 convert bis ereenbecks TAO bonds,
1 his would nave restored them, soon AFTER the
y ar to par IN gold. The consequences OF this err
ror is 10 involve in ne discredii, now ten years
alter the war is over, Of forcing everybody to take
eur notes at a depreciation OF fourteen per cent,
while the United states, with ample means, re-
fuse o redeem tlsm, according 10 the promise
printed on tGeiT face; and t.is involves US now In
a struggle Ni5h the dem rGyic party, waiCh
you are this tall called upon decide. Tie re-
publican party issued these UDlted States notes
as n Fans Tor the salvation Of Our country from
a democratic rebellion, the democratic Repre-
sentGtIves tneu in Congress declared That we had 4
no power 20 Issue these notes. thaC we had no
rig 20 make taem legal tender, and that II I
issued tuey would depreCiate 70 be worthless; /
tnat they would be bought by the cord, and now /
they are trying 10 maze heT prophecy good. We, |
Is republicans, are now trying, pc maps TOO care
fully and cautiously, 10 make these prGmges
good. We mean 10 DO 50, We viii DO 30 G0t only
Witheut sacrificing any business taierests but so
IS 20 promote them OUT the democratic party or I
Ohio, Win the insane ioly that has marked their
course since the beginning OF the war. are neut
on reducing oar currency 10 TIE etan0srd OF Con- /
tlnental money, Of the French aSSgnais, OF the
Wild cat money OF lOgty years az and OF Cen
i0dsraJe money len years a=o when /: could be