The New York herald., 1875-12-02
Peter Cooper Correcting ReVerdy john
sons Remarkable Mistakes.
Why the National Government Should Control
and Maintain Legal Tenders.
STRANGE FALLACIES.
"If Any One Wants Gold Let
Him Buy It."

takes of Mr.. Reverdy johnson, to express more
forcby than he has done before the necessity
vesting the national administration with the controlling
power in all that regards the money used by the peo-
pie, tho repeal Of the law demanding resumption OF
specie payments in 1s79 the secondary Importance OF
gold and silver a circulating medium and the abso-
lutte need Of extending rather than contracting the
present greenback system
MR.. oooPERs VIEWS
REPoRrER-hr Cooper, what do you think OF the
late letter Of Mr. Reverdy Johnson on the subject
currency2
given wholesome truths, and, for Of his In
telligence, has made some remarkable mistakes He
says truly that he question OF currency is now the
most important before the country. IL rises,
should RISE far above mere party contests" He adds
with great proprety that 'the subject OF currency
Affects the permanent welfare of every citizen the
prosperity OF the country and the reputation of the
government" He then adds that 'it must DO obvious
to every rejecting mind that currency ought to be
far removed from luctuaton of value as possible"
believe that Mr. johnson is unquestonably right
In saying that, with currency, subject at times TO
depreciation and at times TO appreciation, the consc-
quences can but be Injurious, and the extent OF the
injury will be proportion the changes of value
These statements OF Mr.. johnson indicate Just such
currency the constitution intended to provide for
the American people Mr.. Johnson then states-what
believe to be entire mstake-that ''the experience
OF the world has long since demonstrated that gold and
silver alone constitute safe currency" He further
nation can prosper which adopts currency not
vertble on demand into gold and silvern
So far from this last statement being correct find
shat the greatest prosperity known the history OF
England took place during the twentysix years when
the Bank of England was unable to pay specie on
demand believe the history of the world does not
show single bank that has operated through long
course OF years promising to pay specie on demand,
that has not failed to make good that promise
eral occasions Mr. Johnson proposes TO consider the
whole subject from two points'-
FfrSt-"What should a currency bel
Second-"What control has the government over ttP'
l VIII answer TO what a currency should be, in
vi a U
should be that which is most valuable the State and
OF no value 10 any other country"
GOVERNMENT BANKING. ,
REPoRTER-But what are your views, Mr.. Cooper, on
this question of currency in relation to the govern
ment at the present time?
Mr. "COPPER" think the currency question has been
managed by the government very much in the inter
ests OF the moneyed classes and very poorly IN the In
terests Of the people. Let US look at some Of the
facts. ! think that republic like ours, with its
100000, with its enormous extent Of unoccupied
land its wonderful resources and its enterprsing
people-equaly marvellous for their growth and the
increase of their wealth within the century has
need to borrow from anybody Why should this people
borrow private debtorS If, in their sovereign
pacty through the government and under constitutional
and legal forms they can lay under contribution the
whole property and the services of every in pro-
tectng the lives aud property of ALL they certainly
issue tokens OF this undoubted fact in the shape of
ereigny, the money of the country, the and
Ihe means Of exchange The people who give them in
their sovereign capacity must take them their pr
vate capacity and again receive them in their sovereign
capacity as the government for taxes This makes their
circulation their But the or these
paper illegal tendersp is that they tokens of so
much service or material rendered TO the government
and they also promises TO render equal amount
OF money useful material in exchange to the
holder by the government Now the government keeps
this promise in three ways-frst, by accepting these
paper promises they may called for all taxes and
dues to tile government; second, by compelling every
individual TO accept them payment OF all debts and
finally by redeemng them in that which the holder
OF the currency shall accept equivalent value and
khns distribute burdens and benefits over the whole
country.
SOMETHING SOLID
REPoRrER-How is the public debt 10 be paid at last
and how shall get out OF this vortex OF promises to
payf -
of this The circulating medium Of money set
lies down at last into something solid in interest and
property under the same law OF conversion that makes
each drop OF blood contribute to bone muscle other
organ OF the body. For instance New York city is
building great series of piers and wharvcs for the
commodation OF present and future commerce and
trade 1t demonstrable that these piers and wharves
will pay in rents to the CITY, not only the interest but
the principal of all the money invested,
In twenty years. The city issues its bonds
for this work, which represent a certain
amount Of interest and principal But the city not
having the right 10 issue money, offers its bonds for
sale to the banks TO private individuals, which are
hencelorth aenated from the possession OF the city
in order to get the money or currency pay for labor
and material in this public work You might ask, why
should not the city keep these bonds in It's own sales
and the money for current expenses on its own
authority and credtS | answer:-Because shat would
be act Of great local soveregnty-though IL
more than virtually conceded to local banks.
Let the general government then, in its sovereignty,
make such a currency SO based and secured, legal
tender Then when this work Is done and begins to
pay to the city rents let the income be applied TO tho
extingushment OF the bonds as well as keeping II IN
repair. This is what mean by settling down circu-
lating medium or currency into solid material and
capital organized into permanent use.
THIS MAKES CIRCULATING MEDIUM
always expanding and always contracting into solid
forrn The true design and highest function OF cur
rency and credit to encourage and stimulate indus
try and enterprise in useful forms and to promote the
work by giving the very tools with which II can be
done IL represents the material value OF the products
OF labor in process and yet complete Tor which 1t
provides merely the current wages or support till tho
fruit OF labor TO maturity when that pays for
all The repeal Of the law permitting holders Of legal
ienders 70 convert them at their option INTO interest
bearing bonds the most cruel act OF injustice that
was ever inflicted the American people From
thence have come most Of the financial troubles and
disasters OF which so much complaint is made at the
present time. Our bonds were rushed abroad, to be
exchanged for Iuxuries and for gold at sixty cents
the dollar, instead OF being taken by people at
par Millions oi gold goes abroad to pay interest to
foreign bondholders instead OF being paid TO our own
spired into the government when the necessities of
the being over further issues Of bonds made
and currency was withdrawn and all credits began 10
contract natural and inevitable consequence.
This brought OF those irrational conditions in
human affairs which We call panic" that brought
down credit at to the zero point and shrunk the
ExTRAvAaANcE AND WILD SPECULATION
REPoRTER-But, Mr. Cooper, do you not think that
personal extravaganza, rash specuatlons and over
production generally have much TO do With the present
financial embarrassmentsl
Mr. CoorKR-ln restricted sense, all these causes
lie at the basis Of much financial embarrassment
Over production and undue mportatons seem TO be
the plausible OF the reasons offered for the pres
ent financial embarrassments, because when goods ac
cumulate merchants hands and products multiply
in the factories the mines and farms without corre-
spending demand and consumption, the most obvious
cause or explanation is that there has been mnch
production and importation. But have these been TOO
much for the demand and consumption previously ex-
listing subsequently, The true law Of supply and
the stimulus and the for production is demand
this FIRST and the former comes last IN the order
Of nature There might be production hatoverlakes
and passes an existing consumption particular cases
but it Is well also TO examine, IN general way, whether
any cause has parayzed consumption. NOW, " mas
been that the systematic aud constant contraction
Of government credits naturally induced the contrac-
tion OF all other credits this naly brought on panic
that acted like paralysis all credit TINS LED inev-
ttably 10 the stoppage Of SO much active Industry
and work as - take away the purchasing power
OF a great many, and TO stop large part OIL
the previously existing consumption and demand.
Hence, the over-producton tsocaed has been merely
an accumulation Of products, due to under consump-
~ !! y. "a.