The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-06
IredeemablG Paper In The Light Of European
Financial History.
,CAUsTIC LETTER FROM GENERAL BUTLER.

Unit4 States Legal Tender Club OF this city by Wen
dell Phillips
EUGENE BKEBK Esq, Secretary OF the United States
Legal Tender Club, New York
Mt DEAR SHIN compliance with the request OF the
Honorable Richard schell and other prominent men,
bers OF the Legal Tender Club OF which you are the
Secretary, have 70 submit the following the gentle
Nnep Of your club and the country at large
sCHuRzs SPEECH CONSIDERED.
Draining or from Mr.. Schurzs speech the whipt-
elylabub-excuse, apology, personal abuse and his
history, four substantial matters remain
First-The charge that Governor Allen and his
friends do know tina, ninety per of bust
ness transactions by checks notes and bills OF ex
change only per cent OF such transactions
are effected by bank currency and greenbacks II EN-
peror Carl could have Afforded to home little
earlier from his European festivities and informed him
self Of the actual state OF the discussion be filings him
self into the middle OF he would know not only that
Governor Allen and hs friends Of this fact
but that they the rst to bring ont and publish
It In this discussion He would know also that this
is the corner stone OF of their gravest charges
against present system Of finance. This II is that
leaves in the hands OF the Bank Directors the power
inatc at their sovereign win and pleasure In city
New York the banks inflated the currency 81 700 900
if one week OF last February and contracted it
So 600 900 week OF last March. Can government
take force currency much faster than that
This is the arstocracy Of money manufacture resting
in some 900 bank directors, that resist Our sys
&em-greenbacks and interconvertibe bonds-leayes
this power Of imitation and the hands OF
the whole Of business mem this whore should
restand where always does until law and force in
terfere with business by creating monopoes like the
national banks Would Ohio submit If only few cap
italists residing in Cincinnati and Columbus,
allowed to plant wheat and every else forbdden2
Yet this is present system OF money manufacture
Banks raise on lessen tho price OF every farm as they
please. They manufacture and destroy currency
suits their interests Indeed present system
OF finance is sided devics-not to say trick-by
which capital gets constant and uniform advantage
business and labor.
Second-The second point Of the speech Is, II the
government Increases the number Of greenbacks they
viii appreciate and gold Will advance. Mr. Schurz for
gets that system does not contemplate any
sary o. the whole currency made up Of bank
bills greenbacks deposits checks and bills OF exchange
We mean TO have more greenbacks and less checks
more democracy and less aTistoeracy in tho money
market more money everybodys reach and less OF
bank favors for the petted few. But suppose do
double the real currency as MI Schurz fears will that
OF ITSELF and necessarily increase prices and especially
the price Of goldS Listen 70 facts in history
related by the abest o. living economists H C. Carey,
in his letters to Secretary Bristow In 1874 PIP g. g.
and ST.
YAcrs NJ n. @ CAREY
The currency, however was then during the warl,
as constantly assured greatly deprecated,
goid having COMMANDED merry premiums, = Ger.ainy
the between the supply OF circulating notes
and those premiums il rs proposed now 70 show, as
Al the close OF 1867 the government circulation
amounted TO little less than 5000 600 As yet the
ftoft.r k.nA1
slase nank ~ nis,na 49,. ~ =
tain ING a.saa !uy ~ s~ - - "a 40 400
needed now 70 ahd 70 me aooVe t1s sum o. SIooVoo
giving total o. $4so, ooo,Voo we nave mere pro-
digtous and most rapid increase, ana YET the
gold premium nan scSIeely passseeG beyond 90
Two nonlns s's - " v roso - ~ -;
- VIII ~ r. - III ~ hacs Ma iargal, n
culatng medium n July me sreenoacss nad y IN
creased, sneu Alou ~ s1,as -.
premium nN.ns %s " .,,, sNo "a - sna
year tne legal senaeIs = ~ :, saao noa e"n
$780, ny dasna $, arnInm - Inc eylant 81 81
4esenue . ~. ~ 9s ~p1.,s !, = hav,rr haar -
placed by the December one OF 81 The following year.
49,. :. 1'h \ 80 ~ * ! ,,rtca aTao1d
lesa EN- NJ !, os7 ., nJ sc,ns 81 a1s ~
Ioul - - 10y R5 $3.50, : ,,e 90 -. ~ 49, .,,,r ~
December rive nohlns Aer, " Nay M premium nau
laiien = Z a,',r ~ ,sc,.tin ra,os - 80 II
oucton ~ me qnsh1y y eiIoaslns nou.s ~ USE -
wy 49, % hsasa-o -, ~ n,ra,. 49, ia ba
on manu- an 'neis ~. ou - a1 nseos'
xsr .ni large the premium had risen 10 forysx In
view Of all these facts there Il as CONCEIVE posi-
blIty Of exhibiting any necessary connection between
the price Of gold and the circulating note
AS difficult would il be 70 exhibit any such connec-
tion with the prices OF commodities Of home pro
duction, az changes ~ THESE aer having resulted
~ ION ho az co,lan and vyooIlen goods were XXX
g. ,ha reason that cotton and wool famine hsd
haar hrought about Labor was hiah because OF tho
r.rsd eStension or manufactures consequent
n ths adontion or a protectiye policy and upon the
demands OF The government for service in the field
Meat OF every kind higher because Of the vast dc
mand caused BY millions q men y na 40 %
bnnsreSs Of other comm odities that could be named
Real estate, however remained unailected-land N
Pennsylvania and houses h a , oyc,
purchased as cneapy 40 couau nso e~S0 20
lore me greenoack Ses 80 re resant there has been
from wa. usy t.0oSI nc ,oancv of the many Tho
an ncessahs "ar up . ho ont ~ view Inc action
crcuasns nose ea, ~ name az cdenosits J, by means
Of which the lew are enabled profit at the expense Of
the many who need 70 live by exercise o. tne pnys'o
sna sA poNeI , I'M a the dae or the crisis IN