The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-10
WENDELL PHILLIPS
A Reply to the Letter Of
Carl Schurz.
"FEWER CHECKS AND MORE GREENBACES."
The Waterloo, French and German
Illustrations Explained.


BosroS, Mass, Oct 9, 1875.
To THE EDITOR HERALD:-
notice what Mr. schurz says about good manners
and shall try TO follow his advice and not his
pie, II Is an easy course, but have not usually
thought Il good manners 10 taunt an opponent with
ignorance without reading his articles. Mr.. Schurz
wastes half Of his letter ia charging paper money
men with ignorance Of facts which not only know,
but have been tho st TO bring out in this discussion
and have been arguing for two or three years We
can spare this exhibition of his learning.
# he cannot answer, claim that he
shall not misrepresent I never proposed
to abolish the discount power of banks, only to forbid
their issuing bills They may continue to lend all they
at five six per cent which will be the general
rate Of interest wherever the government gives only
threc-sxty-nve said, ''fewer checks and more
greenbacks;" he argues if had said 'no checks
and all greenbacksn OF course he easily knocks down
the absurd image he had set up Bankers met in one
room, in the New York Clearing House, may handle
thousands OF millions with checks. Greenbacks and
introconvertibe bonds convenient for business
scattered from the Atlantic to the Pacific "Fewer
checks and more greenbacksn means money and
within reach Of every class Of business men.
BANKING ACCOMMODATIONS
Everybody knows that II is not true as Mr.. Schurz
reach Of the "whoIe OF the business men, When
bankruptcy opens bank ledgers to the public gaze
see that Eve or six rich firms have borrowed all the
bank lent Witness the Rhode Island banks, and tho
Spragues. Two three rich firms the bank
Smaller traders are pushed to the wall, and bank
ruptcy Our system will prevent This; more green
backs a healthier system OF business The war
currency reduced large share Of from three and
six months to thirty days and cash delivery. AS
the effect OF currency prices, Mr.. schurz and his
school measure everything by gold.
NFLATIoN PRICES.
He repeats his assertion that greenback system
will runously initiate prices. His assertions are entitled
to a certain respect But did not say proved did
assert demonstrated by long from Carey
the ablest living economist that currency was
not tho which made gold vary in price. Mr.
Schurz does not attack those facts because he cannot
He goes back hundred years and cries 'Assgnats
continental money! excellent .fooing Very witty
indeed Meanwhile must continue TO put more faith
in Henry Careys facts than IN Schurz's jokes. His
reference to Mill seems to mo simple evasion II
Bonamy Price inquiries about my health because
breve greenbacks secured by bonds pay
able in gold Will quiet Price by quoting his words
page $50 ! am not aware Of any valid objection which
can urged this method Of guaranteeing
vertbilityn When that can
tolerate each other Mr. SchurZ has got light since
criticised him and recants his emphatic assertion that
nation any where used paper money without
ruin He allows there may be times demanding II.
THE wATERLoo DEMONSTRATION
Though he cannot agree that paper notes actually
gained the victory at Waterloo he is forced TO confess
that England nourshed under paper and has aourshed
ever since, which is all claimed said the Of
France, that paper money had not ruined her he
serted II had always ruined every nation that tried it,
MT ochur1 arrows tnis, anu knuIy puts the climax on
my argument by showing that so far from paper having
ruined France, sho is preparing TO
sumo specie payment n;o,a That proves all
and followed immense amounts Of irredeemabe paper,
and whenever foreign commerce like that OF
France enables US TO pay aneighbor thousand mill
ions OF coin and have than thousand millions
of gold left We may also prudently specie pay
/ ment IL think il Until then French expe-
rience teaches us to wait
/ THE ALLusrov TO GERMANY
Mr. Schurz thinks my allusion to Germany ludcrous.
He was asserting that specie basis secured confidence
and stability Of price denied IT, and asked him 10
explain the state OF Germany country full Of coin
having just received one thousand million of II a
gift He replies by explaining why Germany is in
crisis do not need his explanation why; but he does
and cannot deny that specie basis Germany, choked
with coin. is yet actually in crisis which upsets his
claim that specie basis always saves nations from
crisis THAT IS al asserted, and no coniesses t. But
his explanations lets the bottom out OF his whole
speech He told us specie guaranteed against panc
and nnaton and overradng, and paper brought these
But listen to SchurZ:-
I'm Germany the Of the collapse was that over
production, over trading over speculation and over
excited by an over abundance Of money not the prod
uct OF labor, industry" &c
The New York Tribune joins him in this: so il seems
coin and paper, If in excess, all the same. Too
much coin in Germany works the same harm
too much paper here Where, then, is the Schurz
philosophy? Our grccnhack system has elements
heretofore untred which 10 promise more
security against crises than we have had hitherto.
| will tell him why Germany with all
specie trembcs 20 her centre: and why France
with all her $780, 600 OF paper, does not Ger
many has just made gold her sole legal tender, thus
binding herself slave TO the London market France
keeps free silver basis. Our bankers crazy
have put British chains make gold only legal
tender, and have ague lt every time London
feels cold Mr. SchurZ calls greenbacks ''rredeem-
/ able.n Who made them 50 !? Not Once they were
redeemabe in lve-twenty bonds, which good as
gold Greedy capital outwittng tho people ten years
ago broke that pledge and cut the currency loose We
mean TO make them again redeemabe in national
bonds bearing 65 interest and payable finally gold
A WARNING TO LABoRERs.
| Mr.. Schurz the laborer not TO trust us Let
| the working listen. The Third Avenue Savings
Bank of New York city has closed it's DOORS says the
| Public Ledger of October l. The liabilities about
ST. 300 000 the stated The number of depos
tors is 000 mostly tradesmen and shopkecpers
Now suppose 'Kellcy's three sixty five bl' had been
in operation the people could have invested their money
in three five United States bond and would have
been get their money principal and interest at
/ any time on demand As for wages, did workingmen
complain Of their wages during the and the few
years of ample currency that followedl think they
4 and business generally, and farmers too, would
cheerfuly such times again when all made money.
| Now the rich grow richer and the rest starve.
WENDELL PHILLIPS.
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