The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-03
OUR NATIONAL CURRENCY.
NEW Yong. Sept. 80. 1875.

condition and revival Of the commercial, industrial
and material interests ofthe country
In the present state of the nation il is in the highest
degree essential that correct views should be presented
TO the people in order contribute sound opinion
dspe the sophisres Of those who would mislead them
in regard TO paper money and 70 the dangerous illusion
that Irrational debt is a national blessing"
The dissemination Of truth will do much in the com
ing Congress to aid in the Of such just laws
viii afford the best and most permanent relief
country. have no higher ambition than to unite in
such laudable efforts We have passed through great
revolution and the result Of that revolution Is still in
progress.
The changes demanding public attention integrity
In political positions-on this point all agreed except
those who held together by the cohesive power Of
public cumberland also economy in the administra-
ton Of public affairs As the people learning the
hard lessons Of retrenchment and selfdenal
must they exact from those holding Official
places tho rigid economy. But, above
all existing issues, the present embarrassment
OF financial and commercial interests demands
rous and profound attention Capital lies idle in the
vaults of the banks and is offered lower OF in
terest than at any other period in the history OF this
continent, while multitudes of men and women, to an
extent also hitherto unparalleled, presenting that
'saddest sight earth Of being able and anxious 10
work, but unable to find work to do
The people vitality interested in a return to
specie basis The paper they receive for services
daily toll and general business purposes is worth only
eighynye cents on the dollar through its depreciation
TO that extent below gold value, which they pay for
nearly all the articles required for daily use and by
expansion of the CURRENCY will be further lessened in
! value, No sophistry long deludc them while
viglan press penetraes the remoes part OF the
try, into belief that deprecated and inconyortble
money is the best currency.
The rebellion procipitated on the country unex-
pectedly TO the party in power. who slow and
unwilling to comprehend its magnitude. While the
North believed that the crisis would rapidly pass over
the South mistakenly supposed the North would yield
TO its demands The battle of Bull Run, when the
capital itself endangered in part dissolved the u
sion both sides but the financial errors which had
taken root destined to be worked out TO their
! logical results.
To understand the ature of the disease now nrevia6
upon the vitas OF the country must refer to Its
origin and trace its progress in the light thrown upon
| it by the decisive lessons of the past. At the
extra session Of Congress in July, 1861, 1t was
simply indicated that, in view of the expected
brief duration Of the war, the government would make
loan OF $3.50 600 900 in gold from the banks of New
York, Boston and Philadelphia Before the 18th OF
November, in the same year, they had actually adj
vanced SAG 900 900 in this FORM and their system was
aIter the part OF loan had been
nearly quite paid the gold and silver in the banks,
which had tho beginning been less than $50 600 600
$40 600 The specie for long time returned to
the banks in the ordinary course of business
Even in the beginning Of January, 1862, specie and
paper money yet remained Of equal value At that
date due sagacity and prudence would have prompted
the instant adoption Of system of adequate taxation
and other well considered and suitable pro-
viding for the expenditures OF the war; The govern
ment having by its own action
RANKS SUSPENSION,
authorized the 25th of February 1862 large issue
of illegal tender receivable ior all debts except du
ties imports and interest the public debt" In
these the distinction was for the first time in
history made by government between specie and its
paper in discreditng its own currency by recog
nzing its inferorty to the precious metals The gov
ernment having famed the fire of speculation by the
terms Of the original notes, which exchdngeabc for
United States six per cent bonds, withdrew this
right OF redemption after July l, 1868, and moro
anxious to produce seemingly low interest than
to protect the people against actual depreciation OF
the national securities, which reached the low
of IS cents the dollar, made nglorous and sui
cidal effort to raise loans at five per cent The cur
rency continued to be further inflated without any pro-
vision for converting it into interest bearing bonds
until by the Both OF June 1894 the natural fruits of
the mistaken policy became palpable to its advocates
Tie currency and other temporary loans amounted to
over S1,125 81 03l and at this crisis Mr. Chase, in
/ despair resigned the Secrctaryship of the Treasury
The administration having created market for gold
with constant supply and demand, through paying in
teres bonds in gold and refusing to receive its
notes in payment for duties on imports the Congress.
sonal majority, by joint resolution increased the pre-
viousy eXravagant duties to the amount OF fifty per cent
all articles, indscrminatey, for sixty three DAYS
ending with the 3oth of June, 1864. Gold rapidly
md ono mr.
ingy deprecated. Congress- alarmed passed aGold
hill approved June II, 1864 with the vain hope of
prohibiting time contracts for the sale of gold The
ll.adyscd step only added fuel to the flame. Its result
a temporary closing of the Gold Room, leaving pur-
chasers at the mercy of individual Dealers and next
mania of speculation, during which gold reached its
of2S5, the actual premium having more than
doubled within about two months.
The perniciOus effects OF these glazing violations Of
common sense and political economy so imme-
diatcy obvious that both acts were shortved the Gold
bill being repealed fifteen days after its passage.
Instead OF wantonly duting the currency and will
fully diminishing its value tempt purchasers
OF bonds floating the debt' nominaly at par but
really far below it, strong specie should have
been montaned and the paper dollar kept as nearly
1 possible at It's par value
necton Throughout her recent great her currency
never permitted to reach discount of over two
and half per cent whilo illegal tenderp Is yet at
discount ranging from twelve TO fifteen per cent
our government borrowed and dissipated the specie
/ held by che banks, and paid away its instead Of
keeping reserve, which would have Kept up the value
OF note circulation The Secretary OF the Treasury
with the oil reducing interest, caused immense
depreciation of the currency and brought upon us a
long train Of disasters His was the policy of selling
bonds at onehalf or onethrd Of "their face for the
| sake Of saving one per cent interest Compare
| this action with that Of France, who on the con.
/ trary arrested speculation by advancing the rate
1 of interest through her banks and Kept down
| prices thus encouraging exports and enabling her
people TO buy at fair prices Her financial policy was
the reverse OF ours aud the result propous
The practical example she gives is that BY means
Of an enlightened and moderately liberal commercial
policy, and by maintaining large of specie IN
/ 40 m liz
nconyertble paper currency to the amount OF over
$500 goo. Although, owing TO the unparalleled
natural wealth Of our country, the results OF defyng
the positive laws OF political economy long de-
laycd tho time necessarily when the specuaiion0
thus set aloat subjected to the inevitable test
Of realizing money from them. The administration
had transferred It's financial agencies TO who had
been foremost IN advocating It's sophstries The lead
ing and most trusted advisers and cooperators OF the
government in its financial affairs became the most