The New York herald., 1875-10-09
The Imitation Letter OF Wendell
Phillips Answered
tALLACIES or THE SILVER -TONGUED ORATOR.
Aliens Ignorance and Phillips
Sophistry Revealed.
EUROPEAN ILLUSTRATIONS PERVERTED.


he letter Of Wendell Philips recently published in se
SEW YoRK HERALD:-
ST. LOUIS, Oct g. 1878
20 EDITOR or THE CINCINNATI COMMERCIAL
DEAR SR-Last night returned from Ohio and
Sound your despatch intmating desire that should
promptly reply to the letter OF Mr. Wendell Phillips
published in the NEW York HERALD Of October 6
have just read that letter. and consider scarcely
sssary that should answer it. Stin If you desire
Ell devote a few hours to the task
Mr. Philips is not known a elegant writer, but
he of his letter is aippantly offensive small
md supercous in personal attack, that should lave
inclined to consider il hoax had found in il
fair collection of those crudtics and startling msap-
prehensions OF principles and facts distinguishing all
Mr. Phillips productions on the subject Of finance
Will take up seriGtim the four points Of my speech
which Mr. Phillips attempts to disprove.
First, quote the following passage from Governor
Aliens speech at Maretta:--''These men, meaning
his opponents, Ego about and cry there is too much
money this country wish 70 God we could find
some OF it. uaughter.l They say it is in the banks
Ish2 1t might just well for the purposes Of money
and currency be in the bottom OF the Pacific Ocean
Tor if is in circulation II is more money than
80 many corn stalks would be. To be money
d must circulate as medium for carrying
pm the exchanges Of the country" Then proceeded
by quoting the fact that overwhelming majority
b the business transactions Of the country effected
by the transfer Of bank accounts through checks,
notes and bills OF exchange that in fact the crcula
lion OF money takes place mostly through the banks
to show the brilliant nonsense of Governor Aliens
statements Mr. Phillips tells US that he and Governor
Allen Of those facts. II they were could
they still be guilty Of glarng absurity as that
money in bank might just as well, for the purposes
Of money and currency, be at the bottom OF the
Pacific Ocean, Although have never been an ad-
mrer of Mr. Phillips financial theories yet always
considered
II he insists on stepping down TO Governor Aliens
level be IL so But here Is something still more Gu
rious Mr. Phillips says the very fact that large
proportion of the business transactions of the country
effected by of checks notes and bills through
the banks is the Of their gravest charges
against present system OF finance He argues that
checks and bills of exchange performing
the functions of currency, the banks are able at
will to initiate and contract the currency and he and
his friends break this 'saristocracy Of money
manufacture" by introducing their system OF green
backs and nconvertbe bonds which he says will leave
tins power Of imitation and contraction in the hands Of
the whole mass Of business men. There is 80 mon
strous accumulation OF absurdities in this PROPOSE
ton that scarcely know where TO begin and where to
end in dssecting them.
WHAT BUSINESS MEN DO
Who is II that draw checks and make notes and bills
pf exchange? Who creates that kind Of currency which
consists in checks, notes and bills, and who causes
that contraction and imitation OF which Mr.. Phillips
speaks9 IL is not done by the banks but IT is done by
that 'whole mass OF the business men, TO whom
Mr.. Phillips speaks OF giving that power, as If they
now were deprived Of it. If the business
did not do 1t under our present sys-
III n.
Phillips does not know this the smallest clerk in dry
goods shop give him some useful Information
The subject. Can Mr. Phillips be in earnest when he
gives understand that he and his party want TO
abolish this systemf Does he really mean anything
when he says 'We mean TO have more greenbacks and
less checksl L. he utterly ignorant not to know
that the check the note and the bill of exchange,
they pass through the bank constitute the very agency
which by almost infinitely increasing the efficiency
Of the greenbacks any other sort Of
rency, enables that currency to satisfy
the requirements of business, and that without
tha vnfn
business transactions could not be carried at all In
The year 1873 according TO clearing house records,
checks, bills Of exchange and notes passed 10 the
amount Of S33 600 o00 600 in New York alone in max
Ing purchases and payments, and Mr.. Phillips wants 10
put in the place OF that medium OF exchange enecting
such gigantic transactions hs system OF greenbacks
and interconvertibe bonds Wipe out these facilities
which the genius Of modern civilization has developed
and reduce the immeasurable compass and
The endless variety of business transactions
70 the actual handing from hand TO hand Of green
backG Mr. Phillips pretends to be q OF progress.
barbarsm2 Or does he want to facilitate those business
transactions with his system Of interconvertiDe
bondsY II so, how2 As ! understand the systematic
peculiar claims Of which to discuss length at
another time-the nterconvertible bonds to be
gwen by the government TO those who deposit currency
ln the Treasury and 70 be exchanged for currency
again, the option Of the holder Now is the govern
ment TO discount notes and sell bills Of exchange and
accommodate private business with time oansr Is that
A CHILDISH CONCEPTION
Mr. Philips affects 10 look down upon me with
sondcscensiOn only o native Of Germany He was
born in this country and lives Of the finest com
ercia cities OF the Union but has he the aintest con.
reption Of what is gong in the busy life around
him2 II be has he would himself enjoy hearty laugh
Al the idea Of supplanting our system Of
with his system Of greenbacks and intercon
sertibe bonds he would understand that such a
substitution, even II We multiplied greenbacks
80 much, would produce 80 serious contraction to
trng the business Of the country almost absolute
standstiiL Tie conception 50 utterly childish that
We wonder how y could have arisen IN the brain OF
OF only average good this nineteenth cen
tury. So much for the lrst point
FAcTs PROM THE
SecoHd-Mr Philips impugns my statement or
rather the doctrine Of every respectable economist the
world over that the expansion OF an lrredeemable
paper currency win result in It's depreclation He
Bays-Suppose double the real currency lrneaning
EreenbacksD will that OF Itself necessarily increase
prices, aud especially the price or goldfn
and then he proceeds 70 quote Mr. Carey
10 show that during the the premium
gold went up or down irrespective OF the
quantity Of the paper currency issue During the
Of course IL did. Mr. Phillips seems to ignore the first
principles governing the value Of an irredeemable
paper currency consisting Of government promises
pay That value VIII be affected by two things the
credit Of the government issuing II and the relation
the volume or the currency bears 10 the requirements
Of the business OF the country. What is IL the
credit Of the government depends upon2 It's
honest intention 10 redeem its pledges aud
lis present or prospective ability to do 50. As
10 the former there was no question, but as TO
tie latter the vcissitudes Of the war produced from
time 70 time serious doubts II Mr. Philips does not
know the effect the history Of the will inform him
He will 8nd that battle lost and every period
y uscuuragefneut ~ the stabdst OF operatohs raised
lie premium o. gold, aud that every battle we won
lower u, Until finally. the surrender Of Lee and the
ena ~ I've brought IL down at
TREMENDOUS hJlas although the quantity
y the cp,trbLs Il circulation had been
siminshed, every -riiai,r man, understanding tho
reason VII moi hlt iilE .gprsng Ii is surprising
pnly that any man pretending 70 good sense should have
W be informed q thnt rea4un. But can Mr. Phillips
really Oe ~ earnest when he declares the expansion Of
Al irredeemable currency viii, Of necessity act upon
Hs value to gold reduce generally its purchas-
ng power as soon A. The volume 0 such currency ex.
leeds the amount which would circulate "a gold
tnd notes convertible into gOld2 Can lie not
understand that the dishonored promises 70 pav or
government must necessarily lose value The greater
heir amount and less the probability OF their redernn
aonY Assuming his own tone of argument would III
iorm him that there s a country catled tho United
States, which once had an rredeemabe paper currency
ta.lled Continental money which increased ~ nnan
sly until II shrunk in value 10 nothing
AsslGNArs.
There is a country called France which had an ira
IccmaDle money called "Assignats which became ~
,lentv that a bushe Of ii would not buy a potato