The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-10-09
WHEELING WEST VA, SATURDAY MORNING. OCTOBER g. 1875

over-speculation and over.straining OF the
credit system which is always to be ex-
cited by an abundance of money not the
product Of labor and industry, and the
business stringency is now brought on by
sweeping change in the monetary sys.
tenn Of the country, What can Mr.,
Phillips make out Of this fact
for his argument? Or will he perhaps
pretend that the business crisis in Ger
many would not have occurred had the
currency Of that country been irredeema-
bic paper instead OF specie? / suppose
there must be some limit to human folly,
Now, as to France: What is it that
has produced her present condition Of
prosperity? Certainly not the supply Of
more money; for as soon Us the war bills
were paid France began sharp contrac.
ton Of her irredeemable currency, with
set purpose as quickly rs possible to
return to the same system OF specie pay
ments which Mr.. Phillips wants to run
away from, and under that contraction a
strong effort was made by the people to
repair their disasters by we'll directed in
dustry. II ii is the beneficial influence
OF more money that Mr.. Phillips wants
to demonstrate, he has been strikingly
unfortunate in his illustration-OnO
country suffering from severe business
depression after an expansion, and an
other country in condition Of growing
prosperity during sharp contraction Of
the currency. 1t seems the suggestion
would be in order that Mr.. Phillips might
enlighten his judgment by taking trip
to Europe. So much for the third point.
Finally, fourth-Mr. Phillips attacks
my assertion that mo other syStem than
specie payments will remove the current
values from the arbitrary power Of the
government. No other can give to cur
rent values that stability without which
no safe business calculations Gun be made.
No other can restore that confidence
which Is the first prerequisite Of new
period Of prosperity. Mr.. Phillips, with an
air of triumph points to the panics which
from time to time have occurred In specie
paying countries, to show that confidence
does not necessarily aud always accom-
pany the specie system. Who asserts
anything Of the kind? Not /. But what
| do say il, that the confidence which we
need to induce the capitalist to trust his
money into the hands Of enterprise will
mot grow up again as long "a the volume
Of the currency Of the country Is at the
arbitrary mercy Of Congress, whose reso.
lutiOns may at any time change all the
current values OF the country, thus cross.
ing the most sensible business calculation
and battling the aculest foresight. Con.
lidenCG will not return ns long as the
prospect that the wild schemes Of dema.
goglies and visiOnarics may obtain con.
troll OF our national finances hangs over
the business world like threatening
storm cloud. demonstrated by the his.
tory Of the crisis in this country In 1887
and 1857 that business did not revive
and prosperity did not recover until
by tho elimination OF the element Of iluc.
LualiOn and uncertainty from the cur.
renCy, and by the restoration Of sound
money system based on specie basis the
business man was made TO feel the safe
and firm ground again under his feet.
This il what said, and | find in Mr..
PHILLIPS letter not even m attempt to
contrOvert IL. Indeed he need only look
around in the business world to find the
amplest proof for my assertions. The
paniCs which occurred in specie paying
times fOrm fayOrite argument OF inIla.
tionists, and | know rs well as others that
they return ut almost regular intervals,
and that no monetary system has been in.
vented to prevent them. But when from
their periodical recurrence the influence
Is drawn that the specie system is worth
nothing because 1t does not prevent
panics, il il as wise to say that good
health Is worth nothing because II is
sometimes interrupted by sickness. The
innationists are also fond Of telling uS
that such panics lead sometimes to a
suspension Of specie payments by the
banks. This il true as TO this country;
but when Mr.. Phillips informs us that
again and again in English specie basis
history the permission given by the Gov
ernmenL to the banks TO suspend specie |
payments has been the salvation OF the
country, he betrays either the grossest
Ignorance Of financial history or de.
plOrable disregard Of truth. In charity
VIC must accept the former. Every we'll
informed man knows that since the re.
sumption Of specie payments In 1921 spe.
Gle payments have never been suspended
again in England. Mr.. Phillips, in his
evidently somewhat careless reading,
found that now and then in times Of
panic something was suspended, and he
Jumped to the conclusion that II was spe.
Gle payments. It Is perhaps we'll 10 In.
form him that, instead Of the suspension
OF specie payments, II was the suspension
Of the Bank Act Of 1913, authorizing the |
Bank Of England TO issue notes beyond the |
amount Of specie payments prescribed by |
law. Permission has been given several
times, but specie payments steadily con.
tinued all the while. It Is urgently re-
commended to Mr.. Phillips 10 commence
his historical reading at the beginning.
Mr.. Phillips talk impngning my talk |
that specie basis will give stability to |
the current values, and his assertion
that during our rebellion gold rose
in price moro than any article Of mer.
ChnndisC except cotton, assuming that our
currency was really the fixed
and firm standard Of values, scarcely de.
serves notice.
As Mr.. Phillips is fond Of quoting John
Stuart Mill, would refer him to the fol.
lowing concerning the stability Of the |
value Of precious metals: ain order that
the value Of currency may be secure
from being altered by design, and may be
as liable to iluctuation from accident. The |
articles least liable Of all known COM
to vary in their values-the |
precious metals-have been made in all
civilized countries the standard Of vnluc
for n circulating medium, and no pa
per currency ought to exist Of which the |
value cannot be made to conform to |
theirs" political Economy, page 81, Vol |
II). Instead Of this Mr.. Phillips says we
need real basis, that Is the country, the |
sovereignty Of the people, the wealth Of |
our country, not sham like this pre-.
tense Of specie. About this outburst Of fine |
frenzy the New York Tribune in M article |
on Mr. Phillips letter, which / have re-
reived this ismoment,is cruel enough to sny
'that IL ia the sort Of talk that makes
The citizens think thcreisa lunitic asylum
in the neighhorhood, and that somebody |
has escapedw Using n mildcr expression
would say this is one Of the ecccntrici-
IL. Z II, .-isat, ,.. .,..,....,.... fill.