New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-07-09
UU4T rs INITiTION?

The other day, in the course OF an article on
the currency, we made the statement that the
authority Of every political economist of note
in Europc and America for the last two hundred
years, with the exception of Mr.. Henry c. Carey,
was opposed to irTedeemablc Government paper
money, and we showed that Mr.. Carey himself
as late as 1858 was Ill substantial accord
with the opponents of quack money. We call
our readers to attest that our remarks were
courteous and kindly. a few days aftcrward
we received from Mr.. Carey an ill-tcmpercd
letter, in which he said that he and his friend
Judge Kelley were no more intlatOnsts than
his Holiness the Pope was IA Mormon. As Mr..
Carey began his cpistle by mputing to us dis
position to treat him unfairly, and even di>hon-
cstly, and ended il by styling orr criticisms
lihclous. we declined to print his communication
in the shape it came to us, but offered to
print promptly any courteous letter he
might choose to send. His card having
since appeared in an iniation>t newspaper at
philadelphia, we have decided to present Il
fuller exposition of Mr.. Carey's opinions, not
in the spirit of controversy, but to prevent, if
possible, our Pennsylvania readers from being
misled by his authority, which is still consid-
cradle among them.
The illustrious philosopher Locke dcnoumces
it as ga plain cheat and abuse" to make the
same word stand sometimes for one thing and
sometimes for another. BY imitation most pco-
ple in this country understand an addition to
the volume of inconvertible grecnbacks, bank
notes, and fractional currency HOW ailoat. BY
initiation Mr. Carey Is pleased to understand
an increase of bank credits or DEPOSITS, to
which he is opposed unless accompanied by IA
co,rcspopding increase Of bank capital His
friend Judge Kelley, who, like Mr.. Carey him
self. is no more an inhat0nst than Plus iX.
il a Mormon, voted in the last Congress
in favor of a resolution setting forth
that "the true policy lies i'll the enact
"ment of such a law or laws as will supply
"the means necessary to the business wants
"of the country by increasing the circulating
"mcdiumr &c. (See TRIBUNE ALMANAC for
1875, pages 25-2SD Both Mr.. Carey and Mr..
Kelley are well-knOwn advocates of the duplex
paper money scheme of 3.G5 bonds and as
siqnafs, the bond being rcdecmablc in dssigHdts
and the assignat beng redcemablc in the
bonds, and neither having the most remote
connection with the precious metals. In rela-
ton to this 3.65 scheme, which we regard as
tending toward reputation by perpendicular
line. we call attention to three facts O) that
both the bonds and the dssignats would be- pure
paper money and nothing else; (2) that neither
Mr.. Carey nor Mr.. Kelley proposes any limit to
the issue of either, and (3) that by some UNI
explained process it is proposed to supply the
place of tr0- thirds of the gold bearing bonds
of the United States with these paper rags.
In 1898 the French Revolutionary Govern
ment called in and paid off the holders of its
funded Indebtedness, giving them fro-Hiris in
Treasury bonds or dSsignatS and one-third in
five per cent rentes. The bonds or dSsigRdts,
which were in no respect inferior in value to
Mr.. Kclley's proposed currency, Immediately
lost from 20 to so per cent of their former
value and soon after became utterly worthless.
What the French Government actually did,
with the consequences above stated, Mr.. Carey