Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1875-12-04

From the New York Mercantile Journal.
AN OPEN LETTER FROM Mr.. PLINl
FREEMAN TO THE SECRETARY
OF THE TREASURY.
Hon. BENZ. H. BR1srow, SEcRErAR,
OF THE TREASURY.
HoNoRED SIR: A former Secretar,
of the Treasury, now citizen of 1
foreign monarchy, through "open let
ters is engaged in lecturing the citi
zens of the United States on the sub
ject of the National Finances, and at.
tempting to persuade them that the
policy which he inaugurated and put
in practice, to such an extent as to
bankrupt and impoverish large part
of our business men, and render our
Government largely tributary to the
moneyed Powers of Europe, is the
best policy for them to continue to pur-
sue. Of the disastrous results of his
policy, witness single illustration,
taken from the Mercantile Register OF
Messrs. Dun, Barlow & Co: The
number of merchants who became
bankrupt in 1863 (about year before
he became Secretary was 485, and for
nine months of the present year the
number has swollen to 1894; while
the liabilities, which 10 1863 were six
million eight hundred thousand dollars
81, ,800, 600, during nine months ofthis
year had swollen to one hundred and
thirty-one million dollars (S131, ,000,-
000); which. for the whole year, would
make about t,oenty-foar times the
amount of 1853, which is an increase
of his victims of eleven hundred per
cent, and he is not satisfied with this.
but would sink us to still lower deep.
l take the liberty of following Ills
example, to the extent of respectfully
submitting to you, sir, an ''open letter"
on the same subject.
As financial representative of our
Government, to whom is entrusted the
keys of the national exchequer, and on
whom more or less depends the desti
nies of our people for veal or for woe,
l would respectfully invite your exam
ination and consideration of what is
termed the Interconvertible system !;
which, if you please, we will call the
American system of finance. In order
to arrive at just decision, [ would
respectfully request that all precOn-
ceived theorles-as far as practicable
be laid aside, and the subject examin-
ed ON its merits.
1t is claimed that the Government
paper money, made a full legal tender
for all monetary purposes, convertible
into interest-bearlng bonds at the op-
ton of the holder, said bonds being
recoverable into said legal tender
money, with accrued interest, at the
same option, would be perfect solu-
ton of the financial question. That
when esta blished, gold and said legal
tender money would be on par, and
thenceforth that both imitation and
contraction would be practically i'm
possibilities.
1t is also claimed that the above pro-
positions have all been demonstrated
and actually put in practice.
LIST, That gold and legal tender pa
per would be on par, was demonstra-
ted by the fact that what were termed
!" Demand Notes of which sixty
millions were issued, and receivable
for duties on imports-continued on
par with gold until all were absorbed
at the Custom House. That fact, it is
claimed, proves cenclssHely that if
Greenbacks had been received for du-
ties on imports, being thus made full
legal tender tender, gold could never
have risen above par.
End, That a free issue of paper
money cannot produce initiation when
convertible into bonds bearing inter
est, was demonstrated by the fact that,
when greenbaeks were first issued and
convertible at the option of the hold
er into $40 bonds, bearing 6 per cent.
interest, during the sixteen months the
convertible law existed there was neith-
er imitation nor expansion. but a steady
uniformity in prices and values never
before known. This, it is claimed, was
demonstration and proofpOsitive that
yhen paper money is convertible into
beads, imitation is impossible. For,
should said paper money be issued IN
excess ef the wants of business, such
excess gosld reduce the ruling rates
of interest to the Government stand
ard, when all,exeess would return to
the Treasury for its bonds and restore
the equilibrium.
Bird, That while bonds or certificates
of debt, bearing interest, are issued,
into legal tender paper,
panics or financial revulsioHs cannot
be produced, was demonstrated during
the time the Treasury received money
'Spesited under the temporary loan
c,s apd issued, therefor, bonds or
erti, Nes&es virtually payable, with ac-
rnad VaeEest, on demand. For dur
no a ,Lat Vne no panic did occur, al
honah at :, We time the Bank of Eng
anS drsw e. W Mallstreet 30 millions
+ cold ;n az a. m Say,days, causing great
xc,tement and Sse of interest, 'sRhen
he s convars;on anu a. few millions in GER
lficates relieved theL %sey .:I;tr: anA' AZ A.
gain restored the e. %titofiGm' a.
mother time, and before ~ wd AZ P
ifcally authorized by la. V ~.
'ulloch withdrew FIFTY IN. 'ch II
reenbacks from New York, Which
aused sudden rise in the rate gu
crest, when again the conversion O.
,w millions into certificates relieved tn
larket. These are claimed as demon
IratiOn and positive proof that when
he " American System of Finance 3" is
dopted, panics and revolutions can
either exist nor be produced
Should combinations or rings be
,rmed and raise the rate of interest
bove the Government standard, its |
onds would be Immediately returned
nd converted into Government cur
ency in sufficient amounts to reduce
ne interest to Government standard,
nd again restore the equilibrium, and
nus establish a self-acting regulator
hat no combination of circumstances
ould ever seriously disturb. Like the |
ed of the ocean. it will remain un-
lOved although storms may disturb
IS surface, its bed, never!
1t is claimed that the Interconverti-
lie (American) System of Finance will
e found as impregnable as the rock
f ages, and that it embraces a great,
n eternal, truth
4th, 1t is claimed that when Gov
rnment issues are received for duties !
n imports and madea full legal ten
er and interconvertible with bonds
earring interest, gold will be on a par /
nth said issue-provided the same |!
ct requires the Secretary of the Treas
Try to dispose of bonds in Europe :
ot in Ameriea-to provide coin to de-
ray the interest on the bonds now in .
europe, and also Oh the bonds remain /
ng here. Then, as there will no further !