New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-09-20

rollapsei IL the withdrawal of the legal-tcnde
notes was the cause of the present depression, how
happened it that this unprecedented advance in the
prices Of iron occurred after the contraction COM
planned of had taken placef Does not the history of
the iron trade in the United States concusively
Sute the statements and arguments, If arguments
they can be called of the inaationistsi l submit
that this should be regarded test.
THE WORLDS CURRENCY.
Was there any depression in prices or business,
which could fairly be attributed TO contraction
Was there in fact, any depression, while it was in
progressi On the contrary. did not the prices
greatly advance after the Withdrawal of the legal
tenders had taken place. and did not the collapse
occur when the volume Of currency fun The
question of the currency is of vast Importance
of such Importance that all ordinary political ques
t0ns in comparison with it, sink into insgnifcance
ii ought to I've dealt with fairly for the welfare of
40O00,000 of people depends upon the proper sou-
sion of it. Nothing to my mind is more certain than
that our financial embarrassments and industrial
prOstraton chiefly attributable, not to a scarcity
nut TO plethora of paper money, which gave birth
10 speculative enterprise and expanded credits
tempted counties and cities to run hecdlessly into
debt and became the fruitful cause Of extravaganza
and wastefulness among all classes of our people
In the Report of the Secretary of the Treasury for
1866 may be found the following remarks:
There being but one universally recognized meas
nre of value, and that being value in ITSELF cost,
ing what It represents in the labor which IL required
u obtain it. the nation that adopts, either from
choice OF temporary necessity an inferior standard
violates the financial law OF the world ana newt,
ahlH suffers for its violation. An lIrcdtelnaole, ana
consequently deprecated currency, drives out OF
circulation the currency superior 10 itself: and II
made hy law a legal tender, while its real value is
not thereby enhanced II becomes false ana de-
moralZinc standard, under the influences of winch
prices advance in a ratio diSpToportoned even 10 its
actual depreciation. Very different from TINS Is
that gradual healthy and general advance of prices
* he
metals The coin which Is obtained III the gold
and silver producing districts although 1t
Gr>t affects prices within such districts, following
the of trade, and III obedience 70 lts laws,
soon fnd> H. way To- other countries. and becomes Il
Iart of the common stock of the nations. which. IN
cieaSiug in amount by the regular product OF the
5nuc>. aud ui activity by the growing demiH'S OF
commerce. advances the price OF labor ana CON
,nnfiticS throughout the commercial world. Thus
the products of the American, Australian. aud Rus
sian mines TEND, first, 10 advance prices IN thelr
respective localities, but ih' operation vi nauc
sonu dis, i'rtcs them, and enterprise every where
feels ANA responds TO Inc increase oi 'Ie w
vcr,il mc '>urc OF NaIu'' All lhlS u h'1llli-
fat. ic,!u-r slow, permanent, ana uhNIrSli.
The com produced III any country VIII be
retained t'ctc no longer ti"i us pr"duci"lS anu
SIZES N.rp the balance of TRADE In ~ favor As soon
n It ncoomr> cheaper If tins wGld can he prop
rll, used .u regard 10 the standard Of vaiuc III the
cointrt loo which il j. produCcd than IN other aces
s, counii.> rather when u " i'll purchase more
in m i, countries adding interest tire cost of tr;.rS-
pur;atiui ald other necessary EXPRESSES Than IN that
in which 10 is produced CT when il l. required Ia pay
balances to other countries. IL flows 10 them nv
90
althos Ere precious me als arr pl'"iuccd. IN cosi-
ciahr quantities. IN but few countries. they
al. e. pi',> IA ai. Not -" WIN "a paper tiIeh'N'
which j. local Ia i'll u~c aud IA H. influence
Il. ad .;u.'acc~. when tUuN'uthlr. alc adlnit'd;
f"r .Tti1lr. although H. >Ncil~ ia" volume 81
Ul,Jlai9H II amer H'i'dN, e"'erpi'Ne ln a
price, II couN"rihtN prevents cNpan>l"n. while
y, %! GER volume GlEr> impetus J." '"'' anu ci'"'>
gl..t,i demand lot lahol. l'nI Nh'H Il paper cur
r.nc, j. an ucou\c lilh.c currency. aud c>pcrlHlN
whoa. l.'uc SIT. it !, made by the >"N reign poN@
lce3l Gender. "a become n"'lEr of m>rlnrl. Ihcn
specie ncro'u.> dcm0nctiI,d ana trade l. uncertain
IN Jas results. h.,liI>t tie" bass i- Hi,uatng: then
piicc~ 1',,anoc - tie volume of currency mrna>c'
and ,t.ui... as they Advance. imth"r additions
- ih. circulating mcdluin; then >pcculI-
lion b.,r..r> life. aud "thr frw asc
en,j.i. a: tine expense of the many :"
thrl indu>rr declines, and cNir1' a@Wrr Is wanioh;
thlr Ni', di'ninntion of m"ino'>. and con.c-
aintiv az r,.srtr There X au increase al imports
aud hi.hr, amin, Icquited on account al IN"
grl~a .\pau,ion To- which thcy, IN their tnrn give
nea ,tiUlu.u~ and support. While ia" protection IN
t,.,d,I a. b given hl them L" nome industry l., ~
au.:u .n,.,,iu.. rendered imperative ny the "Ai"h-
.slHh.
Ir ,ica oc What has happened since then. | ask ii
tl-,. remark, were not timely and tn'"'
loss ui BUSINESS Co>IpTNCF.
submit that with the exception of ofcr-Ir"du'-
ton 81" " hirh referred III my !a> letter IA" eN-
listing rIn,traion of bUsne>- ANA enterprise III the
United STATES. the want Of nerve the lack of re-
cumulative prwcr. which are every where n"l"eahe.
and via. 81. az, 50 unusual ia The American character
attributable to the excess and uncertain value of
without q reduction of the volume of it, can give
siuhil;ty: - circulating medium which j. not only
affected by ihr importation or "Nportatlon "i COM
huf which y raised or depressed IN price Ivy gam
bling conhinai IONS. Not only can capitalists by
becoming spccuai Ors put up oI put down the price
OF gold. which means advancing 81 depressing the
value ot currency for after all that may he said II
~ gold that cgulaes the value 0l tie cnrIth'El'
out the property and business OF our great country
null al !
NOT this which j. destroying cODfd|"ce which j. the
ro,,.urinp of business vitality! With what safety
~an men embark III enterprises that look To the
future for results when they cannot predict with
any degree of certainty what VIII be me Nalur OIL
IcV.l-cud,r notes year or Two years hcnceT 10"
can any man venture engage. IN any far reaching
business. while the currency npon when ms 1lahS-
action, i" based. is constantly changing in value
Tspecialv now can he risk the FIXTURE, when the cur
,,nov nov, greatly deprecated. may be still more
,c,recia.cd 10y further issue, : II Is uncertainty
In regard 10 the future Or the cTrt"cG that Is
i.troyiuo cogfdcnoc, and without a Testora-
4io, of confidence there VIII lie no improve
,,ent in our financial ard industrial centurion.
What healthy and reliable business requires Is
atobic bqxi, Let Of capital and enterprise leel
that there i. 10 be stability in the legal measure OF
value LET II he understood that the higher Ia"
which make, cold and silver The only true measure
i. hereafter to lie recognized and o"eyed ana TIC
existing lrthargy will disappear ana the country
begin rapidlv from IFS pI"strallon IL u
very clear ihtn, that the remedy We are seeking Is
,ot Ia D.. found in the maintenance Of the present
volume of rredeemabe paper money-inost aSSni-
-sly not in an increase OF H.
Other proposed policies for betterlng our condition
-slII be considered in my next.