New-York tribune., 1875-10-09
THE CURRENCY.
Continued from pifth PAGE.


country in 337 and 1857 that business did not revive
and did not until by The elimination OF
the OF iuctuation and uncertainty consisting IN
unsafe currency and by the restoration Oh souiu
money system based specie, business Was nae 'o ee
safe and firm ground under its feet This Is What
I said. and 1 find in Mr.. Phillpss Itt'er
not even an attempt to controyert IT, lndeeu
he need only look around ia the business
world find the smplest proof for my assertion Inc
panics which occurred IN specie paying uhos Ior'n
favOrite argument of the nationsts know ~ "eh a.
o hers that they return at almost regular intervals ana
that monetary system has been invented 10 Pe'o"'
them But when from their periodical recurrence the
inference drawn that the specie system u worth hotn
ing because It not prevent panics 1t il ~ wise W
say that good health IL worth nothing because II '"
times interrupted by sickness.
The nfatonsts are also fond OF telling us 'ha' '"'n
panics lead sometimes to a suspension Oh Speci' pay
Wens by the baG-. This IA true as I" TINS country ~
when Mr. Phillips informs that again and again IN
specebasis English history. the permission gwen ny o
Government to the bank 10 suspend specie P"' "-'
has been the salvation Of the business o"hl"ni'',
be earingy bctrays the grossest ignorance vi
financial history or q deporabe disregard oi me u"'h'
In charity. ". accept the former Every wen
informed man know that since the resumption of specie
payments In 1891 specie payments have never preh
suspended again IN England. Mr. Phiilp7' III us o'i
IDENTIFY somewhat careless reading. found tha no" ali"
then times Of panic something was suspended anu no
jumped at the conclusion thht II "N' 'P'
payments II is perhaps well TO INFORM
him that instead OF the suspension oi
specie payment IL was the suspension OF the BANK ''
"A. authorizing the Bank OF England To ISSUE n''
beyond the Of specie reserve prescribed ny INV"
That permission has been given several times pu' Hle
payments steadily continued all the while 1t urgently
recommended to Mr.. Phillips 20 commence us '''"
reading al the beginning.
TliE REAL BASIS OF VALUES.
Mr. Phins's talk. impugning my talk, that specie |
basis will give stability to current values ana lis 'oi
ton that during rebellion gold rose IN price n'o'
tlan any other article OF merchandise. except e"''ou
assuming that our iuctuang paper currency was really
the xcd and standard Of values. scarcely deserves
notice Mr. phillips Is fond of quoting John stuart MIL
would refer him the following concerning tl' 81"
by value OF the precious metals
In order that tho value Of currency may be secure
being altered by design, and may he IA NIUE ~ , a..
ianle huctuaon from accident ths arl,'s @ In,' t5
ns " ail known commodte- 10 yary IN ] ,irI ni,srs
the standard value i1r the circulating medium P ann nS
paper rency ought Ia exist Of whcn tGe Nal'r ann" &
br made conform To them. P"hcal ECONOMY Pds' /
~, volume -
Instead Of yhis Mr.. Philips says I'VE a'ei ra' !
isis that country, the sovereignty of the pe"pr'
the wealth of our country sham ike this prelri7e
OF specie
About TN. outburst " fine frenzy THB NE"-foRh |
TmbrSE in an article Mr Phiihps's letter
which have received thIs moment ia cfu'l
enough 70 say That's the OF taH that makes th'
think there's lunatic asylum III VIC h'lE'o'
hood and somebody has escaped" Uring nllder e1- !
preston would -ay this is OF the eccenrcit'es "i
,.uu. which we common folk, Lot Away, capable ~
Ipprehendi1g.
SHALL WE FOLLOW FRH>cn EXANPiL'
But there Is one passage real value in Sr Phillips
letter Ia which subscribe with all my heart
Ig,tc1d of this hairspittins Of old theories praclca
,tatasmanshp the wisdom of experience learns rOn
war pulley profits by the glorious example FIanc
SEES H., aud by all modern AptdlclS NeJtIs nd
spindle .eanl-cnge al pouring content aDd
pcnty through our channels. IL di'Llhs ~ Iauc
tid. 10 weld uumanly fear ana shrek "Noh.
wolf! from the watcn-towcr, but, Win the cslr- Oi
Victory and Forward fiom thc hrad o' thr Lihs,
pours confidence int" eNery hyar 'hd makes "e '"'c''s
prophecy.
Now let Us SEE what France il doing. The note circu
l,ton Of tho Bank of France. which constitutes the
irie,ecnabie currency OF that country, reached IT.
maximum on oct. y. 1873 when 1t was BOIL |
ODn 600 france or >6Ii2O0.OO0. That circu'G-
ton has been steadily reduced 10 2.36lSl92sj
franc, or Si72 100000 which point reached sept -
ls7i There was then net reauction Of the paper cur
rency in than two oG Sill 7OOooo THIS vas
on. to eff ct the full resumption of specie payments by
the bank on the January 1875 In the mean time
tb. French people. instead OF crying FOR more
money IN the shape Ot dishonorabc promises % pay
devoted themselves the production of real values, by
sturdy work and frugal industry Thus they have en-
tered upon new period ~ prosperity. under td very
policy " contraction which hl- Ut Philips WIN 50
much horror: ard IL Mr Phillips should pro
pose 10 their National Assembly 70 substitute
for thai policy hs system Of grccn'acas and inter
conryerriie bonds he would simply be- laughed out oi
court But II llr. Phillips wants the United states to
follow tne example Of France, gay Alnrn 1t is 10 bp
leared however that Mr Phillips has given good advice
rather by iynorancc than by de~isii
SERIOUS MISCHIEF or INFATfnN TALK.
Such er1rlions A. this letter Of Mr Phillips are.
should Think rendered harmless by their absurdy but.
especially wh, addressed - tIc laboring classes the!
are calculated do serious mischief Reading sGei
things listening 10 speeches Of the same sort ey arc
ant to receive the impression that hey have no interest IA
common with the OF society; that there are some
artificial contryanccs by which lhcI special prosperity
A. class can b. promoted outside OF the ways Of produc-
tive Industry and that they may expect more from fa
c,l tricks than from the earnings Of honest labor Ho"
mlsrhicyo- such teachings axe appears ifom the taci
that 50 many abcring have been 'cduccd into the
support of the imitation policy. which their own good
rsc should show have been specially nFcutcd
+, opprcs. the laboring himself. Oy robhug him |
of the fruit OF Lis labor and the 'alue OF his |
ings by currency depreciation and o ms Tor the
benefit of the gambler and Spectator But still greater
mischief may done by this reckless agitation II such
doctrines should pres all. and imitation should become
r declared pocJ OF tho Government, 1t IS not only
.;l,e but probable that world Will repudI
on behind II all and that the alarm or our creditors
will aool the market with he bonds Of our Government
aud nj our private corpOrs'i"u in such quantity rs 70
b,1ng on another financial crash. more d1struct-
i've and . business piitNHi' AH'iV "''"' '"'"
any we have yet experienced. At any rate
f Mr. Phillips or any Of MS pupils were to regulate our
finances: -upplant banks and Lills aui notes aud
check, with his system Of grcrnbacks anu m'onvcti-
le bnnds plscn. the whole thing upon the real basis
thai 49, the country. the sovereignty Of the people the
wealth Of the county-then Ipprchend our business
men would quickly have TO shut up their
hops try 70 escape from ts grand Dedlam. ana look for
oue other place where people are still oldiashoncd
enonrh to believe that two ana two make four.