The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-15

the most desirable, al that moment ali the banks
suspended payment, thus acknowledging themselves
insolvent, refused 20 loan any money the govern
ment although tempted ~ the then enormous interest
% seven aud three tvnths per cent and the ''hard
money and "honcst money" all became irreceemablc
and inCouvertible promises to pay OF broken banks
which boarded their gold IN their vaults invested il
abroad ia sterling exchange. Thus
DESERTED AND BETRAYED ny CAPITAL
the government its only resource for selrpreserva
act % February 25 1862 and issued its legal
notes money with which TO pay its soldiers their
lives purchase lis supplies, and conduct the war.
From that hour, during the whole war and
until long after the strength, power. credit and
stability Of the United States was assured
by Lcc's surrender at Appomattox not a single dollar
or gold silver subscribed paid by any banker
or capitalist IN America Europe for bond or the
United States How was Il in lS6l-62y Were there
not hundreds OF stores and warehouses unoccupied
Ships without freghts workshops closed and
worknon idle, and property had sunk twenty-five per
cent in value These were the direct consequences
OF financial system ffHndulently based on supposed
specie into which II promised this honcst money
should be converted on demand, although everybody
knew when this useless promise made, that there
was and could be but dollar in specie TO pay
i've which the banks promised 70 pay when they lent
out thor s'rag money! at usurious interest
From the hour OF the issue Of legal tender notes BUSH
everywhere sprang into active life Workmen
probably occupied that large bountles were
necessary 70 draw them into the army and Tor ten
years there no financial rcyusions, but period
OF universal prosperity succeeded To tins prosperity
no check came until administrative ana legislative az
tempts made TO compel return TO vicious sys-
OF supposed specie payments and so-calied mon
money which 50 mscraoy Jailed us at the nrst Of
the war Did not every honest man know there never
was and never will be any such thing as specie pay
mentsy why have $500, 0OO,0 900 OF currency, Tor
every dollar Of which the government is responsible,
either AZ promisor guarantor Now, all authori
ties agree that there only about ~ of gold
In circulation IN the world How can we got half OF u
here TO redeem circuationY And II We could, as
we have less than 81 600 in the treasury only
pledged to-day less than hundrcdth part enough to
redeem our circulation. when shall We get enoughr
Cicero said ''that he dad not SEQ how two Augurs
could look one the face when they met with
out laughing at thor mutual false prctcnces." How
can bulllonists shy 10 each other 'the country
must 10 specie payments without at least
broad griny When at last by the votes Of sixty odd
bank presidents and directors the Congress OF the
United states act has been forced upon the country
that shall return 70 specie payments on the ls day
Of January, 1872 apprehension Of the result OF this
disastrous brings about the same state Of
business oppression the same stoppage VI produeion
the idle ships, unireghtod coasters, unoccupcd
stores, foreciosinS mortgages and deprcclans real
estate that had In the winters Of 1861
and 1862 With these things before Us, would II
judicial blindness not 70 recognize the cause
and apply the remodyY The experiment with the legal
tender has been but partially tried In 1852 whom
greenbacks made fundablc into "A nvctwenty
bond tho interest was made payable In gold, and tho
major portion OF the pledged 10 be collected
In gold that interest The government there
fore refused to receive rs own legal tender money IN
the payment OF tho largest part Of is demands on iis
own people In other words the suggestion Of tho
banker tho government rcpudiatcd 1s own notes, IN
order that II he invested ia us bonds lac should DC pad
his interest at six per cent IA god nhouKh Inc chect
or such reputation that the legal tender notes
were deprecated than 100 per cent, and with
the banker bought up the bonds at little more than
one third OF their par value, and then
ELBCrED HIMSELF TO CONGRESS-
and voted that the bonds purchased should be paid at
their par value in gold More than ths, when he did
buy the bonds ut from thirty 10 forty cents the dol
lar he was permitted by the National Banking act 10
pledge them the government at ninety cents the
dollar and the government Endorsed has notes for that
amount and empowered him circulate them money
the time paid him six per cent interest on
the of the bond sixty per cent interest the
amount money actually left IN the Treasury by the
banker, II he paid the face Of his bond In green
backs and ono hundred and eighty lsO per cent inter-
est on his gold which he had boarded In his vaults
when his country needed IL IL many did be bought
his bond for thirty cents in gold
PALsIrY oF lizard Monty"
Every attempt to conduct the business Of q highly
commercial nation by the OF a currency based
gold and silver had always been and always must DO
fruitful in financial disaster In our own country,
1882 to 1S52-the period OF the hard money sys
tem-there were financial commissions once IN six
years The most notable those Of 1884, 1857 and
1861. England has always had a currency based
specie and England found in her war with Napoleon,
in 1891, that her bank paper on specie basis was
rotten us We found ours TO be in 1851. In England
then, us in war, gold went out Of sight, and was
boarded; manufactures were stoppcdi merchants were
ruined, and money became impossible 10 be
obtained; general bankruptcy and ruin threatened
both the people and government OF Great
Britain when Sunday morning, the 23d OF
February 1897 the King himself in council ordered the
sus pension of specie payments which suspension
last until the 18th Of June 1915, but did in TACT last
until 1923 and although the gigantic wars OF Napoleon
shook all Europe which England subsidized and paid
the armies Of all her allies with her gold, STILL whether
the allied armies we're in disaster or In triumph no
financial revulsion business panics disasters fell
upon people during those eighteen years OF most
destructive and terrible war, but to the contrary dur
ing that time, upon inconvertibie promises TO pay
ENGLAND BUILT UP
her IRON cotton and wooen interests and laid tho
foundation Of her wonderful and unequalled manuac
turing prosperity, established and iosercd her colo
nies extended her commerce all over the world and
maintained gigantic navy During those eighteen
years OF rag money the Bank Of England was indeed
tan example OF marvellous financial strength and
credit When by the capture OF Napoleon the war
ended the Bank OF England, doing be-
gan preparations for return to specie payments Then
again cnsucd business disasters, fall OF prices,
shrinkage Of values an overthrow OF credit and pros
traton Of trade and business.
Then Lord Liverpool told the agrculturiss and man
ufacturers Of England that over production was tho
cause OF distress. Under consumption rather tho
trouble More than SOC, 900 Of men and women have
been nearly two years out OF employment, without
purchasing means or power OF consumption beyond
what will keep body and soul together. As means VI
relief despite the views of Lord Liverpool England
was then obliged deter tho specie payments
until 1919 In that year Pecs BILL providing for grad
ua resumption, passed, full resumption 10 take
effect in 1923, and prices again tell Immediately after It's
passage TINS description was applicable TO New York
Lord Castlercagh, In 1928 compelled by the dis
tresses OF the country TO bring into Parliament five
money bills in single night, one Of them extending
the circulation Of the I'll notes until 1888 or IN other
words, each and all were measures OF limitation /"
Two years later the Bank OF England began to
reduce its circulation, IN other words, "a
contraction OF the currency. This, ia 1925,
was followed by destruction Of values, ruin OF mer
chants oyerthrowing OF all enterprise with loss
OF production great II fire had swept over half
the land. Seventy banks failed nearly two-thirds Of
her merchants aud manufacturers stopped payment,
followed by the usual disaster and starvation to tho
workingman and his family. Application WAS made to
the government for relief What power can change
all this at onceg An Of Paramentf The rain OF
mamma from heaven by divine interpositionY Neither
came. But, what seemed 10 the men OF that day
equally miraculous, large package Of pound notes
found IN lumber room, where they had been acct
dentay stored instead OF beng destroyed as ordered
These issued by the bank as money-n otLor
words, there imitation OF the currency-and
THE WORSE THAN LEPROUs PLAGUE
was instantly stayed Soon afterward the government
came TO the relief Of the Bank Of England by making
its legal tender but yet redeemable Ia gold In
1887 bank suspended again. involving this country,
because Congress had demonetized silver by rc-
stricting it q legal tender Tor small sums only The
Bank Of England being then pressed Tor gold which
the basis Of our currency called 1t away, causing
banks suspend specie payments Then for three
years fully appreciated the beauties OF currency on
gold basis In England so enormous were the losses
that Parliament took measures 10 guard against future
revuglons The bank issue no no.es than