New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-11-02

CARL sCnURz's ESTIMATE or THE INJURIOUS riSAS-
CIN EFFECT or uLDEss ELECuoS-No RISK
~ ELLCTING HAYES.
Carl SchuIz in response 10 r'quest from
Elliott C. CowLln. /. ID. Morgan * Co. -'in Jay, aid
others has written letter declaring A. 'lcton that
a national Democratic victory would 81 .he public
credit abroad and consequently dcmorG Olsr - IN
tcrests al home. The main points ui the otter are
below:
Tie world knows. and every investor in United
States securities, down Ia the owner OF Snst Fi1V
bnn,i know. that the war; 10 which our national dent
owes H., origin, not foreign war. IN which all parts
OF this couuiry had an equally patro,c siare, Tnt
civil WaI virtually carried on ~ on" part OF me county
against the other in other words, that the de9t was
created by the National Government cohlIuned w .ho
people 81 the northern section Oh the country tol .he
purpose II -ubduug great rebellion set on foot by the
people " the south SOW whatyrr means we may ems
sbe o maxi the world believe that the white people OF
the south oS, Ambition 10 49, ,r h rons Of orr
crumcnt icr themselves was d'leatou py iusunS vi ou
national debt. will regard that very dcbt a. sacred
Obligation oil hoiof an" Vii aIygaHs Te,,ari"d
measure a5 IL ecrtiiuy Mn al"His NC , iei"'' 80
uy thos, who created II Tor the purpose OF
fb'ns f. stating the case I'm its mildost form. Nothing
could be- more unfortunate in this respect tnan that the
NJ rrr.ut events with tie fact that its success In the
Presidential election IA to be accomplished by the votes
oies itr,i hv a small number OF Northern states It's
to be expected If Democratic victory De achieved IN
maj ~ that the world viii regard the late COniederaes
Of thr South as numerically the strongest clement IN me
yi,O ,us party and the conclusion hcs near tnat TINS
eia,rt especially as il will inevitably furnish the bulk
1i D,iii, t,trcr in the councils of the or9anza-
on Ii that hc 80, those who have invested, or might
uuder other circumstances, De induced 10 invest III
Tinted states securities will scarcely be- inclined to give
their confidence TO party Government IN great
mrasIr, controlled by class or men VINO, when TIC
ay OF tcr cu,mcs and the national dojt ITSELF as TIE
engine or their discontinue. ~,
Ia mast events the idea OF Reputation is, In the
European mind unfortunately associated with Southern
state and 1t il still remembered that the Denocratc
party in 1865 pronounced in favor Of paying on part
OF or debt in deprecated SreeEbackS policy Of
partial population. Neither VIII the credit which ls
attached Mr. 1ldrns financial views ara lhtehtloDs oe
suc cut Ocountcrbalancc the disluleilhs reheSos
created by the character and antecedeus OF lne party
behind him. especially as thc succession 10 tc
of MI Hendricks IN of accident would open sun
more alarming prospect Considering the tmlniy OF
capital and the scnsveneSs OF circuit al uese ,iihs
combined would seem To me wen calculated souu ae
Democratic party triumph To nave an eneGI
upon standing of our national seeuiu i'll 'Io '
kct4 of the world ,.,,,..
esmltc. II may be small but may nf ~ ~ any
rate il seems 60 that those VINO thihk IL vi htlc co
sequence 30 us whether the bodloueIS '0se oei IAN
percentage oi the value oi thoi oohus' AN W
ann rtrti yicN of the matter II WOMB require ohS
comparatively slight Disturbance Oh our nal,Ui ~
Ia st The funin OF securities at lower rate Oh
interest and thus 10 prevent the hhluh SAVING 10 our
National Treasury of considerable amount oil money
And l. scarcely necessary 10 zen pusl.ess men t
h,ayy decline the market value OF onr securities
ticr I'm the CITY OF NewIurk alone about Sl3o.OOOOOO
W orr national bonds held ~ banks, savings insu-
tons companies ana me- me- ana hldihe hsu,
rance companies. THESE bonds form, aside from the
ready cash their most reliable and most available assets
that can De used In of emergency. TIE effect OF
heavy fi.l in the gold value Of those assets would
scarcely ncutrzed by AL accompanying rise IN gold
for it would be- calculated TO create wides read dstrust
n, to the safety OF those institutions OF credit and,
where disrust, when once started Will stop NO
body can foreteu Such effects would be all the more
dangerous ~ number of persons directly Interested
in those institutions Is immense, especially In the horth
ern part o the Union.
The existing dstrust as To the consequences OF Dem
ocIatic victory has been created by the DenOcratc party
ITSELF, record and its component clements anu NOT
BY this discussion II Ia unquesonable anu very sig
u1c.t iaCt that while fOr obvious reasons