The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-01-05

responsiointy TOR It's expenditure and for
Tvs policy in respect TO the great producing
States OF the South.
II has likewise controlled the currency and the bank
Ing OF the country Il has been the principal dealer in
the precious metals t has conducted vast fiscal trans
actions It's financial secretary has held In his hand,
from day TO day. the supply and the rates Of the loan
market in the centre Of capital and commerce.; the
terms Of our foreign exchanges-the prices OF exports
and lmports-the quality Of the Circulating medium
the 1uctuatng standard of values recognized by law a.
the rule in all dealings aud all contracts
BY the force of its example, by its ascendancy over
opinion acquired In period Of public danger during
which the people formed the habit OF following its
leadership; by its means OF propagating the ideas
cording TO which IT'S own operations conducted;
by all these well by the direct effects its action
It's measures and it's policy, the federal governments
has therefore, practically dominated over all business
and all industries and created conditions which shaps
the conduct Of individuals IN their production and
sumption and Of local governments IN their expendi-
lures taxation and creation Of debt
FALSE REMEDIES.
It Is natural that such condition or mems business
affairs should be prolific Of ilusory and mschievous
schemes for relief vague notion Is extensively en-
tertaned that new issue OF legal tender notes would
afford eiectual remedy This tallacy IS largely due
the false theory pervadng nearly all the literature
OF political economy as to the agency which the
quantity OF the currency even when equivalent 10 COIN,
has in causing cycles Of high and low prices.
AS high prices and expanded currency and low prices
and contracted currency have been usually louhu 70.
gether the effect has been mistaken for tho cause IL
often assumed that the banks, even when redeeming
their notes coin, expand their issues in excess OF
the needs OF the community and thereby originate and
consummate general and prolonged rise OF prices
OF PRESENT REACTION
In our present the most important cause or re-
action the immense waste OF our capital which has
gone all the modes described, and especially by
excessive governmental consumption An accessory
is the fall in prices OF many Of our staples which
are now produced IN excess Of the capacity OF private
consumption by an impoverished people. There arc
also moral causes acting on the public mind popu
lar existed that prices would not fall so long a.
the volume Of legal tenders and bank notes continued
undminished. Many made their business calculations
on that theory and are disappointed and their comb
dence in their own opinions unsettled.
These special causes in addition TO the natural ex.
haustion OF fictitious excitement broke the public
illusions which had been generated BY false systems and
false theories great change ensued in the opinion
and feeling of the people in confidence and credit
the voluntary machinery of business which expands
and contracts according to the uctuatng temper and
purposes Of individuals corresponding fall Of prices
resulted.
1t would be only by large issue or the menace OF
large indefinite issue that decided effect prices
could be produced That would create alarm of such
impending depreciation to threaten creditors with
conhscation Of their debts and holders of currency with
its loss and they would hasten to exchange II Tor prop
erty Any issue which should act on the Imagination,
melting wild estimates wild fears of the future might
induce speculative depreciation of the price OF the
currency and imitation OF the prices Of property.
The evil of moderate issue when the currency
already exceeds the wants of business and the increase
cannot be pretended be for any legitimate purpose
especially IL the object OF removing individual distress
by creating fictitious prices DO avowed is that strikes
at the root OF all confidence and all credit II the prnc
pie be adopted everybody will inquire how often
such expedent may he repeated how far 1t may be
carried
currency, under circumstances which cause real con
traction whole vaster volume OF credit machinery
which fill all lenders with dsmay and which destroy
public confidence hope and ath that are the basis OF
credit systems and credit operations rs edesructve
1t can be prolific Of nothing but general disaster
The temper which now predominates among tho pes
pie revolts at financial quackery II 10 no longer sus
ceptbe atterng illusions which have exploded amid
the wrecks of individual fortunes and private prosper
ity II is excessively increduous 1t demands sound
measures, such commend themselves to the judg-
of the best intelects and the best experience
sPfcE PAYMENTS WITHOUT CONFUSION
After eleven years OF CONFUSION without restora-
tion OF specie payments it now claims restoration
of specie payments without CONFUSION The problem
does not seem difficult Resumption by the govern
ment will accomplish completely resumption by the
banks. The Treasury has only, by gradual and pru
dent measures, to provide for the payment OF such
portion of the outstanding treasury notes as the public
not wishing to retain tor use will return upon II Tor
redemption. The required in coin, IL the prepare
lions be wisely conducted TO public
fdence will be what is necessary to replace the trac-
tional currency and supply such individuals pre-
fer coin paper for their little Of money and
also what is necessary 70 constitute central reservoir
of against the fluctuations of international
quantity by interceptng from the current OF previous
metals flowing out Of this country and
by acquiring from the stocks which exist abroad with
out disturbing the equilibrium Of foreign money
markets, is result to be worked out by study OF all
the conditions and the elements to fuhl these cond
tons and by the execution Of the plans adopted with
practical skill and judgment Redemption, beyond
this provision of CON- DO effected as other business
payments are eifected-or in any method which con
verts investments without interest iato Investments
upon interest," terms the holders will acccpt-and by
such measures as will keep the aggregate amount Of
the currency sefadjusting during all the process with
out creating at any time artificial scarcity, and with
out exciting the public Imagination with alarms which
impair confidence contract the whole large machinery
OF credit and disturb the natural operations Of business
The best for redemption that furnished by
public economies for 1t creates no new charge upon the
people, and stronger public credit is certain TO re suit
from sounder finance. and will reduce the annual coat
OF the national debt
EXAMPLE or FRANCE.
These opinions, deduced from reason, arc confirmed,
in recent example, by experience France, in her
ten months contest with Germany, incurred
expenditure OF ST. 900 600 900 in specie values and in
twentyeight months following the peace paid an in
demny OF ST. 0OO 900 600 in specie, or It's equivalent to
foreign country. These great operations were car
ried without causing depreciation of the currency
beyond two and onehal per cent at its extreme point
and without disturbing the general business or industry
of the people.
What is most needed now is that the public mind b.
treasured by WISE safe and healing policy The dread
Of imaginary evils ascrbed TO the methods assumed TO
be necessary restore specie pay ments is more m
chlevous than the reality wisely pursued ought to be-
AS soon as the apprehensions OF an impending iall
of values removed, manufacturing and mechanical
industries will start dealers Will buy for future
consumption enterprises that commend themselves to
tho sober Judgment OF Investors will be undertaken
and capital which now accepts any low rate Of inter-
est, where there is risk but is withheld from opera
tons OF average character, will be lent on reasonable
conditions
TRUE REMEDIES
But the remedies for the evils felt by the people
in their business and industries extend beyond
any measures merely relating to the currency They
must be broader and deeper. They must begin with
prompt and large reduction in governmental expendi-
lures aud taxation, which shall leave In the hands
thai IT a larger share OF the result Of labor.
They must proceed by Withdrawing, as much az
possible, governmental interferences that cripple
the industries Of the people They must be consum-
mated with increased efficiency and economy in tho
conduct OF business and the processes of production
and by rigorous frugality In private consump-
period OF selfdenia will replace what has been
wasted.
We must build up prosperity upon the old
foundations of American sefgovernment; carry back
political systems toward the ideals Of their authors;
make governmental institutions simple, frugal; med
ding little with the private Of individually
aiming at fraternity among ourselves and peace abroad,
and trusting TO the people 70 work out their own pros
perity and happiness All the elements OF national
growth and private felicity exist In country In
abundance which Providence has vouchsaed 10 no
other people. what we need to do is 10 them
from governmental folly and rapacity.
THE DIES MONIES SPEECH.
ITS TRUE INTENT AND MEANING AS GIVEN BIZ