The New York herald., 1876-02-11

activity of trade and the large prons during the war
and attribute both to inflated currency. commit tho
error OF leaving out the most important element Of the
calculation. They forget that the
GOvEkNNEKT WAS A cusTOMER
for nearly four years, at the Of 81 600 900 TO
600 600 per day buying countless quantities OF all
staple articles they forget that the number OF
snIners continually enlarging armed force
grew TO It's gigantic proportions and that the number
fprodueers was by the same continually grow
ing less, and that thus presented. scale of un
preCodented magnitude. that simple problem, familiar
alike 10 the political economist and the village trader,
OF the demand beng greater than the supply, and
consequent rise IN the price Had the government
been able 10 conduct the war on gold basis
and provided the coin for its necessarily large and
lavish expenditure a rise in the price OF labor and a
rise the value OF commodities would have been IN
evitable. And the rise Of both labor and commodities
in gold would have been for the time marked as In
paper adding, OF course the depreciation o the later
30 its scale OF prices.
While the delusion of creating wealth by the of
irredeenable paper currency may lead TO any number
OF absurd propositions the advocates OF the heresy
seem 70 have sett led down on two measures or rather
one measure composed Of two parts namely TO
abolish the national banks and then have the govern
ment issue legal tendersat to the amount of the
bank circulation and add TO the volume from time to
time thereafter according 70 the wants Of trade. ="
Inc Two propositions arc so inseparaDiy connected
/ that shall discuss them together
The Speaker then referred TO the national bank
system describing the circumstances under which il
arose and the safeguards TO the people which wero
| thrown around them, and continued
do not say the system perfect | do not feel
called upon to rush 20 ITS advocacy ts defence do
not doubt that 60 forward may ind many
points IN which the system can be improved But this
am bold TO maintain, that contrasted with any other
system of banking this country has had IL is i'm
meAsurably superior; and whoever asks demo-
do, for it's abolition, with OF getting
back any system OF State banks is blind leader; and
very deep ditch Of disorder disaster awaits the fol-
lowers If the people should be so blinded to take
that fatal STEP
IT Is generally to be dcplored Mr. Chairman, that
many candid men have conceived the notion that 10
would be saving to the people If all banks could be
dispensed with and the circulating medium be fur
nished by the government issuing legal tenders. do
stop here argue that this would be violation
! Of the governments pledge not 10 issue more THAN
/ S40O, 000, 900 of It's notes merely remark that
that pledge is binding in honor until legal tenders
point is reached there will be desire, as there
will certainly te no necessity, Tor the government ssu
rpE CAPACITY or coSoRFss
The great and, TO my mind unanswerable objection
to this scheme Is that i places the currency wholly 10
the power and under the direction of Congress. Now,
Congress always has been and always will be governed
by partisan majority representing OF the political
parties of the country and the proposition therefore
reduces Itself TO this-that the circulating medium in
stead having fixed determinate character shall be
shifted and changed, and manipulated according TO the
supposed needs OF 'the party" profess MIR.
/ Chairman 10 have some knowledge of the American
Congress- general character its personnel its scope,
its limit its power. think the whole, that IL is
far more patriotic intelligent and upright BODY of men
than generally gets credit for in thecountry but at the
time, can possibly conceive oi assembage OF
respectable gentlemen the United States more utterly
untitled 10 determine, from time time, the amount
of circulation required by 1.-THE wants Of trade But
indeed, body of could be intrusted with that
]
tion their integrity would be constantly under
picion. Ifthey performed their duties with the purity
of angel ofhght they could not successfully repel
those charges which always follow where the pta-
ton to do wrong is powerful and the way easy. Ex-
perience would very soon demonstrate that more
corrupt or corruptng device, no wilder or more vision
airy project ever entered the brain OF the schemer Or
the empiric
If the people of the United States we're fully awake
and aroused TO their interests and could see things
they are instead Of increasing the power of Congress
oyer the currency they would by the shortest prac
tcable process divorce the TWO completely and for
ever and this only be done finally, enectuaIly r-
reversiby by the resumption OF specie payment
/ Why, Mr.. Chairman, it is hardly exaggeTaton to
/ say that ever the government compelled to
resort to irredcemable currency during the war the
assembling of Congress and its continuance IN
have been
THE MOST DISTURBING ELtMENrs
in the business OF the country is literally true that
no man can tell what day may bring forth. one large
interest looks hopefully TO contraction and
ruined unless there is such movement to-
ward expansion as will send gold up.
vince Congress Both sides naturally have their SYM
pathzing advocates on this floor and hence the sub
stantial business interests Of the country are kept
feversh, doubtful, speculative state, Mems minds
turned from honest Industry TO schemes OF hnan-
cial gambling the public morals suffer old-iashoned
integrity IS forgotten, and solid, enduring prosperity
with honest gains and quiet contentment rs rendered
impossible We have suffered thus far in, perhaps as
light degree as could oe expected under the crcum
Stances but adopt the insane idea that all
rency shall be issued directly by the government and
that congress snail be TIE Judge OF the amount de-
manded by the wants OF trade " and you have this
country adritL rudderiess on OF troubles, shore
II is urged by the opponents of the banking system
/ that the $500 600 600 of bank circulation
be supplied by legal tenders and the in
terest that amount OF bonds stopped How Does
any gentleman suppose that the bonds owned by the
banks and deposit In the Treasury will be exchanged
for legal tenders OF and inflated issue? Those
/ bonds are payable, principal and interest,
gold and, with the present amount of legal tender
notes they are worth in the market from 81 l6 10
/ 81 D. What Will they be worth in paper money when
YOU double the amount OF legal tenders and postpone
J ne daV Of ElCio of
prophet seerY And this enormous issue OF legal
tenders to take the place of bank only the be-
/ The 'swants Of trade" would speedily demand
another ISSUE for the nature Of an rredeeu
able currency Is that 1t has limit ill reaction IS
born OF crushing disaster. A lesson might learned
(by those willing TO be taught by fact and experence)
from the course OF events during the When
had $3.50 900 900 Of legal tender circulation stood
for long while nearly at par with gold AS the
increased IN amount the depreciation very rapid
and at the time fixed the $4Oo 600 600 limit that
/ whole had less purchasing power ex-
change for lands or houses merchandise than the
500 10000 had TWO years before. In the spring OF
1s62 $3.50 600 600 OF legal tender would buy in the
market Sl4hVoo'VVO N eon com. In June, leof
$4OO, 600 of legal tender would buy only
$l4O 600 600 in gold coin.
Ard we had not ixeu the s4o0 600 600 limit but had
gone on issuing additional amounts according the
wants Of trade, now argued and urged by the
modern democratic Gnanciers, the result would have
been each successive imitation the purchasing
power OF the aggregate mass would have been made
less the value OF the whole would have gone down.
down till it reached that point OF utter worhessness
which SO many ike experiments have reached BEFORE
and the legal tender, with all capacity for good
IN great national crisis, would have taken It's place
\ history alongside OF the French assgnat and the
Continental currency. The St01, 900, 600 limit
happily saved that drcful experience,
and caused the legal tender appreciate but,
unwilling learn by this striking fact the inationists
\ insist upon q scheme of expansion which would
/ speedily raise the price of bonds unprecedented
figures and by the time they should succeed In pur-
chasing those that stand security for national
/ bank Circulation they would have increased the
tional debt by countless millions and instead Of
making a saving for the Treasury they would end by
y 0af "a
the banks and the people would have lost the addi-
tional S. 600 900 Of local derived from the same
source
Among the anomalies presented in the currency dis
cussion. Mr Chairman s that the West and the south
should have large an element camOrous Tor mia
tiou. OF all interested in the specie standard
the West aud the south stand FIRST The great staples