The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-08-10

from some OF you who have thus expressed confidence
Ia me. and II may believe in the integrity OF party
platforms, from u majority of both parties
IL is due TO the proprlcties OF the relations which
ought exist between the constituent and the repre-
sentative, that should give you frank exposition
OF my opinions upon finance. THIS becomes more ma
teTia because have never had opportunity of dis
cussing Them with you. Near The close OF The war
gold stood at premium the legal tender note of
the United states OF las. by the return OF credit to
the country because the war had ceased, this pre-
mum very largely came down. From 1865 10 sepiein
Der 1913, the country forward IN great degree
oil prosperity The rewards OF industry and business
capacity were so great, crops were plentiful wages
SO high that even the great burdens OF taxation
were hardly felt. In such state OF great commercial
nhshcal anu business success the country ved down
the premium on gold from l45 TO 10 per cent without
any shock 10 business substantial decrease in values
oil property so tar AS the difference IN premium was
concerned we were specie pay mens three
ago than now. As the nrst net OF the republican adj
min stration under General Grant IA resolution
passed IN March, 1869 enactng that 'hc lah OF the
United states solemnly pledged to The payment in
equivalent OF ali obligations of the United
States not bearing interest, known as United States
The same resolution also solcmnly .pledged the
United states 10 make provisions AZ the earliest practc-
aoie PERIOD or the redemption oil The United States
notes IN coin. ;"
because believed II changed the terms OF the con
tracts between debtor aud creditor II not there
could surely be need OF The resolution TO make that
law whch was law already The creditor class are now
realizing some OF he deirment to their interests OF
this legislation, because under the debtor claims the
right 10 pay his deb, IN silver
From that hour, whether wisely unwisely done,
tins became SOLEMN contract between the holder oil
It's Obligations and the United States, that they should
be paid IN con, which was defined 10 be gold and
silver, in The same resolution That pledged
faith could not and ought not to be broken.
The question, then, how can it be iui-
hhcd OF course It could not be done until the
legal tender note OF the United States became the
equivalent of the coin dollar OF the United states,
was made so by the government and moncyed nstitu-
lions OF the country providing themselves with sui-
coin to ieem the notes of the government,
GLIDING the bank notes which 1t had guaranteed
THIS latte alternative seemed TO me impossible SO
In us lelr hpr ere
OF gold com IN circulation IN the world, and there
nearly $500. 600 OF these government oblga-
due demand. and did not how any
siderable portion Of all the gold coin in the world
To be brought within the United states especially
the balance of trade was against Us. was OF OPINION
1t was better Tor The country mat should go on IN It's
then career OF prosperity and by the Accommodations
OF It's industries, retrepchmcnt in lis expenditures,
and increase of us producveness 1t should strengthen
credit and demonstrate its ability to pay debs,
both public and private, until the premium or differ
ence between It's notes and CON- should gradually dis
appear and that any attempt by contraction of its
currency, by other looking TO enforcement
by law OF this growth, was unwse ana unstatesnAn
Ike; that better plan would be Tor the government
to issue bond at low rate OF interest in which the
grecnback might be invested the will OF the holder
aud tue government thus becoming u borrower at u
low instead OF high rate OF interest, would tend to
relieve the proluctiveness of the country from the
burden OF the enormous rate OF interest," varying from
The bank rate OF seven per cent IN the noneyed centres
TO wentyiour per cent IN the Sonth and West because
long capital find investments IN government
bonds the greatest OF all possible security at SIX per
cent SO long the business paper OF the country, less
est which no business can pay without ending IN
financial ruin.
Without an action the part of Congress to fund
the greenback IN September, 1873, the difference be-
tween gold and greenDacks reduced by he ura
laws OF TRADE to ten per cent Then came financial
crash, which was inevitable when the average IN
terest
DOUBLED EVERY MANS DEpr,
often in five to exceed eight years BY this
financial disaster The premium on gold was still FUR
thcr reduced TO six per cent
Apparently inspired by this near approach IN value
OF the grcenback to gold came the proposition on the
part OF the creditor portion OF the country that specie
pay mcnts should be Immediate rough hit about
by legal enact ment that the currency Should be
iraced until the grecnbacks by their scarcity should
be made equal in value TO gold; ana that laws should
he passed requiring he redemption of all currency
OF the country in gold, on presentation. But pro-
vision made by which It could be DONE il such pro-
vision by law possible THIS enforced resumption
seemed to me IN effect imrraccable believed the !
only in which the legal tender note could be made
funding II in bond rate OF interest equivalent to
that Mt which the average gold dollar OF the world was
invested and TO offer such Inducements TO the people
they would invest in such securities. To induce
the investment o money at low interest must be due
call or on very long time. Therefore, proposed
thesc bonds should bear three and sixyve one hun
dredths per interest, and be Instantly convertible
currency without tie intervention OF the brokers
any government depository. As tho gold dollar OF
the world invested on the average at three per cent
interest tins privilege OF investing the greenback dol
lar in my judgment, would steadily surely appre-
cate its value the gold dollar, and its equalization
specie values being thus attained, resumption would be
possible without detrment shock to the prosperity
of tn. country.
The loan would lie taken at home and not abroad,
and the continued outflow OF our bonds abroad de-
mandng the export OF gold pay their interest would
STOP OF all others the most desirable
for onr financial welfare Warned by the terribly sad
experience fles in their endcavors after
destructive wars, to bring about specie payments by
force of law, venture to predict that to force rcsump
ton OF specie payments It's equivalent specie values,
currency, would be disastrous to the CONNER
cia prosperity of the country ruinous to its manuac
turing and producing interests; would parayzc It's in
dustries deprive It's labor of employ mcnt and evep
food, thus, by GRIPPING the resources oil the coun-
try render all efforts at resumption ute aud instead
of fastening the event, prolong and postpone
IL to the indefinite future
ENFORCED RESUMPTION
The trial Of the enforced resumption OF specie
mens on given date has begun. Whether was right
my prediction OF the elects OF tins legislation, you,
my friends and neshbors, will Judge To torekGow
the result, which all most deeply iccl in bus
ncss relations seemed to me to require neither ioro-
sight nor wisdom.
Both political paries by their declarations in their
platforms agreed upon pan of enforcing return TO
specie payments by law They seem to differ only in |
could only bow TO The decision OF my party organiza
tion upon this question, in wiicn did not agree
hope OF financial relief To the country, in the
direction | looked Tor IL, by uniting with oppo-
nents because upon financial questions they claimed TO
be identical with us.
Upon the great and paramount question of the power
of government to protect its czcns in all their rights
being agreement with the vast majority OF my party
| remaned true TO my party allegiance.
The result. and It's friends admit, the necessary
of enforced mmedi &c resumption OF specie pay
mcns 10y Jaw are seen IN sp'ritless foreign COM
mercc; ships without ircights; steamships without
cmgrant passengers; closed mills; INDUSTRIES without
productivencss; railroads without profits reduction
the values OF property great to allow the ncum
brauccs to swallow IT, and tie secured creditor still
call pay the debt bankruptcies OF mcr-
chants, manufacturers and bankers without par
acl and amount; uncmployedQla
ing men ramping over tho country in so great num-
beers be a the quiet and peaceful; or
grccated IN cities demanding of the authorities
" ork food tor their and little ones Indeed,
the country seems have suffered all the evils that
We suffer attempting the resumption OF specie
payments by law. Whatever may have been the Wis
dom OF IL OF tins policy. Is has been pursued
aud brought great evils whether necessary and
polite not train The country having already
suffered all thai there be- Tor trust there can be
lower depth OF business distress. whatever AT first
were my opinions OF the lack OF financial statesman
ship this policy the question presses upon me, what
Is o be done
Clearly having suffered all tie evils attending upon
II causad by 10, the experiment must tie tried.
Nothing could be more lutile than after all this
sulcrLnr md loss chance nnllcY and NOT