The New York herald., 1877-11-17
HERALD SATURDAY NOVEMBER H. ls77-TRPLE SHEET

had been dreamers who looked upon ssper money as
iech OF Their idoiary. Bu, these dreamers were
then few number that they made no ripple on
the current OF public thought and formed no part
public opinion. That opin was then the aggregate
result OF the opinions OF the foremost Americans VINO
ever thought aud wrote ON that subject NO man had
ever sat IN the Presidential chair and lett on record
any word on tho subject which spoke OF safety Ia
finance except In coin or paper convertible INTO coin
No man had sat In the chair oi the Secretary OF
the Treasury. and had spoken ~ all the subject,
who had not lett record opinion equally strong.
from Hamilton down 10 the father oil his distinguished
colleague (Mr. Ewng), and down 10 the present day.
II seemed to him that the general Judgment OF all who
deserved TO DO called the leaders oil Amcrcan thought
ought TO bc considered worth something In An Ameri-
can House OF Representatives In the discussion OF
the change the general level public opinion In
ls6is Every man knew the history OF the war
NECESSITIES
The overmasterlne necessities o. that war had led
tho men OF 1861 10 depart IRON tho doctrine Of tho
fathers But they had not departed from Il as mat.
ter OF sentiment but as matter OF necessity. All
who voted for the Greenoack law In the House and
Senate had done 80 under protest, and with tho
declaration that at the earliest possible moment the
country should be brought back TO tho old safe estab
sned doctrine OF the iathers. Like tho companions
oil Ulysses they had lashed themselves 10 the mast OF
public credit when they embarked the stormy and
hazardous sea Of paper mouey, so that they not
sung TO them when they were the Wild
| waves But times were changed; new men
House, with only ak dissenting votes resolved to
stand again BY the old ways to bring tho country
OF schoolnen and doctrinaircs, the latter unknown
twelve years ago, were found IN favor OF what they
paper stamped s.one doar'' was = dollar; that cold
and silver were part OF tho barDarism oi
s The past, which ought forever to oe abaa,
place. and that the eras OF prosperity were tho paper
sras Coming back 70 the prosperous era Of lodo
| he assorted that although banking was frec there
was bat $201, 600 OF paper money in circulation
and about s2oo,0 900 In coin. How much was
backs, fractional currency and fractional silver, aud
about $1,000 900 OF coppers, In al $780, 0O0 000
Ho put it 70 the judgment OF the House whether
| In 1850, under irec banking with, no RESTRICTIONS,
$407 0OO0e0 was the limit oil possbl currency
ouation, almost twice that amount noodod aud
hardly enough IN 1870.
| MIR. KsLLEy CRITICISED.
He proceeded to criticlse that part OF Mr. Keey's
speech OF yesterday VIII ch commended the financial
policy otFrancc, and expressed the wish that that
| gentleman should be instructed by It. lie admitted
THAI France had always more currency than England
or the United States but said hat The busi-
ness IN France wero quite different There all busi-
ness ~ done IN cash, none OF It In checks aud drafs
who England ninety-nyo per cent OF all great
mcrcial transactions by checks and
drafts and only Ave per cent by cash. An
experiment which he made ten years ago
showed that In hLy banks one third in the great
ctes In secondary oties and o1e lhird
IN tho rural districts had shown that tho business
counters eighty EIGHT per cent Of
II cnocks and drafts aud twelve per cent cash.
france had, like the Untod States, issued paper
money during the war, but as soon as the war was
she had begun 10 reduce paper circulation and
increase tho metallic currency, and France was
within Atty dayseoi resumption. Ho therefore com
Pennsylvania He proceeded 10 crtcise the authority
OF Sir Archibald Aiison and Mr.. Doubleday (who had
been quoted by Mr.. Kelcy) financial subjects, and
said that the former had credit whatever England
as writer on finance, and that The latter had written
nothing but the veriest twadde on that subject Ro-
fcrring TO the English troubles oil 1919 he declared
| the overwhelming aud fixed opinion OF England was
that the Cash Resumption act ot 1919 a blessing
aDd not curse, and thAt tho evils which had
rounded Euglanu Ole not from the resumption oil
cash payments but from causes entirely distinct IL
wns the Corn law of England which had produced the
great evils from which England had suffered. In 1922
and 1923 committee vi Parliament had been up
pointed 10 Inquire into all the causes Of disrcss and
It's report tnero was not word which attributed u
particle Of distress 10 the Resumption act of 1919
| Ho put himself IN the same category which tho
gentleman from Pennsylvania (AE Kelley placed
| the late Secretary oil the freasury-Hugh McCuoch.
He (Mr. Kelley had read yesterday three lres from
an article written by that eman aud had declared
that tue statement made in those lines showed either
| uncxanpied ignorance or unexalupled mendacity
| What was that statement 1t that every great
1nancai this country had been procedoa by
an enormous enlargement OF paper circulation Ae
aud he challenged any one to prove the
lrary. 1t had been assumed that specie payments
would njure the debtor class, and would, therefore,
help the rich. He denied that proposition IN toto He
affirmed that vast majority ol tho creditors the
country were poor men and that vast majority OF
its debtors belonged TO the rich In tho lrs
place. tho poor man had to borrow money, and the
second place, II was the aborng man who pisced his
surplus money in the savings BANKS and il was tho
ricn who borrowed from the savings bunkn
bs ad .Ss 20 s % In ns
the attempt 10 repeal The Resumption law
| IL II were repealed the country would be
plunged into the necessity oil SAILING over the
| same tempestuous ocean with uncertain resulL
II Il wcro repealed aud no substitute made Tor
II, the day would not be far distant when Congress
would look back from the depths and horrors OF tho
which would surround the country tho pres
ept time and woula earnestly regret the day when
the Resumption repeated. He did not under
vaiuo the greenbucks, but when tho gentleman from
pennsylyonia tMr Kcisyl talked about the greenpack
putting down the reoelnou, II he (Mr. Garfed) mad
been on the other side OF the House he would have
said:-
80 M Ind MA nd n rnra Hhnrnl nj
that KIND OF money than you had. II was better
money than yours, on your own principle, Tor /, was
Confederate states; and yet that did not put you
down" (Laughterl He did not think that gentle
men who knew The financial policy OF the Coniedcracy
would JOIN with The gentleman from Pennsylvania IN
his euosy ol the greenDack Tho struggle now pend
Ing IN the house was, on the ono nand, 70 make tie
worse. In tho name OF every man who
wanted his own when he earned II, he (Mr.
Gareld) demanded that Congress should not make
earned of the poor man To snrivc and shrink
away, but that tne grcen1ack should be made BETTER
until the ploughhoidcrs' money should be good
the bondhoders' money Tnis WIS tho ora oil pacica.
ton. The States and citizens equal before
law Let Congress make tho money equal before tho
law. 50 that the motto OF tho country might be,
equal States, equal mcn, equal dollars" aud com
| plete pacncsti0n would be acnieved.
| There were tnTeo reasons why the Resumption act
should bc retained: :-Firs pubic latin demanded 1t
second, all GrcaI public interests demanded III third,
tho future prosperity OF the country required sod
| permanent basis on which condolences could be again
established and business revvod The elements werc
|
the Secretary Of tho Treasury made yesterday showed
that he had 500 UOO,u0O OF coin, unpledgcd for any
other purpose, waiting as reserve for the day OF
SUMPTION aud that no adding to that stock tho
| rate OF $5,0O0000 month Tho balance OF
| trnde was IN favor OF this country to the
extent OF nearly $780, 600 900 year; exchange was
flowing this way. The harvcsts had been Dounteous
the nation awaking to new enterprises; business
| was vcrywhcre revivng There was danger cx-
cept from the Congress OF the United States. There
was TIE storm centre; there the point Of peril II
that point could be passed, and the threat
avor,el, the country would be saic and resumption
com cd Hc referred TO the lact that Two years aga
his colleague (Slr. Ewing), In discussion with Con.
eral Woodord had predicted that tho silver currency
| then proposed TO be issued would DO Immediately ab
! sorbcd and Withdrawn from circulation. SO his col
league thought now that gold would be absorbed
and Withdrawn from circulation.
Mr.. EwNu, ldoin.) oi Ohio explained that when he
made that statement the country not OF the
rascaly act demonetizing silver, and silver then
| al a high premium ovor the greenback.
Mr. GARFIELD suggested that the trouble about tho
explanation was that the silver OF twelve per
cent less value than old silver that there
the slightest danger Of s being bought up sivor
! The gentleman Cdr Ewing thought that there wal