The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-08-22
AN oPEN LETTER TO JOHN SIBERIAN.
How steady Business and Good Ttmes may
be brought About In A meriea

SIR: On the 18th inst. at Mansfield, Ohio,
the Hon John Sherman delivered his long
/ promised speech. in which, after careful prepa-
ration, he made very full exposition Of the
views and policy Of the Administration. or. at
! least. the policy of his department and the
measures he proposed to adopt. Our purpose.
in the observations which follow. IL TO analyze
the fiscal policy promulgated by him. and
which will be his guide in the administration Of
the Treasury Department
Mr.. sherman uttcrs this wise and patriotic
sentiment in speaking OF resumption:
Now, the question the time and mode by which
should BE- d"puanc or stand without ,eld'g unona plan
us the best ,Ni,dcnt that pubnc opinion viii allow to
be adopted
We entirely concur in this. and engage In this
dis .u-son with candid ear and aguilelcss
tongue as u co-aearchcr with him after truth
and not ~ a contestant for victory. Trusting
that he will he governed by his own excellent
maxim and will give to these observations Just
such weight as Il candid consideration and con-
scicntious judgment shall award. we proceed TO
the analysis:
And now fcow cuzcns. this brings u the esuon
nny strange d,n.on. and tnn T. Inc " 1hHn 80
specie payments What do We mean by this phras.f l.
/ - much opposed To, as any Of YOU i. i,
ana opposed to it. and have "e g. .ad VIZ
geg igg@i' Is .imrly NAT paper money ought to ns
made equal to coin 80 that when YOU receive 1t will
bay as much beef. corn, or clothing cob,
This definition seems to us very detective an
nounccs no principle whatever. nor does II give
any clue or indication whatever as to the meas
urcs or method which will secure for us Specie
payment"
Paper money may be made more valuable
than coin. IN IN the case Of Venice. and ~ would
hc the case with England and France, were they
to make their treasury note. the EXCLUSIVES
a.
legal tender money can be equal 10 COIN only
IN creditor country. and only within the limits
OF mat country Al home IL is on par with coin.
and they are used promiscuuusy. There being
no iOrelgn debt no one has occasi on to abstract
the com but even II the paper currency Of even
q creditor country be convertible" into coin on
demand, then nowhere II paper money equal
to coin, II cannot be exported for the purc base
OF foreign commodities. or 10 pay foreign debts.
Al home, even. every single dollar Of coin IL
worth its face worth what it Processes to be. In-
stautiy. and ut all times II every dollar of IL be-
used It IL Of full, unchanged value n payment
as legal tender: but convert Bile paprr is n
promise or an assurance that there il a dollar
81 coin ready for its redemption Of every dollar
OF paper on demand. Such in fact * not the
truth, Tor an instant demand for conversion of
whole OF It. could MT, eff'ctually, be done as is
the case with coin. Without urth"r illustration.
OF his own knowledge. to multiply illustrations
to show the faultiness of the definition.
Mr. Shermans definition IS wise in omission
word conysrtibie" Paper Legal tenders T Should
never be- convertible into com, but over kent
on par with II at home; for par with gold means
prosperity. means "A creditor country. below
par. or NJ discount means adversely, foreign
drbl' Depreciation tbeow par OF gold OF
paper legal tenders means simply. and means
only. debt TO the foreigner. There IL no other
demand but that of the foreigner which can
endnnger this par Aud so long ~ there shall
be NJ foreign debt that country is prosperous
irrespective ~ IN" volume OF IT. paper currency
It's paper currency Will never depreciate. So
lgnk As the foreigner can make no abstraction
OF IT, The foreign trade ~ in II wholesome condl-
ton. But the moment the foreigner can. 10y
debt 10 him. lay his claws upon your gold. then
look out Tor your paper currcncy-that is. look
out for your foreign trade, Tor there the danger
- w. iInyay nss. ~ ,ne papeI D.. con-
contra ton and an advance in interest Instantly
follow. win al their tram Of lamentablc disas
convert be largely IN debt, then in the sequel
to all the ills caused by contraction and rise
specie payments.
Whereas in a country where there are paper
dsrs. but not convertibe by law the working Of
such currency would be as follows:
The moment the foreigner, from Indebtedness
TO MN. begins TO abstract gold that moment the
price OF gold advances tthe legal-tcnder
paper does not deprecate. because lis volume.
We assume. has not changed; it is boarded and
wishes 10 remit home the amounts due him, he |
must either purchase gold at the market price
IN paper money or he will purchase commodi-
ties. II bv SO doing lie can realize at home a
nrSer sum than he could do by bnying gold.
goes, quasi premium or bounty on exports
and AN additional duty on imports where gold
II alone received for duties as should ever be
me rule. because 1t is connected with and IL
part OF foreign transaction. The effect OF
rise IN gold then where there shall be do
nestle and an internationa legal-tender cur
rency, Will be to check imports and Increase
exports until par bee restored and this without
contraction or suspension and without pertur-
baton in the productive Industries Of the coun-
try. II places the country in money matters on
a par with foreigners, and precludes the Tor.
= IA "a p.fl
wariare 10 destroy and overwhelm" the produc-
I'VE industries Of 4 rival and debtor country
always been treated by statesmen as one of the
greatest evils that can befal a people" That
Is because II Is evidence and the consequence
Of foreign debt. He proceeds: Therefore il ia
,na spee h payment or specie standard. Is
who study these questions, rs al Indispensable
prerequisite for steady business and good
times" We deny this position in toto-we defy
you or any other " intelligent man" to give one
solitary instance or one plausible argument to
sustain SO baseless proposition. which is in
cquillct with all experience.
Your position is distinct that specie pay
m"nt Is an Indispensable prerequisite for
stIndy business and good times"
Now. We assert. most distinctly and unquali-
nedly. that the truth is the exact reverse of your
proposition. and that all experience has shown
VIZ, n y, m4s PEN steady business hni good
ment; that specie payment is the offspring
ana not NE parent OF prosperity. Controyert
drop your dogmatic" and accept the AK
tomato.
II anything under the sun can be clear II Ia
that under resum ption. with our paper con
y"ruble." and with our foreign debt. every dol
lar Of our coin would belong to the foreigner
who could 10y his dubt, ut any moment when
need or policy should dictate IL scoop up every
dollar of our coin.
What IL the problem NJ specie payment with
aconyrrtlble paper currency
Indrnlahly, II n the ability 10 pay in specie
all demands which may be- made for specie.
mAdci
1t can DE made 10 the extent OF the foreign
Debt.
Then 10 resume specie payment efficiently,
really II D. ust be ascertained with certainty the
extent beyond winch this demand assurcdly
Will not gu, and that We can meet that demand
without suspension, without arrangement of
the currency or CONFUSION of orr productive
Industries. In your whole speech there is not
s1ullh u light upon these vital points, no
shadow OF assurance against the inllietion Of
al these disasters.
You do not pretend anywhere to tell us what
demands may be made. and OF our ability to
meet them.
When our foreign debt ranged from thirty to
two hundred millions Of dollars only, SIX times
the foreigner sought 10 convert our paper into
specie, ana AS often there was a failure to con-
vert as often the sham specie payments were
cAltDheu. "A general SmLsn a hunka