New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-07-28
WASHINGTON.
FINANCIAL CONDITION OF THE COUNTRY

INTERVIEW WITH AssIsTANT-sEcRETARY Moor
mcK-THE GOVERNMENT NOT CONrR ,CTING THE
CURRENCY-THE LABOR TROUBLES WILL DELAY
THE CIRCULATION OF IDLE MONEY.
WASHINGTON July 27.-The Infationists are al
ready beginning to assert that the present outbreak
of railroad and other aborers is the natural result of
the sharp contraction of the currency which has
been caused by Secretary Shermans financial policy.
and demand that contraction shall cease. Judge
Kelley OF Pennsylvania, one of the high priests of
that school of fnanciers, has been in Washington
this week, and his face has worn that look of
satisfied contentment which all prophets of
evil carry when they think that their pre-
dictions have been verified. Quoting from
the New-York Bank statement Of last Saturday,
which showed n decrease Of 1871 100 in loans, g.,
300 in specie, and $2,140,300 in deposits, he
asserts that these figures show sharper contraction
III the circulation of the country than has before
been witn6 ssed for long time. III" he says, we
such results from the slight disturbance caused
by the payment of two per cent on the S6O,00OOOO
subscription to the bonds, what may we expect
when the bonds actually have to be paid forp
The complaint against the policy of the Secretary
of the Treasury, and the assertion often repeated
that Mr.. Sherman Is forcibly contracting the cur
renoy, and that this j. the cause of the recent
strike, and their attendant destruction OF life and
property. referred to by Che correspondent OF
Ing TRIBUNE to-day in conversation with rs
sistant-Sccrstary Mccormick. "Why," said
he, "ths is simply absurd. The only contrac-
tion OF the currency is by the voluntary retire
mont by the National Banks Of circulating
notes that they cannot use. The United States
is not contracting the currency Ia any way, except
that when National Bank notes issued, eighty
per cent of the in United states notes Is re-
tanned This process leads to q general average isste
- 4 IA of .. f.f
trlWal of $500 900 If United ates notes. Every
dollar VI fractional currency IS replaced by SILVER
coin and silver coin has also been isSu la excess.
Any person can have bank notes upon d-'oSit OF
United States bonds, which may now be had
at psr IN coin. TO show that there ia no
contraction of the currency, it appears from
the debt statement that the amount Of money de
posted with the Government for safe keeping, with
out interest, was The FIRST OF July S5l,v0OOGo,
and on the 26th of july THOOOOOOO
80 that nearly Onc-ih Of all the United states notes
Is voluntarily deposited II the Treasury without in
tcre-t by the Owners. The amount Of such deposits
is steadily Increasing"
Has the Treasury Department any intormation.'
asked the correspondent, that There is anywhere IL
this country a scarcity Of currency y None what
ever" was the reply Money j. accumulated III AL
the banks and AT all the money centres OF the coun-
try and interest on commercial paper is lower than
il ha- been for years. There - no contraction oI
CURRENCY but the greatest abundance and excess. II
is idle currency and nOt want OF currency tat Is
the trouble"
Your official position gives You exceptional OPP
uortnnitv 10 obtain corr ct information. What, IN
yonr opinion are the causes of the present toubesP
was the next question of the correspondent.
"Tbere are several" said Mr.. Mccormick. FIRST,
the want of confidence clscd by enormous losses IN
fAI ff
great imitation second, the Ealing oil Of the de-
maud for manufactured products, especially Of lron
This is no, caused in any respect hy the
want of currency, but by oyer-production,
not only in this country but in all the markets
of the world The present distress j. general among
commercial nations, with this strong advantage III
favor Of the United States that here orr farming
interests are in the highest degree prosperous our
crops are good and our markets are excellent,
mainly because Of the war IN Europe. III COM
parson With other nations our financial coh'A-
tion is far better than any other and ho"'
inst IT the time when our prospects are
most hopeful, this strike OF labor
ers against labor This effort 81 Inen now en-
ployed against men unemployed, TINS refusal TO Al
low abor.rs to make their contracts forces dis
trcss and ruin merely that certain men now IN en-
nlovment should be kept IN employment and paid
higher wages. In the natural course 81 Things,
when crops commenced u move wages would nave
advanced and soon the money set IN motion by the
croD. would quicken all industries and give en-
u,oyncnt to many idle people The money no"
living idle is ready for active Us" the moment II can
be- safely employed. long period oi detection was
about to be followed with acuylty and Industry.
Sr,ely nothing has happened in the history Oh man
kind 50 plainly injudicious as the present
movement 10 prevent lahorng men from work
inc. Even If they were asked to work for
insufficient wage. they Lad right 10 prevent other
noopl from working. The fins. effect 81 their move
mont j. 10 make it still more dicnit TO ct food and
labor and TO bring distress upon the very class OF
people TO which they claim TO belong
There is good reason to believe that the opinions
pr,,,ed As above by MISUNDERSTANDING McCor-
mick are substantially in accord with hcso held by