The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-09-04
A letter ON the Finances.
RICHMOND, Va, August 81, 1878

g.
Lynchburg, and / desire, as q plain ielioW-
citizen. to endorse them by saying so IN q
few lines to you. I am no politician, YET !!
feel an interest in the political questions OF
the day. and have voted as Conservative
And especially Go feel, with very many
others, a deep. interest In the present nnan-
cial condition OF our country. Anctnis IN
terest is no doubt heightened ny more OF
less experience in business and some study
Of the questions OF finance: and currency.
We are in state OF great financial de-
,.annement. although many affect uncon-
seriousness of it, some crying out that we
have 8. the best currency the Gorld eUer sd1r,"
while Others appear to know no.better. Inc
interference Of the Government with the
currency and credits Of the people has been
O great error, and not altogether free from
evil intentions on the part OF the authors OF
it. When they decided to take control OF
the money of the country they knew It was
an extraordinary step, and must nave COM
pretended its effect on trade and industry.
Nothing is clearer than that il Government
abridges the privileges OF trade by establish
ing for itself and its own particular bond.
holders the exclusive use and enjoyment OF
the money markets OF the nation, otherlnter-
ests must perish, while those under its foster
inc care will thrive and fatten. AS result,
we have q Government OF wonderful credit,
towering Units own admiraton-with
people struggling against the current OF
bankruptcy aud ruin, seldom experienced
in the history OF the past; and We are told
to turn our eyes on the glorious approach
of specie payments. . Specie was never
known to be more plentiful than paper
money and credits, and il people can't sell
their property for paper money for half OF
it's real value, how much more difficult Will
it he to sell it for specie, OF its equivalent,
when they are obliged to sell to pay their
debts? 1t is plain that commercial distress
precedes suspension, and commercial thrift
and industry precedes resumption. The
friends OF the Government plan OF money
are reversing these rules, for il there is
any revivemcnt Of trade-if The labor OF the
country is happily remnneratire-lt IS past
the understanding OF plain pesple. All adj
NIT that necessity for suspension must exist
before suspension; then must not The
conditions occqsOning that necessity
be removed before resumption can
take place safely and properly? The
laws Of trade are continually tending
to correct temporary arrangements that
will from time arise in its operations. The
preponderat:ng principles oil trade are regu-
lations and uSages that tend to assure the
best results to industry and commerce. and
to maintain with least fluctuations the values
Of property. Such being the needs OF Il
people. the restoration Of specie-payments
after suspension will he inevitable, and
should be left to the processes of commerce
and industry and not to Government. The
wants OF trade are :inscrutable, and are de-
veloped and supplied by means unknown
to Government, which is. itself dependent
cy Of trade. 1t is instituted to aid in en-
forcing contracts, and not to lnvalidate
them or throw obstacles in the way Of the
self-adiusting laws OF commerce. Return
TO specie payments will come in its own
good time, and. enforcement OF it by law
invariably does more harm than good. 4.
You referred to the odous and unjust
tax imposed by the Government Of ten per
cent. per annum on all banking institutions
that emitted bills Of circulation other than
its own issue, the Government currency.
This was enacted as If there would be
any such institutions loaded with ten per
cent. tax to start with. This tax is the key
to the whole difficulty, and the authors
OF the Government scheme OF money
knew it well, and il twenty per cent.
instead OF ten had been required to
secure to them the sole control of the money
of the country they would have made that
the tax rs well. They knew it would be
necessary TO get rid Of all opposition in the
borrowing market to get what they wanted
OF money on their own terms, and thus
they made the earnings OF capital impracti-
cable employed in any way but in loans TO
Government, aud now that they have en-
forced CO. partnership Of money and bonds
the money-IenderS can't draw out.
This tax inflicted great wrong on trade
and industry of the whole county, and on
account, of which we are now suffering,
while the bonds of the Government are at an
enviable price, secured at the expense and
ruin. of the more essential interests OF the
people. Such tax in Virginia would be
pronounced by our courts unequal, uni Just,
and unconstitutional. Why not equally so
il the work OF the General Government ?
II this tax Of ten per cent. were abolished
and free banking allowed the 1ncney-mar-
ket would begin to resume it's accustomed
activity and usefulness. The Government
might have to pay more for. money than
now, but the people at the same time
would have to pay less. The inconveni-
ence to Government would be small
in this, for it is for the most part
only borrowing at four per cent. TO pay
bonds bearing six per cent, and its plan OF
making money scarce to the country but
plenty for itself has worked out this result.
{, 1t would indeed be a poor, benighted pub
lie. that could not discover ready, useful,
aud proper means OF supplying its neces-
sary wants in the nature OF circulating
medium that would not require the seasons
and labor in its production. The tax OF ten
per cent. etfectualIy interdicts all efforts OF
this kind. We are simply suffering from
The restraints OF law. Instead OF restraint
If should be Of a character encouraging and
lust. Added to the ten-per-cent. oppres-
sion-a rule Of Government enforced Oh its
banks-is that they shall not lend money on
real estate. This rule restricts the uses Ct
money, and debars those from borrowing
who are not only the most needy, but who
would offer the best security, What secur-
ity can be better than real estate Herein
again it rids itself Of q powerful competitor
for money and disobliges its citizens in
stead Of serving them, But all troubles
are to be considered compensated by
our having ssthe, best money in the
verdi" as, some say. Money cannot be
any better. than that ! on ! which it is
based. The money OF the, Government
banks is no better than the bonds
on which they rest. The bonds will only
be paid by the people taxing themselves,
and Il is not. likely they win establish for
the, especial benefit OF the bondholders a
preferred creditorship by paving them to
the exclusion Of all other claims on them
selves. There is no doubt but that we
should pay the bonds and interest, but they
should be paid il the same money loaned or
its equivalent. 81, III .,ef,sIss:-,5-s
1t would seem, that Government has no
more to do with furnishing the currrency,