New-York tribune., 1878-05-10
LETTERS FROM THE PEOPLE.
RETIRE THE LEGAL-TENDERs.

THE DISASTROUS FINANCIAL MISTAKES MADE SINCE
TUE wAR-sHALL THEY DE RgPEArEDf
To fke Edtfor OF rae Trtbune.
SIR: Ever since the time of Secretary McCulloch
our National Government seems TO have abandoned
the care of the public finances to circumstances,
and to have had no policy of its own. 1t was the
great mistake of General Grants Administration
that il committed its fortunes 20 the management
of selfish and designing politicians, who. quite IN
equal to the administration OF financial affairs,
drifted along apparently without plan or method
especially regarded sound condition OF the cur
rency and the resumption of specie payments.
With the collapse of the Southern Confederaey
perished the paper money it had created; and well
for us that it So for at that time the codntry
was flooded with bonds legal-tenders. and other
evidences of credit and the condition of our
National financial affairs was appalling in the
extreme. 1t was admitted by all that this condition
of things, engendered by war and paper money, could
not and must not iast but that to prevent general
catastrophe there must be contraction in the cur
rency and, consequently, general reduction in
prices, with view to resumption OF specie pay
ments as early as practicable. Public sentiment
was prepared for wise and salutary measures to
this end and statesmen such Chase and McCui-
lOch favored the repeal of the legal-teDder act
and failing TO secure this. they recommended the
gradual retirement of the greenbacks; but through
a let-alone policy the part of state aud National
Legislatures the Wall Street financers and bankers
had become aversc to any contraction that would
interfere with the new and splendid enterprises for
acquiring wealth of which they were the agents
Mammoth corporations, new and old resisted all
attempts to bring about more wholesome con-
diton. insisting instead that the business Of the
country should grow up to the existing volume of
the currency. The public press also joined in this
cry, and there was found no serious organized
opposition to it anywhere. So all fell to planning
and schemng on TVS basis, and the Government
was passive, with no fixed policy OF Its own Great
public and private enterprises of all kinds swallowed
up enormous resources. and the exhausting process
went on of growing up to higher prices and greater
extrayagances, until those huge concerns became
unmanageable, and a general collapse of them en-
sued involving the rum of banks, bankers, railway
and coal companies. with the loss OF hundreds OF
millions of dollars. followed by general and IN
eyitable paralysis of the most important industries
of the whole country But for this inOrdinate use
of paper money the unprincipled rings could never
have been formed that plundered great cities,
aud salllcd the load of their debts upon our
shoulders.
During all these years the different branches of
Government have drifted on this uncertain tide of
affairs. prey to politicians and dishonest financiers,
and bat for our unparalleled natural resources such
q lack of governing capacity would have plunged
the country into hopeless ruin. Though with an
ample revenue, and large balance i'll our favor III
the foreign trade, this let-aone policy is still adj
hered to- the legal-tenders remaining as they have
always been the great obstacle to the early and safe
resumption of specie payments. The recent spectacle
of members Of our Government running about Wall
Street TO ascertain whether resumption is possible
is humilatlng in the extreme and may well bring a
blush of shame to every honest check. The National
Legislature trhing with the vital interests of the
country seeming to BE- content with securing the
material interests of few, and the selfish objects OF
miserable politicians and fnancicrs.
Are we to make another effort TO establish business
and prices OIL the basis of another letalone" and
" grow-up-t he-prcSent-paper-money" policy, or
shall the Government gradually retire the egal-ten-
ders and thus, while setting a wholesome example,
insure in due time general resumption on n sound
basis White this question of resumption is un-
titled business is at stand still. some branches be
ing paralyzed and others forced into liquidation.
Our banks are left at the mercy of this drifting
policy. and where it will land them and us no one
can tell Ere long it Will be too late, for some at
least ever TO resume, unless Congress acts IN more
rational way regard to the financial interests OF
the country H.
Ner- York, May T. 1873.