The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-01-30
Financial Dclusions.


We are in the receipt Of number Of lot
tcrs from readers Of The Sun, demonstrate
ing with us for opposing the silver move
ment, and for advocating the resumption Of
specie payments. The writer's ask, with
evident sincerity, whether we have entered
into n conspiracy with the bondholdcrs and
bankers to ruin the country; and they assert
with unboundcd confidence that an ire
dccmablc paper currency is the panacca
for all existing financial evils.
1t Is OF course rather trying TO our pro-
fcssional pride to discover that We have
failed to present our views In such manner
as to secure assent. We hoped that we had
given reasons for our opinions cogent
enough to convince every one who would
take the trouble to consider them. Our only
consolation Is that We have done the best
we could. and with that we must per-
force be content. We are not in league
with either bOndholdcrs or bankers.
as such but arc willing TO cooperate with all
clns-cs of citizens in securing sound cur
rcncy and financial system based on true
and honest principles. We believe that the
adoption of the silver dollar M the none
tary standard will hc n blundcr. and that an
and snare. That the defeat of the silver
movement and Of the ultimate resumption
Of specie payments will also benefit bond
holders and bankers Is nothing against
those mca -urcs. Somebody will be- benefited,
and somebody will seem to be injured what
ever course Is adopted; and the only qucs-
ton to be considered is what is best for the
country as "A whole In our opinion, it il
best that our currency should be based upon
gold. and be convertible into gold at the
pleasure Of the holder We are against the
issue Of paper money by the Government,
because that Is banking operation, and the
Government should no more engage in
banking than 1t should engage in hotel
keeping or in telegraphing. We are in favor
Of the issue OF paper money by banks, be-
cause they can be made to redeem IL on de-
mand and the banks. knowing this fact, will
bo less likely to issue more than they can
redeem, when redemption is demanded, than
the Government Is. And. finally. we are
against all forms OF Reputation and all vio-
lation Of contracts, whether by individuals
corporations States, or the United States
and most OF all against such violation by
the States or the United States, since the
sufferer is left without any legal remedy.
The man or the company who may do
wrong to another may bc held to answer in
the courts; but against the Government Of
n State or OF the nation no such redress Is
available
We may say, also, In extenuation OF our
failure to convince all our readers of the
soundness Of these views, that many other
wise intelligent men tetray a want OF famili-
arity with financial facts, and readiness
to believe financial falsehoods, which could
hardly have been expected. For instance,
one writer gravely submits to US these prop
ositions
That the business this aay other country
be done without tie aid OF paper will be- conceded
by every one
That all honest and patriotic citizens will prefer the
nations direct Of 70 that VI banks
tons 10 equally evident
That full legal tender paper money will siway. be
Al above par with any metallic currency has been
proved
These assertions, IL Ia hardly necessary to
say, are every one OF them untrue. The
business Of the country could be done with
specie alone, not so conveniently, indeed, as
with the aid Of paper money, but done, new
ertheless Honest and patriotic citizens do
not all prefer Government paper TO bank
paper and the example OF Russia, Austria,
may be made full legal tender and yet be
worth considerably less than specie. How
can we go to work to reason with one who
disputes such notorious facts
Another man writes as follows:
Your fearless defence OF the interests the many
against the few, Who are made strong by Their wealth.
has placed you higher IN esteem than other per
IN this any other country Ny earnest desire 10
retain this esteem urges me to express my surprise at
fhs ALI nj "A flalln
against combination, which regard a. the next wick
ed and effects, succes sful to the Pre-iden
s fraud refer 10 the combination OF bankers 10 make
gold the only circulating medium TOR internal trade and
foreign exchanges Would not this make money dear
and lessen the value Of erty and industry,
Quenty be IN favor OF the few against the manyr
Here we find the often repeated fallacy
that only few citizens will be benefited by
a sound currency, and the great mass in
jured. The fact is that the vast majority OF
our citizens are men who receive money for
their labor or in payment for the products
OF labor. Evidently II they were paid in
gold or its equivalent, they would get what
ever profit there is In being paid in gold
They would get less In nominal amount
than they now do but they could buy
enough more with what they get to make
up for it. That the value Of property and
labor would be lessened by the adoption Of
gold standard is another fallacy. Their
market price might be lcsseucd, but their
real value would remain unchanged.
Other letters which we have received OK
press these same ideas in different FORMS
and If they are to be taken as fair samples
OF popular financial views, it is no wonder
that the Silver bill and the repeal OF the Re-
sumption act find such Jealous support in
Congress. Evidently nothing but long
course Of painful experience can d!spcl the
delusions which now seem likely to triumph
over the truth.
EmarsauSs Grant nnnartunifv