The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-09-29
CARL SCHURZ.
THE SECRETARY OF TmE INTERIOR
VIOLATES TEzE CIVIL SERVICE ow-
DER ANH SPEAKS AT CFNCANaATE.

THE SECRETARY OF THHE INTERIOR
VIOLATES THE CIVIL SERVICE OH
DER ANH SPEAKS AT CINCINNATI.
HE Ravors Hard Money, the Resumptlon
Act, National Banks aEsd Com
traction of the Currency.
CINCINNATI, Sept 28-The following is a sy-
nopsis OF Carl Schurz' speech on national
finances, delivered in tbis city this evening. In
supplementary to the remarks he made In his
speech In CINCINNATI three years ago. when he
sketched the disastrous consequence which the
policy OF currency imitation would bring. Re-
sumption was now within Immediate reach,
but the imitation mania has again broken out
and may we'll meaning citizens. under press
ure Of temporary distress, are seeking relief
end tending toward conclusions which he BE-
public welfare and national honor.
He denied that the panic Of 1873 was the re-
suit OF contraction OF the currency by the gov
contraction Of the currency was between 1855
and 1858. which was followed by several years
of prosperity. There was expansion Of the
followed. The moral Of this would be that
CONTRACTION caused prosperity and expansion
eaussd the e9ap pe \ he dwet Ct ength aaa 5
gambling ga M and spoiaion. but + be Believed new
81 ursy
To furnish that sound foundation, without
which business can have no healthy develop
tiona1 and Individual credit, a sound currency
Of real and stable value and q safe and reliable
sng sg v2 sys are csa s5e nyed oay fd 1hsos bsn Ea
bonds bought them when the nation was in
for the country JUS as much as the soldier
risked his lie. Besides, the present holders Of
bonds had purchased them at high figures from
now held in this country, scattered all over
many man baing held In the West. '.'''NAo' '' 0'0l'
IN thirteen years yat VT haye paid of
and Willingness and stTengthened our credit
He discoursed at considerable length the fiat
silver over trredeemable. paper money. Now,
when resumption was at hand. 1t WAS proposed
to replace tue, money based upon precious
falling Of the schemes Of these advocates of fat
money 1t was no new discovery; Such money
had been introduced in Ching thousand years
country. and was always in all essential features
virtually the samoa paper money based In
thing, and always resulted In depreciation and
Issuing of more money, until. when everybody
be ieved himself rich. the whole fabric broke
down in general confusion. bankruptcy and
ruin.
He would now turn his attention to his Demo
crat friends, who are 2. ssessed with The idea
in the Democratic convention of this State and
several conventions IN other parts OF the eoun-
Try was: Inc resumption Hct 10 D6 F6p6aiG1; +;
the reduction Of paper currency to cease green
backs to be the legal tender for duties on i'm
ports; all restrictions to unligited coin,
5 bank notes r 70 be- Withdrawn ana greenbacks i1l,
issued In their stead; sale of bonds for the pur.
chase OF coin for resump ption purposes to be
be determined uson by | gislation or eonsttu-
tional amendment so as to insure the stability
Of their value as well as volume. It was incom-
Drehen5fble to him now man who thinks re-
sumption Of specie payments at all desirable
ooud adopt such q platform. The government
announces it's readiness to fulfill its promises to
redeem treasury notes on demand in coin pro-
vided It Is permitted to execute the law which
provides for the exemption of 1924 5ooOCo OF
tbng reeyng e he SS United ses of dreet nsa
currency would enab it t. begin and
sponsible for the whole mass of paper money
| its coin resources would not be sufficient to re-
sumo. when upon the Democrats' demand that
national bank currency be withdrawn and
greenbacks, for. which the government is direct
" IesI onsible, bA put in is, place. The demand
to have import duties payable IN greenbacks is
| must have considerable coin reserved and IL is
all the more necessary to maintan adid. the pay
% be- to IN 4egon e eoo sb az s
nation. Confidence would be more shaken
than eyer: Wnen policy 50 insane as to run
ay every % magpabe Ds gan viii Ii hsnee
forth appear possible. The proposition to
rtguiate .a paper Issues By legislation was SO
| serious men could have eyer entertained it.
That the proposition that Congress, by legisla,
tion, Is to be the permanent authority to regu-
late the volume If currency, and. consequent
". the value. is scarcely less astonishing com
ing. as it does: from Democrats who pretend to
No government. he argued, should bs intrusted
with SO tremendous, far,reaching, and tyran-
nical an authority, No Congress should know
needs. Business itself feels and determines
it with certainty. The government has moth
ing to do with the question, but TO see that tie
coin struck In its mints be Of the prescribed
standard OF values, prevent and punish coun-
terfeiting, regulate the bank system so as to
1T II take e o na
without assuming any arbitrary control over
their volume and value It Was claimed that
contrat ton, with all its cOncomifant evils. was
one of the internal effects of the resumption
act. It WIS true that under resnm ption since
1875 the currency has been contracted. butt, 1t
result Of forced operation but natural pro
cess.
He oontroverted the argument that green;
seen the glorious greenback. Silver coin. be
BE- h args end "a used In
tain Itself anywhere in the oivilized world or as
standard of value and unlimited legal tender In
the great transactions Of business.
Referring to the coinage Of silver dollars, he
said the effect y 8 neither good nor evil. The
mints had steadily coined 100000, but nobody
seems anxious for the dollar The bullion
value Of the silver dollar is eighty seven cents
suit Of coming 50 much silver money would be
to drive gold from the country and silver would
remain our only metallic currency. He, how
ever, did not doubt that with the resumption Of
specie payments and the revival OF prosperity
the American people would be disposed to dis
pose Of this question also with more digpas-
sionate and clear judgment. He next took up
the banking system question and the necessity
of q we'll regulated and safe system OF banking.
and enumerated the qualities which he
considered e must must be possessed by bank
State bank system of before the war
with its numerous failures with our. national
banking sys tenn. the latter has passed through
the most distressing financial crisis ever ezDe-
rienced here, and yet not g. single holder OF ma
tional bank notes has lost a cent. The cry
about the un popularity Of national banks comes
from politicians.
He advocated at length the. advantages Of the
national banking sysCe N. and held as an Hndis-
puted fact that it enjoys the confidence of the
business community in a higher degree than
anv other system ever did.
He discussed at length the objections ad-
vancef by the Democrats to the national hank
ing system. and characterized them AS nimsY