Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1878-10-01
The Currency Question.
Interesting Correspondence Between
Wendell Phillips aud senator Blaine.
Bosrox, Sept. 10. 1878.


BosroN, Sept. 10. 1878.
Hon. JAxEs u. BLAINE:
NV Dear Sir:-Plesse 20 remember
our talk IN the Senste chamber, last
winter, when i urged that The republican
party should meet the wishes Of the peo-
pie. the necessities of business and the
convictions of large portion OF the
thoughtful men OF the nation.
II your party had offered plan ioi
.he governments issuing OF ~! the pa
per note currency q doctrine 70 which
The best European thought Is fastening,
If il has not already reached ~ the
same 10 De legaI tender every here and
for every purpose, and lnser-conyertoie
with bonds for long term and 81 low
rate of interest, ne PTIgscIpGl and IHteT-
est OF ,ChteA ShOtlId b payable ~ com.
thsI would have saved as from the BOuT-
bon South IN 1880.
Whk l hear from republican business
men cOnvinces me that II they could
have been coun IenAnced IN such plat
form by trusted leaders, such leaders
would have carried the country. l DO
not say that such financial plan would
have wholly satisfied me, ouI II woulo
hsve held the country.
II is sad 10 see party which has lead
the world in advanced yet conservative
opinion, quit It's place and fall behind
the best financial thought OF Europe,
olinging 70 obsolete II no. exploded
theories, losing Ihe helm In defence OF
idess that ten years hence men will
smile 81. One great concern with me
is that thus they insure Southern Bourbon
rule tor Ihe next dozen years.
Wealth here Is almost OmnipOIent aud
its organization is very perfect, but yOuil
see that once awake. the masses vii
smash rings, journals and parties, snd
that neither wealth nor the seaDosrd
rules this people.
Yours truly, WENDELL PHILLPs.
AUGUSTA. MAINE. Sept. %, 1873.
WENDELL PHILLIPS, ESQ:
MY Dear Sir-I remember the CONVEX
salion in The Senate chamber ~ which
you refer, and beg TO recall 70 you
possibly more fully than | then stated
The objection 10 the intoT-convertiole
bond as the basis oi our currency.
am aware that many wise men besides
yourself have approved aid advocated
This theory. The power 70 hold a bond
which may st any moment be converted
into lsgal tender notes for It's face value,
and 10 have legal tender notes which may
a. any moment 90 converted into 3 bond
al par, sppears 81 hrst sight attractive.
But no scheme is more deceptive or de-
lusive, and | will briefly state the OBJ
iecsioBs " hich seem 10 me insupeTa0le.
First-It the cond De VI sufficiently
high rate of interest 70 hoat The curreD-
ey even 10 an approximate equality
with cOin-say four per cent. or there
About-the inevitable tendency will be
for the currency 10 run INTO the bend
rather than tor the bond " Dc e1-
changed tor currency; and this with
such force and volume 80 critical times
as 10 compel = scarcity OF notes, an ever
recurring stringency in the money mar
ket and general instability IN Affairs.
SecOnd-H you make the bond OF a
rate so low as 10 avoid the tendency and
the danger Just stated, you OF course
abandon sll idea OF having your curTen-
cy At par with coin. II your iOter-con-
verliOle bond is worth but 10 or 50 cents
Oh the dollar in coin you thereby nix the
value Of your currency az 20 OF 25 per
cent. below par and you Danish coin
from your circulating medium absolute
ly and finally. SO that, If Jour 90 d be
one that will float currency ~ par With
coin il will steadily and irresis,ibly tend
TO contract its volume. And if you seek
10 avoid this result By lowering the rate
OF interest on the bond, you render
equality with coin impossible. IL either
event the scheme would work is OWE
destrucsion-swift and sure.
Third-No device was ever conceived
that would give more complete sdvan
tage 10 unhealthy speculation OF all Hints
thanLhe inter-convertiole bond Severn
times within the last ten years we have
witnessed clock up" OF greenbGeks by
Wall street combinations. With s view q
financial ends, which were at war with
the public good. So promising snC
so profitable were these ends that the
speculstOrs could afford 70 have many
millions OF greenbscks lie idle in order
to torce q stringeney il the money mar.
ket. Your inter-convertible bond would
open the way for this class OF financial
operators to ''l0ck up greenbacks ant
have the government pay them Interest
on the whole amount, while they NIGH
b. conspiTiDg to derange the business o.
q continent. and depress the value o.
every farmers crop in the land In 9th.
er words your theory would force the
government to De an accompliee in every