The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-26
An Exhaustive Lecture by
Professor Sumner.
RECONCILIATION OPPOSED.
The First Step Toward National
Bankruptcy"


W. II. Whitney, John T. Agnew, August Belmont,
David Dudley Field, A. J. vauderpoe, Judge Curtis,
Fernand di Lucca, Charles IL. Marshall, Henry l..
Clinton, Lawrence rurnure, John McKeon ana Judge
Barbour The lecturer was introduced by August Bel
mont, President OF the Manhattan Club.
In commencing his lecture Professor Sumner said
that the reason why It was unwse 10 rcmonetize
silver had been already strongly presented. II the
opponents Of tho inia,ionists should rely only on
the good sense OF the people 10 countcract
their influence the result might well be feared.
There were Two points OF view from which tho ques-
ton might he looked at--,he economic and tho
political Some wanted both metals used
others wanted silver rcmone.
tizcd and paper withdrawn; others wanted
some arrangement by which silver could
be used for its value. others wanted an unlimited sill
yer coinage, the government, to have the profits Of
coming; lastly, there some who wanted silver
coin above It's value, with free mint
thus practically demonct,ziug gold. Tho last class
tho avowcd aivocates OF depreciation and Initiation,
were by far the largest The question had now
become IA political ono upon which every citizen was
called TO aot undcr hts own responsibility The mea-
sure OF success gained by those WHO wished rononet
ization would become the stepping Stone TO vantage
ground tor q new conflict There was no compromise
In This matter The only safe way would be persist
Observation-Disclosures OF business Gu frm basis
else concession 10 mItlcss Initiation ana depreciation
Tho speaker could other outcome OF the silver
agitation than imitation or Reputation.
TuE PUBLIC CREDIT ACT.
Professor Sumner next spoke OF the stress tha had
been LAID the fact that the Public Credit act OF 1869
covered both gold and silver, tue word ''coin' only
being uscd This option, II II really existed had
been done away with by the act OF 1873 II silver had
increased IN value instead OF decreased, ana tho
hondholders had demanded thor pay In silver tho
demand would have been considered ridiculous
There were some predictions of dccluc In silver, but
no man then rose 10 an appreciation OF what had
since come to pass. That the validity or II
law depended on tho continued consent OF popular
majority was q new law. There was an argument
that tho act OF 1873 was not binding because tho
creditor never agreed It. But the Of 1873 was
only simplifying the form Of tho dcbt and the
creditor never objected TO II. Tho act OF 1873 had
taken away from us option ,lbich to-day
would be valuable If could be honoraby used. But
II was Impossible to 30 back and the law
the avcwcd purpose OF using IN obsolete cOn, which
would afford profit as against credtors without deep
national dishonor No hnancial egsatIon ought
to be repealed, because rights vested IN 1t I'M
nlediatey arose on It's passage. This was the
ncgnning Of all the national troubles, tho nippant
haste with which the hnances were tinkered was The
sincs occurred. We must now bear tho con.
sequences Tho doctrine that this nation could
Try experiments and when they turned out
badly 20 against them would not stand
either In politics or economy: Those who ,hink tho
remouetzaticn OF silver would DO easy expediont
had conception OF what IN the way 81 pcrnia-
ncnt consequences 20 puoic and private credit,
the accumulation oil capital the wages OF labor the
welfare Of the whole living generation. As question
fpoltics ~ should be considered whether It was OK.
DculeDt, and, u0 question oil economy, whether II
would pay. Professor Sumner denied that It was ex-
pedent, and affirmed that Il would not pay, proceed
Ing 10 substsntiale h S assertions by argument
DEMOCRACY A STANDARD OF INTEGRITY.
In the lrs place, continued the lecturer, tho moro
distinctly democratic nation Is the more did Its
represent the Integrity and honesty of tho
national character The position taken by the Latin
union Is index Of the financial integrity they mean
sustain 1.-THE United States should rope act OF
1873 with the distinct object OF paying her debts
In debased metal II would involve he existence OF tho
national honor tho credit OF the American market
were destroyed the exchanges would be uDiavorable
CustomcrssQ IL VIC, as q nation, should take the
step PROPOSED, with the aims and animus II IN
wolves Il would give Us a blow from which
We would not recover IN long Tine Second,
with regard to the finances. We should destroy tho
borrown ny power OF the nation least reduce II 10
the level Of n third or fourth rate Power Our own
citizens would los. confidence In the government. |
have heard 1t said We shall not want 10 borrow any
more but no ono can take that Tor granted. II tho
IN four per cent obgatioos Therefore, In view Of tho
interests OF the government, IL would not pay
monetiZc silver.\ Third, ms to Its political mpor.
lance We are once more confronted with quesiion
upon which there Is sectional divis on; Lrst, that
the debtor anu the creditor, then that employers
and Iaborcrs The war left US some logacies OF hari
questi which we have yet 10 solve. The financial
question IL one OF them IL involves test OF Tho
stun we arc made Of far greater than any shown in
the war. The further wo cut away from tho
basis OF truth and honor and public credit
the moro passion and dlscord It viii involve
grains we simply deprcciatc paper per cent We
20 into voluntary bankruptcy, paying ninety cents
the dollar, ana set ourselves last so far on
the road to ruin. We keep the elements OF discord
awake and active and made stronger by the victory
they have won is not politically expedent then 10
adopt any sncn measure.
WHAT MUST ArrRguENDRD.
The real strength OF tho silver movament los In
tho vast amount OF the private indeb cdncss winch
has bccnEontractcd during the last fifteen years |
shsli present view OF the consequences which must
DO apprehended nut shall rot a,tcmpl follow tnese
consequences lar into detail. cannot see any ono
but the bullion brokers who quite Of gam by
the proposed measure We have before Us d most
difficult task, VIZ. ITO restore deprecated currency
TO introduce lis question at this time to compl-
cate our diiHcultcs still further. II money
Is In confusion ami disorder only those
who make special business OF studying
It can understand It's laws. Under such circumstances
II Is only those who have TINS particular knowledge
who can win the profits. We have heard great deal
about middle men from those who are now strongest
favor OF silver, but the fluctuations OF tho
currency arc the nurseries OF middle men, simplicity
the poor man, the latorcr and the small capitalist.
while instability and fluctuations arc tor
those who 1--we by inancieriug." The sound.
business Is that which compreaends large trans
actions on narrow margin OF profit, aud hits
business is impossible without the most secure
measure OF value. IL is childish for any one to seek
his prosperity by means which will overthrow .he
PROSPERITY Of the whole. Capital VIII be even moro
timiu tban IT is now, to say nothing oil ITS probable
expectation.
THE RELATIONS OF CREDIT
Even from the debtor standafd 1t will not pay TO re.
income is a creditor. Every man who lives beyond
his income IL debtor. Hence all persons
whose assets exceed their liabilities are cred
tors and those whose liabilities exceed their
assets arc debtors. The antasonism Is uotwccn
those who have nothing and those " no have some
thing. This brings the issue within very narrow
limits and wo should not he long In reaching d correct
settlement Of this controversy f It not that
people think we can sell Without buying. The whole
community Is bound together by relations OF
credit Oh every conceivable Kind. Instead
OF being single simple transaction, acting only onco
and without consequence II would be Ike thrustiIg
bar OF iron through delicate and complicated picte
OF machinery. IL would throw ali the industry aud
trade OF this country into confusion. The bow TO
credit would spread ruin throughout the en-
tire community. Furthermore, u dobtors wcro
unable to pay ninety cents on tho dollar tor
their debts IL would be necessary to have the nircty
ready at once order ~ tho advantage
The solvent Debtors therefore, Instead OF gaming
duction IN their debt would gain whatever on The
principal and would nud the rate OF eascd
whenever an opportunity would come. Here, also,
wo find why the present depreciation must be trca
as the first step toward national bankruptcy. Tho
depreciation once begun II goes on downward. if
90 on with iDiation there will be
moro debtors ten yours hence than there
now. have one more reason why IL
will not pay; that is II would give silver only as a
standard OF value Tho consequence would be TO
mi nj of In w pa NM