Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-10-10
MMisftlIaneous. g
Correspondence between Wendell Phil
lips and Senator Blaine.

Hon. JaHses G. Blaine:
My Dear Sr-Please to remember our
talk in the Senate chamber. last winter
when urged that the Republican party
should meet the wishes OF the people, the
necessities OF business and the conviction.
OF a large portion OF the thoughtful men
OF the nation.
IL your party had offered a plan for the
Government issuing ali the paper note
currency a doctrine to which the best Eu-
ropean taought Is Fastening, If 1t has not
already reached IL. the same to be legal
tender everywhere and for every purpose.
and inter-convertlble with bonds for long
term and At a low rate OF interest. the prln-
cipal aud interest OF which should be pay
able In coin, hat would have saved us from
the Bourbon South In lSsO
What | hear from Republican business
men convinces me that II they could have
been countensnced in such a platform by
trusted leaders. such leaders would have
carried the country. do not say that such
a financial plan would have wholly salts
f,d me. but 1t would have held the coun-
try.
1t Is sad to see a party which has led the
world IN advanced yet eonseryaliye oplga:
financial thought of Europe, clinging to
obsolete If not exploded theories, losing
the helm In defence Of ideas that ten years
hence men will smile a.. One great con-
ceru with me is that thus they insure
southern Bourbon rule for the next dozen
years.
Wealth here is almost omnipotent, and
Its organization Is very perfect, but you II
see that once awake. the masses will
smash rings. journals and parties, ard that
neither wealth nor the seaboard rules this
people.
Yours truly, WENDELL PHILLIPS.
AUGUSTA, MAINE, Sept. %, 1878.
WeHdeH Ptalips, Esq:
Ms Dear Sir-I remember the converse.
ton In the Senate chamber TO which you
refer. and beg TO recall 10 you-possibly
more fully than | then stated-the objec
tions TO the inter-convertible bond As the
basis of our currency. am aware thai
many wise men besides yourself have ap
proved and advocated this theory. Tn,
power TO hold a bond which may at any
moment be converted into legal tender
notes for its face value. and TO have lega
tender notes which may at any moment bt
converted into bond al par. appears a
first sight attractive. But no scheme II
briefly state the objections which seem tC
me insuperable.
First-lf the bond be OF sufficiently higf
rate OF interest TO float the currency ever
to an approx innate equality with coin-ssy
four per cent, or thereabout-the inevita
Bile tendency will be for the currency tc
run into the bond, rather than for the bono
10 be exchanged for currency; and THU
with such force and volume at critica
times as to compel scarcity OF notes, al
ever-recurring stringency In the money
market and general instability In Affairs
Second-If you make the bond of a rate
so low as to avoid the tendency and th'
danger just stated, you of course abandon
all idea of having your currency at pa
with colo. II your ibter-convertible boDt
is worth but 10 or so cents on the dollar IL
coin. you thereby fix the value Of you
currency at twenty or twenty five per cent
below par, and you banist coin from you
! circulating mediaW absolutely and finally
SO that, If your bond be one that viii
float a currency at par with coin 1t VII
steadily and irresistibly tend TO contract 1t
volume. And if you seek TO avoid this re
| suit by lowering the rate OF interest on tn
boEd, you render equality with coin impos
sible. In either event, the scheme woult
Tbird-NO device was ever conceived
that would give a more complete advan
tage to unhealthy speculation OF all kinds
| than the inter-converiible bond. Severa
| times within the last ten years We have wit
messed ..lOcs-u up" of greenbacks by Wal
street combinations. with a view to finan
| cial ends, which were at war with the pub
| lie good So promising and SO profitabl
were these ends that the speculators coul'
| afford to have many millions OF greenbsck
| lie idle in order to force stringency 10 IN
| money market Your inter convertiol
bond would open the way for this class Q
| financial operators to ''lock up green
backs and have the government pay then
| interest on the whole amount, while the!
might be conspiring to derange the bus
ness OF a continent, and depress the valu
Of every farmers crop in the land. In 9th
| er words your theory would force the gov
ernment TO be an accOmplice 10 every gam
bling scheme devised in Wall stree
against the peace and prosperity OF th
country.
Fourth-Every year as the spring bus
ness closes and summer comes upon ui
there Is a vast accumulation Of money tbs
lies idle for three o: four months At the
uancial centres 10 the vaults OF the banki
In the safes of capitalists, In the treasure
of railways, and in the strong boxes OF II
surance companies. During that period
nearly one-fourth of the year-there nj
from one hundred and fifty to two hundre
millions of idle dollars in New York an
the other great money centres. and thes
dollars sll belong to rich men. Your IL
ter-conyertible bond would provide an n
mir able mode for these capitalists TO tAk
a large amount Of interest from the Xo'
,rnment at season when they cannot "
il from any other source. But questio
| wbether it would be quite fair TO tax IL
whole people during the hot months
summer in order to insure to the wealth
capitalists of the country good incoT
on that large SUN Of money which woe
otherwise be Idle while they are enJoyin
| the mountain air and the sea breeze.
F1ith-The intoy-convertable boud Wosl