The New York herald., 1879-01-03
GARFIELD ON FINANCE.

OPENING OUR GATES TO PRospERIrY-wHY RE-
SUMPTION SHOULD BE MAINTAINED AND HOW
sTr CAN BE DEFEATED-THE TERRoRs OF GOLD
aAMBIING-RETAIN THE NATIONAL BANKS.
CHICAGO Jan. 2. 1879
Congressman James A. Garfield made an excellent
speech here tonight on the subject of our CONNER
cial and political difficulties of the past
seventeen years and the resumption of specie
payments. A large number of merchants went
to hear him. and loudly applauded the numerous
sensible points made by the speaker. He has been
visiting Racine the guest of the Commercial Club.
Of this city. He appeared tonight at Farwell Hail.
at the instance Of the Honest Money League.
He introduced. amid considerable ap-
plause. by Judge L. d. Shorey At the outset
Mr.. Garfield said that 1861 and 1879 the opposite
shores Of that turbulent whose storms
seriously threatened with shpwreck the prosperity
the honor and the life of the nation; but out of the
night and tempest the Republic has landed
on the shore of a new year, bringing with
it union and liberty, honor and peace He
insisted that resumption would be maintained.
FIRST because national honesty, good government and
the prosperity of people demand it; second. be-
cause we able to maintain 1t. The speaker dis
cussed the question of national State and municipal
oblgations that the sanctity Of contracts was the
foundation Of all industrial prosperity, and that the
violation Of this sanctity the cause of
incalculable injury to people. He declared
the greenback was a loan without interest
forced upon people by the overpowering
necessities Of the war; the
a radical departure from the traditions, the theory
and practice Of government 1t was not intended
to create permanent system Of paper money. The
greenback was promise to pay COIN it was gov
ernment due BILL and the moment the government
was able to pay refusal became dshonor and repro
duced its injustice in every interest. public and
private Tracing the history of speculation in
gold and the extreme depreciation Of the legal
whole period of decline the creditor was wronged by
under payment, and during tho whole period Of APP
preciation the debtor was wronged by being COM
PEELED to make overpayments. During the seventeen
years of suspension the payment of every debt in
ficted wrong. either upon the creditor the
debtor; and thus the whole machinery OF credit was
converted into an engine of injustice This will always
happen when the two functions Of currency are Of
unequal value.
GAMBLING YORK.
Mr. Garfield then touched upon the Wild reckless
speculation which born of the fluctuations in the
currency. The Gold Exchange and the Gold Clearing
House OF New York will be remembered in history
the Germans remember the robber castles of the
Rhine. whose brigand chiefs levied backmail upon
every passer-by. 1t was q business that never
added o farthing to the national wealth.
but in which everything gained by
lost by another 1t was simply betting on what the
difference between coin and paper would be. and then
employing every device to win the bet by increasing
the fuctuation. In New York alone for many years,
daily average Of sixty millions of capital with
drawn from industry and invested in this reckless
business. It's fascination spread to all parts of the
denly rich by the ruin of another If these losses
had been confined to the gamblers alone the
serious. But all our people who were engaged in
honest industry, all producers and consumers of
weasa eS %aoo s % great
volved in ruin thousands Of firms who were follow
ing legitimate business. As all foreign trade
measured by the coin standard the business Of every
importer and exporter of merchandise at the
mercy Of the sbulls' and 'bears' of the Gold
Room whose chief effort was, by fair means or
foul to create sudden changes in the price of gold
To insure himself against this additional risk the
importer compelled to increase his prices. The
to the retail dealer until ut last its dead weight fell
upon the consumer of the goods The exporter
lower prices for products to be sent abroad
and the whole enormous cost of seven
teen years Of gold gambling has been paid
gambling not confined to gold. The nabit en-
gendered by fuctuating currency which led men to
sell what they did not own and borrow what they
sold, was carried into every department of trade
fright. ambitious young men, lured from the farm
and WORKSHOP sought their fortunes in the seductive
chances of the stock board in the mysteries of
"optons,' sales and corners" in wheat The popula
ton many agricultural districts actually decreased
Tho cities and manufacturing centres
crowded. Some leading industries, notably railroad
building and iron making were greatly overdone.
As speculation increased and credits expanded the
raised that there not currency enough; that
the small measure of contraction effected by Secre-
tary Mccullough had destroyed the peoples money
cry for more rum to steady his nerves, already shat
tered by drink.
QUESTION OF MAINTAINING RESUMPTION.
Mr.. Garfield said must not assume that all
danger is past. Resumption can be defeated in one
of two ways-rst. by great and unexpected calamity.
like war; the failure OF our crops, which should
turn the balance of trade against u.s. or second, by
the hostile legislation of Congress. The proba-
bity of the former is too remote to be seriously
sdered the danger OF the latter must be prevented
by the intelligence and vigilance OF people.
Though the opposition to resumption has shown
great strength In Congress- even down to very re-
cent date, yet now that par has been reached, do
believe will be longer assailed by direct lesla-
ton. The instinct of selfpreservation will probably
lead politicians to abandon such efforts. The
real danger lies in indirect assaults. which
may. be made in several ways II the ex-
penditures of the government should be in
creased by large appropriations for the various
schemes which are urged upon Congress. as to
produce deficit in the revenues, rather than levy adj
dtional taxes Congress will be tempted 10 issue
grccnbacks, and carry expansion to point at which
resumption win break down Rigorous economy,
aud a persistent maintenance of revenue suf-
hcient for necessary current expenses, and for
the sinking fund. will be our safeguard
in this direction. The most dangerous. in
direct assault upon resumption is the attempt to
abolish the national banks and substitute additional
greenbacks in place of bank notes. This effort will
call to its support the sentiment which to some
tent prevails against moneyed corporations Should
the attempt succeed IL will inevitably result in sus-
pension OF specie payments. While the Treasury,
aided by the banks, can now easily maintain at par
the outstanding volume of greenbacks. resump-
ton would unquestionably break down IL the
volume Increased $500. 900. We must
debate the bank question with our eyes open to the
certainty OF this result. And this ought to be deci-
sve against the measure. But besides destroying
resumption, IL would be most radical and danger
Gus revolution in our system of government. The
substitution of greenbacks for national bank notes
is proposed the theory that the Treasury should be
converted into work shop for the manufacture and
sale of money! hs. only quality but is quantity
and distribution shall depend solely upon the will Of
Congress. To force citizen into the army and put
him In the front Of battle without his consent was
thought by many violent invasion of private rights