New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-08-29
MONEY AFTER THE WAR.
SECRETARY FOSTERS REPLY TO REPRE-
SENTATIVE DAVIS
THE TRUTH ABOUT THE CIRCULATION IN THE
FLUSH T1MEs"-THE sEvEN-THIRTY NOTES
LOAN. AND DID NOT CIRCULATE.
fBY TELEGRAPH THE TRIBUNE
fpY TYLEGRAPH TO The TnIBUNR-

4
tBr TELEGRAPH TO THE TRIBUNAL
Washington, Aug. 2s.-United states Senator Allen
OF Washin gton in letter dated August TO- caed 'he
attention Of Secretary Foster of the Treasury, 10 an
nnspokcn speech published In The Record OF August
O. purporting to have been delivered IN the House OF
Representatives August 5. the last day OF the
session. by Representative Davis, of Kansas. Mr.
Davis is member OF the Peoples party. In the
sketch of himself which he furnished TO the compiler
of the "Congre Directory" Mr. Davis m0destly
described himself as " an able and fearless writer on
economic subjects"-and fearless" he certainly ap
psars to be- according the speech referred TO- which
has provoked a, crushing rejoinder from secretary
Foster in letter to senator Allen. under date OF
August &c, which Is made public tonight
In the speech Is embodied letter pnrportng 10
have been written by Mr. Davis on Apiil IA to sec
retary Foster. but which was never received by mm
In fact he was not aware of the existence of such
letter until days after 1t was published IN Ihe
Record, Of August 5. In this letter the able and
fearless Mr. Davis undertook to show that Secretary
Foserls statements in his annual report for 1871 In
respect the amount OF money IN circulation In the
socaled flush times which followed the Civil War;"
were variance with the facts. AS the Davis speech
appears to have attracted considerable attention. ana
as the assertions therein made are being repeated by
Third party orators in different parts OF the country
Secretary Foster has taken the trouble 70 prepare
full and complete reply in the course OF which he says
Mr. Davis says that the contention is mainly as
to the status Of the thirty notes" and that III
tIcv did not CIRCULATE as money the Treasury reports
Of 1865 and 1866 should no have so tabulated them;
and Senator Logan should not have so quoted them.
| am unable to find in the Treasury reports OF
1865 and 1866 any statements tabulated or other-
wise which include the seven thirty notes among !he
items OF circulation. The Treasurer OF the United
states made mention of them In his reports o OF
currency for 1865 and 1866. They were not issued
by him as money, but by the Secretary OF the
Treasury loan The Controller of the Currency
made a statement OF the circulation for lsoo' IN
which he mentioned the and two,year notes and
ST notes ten omgh o me OF them Which
he estimated the amount In actuai clrcuiauon.
ms o secretary McCulloch published table OF the
paper circulation for October 81 1862 WHICH 0" H
up 500 and he added to 1t 1000
compound interest notes in circulation .-.u, st.,
table lie and aliO from his estimate though he expressed III.
opinion that many Of the small denSminauGns the
s shsm Tss
only about 100000 of that Denomination issued:
smanv Of them" were in circulation does not afford
very broad ground Tor the asSeruoh ula "nor
seven-thrty loan Of S73ooooooo was useu rs no'ieS
Secretary Foster then points out that Mr. Davis has
sarbed the statement quoted by senator Logan from
the reports of Secretary McCulloch by failing 10
separate the seventhires from the items OF money IN
circulation which done by both Secretary NC
Cullooh and Senator Logan. Secretary Foster theh
continues
am unable to account for the strange statement
respecting the seventhiry notes attributed to Cen
er spinner ex-Treasurer OF the United states. ne
seven-thirty notes were intended prepared lssH ana
used used as money No statement could possibly be
were not Intended as money, but as loan III, Tbs
is made plain In circular esIeH 20 bank cers
throughout the country. The opening paragraph Is
Desiring IN avoid any further issue Of bonds the
interest of which is payable In com or nir1ue, ,,
don TO the seventhiry notes now offered to the
public , l.. ..o ,,.,,o. as a ,oan
II they had been intended as money secretary
would have simply paid them ont mt 70 sas
without asking the pnSGa as Tey
printed on sheets OF paper which measured about four
Years after date and each note had attached fye
coupons for semtannual payments OF inIereSstt have
been was ever prepared by this Government: me
seven-tMrty notes were not issued as 'd ont in
scttIenent Of demands upon the Government Inc
thirty notes not disposed OF IN tis way
They we're s ns sGd and 10 accrued and the
ment paid commission TO the agents WIN "e'0 VII
is probable that loan negotiated by the Gntea
States so widely adveT b co1 aS wsS spent
snmS For newspaper advertisements and special
notices and many thousands OF dollars We're All
this exnenditnre would have been unnecessary II inc
notes had been ISSUED as money. the people we're
asked IN lend their surplus money 10 the
taxing these notes as evidence Of the loan ana ,he
newspapers Of that period were full OF appeals 70 ne
Tatrnism OF the people. and arguments 10 snow hao
ese notes 81 were safe and profitable Investment
There talk in those day. about %He sne we're not
@used5 as money The CIRCUMSTANCE nhoer 70
they issued should afford 90 nsed They were
issued only TO persons who had money 10 hi nre
we're daily bought AID sold at pce rr ~f lseS
hardy hardy ever ere 'G o as e dates mentioned Mr.
letter they quoted at prices varying ns,v f ex
10 . a In 1O9 but I am not obliged 10 rely eA-
csivelv on this kind Of evidence. however complete
it be- to show that anese are s in the
files Of this Department and they show aar,r
hat they have been used as So o,asr investment
ues Davis saws that in Secretary Fessendens report
i Is stated se,s that caused Hxsr to "f be pad
Soldiers in the field. What Secretary fessenucn 'a'u
"As More fully to accomplish his purpose the Secretary
resolvd TO avail himself Of wish expressed ny msny
officers and soldiers thr Tacev ,f h
Of small denominations. He was GrannsG ~
i INA. n"ut orr gallant soldiers In many instance Is
no, cny receiving them with aiacrity pu, pn,tr
,neT osnng MONEY to the Government The whole
amount Of notes thus disposed OF e1ure@ aat salts
fsro in stating his belief that the disposal thus mdos
was not only relief to the Ir,%s em D", snfe and
valuable Investment and an easy mode OF t'H'''n''''S
lu THIS 70 satamcnt is very from bearing the ln
depreciation implied by Mr. payis mJ ENLISTMENT
soldiers took them as sais ahH their Country by
ioonng money 10 the Government ne pa! n ,aa't n
aid not in the true sense "pay out 'heSe "0''' ~
the soldiers. o.o tho fables which
Mr. Davis asks 10 compare tne ,np'v McC'och
had slrcady done before publishing the ,tstan
Which Mr. Davis criticised. and had Io'I H for
,r,i difference between the two. III ms lcP t.ou,a
1865 Secretary McCuloch said that ne Paper Year was
lion Of the United states October 81 OF nn' ga
fi,ed states notes and fractional currency 80 10
o Of the National bank Ing ISSUES Of State
banls converted into National banks, * ,o
total s7oie1 OBS ". added tha na 'fyre notes
ond cou,nound interest notes Of which ne
safe TO estimate that S50Oooooo were u. u, nas On
nc currency making total Of S73A 2io, ,vnio,,on
smother mage OF his report he said that the :"
Ind q reached the startling amount OF up""'" -
800 600, 600" 49, .,o ANNA
secretary Foster then quotes freely from the