Year: 1868

| tutes the measure OF the yalue IN ali c"mmercal
paper and OF al the salable commodities OF that
country a5 wen. CON N to commerce what the
balance wheel Is to watch or the sgoyernor' TO a
steam engine-it Is check and a regulator If il is
not always the measure OF all commodities 1t GER
tanly adjusts their price and relative value To each
other by It's own standard


An engine without governor" In put In motion
would run on uncnecked from fast TO faster and


faster sti till at length by the force OF centrifugal
power, It's wheels would burst and the fragments
would ny Off In tangents. system OF national and
commercial credits that has not this gold gov
ernor may In times OF small credits and with be-


lief that such governor does exist move on for


time In seeming security But the unerring and in
exorabe laws OF commercial adjustment cannot be


long set at naught and sooner or later the sure pun
lsinent Tor their violation VIII Overwhelm c0mnu-
nites when, unfortunately, the innocent and the
guilty will suffer alike IL Is to guard against such
commercial disrupt0ns and universal "burst ups"
that the gold check Is indispensably necessary.


lou go on to say that you 'believe that the con-
2, S public and P


say seventy-dve cents on the dOar would at put
US on sale footing and liberate two hundred millions
OF useless gold now held by those who are obliged
unwilngy 10 use II In paying duties and interest
tne public debit You state IL as your opinion that
"ths Communication would not impair the validity OF
contracts as We cid by suspension because 1t would
assuredly give creditors the value purchas-
ing power they claim though the number of dollars
Now, II 1t is right to force by law OF Congress
such Communication scheme to pay seventy-fve per
ernnent so that private debtors may thus ray their
creditors, then 1t would seem to be equally right for


e government itself TO pay its debts due Its credit
ors In the same way.


Such compromise would, at blow, strike out
one quarter OF the entire indebtedness of the
Try. II the government should avail themselves OF
sucn an eXpedlent the national debt would be re-
duced more than $6000o0,000. Would the world
think this HONESTY The proposition that you make
to apply In the cases or private or individual debts
IS substantially ana practically the that pro-
posed by General Butler for the payment OF the pub
nc deD Yours has the advantage OF his In this:-It
fixes the value OF the governments promises to pay
at seyentynve cents on the dollar, while his as l
understand 1t, would leave them rs an uncertain
amount that would probably In q short time carry
them down to a very low figure. II this IL not re-
pudatlon 70 the extent OF at least one quarter OF
the amount Of all our debts 1t comes near To IL
tnat II would puzzle the ingenuity OF sharp lawyer
to lind difference. AT hest 1t Is the offer OF an in
solvent ana dishonest debtor to compromise with
his creditor and to compound his debt due him on q
basis different from that which 1t was contracted


Your brave old Commonwealth to-day presents
through two of her gifted sons, one in the senate
and the other IN the House OF Representatives In
the United States the two extremes OF financial
proOem. You and are not 80 wide apart they.
The one Is ardent and earnest in urging that aaD
almost immediate resumption OF specie payments Is
necessary TO the country salvation. The other feels
equally sure that 1t would be better for public and
private interests that specie payments should be in
aenniteiy postponed. The one comes near to the be-


hef that "the way to resumption Is to resume.n 1t
would not bring drowned man to life TO repeat
ever SO often that "the way to resuscitation is to
Patient application OF the proper is neces-,
sary In either case. The other extreme, the
putting Off the time for effort Indefinitely, is
equally dangerous; Tor unless the subject is
treated In time 1t may be eternally too late. am
strongly inclined In favor of the measure proposed
by Governor Morton, In the Senate. 1 would, how
ever prefer to see his bill amended In various par
ticulars. The. two leading ones are:-First, the
suspension for day, much less for six months as


ne proposes after resumption by the Treasury Of the


United states; and, second the - dividends on the
in trust by the Treasurer security for the re-
demption OF their circulating notes. should be re-
tanned by the Treasurer and not be paid over to
the banks to be held by them until the day or re-
sumption; and the retention Of these dividends by
the Treasurer should commence year earlier than


II it Is right give the banks six months after the
government shall have resumed, at the end OF which
they shall resume, then IL would equally right
that individual debtors to the BANKS should have
another six months after resumption by the banks


before tney shall pc required to make paymeats 10
must be simultaneous. The three estates-the
people, the banks and the government-must stand
banks will not be able to stand without the assist


ance OF the government, and the government, beng


the % the notes OF the GaGxs a @ e me-


should fail and the people, unfortunately for them
selves, could but follow in the wake Of the other
| two.
| simultaneous resumption would not be unaptly
represented by tripod or threc-sided pyramid


each slde leaning against and at the same time sup
| porting the other two Sides


II the dividends are retained but for one and half


years, as proposed by the BILL they would amount to


year earlier would give them ieeh per cent In gold
on the day or the resumption This certainly would


seem to be little enough and as this gold would form
part OF the banks reserve required by law it
would be no new hardship unreasonable de-
mand. II the dividends are paid over TO the banks
they wiz be apt, II they have any reason to reason
thus:-"God Is now ut premium OF thrty-1ve per
cent AS the day OF resumption draws near and
less. Therefore It will Ike well for US to sell our gold
now when the premium is high, and buy 1t back
again by and by, when the premium win be low.'
VIII not this temptation be too great for the
divided conScences Of some OF these soulless corpo
rations to rcsists The danger would be that when


the day OF resumption drew near many OF these
banks would be in the market buying gold, and in
consequence OF this urgent demand the price, instead
OF beng at par, might command such premium as


to prove desired resumption little less than lzzle
and a failure.


II the gold is retained in the Treasury, to be deliv
cred to the banks few days before the time fixed
upon for resumption, this danger would be avoided
The interest OF the government Is simply the inter-


est OF the people. The banks can have no antago-


nlstlc interest," for commercial misoitunes to their
customers would be hazardous III not fatal TO them.
In word, your plan contemplates the striking down
Instantly, at one blow, the nominal value Of the
United States legal tender notes to an arbitrary
value of only three-fourths Of It's face value


Governor Morton's bill, on the contrary, aims TO
appreciate the government note, that now stands at
about seventyhve cents, as compared with the gold
dollar: by degrees from day TO day, running for two
per cent every twenty-sIx days until on the day OF
resumption the greenback dollar note shall have
made itself the equal In commercial value OF the


The one plan would tear down and Is forced and
violent, and would cause jar, confusion and mis-
chief, not only IN monetary, but Ia all business
affairs. The other proposes TO build up and foster
the appreciation OF the greenback to the par value
OF gold by process gradual, gentle. steady ana
smooth that the change would scarcely be percept-
ible by the debtor or creditor and both alike would
be able TO make their calculations and business
arrangements from time to time during the process
OF appreciation, with such accuracy and certainty
that no serious harm could come to either class.


No one out OF Congress, whether OF the public
press or otherwise should insist upon having his
preconceived opinions adopted In all particulars.
Friendly fair and calm discussion can do no posi-
bic harm and may do much good The attrition OF
mind against mind viii probably work out the pro-
blem In satisfactory manner. Few great achieve
ments are the product OF single mind. All who
have the interest OF the country at heart should be
willing to give and take aud so this question viii


probably be settled, not the very best way that IL
possibly might be- but 80 an TO be the average best
Judgment OF the people.


When 80 settled all interests must stand together,
supporting and strengthening each the others, each
and all, after making sacrifices for full preparation