Year: 1867




ter to Pennsylvania banker on the subject
Of the National finances


Tne letter is a reply to one from a neig g6or
and friend on the question of paying the ma
tiOnal debt in legal tenders, and on the man.
agement of our national finances generally,
which probably was prepared purpOsely to
give him an opportunity to lay his views be-
fore the country.


Mr.. Stevens commences with the assertion
that. $50 far as the financial condition of the
republic is concerned, it is not and never
can be in doubt or peril. With the products
which we can readily dispose of to supply the
demand of every kind, there never can be a
time when, with honest dealings, the repub
lie will be unable to pay all her just liabilities"


He says: Il have not approved, and do
not now approve, OF the financial policy pur-
sued by our Government for the last six years.
| think we have thrown away our billions,
and are still throwing millions by mismanage-
mcnt"


Then, addressing his correspondent, who is
national banker, directly and personally, he
says: You are 4 banker, and a sound one,
bu: you are making more off the United
States, through the national banking system,
as is every other man who has adopted it (con-
nected with it,) than you ought to make"


He has never doubted, he says, that the
Government has the constitutional power to
make money of whatever material it chooses
whether metal or paper, "leather, tin or
greenbacks," and to regulate its value and,
therefore. legal tenders, are, to all intents and
purposes, the lawful money of the country
money in which all debts, public or private,
may be legally and justly paid" Money is
just what the law makes it." He refers to
the fact that the Government has at different
times reduced the price Of silver, and that
when so reduced it was made to pass to every
creditor as well as debtor at the original price,
and argues that there is the same power to is.
sue and regulate the value of any other kind
of money. He maintains, consequently, that
it is just and proper for the Government to
pay the national debt in greenback lawful
money.


Referring to the debt he says: "Now let
us come to the Government loan, and for a
single moment consider it, which even without
the mOnstrous doctrine of Greeley and Cooke,
is the most profitable investment ever made by
money lenders, and is a monstrous swindle on
Americans on the part of European capital
lists" However, he would pay in full the
rich capitalists and spectators" who have
made priucely fortunes through the folly of
the Government; :" but he does not think there





order to pay two or three times over what
they are only and justly entitled to.


He argues that in creating the loans there
was no intention on the part of Congress to
commit the Government to a payment of the
principal in coin, except where this was ex-
pressly mentioned. This matter was we'll con-
sidered and well understood at the time, and
the bondholders have no reason to complain if
paid in legal-tenders. Speaking of this money,
Mr.. Stevens says: "For two years the
greenbacks were the most popular currency
ever used in the United States, and had there
been no other, would not hive failed to buy
every necessary commodity for every use, pub
lie and private, without complaint; and if it
swelled the currency of the country. it also
swelled business of every kind, foreign and
domestic, agricultural and manufacturing so
also it swe!!ed the income of business men, and
thereby vastly increased the revenue OF the
Government"


The great question at issue is the right of
the Government to pay, and the policy of
paying. the debt in grcenback lawful money.
Upon this he remarked: "VariOus methods
are suggested to redeem the 5-20s in currency
One very able writer suggests loan in green
backs to their amount, SO that afterwards the
greenbacks may be redeemed with the other
Ii we are satisfied that there is not more than a
sufficient currency to do the business of the
country, together with its probable increase,
then that would be the proper method, with.
out Initiating prices a counterbaIance to the
saving. But if it Is believed that the present
and prospective business of the country would
fully absorb an amount large enough to oredeem
those bonds as they become due, and not iniu
riOusly increase business. then the true way
would be for the Government to issue legal
tenders equal to the amount to be redeemed,
and thus save the interest both of the old and
a new loan" OF course. with these views, he
deems the contraction of the currency of four
millions u month, as now authorized, highly
imPolitic. Finally, he believes the true way,
If not the only one, to reach specie payments
is to reduce the debt us proposed, before any
attempt be made to contract the currency.


1t is said that the Indians are busy col