Year: 1867

Secretary McCuiIoch and tho Currency.
Mr.. McCulloch is evidently out Of his place
as Secretary Of the Treasury at this important
period of our history. The extraordinary
change in our financial condition within few
years, and the urgent necessity Of placing the
currency and finances on safe and stable
foundation, call for abilities Of much higher
order than he possesses. He might do very
we'll as president Of one of his favorite national
banks, as he knows the difference probably be-
tween one and two per cent, and has had some
experience in ordinary banking business but
the very qualities he has acquired from acting
in such a limited sphere make him unfit for the
broad field Of national finance. He measures
everything-all the great questions Of national
finance and currency-by the counting house
standard of a small country bank. To be the
finance minister Of great nation, under ordi-
nary circumstances, q man should be states
man but to 1ll that position in this country
at the present time requires the highest order
Of statesmanship.


What we want is stability with regard to the
currency. To contract or expand changes the



ness and checks the country in its career of
development No one knows on what basis to
buy, sell or make contracts. Whatever may
be the character of the currency, it ought to be
fixed in amount. 1t would be better to have
the currency uniform and all of government
legal tenders, as we have repeatedly urged, but
by all means let us have the amount deter
1a< t1a Of
contraction be placed in the hands of one man,
particularly in the hands of Mr.. McCulloch,
who is totally unfit to use it, Looking at the
power he holds now and his well known
theories about forcing specie payments through
contracting the currency, we may expect most
disastrous consequences, unless Congress
should take some action in the matter He
can contract at the rate of four millions o
month or forty-eight millions . year. He can,
therefore, in the course Of q few years mate
rally change the value of feverything By this
process re will be able in the course of FIVE or
six years to reduce the value Of property
throughout the country twenty per cent or
more, to increase the debts of all whose
property is mortgaged and all who are debtors
in other ways twenty per cent at Least, and at
the same time to enrich the bondholders in the
same proportion. This plan, which originated
with the Secretary, is entirely in favor of the
few rich and against the poor and the masses Of
the community. Though the process appears
to operate gradually it will be none the less
effective in producing this result. 1t will act
a. constant disturber of the value Of property
Of every kind. Trade and all branches Of in
dus,ry will feel the pressure Of the screw with
out perceiving the hand that works it. These
consequences Of Mr.. McCulloch's adroit plan
Of contraction are inevitable.


The country, the mass of the people, the
great agricultural West, do not want contrac-
ton. They have been and are doing well.
Why not let well alones Why not accept the
plain facts ofour experience as guide instead
of the dangerous theories of petty financiers!
These theorists have been predicting year
after year and month after month re-
vulsions and all sorts Of evils from
what they erroneously term an inflated
currency; but they have proved false prophets.
The fact is, anything like general revulsion Is
impossible with an abundant currency which
foreign uauOub CbuuOt OrSW from u6. Incro
may be crisis Of temporary or local char
acter from over-tradiny or speculation, but
this, II it should come, must be limited; it
could not be general with the monetary ease our
present currency gives US. The true course to
pursue is to let the currency alone, except to
make 1t . uniform legal tender. The coun-
try, In its rapid and wonderful growth. would
soon absorb the currency TO such degree that
in the course Of . few years the greenback
would be ct par with gold. The growth Of the
country and the natural laws of trade would
bring this about far better than the Secretarys
forcing process, and without disturbing values
or business. These views are 20 sound and
reasonable that we sometimes doubt whether
Mr.. McCulloch is 30 ignorant a. not to see the
correctness Of them. We are constrained to
believe he permits himself TO be made the tool
Of the bad influences surrounding him-of the
scheming and agi'ating politicians and the
bondholding speculstora 1t is high time that
either Congress should limit his power for evil
or that we should have more capable finance
minister.