Year: 1869




In answer to the question as to
whether Congress would be likely TO attempt
any legislation looking to the prevention of
gambling in gold, he replied


g think not Thad. Stevens, you re-
member, brought in a bill of that kind
during the war, and in speech of great
force and persuasion carried the convict
tions of a majority of the House with him
on the point of regulating the price and the
sale of gold by law, and with very little de-
bate the bill passed The fluctuations of
gold were then new and startling There
was the mistake, In place of giving regu-
larity to the market it threw iB into violent
spasms and gold jumped without meaning
and method. Natural causes, produced by
the war and all its attendant Influences on
the markets of the country, acted on the
standard as has always been the case The
meddling of Congress made matters worse.
and by the earnest protest Of the mercantile
community the law was soon after repealed
similar statute, after such an experience
will never be ventured again for the more
laws you pass the greater will the chances
be for such daring spectators as the men
who bulled the market here some DAYS ago
Congress cannot prevent this speculation,
and the more you hedge in gold by legisla-
ton the higher will become its speculative



very little gold to operate with, though it is
stated contracts were made for hundreds of
millions. You saw how easily four millions
of government gold brought down the price
and returned the market to its normal con-
ditiOn


What remedy would you suggest, Gen
eral, to prevent the recurrence Of such
panic as we had p


"The remedy lies in making greenbacks
the standard of values, and making gold an
article of merchandise, the same as wheat,
corn or cotton. Government could appreci-
ate the value of greenbacks and bring US
nearer to a specie basis by recognizing its
paper in the payment of Custom House
duties in this manner to begin with If the
amount of gold realized from duties be
Sl80000, 900 and the interest on the debt
Sl2O,OO0,OOO, surplus of 500, 900 600 WILDE
left. Now, If the government would take say
fifteen per cent of this amount in green
backs in place of gold, it would still have an
ample amount of specie to meet the intesest
payments and would, at the same time, be
taking a sure and simple step toward giving
the currency a stability and measure of value
which it does not hold at present Gold
as it is unsettles values We call it the
standard, but do you find prices regulated
according to its figure On the contrary,
prices were never so arbitrary and capri
cious Take wheat as the standard of value;
will it not be more reliable Make mer-
chandise Of gold, and you place it in a
spt ere where speculation is disarmed of its
power to disturb monetary values. A little
such legislation as | recommended last
winter would have placed our financial af-
fairs on better basis than they are now
not that | claim particular credit, but it is
easy for any one to see from past expe-
- IL H.. II
practice Of the government recognizing
greenbacks for one purpose and not for
another has proved of serious detriment to
the success of a we'll meant financial policy"


at may be expected that when Congress
assemblies you will recommend a change 2


& can't say that. | am not the Chuir-
man of the Ways and Means. That com
mittee will no doubt propose some brilliant
experiment after its festive summer expe-
rience around the country"


What a delightful time they must have
had, General2'


Here the Generals expression of counte-
nance changed and gleam of savage joy
seemed to shoot from MS eye at the prospect
of overhauling in the House of Representa-
tives the junketing tour of the Ways and
Means, with SeEenck, his implacable foe, at
the head of it.


81 haven't been to California" he OBJ
served, 81 but the Ways and Means have.
They could tell you a good deal about gold
and about a very nice wine called golden
wedding. They are good judges of both. 1t
was my luck not to be on the committee, but
it will be pleasant anyhow to hear them tell
their experience down in Washington. Be-
ing gay party, they must have had much
fur"


81 But don't you think the government
might well afford to give the hard-worked
Ways and Means little recreationY'
Exactly. l am better pleased that their
summer excursion was paid for by the gov
ernment than that they should accept an IN
vitatiou from railroads and other corpora
tious. The railroads would look for some
sort of kindly return, and everybody that
! did them a service wOHld be coming to
Washington to get some equivalent in ex-
| change 1t is cheaper for the government
in the end Of course they will furnish US
with a very interes ting narrative next winter,
when the days are dull 1t will make
| splendid freside reading and cheap at that.
You will listen in humble silence, 1 sup
pose?"


Well, perhaps, but it is better to wait"


What do you think. General, of this
| story about President Grant and Secretary
Boutwell, being mixed up In the late gold
| speculation 2


As 10 MT hOubW6li, L OOn DeleYe a
word of it. l have known him for twenty
| five years, and have always considered him
IN honest, straightforward man. l am not
/ the least inclined to change my opinion Of
/ him now and in regard to General Grant
the story is just as false. The fact is the
/ whole of this slander was fabricated and set
afoat IN the interests of the Democratic
party. 1t has political significance easy
/ to read. We are on the eve Of elections In
/ the two great States Of Pennsylvania and
! Ohio, and this story is circulated to preju-
dice and break down the character Of the
administration. They are using 1t now on
every stump in Ohio and Pennsylvania


But, General, these gold speculators,