Year: 1867

From the position Mr.. Morrill, occupies in
Congress. as taking . leading part in all mat
ters relating to the national finances, currency,
revenue and the tariff, and because he really
brings great deal Of knowledge to bear upon
them, his speech delivered last Thursday IS
worthy Of special notice. This speech was EVIL
IDENTIFY carefully prepared, but we are left
much in the same doubt as to his precise mean
ing or what he proposes to do as we are with
regard to the speeches of one of our city men,
bers. We do not know exactly where he stands.
He multplies words in generalizations and Is
not sufficiently clear and explicit, He is in
favor of resumption of specie payments by
contracting the legal tender currency, and yet
he is persuaded that we shall not reach the
goal of resumption any earlier than the most
devoted partisan of an exclusive paper money
system would WISH" While the politics Of the
Secretary Of the Treasury is distasteful to him,
he approves Of his financial policy. In fact
Mr.. McCulloch's views regarding contraction
and sustaining the national banks are endorsed
by Mr.. Morrill, But neither he nor the Secre-
tary has an idea different from those which have
been reiterated thousand times by the bull
lonists of Great Britain and this country. The
successive revulsions which England passed
through after the close of the long war with the
first Napoleon, in consequence OF adopt
ing the resumption theories of the bull
lonists, afford no lesson to them. The
periodical Ievulsons thai have occurred every
few years since in that country, even
in specie paying times, does not prevent them
from pointing to the course followed there as
the best guide to us. The fearful pauperism
that pervades the whole kingdom, side by side
with incalculable wealth and unequalled pro-
duction, which can only be the result of an
unsound financial and monetary system, gives
no instruction to these men OF one idea. They
do not see that the time has come when this
new and great country ought to abandon theo-
ries which have proved so pernicious and that
we should have system of finance and cur
rency adapted to our own circumstances. The
whole of Mr.. Morrill's argument, as well as the
policy of Mr.. McCulloch, is based upon British
ideas and practice, and yet we see what dread
full consequences have followed the application
of those in England.


The great point Mr.. Morrill, endeavors to
make is that our circulating medium, which is
the currency, is much too large; that about .
third of it would be sufficient, and that 1t
should be all withdrawn except the three hum
dred millions of national bank notes. That is
the amount and kind of currency only he
would give us. To sustain his argument he
refers to the circulation in England in 1874
and 1865, and to our own before the war, each
Of which he states was less than three hundred
millions. We believe he under estimates the
amount if we reckon both the paper and coin
in circulation at the same time. We will not
cavil about that, however. The question is
not what England has or what we had before
the war, but what is the amount required under
our present circumstances for the safe and
healthful operations of trade and develop
ment of the country. We are passing
through rs extraordinary a revolution in
financial matters as in political. We think,
too, that the changes this country is destined
to make in the former will exercise in time,
as great an influence in Europe rs
it is now exercising upon the political ideas Of
that part Of the world. The whole tendency
of the financial and monetary system of Eng
land, and, indeed, of nearly all Europe, is in
favor of the rich md to reduce the producing
classes to the lowest point of existence. A
currency contracted too much is undoubtedly
the chief cause of this state Of things.


Mr.. Morrill, refers to Parliamentary reports
and other authorities to show that only about
- tla II.
what is called currency or meney, has been
used in ordinary mercantile transactions, or
to use his own words, "to liguidate payments
in modern trading" According 70 this state
ment ninety-seven per cent Of all business is
done through the medium Of the banks and
rich individuals and through credit. He
argues, consequently, that only very re-
stricted currency is required. Does this not
rather prove that more copious currency Is
necessary to protect the mess Of small traders
from the power and exactions of the banks and
the rich? With large amount Of circulating
medium. and, therefore, with an easy money
market, the banks are not able to hold the
trading community SO much at their mercy and
to absorb the profits Of trade to such an extent;
but are not the mass OF the people thereby
bcneflcds OF course there is limit beyond
which it would not be hcalthful or safe to cx


pand; but we maintain that currency too re-
stricted only makes ihs rich richer and the
poor poorer. This would be the case especially
under our present circumstances II the cur
rency could be contracted to specie basis.
The property Of those who hold United States
securities would be increased over thirty per
cent, while the property Of ali others would be
reduced in the same proportion. All those
who owe anything would find that their debts
would be heavier and their means OF payment
much less. Then we should witness revulsions,
bankruptcies and general distress such as the