Year: 1874




trick England has got her Claims for the
virginius outrage settled, because her govern
ment had no selfish ulterior objects. Our supe-
rior claims for reparation have been suffered to
linger, and if it shall appear in the sequel that
the President has nursed them in order to
keep alive pretext for war to serve party
ends he will be borne down by storm of
public indignation. As Webster once said,
sour party differences should cease at the
waters edge" and if President Grant has
been prolonging quarrel with Spain to be
kindled into war for party purposes he will
be the most disgraced President that ever
held that office.


The financial recommendations of the Mes
sage are sound in principle but defective in
details. The Presidents views and those Of
the Secretary of the Treasury are substan-
TALLY identical, but Secretary Bristow is fuller
and more specific in pointing out the execu-
tive methods for restoring sound currency.
The grand specific of both the President and
the Secretary is the passage of q law fixing
day for the repeal of the Legal Tender act.
With oil due Difference we think this an un-
wise recommendation. not indeed, as unfit in
itself. but as misplaced in the proper order of
proceedings. A near day for the repeal would
convulse and ruin the business of the coun-
try, as both the President and the Secretary
are aware, and they would. therefore. have
the date fixed three years hence. But
SO distant q day would only increase
the uncertainties of commercial calcula-
tons. Congress meets every year, and
during the three years the chance would
three times recur Of repeal of the repeating
act No business man could count on the
future, because he could have no assurance
as to what Congress might do meanwhile in
obedience to public clamor. The repeal of
the Legal Tender act instead of being the
first, should be the last act in the programme
for specie payments. The object Of present
legislation should be to gradually bring the
greenbacks to par, which may easily be done
without stripping them of their legal tender
feature. The government has only to dimin-
ish their amount by cautious funding to make
them equal to gold, and dearth of currency
can at the same time be avoided by safe
changes in the national banking law,
authorizing the banks to increase their
issues to meet the wants Of bus-
ness. When the greenbacks are securely
brought to par by this method the
Legal Tender act can be at once repealed
without injustice to the debtor class. But its
repeal now, to take effect three years hence
besides throwing everything into uncertainty
by the possible intervening action of Con-
gress would have no percep,ible effect. Sup
posing the average Of bank credits to be three
months, the banks might loan and recover
their money twelve times during the remain
ing life of the legal tender, and in oil the
earlier part Of the period they would conduct
their business precisely as if no such law had
been passed. The law would affect no con-
tracts except those for the payment Of money
at distant period. Contracts maturing after
the expiration of the three years would be
made on q gold basis, but the mass
Of business engagements of short dates
would not be Influenced. at all until
near the termination of tho period.
But o cautious reduction Of the greenbacks
would bring them gradually. to par; author
ity for the banks to expand, subject to re-
demption, would prevent q dearth OF cur
rency; and when the business of the country
had reached the stage at which the bank
notes were kept at the same value as green
backs, at par with gold, it would be as cheap
for the banks to keep gold reserves as green
back reserves, and the remaining steps to
specie payments would be easy. A repeal of
the Legal Tendex act at that stage would
create no anxiety, cause no shock, and lead to
no disturbance of any business relation.