Year: 1872




theories with great tenacity; but there are
some things he il forced to learn. Expert
ence and the logic of facts break down even
his impracticable and dogmatic notions.
Hence it is that we see in his annual report
just submitted to Congress views entirely diff
ferent from those he held previously on the
subject of the currency and specie payments.
Mr.. Boutwell, was ono of the on-to-specie-pay-
ment believers, and held that the proper way
to reach specie basis was to contract the
currency His opinion is changed now. In
fact, his practice lately has been the reverse of
that He has been expanding the currency.
and wants to have the power to expand it at
pleasure. We are inclined to believe he has
been reading the HEnALD the last five or six
years, at least in his bedroom or
private Office, if not elsewhere, for on
the subject of reaching specie pay
ments and leaving tho volume of currency
undisturbed he has in his report expressed
precisely tho views we have published all
along. He has come to the conclusion that to
contract the currency would be disastrous,
and that if the present amount of circulation
remains as it is the country, through increase
of population, wealth and business, will grow
up to specie payments. He says, en-
phatically, that he believes ''the coun-
try is not prepared to sustain the policy
of contraction" Farther on he adds: 1.-THE
basis of q policy Of Improvement must be
found in sturdy refusal to add to the paper
W, ~ rut;1 so Of tINa Iua
substantially as coin." Yet Mr.. Boutwell,
assumed the doubtful responsibility lately Of
adding to the circulation. As q resolution
calling upon the Secretary for information as
to what law authorized him to make an in
creased issue of legal tender notes last October,
House of Representatives on Tuesday, he will
have an opportunity to explain this incon-
gruity between his theory and practice. Then
in his report he says: ys:-''This being the set
tied purpose of the country-that is, that
there should be no increase of circulation
there will be an opportunity for the
influence of natural causes, tending,
upon the whole, to q better financial
condition" That is, as he goes on to show,
tending to specie basis. We congratulate
Mr.. Boutwell, on the progress of his financial
education, while at the same time we must
condemn him for not acting up to the views
expressed and for his attempt to regulate the
money market by increasing the paper circu-
lation.


Still the Secretary wants to have the power
of increasing the currency or of contracting it
at will, and makes an argument in favor of
ably, the necessity of such an argument for
the purpose of justifying his action in re-
issuing legal tenders and in meddling with the
money market continually. Evidently he has
not very clear views on this subject. There is,
indeed, confusion and conflict Of ideas on
drift of the policy he would establish. While
insisting upon fixed amount Of currency as
the only safeguard to business and values and
as necessary to grow up to specie payments,
he has the idea of elasticity oil the time in his
mind. In other words, he would have the
wants the Treasury Department to be invested
with the power to increase or decrease the
legal tenders, as the Secretary may deem ex-
pedient, at certain seasons Of the year, with
a view to aid business in the removal of
the crops or in other ways. "Upon these
that the circulation of the banks should be
fixed and limited, and that the power be
held by the Secretary to change the volume
Of paper illegal tenders) in circulation.
True, he says, this power should be within
limits established by law; but he does not
rency is to be limited in his hands. We do
not think the business men and people Of this
country generally would be willing to give
Mr.. Boutwell, or any other Secretary such
extraordinary power.


Mr.. Boutwell, assumes that the govern
ment will never abandon the use of national
bank notes and undertake to issue United
States notes in their place. He considers
they are both necessary parts of our financial
system. In another part Of the report he
admits, however, that both were exceptional
measures growing out Of the war, and that
they must be subject to such changes as the
changing condition and opinions Of the coun-
try and people may demand that they will
remain part of our public policy until the
financial consequences of the war disappear
According to this, then, Mr.. Boutwell, is not
so sure that our present currency system
ought not to disappear with the financial con-
sequences Of the war, notwithstanding what
he has said elsewhere about the system
being excellent and established In truth,
the Secretary has no clear ideas, as
we said before, on the subject and only
wants to drift along with the power to
regulate the currency and money market as he
may wish. But at the bottom of all his crude
reasoning it is apparent that he, like the
Comptroller of the Currency, is a warm advo-
cate of the national banks though it is evident