Year: 1872

dulgence and patient attention. ~ relates wholly 10


financial questions Of public character and prefer TO
begin by giving part of the thirteenth resolution Of the
Philadelphia Convention, which Ia az follows;


pride reduction Of the principal Of the Debt and
excellent n.oa9l currency VIII be erfeo I'D b. speedy resumption Of


why expect speedy resump tion OF specie payment
Upon what principle plan may 1t be expectedf Lad
that the currency presents tho most difficult element
our financial problem at least TO casual observation
Il the most complicated in tho principles underlying IT,
The principles Of debt and taxation simple and direct
However difficult IL may be 10 agree upon tho details OF


reduction Of taxation, the general question whether
there ought ought not to be reduction IS neither IN
trieato obscure so, however men may differ as to
the rate Of paying debt the offer Of steady quida
ton comparatively simple These propositions DO not
greatly rely upon Administrations for solution but upon
Congress aud the people. Not 80 with the currency
Hero the conflict details is not greater than over
prineipies Yet, strangely enough how the currency
ought TO be reduced exctes discussion with the
financial officer OF the Government than whether ought
be reduced at ALL There is thorough Inquiry and
rule OF action proposed by those in power and the
public mind is divided upon the fundamental lawson
currency And IL is, when como to consider the
question confronted at with the inquiry on
every side whether the whole policy Of the Admnistra
tion il 1t has one. is not mistaken and fallacious


TIE OBSTRUCTIVE FINANCIAL POLICY OF THE ADMIN
IsTRATIoN.


After all the lessons OF history, after all the demon
straOns Of economic sciences after all the present viva
experience OF nearly ten years. it is at last deemed
enough pect in the language OF the Administration
platform. that excellent national currency Will be
perfected by u speedy resumption Of specie payment"
10 might better have said that if left alone 1t Will
steadily prove its adaptation to the wants Of the eOun
try and bring us back specie payment. The truth i
the Administration is at fault, and upon 1t must largely
rest the responsibility Of continued unsOund monetary
condition 1t has had financial policy except to col


ect taxes under laws Of Congress- Loard god block
ade Wall st. and pay debt Thus here, after ten years
OF suspension the first question before Is not aone
what special plan we shall adopt but upon what prin
ciple or theory we shall proceed Shall let the cur
rency alone with the idea that it good enough or shall
reduce volume with the idea that 1t ia vtated by
its inGatlonl Shall leave 1t untouched upon the
theory that the country will soon require the whole OF
1t, shall gradually contract it upon the theory
that resumption is impossible upon such redundancyf
These theories in opposite directions. The men at
the holm of state the helm of national finances,
neither tell what plan should be adopted nor what
principle shall guide u.s. We are clearly without safe
governmental guide now.


1t would be unwise to diminish the volume Of paper
II the country needs the whole Of IT, and it would be
idle TO fold and await resumption without any
reduction i resumption be OF the question with the
present expansion have disposition to exaggerae
the evils which exist and not unmindfu OF the bene


s attaching to the uniform secured national currency
which has superseded the old varying, and uncertain
state currency in before the Our national cur
renoy is something we want 10 preserve But at the
same be forgotten that, with all the ad-
vantages be retained there evils to be eliminated
which Administration, with due regard to the con-
tinued prosperity Of the people, safely disregard


DIFFICULTY OF REDEEMING PAPER CURRENCY


Here is vast volume OF deprecated and inconvertibe
currency the artificial and arbitrary issue OF the Gov
ITSELF and put forth without regard to nat
ural laws with warning voice from those In power.
History contains scarcely an instance where
such an been redeemed according to promise.
Must history repeat itself here without necessity, with
out exouse In England, during the prolonged period
Of suspension at the beginning of this century though
there direct Government issues at ALL there was
still redemption until disaster and bankruptcy had
swept away Of the excessive bank issues
and brought them within reasonable compass SO Russia
after long and bitter experience with excessive paper
money only escaped by redemption I'm 1889 at the rate
Of 81 for The fate Of our own continental money
and OF the French aSSgndS is familiar 10 ALL IL we sue
ceed in redeeming all our paper money it will be almost
the first time In history that such work has been
complshed and strong and secure as may feel, we
cannot be nsensibe TO the warning of this uniform
perience Indeed. II It ia speedily done, must not
only expect resumption" but set to work in way to
effect it,


The astonishing vitality and elasticity which have
enabled the country to stand strain or





doubt fortified II somewhat against the evils OF debased
and unstable currency. The buoyancy OF its irrepres
from the violent fluctuations and panics which usually
follow in the train of inflated paper money. But # we
acting its evils few nations before us have DONE they
none the less inherent in the condition Some OF
them have already severely afflicted may fol-
low. Our currency has wrought all the injustice and ln
tain standard OF value IL has denied TO business that
element OF calculation which is its chief security
and which is Incompatible with changing basis and
"A
ting character to that value which measures all other
values and has consequently spread doubt and confu
sion through the whole realm of traffic 1t has impaired
OF contracts robbed labor 0f its fair cOmpensa
tOn stimulated speculative rage fruitful source 0f
decentralization and surrounded the soiidty Of trade
with fictitious and deusye mirage. 1t has placed
at great disadvantage In all our international dealings
aud has led TO export Of specie and to foreign in
debtedness which, in some OF their possibilities, are al
most appalling. There is no monetary heath without
stable system rising upon fixed basis. We now have
neither and lusive IL the existing condition in
respects, the true interests OF the country demand
steady effort to secure both.


FALLACIEs REFUTED.


There greater mistake in finance than to suppose
that the requirement Of currency increases the ratio
OF population business 1t is not needed like bread
in proportion TO population it is simply medium of
exchange cited upon another occasion the conclusive
fact that the total circulation OF Great Britain was
tuay less in 1868 than 1915, though th5 wealth OF the
kingdom had doubled. Numerous other facts illustrating
the point might be adduced. 1t is not 80 much a
question Of the magnitude of amount OF the frequency
of exchange not much what is required in the aggre
gate as how many times II may be turned over. One
million dollars can be made to do the work OF two II
turned twice often. Moreover. civilization ad
the auxaries Of trade. such checks drafts
and other banking agencies, with clearng houses rapid
OF transit and other adjuncts either fulfill the
functions OF money in part facilitate its handling and
lessen the demand FOR it, All this goes to show the
faacy Of The theory that If our currency is excessive
II will 10 be IL will not to be
excessive however much IL may be absorbed long
IL exceeds the proportion which properly belongs
under the law OF distribution and which can
kept readily convertible into coin In dealing with this
not dealing with all, Admuisrration