Year: 1870

-
the convertible value of the currency,
which has been a more than ample
compensation to the country for any
loss of interest that may have been
sustained thereby. If the gold in the
Treasury had been sold down to what
was absolutely needed for the pay
ment Of the interest on the public
debt, not only would the public credit
have been endangered, but the cur
rency, and, consequently, the entire
business Of the country would have
been constantly subject to the danger
Gus powers of speculative combina-
tiOns."


From these extracts it will appear
First, that the former Secretary kept
a reserve of coin to steady business
that he regarded the loss in interest
more than made up IN preventing
heavy losses to the country. He re-
garded his power to sell as indispensa-
bic to prevent combinations for fuc-
tuatiOns and specuIatiOns. He has
also sold gold to raise currency when
needed and to save the paper currency
from depreciation. Whatever we may
think of this immense pOWer-lodged
in the breast of the Secretary-it must
be confessed that there was great free
dom from speculation and panic under
the policy of the late Secretary. His
operations are well described in the
following extract from his report Oi
1868:


Similar complaint has also been
made of the manner in which gold
and bonds have been disposed Of by
what has been styled 'secret sales,
and vet precisely the same course has
been pursued in these sales that care
ful and prudent men pursue who sell
on their own account, The sales have
been made when currency was needed,
and prices were satisfactory. 1t was
not considered wise or prudent TO ad-
wise the dealers precisely when and to
what amount sales were to be made
(nO sane man operating on his own
account would have done this), but
all sales Of gold have been made IN
the open market, and Of bonds by
agents or the Assistant Treasurer in
New York, in the ordinary way, with
a VieW OF 0btSi4iEg the very best
prices, and with the least possible dis
r,,v,,,y,,,; oF huSinesS,"


From these extracts, and from other
passages in his reports, it appears that
Mr.. McGuilOch considered it to be the
duty of the Government, while it
keeps in circulation a large volume of
notes, which, although deprecated,
are still the legal standard of value,
and which the people are compelled
to receive and use as 8 lawful money" +"
to prevent by the use of all proper
means their notes from being depre-
Ciated or kept constantly fiuctuating
in value by speculative influences ana
combinations. Mr.. McCulIOch thought
also when gold was to be sold for the
purpose of supplying the Treasury
with currency, or redeeming Govern
ment obligations that the sales should
be made in the manner adopted by
business men, with the view Of Ob-
tanning full current prices.


The present Secretary entertains diff
ferent views of the duty of the gov
eminent in regard to its circulating
notes, and he has adopted a different
course ia the sale Of gold. He thinks
that the government has nothing to
do with the money market, nOtwith-
standing it has in circulation four hum
dred millions of irredeemable legal
tender notes, the appreciation or de-
probation of which affects every mans
business and the value Of every mans
property throughout the length and
breadth of the country. In this re-
mark we may except the Pacific
STATES and the Territories, where gold
is the circulating medium. Now,
while we do not desire nor intend to
impute improper motives to the Sec
retary nor to impugn his integrity, we
cannot overlook the fact that it was
this policy of the Secretary, and his
expected adherence to it under Exec
utiVe influences, that led to the COM
binatiOn of spectators for advancing
the price OF gold-0r, rather, to depre-
ciGte United States notes. This much
the majority should have said in ira
cling the origin and character Of the
panic which it has been made the duty
OF this committee to investigate. This
combination deprecated the property
of the country to the extent of many
millions of dollars. 1t gave a shock
20 business from which it has not vet
recovered; il ruined hundreds Of men
who had no connection with it; it
cast suspicious upon our highest Off
cials, which is of itself a loss of credit
and values to the country; it has con-
tributed to the spread of extravaganza
and speculation, debauching the NOR
ais OF trade while affecting su the
values of industry. What the losses
are. incident and consequent, upon
this mode OF selling gold under such
combinations and circumstances, the
eminent merchants and others who
were before US haYe shOWn-Mr. Lowe
as to foreign trade, Mr.. Opdyke as to
domestic trade, and others as to all of
cur interests, have spoken.


As to the policy that should be here
after pursued in the sales of Govern
ment gold, if these sales are TO be
continued, it is not the duty of the
Committee to advise. The minority
are, however, Of the opinion that
the power to make sales should
not be left to the discretion Of
any officer, no matter how able and
honest he may be. 1t should be regu-
lated by law. The temptations to an
improDer use Of such power may be
too strong to be resisted: suspicion
will still inevitably attach TO its exeE-
else. Thus the usefulness Of the Off
cial will be impaired ami repr0aeh be
brought upon the government,


What amount of coin should be kept
in the Treasury in reserve as a prepa-
ration for unforeseen emergencies and
to give steadiness to the convertible
value Of the legal tender issues, must
depend npOn contingencies that can
not be anticipated. Less, however,
will be required than was needed when
the work Of funding the floating debt
was in progress. The indications are
that a current reserve of $40, 600, 600,
in addition to the amount tor which
gold certificates have been issued, will
be ample.


The public would be glad to know
in connection with this "panic" that
there are no charges made or sus-
tanned against the Executive or his
subordinates. They would be glad to
know that az suspicious are removed
which these extraordinary schemes
have engendered. So far. as concerns
the President, the minority were even
more desirous than the majority of
the committee to join in report en-
tirely removing all doubt, even ia the
minds of the most prejudiced, against
the Chief Executive and his family.
During the examination this was our
often expressed and urgent desire. We
could take no partisan or other pleas
ure in affecting a stain or infiicting a
wound upon the Chief Executive of
our country. 1t is no agreeable Office
to affect the personal integrity of our
common President. His reserved life