Year: 1875

~ A@ W
quotes Professor Bonamy Price IN confirmation
OF the same doctrine. cannot, il seems expect Mr..
Phillips 10 be polite but might expect him TO be
did Does he not know that John Stuart Mil, in the
passage quoted, does not speak OF an irredeemable
paper currency all does speak or bank notes
yertibe into coin Is Mr.. Phillips ignorant OF
the difference between trredeemable paper
conY Ii would seem 50 for otherwise
common honesty would have prevented him from quo
ting sentence from Mr.. Mill referring refer
ing 70 another AS Mr.. Philips desires 70 know what
Mr. Min thought Of an irrcdcemabe paper currency IN
that respect would refer hun to pages IS lo4 Political
Economy, second volume Will select only passage
random ITO the increase Of inconvertibe cur
rency Il permitted by law, there is no check.
The issners may add TO il indefinitely,
proportion They may, in other words deprecate the
currency without limit page eOl Mr. Phllhps mas
evidently studied John Stuart Mil 10 much advantage
Has he studied Bonamy Prices Unfortunately have
not his book on currency before me- but may recon,
mendit 10 Mr. Phillips and all those who are SIN
afflicted with the irredeemabe currency distemper'
know Professor Bonamy Price we'll and have person
ally discussed with him this very question reel war
ranted IN saying TO Mr. Philips that II ne shoulu
before Bonamy Price that the expansion OF an
irredeenable paper currency beyond inc amount amount
which would circulate in gold and notes convertible


into gold would not initiate prices the Professor would
anxously inquire after his health SO much Tor the
second point


XhiTd-I argued in my speech that the emission OF
large quantities Of rredeemahe paper money Wl pro





historical reading az weli as my own ooserVatUn os
things IN ths country had convinced me profoundly OF
this fact and far know, II is admitted by almost
all respectable authorities on TINS SUBJECT nr
Philips galanuy 70 the rescue OF ms
paper idol He refers me TO Great Britain, @it
ing me that without rredeemable paper money
England could not have conquered Napofeoni that
paper notes fought the battle Of Waterloo and that our
late tells the story. Mt PhiulpS Is undoubt
edy splendid declamer but logic does not seem 10 be
his strong point The question is not whether trre-
deemabe paper money has been used TO advantage in
tf,.g1 ~ publk
exhausted not whether 1t fought the battle OF
Waterloo the battle Of Gettysburg. The question
is whether emission OF tho large quantities OF ire
deemahle paper currency will promote extravaganza
and corruption. If Mr. Phillips tries evade that
question by way of Waterloo no must permit TO
suspect that he cannot meet il squarely II he will
look into the suspension period in England, he
VIII find that irredeemaole paper money may
loo but that this fact did not prevent IL
from promoting extravaganza and corruption at home,
and unless he Ignores what everybody else knows he
viii surely deny that this country tells the
story He might also study the history of Russia with
prot still less viii he be able TO deny that e1trava
gance proagacy and corruption in an extraordinary
degree will result from policy sucn as discussed it,
the policy Of spending money for the very sake OF
getting II out


Mr. Phillips one illustration which is intensely
ludicrous-he refers me to Germany and France Ger
many, involved IN business crisis, and France in
condition Of prosperity And this nom a gentleman
advocating an expansion OF the currency Does Mr.
Phillips know what the Of the business collapse
in Germany wasS l will tell him. Certainly not
the want Of money, for after the French
war an abundance Of It noated into the
production trading speculation and over
sraining Of the credit system, which Is always to be
excited by abundance Of money not the
product OF labor and industry, and the business strn
gency now protracted by sweeping change in the
monetary system Of the country What can Mr.. Philips
make out OF this fact for his argument or Will he per
haps, pretend that the business crisis IN Germany
would not have occurred had the currency q that coun
try been rredeemable paper instead OF specie sup
human


Now to France, what is it that has produced her
present condition of prosperity Certainly not the sup
ply of more money, for as the war bills We're
paid France began sharp contraction OF
her irredeemabe currency with q set pur
pose % the same syste Of spece pay%ens which M
Phillips wants 70 run away FROM and under that con
traction TO strong effort by the people TO repair their
disasters by frugal and well directed industry II IL Is
the benehcent influence Of more money Dir. Phillips
wants to demonstrate he has been strikingly unfor
tunate his illustration One country suffering from


severe business depression after expansion, and
another country in condition OF growing prosperity
after sharp contraction Of currency. 1t seems the
suggestion would be IN order that Mr. Phillips might
enlighten his Judgment by taking trip to Europe 50
much for the third point


VALUES AT Tue MERCY OF CONGRESS-.


Finally, fourth, Mr. Phillips attacks my assertion
that other system than specie payments will remove
current values from the arbitrary power Of the govern
meut; no other can give TO current values that stability
without which safe business calculations be
made; other can restore that confidence which is
the first prerequisite Of a period Of pros
perity Mr. Phillips, with an air or tri-
umph, points TO the panics which from time to
time have occurred in specie paying countries
10 show that confidence does necessarily and always
accompany the specie system Who asserts anything
Of the kinds Not |. What | do say s that the
hdence which need induce the capitalist to trust
his money the hands Of enterprise will not grow up
again long the volume OF the currency the country
is 10 have Is at the arbitrary mercy Of Congress,
whose resolutions may at any time change all
current values in the country, thus crossing the
most sensible business calculation and battling the
acutest foresight Confidence viii not return as long
the prospect that the wild schemes Of demagogues and
visionares may obtain control OF national finances
hangs the business world like a threaten
ing storm cloud. | demonstrated by the his
tory or the crisis in this country in 1887 and
1857 that business did not revive and prosperity
did until by the elimination Of the element
OF uctuation and uncertainty, consisting IN unsafe
currency and by the restoration OF sound money sys
based specie business made 70 feel safe and
firm ground again under its feet This is what said,
and find in Mr. Phillips letter not attempt TO
controvert IT. Indeed he need only look around in the
business world to and the amplest proof for my
assertion The pancs which occurred In specie paying
times form a avorte argument Of the infationsts.
know well others that they return at almost
lar intervals and that monetary system has been
invented TO prevent them But when from their peri
odcal the inference drawn that the specie
system s worth nothing because it does not prevent
panics IL is wise TO say that good health Is worth
nothing because IL is sometimes interrupted by
sickness. Respectfully, CARL SCHURZ