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Hon. peter COOPER, LL.D. 




201-213 East Twet-fth Sikbbt. 




I IDeliitaU this Book 

o^, o-zbJLN's-a^zz.zsxt.sixr, 






As this compilation of ideas from my mterconree and 
correspondence with Btateemen, divines, scbolsrs, artiste, 
inventors, mercliants, mgnufacturerB, luecbanics and labor- 
ers, may contribute to a " ScicTice of Good OovemmerU" 
based on a etrictly luUional currency, tariff and civU ser- 
mce, see p. 212, I consider it my duty to transmit them 
to posterity in book form. 

In onr yonng conntiy these three topics are of the 
greatest importance, and mnst be regarded as the founda- 
tion for all governmental superetnicttires. When tbis na- 
tion, nnrabering now fif^ millions, can realize that before 
these three topics all others mnst dwindle into insignifi- 
cance, she will have attained the highest degree of political 
wisdom. I have had mnch personal experience in prac- 
tical bnsinesa and money affairs for the last seventy years : 
over thirty years ^o I learned finance with onr veteran 
financier, Albert Gallatin, who was Secretary of Treasury 
under Jefferson and Madison. He was President of " The 
New Tork Board of Currency," of which I was Vice- 
President, About that time I corresponded with Secretary 
Robert J. Walker on ^e tariff. Since then I have been 


engaged in lai^ financial, mannfactnring and edncational 
operations, Buch as railroade, telegraph, Atlantic cable, iron, 
steel, Cooper Institute, etc. ... 

This varied experience and my daily reading enabled 
me to think, converse, speak and write on jmanoe, Uxriff 
and mnM service, which I tried to combine in this vol- 
Tune. Since the Kebellion broke ont, I sent petitions and 
letters to Congress, to the President and his Cabinet, and 
raised my voice in favor of a strictly national cnrreniy, a 
protective tariff, and a wise civil service, as will appear 
in the following pages. 

Fetes Coopeb. 

9 LeIIKOTON AvBTdTE, New Yobk, 

Jaituary W, 188S. 



PEnnoN TO Ck>NGBBS8, Dbcehbeb 14, 1862. 
To the Honorable Senate and Eouae of Repre$mta6wea qf 
the United States: 

Your petitioner desires most respectfnlly to call and fix 
the attention of Congrese on the nnmeaenred conseqnenoes, 
that now depend on a epeedy adoption of a financial policy, 
calculated to maintain the force and power of the Govern- 
ment in ite struggle for the nation's life, and at the same 
time to give the repaired stability and facilities to enable 
the people to carry on to the best advantage all the sgri- 
coltaral, mechanical, and commercial' interests of the country. 

Tom- petitioner believes, that every other act of legisla- 
tion dwindles into inrignificance, when compared with an 
act, on which all business interests are more or less de- 
p^uient, and connected with the honor and life of the 
nation itself. 

In view of consequences and responsibilities so tremen- 
dous, you- petitioner does most humbly pray, that no time 
should be lo&t in perfecting laws, that will embody the 
hi^est wisdom and virtue of an intdligent people, for the 
people's benefit. 



In the opinion of your petitioner the Ck)n8titiition mates 
it the solemn duty of Congress to coin money and regulate 
the value thereof, of all that eliall be known and nsed as 
money throughont the United States, The faitliful per- 
formance of this dnty by the Government will more effeet- 
nally secure the rewards of labor to the hand, that earns 
it, and more effectually aid all the usefnl industries of the 
country, than any and all other measores, that can be 

Petee Coopkb. 


To the SoTiorahle the Senate and House of Repreaeniatmea 
qfths United Staies : 

Tonr petitioner, in view of the paralyzed condition of all 
the varied industries of our country, causing, as it has, an 
almost imivereal embarrasBment by the shrinkage in values 
of all forms of property, thereby rendering it impossible to 
give the needed employment to suffering millions, who have 
nothing to sell but their labor— your petitioner desires hum- 
bly to represent, that in hia opinion a single act of Congress, 
added to the lately passed financial law, will secure for the 
United States the best paper circulating medium, that our 
country or the world has ever seen, 

To do this it is only necessary to set forth and declare, 
that the present legal tender money, now in circulation, shall 
never be increased or diminished, only as per capita with 
the increase of the inhabitants of the country, and that the 
Government shall receive the legal tenders in payment for all 
duties and debts, with an amount of currency equal in aver- 
age value to the average premium, thaUgold has borne dur- ^ 
iug the month preceding the maturing of all contracts. 

To secure to our country a tool, as Bonamy Price calls 
money, of such inestimable value, and at the same time se- 
cnre for our country a degree of stability in the operations 
of trade and commerce hitherto unknown — to do this it will 



only be necesaary for the Goverament to receive legal ten- 
ders in payment for all datiee and debts, etc 

This plan will make it the interest of every man to bring 
and maintain the legal tenders on ft par with gold in the 
aborteet possible time. If this can be done it will give per- 
manence and stability to that which meaeores all the prop- 
erty of the conntiy, etc. , . , 

There is no way, by which Congress can so effectaally 
establish jnstice and promote the welfare of a natioD as by 
securiDg for it a jnst and uniform system of money, weights, 


PErrBB Cooper. 

I learned from my friend, Silas M. Stil^ell, who was the 
confidential adviser of Secretary Chase, at the time of our 
nation's greatest peril, that he saw my petition in the hand 
of Secretary Chase, at the time when he was saying, that 
he had some fifty millions of bills audited, and not a dollar 
in the Treasury. In such a dilemma with the fact before 
him, that the first four loans, called for, were promptly taken 
np, and more money was offered at five and ax per cent, 
than the call would allow them to take. 

tSr. Stilwell stated, that he had labored with Secretary 
Chase for two or three weeks, trying to show him, that 
TVflwwry NoteSy based on the credit of the nation and made 
receivable for alt forms of taxes, duties, and debts, would be 
gladly accepted by the people, and that without a promise 
to pay gold. 

Mr. Chase was determined, that no paper should be issued, 
without promise to pay gold and silver on demand. Mr. 
Stilwell labored for many days to show how interest could 
be used as a floating power for Treasury Naks with the 
Z«^aZ Tender principle as a forcing power, which would 
float an amount of Treasury N'otes, that would meet all the 
expenses of the war. 

This plan would have been, in effect, like the plan, reoom- 



mended by Franklin uid Jefferson. Benjamin Franklin 
eays^ that no plan has yet been derised, equal in all its ad- 
vantages for a cnrrency to Treasunf Sotes, made a general 
Legal Tender. 

Having labored for many days to convince Secretary 
Chase withont effect, Mr. Stilwell informed him, that he 
believed his services were at an end, and that he ahonld 
leave that evening for his home in New York. 

Mr. Stilwell informed me, that he had bnt just got home, 
when he received a telegram, b^^ing him to oome imme- 
diately back, as he had learned, that the banks had all failed 
to pay specie, as they had promised. 

Thomas Jefferson unites with Franklin, and declares, 
" That Treamiry Ifotea, bottomed on taxes, bearing or not 
bearing interest, is the only fnnd, on which the Government 
can rely for loans; and it is an abandant one for eveiy 
necessary pnrpoee." 

The plan, recommended by Thomas Jefferson was and is 
in exact accordance with the imperative demand of a Con- 
stitntion, expresdy formed to establish justice. 

Mr. Stilwell returned at tlie reqnest of Secretair Cliase, 
who then asked Mr. Stilwell to write out tlie propositions 
he had made. On the argent reqnest of Secretaiy Chase, 
Mr. Stilwell wrote out his plan for the issue of Treasury 
Notes on the principle Thomas Jefferson had declared, was 
the only one, on which the Government could rely for loans. 

Tlioraas Jefferson, in view of the banks, that then ex- 
isted, declared that " hank paper vmst he euppressedy and 
the circulating medium must he restored to the nation, to 
whom itpropesly helongs." 

Secretary Chase was compelled by the overwhelming 
powers of a terrible war to finally consent to adopt the 
plan, written out by Mr. Stilwell ; and he says : " he was 
forced to out up small pieces of paper to circulate as money, 
hased on the credit of the people, whose property it was in- 
tended to represent." 

That paper was real fai money, with the stamp of the 



Government on it, declaring its first isaues as a full Legixl 
Jender in jHit/meTii (^all debts, j/ublio and pi'voate ; arid at 
the option of iis oioner coruvertible into a bond, hearing jivo 
and six per cent, imierest for the amount so converted. There 
has been no da; since when that money waa not worth as 
mnch aa gold. 

During the last twenty years I have eent thousands of 
documents broad-cast over our country. In all I have writ- 
ten, I tried to make plain the fact, that the Government of 
oar country has, by a train of unconstitutional, invalidating 
financial lawe wrongfully taken from the American people, 
since onr late war, more than seventeen hundred millions of 
dollars, that were actually paid by the Government for value 
received in the labor and property, that were used and con- 
sumed in the prosecution of the terrible war, through which 
we have passed. 

It fell to my lot in the early part of my business life to 
learn an invalnable lesson from the diagraceful failure of 
the United States Sank. ' 

i saw that bank, with its thirty-five millions of dollars 
capital, authorized to issue four dollars of paper for eveiy 
dollar of tlieir capital, and all in promise to pay silver and 
gold on demand. I knew, that such a bank, with its branches 
in every state, would be a power, that our Government could 
never control. 

S. M. Stilwell, in his essay on banking, says :■ " We, as a 
nation, have experimented with, and dealt in all kinds of 
credits from individual to national, etc . . . We had private 
bankers, State banks, and twice we have tried national banks ; 
and all have proved unsafe and nnsatisfactoiy. 

" The plain command, fonnd in the Constitntion to regu- 
late commerce between the States, has been neglected by 
Congress ; and instead of binding the States together for 
commercial purposes, the money-power has been left to the 
separate States to be exercised under a doubtful construction 
of the organic law." 

Peteb CooPEit. 



Wabhinqton asd Adahs Opposed to havs Bane Officials 
OcocpT Seatb in Conobess. ■ 

On page 20 of the Jonraal of the United States Senate, 
first session of the Third Congresa, commenced at Philadel- 
phia, PennBylrania, December 2, 1793, can be found the fol- 
lowing resolntioD, offered on the 23d of December the same 
year, and passed hy the United States Senate with bnt two 
dissenting votes, and signed hy George Washington, Presi- 
dent, and John Adams, Vice-President; "Ant peksom, 


Yet, a late Congress was composed of one hundred and 
twenti/ hankers, ninety-nine lawyers, fourteen merchants, thir- 
teen manufacturers, seven doctors, fonr mechanics, and not 
a single farmer or day laborer. This is agreeable to a state- 
ment made by Moses W. Field, M. C. 

I think this law was invoked to prevent A. T. Stewart, 
the largest importer of foreign goods, from becoming Sec- 
retary of the Treasury. 

Why shotdd it not be enforced now to oust speculators 
f mm our Congress, where they are making laws in their own 
favor and against the interest of the people J 

The wise men, who achieved the Independence, drafted 
the ConstitntioD and established our G-ovemment, well knew 
that it was unsafe to trust the goveramental law-making to 
bankers, usurers, or any one interested in such business. 
They knew it was morally impossible for persons, interest-ed 
in money-lending, not to attempt to legislate in their own 
favor and against the good of the people. 

I ever did and ever shaU advocate a purely national cur- 
rency, as long ae I live, as the only remedy against periodic 
stagnation, caused by special legislation, suggested and voted 
by banking representatives and specolators in the seats of our 



WashingtoD and Adams tried to imitate the Master, in 
driving the numey-changera out of CongresB ; but as yet 
their legislation haa not sncceeded as Christ did nineteen 
centuries ago. We must hope the people will become bo 
enlightened, as to expel them by au overwhelming vote. 

"Washington declared a fact, when he said, that " In ex- 
act proportion as we either alloy the precious metals, or 
pour paper money into the volume of the circolating me- 
dium, just in that proportion will everything in a country 
rise, and labor will be the last, that will feel it It will 
not benefit the farmer or the mechanic, as it will only en- 
able the debtor to pay his debt with a shadow instead of a 

This was in answer to a letter from a member of the 
Maryland Legislature, asking Washington's opinion as to the 
right of a State to issue paper money. He did not believe 
in coTiircu^n and injtaUon, that cause periodic j>a»«'£«. 

Pkteb Coofeb. 
Nbw Tors, SepL 30, 1871. 

Aeticle, Datdtq to 1863-1867. 
The nation, having found itself in a terrible war, and 
having exhausted all the means in its power to obtain gold 
and silver to meet the wants of the Government, onr people 
were compelled to see the country overpowered by its 
enemies, or to resort to a kind of forced loan, drawing from 
the people by taking all forms of their property and labor 
and giving them in payment treasury notes, demand notes, 
and the several forms of bonds in tlie shape of a currency to 
obtain the necessary snpplies to move and maintain armies, 
Bufiicient to save the life of the nation. When the great 
and good work was accomplished, a work, which gold and 
silver had failed to perform, tlien the amounts, so expended 
for that purpose, should have been regarded as the most 
sacred treasure of the country, and should have been made 
the permanent, unfluctuating measure of all values through- 



ont OUT whole country for all coming time, and never to 
be increased or diminished, only as jmt capita with the in- 
crease of the inhabitants of the (K>nntry. 

To ordain and eecnre ench an nnfluctnating measnre of 
all values for all property throughoat the vast extent of our 
country, and make gold perform its proper function, would 
have been a compensation of more, than equal value to the 
country, to more than replace the whole coet of the war of 
the Rebellion. 

The cnrrency, eo expended in saving thjB life of the nation, 
ehould have been considered of more value than gold itself ; 
because it performed a wOrk, that was entirely ont of the 
power of gold and silver to accomplish ; so that every 
dollar, expended in whatever shape, or whatever kind of 
value received, became as so much money, placed in the 
hands of the people, and wotdd not only have enabled them 
to carry on the war, but to pay the entire debt of the nation 
without inconvenience, if the amount of the people's money, . 
found in circulation at the close of the war, had been al- 
lowed to remain as the tools of trade, the life-blood of 
commerce in their possesdon ; but by shrinking the cur- 
rency and by taxing the people, and then taking* their 
money to purchase bonds, that were not due for twenty 
years, when the people were more in need of their own 
means and the aid of Government, than ever before to 
enable them to provide for the disbanded army, that had no 
other means to live, or anything to sell but their labor; by 
the shrinkage of the currency, all forms of laborwere dried 
up. Tlie source of all consumption and production was 
alike destroyed, and a general ruin spread far and wide over 
our country. 

Had the original law, which made paper money receiv- 
able for all forms of duties and debts, and convertible into 
six per cent, interest-bearing bonds, been continued, we 
would not only have had all our bonds taken at home, but 
prosperity would have still smiled on our country. 

As it is now, the Gk>vemment has taken from the people 



the tools of their trade, and has used its power contrary to 
the intereBte of the people, in the porchaee of bonds not 
doe for twenty yeara, loading the people with taxes, destroy- 
ing and breaking np the hasiness of the country. 

Nothing eliort of a compliance with the very first re- 
qniremeut of the Constitution will stay the torrent of evil, 
and restore prosperity again to onr suffering people. The 
establishment of justice demands, that the people should 
hare the same amount of currency continued, to enable 
them to pay the debts of the nation, that was reqnired to 
enable them to pi'oeecnte the war. 

The Government, having taken all forms of properly 
and labor from the people, gave them treasury notes as 
an equivalent for gold, as long as they had it ; and when 
, they had not the paper promise of the Gkivemment, l^al 
tenders, receivable for debts, taxes, etc. 

Fbtbb Coofbb. 

Addbesb to the Union League Clcb, 1867. 

Mt. firesid&nt and GenUemen of the UnionLeague Clmb : 

I find myself impelled by an irresistible desire to call and 
fix the attention of every lover of his kind and country on 
those appalling canses, that have so effectually paralyzed the 
varied industries of our people. Those causes have been 
Boffident to shrink the real estate of the nation to oue-balf 
the amoout it wonld have brought three years ago ; and that 
without having shrunk at the same time any of the debts, 
which had been contracted by the use of money, authorized 
by the Government of our country. There is nothing, that 
can be more important, than to find out and remove the 
causes, that are bringing bankruptcy and ruin to the homes 
of millions of the most industrious men of onr nation. The 
national policy, which has brought this frightful calamity on 
oar people, should receive the most thorough investigation 



and the most decided action bj the Government of our 
country. There is bnt one way of relief out of all this na- 
tional trouble and eorrow. The people themselves must 
enforce upon the administration the obligations, laid down 
in the Constitution, "to establish justice, and thus secure 
the general welfare of the nation." To do this, let us take 
it out of the power of States or Coqjorations to make, or 
unmake, the money of the country. It is the sole duty of 
the Government to coin money, as the Constitution requires. 
Let the Government itself, through its Administration, be 
restrained from meddling capriciously with the enrreney, 
and only under permanent laws and a well-understood and 
predetermined policy, always having reference to the good 
of the people. 

Let us have a national currency, issued solely by the au- 
thority and supported in circulation by the taxing power 
and the solvency of our Government. Such a currency 
should be fixed in volume, as j>er capita, to the amount of 
the people's money, actually found in circulation at the 
close of the war ; and it should bo made as certain and as 
permanent in value in its measuring power as the yard, 
pound, and hnshel, by its being made redeemable for all 
Government taxes and debts, except duties on imports. Our 
Government is bound by the requirements of the Constitu- 
tion to make the neceesary and proper law, as well as a legal 
tender money for all private debts. This currency must be 
always interoonvert^le with Government bonds at a low 
rate of interest, as compared with active iuveetmeDt. It 
shonld be a currency, which a bank or corporation cannot 
rightfiUIy issne, enlarge, or contract in its own interest, and 
which cannot be taken from the hands of the people by the 
" ever-sliifting balances of commodities " between nations, 
as is the case with gold and silver, when used as money. It 
will not be subjecttoany sudden contractions or expansions, 
but will be regulated by established law, based on scientific 
facts and principles of a just system of national finances. 
The treasury notes can be made just such a currency. This 



enrrency can always be kept on an average par with gold, 
or the currency of any other country, by ttie encouragement 
and the anpport, which it will give to the industiy and the 
prodnctiveness of the country. • It will increase indefinitely 
the eonntry's expoi-ting power. We will then pay our 
balances with other nations with our surplus products, 
and have but little occasion for the use of gold and silver to 
pay balances of trade. We can in no way become an ex- 
porting nation, except by stimulating our own productive- 
ness, diversified and enlarged in every direction of human 
industry, in which our materials are as good and abundant 
as those of other nations, and tlie labor and skill are ready 
for use, if properly encouraged. For this purpose I believe 
it will be wise for us to remove all internal taxation, and 
rely solely on a sufficient revenue tariff to meet the expenses 
of Government, Tliis subject is very much mieiuiderstood 
or misrepresented by our own advocates of free trade. It 
is the surplus productions of foreign countries mostly, that 
reach onr shores as imports, and it is also the surplus cap- 
ital of the importers and foreigners, that is employed to 
bring them here. Hence it is but right to tax this surplus 
for the absolute wants of our own domestic industry and 
capital. This is precisely what a tariff accomplishes. It 
taxes the importer and foreigner chiefly, who mast find a 
market somewhere, and those of our people, who will buy 
and use foreign products, which leave our own good raw ma- 
terials unusqd, and our own domestic laborers unemployed. 
This is violating the first law of nature — self-preservation. 
Let ue take care of our own people here at home, as the first 
duty of our own Government. And let us not make the 
great mistake of the governing classes in France, England, 
and Germany, where the wages of the operatives and work- 
ingmen are reduced to a bare subsistence. 

It is this ignorance or want of patriotism, that stands in 
the way of the public weal, both in theinanagement of our 
finances and the adoption of a judicious tariff. The people 
alone can vindicate their rights, and secure their own wel- 



fare, by taking an intelligent and proper interest in the ad- 
miniBtration of their own Government. Let them require 
from this Administration a return to the principles of pub- 
lic JQStice and equal rightst Let the Government be re- 
quired in some proper way to restore to the people the tools 
of their trade and dommerce, which have been so unjustly 
and cruelly taken from them. Let there be provision made 
for the return of the whole of that currency, found in cir- 
culation at the close of the Bebellion, whicli was worked out 
and paid for by the people in the labor, material, and service, 
which they had rendered to the Government during our 
Btru^le for the nation's life. It was a currency, which had 
lifted the American people into a state of unexampled pros- 
perity, never before known in this or any other country, 
and which can be restored to the people by the issue of treas- 
ury notes, paid out for the necessary expenses of Govern- 
ment, for the execution of great necessary international works, 
ench as the Northern and Southern Pacific railroads, which, 
when made, will strengthen the bonds of the Union, and 
open a vast country, with its untold wealth, for the enter- 
prise and labor of the people. I have sounded these notes 
of encouragement, warning, and advice time and again ; be- 
cause I believe they are for the peace and happiness of our 
country. At my advanced age I have no personal ambition 
or motive left but the welfare of mankind, and the prosper- 
ity of my beloved country. If it were the Ij^t word I should 
utter with my dying breath, I should vpam the people of 
this country against the insidious wiles of professed politi- 
cians, who are seeking for the spoils of office and the at- 
tractions of power — men, who are ready to lend themselves 
to all special and partial acts of legislation, if they can only 
advance their own individual interests. Such men oppose 
" civil service " ; because it will curtail their political patron- 
age ; such men barter the rights, the prosperity, and even 
the bread of the people, in order to share in the spoils and 
the temporary gains, which are thrown into the hands of a 
few by a pernicious system of banking, of which the period- 



ical panica of onr cotmtiy bear & frightfol record. They are 
the natural outgrowtli of the same iujnnons syetem. 

My arguments will he coDflnned by a reference to the 
facts, stated in the following letter in rektion to the cur- 
rency by F. E. Spinner, the former Aesistant Secretaiy. 
Mr. Spinner eajs, that there was pnt in circulation, in all 
the forms of six per cent., five per cent., and 3.65 per 
cent., of l^al tender money, $1,152,924,892, beeidea the 
seven-thirties, §830,000,000, which Mr. Spinner says were 
intended, prepared, and used as currency. This amount had 
been paid out as bo many dollars, and had become the peo^ 
pie's money, which the Government was then and forever 
boond to receive from the pei^le as Itgal tender dollars for 
every form of taxes, duties, and debts. The failure of the 
(Government to do that duty has cost the nation thousands 
of millions of dollars. It will be recollected by many mem- 
bers of this Clab, that we were favored on a former occasion 
by Prof. White, of Cornell University, with an account of 
the losses, sustained by the people of France by the nse of 
aesignats, authorized by that Government. I have always 
r^retted, that my esteemed friend, Prof. White, had not 
gone far enough into the true history of the rise and prog- 
ress of the assignats, to see that, the injurious losses, oc- 
casioned by them did not arise from an improper action of 
the republican Government, but from the combined powers 
of the internal uid external enemies of the Republic. This 
will appear by the following facts : The assignate of France 
were based on the confiscated property of the clergy and 
nobility, in which both the clei^ and nobility had a deep 
interest, that led them to denounce the assignats, as based 
on theft and outrage. There wasanother royal party, which 
nnited in declaring, that their lands had been taken withont 
any of the forms of law, and therefore the title still re- 
mained in the clergj. The parties all united in declaring, 
that the assignate were utterly withoiit any basis to secure 
their redemption. The parties never ceased to agitate and 
war on the credit of the assignats. But finding the Bev- 



olation too strong for tliein, and that its cause was being 8o 
Bnccessfnlly strengthened by conquering the enemies of lib- 
erty and of the nation, that other nations were yielding 
to its power, that its armies were victorions, and that its 
principles, as developed by the Constitution and laws, were 
Buch as reason and humanity approved, history tells ub, that 
all the enemies of the new Frencli Government united in an 
effort to desti-oy the power of the nevr Government by cir- 
cnlating counterfeit assignats in every direction. Tlie coun- 
terfeiting commenced in 1792 in Belgium and Switzerland, 
and was used extensively, as the best means of destroying 
the power of the Bepublic. It was found by the nobility, 
that Belgium and Switzerland were too much in sympathy 
with tlie revolntionists to be trusted. Tliey then extended 
their operations to London, where they found more scope 
and greater opportunities for nninternipted work. Ilistoiy 
charges, that England lent her aid by allowing " seventeen 
manufacturing establishments in operation in London, with 
a force of four hundred men, in the production of the aa- 

It was fonnd that 12,000,000,000 of counterfeit francs had 
been circulated in France, when only 7,860,000,000 of franca 
had been issued by the Gtovemment, showing, that the dan- 
ger of an over-issue was from tlie enemies of tlie Govern- 
ment, and not from the Government itself. The assessed 
value of the property, on which were based the 7,860,000,- 
000 of francs, was, in 1795, 15,000,000,000, showing, that 
as long as the confiscation of property was maintained by 
the Government, the assignats had good security for their 

It is more than probable, that we shall see again what are 
called " prosperous times," when the banlcs have annihilated 
our greenback currency, and have substituted tlieir own 
money, on the old and false pretense of a " specie basis," 
which makes tlieir money " as good as gold," until the gold 
is really wanted. But I warn my countrymen, that this will 
be a baseless prosperity, that can only last while there are 



any secttrities or property, that can be pledged for loans, 
the loans themselves being pnffed up under the conceit, that 
they are payable in gold ; then another crash will come, 
and we shall have the Bame scenes of desolation and snffer- 
ing, that we have experienced as a people for the past three 

I do most earnestly beseech the American people to see 
to it, that their chosen mlers are men, imbued with the 
spirit and letter of the Constitution, which, after a great 
Btrnggle, was enacted " to establish justice, promote the gen- 
eral welfare, and secure the blessings of liberty to ourselves 
and oar poaterily^." 

Fetbb Coopeb. 

To Pbesident Graitt. 

Nbw Tobk, Deoemtwr 10, 1878. 
President Gbant, 

Sbnored amd Heapected Sir: 

Allow me to say, that the millions of the unemployed 
people throughout our country look with auxions hope to 
our Government for the adoption of some plan, that will 
inspire confidence in those, who have the means, to give the 
needed employment, which alone can Bave those millions of 
the unemployed from the desperation of starvation, a con- 
dition, which they see rapidly approaching, and they have 
nothing to sell for their relief but their labor. It is fortu- 
nate for our country, that the Constitution lias provided, that 
" Congress shall have power . . . to lay and collect taxes, 
duties, imposts and excises, to pay the debts, and provide 
for the common defence and the general welfare of these 
United States." 

There is nothing, that will so effectually relieve their 
wants, " establish justice, and promote the general welfare," 
as a uniform system of money, weights and measures. 
There is nothing more important for the general welfare. 



than a nnif orm system in the valne of money, as it controU 
all that is measared by the bnshel, the yard, or ponnd. It 
measures as effectually the poor man's potatoes, as it does 
the rich man's rob& 

Having been myself a working man through a long and 
laborious life, I feel for their condition and wonld gladly 
' better it, if I conld. At present, I believe, there is not less 
than a thoneand persons depending for their bread on the 
bnsineBB, carried on within the circle of our family. 

Thus far we have been able to keep two rolling mills 
running, and also two mills for the mannfactnre of wire 
and springs, besides giving employment to some two hun- 
dred persons in the mannfacture of glue, oil and isinglass. 

"We have four blast furnaces now blown out for the want 
of Bale for Hie iron tbey would prodnce. 

The mining of ore for these furnaces must soon stop, un- 
less the furnaces can be put in blast No one can contem- 
plate the continuance of the present state of things, with- 
out a feeling of horror at the pro^>ect. 

I herewith send you a printed copy of a plan, that I sent 
in 1889 to the Senate and Hoase of KepresentatiTes. 

I think you will agree with me in the opinion that, if the ' 
plan for regulating the currency, then presented, could have 
been adopted, it would have saved us from the ruinous 
panic, through which we are now passing, and would have 
secured for our country the resumption of specie payments 
in the shortest possible time, and that without doing 
violence to any of the great interests of our country. If 
this plan could even now be adopted, it would do more to 
inspire confidence and revive the trade and commerce of 
the country, than any of the plans, that have been pro- 
posed. The whole people will soon come to understand, 
that there is no form of wealth, that can be made more se- 
cure than a legal tender paper currency, that shall only be 
allowed to increase as per capita, with the increase of popu- 
lation. . . . 

When moh a currency is provided and made as secure as 


oorrr Aim papkh cueeewct. 17 

ft bond and mortgage on the whole property of the conntry^ 
it will not be long before it will be found, that the principal 
valae of gold and silver will be to make porchafies and 
settle balances with foreign conntriefl. . . . 

With an ardent hope, that the beet means may be adopted 
to secure the highest welfare of the nation, 
I remain, 
TooTB with great respect, 

FsrrBB (DooFBR. 

Pirrmoii to Cokgr^s. 

CfenHmien. '—^The bill for the refonding of the $637,- 
000,000 of five and six per cent, bonds, falling due during 
the year 1881, that are yet unprovided for, is attracting veiy 
great attention and exciting Uiuch interest among the people 
in all parts of the country. 

The question of most importance to the people, in rda- 
tion to this bill, is not the one as to how this part of the 
debt shall be refunded, bat as to how it shall be paid. 

There are evidently two interests involved in the discna- 
sion of the question ; one of these interoBts is that of the 
masses of the people, who have the debt to pay, and the 
other that of bondholders and bankers, who are -to receive 
the interest and the principal to be paid. The people want 
to be relieved from the burden of interest and debt, in the 
shortest time and at the least possible expense, whilst the 
holders of the bonds evidently want their claims perpetuated , 
as long, and to obtain as much as possible out of it. 

Is it not the positive duty of Congress to legislate for the 
greatest good of the greatest number? I fear they are con- 
sulting far too much the interests of the small number of 
bondholders, who want the debt perpetuated, and not those 
of the masses, who have the burden of debt to bear. 

The bankers want the bonds, coming due, refunded into 
those bearing as high a rate of interest as they can obtain, 
and hftving a long Utao to nm, on which, onder the Nation^ 



Baukiiig Act, they can secnre 00 per ceat. in bank notes, 
which are jnst as valuable to them ae the money the^ invest 
in the bonds. B; tliis means they are able to obtain a 
donble interest ont of the people on about every dollar of 
the debt thus refunded ; one on the bonds tliey buy, and the 
other on the bank cnrrency they receive from the Treasuiy, 
which they loan to the people. 

Now, I ask you as intelligent men, why ahonld not the 
Government iesue its currency for the benefit of all the 
people in the form of Treasury notes, made receivable for 
all forms of taxes, duties and debts, and as Thomas Jeffer- 
son said, bearing or not bearing interest, as the case may 
be ; and whicii, he said, constituted an ample fund for every 
contingency, that may arise. These notes may be redeem- 
able in coin or receivable at Post Office pavings Banks, 
where a rate of iDtfirest is paid, that will keep tliem at par 
with coin. Why not use this currency to buy gold and sil- 
ver bullion and coin it, and with this coin, and with the 
hundreds of millions now idle in the Treasury, pay off the 
bonds, falling due as fast as possible, and thus stop the in- 
terest on tliem, and relieve the people from the debt en- 

Do yoQ not think, that United States Treasnry notes, thus 
issned, would be j net as valuable for currencr^, as are the notes 
of the National Banks? 

Cannot the Government keep its notes at par witli coin, 
as easily and more permanently than can the National 
Banks t Cannot the Government, by the taxing power it 
possesses, command nearly all tlie gold and silver bullion, 
and does it not have the absolute control of the coinage of 
such bullion, and by these means will it not be able to re- 
deem its notes in coin with greater certainty, than the bankd 
can their notes ? 

The Secretary of the Treasury, on page 1 5 of his last annual 
report, informs us " tAai the amount of United States notes, 
presented for redemption for one year prior to Nov. 1, 1880, 
was only $706,658 ; while the amoxtni of coin or bullion de- 



posUed in the Treasury, Assay Offi(X, and the minis, during 
the same j>enod,ir>as $11,396,535.67 ; and thai those depoeOs 
of c&in and bullion were paid for in United StaUs notes 
and silver certijicates." From these facts it most be self- 
evident to all, that the people prefer Treasury notes to coin, 
and that there is a demand for $101 of Treasory notes to 
$1 of coin. 

Do not these facts also sliow, that the people prefer the 
legal tender Government Treaanry notes to either gold or 
silver coin, or to any other kind of ctirrency? 

Secretary Sherman, on page 14 of his last annnal report, 
also says ; 

** United States notes are now in form, security and con- 

" Ordinarily the superior convenience <f these notes wHl, 
as at present, make a greaiisr demand for them than for 

" The United States note, to the extent that it is willingly 
taken by the people, and can, beyond question, be main- 
tained at par in coin, is the least burdensome form of debt." 

Secretary Shenuan tells us also, that with the notes now 
in circulation, " The public saves over seven millions of an- 
nnal interest," and " secures a safe aind convenient medium of 
exchange," and we have the assurance, that " a sufficient re- 
serve in coin will be retained in the Treasury, beyond the 
temptation of diminution, such as always attends reserves, 
held by banks." 

Now I asJc yon, gentlemen, if these statements of Secre- 
tary Sherman, who is regarded as one of the ablest and 
soundest financiers of the world, are true, what possible ob- 
jection can tliere be to replace the present notes of the 
National banks with United States Treasury notes, as was 
recommended by the late Johti E. Williams, President of 
the Metropolitan Bank of New York City some years ago? 
If the people prefer these notes to coin ; if they are " the 
best currency ever Issued ;" if they " save interest on the 
pnblic debt;" if they are " readily maiatained at par with 



coin," why not have all our paper currency in United 
States Treasury notes, instead of bank notes ! There is not 
the slightest doubt in my mind bat that, if the Government 
should iseue its Treasury notes, made receivable for all 
formB of taxes, duties and debts, and at the option of the 
Govnerment made redeemable in coin, or received at Post 
Office Savings Banks, it could issue an amouot equal to the 
whole $637,000,000 of bonds now due, and the people would 
give-coin or an equivalent in coin, in labor or in any property 
they have to dispose of, for every dollar of snch notes issued. 

While members of Congress are spending days sad weeks, 
discussing the question, as to whether the bankers will buy 
3 or 34 per cent, bonds and Treasury notes at par, the 
people stand ready to take fliese Tressuiy notes at par, even 
if they bear no interest whatever. 

If the $345,000,000 of bank notes, now in circnlation, 
are withdrawn, and Government Treasury notes issued to 
take their places, and these Treasury notes used in cancelling 
the bonds referred to, over $20,000,000 of annual interest 
could be stopped at once. Or, if these notes were used to 
pay for labor and material in the constmction of public 
works, they would complete three lines of double track rail- 
roads from the Atlantic to the Pacific, and build fifty first- 
class ocean steamers, which the people could have for use 
at the bare cost of running expenses. 

Is it right for the Government to donate to bankers so 
much money, which, if given to the people in payment of 
public improvements, would add such enormous sums to our 
national wealth, or if used to cancel the bonds, would re- . 
lieve the people from such a burden of interest! If the 
paper notes in circnlation were all in Treasury notes, and 
these notes were used as here directed, the industries of the 
country would be so stimulated, that the annual revenues 
pf the Government would provide funds for cancelling the 
public debt as fast, as it becomes due, as is now readily 
being done by France, under her admirable system of pub- 
lic works. 



Herewith I enclose a printed slip, which contains some 
very important facts and figures, embodying my views in 
reference to the funding and payment of the National debt. 
I will thank yon most sincerely if you will give them yonr 
most careful consideration. The truths they contain can be 
verified from the records of the Treasury Department, and 
by any skilled accountant. 

You will discover, by verifying these figures, that by snb- 
Btituting Treasury notes and omng the idle coin in the 
Treasury and the $100,000,000 of annual surplus revenues 
of the Government, that the public debt can all be cancelled 
in about eight years at a saving to the people of $S91,- 
000,000 over the sum required, if this portion of the debt 
is refunded into twenty-year bonds, as has been proposed. 

I believe that, if the policy here indicated is adopted by 
Congress, that its members will be entitled to the gratitude 
of the whole country, and by relieving them fiom the 
burden of a National debt, and greatly promoting the Na- 
tional industries, they will make this the most prosperous 
nation on the face of the globe. 

One of the great benefits to be derived from the use of 
United States Treasury notes in place of bank notes, will be 
that it will give the people a volume of currency, which will be 
uniform, and which will not be subject to inflation and con- 
traction, as bank currency has always been. It is a principle 
recognized by all writers on political economy, that other 
things being equal, the volume of currency determines the 
prices of all property, and that, where that volume is inflated 
. or contracted, prices are incroaeed and diminished in a like 
ratio. Under the present National Banking Act, the bank- 
ers have the power to inflate the currency to within about 
10 per cent, of the entire bonded debt or to $1,600,000,000, 
and then contract it as much aa they choose. You can 
imagine how disastrously such expansion and contraction 
must work upon the business of the country, and what enor- 
mous profits the bankers, who have control of the volume 
of correucy, are able to realize by using the power the 


23 conr and paphe ctiKEEiroY. 

people thus place in their hands. With all oar paper cnr- 
rency in United States notes, no Buch inflation and COD traction 
conld possibly take place. No bill, affecting the volnme of 
currency, conld be passed, except after the most careful con- 
sideration and thorough discussion by the wisest men in the 
National councils, and by the press and people of the entire 
country. While under the present National banking system, 
a few bank presidents, in some back parlor, can inflate or 
contract the currency to the extent of hundreds of millions of 
dollars, without the people knowing anything about it, until 
many of them flnd themselves on the verge of bankntptcy. 

If oiu- paper currency is all in Treasury notes, the volnme 
can be so regulated by Congress as to bear a Qniform rela- 
tion to the wealth of the nation, and be increased j>er capita 
as the population and business of the conntry increase, and 
tlie contraction of such volume be forever prevented, and 
the purchasing power of money be made as nniform as the 
measuring power of the yardstick or pound weight. 

Such a currency would, not only give the people nniform 
prices, but unparalleled prosperity in all departments of 
business. It would lessen crime, promote virtue and make 
us a free, happy and intelligent people. 

Let me entreat of you, gentlemen, to do one thing for the 
people, before you adjourn, if nothing more: attach a 


THE Secretary of the Treasitby to isbpb UNrrED States 
Treasury notes to take the flaoe of the notes of ant 
National bank, that mat betibe ttb ciboitlatton. 

Every serious contraction of the currency works disas- 
trously to business, and, if a 3 per cent, refunding bill is 
passed, the banks, many of them, are threatening to retire 
their circulation. A clause of this kind would obviate any 
difficulties, that might arise from such a course, and would 
place the business interests of the country beyond the power 
of banks to materially disturb them. 

Yours with great respect, 

Petes Cooper. 



Abticlb Df THE Kew Yokk Tbibuhb, Notembbb 21, 1874. 

To the EdUor of the Tribune. 

Sm: — I have read the able and moBt interesting letter, 
lately pabiished iu The Mjening Poet by mj honored and 
respected friend, the Hon. Charles O'Conor. That letter 
brought to mj reeoUection a conversation, lield with a dis- 
tinguished lawyer of this city, some forty years ago. In 
that conTersation the counsellor was exceedingly eerere on 
Gen. Jackson's war on the United States Bank — sn institu- 
tion, that be regarded as an indispensable means to promote 
the general welfare of the nation. I saw, that tlie counsellor 
had entirely overlooked the frightfnl evils, brought on the 
country by the paper money, issued by that bank during 
the first four years of its operations, when it was found to 
have issued $40,000,000 of paper money, and had in its 
vaults only $300,000 in gold to redeem it. When this fact 
became known the President had to flee for his life. Lang- 
don Sheves, a distinguished gentleman from Charleston, 
was invited to take his place as President of the bank. A 
eonncil was then held for five days, when it was determined 
to curtail their accommodations 20 per cent, per month, by 
which means they barely saved the bank, and literally 
mined aD, who were in debt by the shrinkage of all values 
throughout the country to less than one-half the amount, 
that property had sold for under the inflation of prices, 
cansed by the enormons amount of paper promises to pay 
gold, that had been in circulation. 

This should be sofficieut to show the ruinous policy 
of allowing anything to be used as a money measure of 
the value of property or labor, that has not in it the evi- 
dence in real value of gold actually dug, or a mortgage 
on the whole property of the conntry to secure its final 

After the connsellor had completed his severe censures on 
the policy of Gen. Jackson, I ventured to say, that I would, 
if he had no objection, give my opinion of what would he a 



true fnaocial policy for a new nation. I then said, that I 
would suppose a case to illustrate and bring near home what 
appeared to me a true financial policy, that a nation un- 
fettered by debt should adopt. 

In order to find out where we have drifted, I will now 
ask yon to go with me through the rise, progress, and de* 
velopment of tWo nations. To do this I will ask you to 
suppose, that two separate, independent, intelligent colonies 
bad arrived, one on this island and one on the Jersey shore, 
, with only their implements, intending to live on what they 
could fiad or get out of the ground by their labor. Suppose 
the river was the dividing line between them, such a people 
would soon find, that the exchange of commodities in kind, 
one with another, was attended with a great expense of 
time and labor. An intelligent people would look for some 
means of relief from the labor of carrying heavy materials 
to places, where they 'were not wanted for immediate use, 
in order to be exchaoged or bartered in kind for things in* 
dispensable to their wants. 

If an Intelligent community should find gold and silver, 
that could be obtained with great labor, they would see that 
gold and silver were durable, malleable, and easily put in 
forms, convenient for a circulating medium. In order to 
make it a just means to measure all forms of labor, such a 
community would employ one man to dig gold and silver, 
and another to dig corn and potatoes ; and when the man 
had put his silver and gold in convenient forms for currency, 
they would see the great advantage tliey would obtain by 
exchanging the day's labor of gold and silver for the day's 
labor of com and potatoes, and all tother ancles, that em- 
bodied labor. 

This form of currency would circulate from hand to hand, 
carrying with it tlie evidence of labor actually performed. 
The whole community would be delighted with their im- 
provement, as the wear and tear of such a currency would 
be BO small and the saving in labor so great. Such a com- 
munity would naturally grow and prosper, until their number 


com AHD PAPER OtniRENOT. 26 

would BO increase, as to make it necessary to send tiieir gold 
and silver to distant places at great hazard and expense. 
An intelligent conimanit;, instead o£ sending gold to New 
Orleaos to buy engar, would naturally establish a safe place 
of deposit for gold here, and then send an order to New 
Orleans, that would cause the gold to be delivered to any 
one holding that order. The order would be more valuablo 
to the man in New Orleans, whtf wanted something from 
New York, than the gold itself ; each an order as this would 
save the expense aod risk of sending the gold in both di- 

As it happened in olden times, when it is said that 
" the sons of God " (or the sons of good) " came together," 
that "Satan" (in the form of selfislmeaa) "came also 
among them," so it has unfortunately come to pass in our 
country ; these men were not satisfied with the advantages, 
gained by drawing bills on gold deposited, instead of send- 
ing gold backward and forward from one distant place to 

These artful, selfish persons, whose proper business it was 
to earn their livingby digging gold, and putting it into forms 
convenient for enrreney, found that they were working just 
as hard as the men, who were digging com and potatoes. 
These men saw promises to pay gold on demand, passing 
freely from one hand to another. The cunning man, whose 
business it was to dig gold, says to his weak-minded neigh- 
bor: "You see, that those paper promises are just as good 
as gold^ as the people buy everything they waut with them; 
if yon will join with me, we will get a charter, that will en- 
able ns to get our com and potatoes with much less bard 
labor." They at once apply for a charter for a baok. If 
objections should be made to giving them one, such objec- 
tions are quieted by giving those, who object an interest in 
the stock. 

In this way pictures, called money, encouraged by legis- 
lative acts, with all the other forms of special, partial, and 
class legislation, have filled the mind of the people with false 



hopes of living without labor, and have thna made paper 
mono; the grand demoralizer of the nation.* 

I wish you to keep the Bupposition in view of two inde- 
pendent Govemmenta, only divided by a river. Bear in 
mind, that one of these Governmente eontiuned the nee of 
gold and silver, and drafts on the deposits of gold, while 
the Oovemment on the opposite side of the river chartered 
banks, with the power to pour paper money, promising to pay 
gold on demand, into their circnlating medium. The nat- 
ural cottseqnence of pouring paper money into our circula- 
tion would be to raia© the prices of all forms of property 
and labor under the Government, that iseaed paper money. 

The pric^ of everything, having been raised on one side 
of tho river, the people woold naturally go to the cheap la- 
bor Government on the other side of the river to buy what 
they required. This trade would go on as long as their 
banks continued to pay specie on demand. It would not be 
long before the people, that inflated their currency with paper 
money, would find, that their trade was going over to the 
Government, that continned to measure all tiieir property 
and labor by a gold standard. That Government would 
undersell the Government, that had raised the prices of all 
property by their nse of paper money. The people in the 
Glovemment of inflated currency woidd soon ask for a tariff 
to protect them against the cheap labor on the opposite side 
of the river, and in proportion as their prices of all labor 
and property increased in cost, they would And an excuse to 
ask for more banks and paper money, as we have done. Li 
the course of time men would go to the banks and demand 
gold in lai^ quantity, when it would be found, that the 
banks had promised to pay gold on demand, when it was 
entirely out of their power. 

. • Mr. Tonge, In Wb " History of Buifcing," loijt, that one aom of $80,- 
000 started three bao^ in one day. The taoaej was rolled into their 
banks, until thej oonld swear, that thej had 930,000 In bank, and then 
rolled ont and sent to start another bank, and bo on, nnlil three bank* 
vera started in one daj. 



The men, who onght to have been digging gold, had got 
their com and potatoes for paper promises without work, 
and as paper money was easily made, tliey were enabled to 
hny finer hooses, more costly furuitare, and live more ex- 
pensively, and thereby tempt their neighbors to borrow these 
paper promises to pay gold, and give mortgages on their 
property, in order to live in the same style and course of ex- 
travagant expenditures as their neighbor the banker. 

Finally, peremptory demands would be made for gold,,as 
they were on the old United States Bank, when it had is- 
sued $40,000,000 in paper, having but $300,000 in gold to 
redeem it A paper currency, when made a mortgi^ on 
the whole property of a new country, should never be al- 
lowed to exceed the amount of gold and silver, that would 
circnlate, if there was no such thing as paper money allowed, 
unless it becomes absolutely necessary to increase it to save 
a nation's life. 

In tlie course of my argnment with the counsellor, I en- 
deavored to show the terrible power, that the old and the 
new United States Bank, with its branches, had exerted in 
every State. I believe it cau be shown, that such a bank, 
with its branches in all the States, would spread a net of 
temptations tlirongh the community, too great for poor 
human nature to bear. It would do this even with a good 
man in the control of the main bank. The good man would 
see, that as the hanks increased their loans, prices would rise, 
and people increase their expenses of living, until the good 
president would feel it his duty to contract their accommo- 
dations^ in order to check their extravagance. Such a pres- 
ident would be tempted to say to himself, " I certainly have 
a right to buy or sell with the property, that I had before I 
was made president of the bank." He therefore sells out 
all he wishes at the high prices, and tells his friends they 
had better sell, as they will be able to buy everything cheap, 
as soon as the bank withholds the accommodations, on whidi 
their customers depend. 

The same temptation to make a fortune out of the ruin of 



their cuetomers was presented to the preeideut of every branch 
bank in every State. As eoon as an order was received from 
t^e mother bank, directing branch banks to ciirtail bank 
disconnta, the presidenta of all the branch banks would then 
be tempted to eell all the; coold before commencing to re- 
fuse diBcount8,.in compliance with the order of the mother 
bank ; as they would be sure that all property would fall in 
proportion to the extent of the contraction of the discounts, 
on which the general business was dependent. As Eoon as 
it was believed, that property had fallen to the lowest point, 
all the presidentfl and the directors of the mother bank and 
its branchea would, not only buy property with the means 
they had before they were made presidents, bnt those of 
them, who were very anxious to make a fortune in a short 
time, would use their opportunity in buying up property on 
credit, at the ruinous rates, at which it would have to be 
sold to settle the claims, held by the bank. The presidents 
and their friends would feel perfectly safe in buying with 
money and credit, knowing as they would, that property 
would again rise rapidly as soon as bank discounts could be 
freely obtained. 

I think you will agree v?ith me in opinion, tliat Gen. 
Jackson was right in doing all, that was possible to put an 
end to an institntion, that was building up a moneyed aris- 
tocracy on the ruin of the best and most enterprising men 
of tlie nation. 

This conversation ended as we alighted from the care, 
when the counsellor caught me by the arm and said, that he 
had never seen the subject in that light before. He then 
agreed with me, that all efforts to get something for nothing 
are a mistake, if not a species of fraud. 

I have, with much hesitation, ventured 1« address you 
this letter, as my humble effort to call and fix the attention 
of the American people on the causes, that have led to the 
widespread political corruption, that now threatens with de- 
struction all that we hold dear as a nation. I know yon will 
agree with me as to the necessity of finding out the causes 



of the evils we deplore, before we can hope for the relief, 
that all should desire. 

The great corrupting sin of onr country and the w6rld 
hae always been an eager effort to get the property of others, 
vitbont giving an equivalent in any form of useful labor. 
To accomplish this purpose, our fathers commenced our his- 
tory by getting the Indians' land without giving them any< 
thing of real value, and in the main droTe them from thdr 
homes by force. . . . 

The fact that onr General Gk>vemment failed to prevent 
the individual States from issuing wliat were to all intents 
and purposes *' bills of credit," in the shape of pictures called 
money, and a still further inflation of the cnrrency became 
neeessary to save the nation. Inflation and war have raieed 
the prices of all labor and prop^ty, and have made all reg- 
skr business a game of chance, instead of a sure reward of 
honest labor. 

We may well say with the poet : 

" TiB grsatlj wise to talk ^ith oar put lionis, 
Aod ask them what report thej bore, 
And how they might hare borne mora welcome newB." 

All can now see, how wise it would have been for the 
United States Government to have insisted on its right and 
duty to pnt its stamp on everything in the shape of gold, 
silver, (»pper, nickel, or paper, that has ever been allowed 
to circulate as money. Could this have been done, it would 
have borne for us more welcome news, than the present state 
of our currency and country now presents. 

I have endeavored to show the train of evils, that have 
been entailed on our country by the failure of the Govern- 
ment to coin money and control all that has ^cr been 
allowed to circulate as money, as everything, so allowed to 
circulate as money, should have been baaed on a gold value, 
and made as secure as a good bond and mortgage on all the 
property of the country could make it. 1 will now attempt 
to show, that pap>er money has enriched the wealth of the 



conctty, while at the same tdme it hae deniorslized tlie peo- 
ple bj having iatroduced s false balance in trade. 

This seeming advant&ge will oontinne as long as we are 
able to induce the people of cheap labor countries to con- 
tinne to bring ns their persons, and give ns their gold in 
exchange for onr lots, oar land, and our labor at the highest 
valuation, that we have set on them. The lots and land 
thej have bought at onr high prices and now occupy, have 
more than doubled the value of all the real estate of our 
Gonntry ; and this has enabled our people to grow rich more 
rapidly and live more expensively, than any other people in 
the world. In proof of the above, I will state, tliat since I 
have lived in the upper part of the city, I had the offer of 
eighteen acres of land, bounded by the Fifth Avenue, 
Twenty-first Street, and the Eighth Avenue, for eleven thou- 
sand dollars — land that would have sold two years ago for 
Bome fifie^h millions of dollars. Unless onr Government 
act wisely in the future, onr fall may be as rapid as our rise 
has been great The true object of all good government 
should be to find out and do those things for a people, which 
the people, in their individnal capacity, cannot do for them- 

The unfortunately vacillating policy, adopted by the Gov- 
ernment in relation to the money of the country, in the 
course of efforts to arrive at specie payments, has already 
shrunk the value of all property and labor to an amount 
equal to all the money, spent in the war of the Eebellion. 
"riiere is nothing, that will revive the fallen prosperity of 
our country and enable people to pay their city, town, and 
National debts but a wisely and well-arranged revenue tariff. 
It is the only means, that will enable us to pay the nation's 
debts. This was made clear by events, tliat took place in 
our own country between the year 1834 and 1842, when our 
tariff, which had just paid off our old National debt, was re- 
pealed. By this repeal our mills were stopped, as tliey now 
are ; our furnaces closed ; lands fell to half price ; the 
Sheriff woe at work ; States repudiated their debts ; the 



Uaited States were nnable to borrow monej at home or 
abroad, and bankmpt laws were passed by Congress. The 
tariff system was again tried in 1812, and in less than five 
years the prodnctiou of our country, in iron alone, rose from 
two thousand to eight thousand tons; prosperity became 
nniversal and the public revenues greater than ever. In 
1846 the Free Trade policy was again tried by repealing the 
tariff, and notwithstanding the enormous amount of gold, 
found in California, money was as high as ever ; iron came 
in and gold went out. In 1857 the ciihnination was reached, 
and a crisis of ruin came on, when the Treasury was nearly 
bankrupt. In three years immigration fell below the num- 
ber, that arrived twenty-eight years before. 

The resalts of the two systems will be clearly seen by fol- 
lowing the tariffs of 1810, 1828, and 1S61, when labor was 
well paid, money plenty, and emigration great. We cannot 
too carefnlly contrast the prosperity, that has uniformly fol- 
lowed the tariff policy of our country, in comparison with 
the frightful consequences of an approach to Fi-ee Trade, 
as they appeared in 1817, 1834, and 185?, when labor was 
ill paid, money scarce, immigration declining, and bankrupts 
were numbered by thousands. If every step toward Free 
Trade bears such fruit, although it may look as beautiful as 
the whited sepulchre of old, if it is intended to operate in 
connection with our inflated paper-circulating medium, it 
should be dreaded as we would dread the presence of a pes- 
tilence. ' 

In Mr. O'Conor'a letter he recommends, that our Govern- 
ment should adopt, not only Free Trade, but direct taxation, 
as the policy of our country. The old confederacy of thir- 
teen States attempted to maintain their Government by 
direct taxation and failed. That failure was due to the fact, 
that the several States then ueglected to provide their quota 
of taxation for the General Government But the presence 
of a multitude of tax-collectors, and the personal contact of 
each with the farmer and mechanic, as claimant of dues to 
a remote interest, like that of the General Govemmqat, has 


39 conir ajto papes ctrBBEscT-. 

always been regarded as a great nnisance hy the common 
people, and has made the " tax-gatherer " in all ages a dread- 
ed visitor. A good reason why a well-arraaged revenne 
tariff of specific duties, raised from the smallest nmnber of 
articles, that will prodnce the required amount, is more safe 
than direct taxation may be inferred from the &ct, that Dr. 
Franklin says : " The American people, under the old Co- 
lonial GrOTermnent, were so immoderately fond of the mana- 
factujea and superfluities of foreign conntries, that they 
could not be restrained from purchasing them." 

When the several States and the Cieneral OoTemmcoit of 
oar comitry shall abolish all unwise and unnecessary laws, 
and cause all that remain to be so plain, clear and positive, 
that no man could long hold office onder them without a 
faithful performance of the duties, enjoined by the law ; 
when we, the people, determine, that we shall have honesty, 
intelligence and integrity in all places of pnblto tmst, and 
adopt a civil service to secure it ; when a faithful discharge 
of duties, useful to the public, shall secure a continoance in 
place and a suitable pension, when worn out in the public 
service ; when these privities are secnred to the people, we 
may then hope for a Glovemment, that all can honor, re- 
spect and obey ; it will then be a Government m harmony 
with the letter and the spirit of the Coustitation, nnder 
which we live. 

Lastly, let me say, that there can be no proper guarantee 
for the safety or perpetuity of our free institntions, tfll 
honesty and capacity shall be considered higher claims to 
office, than party fealty and services ; and when the officers 
and representatives of our General and State Governments 
shall have no other object in administering their respective 
functions than " to establish justice and promote the general 
welfare" of the nation. 

Fetes Coopeb. 



A Letter os tee Cuksesc7. 

NBW TOBK, Julj 12, 1875. 
To tke EdUora and Legidatora qf my natme GUy and 

An ineztingiiiBhable dcBire to do what I can, in this the 
ei^ty-fiftb year of my age, impele me to call and fix tlie 
attention of the American people on the appalling causes, 
that have bo efFectnally pardyzed the varied industries of 
OUT coimtry. This deBtmctive canse has already shrank the 
valoe of property in leas than three years to a condition, 
where real estate cannot he sold, or mortgages obtained oq 
it for more than one-half the amount it would have brought 
three years ago. 

There is nothing, that can be more important than to find 
oat and remove a canse, that is bringing bankruptcy and 
rain on millions of the most induBtriouH and enterprising 
men of the American people. The national policy, that 
has brought this frightful calamity to oar country, should 
receive the most thorongh investigatioD and the most de- 
cided action of our Government. 

I propose to show the true public policy, that nnderlies 
this whole question, and to indicate what appears to me, as 
the principles and the just methods, that ought to actuate 
the people, in Aeir exercise of power through the Govern- 
ment, and tlie remedies, which that Government ought to 
d'evue. For it must ever be borne in mind, that the Gov- 
ernment and its policy in this country, is just what we, the 
people, make it. It is our duty, therefore, at all times and 
in every way, to enli^ten and exhort the people, and trust 
to snch appeals, rather than any immediate criticism or di- 
rect appeal to Ihe Government itself. 

The whole question of the currency and money arises 
from the necessity of trade, or exchanges among men in the 
products of their industry, and the causes and methods, that 
make these exchanges fair, just, and beneficial to aU con- 
cerned, or a means of tyranny and injustice, and an occa- 



sioQ for the exercise of greed and Belfiehness. " A false 
balance is aa abominatiou to tlie Lord, but a just weif^t is 
His delight," This proverb contains the secret of all an- 
faimess in tbe dealings between man and man. Justice and 
truth are at the bottom of all fair exchanges, that are bene- 
ficial to both parties ; but false b^ances and ODJnst weights 
are the means, by which the strong and the insincere oppress 
or deceive their fellow men. 

Let us then trace, in some simple way, this necessity of 
exchange among men, and the process by which injustice 
first creeps in, and the beet method of keeping the true bal- 
ance and the " just weight," in the exchange of one eqniva* 
lent for another. 

Suppose a community or race of men to have passed that 
point in their progress, when simple barter is any longer the 
sufficient means of exchange, when some easier and more 
rapid method must be devised. The first thing selected &>r 
this purpose, is a concentrated and valuable form of labor, 
the most portable, durable, and susceptible of carrying on 
' its very face, the record and sign of its valne. Sach is gold 
and silver money. Its value is two-fold ; it is both intrinsic 
and representative. But it is its representative value, that 
makes it money, or a conventional sign and record of ex- 
changes. So far as its intrinsic value is concerned, the ex- 
change of a piece of gold for anything else, is simple bar- 
ter. But it liolds the " balance " even, and it gives a just 
weight for whatever is exchanged for it, because, it has coat 
labor to produce it. 

But there comes a time, in the complex and nnmerons ex- 
changes, that take place between men in a higher state of 
civilization, when even the barter of gold and silver for 
other products, concentrated and portable as is their intrinsic 
value, becomes too cumbrous a method and too slow to ef- 
fect these exchanges fast enough, and to keep the record of 
them in the most convenient shape. For this purpose the 
intrinsic value of the means of excliange is superseded en- 
tirely by the representative. The record is taken for a time, 



for the transaction itself, winch, however, is assumed will 
take place infallibly ; and in fftdee to seaav a real result of 
the etechan^^ values, wh^ atjir^are thest^jeet qfprom- 
ise a/nd record merely, thers nvust he some reed &r aesumed 
abUiiy on the part of the one, who make* the pronvise, that 
he can and will make thai promise good. This is the origin 
qf paper money. The vahie of thas papa" money, aUhough 
n(a intrinsic, as is that of gold and sUmr, yet ie no less r&U, 
provided, the eaxhange of values it is used to record, can in 
any way he made certain / it must hold an " even halance," 
and he sure to give a "just weight " i/n the end. But here is 
the point where deceit and injastice may creep in. The 
paper money is always representative of valne, and s mere 
Bign of a real exchange of values to take place at some fu- 
ture time. It may hence he falsified or trusted blindly, and 
on iusafflcient grounds. The selfishness and greed of men, 
or even their groundiess hopes and miscalculations may give a 
temporary value to this promise to pay, which it cannot sus- 
tain. This is the secret of panics, revulsions in business and 
prostration of credits. The lie comes to the surface sooner 
or later, and the credulous find themselves in the snare. 

This liability increases in proportion to the want of integ- 
rity and commercial intelligence in individuals and commnn- 
ities, where such methods of exchange take place. Individ- 
uals are less to be trusted with auch a vast interest, as the 
power of making paper money, than are corporate bodies of 
men ; and these in turn, are less to be trusted than well or- 
ganized governments, Grovemments themselves differ very 
much in this respect, in proportion as they are responsible 
to the people and easily held in check, or rectified by the de- 
mands of public interest. Hence, a true republican govern- 
ment is the safest agency in the world, to entrust with the 
power of making paper money. 

A semi-barbarous government, like the Turkish, will from 
time to time, even call in all the coin of the country, and 
reissue it again in a depreciated condition and value. So, 
paper money is subject to great fluctuations in value, if there 



be any uncertainty in the real and permanent iut^rity of 
the power, that issaea the paper, or a capricione use of ita 
aiithoritj in determining its standard of valne. 

Experience has shown, &at indiridnals cannot be tmpted 
with such a power. Even lai^ corporations cannot be 
trusted with the common welfare, involved in this privilege ; 
and while governments are the safest depositories of this 
power, they most be snch as are not subject either to revoln- 
tjon or to any radical changes of policy, or to any irrespon- 
sible exercise of power. This, it appears to me, is now the 
condition of our Government Its credit has been and is now 
the support of one of the greatest bonded debts, by means of 
which the life and perpetiiQrof the Union have been eecnred. 
The faith of this Government now gives valne to an im- 
mense paper currency, for which the law has provided no re- 
demption. It seems preposterous, tiierefore, to doubt the 
ability of this Government to give stability to any cmrency, 
which it might adopt as indispensable to the welfare of the 
nation. . . . Gold is diffusible, because it is accepted hf 
all countries as a standard of valne and a means of exchange. 
But it is also flnctnating in any locality by the laws of pro- 
duction, supply and demand all over the world. 

To fix npon an arbitrary and fluctuating standard, such a^ 
the worth or exchangeable value of a gold dollar, to indicate 
tlie exchangeable power of a paper dollar, is as uncertain as 
to take any other pemuuient product of human labor, snch 
as a bush^ of wheat or a ponnd of cotton. Nor can any 
standard be fixed for the value of a currency, because the 
uses and demand of currency are fluctuating wants. Now, 
the exchangeable value of anything depends upon its con- 
vertibility into something else, that has value (rf the option 
of the individual. This mle applies to paper mon^ as to 
anything else. But how shall Government give an ex- 
changeable value to a paper currency} Can it do bo by a 
standard, which is beyond its control, and which naturally 
fluctuates, while tlie sign of exchange, indicated by the paper, 
remains the samel 



This is the unsound state, which possesses the minds of our 
people and of our politicians. 

We must come out of thia unreaecFnahle conditioo, or 
'we shall be sahject, for all time, to these periodic distnrb- 
aoces of our monej and cnrrency, which bring such wide- 
spread rain and distress on oar commercial indostries, and 
work, on the part of the Government, positiTe and cruel in- 
justice. The remedy seems to me to be very plain. 

Fifst. — We must put thia whole power of coining money 
or issuing currency, as Thomas Jefferson says, " where, by 
the Cunstitation, it properly belongs " — entirely in the hands 
of oar Government. That Government ia a republic ; hence 
it is under the control of the people. Corporations and 
States have hitherto, in some form or other, divided thia 
power with the Govemment. Hence come the embarras- 
ment£ and the fluctuations, as may be easily shown. 

But now we must trust our Government with thia whole 
function of providing the standards and measures of ex- 
change, as we trust it with the weights and measures of all 
trade. So far from putting the people in the power of our 
Grovemment, and at the caprice of parties in power, I eon- 
tend, it will bring the Government more under the control 
of the people and give a check to mere pai-ty role ; for the 
more stake the people have in the wisdom and honesty of 
the adminietratioD of the Government, the more watchful 
and firm they will be in its controL 

Secondly. — We mast require the Government to make 
this currency, at all times, and at the option of the in- 
dividnal, convertible. But the cfioTency must he converti- ■ 
ble into aamdhmg, over which the Government has entire 
control, amd to tohich it can ^i/ve a definite as well as a per' 
moment value, which is its own iaUerest-bearijtg bonds. These 
are, in fact, a mortgage upon the embodied wealth of the 
whole comitiy. The reality of their value is as sound and 
as permanent as the Government itself, and the degree of 
their value can be determined exactly by the amount of in- 
terest the Government may think proper to fix. 


88 oonr and papeb otterewot. 

This convertibnity will alwa^ beep a check, both in the 
amount of currency and Uie amount of bonds, that may be 
called for at' any time ; for tKe bonds are property, creating 
an income, and the currency is merely the measure of prop- 
erty and the meana of exchange. If currency swells in the 
hands of the people, it will show, that buBinesa is active, ex- 
chaiigea numerous and investments profitable. If currency 
shrinks and bonds increase, it will only be to the extent of 
those natural fluctuations, which seasons and times bring 
upon the productive enei^es of man. But at no time will 
either the bonds or the currency be a mere drug upon the 
market, for they will be mutually con/vert/ihle. 

When we look into the history of the past for the real 
cause of those periodical panics, that have brought financial 
ruin on so many of our people, we find, that on all those oc- 
casions, as in the present paralyzed condition of the trade 
and commerce of ih.& country, the main difficulty has origin- 
ated in the unfortunate financial policy, adopted by the Gen- 
eral Government. A policy, that is producing for our peo- 
ple what the policy of the British Giovemment has broug'ht 
about for tlie people of that country, where the real estate 
of the whole of England has, in a comparatively short 
period, been transferred from 165,000 of the paat, to 30,000 
landowners of the present. And this, where the most rapid 
increase of wealth, perhaps, in thg world, is also attended 
witli the worst and most nneqnal distribution ; and where, 
instead of a diffused happiness and universal prosperity, the 
rich grow richer, and the poor poorer, by constant vacilla- 
tions in the measures of valne. 

Our own Government, instead of taking the whole sub- 
ject of money and currency entirely in its hands, as provided 
by the Constitution, allowed, for a timp, local banks to mul- 
tiply and continue, until their notes, which were promises to 
. pay specie on demand, became mere delusions, and the best 
informed and most prudent merchant found it impossible to 
distinguish those, that were redeemable or convertible into 
gold, from those that were not. The chartered Bank of the 



tTnited Ststes, in the first four yeare o£, its operation, issued 
$40,000,000 of paper with only $300,000 in specie to redeem 
ite notes. Banks evaded the law by issuing paper they were 
unable to redeem, when it was not wanted. The reason of 
this lay in tlie fact, that the demand for currency at times was 
far in excess of tiie qnantity, that conld be reabsorbed in 
gold, when the currency was no longer needed. 

Qold was not its proper agent of conversion, becanse it is 
uncertain in volnme, and is itself subject to the magnetic 
attraction of a foreign trade, that needs it to make up its 

Had tibe currency, which shonld have been all United 
States currency, been at once convertible into United States 
bonds, which, instead of locking it up, as would be the case 
now, should have given a small interest, until the currency 
was wanted again, when the bonds should immediaUiy be 
convertible into cntrencrr, we would have escaped the panics 
and stagnation of trade and stoppage of industry, which hae 
now affected the commerce of the world. 

The local banks were allowed to continue, until the war 
of the liebellion compelled the Government to issue a cur- 
rency as legal tender, as the only advisable means of carry- 
ing on its operations for the safety of the nation's life. 

In this extremity, our Government was literally com- 
pelled, as a war measure, to offer to these local banks nearly 
double the ordinary interest of loans, in order to induce 
them to lend their money to the Government, and base their 
banking on the bonds of the Government, and exchange 
their own currency for that of the United States. This 
great advantage, given to capital invested in the local banks, 
shonld have come to an end, when the war was over, as it 
was only a war measure. At the end of the war, common 
justice to the debtor class shonld have prevented the Gov- 
ernment from doing anything to lessen tiie purchasing power_ 
of those legal tender notes, which the people had been liter- 
ally compelled to accept for all products of their labor. The 
cuculation should have been left simply to tlie natural law. 




At the dose of the yjar the legal tenders ehovM ha^e been 
made the pemumetU tm/rrency <^ the covntry, amd the vol- 
ume shmld not home been increased or diminished, exo^ as 
per capita, with the increase of the j)opulation qfthe cotm- 
try. And further, it ahonld have been made convertible 
into the bonds of the Government, over which it has entire 
control, and to which it could give a permanent valne in in- 
terest. Instead of this, what do we jimd the Chmefmrne^ 
doi^ig f SeeobviTig that at a certain /utttre time, in 1879, 
the currency shall be convertiMe into gold! "Why did not 
our Congress proceed to reeolve, that \>j that time there 
should be gold enough in the country to absorb all the cor- 
rency, that foreigners might wish to be converted into gold t 
But this they could not do. Hence the present unwilling- 
nees of capital to invest in business or mannfactore, becaoBe 
the capitalist does not know what his property or his money 
may be worth, four years hence. This currency must be 
made convertible, or it cannot measure real property, or 
properly represent it. £nt its convertibility into gold can- 
not be made a matter of lega] enactment, but most be left 
entirely to the laws of trade, the supply and demand for 
gold, as for any other commodity. 

The only policy the Government could adopt to influence 
the influx of gold into tliis country, and keep its relations 
on a par with other commodities and with the paper cur- 
rency, would be, that the Government should require its 
import duties to be paid in legal tenders, adding always M« 
premium, on gold to the amount as estimated in the paper 
currency. That would be desirable at present, or until the 
national debt is extinguished ; because the Government is 
under obligation to pay the interest of its bonds in gold. It 
will have a tendency to keep the paper on a par with gold ; 
for it will make it easier to pay the dues of the Govern- 
ment ; besides, the superior convenience and certain conver- 
ti^ity of the paper will always have a tendency to keep it 
on a par, or even make it more valuable than gold. But 
interest-bearing bonds are purely a subject of l^al enact- 



metit, and hence can be controlled hy the GoTranment This 
ia the whole secret of the difficnity, and the real key to onr 
financial condition. Onr currency, in point of fact, ia not 
convertible into gold. Wlien it is not needed as at present, 
to the full extent of its volume to effect the exchangee or 
pay the wages of labor, because these are in a measure in- 
terrupted, fchat is to be done with it f Some say, " call it 
in and bam it up," that tlie rest may be worth its own vol- 
mne in gold. But this currency has already been in circu- 
lation ; it is now the measure of tlie whole property of the 
country, and has been the measure of many eschsnges, and 
now represents the great mass of indebtedness. To bring 
down its relative value to that of gold is as arbitrary a 
meaanre as to bring it to the standard of any other product 
— that of wheat or iron, for instance. 

It will place all in the power of those, who have the roost 
gold. It will transfer a large part of the property of the 
country to foreigners or to those, who can readily draw gold 
from Europe. 

Ent lot us consider this subject more closely. If we ad- 
mit, that there ia at any one time only a certain amount of 
gold in the worid,it ia certain, that our communis or nation 
cannot obtam more than its share, vjiihout leaving aU ^ 
others in a deficiency — at leaMfor a time. 

By this meama one naiion has thepower to derange the ex- 
changes, and through theee, the indtiatries of emery other coun- 
try. The caprice amd power even of a few large capitaliata 
can do this. It wovld he, therefore, an unwise policy for 
our Government to aUow this one a/rt^le of gold, thai all na- 
tions are struggling to obtain hy the use of all the arts, thai 
human ingenuity can devise, and which m/ust he employed 
in eet&ing all halancea of trade between differed couniriea, 
and which, as aproduct ofnatu/re and of human industry, 
ia uncotUroUaile by any law, that the OovernTnent can de- 
vise — to TTuiJce this the atandaird ofaB, values and the legal- 
ized measure of all trade and exchange in this oounfyy, would 
he in direct opposition to the opinion of many of the wisest 



atate8meny that owr country hm produced. This wiU ap- 
pear hy thefcMomng eg/reanon qftieir vieun onf/nemce: 


Thomas Jefferson in his letters to Mr. Eppis, volnme 6 of 
hie works, says : " Treaemy bills, bottomed on taxes, bear- 
ing or not bearing interest as may be fooiid necessary, 
thrown into drcnlation, imS, take thej^-ace of so mnch gold 
and silver. Bank paper most be snppreBsed and the drcnla- 
tion restored to the nation, to whom it belooga." 

Also the great statesman and philosopher, Benjamin Frank- 
lin, in volume 4, page 82, of his works, says : " Gold and sil- 
ver are not intrinsically of equal value with iron. Their 
value rests chiefly in the estimation they happen to be in, 
among the generality of nations. Any other well founded 
credit is as mnch an equivalent as gold and silver. Paper 
money, well founded, has great advantages over gold and 
silver ; being light and convenient for handling large sums ; 
and not likdy to have its volume reduced by demands for 
exportation. On the whole, no method has hitherto been 
formed to establish a medium of trade, equal in all its ad- 
vantages to bills of credit, made a general 1e^ tender." 

nAKiBL wsbsteb's opiniok. 

The following ie an extract of constitntional argument of 
Daniel 'Webster, affirming the right and power of the Gov- 
ernment of l^e United States to take excJusive control ovo' 
the standard of value and medium of payment : 

" Among the objects, sought to be secured by the Consti- 
tution, were commerce, ci-edit and mutual confidence in 
matters of property ; and these required, among other things, 
a uniform etandard of values, or mediums of payment One 
of the first powers, given to Congress, therefore, ia fliat of 
coining money and fixing the value of for^in coins ; and 
one of the first restraints, imposed on the States is the total 
prohibition to coin money. 

"These two provisions are industriously followed and 



completed, by denying to the States all the power? of emit- 
ting bills of credit, or making anything bat gold or silver a 
tender in payment of debts. The whole control, therefore, 
over the standard of value and medium of payments ia 
vested in the General Government. And again, collating the 
grant to Congress, and the prohibition on the States, a jnst 
reading of the provision is this : ' Congress shall have the 
power to coin money, regulate the valne thereof and of 
foreign coin, emit bills of credit, or make anything besides 
gold and sOver coin, a l^al tender in payment of debts.'" 

In view of this, Mr. John Q. Drew, a financial writer of 
New Jersey, pertinently asks : 

"Where, we ask, then, under the Constitntion, have the 
States any power to charter corporations with privil^es, 
that they themselves cannot exercise ; or where does Con- 
gress acqiiire the right to transfer sacb a vast power to a few 
favored capitalists?" 


The following is an extract from a speech of Hon. John 
C, Calhonn, in the Senate of the United States, on the enr- 
rency isene, and is eminetly appropriate to be quoted in the 
prevailing diecussion : 

*' It appears to me, after bestowing the best reflection I 
can give tlie subject, that no convertible paper, that is, no 
paper, whose credit rests on the promise to pay, is soitable 
for a currency. It is the form of credit proper in private 
transactions between man and man, but not for a standanl 
of value, to perform exchanges generally, which constitutes 
the approximate function of money or currency. Ko one can 
doubt but that the Government credit is better than that of 
any bank — more stable and more safe. Bank paper is cheap 
to those, who make it, but dear, very dear to those, who use 
it. On the other liand, the credit of the Government, while 
it would greatly facilitate its financial operations, would cost 
nothing, or next to nothing, both to it and the people, and 
would of course add nothing to the cost of production, which 



would ^ve every branch of our indnBtriea, agricnltiire, com- 
merce and maunf actnree, aa far as its circulation might ex- 
tend, great adrantagee, both home and abroad ; and I now 
undertake to afSrm, and without the least fear, that I can be 
answered, that a paper issued by Grovemment, with the sim- 
ple promiae to receive it, for all its dues, would, to the ex- 
tent it could circulate, form a perfect paper circulation, 
which could be as uniform in value as the metals them- 
Belves ; and I shall be able to prove, that it is within the 
Constitation and powers oi Congress to use such a paper in 
the management of its finances, according to the most rigid 
rule of construing the Constitudon." 


Herbert Spencer stands among the £ret writers and think- 
ers of this age. He studies and writes for the sake of truth. 
Hence the following from his peu will be fresh and invigor- 
ating to thirsty souls of this time : 

" The monetary arrangements of any community are ulti- 
mately dependent, lijie most other arrangements, on the 
morality of its members. Amongst a people altogether dis- 
honest every mercantile transaction must be effected in coin 
or goods ; for promises to pay cannot circulate at all when, 
by the hypothesis, there is no probability, that they will be 
redeemed. Conversely, amongst perfectly honest beople, 
paper alone will form the circniating medium, end metallic 
money will be needless. Manifestly, therefore, during any 
intermediate state, in which men are neither altogether dis- 
honest nor altogether honest, a mixed currency will exist ; 
and the ratio of paper to coin will vary with the degree of 
trust individuals place in each other. 

" There seems no evading this conclusion. The greater 
the prevalence of fraud, the greater will be the number of 
transactions, in which the seller will part with his goods 
only for an equivalent of intrinsic value ; that is, the greater 
will be the number of transactions, in which coin is required, 
and the more will the metallic currency preponderate. On 



Qxe other hand, the more generall; men find each other 
trofitworthy, the more fraqnently will they take payment in 
notes, hills of exchange and checks ; the fewer will he the 
cases, in which gold and silver are called for, and the smaller 
will be the qoanti^ of gold and silver in circulation." 

The pretensions of those, who are attempting to drive 
this country hack to the harbarism of a metallic basis for 
onr currency, are fast giving away for want of argument. 
It is being discovered, that all the great writers, who have an- 
alyzed the subject, and viewed it from a scientific standpoint, 
came to tho conclusion, that paper is Bnperior to metal for a 
corrency. Even Kicardo, the high priest of the bullionists, the 
father of the present British system, allows this. He says : 

"A r^nlated paper currency is so great an improvement 
in commerce, that I should greatly r^ret, if prejudice 
ahonld induce us to return to a system of lees utility. The in- 
troduction of the precious metals, for the purposes of money, 
may with truth be considered ae one of the most important 
steps toward the improvement of commerce and the arts of 
civilized life. But it is no less true that, with the advance- 
ment of knowledge and science, we discover, that it would 
be another improvement to banish them again from the em- 
ployment, to which, daring the less enlightened period, they 
had been so advantageously applied." 

Henbt Caet Baied, of Philadelphia, says: 
"The only system, ever devised for furnishing a country 
with a volnme of money in exact accordance vrith the needs 
of that country — ^neither in deficiency nor in excess— is that, 
by which it is proposed, that the public debt of the United 
States shall be converted into bonds, bearing 3,65 per cent 
interest, and legal tender notes interohangeable with each 
other, at the pleasure of the holder. 
It appears by a speech of "W. "W. Allen, Esq., that there 



had been drawn from the people, in the shape of taxes and. 
dntiee daring eight years, between the 31st of August, 1865, 
and the first of November, 1873, tlie amount of 8631,488,- 
677, making a rednction of the national debt in eight years 
of 1631,488,677, showing, that an annual amount of $195,- 
113,366 has been drawn from the people, in the shape of 
taxes, and paid towards tlia extinguisliment of our national 
debt. This amonnt was over and above the amount, drawn 
from the people to pay all the expenses of the Government 
in addition to the amount, required to pay the interest on 
the national debt 

Snch a rapid withdrawal of the people's means from their 
ordinary business, is quite sufficient to account for the ruin, 
now brought on untold thousands of the American people. 

For our Government to continue such a policy and go on 
drawing taxes from the people, as thBy have done to ex- 
tinguish the national debt, before it is either due or wanted 
by those, who hold it, is about as wise as it was for Pharaoh 
to expect his people to make bricks without straw. 

The people could and would willingly have paid the five 
dollars interest on every hundred dollars of the national 
debt. They could have paid the interest on the debt with 
enough of the principal to show, that they honestly intended 
to pay the whole amount. 

This they could and would have done, if they had been 
permitted to retain the tools of their trades ; the amount of 
currency, on which they were compelled to depend for their 
ability to pay the taxes on the cost of the war. 

I believe I have shown, that the policy, adopted by our 
Government to hasten a return to specie payments, has ren- 
dered the attainment of that object more distant and diffi- 
cult, than it was at the close of the war of the Kebellion. 

/ aw. now convinced, thai an opposite policy, one that 
vjould ha/ve legalized all the Government money in oircida- 
tion at the dose of the toar, making it convertible into inter- 
est-hearing bonds, and reeonvertihle into cwrenctf at the wiU 
qfliie holder, would ka/ue established Justice between the peo- 



pie and the Government, and loould Aa/tje eau«ed&ur eurrffney 
to e^tprectate to the value of gold long hrfore iht«. It would 
have left the money, the smews of war, the tools of trade, 
in the hands of the people, to enable them to meet the ex- 
penses inctured, aud make the necessary provisions for the 
htmdreds of thoosands of disbanded soldiers, thrown back 
on their homes to find employment or starve. 

In conclusion, I would say, tliat we have every reasoii to 
hope for onr country. But we must not trust in the amount 
of our gold or other riches, but in the principles of our 
ConatitntioD as free people, and in the i^ree development of 
all onr magnificent resources. We must turn again the tide 
of immigration, which is now leaving onr shores. We can 
do this, as in tlie past, by continuing to offer a better re- 
ward for labor, and cheaper land for settlement, by a faith- 
ful administration of our laws in the interests of the peo- 
ple, and not of classes or monopolies, and by trusting in all 
questions of money and currency to tlie integrity and power 
of our Government, and not placing ourselves at the mercy 
of foreign capitalists nor submitting tamely to that war of 
commerce, whidi every nation is willing to make upon us, if 
we do not take eSeotuaJ means for onr own self-preserva- 


Petbb Coopeh's "New Dbpabtcbe." 
To the Editors of the Evening Post : 

In some of your late issues I find an article by " 8. S. P.," 
entitled "Peter Cooper's Kew Departare," and an article 
with a similar title by my old and valued friend, John B. 
Jarvis. These communications allude to the fact, that seven- 
teen years ago I held it to be unsafe for the public welfare, 
as I now do, to allow banks to incnr liabilities, payable in 
specie on demand, by issues of paper and loans many times 
the amount of the specie they held in their vaults, or could 
obtain from any source, for the immediate payment of their 



notes in gold on dem&nd. This demand waa made with all 
the accompanying disasters of widespread rain and inter- 
mption of credit and indnstiy in times called " panics." The 
effect of the panic of 1857, and the canses are very clearly 
detailed in Mr. Caldwell's work on " Ways and Means of 
Payment," p. 485. 

Gold is a commodity and a prodnct of indnstiy. Its valne 
is determined, like that of any other commodity, hy supply 
and demand. Why not let those, who need it, pay the 
price I Why should the necefisaiy facilities of the home 
trade he contracted whenever there is a demand for gold 
for export ? This it is that snbjects the whole country, from 
time to time, to a fall or derangement in prices, and an in- 
terraption to business. Even with onr present irredeemable 
l^al tenders, all must see that, when gold varies five per 
cent, in a few days, neither the value of these legal tenders, 
as measured by other property, nor the rest of the property 
of the country, is perceptibly affected. My " new depart- 
ure," as my friends term it, is the result of observation and 
experience. I should be sorry to be among those, who learn 
nothing from the past. " Hard money," or what is equiva- 
lent to it, a paper currency at all times redeemable in gold 
and sUver, can no longer be relied on to answer the wants 
of this country. But I am as much opposed to an irredeem- 
able currency and an inflated and irresponsible paper money, 
as I ever was. Our experience as a nation shoald have taught 
ns by this time, by the "panics" of the past and the oft- 
repeated failnres of banks, that these banks are utterly un- 
able to redeem their notes in specie, whenever gold is wanted 
of tbera in any lai^ quantities. It is evident, that there is 
some intrinsic difficulty abont this redemption in specie, be- 
yond the power either of banks or of Government to con- 
trol, I trust, that my friend, John B. Jarvis and " S. S. P." 
will find, on a more careful examination of what I have 
written, that I am aa much opposed to an irresponsible, in- 
flated paper currency as I ever was. I am now opposed to 
the present currency, so far as it is irredeemable ; bat I am 



also Opposed to the policy of withdrawing the cnrrency from 
circnlation, ontil the residue shall be on a par with gold ; be- 
canse that would work great injustice to the debtor class, I 
do not believe in the good policy of selling Cktvemment 
bonds, as a means of resuming specie payments, as it will 
800D be drained from Ds again, leaving our paper as it was 
before, irredeemable in gold ; nor in the purchase of silver 
to take the place of the best small paper currency our country 
has ever possessed. It is a currency, that is now serving the 
conntry without interest, and is giving back to the whole 
people whatever is lost or worn out in the public service. 
But let the currency at all times be exchangeable with in- 
terest bearing bonds, and let the Government not only make 
its money a legal tender, hot receive it for all dues, and we 
shall hear no more either of " inflation " or of " deprecia- 
tion." This is my doctrine "in a nnt-shell." I believe, 
with Jefferson and many of onr wisest statesmen, that our 
General Government is as mnch bound by the Constitution 
to hold the entire control of all that is allowed as a legal 
money measure, in the r^;alation of trade and commerce, 
as they are bound to fix a standard for the pound weight or 
the bushel measure ; that this measure of value should be 
made as unfailing and unalterable as possible; and that the 
caneDcj should always compare well with the most con- 
densed and valuable form of Unman labor, as it is now 
found in gold. Bnt after the most mature reflection, I flnd 
myself compelled to believe, with Benjamin Franklin, " that 
any other well-founded credit is as mnch an equivalent for 
labor as gold and silver." He says, what all now know to 
be true, " that paper money, well founded, has great advan- 
tage over gold and silver, being light and convenient for 
handling in lai^ snms, and not likely to have its volume 
reduced by demand for exportation., "On the whole," he 
Bays, "no method has hitherto been found to establish a 
medium of trade equal, in all its advantages, to bills of credit 
made a general legal tender.*' 
That such a ^licy h practicable is proved by the fact, 



that the French GkiTemment has made and imiintained a 
legal-tender paper circulation throu^ ohe of the fiercest 
, and, to them, the moat disaetrone wars of modem timee ; 
and, having paid a thonsand millions of iDdemnity, their 
paper money is to-day almoet on a par with gold. This is, 
because the Ck>Temment took its own paper for all dnes, in- 
stead of discrediting it, by not taking it, as onrs does. They 
take their paper also for French Government bonds, which 
has resulted in the public debt being mainly dne to their 
own citizens, instead of foreigners, as ours is to-day, thoa 
becoming a perpetual tax on the reaoarces of the conntty. 

iSy efforts to avoid the evils, that have befallen the 
finances of our country, will appear in petitions, sent by 
me to Congress, etc. . . . 

In conclusion, I would say, that ever since paper money 
was issued by any civilized country, it has generally been 
assumed, thatonedollsr in coin would float from three to five 
dollars in paper ; but this has only been trne in times of ex- 
panding credits. As soon ns contraction came from any 
oanee, a panic ensued, for it was found, that a dollar in coin 
was needed for every dollar in paper. Why then keep up this 
vain fiction any longer 1 It can only serve to expand credits 
to an unwarrantable degree, while it permits another class 
to contract credits suddenly, and to a ruinous degree. It 
leads inevitably to panics. Kow, it seems to me there ie a 
plain way out of all these financial difficulties. If cnrreD(7 
is issued only as an equivalent of bonds, then every dollar 
of the currency is at all times sustained, or floated by an 
equal value of the bonds of the Government. An expansion 
of currency can go no further than the actual equivalent, re- 
ceived by the Government for its bonds. A contraction of 
currency can go on no faster, than the conversion of the pa- 
per into bonds. Panics will be impossible, because there 
will always be a means, by which real assets can be at 
once converted into money. It is this want of i-eady con- 
version, that causes panics and ruins, even in well-founded 
bouses, etc. 



I have lived too long to enter now, at this late day of my 
protracted life, into the mere partisan disputes of the day. 
I have no other object or interest, than the welfare of the 
whole people of my eonntry ; and, believing as I do, I should 
hold myself very much to blame, if I withheld my feeble 
testimony in this important crisis of the country, and on a 
qaestioQ involving such momentons conseqnences as a soimd 
cnrrency and a tme financial system. On these we must de- 
pend for the future prosperilj and happiness of the whole 
industrial class, with whom I have ever been in sympathy. 
I confess to a most profound anxiety for a}l those, who, with 
their best efforts, find life a great stm^le for a bare snb- 

These tronbles will be greatly lessened when gold be- 
comes, as it should be, only a gnide in the exchanges of com- 
merce, aa the mariner looks at the North star as his best 
guide over a dangerone ocean. 

pETKH Cooper. 

Addbess of TBS National Inbependent Pabtt to the 
C3oNVEimoH AT Indianapolis, May 17, 1876. 

Oendemsn of ihe Convention : 

"We have met, my friends, to unite in a course of efforts 
to find out, and, if possible, to remove a cause of evil, that 
has shrnnk the value of the real estate of the nation to a con- 
dition, where it cannot be sold, or mortgages obtained on it 
for much more than one-half the amonnt, that the same 
property would have brought three years ago. This dire 
calamity has been brought on onr country by the acts of oar 
Goveniment. The first act took from the national money its 
power to pay interest on bonds and duties on imports. The 
eecond act has contracted the currency of the country, ontil 
it has ahnink the value of property to its present condition 
by destroying public confidence ; and that withont skrinHng 
any of the debts contracted in its ose. 



I do m08t hnmbly Lope, that I will be able to show the 
fatal catiBee, which have been allowed to operate and bring 
this wretchedness and min to the homes of untold thousands 
of men and women throughout our countiy. 

Facts will show, that it was the nnwise acts of onr own 
GoTomment, that have allowed a policy to prevail, more in 
the interest of foreign Grovemments than onr own. 

It was these nnwise acta of legislation, that bronght dis- 
credit on onr national money, as I have said, by introducing 
into the law, which created it that terrible word eaxxpl, which 
took from our l^al money its power to pay interest on bonds, 
and duties on imports. 

The introduction of that little word except into the orig- 
inal law dret^ teair» from the eyes of Thaddens Stephens, 
when he looked down the current of events and saw our 
bonds in the hands of foreigners, who would be receiving a 
gold interest on every hundred dollars of bonds, that cost 
them but fifty or sixty dollars in gold. 

B^U for the introduction of that word Bxe^ into the orig- 
inal law, onr bonds would have been taken at par by our 
own people, and the interest would have been paid at home 
in cnrreacy, instead of being paid to foreigners in gold. 

An additional calamity has been brought on onr country 
by a national policy, that has taken from the people their 
currency. Vie tools of tAeir trades, the very life-blood of the 
trafSc and commerce of onr country. 

Pacta show, that in 1865 there were in the hands of the 
people, as a currency, $58 per head, and thai at a Ume tf 
our greatest TiatUmal prosper^. 

We have now arrived at a time of nneqnalled adversity, 
with a current^ in 1876 of %VI-^ per head, with failures, 
aTnoitniing to tao h-andred miUuma of dollars in a year. 

Among the causes, that now afflict the country, it may be 
well to look at the enormous increase in onr foreign impor- 
tations, which amonnted to 359 millioos in the year 1868, 
increased to 684 millions of dollars in 1873, and were 574 
millions of dollars in 1875. 



I think you will agree with me, when I Bay, that proaper- 
ity can never be restored to our beloved conntiy by a national 
policy, that enforces idleneea and financial distress on so vast 
a ntuuber of the laborers and basiness men of this country. 
Our nation's wealth most forever depend on Uie application 
of knowledge, economy, and well-directed labor to all the 
ofief ol and necessary purposes of life, but also a proper legis- 
lation for the people. 

The American people can never bny anything cheap from 
foreign conntries, that must be bought at ths coat of having 
our outn good raw maiericUs unused, and ow own. labor 

I find myself compelled to believe, that much of the past 
l^;iBlation of our country, in reference to tariff and cur- 
rency, has been adopted under the advice and influence of 
men in the interest of foreign nations, that have a direct 
motive to mislead and deceive us. Our prosperity aa a 
nation will commeuce to return, when the Congress of our 
country shall assume its own inherent sovereign right to fur- 
nish all the inhabitants of the United States a redeemable, 
uniform, nnflnctosting national tsurreni^. 

I do heartily agree with Senator Jones, when he says, that 
" the present is Uie acceptable time to undo the unwitting 
and blundering work of 1873 ; and to render our legislation 
on the subject of money, consistent witli the physical facts 
oonceming the stock and supply of the precious metals 
throughout the world, and conformable to the CoustitutioD 
of our country." 

I sincerely hope, that the concluding advice of Senator 
Jones will make a living and lasting impression, when 
he says, speaking to tlie present Senate, "We cannot, 
we dare not, avoid speedy action on the subject. Not 
only does reason, justice and authority unite in urging us 
to retrace our steps, but the organic law commands us to 
do so ; and the presence of peril enjoins what the law com- 

The Senator states a most important fact, and one which 



all know to be trae, ** that by rDterfering with the standardB 
of the coimtry, Congrefls has led the country away from the 
realms of prosperity, and thrust it beyond the bounds of 
safety." He eaye, truly, " to refuse to replace it upon its 
former vantage-ground would be to incur a responsibility 
and a deserved reproach, greater thao that, which men have 
ever before felt themselves able to bear."* 

It will r^uire all the wisdom, that can be slathered from 
the history and experience of the past, to enable us to work 
out onr salvation from the evils, which ao unwise legislation 
has brought on our country. 

It will be fotmd, that nothing short of a full, &ir and 
frank performance of the first duty, enjoined on Congress 
by the Constitution, will ever restore permanent proeperi^ 
to ua as a nation. 

It is a remarkable fact, that the most essential element of 
our colonial and national prosperity was obtained by the use 
of the legal tender paper money — the very thing, that our 
present rulers seem now determined to ridicule and bring 
into contempt. We are apt to forget, that the continental 
money secured for ua a country, and the greenback cur- 
rency has saved us a nation. 

Sir A. Alison, the able and indefatigable English his- 
torian, has borne testimony to the superior power and value 
of paper money. He says : " When sixteen hundred thou- 
sand men, on both sides, were in the continental wars with 
France in Germany and Spain alone, where nothing could 
be purchased except by specie, it is not surprising, that 
goinesB went, where they were so mnch needed, and bore so 
high a price. ... In truth such was the need of precious 
metals, owing to this cause, that one-tenth of the currency . 
of the world was attracted to Germany as a common centre, 
and the demand could not be supplied ; and by a decree 
in September, 1813, from Peterwalsden, in G^e^nany, the 
allied sovereigns issued paper notes, guaranteed by Kussia, 
FruBsia, and England. These notes passed as cash from 



Kamteehatka to the Bbme, and gave die currency, which 
broagbt the war to a eaccesefol close." 

In a recent edition of the " History of Enrope," Sir A. 
Alison givea an additional evidence of the important ad- 
Tantagee, which experience has demonstrated to result from 
the use of paper cnrrency. 

He says: " To the snspeneion of cash payments by the 'act 
of 1797, and the power in conseqaence, vested in the Bank 
oC England, of expanding its paper circulation in proportion 
to the abstraction of a metallic currency, the wants of the 
ooontry and the resting of the national industry on a basis, 
not liable to he taken away by the matations of commerce 
or the necessities of war — it is to these facts, that the salva- 
tioQ of the empire must be ascribed. ... It is remark- 
able, that this admirable system, which may be truly called 
the working power of nations during war, because at the 
close of the war the object of the most determined hostility 
on the part of the great capitalists uid chief writers of Polit- 
ical Economy in the country. ..." Here, however," says 
Alison, " as everywhere else, experience, the great test of 
the truth, has determined the question. The adoption of 
the opposite system of contracting the paper currency, in 
proportion to the abstraction of the metallic currency by the 
acts of 1819 and 1844, followed, as they were, by the mone- 
tary crises of 1825, 18S9 and 1847, have demonstrated be- 
yond a doubt, that it was in the system of an expansive 
corrency, that Qreat Britain, during the war, found the sole 
means of her salvation. From 1797 to 1815 commerce, 
manufactures and ^ricnlture advanced in England, in spite 
of all the evils of war, with a rapidity greater, than they 
had previously done in centuries before. This proves be- 
yond a doubt the power of paper money to increase the 
wealth of a nation.'' 

It is worth while to observe, that this same Sir A. Alison, 
who speaks so wisely on this subject in reference to the bia- 
toiy of his own country, while scanning a few years ago the 
prosperity <^ onr country, during the war of the KebeUion 



and immediately after, has a foreboding of what mi^t hap- 
pen, and remarks : "The American Government may make 
tiuancial and legislative mistakes, which may check the pro- 
gi'CEs of the nation and connteract the advantages, which 
paper money has already bestowed upon them ; they may 
adopt the unwise and unjust system, which England adopted 
at the close of the French war ; they may resolve to pay in 
gold, and with low prices, the debt contracted with paper 
and with high prices. But whatever they may do," he adds, 
'* nothing can shake the evidence, which the experience of 
that nation during the last six years affords of the power of 
paper money to promote a nation's welfare." 

Sir Walter Scott, in his " Malachi Margrowther's Letters," 
shows how the wealth of a nation is increased by paper 
money. " I assume," he eays, " without hazard of contra- 
diction, that hanks have existed in Scotland for nearly one 
hnndred and twenty years ; that they have flourished, and 
the country has flouriBhed with them ; and that during the 
last twenty years pai'ticnlarly the notes, and especially the 
small notes, which the banks distribute, supply all the de- 
maud for a medium of currency. This system has so com- 
pletely expelled gold from Scotland, that you never by any 
chance espy s guinea there, except in tlie purse of an acci- 
dental stranger, or in the coffers of. the banks themselves. 
But the facilities, which this paper has afforded to the in- 
dnetrions and enterprising agriculturists and manufacturers, 
as well as to the trustees of the public, in executing national 
works, have converted Scotland from a poor, miserable, 
barren country into one where, if nature has done less, art 
and industry have done more than, perhaps, in any other 
country in Earope, England not excepted." 

President Grant, in his message of 1878, said: "The ex- 
perience of the present panic has proven, that the currency 
of the country, based, as it is, upon its credit, is the best 
that has ever been devised. ... In view of the great 
actual contraction, that has taken place in the currenoy, and 
the comparative contraction continnooely going on, due to 



the incieaBe of the population, the iacrease of mannf actories 
and of all iudnBtides, I do not believe there is too mach of 
it now for the dollest period of the year." 

Notwithstanding these recommendations of the President, 
Congrees has continued to tax the people and contract the 
national emrency in a vain effort to arrive at specie pay- 

Oar Government should have left that amount of cur- 
rency in the hands of the people, which the necessities of 
war had compelled it to put in circulation, as the only means 
of the national salvation. 

Every dollar of current^, paid out, whether gold, silver, 
or paper, was gives out for value received, and thus be- 
came, by the act of the Government, a valid claim for a 
dollar's worth of the whole property of the country. Hence 
not a dollar of it should ever have been withdrawn. 

It is now almost universally believed, that had the Treas- 
ury notes continued, as at first issued, to be received for all 
forms of taxes, duties and debts, they would have circulated 
to this day, as they did then, as so much gold, precisely as 
the Government paper did circulate in France, when put 
upon the same footing. 

This woald have saved our country more, than one-half 
of the amount of the whole expenses of the war in the pres- 
ent shrinkage of values, and the interruption to honest in- 
dnstiy. It woold have saved us also £-om the perpetual 
drainage of gold to pay interest on our foreign uidebtedness. 

Gentlemen of the Convention, I have heretofore enlai^d 
upon what seemed to me the true financial policy of this 
country in pamphlets and writings, that I have had the 
honor to lay before the country, so that it would be a vain 
repetition to go much into that subject now. 

The paper currency, commonly called legal tenders w 
greenbacks, was actually paid out for value received as so 
much gold, when gold could not be obtained. 

This being an incontrovertible fact, it follows, that every 
Treasury note, demand note, or legal tender, given out as 



money, in payment for any form of labor and property, re- 
ceived by the Govenunent, became, in the poBseesion of its 
owners, real dollars, that conld not be taken constitntionally 
:^m the peopl^ except by nuiform taxes, as on other 

But whetiier onr oorreni^ will be dways on a par with 
gold or not, I have shown from hietoty, and incoDtTovertible 
facte prove it, that the commereial and indnstrial prosperity 
of a country do not depend upon the amoont of gold and 
silver there is in circolation. Our prosperity must continn- 
ally depend apon the industry, the enterprise, the busy in- 
ternal trade and a true independence of foreign nations, 
which a paper circnlation, well based on sound credit, has 
always been found to promote. 

Bat I believe prosperity can never again bless onr glori- 
ous conntry, until justice is established, by giving back to 
the people the exact amount of currency, found in circula- 
tion at the close of the war. That was tlie price of the 
nation's life. It ought to be restored and made the perma- 
nent and Ttnflnctnating measure of all values, through all 
coming time — never to be increased or diminished, only, 
as jMT ca^pUa, vrith the increase of the inhabitants of our 

This currency mfist be made receivable for all forms of 
taxes, duties and debts, and convertible into interest-bear- 
ing bonds, at some equitable rate of interest, and reconver* 
tible into the currency at the will of the holder. This, we 
believe, will secure uniformity of value to a degree, that 
gold has never attained. President Steely of Lawrence 
University, has well said on this snt^ect : 

"In fixing a standard, it is essential to select something, 
that is as nearly as possible invariable.- The conventidhal 
miit of lineal measure must not be a line, which averages a 
foot, though it may be fourteen inches to-day and nine 
inches to-morrow. The bushel measure should not contain 
two or three quarts more or less at one time than at another. 
For the same reason it is desirable, that the unit of valva 



slionld hare the same purch&Bing power next week, that it 
lias now." 

In conclusion, Gentlemen, I think we h&ve reason to con- 
gratulate ourselves on the great awakening of the pablic 
mind in regard to this question of finance. The people are 
beginning to recognize their rights and their duties in this 
matter. I think the time has come to exhort ever; one to go 
to the ballot-box and select good and true men, who will legis- 
* late in accordance with justice, the Constitntion and the 
true interests of the people ; and give us what will always 
stand as a monumeat of political wiedom, a true national 

With devout wishes for the suoceea of all measnros, tending 
to this object, I remain yours, in the common interests of 
our beloved country, 

Fbteb Ooopbk. 

The PijiTFOEM OP the Ln>EPKNDEirr Pabtt. 

The following is the platform of the Independent Party, 
as adopted by its National Convention at Indianapolis : 

" The Independent Party is called into existence by the 
necessities of the people, whose industries are prostrated, 
whose labor is deprived of its just reward, as the result of 
the serious mismanagement of the national finances, which 
errors both the Republican and Democratic parties neglect 
to correct In view of the failure of these parties to fnmieh 
relief to the depressed industries of the country, thereby 
disappointing the juet hopes and expectations of a Buffering 
people, we declare our principles and invite all independent 
and patriotic men to join our ranks in this movement for 
finfmcial reform and industrial emancipation. 

First — We demand the immediate and unconditional re- 
peal of the Specie -resumption Act of January 14, 1875, and 
the rescue of our industries from the disaster and rtiin, re- 
sulting from its enforcement ; and we call upon all patriotic 
men to organize in every Congressional district of the country, 



with the view of electing representatives to CongreBS, who 
will l^pslste for, and a Chief MagiBtrate, who will c&ry oat 
the wishes of the people in this regard, and thus stop the 
present suicidal and destmctive policy of contraction. 

Second — We believe, that United States notes, issned 
directly hj the Government and convertible on demand into 
United States obl%atioU8, bearing an eqnitable rate of inte- 
rest (not exceeding one cent a day on each one handred 
dollars), and interchangeable with United States notes at 
par, will afford the best circulating medium ever devised ; 
snch United States notes should be a full legal tender for 
all purposes, except for the payment of such obligations as 
are by existing contracts expressly made payable in coin. 
And we hold, that it is the duty of the Government to provide 
such a circulating medium, and we insist, in the language of 
Thomas Jefferson " that bank paper must be suppressed and 
the circulation restored to the nation, to whom it belongs." 

Third — It is the paramount duty of the Government in 
all its legislation to keep in view the full development of all 
legitimate business, agricultural, mining, manufacturing and 

Fourth — We most earnestly protest against any further 
issue of gold bonds, for sale in foreign markets, by means 
of which we would be made, for a longer period, hewers of 
wood and drawers of water for foreign nations, especially as 
the American people would gladly and promtly take at par 
all the bonds the Government may need to sell, provided 
they are made payable at the option of the holder, although 
bearing interest at three and sixty-five one-hundredths per 
cent, per annum, or even a lower rate. 

Fifth — We further protest against the sale of Government 
bonds for the piirpose of buying silver to be used as a 
substitute for onr more convenient and less fluctuating frac- 
tional currency, which, although well calculated to enrich 
the owners of silver mines, yet in operation will still further 
oppress throogh taxation an already overburdened people." 


conr Am> fafeb ctjbbenot. 61 


New Tore, Hkj SI, 1976. 

Mm. Moses W. Fmu), Chairman, and Hon. Thouab J. 
Dtr&Airr, Seeretaay &f the National Sieeovtioe Council cf 
ike Ind^mtdent, Party : 

Gemtleken — Tonr fonnal, ofScial notification of the 
nnanimoTiB nominatioa, tendered by tlie National Conveo- 
tioD of the Independent Party at IndianapoIiB, on the 17th 
instant, to me for the high office of President of the United 
States is before me ; . . . tc^;ether with an anthen* 
tieated copy of the 'admirable platform, -which the CJonven- 
tioQ adopted. 

"While I most heartily thank the Conrention tbrongh yon 
for the great honor they have thns conferred npon me, 
kindly permit me to say, that there is a bare possibility, if 
wise counsel prevails, ^at the sorely needed relief from the 
blighting effects of past onwise legislation, relative to 
finance, which the people so earnestly seek, may yet be had 
throngh either the Kepnblican or Democratic party ; both 
of them meeting in national convention at an early date. 

It is nnneceseary for me to asenre yon that, while I have 
DO aspiration for the position of C3iief Magistate of this 
great Bepoblic, I will most cheerfully do what I can to for* 
ward the best interests of my conntry. 

I, therefore, accept your nomination, conditionally, ex- 
pressing the earnest hope, that the Independent Party may 
yet attain its exalted aims, while permitting me to step asit^ 
and remain in that quiet, which is most congenial to my na- 
ture and time of life. 

Most respectfully yours. 

Fetes Cooper. 

(^Jwji the New York Mercantile Journal.) 

" The New York Herald has just sent one of its corps to 

Peter Cooper, who thns was led to give a casual review of 



the present finsDcial and political situation. It is needless 
for ns to 6&J, that anything, dictated bj Mr. Cooper's clear 
head and honest heart, is eminently worthy of attention " ; 

" With a split at St. Lonis," said oar venerahle fellow-citi- 
zen, Mr. Peter Cooper — "with a split at St. Louis and the elec- 
tion of President, thrown into the House of Eepresentativee, I 
regard my possible selection as President of tlie United States 
with positive alarm. And yet, continued the aged patriot, 
as a mild sephyr from the southwest wind gently lifted his 
locks and bmahed them ont upon his elioulder — and yet I 
am ready for the sacrifice. It's hard to give np the comforts 
and conveniences of a home in exchange for tlie push and 
tnssle of a life in Washington ; but I will respond to the call 
of my country. For her sake I am ready to give up life it- 
self. So probable is tlie success of tlie ' soft money ticket * 
that I am most anxions, if I can retire vith honor, to have 
Governor William Allen, of Ohio, in my place. The peo- 
ple don't know that man enough. In the early days, when 
these principles were bat little understood, Bill Allen was 
firm and uncompromising. He was able, bold, clear, defiant, 
enlightened, far-seeing and thoroughly well-informed on this 
great subject of finance — so little comprehended, even now, 
by many, who write and talk with most pretense. The 
Herald of this morning gives the world a good idea of Grov- 
emor Allen, It could not be improved on. At dinner to- 
day Judge Proctor Knott, of the House of Eepresentativee, 
told mo, that he knew Governor Allen well, and that he is 
one of the ablest and purest of men. All accounts agree in 
representing him as a singnlarly able man, of keen foresight, 
sound judgment, and practical sense. Allen is a man of tre- 
mendous nerve. He is firmness personified, and, if he were 
President, the people would understand, that they had a man 
at the helm with a will of his own, and a conscience behind 
Bepobteb — " Ton appear confident of a split at St. Louis." 
Mr. Cooper — Yes, sir, I do. We can hope for nothing from 
the Eepublicans. They are joined to their idols. Hard- 



money is their god, and an absurd divinity it ia to be anre. 
I wonder, if they ever read Ben Franldin. Sen was a great 
man in his way. And how admirably he put this very mat- 
ter years and years ago. He said : — " Grold and silver are 
not intrinsically of equal value with iron. Their value rests 
chiefly in the estimation they happen to be in among the 
generality of natious. Any other well founded credit ia as 
mnch an equivalent as gold or silver. Paper money, well 
founded, has great advantages over gold and silver, being 
light and convenient for handling large sums, and not likely 
to have its volume reduced by demands for exportation. On 
the whole, no method has hitherto been formed to establish 
a medium of trade equal in all its advantages to bills of 
credit made a general legal tender." Of course, the Itepub- 
licana see no wisdom in this. They have found a convenient 
war-cry, and will doubtless bold to it. So I place them entirely 
one side. They will nominate their candidate distinctively 
as a hard-money man. For him the hard-money Republic- 
ans will vote, of course. If there shall be at the same time 
an objectionable soft-money man in the field, for whom 
would the soft-money Bepablicans be most likely to vote 
in this crisis! And this is a crisis. It is a crisis, which 
may well make a patriot tremble. We are drifting to bank- 
ruptcy, thence to starvation, and thence to revolution, 

etc Mr. Tildon came into line in time to join 

the hurrah and get his reward The three 

tickets will go before the people. There'll be no choice. 
And then I see, with dread and apprehension, that, as Gen- 
eral Butler said in the HeraXd on Saturday, tho soft-money 
ticket will sweep the House. Governor Allen must be on 
that ticket, and yet, if Heaven wills it so, I am ready to be 

R. — " Not mnch of a sacrifice either, is it % Peter Cooper 
President and $60,000 a year isn't a very awful fate." 

Mr. C. — Well, Mr. Allen is some years younger than I am. 
As for the |50,000, 1 shouldn't touch the money. I should 
give it away, or tnm it over to the Cooper Union, perhaps. 



R. — " Are the strikers after yon much ! " 

Mr. C. — Tolerably, or ratlier intolerably. I get letters 
and applications from everywliore and ererjbodj. A great 
many newspapers want help in carrying on the great prin- 
ciples of soft-money doctrinea. They are mainly from the 
West, but some are nearer home. The Herald is always 
very eonrteous in printing facts and news abont ns and oar 
progreBB. I don't intend to send these applicants any money, 
bnt I send all of them my pamphlets and onr docnments for 
their comfort and inatraction. I get letters from all sections 
of the country, giving information abont organizations, and 
before long demonstrations will be made. The labor miiona 
are taking an active interest in the matter. The Bricklay- 
ers' Union are heart and soul in the movement. They tell 
me they see the folly of strikes, and hope to be able to carry 
their points hereafter without recourse to that absurdity. 
The laboring men of the country seem to have confidence 
in me as one of themselves, and that may make it difficult 
and inexpedient to substitute Governor Allen for me, bat I 
fervently hope and pray to effect that end, etc . . . 

" WABHnroTOK, FabnUTj 21, 1874. 
Mt Deab 8m — ^Accept my thanks for your long and in- 
structive letter about finance. I have read it carefully and 
hope to profit by your su^estions. 

With high respect, 

Your obt. SerH. 


Petes Coofeb, 

New York. 

Addbbss at Miraio Hall, New Haven, Cohh., March 31, 


(.^wn Qa Nine Bdven Union.) 

" The spacious edifice was crowded in every part ; the aisles 
and lobbies, being packed and evei^ seat taken, before the 



meeting waa called to order. HondredB were turned awaj 
noable to get even a glim|»e of the platform, or within 
hearing of the speakers, etc., . . . magnificent was the 
Bight, when that grand old man, Feter Cooper, rose to offer 
words of advice to the mighty throng I The andieuce treated 
the great American philanthn^ist to a perfect ovation, and 
every heart' seemed to bwoII with pride and emotion when 
the workingman's benefactor stood before them in animated 
form. It &]]6 to the lot of few men to have snch homage 
paid them, while in th^ flesh ; bnt the Father of the Universe 
is just, and Feter Cooper in hoary old age receives, as he de- 
serves, Hie greatest tributes, that can bo offered by a grate- 
ful people to one of their fellows, whose whole life has been 
devoted to humanity and the elevation of the poor and 

"We know — we feel in our very soul — that the truthful 
words of advice, offered by the world's greatest philanthro- 
pist, were not in vain. Mr. Cooper is beyond the villification 
of political manipulators and subsidized editors. No man 
can be found so base as to chaige, that he, in his eighty- 
seventh year, would journey seventy-five miles for the por- 
pose of aiding a frandnlent or an unrighteous cause. The 
inatincts of tlie honest old veteran teach him, that this coun- 
try is being led on to destruction under the guidance of the 
money power, and, though at painful sacrifice, he feels it 
his doty to warn the people of their danger. Peter Cooper 
is no illusionist. He does not desire repudiation or infla- 
tion. He is the personification of Honesty and Truth, and 
all the wealth in the world woidd not induce him to espouse 
a dishonest cause, etc, .... 

A part of the words of solid truth, given by Mr. Cooper on 
this occasion, were as follows : 

The worth or exchangeable value of gold is as' uncer- 
tain ae other products of human labor, such as wheat or cot- 
ton. Hie exchangeable value of anything depends on its 
oonver^biliif/ into something else, that has value ai the option 
^ike wtdmiducU. This rule applies to paper money as to 



anything else. But how shall Government give an exchange- 
able value to a paper currency t Can it be done by a stand- 
ard, which is beyond its control and which natnrally fluctu- 
ates, while the sign of exchange, indicated by the paper, re- 
mains the same t 

This is the nnsoDod theory which poeseMCs the minds 
of onr people and of our politicians. 

We mast cat loose from this nnreasonahle theory, or we 
shall be snbject, for all time, to these periodic distnrbances 
of our cmrency, which bring such wii^e-spread min and dis- 
tress to onr commercial industries, and work, on the part of 
the Government, poaiiive and crud mjtt^ce. The remedy 
seems to me to be vei7 plain. 

FiesT.— We most pat this whole power of coining money 
or issning currency, " where," as Thomas Jefferson says, "by 
the Conetitntion, it properly belongs" — entirely in the bands 
of our Government That Government ia a flepnblic ; hence 
it is under the control of the people. Corporations and 
States have hitherto, in some form or other, divided this 
power with the Government Hence come the embarrass- 
ments and the fluctuations, as may be easily shown. 

But now we must trust our Government with this whale 
fwuiian of providing the standards and measures of ex- 
change, as we trust it witli the weights and measures of 
trade. 80 far from putting the people in the power of our 
Grovemment and at tiie caprice of parties in power, I con< 
tend it will bring the Government more under control of 
the people and give a check to mere parl^ rule. For the 
more stake the people have in the wisdom and honesty of 
the Government, the more watchful and firm they will he 
in its control 

Secondly. — We must require the Government to make 
this currency, at all times, and, at the option of the individ- 
ual, convertible. But the currency must be convertible into 
something, over which the Government has entire control, 
and to which it can give a definite as well as a permanent 
value. Xhia is its own itUereei-beafing bonde. These are, 



!a fact, a mortgage apon the embodied wealUi of the whole 
coontr;. The reality of their value is as Bound and as per- 
manent 88 the Government iteelf, and die d^^ree of their 
valae can be determined exactlj by the rate of interest the 
Government may think proper to fix. 

If I should speak to you for hours on thia Bobject, I conld 
only enlarge npon the advantages of sach a system. Let 
the Xation&l Government issue paper money, whose volume 
shall be regulated — in exact accordance with the needs of 
Commerce — by its interchangeability, at holder's option, 
with Government bonda, beaiing an equitable rate of inter- 
est. Let tlie Government disburse this money oniy in pay- 
ment of ite indebtedness, and make it receivable for taxes 
and imposts of eveiy kind. Depend upon it, under this sys- 
tem, your taxes would be greatly reduced, business would 
revive and hereafter remain free from exposure to disaetroos 

OpEH LeTTEB to the CaMDIDATES foe the PKESniENCT, 

New Tokk, J'qI^ 25, 1878. 
HoTk. R, B, Sayea and Son. Sa/muel J. Tilden. 

Gkmtlexeh — I find myself impelled by an irresistible 
anxiety for my country ; by the palpable facts of distress 
and suffering, that surround me, and which, I am compelled 
to know, pervade the families of the great mass of our peo- 
ple ; by the earnest calls, that have been made to me from 
all parts of this great country ; and especially, by the solemn 
and deliberate act of an earnest and intelligent body of my 
fellow-citizens, in convention assembled, who, setting forth 
clearly their convictions as to the real cause of this wide- 
^read distress among the masses of our conntryman, have 
called npon me to represent those convictions, and nomi- 
nated me as their- chief executive to carry them out; — by 
all these coodderatious I feel called npon to address a few 



words to yon, who now hold the nominatioDB of the two 
great organized political partieB in this cotmtiy for the high- 
est position of reaponaibilitj as to the future happiness and 
prosperity of this great people. 

Far be it from me to attribute any want of patriotism, or 
any unworthy motive to your honorable selres, or to the 
leaders of those Conventions, which have nominated yon 
both, respectively, to the high office of the President of the 
United States. But the imminent question of the day, that 
which touches the cause of the present financial ruin and 
mfFering of bo many, is one of such palpable facts and simple 
deductions therefrom, that I must think there is some mis- 
take in the radical principle, by which these facts are viewed 
by you and the great parties, which you represent. I find 
in the platforms of the conventions of the two great parties 
no adequate expression, either of the facts, the causes, or 
the principles, that underlie the present great distress of our 
nation, when thousands of honest, industrious people are 
filled with anxiety for the bread of their families, or are 
suffering already from an inadequate supply. This seems 
to me the great and paramount question of the day, to which 
our chief thought and most efficient action should be di- 
rect^, and before which all other questions should sink into 

What is the cause of this wide-spread ruin and present 
distroBB 1 and what is the immediate remedy ? 

A few facts of history and of public record will show 
this. According to Spaulding's " Financial History of the 
War," (p. 201) the public debt of the United States stood on 
the books of the Treasury, October 1, 1865, at a total of $2,- 
808,549,437. According to the same author, who is a strong 
advocate for specie payments; (page 10, Introduction) out' 
of this debt in 1864, the inflating paper isenes, outstand- 
ing, were over 1 1,100,000,000— and gold reached its high- 
est quotation, 285. 

Wow, be it remembered that, although a few money- 
changers, speculators and importers were willing to give 



$2.85 of paper for one dollar in gold, yet the people were 
Qsing this paper to buy flour and exchange their commodi- 
ties at prices, that were far less than tbia inflated price «f 

Gold was no longer the standard of exchange, except in 
foreign commodities, where balances had to be paid in gold. 
The internal trade, commerce and indnstriee of the conotry 
"were steadily increasing, and never before bo flooriehing as 
during the time of this famine for gold. In an evil hom-, 
it became the policy of this Gktremment to rednce all our 
paper currency to the standard and par value of gold. This 
was attempted by the withdrawal of the paper currencrf as 
fast as practicable, and by absorbing the same, by an arbi- 
trary law, into a debt for so much gold as the face of the 
paper, in the shape of gold bonds, bearing the yearly inter- 
est of 6 per cent, in gold I In the course of lees than eight 
years this change was effected, and the people's money and 
currency of all kinds were reduced subsequently from $2,- 
192,395,527, as represented on the Treasurer's books on 
September 1, 1865, to the sum of $631,488,676 on the 1st oi 
November, 1873, making a reduction of the currency in eight 
years o£ $1,561,906,851 1 (See Gmgreenonal Hecordy March 
31, 1874, speech of John M. Bright of Tennessee.) This 
brought on the panic of 1873 and aU our present financial 
troubles. Although a part of this vast sum was a kind of 
currency, that drew interest, and, therefore, partook also of 
the nature of an iaveetment, yet, ae Mr. Maynard, Chair- 
man of the Committee of Banking and Currency, said from 
his seat in Congress on the occasion of Mr. Bright's speech, 
" those issues were mgraved and prepared in a form to cir- 
culate as money, and, as a matter of fact, did so circulate, 
until either they were funded or the interest accumulated 
so as to make them superior to the ordinary cla6s of cur- 
rency." But this stupendous decrease in the people's money 
— ^the very tools of their trades and enterprises of every de- 
scription, the use of which they had fairly earned by the 
blood and sacrifices of a great war, and the beneficial effects 



of which were proved b; the great activity in bnsinefii and, which it engendered h long as it lasted — this great 
redaction in the money of the people was made by methods 
equally unjust, as they were dieastroufi to the proeperity of 
the country. 

This paper cnrrency was absorbed by interest-bearing gold 
bonds, which were bought by the paper, which in its turn 
bad been pnrehaaed by gold at 40, 50 and 60 per cent, 
discount ; ^U8 taming the debt of the oountty to one of 
twice its value in paper, and paying for the gold bonds 
at half their valae in paper. This was done at a time, 
when this paper currency was doing the nation all the good, 
. that HO much gold could do for onr domestic prosperity and 
trade. The people were building np the country with a 
rapidity unexampled before, with this paper, which, if it 
had been fully honored by the Government, that issued 
it, and received for all imports, duties and debts, and 
allowed to be exchanged at par for bonds at an equitable 
rate of interest, would not have permitted any premium on - 

These are the facta. The panic of 1873 and all the conse- 
quent distress of the industrial claaeea of our conntry, and 
its baffled enterprise, are distinctly due to the contraction of 
the currency to this enormous extent daring the eight years 
preceding 1873. It stopped credit, production and con- 
sumption, and made much of what cnrrency was left, rash 
in a panic to the head money-centres — as the blood in an 
apoplectic fit rushes to the head — where this money is now 
vainly seeking investment in first-daea security at two per 
cent. ; while the country at large is palsied in its enterprises 
and indnstries for want of this very currency. And what 
was all this done for t To change the debt of the conntiy 
without redncing its real amount from a shape beneficial to 
the people, and incorporated as an int^ral part of the very 
life-blood of all their rising industries and their growing 
trade — this paper currency was turned, almost with the sud- 
denness of a conjuration, and by the forms of an arbitrary 



oonstrnction of law, into aDother shape, tvice in amount &s 
measnred by the same paper, and taxing the people with 
interest on it in gold, to the amoont of $94,684,269 per 
year, (see statement of the public debt, June, 1876-) 

Most of this interest is now paid to foreign bondholders, 
alien to our institutions and uninterested in onr prosperity, 
except to keep up our ability and willingness to bear taxation. 

And what is the specious reason for this change ( "To 
re^m to specie paymenis / " 

What can this policy result in but a further distress and 
imporerishment of this people, and the building up of the 
interests of a class, whoso business it is to invest or to lend 
money, and whose policy will be to get the highest rate of 
interest I We may concede all, that is claimed of the neces- 
si^ of specie payments, and onr currency being made on a 
par with gold. But this disastrous and ill-jndgod method of 
Teaching specie payments, by the past and present contrac- 
tion of onr currency, is very unjust and cmel to our people ; 
for it shrunk the value of all property, so that it could not 
he sold, or mortgages obtained on it for more than one-half 
the. amount the same property would hare brou^t three 
years previous, and reduced the wages of labor to the same 
d^ree. This return to specie payments may be made with- 
ont such injury, by honoring the currency in every way ; by 
making it exclusively the money as well aa the legal tender 
of the country ; by receiving it for all forms of taxes, duties, 
debts to Govermnent, as well as the payment of all private 
debts ; by establishing its value on a firm basis, at a fixed and 
equitable rate of interest, which it may always find in an 
interconvertible bond ; and by determining the volume of 
the currency, where the unobstructed laws of the internal 
trade and industry of this country may require it to be, 
under the free use of the interconvertible bond. This great 
national debt ought to he held as a great trust by the Govern- 
ment of this people, and made the receptacle of all the trust 
funds, and the savings of all the poor among our own people. 
It should be an investment put within the reach of our own 



people, instead of being sent al>road to swell the coffers of 
the rich in other countries. 

If the Government, after the war of Rebellion, had been 
as anxions to heal the wounds, which that tmhappj war 
created, to ^leviate the poverty, which it brought on a large 
section of our cOnntry, to reinstate the broken indnetries 
and enterprises of oar whole people, as it had been to carry 
that war vigorously, at any cost, on to victory, the Gtovem- 
ment would have seen, that peace had its demands as well 
as war. If a Government is bound to protect the people 
from the a^reseiooB of war, it is also bound to save it from 
commercial distress and the sorrows of a laboring population 
without work. The Govemmout might now free hundreds 
of thousands from imminent want, and set the wheels of 
trade again in motion by building the two great railroads 
across tlie continent at the southwest and northwest of the 
country, that private enterprise has already commenced, but 
cannot complete, for want of capital. The legal tender of 
a solvent country like this cannot be called a debt in any 
proper sense of the word. Jt is money and measures the 
eschangeble value of all property, gold included. All niust 
see that the currency, paid out by the Government for value 
received, became the people's money, over which the Govern- 
ment lost aU control, except to tax it as all other property 
to meet the wants of Government. This amount of money 
even now may be given back to the people in works of great 
national importance, like that of a Nortliem and SonUiem 
Pacific Railroad, that would to-day be worth their cost, in 
aiding to put down the Indian wars, that now threaten the 
frontier of onr country. What is a Government good for, 
if in such a country as this, with all its material resources 
and vast extent, it cannot prevent a large part of its people 
from the distress of want <>f work and bread i This seems 
to me the first duty of Government- 
Sorry am I to see, and I say it without any reproach cast 
upon the integrity of those concerned, that in neither of the 
platforms of the political parties, that represent the go- 



Terning intelligence and wealth of this coontrj, is this great 
^aeatioa of &iaace either discueeed or recognized in its prin- 
ciples, or bearings upon the happiness and prosperit; of this 
people — except in a way, that seeiua to me adverse to both. 

I have, therefore, consented with great reluctance to go 
before the people — not for the strife of ofBce, not for tiie 
petty triumphs of a Bucceesfol candidate, bat for the vindi- 
cation of a great principle, that underlies all true Bepublican 
or Democratic Institutions — namely, that the interest and 
happiness of tlie whole people are superior to the demands 
OT interests of any one class ; that in the neglect or defiance 
of this principle, the great debt of this people, incurred by 
a war to save the life of this nation, has been adaiin|stered 
too much by the advice, and in the interest of a small class, 
that care for their income, but cannot look out for, or attend 
to active investments ; hence, they prefer the bond to the 
currency; and for another class, who desire the highest 
interest for the smallest investment ; hence they prefer gold 
to a paper legal tender; and for still another class, who 
alien to onr institntione and eonutry, care only to tax its 
energies and wealth for the highest interest they can draw 
for an immediate investment of their money. But these are 
not the interests of the people of this country. Keitber 
honor nor justice requires Buch administration of the public 
debt of this country. 

I feel, therefore, constrained by every principle of honor 
and love for my country, to come forward at an advanced 
^i;e, and with a mind, tliat would gladly seek repose, after 
the toils of a long and laborious life, to answer the call of a 
portion bf my countrymen, to try these issnea before the 
people of tlie whole country ; to test these tmthe, which we 
hold to be self-evident, as soon as they are honestly examined, 
as are the tmths of the Declaration of Independence. One 
of the chief of these truths is that, as all rightful Gcovem- 
menta are made for the people and by the people, they must 
be administered with a parental care in the interests of the 
whole people, and not for a claea. No single interest 


74 conr and papee cubbbhct. 

toncbee the domestie comfort and proBperity of the people 
as this one of the cvrteacj ; and in the present condition of 
the coantiy, none is of so much immediate importance, or 
calls for more immediate solution. To put off this question, 
therefore, vrith vague expressions of refonn, and the de- 
sirableness of specie payments, is to ignore the ruling inter- 
est of the hour. It is to earrender the people to their euf- 
fcoings withoQt any promise of remedy. 

I appeal, therefore, from those, who seem ineenaible to 
the cry of the people, to the people themeelTes. I appeal 
from the political parties, organized to control the Got«^- 
ment and distribute the offices and emoluments of office, to 
the great industrial classes, who oi^anized to protect their 
interests and obtain some recognition of their rights from 
the Government of the country. Let them enbetitnte 
cooperation for strikes, and unite to save them selves and the 
country from the present disaster and distresa to all the in- 
dusbial classes. Zet no mem think of the hiUet, while he 
haa the ballot m his hand. It needs but the use of that 
simple instrument of political power to rectify all our dis- 
contents and social evils. 

Let us have our national currency duly honored ; let US 
take the testimony of the nation's experience, and that of 
other countries, as to what auch a currency can do for onr 
prosperity ; let the gold par be reached by rendering onr 
currency of higher and indispensable uses, as now exempli- 
fied in France, and not by contracting its amount ; and let 
its volnme and its value be determincKl by the int&iwmier- 
^He bond, placed at the dispoBal of tlie wants of the people, 
and governed by all the forms and sanctities of law ; and 
not turrender the currency to the ever-changing basi^ of a 
commodity like gold — then we shall have peace on this ques- 
tion. JuBtice will be established, and the general welfare 
promoted ; prQq>erity, ^ain, will revisit us, and we shall 
vindicate the wisdom and superiority of onr free institntions 
before the world. 

France, with her 600,000,000 of l^al paper, has kept 



her industries pfofitsbly emplojed by keeping her paper re- 
ceivable for all forms of taaea, duUea and dettt, etc . . . 

The time has come, when the chums of a common hnman* 
ity and all that can move the manhood of an American citi- 
zen must nnite in a demand for an act of common jnstice, 
now dne to the American people, who have saved onr conn- 
try from ruin, and willj I troat, forever protect it. The 
Constitntion has made it the first and most important dntj 
of Congress " to establish Justice, mmare dome^ie tranguiU- 
ii^, provide for the common d^ense, jmtmote th4 genertd 
wdfc^v and teeure the hleagmffe <^ lab^iy to owvelvee and 
our posterify" 

To my present friends I need not say, that this sacrifice of 
peace and rest is like the surrender of what remnant of life 
I may have. Bat to the country at la^;e I will say, that I 
am willing to stand in the place, where I have been put by 
the judgment of an intelligent and honest portion of my 
countrymen, to stand with them and try before the whole 
people this cause of tbe people's money, and the true finan- 
cial policy of this Government. 

Most respectfully yonrs, 

Fbteb Coofeb. 

Lettsb on Finakcb. 

NSW TOBK, Angort SI, 1870. 
Sim. Moses W. fidd, Chairman, rfc., etc. : 

Dkab Sib— I mnat beg yon to accept the warm weather 
incident to this seaqon of the year (together with the thought 
which forces itself upon my mind, that my presence might 
pomibly cause some persona — who do not hiu/io me — to think, 
that I was electioneering) as a sufiicient apology for not ac- 
cepting your kind invitation to join our friends in the Con- 
v^tion at Chicago on Wednesday next. 

I shall be wiOi you, however, in spirit, and also by the 
presentation of thousands of pamphlets, which give my views 
on the most important issues of the day, and some of the 



errors of pnblic adminifltratioa, to which both the Kepnh- 
Jjcan and Democratic parties neglect to give attention. 

I waited long and with, I tnifit, a fair degree of patience, 
for Grovemor Tilden'e letter of acceptance, entertaining the 
hope, that I might find sufficient ground for retiring from 
the field as a candidate, nominated for the same ofBce. Bat 
in this I was disappointed, as he indicates a determination, 
similar to that expressed bj Governor Ilayee in his letter of 
acceptance, to the effect that, if successful in the canvass, " no 
step backward " from the wrong policy, pursued by the Gov- 
ernment relative to finance, will be taken, notwithstanding it 
has ruined untold thousands and brought sore distress upon 
honest toilers throughout the land, etci . . . 

It is extremely difficult to frame an apology for the course 
of financial legislation, that has been adopted by the Govern- 
ment of our country, and is still insisted on by both poht- 
ical parties. I find, on a close examination, that it is just 
such a policy as men and nations would advise, who have a 
direct and immediate intei'est to mislead and deceive us. 

The legislation of our country, on this subject of finance, 
has been nearly identical with that, adopted by Great Britain 
dunng and after her Napoleonic wars, and is attended with 
similar results. The English Government caused a suspen- 
sion of specie payments for more than twenty years. Those 
years of suspension proved to be the years of England's 
greatest prosperity. 

But England, like our own country, in an evil hour, un- 
dertook to enforce specie payments by law. This shrunk 
the values, as Sir Archibald Alison says, " some fifty per 
centum, and caused a wide-spread wretchedness and ruin" 
over that country. 

A similar pohcy has paralyzed all our industries, and has 
brought suffering to millions of the Ameiican people ; and 
this must continue as long as the present contraction of the 
currency is allowed to go on. 

I here repeat my belief, that prosperity will never again 
bless our glorious country, until justice is established, by giv- 



ing btck to the people a anfficient rolume of cmrencj, with 
which to trsnsact bnainess. This can only be assared by the 
nee of DKtioiial, paper monej in defraylbg all proper expenses 
of the GoTemiueiit. 

When oar Gorernment h&B eecnred to the people one kind 
of paper tnonej, receivable for all forma of taxes, daties 
and debts, and interconvertible with national bonds, bearing 
an equitable rate of interest — when snch an inestimable 
blessing has been secured to mj beloved coontry, I shall be 
able to Bay, with one of old, " Lord, now lettest thoa thy 
servant depart in peace," for I have seen the salvation of my 

Very respectfnlly yours, 

Petbb Cooper. 

Addbesb at Coopeb iNBTTrnTE, OcrOBEB 19, 1876. 
Mr. PreaidetU, Ladies and Gendemen : 

We have met, my friends, to call and fix attention on one 
of the most important subjects, that has ever claimed the 
attention of the American people. 

We, the Independent Party, hold it as an established fact, 
that the adoption of the Constitution by the people has 
made the coining of money, and regulating the valne there- 
of — ^in connection with the fixing of a just and uniform 
^«tem of weights and measures — the first and most import- 
ant duty, enjoined by the Constitution on the Congress of 
the United States. All must see, that justice could not be 
established, and the general welfare of the people could not 
be promoted, without making the money measure of the 
country as uniform and as unfluctnating, in its measuring 
power, as the yard, the pound, or the bnshel measure. All 
must flee how utterly impossible it would be for our Govern- 
ment to regulate commerce with foreign nations, and among 
the several States, without a uniform system of ■money, 
vieiffMa and measures. 



Onr Indepeadent Party are compelled to believe, with 
Thomas Jefferson, thftt the time has come, when "baok 
paper mvtt he »uj^pressed, and the circnlating medium muBt 
be restored to the nation to whom it belongs." 

Is England the Bngpenaion of specie payment for some 
twenty-five years, during her Napoleonic wars, proved to be 
ft great blessing, and made them the years of the greatest 
prosperity, known in the history of that country. England's 
attempt to return to specie payments *' brought with it," as 
Sir Archibald Alison says, " a greater amount of loss and 
suffering, than had ever before been brought on that conntry 
by all the wars, pestilence and famine, that had ever afflicted 
their land." 

The paralj'zed condition of the industries of onr conntry 
has resnlted from the adoption of a similar effort to contract 
the currency of the country, in order to secnre a promise 
from local banks, that they would pay specie on demand. 
Thns far onr Government seems to have disregarded the 
warning of Sir Archibald Alison, who said, that he feared 
America might adopt the unfortunate policy, which had 
brought such wretchedness and ruin on the people of Eng- 
land through an anwise attempt to enforce specie payments 
on a people, that had been compelled to use a paper cur- 
rency for more than twenty years. Onr Government has, 
not only disregarded the warnings of Sir Archibald Alison, 
and all the history and experience of the past, but it liaa 
adopted a policy, snch aa we are compelled to believe has 
been pressed on as by men and rutions, who have a direct 
interest to mislead and deceive us. 

My views on ^is whole subject have been eo fully set 
forth by the punphlets and newspapers have spread broad* 
cast over the conntry, that I will not detain you longer from 
the pleasure we sh^ receive by listening to onr friends, 
who will address us. 

I will only add, that it is greatly' to be regretted, that our 
Govemraent has not le^slated for onr conntry in accordance 
with the direct advice of Franklin, Jefferson, Cfdhonn and 



Others like them. If their warning voice had been heeded 
by onr Government, onr country wonld have been bleesed, 
like Franee, with a sufficient volnme of gold, silver and 
paper currency, made eqnally receivable by the Grovemment 
and people for all forms of taxes, duties and debts. Na- 
tional paper money should have remained equal to the 
amount, actnally fonnd in circnlatioa at the close of the war. 
That annoant had become the people's money, and could not 
be taken from them without a violation of that clause of the 
Constitation, which makes it the positive daty of Congress 
to establish justice, by every act of legislation, as the only 
possible means, by which the general welfare can be effectu- 
^y promoted. 

One thing is certain, that the national debts can never be 
paid by a governmental policy, tiiat shrinks the currency, 
destroys values, paralyzes industry, enforces idleness, and 
brings wretchedness and rain to the homes of millions of 
the American people. It is eqnally true, tliat Americans can 
never buy anything cheap from foreign coontries, that must 
be bought at the expense of leaving our own good raw ma- 
terials unused, and onr own labor nnemployed. It sliould 
be rwnembered, that neither gold, silver, copper, nickel or 
paper are money withont the stamp of the Government 
upon it. The C!onstitution has made it the duty of Congress 
to coin the money of onr coontry and regulate the value 
thereof, and fix a standard of weights and measures, as the 
only poasil^e means, by which commerce can be regulated 
between foreign nations and among the several States. 



Bbpobteb — Mr. Cooper, what do yon think of the late 
letter of Mr, Reverdy Johnson, on the subject of the cur- 
rency ! 

iSi. CoopzB — I think, that Mr. Johnson has there given 



Bome very wholesome truths, and for a man of his intelli- 
gence, he has made some remarkable mistakes. He aaye 
truly, that " the qnestion of currency is now the most im- 
portant one before the country. It rises, or should rise, far 
above mere party contests." 

He adds, with great propriety, that ''the subject of cur- 
rency afFects the permanent welfare of every citizen — the 
prosperity of the country, and the reputation of the Qov- 

He then adds, that "it must be obvious to every reflect- 
ing mind, that a currency ought to be as far removed from 
flnctuations of value as possible." 

I believe, that Mr. Johnson is unquestionably ri^t in say- 
ing that, " with a currency, subject at times to a depreciation 
and at times to appreciation, the consequences can but be in- 
jurious ; and the extent of injury will be in proportion to 
the changes of value," 

Mr. Johnson then states, what I believe to be an entire 
mistake, that " the experience of the world has long since 
demonstrated that gold and silver alone constitute a safe 

As to what control the Government has over money, this 
will find its best answer in the language of the Constitution, 
where it says, that " CoNGREse bqall have poweb to lay 
AND ooLLBCT TAXES, — to borTow mon^, to rogulato com- 
merce, — to coin money and regulate the value thereof," a 
most important function, and " to make all laws which are 
necessary and proper for eanying into execution the fore- 
going powers, and all other powers, vested by the Con- 
stitution in the Government of the United States." These 
are necessary to " establish justice and promote the welfare 
of the nation." 

Rep. — But what are your views, Mr. Cooper, on this 
question of currency, in relation to the Government at the 
present time ! 

Mr. C. — I think the currency question lias been managed 
by the Government very much in the interests of the mon- 



eyed dasBes, and very poorly in the interestB of the people. 
Let ns look at some of the fact^. 

In the year 1860, a civil war broke oat in thia country, 
which threatened the integrity and life of this nation. At 
this time, the expeusee of the Government increased very 
lai^y over its current expenses in time of peace. 

In fact, it became necessaty for the Government to bor- 
row money and place a lai^ debt on the ahonlders of po^ 
terity, in order to transmit miimpaired the priceless boon of 
free lostitntionB, and a powerfnl and self -protecting Bepub- 
iicof States. Now, a nation is not like a private individnat, 
who, if he wants money, must go and borrow it of some one 
else, because he has no resource of his own, from which 
money can come, but only some security, which he may give, 
that the money will be returned. A nation has always in- 
definite resources, on which to draw, and yet can give no 
LEGAL aecurity for the payment of its obligations. Moner^ 
itself is a creatore of law, and the sovereign prerogative of 
the State. The Government can make anything a legal tendery 
and it is only a question of expedieucy what it shall make. 
Bat it can give no legal security for payment of its debts ; be- 
eaose a sovereign State cannot be sued, nor can you replevin 
aa its property, except by war. To be sure, a nation may bor- 
row as a private individual from another, or from a corpora- 
tion; but in doing so, it puts itself in a false position, and 
makes itself subject to the lender, as in any other debtor, 
to the extent of his debt — except -that the creditor has no 
other resource for collection bdt to take entire control of 
THAT QovEBiruEST, ss respects its financial policy. Therefore, 
the people and their interests may be shoved aside, for they 
become antagonistic to the class, which are the creditors, who 
naturally desire to make their loans at the least cost and the 
highest interest. But, if the people themselves, in their 
solid interests and unity, as represented by a Bepublican 
Government, were both the debtors and creditors of all the 
public debt, then there would be no antagonism between the 
debtors and creditors. 



Eep. — Bat do yon mean to say, Mr. Cooper, that a Got- 
ernment has no need, and shoald never borrow from indi- 
vidnals and corporations f 

Mr. C, — / thtTik, thai a Ji^nil>Uc like ours, wUh Ha forty 
miUum4, with He enormous exteni of unooct^ned land, ii» 
toonderfttl resources, and its enterprising jteopU — eg-uaUy 
nusrvdoua for their growth and the increase of their wealth 
iffithin the centnsry — A<m no need to harrow from anybody. 
Why ahovM this people borrow, as a private debtor f If, in 
their sovereign c(^acity through the Government and under 
constitutional and legal forms, they can lay under coniribun 
Hon the whole property, and the services of every man, in 
protecting the Uves and property of all, they certainly eon 
issue tokens of this vrndmibted fa(±, i/n the shape of legal ten- 
ders,' and these become, hy this act of sovereignty, tM Tnoney 
of the oowniry, the measure and the means of exchanges. The 
people, who give them, in their sovereign capacity, m/ust take 
them in their prwate capacity, and again receive them., in 
their sovereign capacity, as the Govemm,ent for team. This 
makes their circulation a/nd their use. But the significance 
of these pe^er legal tenders is, thai they are tokens if each 
service or material, rendered to the Government ; and they 
a/re also promises to render an equal amount <f money, aer- 
vice, or useful material in exchange, to the holder, hy the 

The paid fnnctiona of Govemioent, or the equivalent 
taxes form a juet and adequate basis for the redemption of 
a paper currency, and fnmish a better legal tender than 
gold or silver, for the domestic purposes of ti'ade, if prop- 
erly regulated by the Government ; hence, I would demon- 
etize gold and silver, except as mere tokens of value, and 
make Gtivemment paper, exclusively, the legal tender. 

This is a very important proposition, in the discussion of 
national finances, and demands a clear explanation. 

1st. If a private note of Iiand or a bank-note is good in 
proportion to the known credit and resources of the individ- 
ual or the bank, so is that of the Government, and in a 



enperior d^ree, as the OoreiDment has a larger credit and 
more reeoarces than an indivicliisl or a bank. 

2d. An individual or a bank pays it« debts by means of 
its credits, or the valid claims either may have on others ; 
80 does the Gk)Temment ; and the valid claims of Govern- 
ment are all represented in rightfnl taxes, imposed for its 
proper fanctions and employments. 

Government, on one side, is the giver of sonnd credit, rep- 
resented by its "paper ; the- validity and redeeming basis of 
this paper is in the fact, that the comrannity is indebted to the 
Government in the shape of taxes for so much service and 
material, as may be necessary to carry on its proper function, 
and pay its officers for services, rendered to the public ; this 
creates an obligation on the part of the public to receive 
Government paper for value received. Thus the circula- 
tion is (»mplete. As the creditors of an individual or of a 
bank receive its paper and pass it to debtors, who in their 
tnm pay their debts to the bank vntb its own paper, so tlie 
Government puts out its paper for service and labor, and 
redeems its notes by the taxes due. This is tlie sort of 
l^al tender and airrency we need, as undoubted repre- 
sentative for value received, as gold or silver. Regulated in 
volume by the amount of taxation, which the people are 
willing to bear, in order to support Government ; for not a 
dollar of it can be issued, except for value received, and un- 
der tlie watchful guard of the whole machinery of Govern- 
ment. Where, then, is the danger of inflation, except in 
time of war, or by a temporary wresting of the Government 
from the hands of the people ) One of these contingencies 
is comparatively rare, and not without its compensations in 
the objects, attained by tlie war. The otlier is a very remote 
and improbable contingency in a country like this — ^hardly 
worth taking into account in this argument. 

On the other hand, bank paper is sure to be inflated 
sooner or later, without compensation, but with general loss 
or disaster. For, if it is to be redeemed by specie, the paper 
cannot be kept within the limita of redemption and satisfy 



at the sftTpe time the demand for credit. If a part of it he> 
cornea irredeemable, the whole of it becomes irredeemable 
at a blow. 

Bat, if the paper merely represents credit, it is the real 
capital and claims or assets of the bank, which must sup- 
port that credit ; and the history of banking clearly eiiows, 
that the inevitable tendency is, that bank circol&tioa gets in 
advance of ita real capital or assets ; because the assets are 
eaie to fall greatly in the jnarket, if they are brought quickly 
forward to pay its debts, as is the case in times of panic. 
The sndden curtailment of its loans, from time to time, can 
alone keep up a system of banks, and ^is is enre to bring 
on min and panic in business. Not so with a Government 
cnrrency, r^;ulated solely by Government taxes and dnes. 
It must be comparatively steady £nd unfluctuating as the 
taxes ; and hence, the general credits, based on such a cnr- 
rency, cannot fluctuate enough to produce great inflations, in 
time of peace, and the consequent reactions and panics in 

Eep. — ^Wliy not ! It seems to me, that Government paper 
may be subject to great inflations, as well as bank paper, 
and the expanded credits, that aris^ from such inflations, 
mnst suffer contraction, sooner or later, by a natural law ; 
for the pay-day most come at last, and few, who are eager 
to borrow, can meet the payment. Government paper may 
be inflated on a more gigantic scale than bank paper, as our 
last war proved. ■ 

Mb. C. — That was a war measure and was justified for the 
same reason as the war. But the miscliief did not arise 
from the expansion of the cnrrency, which sent a vivifying 
influence throughout all our indnstries, and produced the 
most prosperous times this country ever Jiad ; but it was the 
contraction of the currency, which brought the distress ; and 
tliis was neither necessary nor called for by any advantage 

The eagemesB, with which onr cnrrency was funded by 
foreign bondholders, was owing to the fact, that our Govem- 



ment gave encb high ratea of interest, aa compsred vnth 
other Crovemmenta, and promiaed both principal and inter- 
est in gold, when the paper, that bought the bonds, wsb at 
forty or sixty per cent, discoant on the gold. Was that 
patriotic or necQeeary 3 To pay ao mach of the debt of the 
nation before it was due, ae Mr. McCnllongh boasted was 
hie object, and to tnra so large a part of the currency, which 
fed the industry of the people into bonds, which taxed that 
industry, was a very- ahort-si^ted policy for the Oovem- 
ment to purane. 

Bef. — But how ia the Government always to keep ita paper 
isBues, in time of peace, on a par with the standard, adopted 
as a unit of value — ao mntck weighi ofs^er or gold, in the 
coin dollar t This standard gives meaning to the stamp oa 
the paper, as eqnivalenir to, or exchangeable for, ao much 
value, as the number of dollars stamped on the paper, 
measured by tjie tttcmda/rd oovn doUa/r. This is a necessaiy 
starting-point in meaauring values, aa a certain length or a 
certain weight ia to the yard-atick, or to the pound weight. 

Mb. C. — That is very true. It ia necessary to have some 
eubstantial and recognized standard of value to start with, in 
money, whether it be coin or currency. This standard, how- 
ever, might be a pound of cotton of a certain fineness, or a 
pound of tobacco of a certain quality, as far as giving a 
standard value to the paper was concerned. It is also true, 
that the paper must have w»7ie exchangeable value as money, 
as measured by a standard ; and the Government cannot 
give it that exchangeable value, in amy quantity, by merely 
stamping the paper as worth so much. What we want ia a 
f{i^f>er money, made equal in exchangeable value to gold or 
silver of a certain standard. 

Kow the Government keeps its promise to pay in three 
ways : First, by accepting these paper promises, as they may 
be called, for all taxes and dues to the Government. Sec- 
cmdly, by compelling every individual to accept them in 
payment of all debts. And finally, by redeeming them in 
that^ which the holder of the currency shall accept as eqniv 



alent Talne, the Gtoveninient Bonds, tima distribating bnr- 
deos and benefiU over the whole country. 

Bep. — Bat this ie only compelling individuals to accept 
one token of debt for another. How is the pnblic debt to 
be paid at last, and how shall we get out of this vortex of 
promiees to pay ? 

Mr. 0. — In one sense, there is no need to get ont of this 
Tortex ; th^ planets move in a vortex ; the wJuAe of eooiettt, 
and the vnwerte, aafar as we see it, rnove in vorUces. !I%is 
is the grand late (f motion and fflroulation. But cvreidation 
also ngnijies growth and ministers to it. Parts of ewry cir- 
euiatmg medkivi setde down to something soUd, which maJces 
a 2>art ^ the organism, keeps up its inte^ritjf and adds 
to its growth. The cirauUuing medium of money setties 
down, ai last, into somethinff solid in. interest a/nd proper^, 
■under the sams taio of conversion^ that makes each drop of 
hlood contribute to hone, musf^, or other organ of the body. 
For instance, New York City ie building a great series of 
piers and wharves for the accomodation of its present and 
future commerce and trade. It is demonstrable, that these 
piers and wharves will pay in rents to the city, not only tlie 
interest, hut the principal of all the money invested in 
twenty years. The city issDes its bonds for this work, which 
represent a certain amount of interest and principal. But 
the city, not having the right to issue money, offers its bonds 
for sale to the banks, or to private individuals, which are 
henceforth alienated from the possessioit of the city, in order 
to get the money or current^ to pay for labor and material 
in this public work, You might ask, why should not the 
city keep these bonds in its own safes, and issue the money 
for current expenses on its own authority and credit t I 
answer : Because that wonld be an act of too great a local 
sovereignty— though it is no more than is now virtually con- 
ceded to local banks. Let the general Gtovemment, then, 
in its sovereignty, make such a currency, so based and se- 
cnred, a legal tender. Then, when this work is done, and 
begins to pay to the city rents, let the income he applied to 



the extingnishment of the bonds, as well as keeping it in 
repair. This is what I mean by settling down a circulating 
medinm or cmrency into solid katebial and capital, oi^an- 
ized into permanent nee. 

This makes a cirenlating medinm, always expanding, and 
always contracting into a solid form. The tme design and 
highest function of currency and credit are to encourage and 
etimnlate indastry and enterprise in useful forms, and to pro- 
mote the work by giving the very tools, with which it can 
be done. It represents the material value of the products 
of labor in process and not yet complete, for which it pro- 
vides merely the current wages or support, till the fruit of 
labor comes to maturity, when that pays for all, 

J^. — Mr. Cooper, what is your opinion of the present 
banking system ! 

Hr. C. — Financial institntions tire very useful, and will 
always be necessarry to carry on the commerce, trade and 
industries of the country. They concentrate capital in 
financial centres, from which it is again distributed all 
over the country, where it is most wanted. I regard a 
banking system, properly confined to the collecting and 
loaning 6nt of the real capital, in aid of aJl useful enter- 
prises, as a national blessing. But, incidentally, banks do a 
great deal of mischief by doing business, in part, on a bad 
system and on false assumptions. They often confound tlie 
diatiuction between credit and capital, and do business on 
credit without capital ' Credit must be distingniBhed from 
capital. Credit cannot be borrowed or lent, it can only be 
given, or exercised by one mind toward another. Capital is 
borrowed and lent, for it can be passed from hand to hand. 
The one is very neceseaiy to the other ; for capital supports 
credit, and credit sets capital to work in multiplying capital ; 
thus preventing the latter from waste and loss of it. Credit 
and capital, therefore, naturally imply each other, and are 
necessary to a mutual existence. It is death or disaster to 
both to separate them. Financial troubles may come from 
the want of capital or credit, or both. 



Rep. — Bnt how do jon acconnt for our preaeat financial 
troables i 

Mr. 0. — Oar present financial troubles, doubtless, b^;an 
in the want of sufficient capital at command, to carry on cer- 
tain great and small enterprises to Boccessfnl isenes, in 
which the parties asked more credit than there was capital 
to back it. Bnt when these parties failed, it gave a shock 
to credit ; this paralyzed the actire ose of capital, and with- 
drew it still more from the support of credit, until a pania 
came. For people did not know where or when this trouble 
wonld stop. Like a crowd in a public building, the mah for 
escape, when there is an alarm given, hears no proportion to 
the danger; bnt it. soon snbatttntes &far worse source of 
destruction and suffering in the panic And, as in this case, 
the trouble is soon relieved by opening wide the doors of 
egress, BO, in financial panics and troubles, the true remedy 
is ea^pansion of credits and capital, and not conira<^on. 

Rep, — ^But what have the banks to do with eH this! 

Mr. 0. — I have not, aa yet, mentioned the chief sonrce of 
our flnanci^ troublea and panics; it is the false system, 
which car financial institution mix up with what is true in 
them. They rest much business on a yiUee bottom, which 
may drop out at any time. They lend their credit without 
sufficient capital to back it, and call it lending capital. The 
old system of banks, which some are now anxious to renew, 
lent ont three and five dollars in paper to one of gold, kept 
for redemption. Their capital was to the credit they as- 
sumed as one to three, five, or more ; consequently, when the 
capital, promised by the paper, was called for, as sooner or 
later it mnst be, so much of the credit came to naught, in- 
volving loss to the banks, not of their a^iial, bnt of their 
sham credits. But these sham credits meanwhile had trans- 
ferred a great deal of real property from the hands, to which 
the property belonged to those, who held the temporary 
credit. This injustice and wrong come to the surface, at 
short intervals, in the shape of panics and financial distress. 
The present system of banks, although not doing business 



on a specie basis, yet introduces a false bottom to business in 
another waj ; they do a large amoimt of boGiness on their 
depositors' capital. If the deposits are called for faster than 
the bank can retom them, the bank fails in its credit, but 
loses oomparstavelj little. The loss of real capital falls 
chiefly on the trusting depfmtora. This system goes smoothly, 
transferring property and facilitating trade, till the capital, 
implied by the credit, is needed in substantial form. The 
promise can do longer be put ofi ; the payment is required ; 
then the false props are all taken away, and financial ruin is 
the result ; credit, giren to brains, muscle, indnstry and enter- 
prise, is one thing, and credit, given to actual products and 
estates is another ; bat still credit, based on ei&er is a real 
credU; because brain-work and enterprise are jnst as real as 
the material products, to which they give existence. But 
credit, based on mere assurn^tion or 8Vjf^>Q8ition of capital, 
is not properly based. It is a bogus credit, that looks like 
the real thing, but sooner or later fails entirely. 

If the Government does not require the banks to redeem 
their notes, either in gold or in bonds, or if it allows them 
to coin their deposits into loans, it gives them the privilege 
of giving others the use simply of the banks' credit, far 
beyond their capital. The banks have done too much of 
that business already. 

Rep. — What, then, would be your t^medy for this false 
system of banking t 

Ub. C — The tme remedy for all these financial shams 
and pretences, that transfer the property of Uie real owners 
to those, who are mere financial agents, is to permit the 
banks to do boaineBs only on real money or legal tender, 
interconvertible with bon^s. This will convert all money 
into a safety fund, and make it unnecessary for banks to 
loan tlieir deposits, which they can always fund in Govern- 
ment securities, and have them again on caU. But this sys- 
tem will expand the real credits, which the banks can give, 
based all on real capital, and make such credits equal to the 
wants of a new and expanding country like ours, with insti- 



tutioQS, that stimulate the industries, eDteprisee and powers 
of this people bejond anything, that history can yet show 
of any people. 

Some people mistake altogether, or put a false construction 
on transactions, called credit, which are not so strictly. 
For instance, if you go to a bank or a broker and give your 
bonds, stacks, seciiritieB in mortgages, or any o^er shape, 
and borrow a certain amount on the same, that is not strictly 
giving and receiving credit ; it is simply a sale of property, 
WITH AU IF. For, if yon fail to pay on a certain day, there 
will be transference of property, but no credit lost. In fact, 
the man borrows the use of credit in the shape of money, 
but makes it good on his own property. Therefore, tlie 
borrower himself gives the only foundation there is to that 
credit. But, if the man is about to improve a fai-m, or build 
a factory, and borrows money to bay material or employ 
labor, which money can only be returned, if be succeeds in 
his enterprise,- and produces a piece of property on the 
strength of that credit, which may return all tliat has been 
invested in it, that is bbal obeoft. That money represents 
the credit or faith, given to an enterprise and a work in 
progress, which may result in some valoable property ; but, 
if it does not, the credit is lost and both borrower and cre- 
ditor are sufferers by the failure. There is certainly a 
difference between borrowing money on the security of a 
tangible property, equivalent to the sum borrowed, and 
borrowing money on the faith of the powers, intelligence 
and capacity for work, which wiU create a piece of property, 
if given the credit and opportmiity, which the money for- 
nishes. This last is the only credit, that the poor need, or 
can ask.' But it is essential in the world, and there ought 
to be no limit to such credit, except what is sufficient to set 
every man and woman to some useful work. 

This makes credit in finance, like faith in religion, " the 
evidence of things unseen and the substance of things hoped 
for." This process is going on every day ; for there can be 
no growth or development in society without it. But now 



Governments, general and local, mix np their own credit, or 
seek altogether to snetain the pnblic on private credit. The 
sovereign authority of making this circulating medium of 
money, which ought to be backed by the highest, most per- 
manent and reliable ability to pay, ii thought safer by many, 
when the weight of responsibility is put upon private shoul- 
ders or those of corporations, than when it is resting upon 
the broad and secm'e basis of a nation, oi^nized under 
Bepublican institutions " by the people and for the people," 
pledging its wealth and honor aa a nation for the redemption 
of all debts, incured for the pnblic weaL 

This enslaves a people, through the very machinery of 
free institutions and republican forms, to the will, the caprice, 
or the greed of particnlar classes of individuals, that control 
money. The Government should never be a borrower, 
except of snch labor and material as is necessary to pnblic 
service. This it mnst aknowledge by tokens of its own crea- 
tion and stamp, and pay at maturity, by means of taxes on 
property, which this very credit has brought into existence, 
and, as it were, soLmiFiED into a permanent source of 
income, such as a great pnblic work, or any form of fixed 
capital, or, still more, a nation's life and prosperity. What 
I said New York was doing, and might do with regard to 
her public works, could be done by the Government on a 
far grander scale. 

Eep. — But, Mr. Cooper, I do not understand what you 
call "real inon&/." Is not gold and silver the only real 
money, and all other forms merely representative of value ? 

Uk. — C. No, sir ; gold and silver is not the only real 
money. The precious metals are constituted money by the 
same authority, and for the same purpose, that paper may 
be employed as money. Money is purely a creature of law. 
All metals mnst be coined by authority, before they can pass 
as money ; and the proof of this is in the fact, that the 
precious metal, stamped and made into money by one 
Government, will not pass as such under the jurisdiction of 
toother. Foreign coin is never a legal tender. This being 



the case, we most look to eomettiing else as the essential 
characteristic of money, than the exchangeable valne of the 
Babstance, of which it is made, which makes it a commodit; 
in any market. The valne of money depends npon two 
conditLons only, both of which are governed by hiw, and 
only oue of which depends upon demand and supply, as to 
the Talnes of pure commodities. The first condition of 
giving value to money is to make it a le^al teuder for all 
private debts, and also the taxes and daes of Gtovemment 
This gives it a pure legal value, and makee it like a mortg^e 
on property, and also like a note of hand, issued by the 
Government, and secured as well as redeemed by its taxing 
power and authority over the whole property of the country. 
The second condition of value in money is, that it should 
be rentable, like any other capital, or bear some interest to 
the lender. This can also be fixed by taw, as in laws of 
usury. But the Government can go further than ^is, in 
giving a legal value to its own legal tender in the shape of 
paper money ; it can make this legal tender fundable at a 
fixed rate of interest, payable either in coin or in its equiva- 
lent paper. The bonds of the Government thns give a se- 
condary or vendible value to the paper money, which makes 
It like any other commodity, rentable, and of a market 
value. This being a fact, it shows that, in all tlie propter 
qualities of real money, paper money can be made such by 
^e Government that issues it, ae gold or silver coin — it will 
pay all your debts and taxes, and also has a market value, 
because it is rentable or loanable. 

Bep. — But not abroad; you cannot send this money 

Mb. C. — ^Ko, yon cannot send any money abroad, except aa 
commodity, vendible, which takes from it the cliaracter of 
money. But this is an advantage in the use of paper money, 
which, being an indispensable measure of values at home, 
and a necessary means of exchange, should never be taken 
from the trade and domestic uses of one country to be ex- 
ported as commodity to another. 



Ebp. — How, then, shsll we keep up its value on a par witli 
that of other conntries, so that we shall not be baying abroad 
with one standard of valne, and selling at home with an- 
other } 

Mb. O. — That is no great hardship, compared to being left 
without snfficient money to do business and pay the wages 
of labor. Bat the true remedy for this is to encoarage in- 
dustry in every way at home, so as to have a snrplns of pro- 
daction in things, that can find a market abroad, and thns 
keep even the halaause qf ta-ade, which keeps the money of 
different conntries at a par valne. For this purpose nothing 
is more condncive than a good, sound currency at home, in 
sufficient quantities, at all times, to keep up all the ex- 
tinges and the payment of wages, needed for our own 
domestic indostriea, and to protect onr own people from too 
great a competition with the cheap labor of Europe by a 
proper revenue tariff. This is the commercial and financial 
sheet-anchor of any people. A tariff taxes the stu^lus of 
other conntries, which finds its way to onr own markets for 
the support of the Government which protects, and in a man- 
ner famishes that market. It taxes chiefly the capital of 
the foreign numnf acturer and the domestic importer of this 
enrpluB production ; because they must find a market tom6- 
where, and therefore sell at whatever rates they can get in 
competition with the induetiy at home, helped by the tariff ; 
and it taxes the consumer, who will buy loxnries, that leave 
onr own good raw material unused and onr own domestic 
labor unemployed — for I assnme, that nothing but what in- 
terferes with these, shall be subject to tariff. 

Bep. — But gold and efiver have an intrinsic and vnalienahle 
market valne all over the world ; whereas your Oovernmcnt 
paper money — curreney or bonds — ^has purely a legal value, 
and may be real to-day, but nothing to-morrow, depending 
entirely upon the stability of Government. 

Mb. C. — So has all paper, representing true value and 
made the medium of exchange — a note of hand, a mortgage, 
or a bank-note — tliey all derive their virtual value from the 



law, tliat constitutes them representatives of valne. Yet 
modera commerce and trade cannot dispense with these and 
reduce all their transactions to barter, or to paying balances 
with gold and silver. They assnme the stability of Govern- 
ments, without which neither property nor life are secnre. 
What secnrity wonld gold give, if there was no Government 
to protect it i All these paper obligations, used as medinm 
of exchange and having a market value, are based upon the 
faith, the property and stability of individnals or corpora- 
tions, with the further sanction of law. "We desire, as a 
medium of exchange a legal tender, that shall represent the 
whole taxable property of the country and the stability and 
faith of the Government. It seems to mo that, if a cor- 
poration can iaaae valuable paper, much more can a Gov- 
ernment, backed by the resources of a whole people, do the 

'Rkp. — ^Bnt how has the Government failed in its du^ to 
the people ? 

Ma, C. — The Government, during the prioress of this war 
of the Itebellion, felt obliged to employ more service and 
material in the struggle for existence with a powerfid foe, 
than it conid pay from any immediate resources. It felt 
obliged to borrow tliis material and service on credit. It 
issued its bonds; but the Orovemment went begging, as 
Kew York does, to private individnals and to corporations 
to furnish another credit, called money, for the purpose of 
paying current expenses. The limited amount of this latter 
credit, whicli was at the service of the Government, made 
the bonds sell at great discount on their face. 

GoiD was sought for, when there was not enough of this 
product of labor within reach to represent a tithe of the 
credit, sought by the Government. Now, if tlie Govern- 
ment conld issue one form of credit, why go beg^ng for 
another ? 

This occurred at last to some of those in authority, and 
paper money tokens were issued. Under a patriotic im- 
pulse and ^ith in this nation and its resources, some of 



tiiese were made receivable for all dues of the Government, 
and others made convertible into 5;20 bonds at par — at the 
will of the holder. This made and kept the currency nearly 
at par with gold, even in the dabk days of aviL wab. This 
will always keep the national currency equal in value to 
gold, provided .it is the only paper in circulation, and the 
exdnsive legal tender, and fully redeemed by taxes, duties 
and Giovemment bonds, at the option of tlie holder. The 
Govenuoent thus has a three-fold method of redeeming its 
paper, whereas the banks have but one method, and that is 
by specie. This method must fail them, at times, because 
the specie will go out of the conntry, when the balances of 
trade are against us, jn quantities sufficient to interfere with 
redemption. " Bank paper," as Calhoun says, " is cheap to 
those, who make it, bnt dear, very dear to those, who use 
it" Banks can never redeem their paper in specie, except 
in times of expanding credits, when very little specie ie 
wanted. During sncb times the banks secure themselves on 
real property, but the public is secured on the bank paper 
only in its promise to pay coin. But this national currency 
was found to be far safer, than any private or corporation 
tokens of indebtedness, and tlireatened to supersede all 
other tokens of indebtedness as a currency. Thus the great 
power and moneyed advantage, which the making of snch 
tokens and the passing of them into circulation gave to pri- 
vate corporations, would be destroyed. Those, who had 
personal interests involved, took the alarm ; they c^;arded 
their vested righia infringed upon, and they had influence 
enough with the then existing administration and Congress 
to have that law repealed. They represented, that gold 
would be drained from the country, and our purchasing 
power abroad reduced to nothing. 

How should we get .our silks, our wines and our cigars ? 
The importers, brokers and money changers of all kinds, as 
well as tlie speculators in gold, would find their occupation 
gone I It was in vain to tell these alarmists, that gold was 
one of the many products of industry, and those, who needed 



it mast bnj it at the market price, whicsh no legislation could 
control, thongh it miglit falsify and interfere with the nat- 
ural price of gold for a time. That it vae of small im- 
portance to the people at large, how mnch gold, measured as 
a commodity, a le^ tender would huj,biitof mnch greater 
importance how much bread could be got for the same 
money. If paper is made a legal tender, under the same 
advantages as gold, that is, that it should always represent a 
real and exchangeable value in interest-bearing property, 
and receivable for all debts, public and private, the paper 
would then be on a par with gold as money. ISo t these 
parties nnderstood, as they thought, theib own iHTBKEBTa, 
and pnder apocioua, but false pretences and ailments, in- 
duced Congress to repeal the law, that made the currency of 
the United States receivable for all dnee to the Ooveroment, 
and also the law, making legal tender notes fuudible into 
Government securities at par. The repeal of the law, per- 
mitting holders of legal tenders to convert them, at their 
option, into interest-bearing bonds, was the most cruel act of 
injnstice, that was ever inflicted on the American pe<^le. 
Thence have come most of the financial troubles and dis- 
asters, of which so much complaint is made at the present 
time. Our bonds were rushed abroad to be exchanged for 
luxuries and for gold at sixty cents on the dollar, instead of 
being taken by our own people at par. 

Millions of gold go abroad to pay interest to foreign bond- 
holders, instead of being paid to our own people. 

A policy of rapid contraction was then inspired into the 
Government ; the necessities of war being over, fnrther 
issues of bonds were made and currency was withdrawn, 
and all credits began to contract, as a natural and inevitable 
consequence. This brought on one of those irrational con- 
ditions in human affairs, which we call a jxmic, that brought 
down credit at once to the zero point, and shrunk the v^ae 
of all property. 

Kef. — But, Mr. Cooper, do yon not think, that personal 
extravagance, rash speculations, and over-production gen- 



orally have much to do with the present fiiiaacial emburass- 

Ma. O. — In a restricted aenee all these causes lie at the 
basis of mneh financial embarrassment. Bat all of them 
put together will not account for the fact, that there are 
over two millions of workmen, operatives, and employees 
oat of work at this time in this country, or on short allow- 
ance of work, who thre^ years ago had ample employment. 
Speculations rain a few in financial centres and cause merely 
a change of ownership in property, and the loRS of credit to 
those, engaged in such speculations. Personal extravagance 
is chiefly confined to a few rich men ; for most people care 
not or are nnablo to indnlge beyond their means. 

Over-prodnction and undae importations seem to be the 
most plaasible of the reasons, offered for the present finan- 
cial embarrassments ; becanse, when goods accnmulate in 
mercliants' hands, and products multiply in the factories, 
mines and farms, without a corresponding demand and con- 
somption, the most obvious cause or explanation is, tliat 
there has been too much production and importation. Bnt 
have these been too much for the demand and consumption 
pravionsly existing, or sabseqnently I The tme law of sap- 
ply, the stimalas, and reason for production, is demand ; 
this comes first, and the former comes last in the order of 
nature. There might be a production, that overtakes and 
passes an existing consumption in particular cases ; bnt it is 
well also to examine, in a general way, whether any cause 
has paralyzed consumption. Now, it has been seen, that the 
systematic and constant contraction of Government t»*editB 
naturally induced the contraction of all other credits ; this 
finally broaght on a panic, that acted like a paralysis on all 
credit ; this led inevitably to the stoppage of so much active 
indostiy and work, as to take away the puitcHAsmo power of 
a great many, and to stop a large part of the previously ex- 
isting consamption and demand. Hence, the over-prodnc- 
tion (so-called) has been merely an accumulation of products, 
due to UKDEB-oonsnicFTioN. The proof of this lies in the 



fact, as I have said, of bo many IndnBtrioTiB people being 
thrown ont of work, and in the statiBtica of the coantrj, 
with regard to its exportations and importationB the last few 
years. In this conuection the opinion of Preeident Grant, 
as expreBsed in his annual measage of 1873, is important. 

'Rep. — But how wonld yoa have prevented this sad condi- 
tion of things from coming on } It appears to me it arose 
naturally out of the irredeemahle nature of the currency. 
Gold and silver have always been regarded as the cnrrency 
and money of the world. A man, that is in debt, naturally 
desires to get ont of it ae soon as he can. Why, then, should 
not a nation exercise economy or conira(i>Um for the same 

Mr. C — Because contraction in finance is not the same 
thing as economy in private life. Contraction in the finances 
of a country means the stoppage of a certain amount of the 
industry aud exchanges, going on in the nation by reason of 
the contraction of the credit, by which these are' sustained. 
It means factories stopped, men thrown ont of work, and 
distress of families for want of the means to buy bread. 
Now, THIS IS ALL WROKQ, and it arises out of a false finan- 
cial system, not adapted to the wants of a people, whose 
wants and powers are all the time expanding, by reason of 
a natural increase in the population, and by our poeeession 
of a new country of unlimited natnral resources, which yet 
need to he developed by the sxpAseias, and not the con- 
traction of the credit, which capital gives to labor. 

Bat, I grant you, there is a contraction on the side of debt' 
in the- finances of a country, which is always desirable. It 
is in that sOLmrmNO process, which I have already de- 
scribed, thai turns carrency intojixed capital, as ike hlood is 
deposited into bones, Jlesh and organism. Tlie bond, and 
the cnrrency, based on it, must be paid and destroyed as 
evidence of that debt, as soon as value received for them 
can be turned into some permanent source of industry and 
capital, like the stone wharves and piers of the City of New 
York. But new credits must ever spring up, which ai-e the 



incipient conditdoD of new improrementB, pnblic and pri- 
vate, and all fixed forma of capitaL Tliere mnet always be 
expansion enongh in the cnrrenc^ to set all the capacity for 
Hfiefnl labor in the country to work. Thisis the only limit 
to the expansion of credits. Gkild and silver ceased long ago 
in the history of the world to serve as an adequate repre- 
Beatative of all those exchanges, which are going on in the 
civilized world, and which it is tlie proper function of money 
to represent. Coin has long called to its BBBistance paper 
of credit, both private and public, not merely to represent 
coin as money, but to represent other real property and 


TBiAL CLASSES, whoso aggT^ato wages any day coold not be 
paid BT ALL THB coiK IH THE WORLD. France uses gold, sil- 
ver and paper, all as legal tenders, and keeps them all busy 
to satisfy her industrial and financial wants. But France 
conld not get along a single day with the coin alone, which 
ia within its borders, or with paper, that merely represented 
coin as currency. This being the fact, as every one ought 
to know, who talks on this subject, it is a most preposterous 
claim, that coin alone can serve as legal tender, or paper 
always convertible into coin. You may adopt the legal fic- 
tion, that aU legal tenders should be convertible into coin at 
the will of the holder, bntyoa cannot carry out this in fact ; 
and the failure to carry it out at any given time, for any 
canse, may produce SLpa/nio with all its disasters. 

Kef. — But what would yon have the Government do in 
reference to its present policy ? 

Mb. C. — The conrse is plain. Let the Government issue, 
not only all the legal tenders, but all that passes in the shape 
of money — all should have the image and superacripiion of 
the Government," whether it be coin or paper. Let the Gov- 
ernment start from a fact, that there has been and is now, 
through its instrumentality and necessities, so many millions 
of l^al tenders and bank paper or currency set afloat, which, 
with the Government bonds now out, represent so much 
credit, resting on the honor and ability of the Ghivemment 



to -paj, btit fDmiehing also the basiB for a great amount of 
credit in the financial eystem of the conntiy. On this the 
eonntry has been depending, and \pith this it hae been at 
woi'k,'in all its indnstriea and trade, Bince the credit paper 
came into exiytence. 

The Government, has no righi to take away these tools, thai 
/uwe set 80 much loork onfociyfrom the people. It is not 
justice. Suppose a man has engaged another in the enter- 
prise of huilc^/ng a house or factory, by promising to furnish 
all the tools, and by gvoimg a certain valuation of rent far it, 
when it is finished. Then at a certain stage of the process 
of erection, the proprietor takes away a part of the tools 
necessary to finish the work, and, moreover, diminishes the 
valuation of both work and -material. Would not that be 
considered a great act of imju^ioe, espedaUy, if the builder 
had no remedy in law against the proprietor f Now, ^is 
is precisely what the Government has done to the industriid 
part of the nation^ with the additional injustice of compul- 
sion in its deaUTtgs with the people, who are not ^moneyed 
a/nd the governing doss. The Gavemmfftd, during a time of 
great exigency,iasuedmilMonsof credit paper,onthe strength 
of which the people willingly furnished lahor omd material 
to carry on a war of sdf preservation against rebellion and 
disruption. £ut not only that, the people began to build up 
the cowntr-y on the strength of this saTne credit paper ; they 
set on foot neuj enterprises, built railroads,factorie8, arid 
opened new mines and farms on the same credit, and by the 
facilities for paying labor and Tnaterial, which this Govern- 
ment currency afforded. After the war was over the Gov- 
ernment began to ^^ynt/racl this currency, and to tote the 
people, in order to buy its bonds h^ore they were yet due / 
which policy oontra(^ed credit so much the more ; and it has 
continued to pursue systematically a policy of contraction ; 
for the purpose, as dUeged, to resume specie payments on this 
currency. The people do not want specie; they loant the 
credits already given them, not to be withdrawn; they 
want their labor and material, freely gi/oen to save the coun- 



/ry, Of to build it vp, to he valued hy (he tame stemdas^ as 
that hf which it was measured, when they Itegam. to work. 
J%e moneyed does obmouahf want soarce money and high 
rates ofint^vst. This gives them tnorejxyujer and less ex- 
jiense. £ut the advantage of the whole people, inei/udmg 
this very moneyeddasa, ff their miereetsiaere rightly tmder- 
der^ood, is to haaie oredit easy to the vndxiStirious, the htmr- 
e^ and the enterpriaimg, and the interest of money more 
nearly equitable. 

Kkp. — "Wbat, then, Mr. Cooper, wonld be yonr specific 
remedy for Uie Suaacial troubles, which iuvolve the country 
at present 1 What would be the policy yoii would recom- 
mend for the action of Congress t 

He. C. — At present Congress has devised no better plan for 
the financial policy of the country than this. Congress has 
passed a law, that specie payments for all cnrrency shall be 
resumed in 1879, and to provide for this, it has authorized the 
Treasorer of the United States to withdraw cnrrency, until the 
prraent volume shall flbrink from four hundred to three 
hundred millions ; and he is further authorized to sell bonds 
at 4 or 4^ per cent, interest, to the amount necessary to get 
the specie wherewith to resume payments. As the 5 per 
cent, bonds, outstanding, are only at par now, I think the 
prospect is \erj poor for selling the 4 or 4i per cent, with* 
out ruinous disconuta and large addition to the debt of the 
nation. If the banks also are made to do business and issue 
their notes only on a specie basis, instead of bonds as now, 
it will shrink tbeir cnrrency so as to bring another panic 

But, if the banks are allowed to give credits, secured by 
Govemment bonds, why should not the Government itself 
do the same } If it will hurt the banks, cripple and cnrtail 
80 mnch their resources for giving credit, why is not snch a 
policy objectionable as to the credit8,given by the Govern- 
ment I But here is precisely the point of departure of the 
moneyed class from the people at lai^. They wish to 
monopolize, not only prvoaie, but all jmbUo credits. All 
credits under the sanction and provision of law and the 



GoveiTuneDt ought to hepul>lic credits, for which the Oov- 
ernment aloDe shoold be held responeible. Sach is any 
paper enrrency now, even if it is not legal tender. Nothing 
bat a legal sanctioQ can pass a bank-note into the circulation 
to the conntry. The credit of the bank is indorsed by the 
Government, in order to be regarded as good. The Gov- 
ernment, imder the present system, often borrows its own 
indorsement! Bot the first point of departure I would 
have from this whole systeni of finance is, that everything, 
gold, silver, or paper, that passes into the circulation of the 
country, as money, should have the Government's image 
and swper^a'i^ptmn upon it, and should be issned and con- 
trolled entirely by the Government, bo that there shall be no 
legalized money, directly or indirectly, belonging to privato 
corporations. This is a part of that t^p&^usl cmd class hgida- 
tion, that I have always contended against, aa the bane of 
£epnhlican institutionB. 

Now, I would have Congress repeal this last act of con- 
traction of the people's credits in tlie shape of currency, 
while it is an expansion oE credits to the moneyed class, in 
the shape of bonds. 

I would have Congress pass an act, which should make 
all currency that of the Government alone ; and, of eourfle, 
I should abolish the present bank currency, giving these in- 
stitutions the option of doing busiuesB only on legal tenders ; 
these tliey may secure at any time, by simply giving np to 
the GK>vemment an equivalent amount of Government 
bonds, whose interest there^ter stops, nntil bought up 
again by legal tenders. This will extinguish the interest- 
bearing debt of the country in part, by one not bearing in- 

Secondly, to start all fairly and justly, Ivxnildhaioe Chnr 
gresa pass an act, restoring the owrreaieg m, volume to the 
condition, in which U was at the dose of the -wa^, or soon 
after ; when, peace being dedaa-ed, the whole nation sprang 
to the arts of peace with the energy of war ; when they took 
these very credits, which the necessities of Government had 



furnished, as the price of the nation's life, and began to 
build np the" conntry still more secnrelj in the wealth and 
products of myriad-Aanded industry; when their hopes 
and their faith were stimnlated to new life by this mighty 
credit, ponred into the circnlation of the coantrj, and all 
the property of the country and its products were measured 
and exchanged by the new standard ; when none were found 
idle, except the shiftless and those, who sought idleness ; 
when no factory stopped its production for want of con- 
sumers, for all were consumers, because all were prodacers. 
I would have all that cnrrency restored to the coontry, and 
not withdrawn or contracted by taxing the property of the 
country to pay it ; bnt allowed to remain, till it had pro- 
duced its equivalent by the industry and products, which it 
brought into existence. 

I would have this whole volume of currency made as per- 
manent and invariable a measure of property and exchange 
as possible, by neither increasing nor diminishing its volume 
by any arbitrary law ; but rather use the agency of Govern- 
ment to keep at its present stated volume, by issuing it 
again with one hand for labor, service and bonds, while it 
received it with the other as currency. I would have this 
specific volume of the currency, from which we shall now 
start, henceforth and forever, never diminished at all, and 
only increased as per oapUa, very gradually and impercep- 
tibly, as statistics shall show, and a rule of increase founded 
thereon, as the exchanges and the population of the country 
increase. And Uiis would be virtually equivalent to making 
the currency a permanent and unfluctuating standard of 
values ; for it would keep it in the same ratio or relative 
measure to all the property of the country and the increase 
of its population. I would thus make the stated volume of 
cnrrency, which has been forced upon the country at one 
time, but which now threatens the most unhappy conse- 
quences, if it be withdrawn — I would make this one volume 
an unvarying measure for all time, by giving it an expan- 
sion by rule and statistical measure of slow application, and 



sacli aa wonld never derange prices or permit flnctnations. 
I would not iacrease the bonded debt of the country either, 
except by rule and statistical measure ; but I would change 
its form from the present high rate of intereet, and from so 
large a portion payable in gold to foreigners, into a debt of 
equitable rate of interest, and payable to onr own citizene. 

Bep. — Bat how can tliis be done without repadiation and 
dishonor to the country 9 

Me. C. — No vested rights can stand in the face of the 
public welfare; common and statute law recognizes this 
principle. Hence, all vested rights can be repealed by the 
law-making power, that conferred them. Under this prin- 
ciple, private property can he taken for public use, and all 
corporate rights can be abolished, that stand in the way of 
the public welfare — but never without proper compensation 
to the parties, that may be losers ; and of this, the public 
administration must appoint the means and provide the 
r^ulations. But I propose to change the character of the 
bonded debt by a voluntary process. 

First. Whoever needs currency must pve np the Gov- 
ernment bonds for it. The compulsion here is in making 
every one do business and pay debts in legal tenders; and 
the principle for their use exclusively is, that the public 
welfare admits of no other money. 

Secondly. Whoever desires to fund the currency shall 
receive bonds at a lower rate of interest than that, whidi 
legitimate hnsiness now gives, but which is higher than the 
average yearly increase of the whole property of the coun- 
try. This I would fix upon as the interest of the bonds ; 
it is now about tliree per cent. 

There is an element of compulsion here ; but as the whole 
conntry pays the interest on the public debt, it seems hut 
just, that only that amount of interest should be paid, which 
the increase in the public wealth justifies, and no more. 

Rep. — But how will you prevent the too rapid funding of 
the currency, and keep it at a steady volume, ae yon pro- 



Ms. C. — This too rtynd ftrnding is, I think, a groondless 
fear, coneidering the low rate of interest given. Because, 
in a country like this, so active, so enterprising, and so full 
of new resoureeB, the opportunities and &e solicitation foi* 
safe investments are far greater than in the old country, and 
would natorallj tend to draw taouej from funding; so that 
the calla for currencj would be eqnal, if not superior, to the 
applications for funding. Bat as the Government controls 
the whole matter, it can keep an eoen hand by allowing 
neither the funded debt nor the currency to increase beyond . 
a certain ratio to each other. As the currency was received, 
it might be paid out again for service, material, or bonds ; 
as the bonds w^e received, they could be paid out again for 
service, material, or currency. Thna the whole of the cir- 
culation between bonds uid currency could be kept even. 

This great bonded debt of the country would really be- 
come the refuge and security of the widow and the fatlier- 
less, and those poor and ignorant people, who cannot invest 
their little savings in legitimate business, even through 
others, because they cannot trust them, and have no ability 
to watch the safety and protect the use and return of their 
money. The public debt would become the poor man's 
Savings Bank, instead of being as now, the exchequer of the 
rich, and the means of pampering wealth and idleness. 
Benevolent institutions, churches, and college endowments 
would seek it, for the same reason, because of its j^erfevt 
iaf^f and even the same funded interests of Europe would 
seek investment in this country for secnrity, and would 
gladly pay gold for all the bonds they could buy, at a little 
higher interest than tlieir own countries could afford. 

Rep. — But what about the gcM all tliis time, which is now 
very much mixed up with this question of finance, because 
it is so universally the l^al tender of civilized nations i 

Mr. C. — It might be a part of our legal tender still. 
France makes gold, silver, and paper, all le^ tenders ; why 
cannot we ? But, if any one wants gold aa a commodity, let 
him buy it aa any other commodity, at the market priee. 



Let ench exchange or cnrrencj or any other commodity for 
gold, as emts their coDvenience and the state of the market, 
which no Goveniment can control without tyranny and in- 
terference with private rights. That whole aubject will take 
care of itself, and the whole drcnlatioa of the world will 
natorally mingle and interchange with our national circola- 
tion, as the enter air mingles and interchanges with the air 
of the room, if passages are left free. 

Rep.— I understand yon, then, Mr. Cooper, that you re- 
gard this whole contest about the currency as a conflict 
between the veaied rights of the whole moneyed class and 
their interests, but ill understood, and the rights and inter- 
ests of the whole people ; that you regard the whole legis- 
lation of Congress on this subject, with little exception, as 
made in the interests of class, special and partial legislation, 
which has been, tbns far, the bane of onr Eepablican instita- 
tions ; becanse, under forms of law, it sacrifices the people 
to classes of special privileges ; and I understand your pres- 
ent remedy for all the present evils and all the f ntnre, which 
are likely to occur from onr system of finance, is, tliat Gov- 
ernment alone issue all currency and whatever circulates 
as money, and makes this currency ■miercorwerttHe with 
bonds, which the Government can control, and not with gold, 
which it cannot control ; and further, that the Govenunent 
start in the present emergency, from precisely that volume 
of credits in currency and in bonds, that was set afloat by the 
irresistible necessities of the war for the Union ; that this 
volume should be sustained substantially as it was soon after 
the close of the war, when it rose to its maximum ; and be 
made the measures of all values, and the means of exchanges 
for all coming time — subject only to the slow increase of 
volume, which statistics shall justify as the increase of popu- 
lation, and its ratio, ^wr capiia, to the currency. 

Mr, C, — That is precisely as I propose ; and my efforts to 
bring this subject before the public are heartily seconded by 
many able gentlemen. 

Bbp. — But it appears to me, Mr. Cooper, you place great 



power in the handB of the Government by Bach a -poikj. It 
may lead to enormous speculations and peculations on the 
part of individuals and officials. Politics will become a trade 
more than ever, because of their close connection with 
finance, commerce and moneyed institutions. Some admin- 
istration may ride again and again into power, and over- 
throw finally all the free institntions of the countiy with a 
great flood of currency, which it can manufacture in nolim- 
ited qoantities by a slight change in the laws, that CongreBS 
may be induced to enact at any time. 

Mr. C. — It would require almost a treatise on repnbllcan 
govermnent to answer all your objections, and then yon 
could not be answered, if you had no faith in free principles 
and democratic ^onns, and in tlie paternal functions of a 
Government instituted " by the people and for the people." 
The slave-holders of our country had to learn this lesson at 
last, and I do not know any vested rights in property so 
enormous, or so intelligent and well organized resistance as 
slavery brought to bear upon the free institntions of this 
country. And yet the slave-holding poVtion of this countiy 
will find itself the greatest gainer by its losses. They lost 
in the conflict, chiefly through the might of truth and jus- 
tice, which will be their great gain. We shall have many 
conflicts, doubtless, between the people on one side, and 
moneyed, social, or religious classes organized with certain 
clums and even vested rights ; but never again so great a 
conflict as the slave-holders brought about. I think the 
Union and the Kepublic may be regarded as safe for a long 
time to come. The people can and will control this Govern- 
ment in their own interest in the future, as well as in the 
past, precisely in proportion as they can be made conscious 
of their power and their rights. The forms of the Consti- 
tution and laws are all favorable to them now, but their un- 
derstanding is darkened by bad counsels. The Government 
IB already, and ought to be in a still larger measure, paternal. 
It shonld aim constantly to " establish justice," and oi^anize 
love and right into law. If we can teach the people justice. 



and ti-nth, they will see to it that the " Bepublic suffers no 
detrimeDt," There is nothing that I caa perceive in the 
policy I adrise, that will place any oncontrollable power in 
the hands of any Administration or Congress. If the law 
will not protect the people's rights, let provisions of the 
Constitution be resorted to. Let us have a dvU service, that 
will make office under Giovemment more of a professional 
and regular occapatioo than of trade and bargain for place 
and patronage. Let the United States embody in their Con- 
stitution, as has the State of New York, that there shall be " no 
special, partitd, or doss legidatiofL," and make its laws on 
the currency conform to this provision of the Constitution. 

The question of the currency is of boundless importance 
to the Ameiican people. The stability of our Government 
will depend on a wise settlement of this momentous interest 

The American people will never allow this subject to rest, 
nntil it is safely moored to that sure foundation of the eter- 
nal principles of truth and justice, on which our fathers 
placed the Constitution of these United States. 

Onr fathers meant, that the Government should be of the 
people and for the people. They intended to embody the 
wisdom of simplicity into law, and make it a shield of pro- 
tection for the unsuspecting masses of the people against 
those, that are resorting to all forms of art to obtain pro- 
perty without labor. The framers of the Constitution 
would never have recommended one kind of money for the 
issues of the Government, and another for the people. 

Under the circumstances, in which our Government was 
placed at the close of the late war, they should have taken 
the advice of their most venerated member, Benjamin 
Franklin, who said that " paper money, well-founded, has 
great advantages over gold and silver, being light, and con- 
venient for handling in laige sums, and not likely to be 
reduced by demand for exportation." 

" On tne whole," he says, " no method has hitherto been 
found to establish a medium of trade, equal in all its advan- 
tages to bills of credit made a general legal tender." 



1£ I have done, or can do anything to restore the tools of 
trade to the American people, to enable them to work ont 
the salvation of onr coantry from the present paralyzed 
condition of trade and commerce, I ^all regard it as a 
treaanre that " moth and ruat cannot cormpt," — one that 
wilt brighten, while life, thonght and immortality endure. 

Two Open Lettebs to his Exoelleno; B. B. Hayes. 
- New York, Jane 1, 1877. 

Honored Sie — Allow me to offer yon my heartfelt thanks 
for the wise and independent coarse yon have adopted in 
the discharge of the responsible and difficult duties, that yon 
have been called upon to perform. The deep interest yon 
are manifesting in the nation's welfare, has already sent a 
thrill of hope and joy into the hearts of snffering millions 
tbronghoat onr conntry. They are looking to yon with 
anxions hope, that yon will urgently recommend and insist 
upon the "eatablishnent of justice" in the dealings of the 
Gkivemment with the people ; as that is the only possible 
way, by which the generaJ " welfare of the nation can be 

Your noble conrae has, thus far, inspired the people with 
the hope and trust, that yon will, in the providence of God> 
be our country's Moees, to lead the people from a tlireatened 
bondage, that now hangs over the liberties and the happiness 
of the American people. 

This bondage has its manifold centre and ite secret force 
in more dian two thousand banks, that are scattered throngh- 
out the conntry. All these banks, are oi^anized expressly 
to loan out their own money and the money of all those, who 
will entrust them with deposits. These loans are made to 
men, whose bnainess-livcs will soon become dependent on 
money, borrowed from corporations, that have a special inter- 
est of their own. Such a power of wealth, under the con- 
trol of the selfish instincts of mankind, will always be able 



to control the action of our Oovemraent, onleee that Govem- 
ment is directed by strict principles of jnetice and of the 
ptiblic welfare. The banks will favor a conrae of special 
and partial l^slation, in order to increase their power — " for 
even the good want power ; " they will never cease to ask 
for more, as long as there is more, that can be wrung from 
the toiling masses of the American people. 

Sach a power should never be allowed to go ont from the 
entire and complete control of the people's Glovemraent. 
The straggle with this money-power, intrenched in the 
special privileges of banks, has been going on from the be- 
ginning of the hietoiy of this country. It has engaged tlie 
attention of our wisest and most patriotic stAtesmen. Frank- 
lin, Jefferson, Webster, Calhonn, Jackson have all spoken 
of tlie danger of such a power and the necessity of guard- 
ing against it. . . . 

The present Secretary of the Treasury, Sherman, speaking 
in the Senate, when the subject of regulating the currency 
was under consideration, declared it to be a fact, that " every 
citizen of the United States had conformed his business to 
the legal tender clause." That Senator further declared, as 
appears by the Congressional Record^ that "if the bond- 
holder refuses to take the same kind of money, with which 
he bought the bonds, ho is an extortioner and a repudiator. 
. . . . There is no such burdensome loan negotiated by 
any civilized nation in the world as our five-twenty bonds, 
if they are to be paid in gold." And yet these very six per 
cent, bonds, that were issued under a law, that made them 
payable in the currency of the country, have by a wwwi 
crud and uTtaccountable change in the law, been made pay- 
able in gold— the very bonds whicli had been sold at from 
forty to sixty dollars in gold for one hundred in currency, 
thereby causing a debt, that now hangs like a millstone on 
the neck of the nation. It should always be remembered 
that debt, in all the ages of the world, has been the most 
effectual means for holding the maas of mankind in a sj 
of enslavement. 



Within my own reeolleetion nnmamed white men coold 
be sold for debt in the State of Connecticut ; bo that debt 
is a species of slavery, as commerce is a kind of commercial 
waf. It is a war of interests, as all nations are asing their 
highest arts to bny as cheap and sell as dear as thej can. 

Onr Government can only regain its former prosperity as 
a nation by adopting a eiiniiar national policy to that, which 
has made and protected the industries of France. 

One of the causes, that brought on the Revolutionary War, 
as will appear by the following statement, were the laws, 
that were passed by England expressly to deprive her col- 
onies of the right to manufacture for themselves : 

"The first attempt at manufacture in the American col- 
onies was followed by interference on the part of the Brit- 
it^ Legislature. ... In 1710, the House of Commons 
declared, that the erecting manufactories in the colonies 
tended to lessen their dependence on Great Britain. In 1732, 
the exportation of hats from province to province, and the 
number of apprentices, were limited. ... In 1750, the 
erection of any mill or engine for slitting or rolling iron 
was prohibited. ... In 1765, the exportation of art- 
izans from Great Britain was prohibited, tinder a heavy pen- 
alty. ... In 1781, utensils, required for the manufac- 
tnre of wool or silk, were prohibited. ... In 1782, the 
prohibition was extended to artificers in printing calicoes, 
moBlins, or linens, or in making implements,, used in their 
mannfacture. ... In 1785, the prohibition was ex- 
tended to tools, nsed in iron and steel manufacture, and to 
workmen so employed. ... In 1799, it was so extended 
as to ■embrace even colliers. 

The war of the Revolution of our own country was 
brought on by a war of commercial interests. It was a war 
that showed a determination on the part of the mother 
country to keep her colonies entirely dependent on England 
for all forms of manufactured articles. Laws were enacted 
to prevent the colonies from manufacturing out of their own 
good raw materials things indispensable for their own nae, 


112 conr ahtd papee currency. 

and necesBsiy to give employment to those, who have 
nothing to sell bnt their own labor. 

Washington, Franklin, Jefferson, and the Revolntionary 
fathers were men, who coold see how ntterlj impossible it 
wonld be for the American people to buy anything cheap 
from foreign countriea, that Ttiusi be bought at the expend of 
leaving our ovm good raw Tnaieriala un-used and our oton 

Onr CoDBtitntion has declared, that Oongresa shall have 
power to make all laws, which shall be necessary and proper, 
to lay and collect taxes, duties, imports, excises, to pay the 
debts and provide for the common defence and the general 
welfare of these United States. Also "to borrow money 
on the credit of these United States." 

It was by this constitntional power, vested in Congress, 
that all forms of Treasnry notes were issued and nsed as 
so many dollars of legal money of the country. At the 
close of the war of the Eebellion, onr QoTemment found 
itself encumbered with promises to pay that, which it did 
not possess and could not command, only as the amount 
could be drawn from the people in some form of taxation. 
The promise to pay shonld never have been made. It 
should have been a promise to receive, instead of a promise 
to pay tokens of debt, which the Government had been com- 
pelled to pay oat as money in its struggle for the nation's 
life. It WEUi a currency, that had proved itself, as President 
Grant had declared it to he, " the best money, that our conntry 
had ever possessed, . . . that there was no more of it 
in circolation, than what is required for the dnllest business 
season of the year." 

These facts being established by a condition of unsur- 
passed national prosperity, that prevailed throughout our 
whole country at the close of a great and terrible war. 
After such a demonstration of the strength, wealth and 
power of a nation, there was no good reason for acts of 
legislation avowedly to strengthen the credit of a nation, 
that had carried on such a war and obtained etich a victoi^. 



What mnat the Americaa people think, when they come, 
to know and nuderstand, that a governmental politsy has been 
adopted which haa taken from tlie people their cnrrency, that 
was ftmuBhed by the people without cofit, and tnmed into 
Buch an oppressive debt, as now burdens and paralyzes the 
indnstries of the conntry ? 

The amount of currency, bo found in circulation at the 
close of the war, should never have been allowed to increase 
or diminish, only as per eapUa with the increase of the in- 
habitants of the conntry. 

Such a currency ehoTild have been made receivable for all 
forme of taxes, duties and debts. That would have made 
our noHoTud paper money as much more valuable, than gold 
in proportion as it wonld be more easily and cheaply handled 
in large snms. 

Oar national currency must be made receivable for all 
purposes throoghout the country, and interconvertible with 
three per cent. Government bonds; it would then, like 
the consols of England, soon become an ever-Btrengtheiiing 
bond of national union. Such a currency wonld have been 
worth more to the American people, than all the gold mines, 
that had ever been discovered on the continent of America.* 

* The following is & rtatoment of the Interest of money paid b; the 
tJafted States since the oloee of the wm of the Rebellion. The following 
■tatement Bhowt, that $1,423,US7,GT7 haa been paid in Interest in 
lit yean : 

Frindpal— Intereat-bearing 11,717,043,180 

Non interest-bearing 478,923,767 

fa, fsi, 565,887 
Interestdne on above; S3,O03,S18 ' 


Less cash in Treasnry 154,209,886 

DebtatMayl, 1877 |2,070,3.'>8,617 

DebtatJnlj?, 1866 2,783,425,879 

BednotJon dnoe Jnlj 1, 1966 (10 10-13 yean). . . . (718,067,263 

Slnoe the oloee of the war, or from Joly 1, 1865 to April 1, U77 (lU 



I hold onr GoTeminent botmd to give back to the people 
their small cnrrent^, that was costing them nothing, and then 
callin the silver carrency, that has heen pat in its place at a 
cost of $81,788,400 paid for silver op to April 20, 1877. 
This silver should he immediately withdrawn, andased in 
the purchase of foreign bonds, thns saving for the American 
people an amonnt of interest, if compounded, that would 
pay the national debt several times in one hnndred jean, 
and at the same time gire the conntry a more convenient 
currency, which would be more than paid for by the amount, 
that wonld he worn out and lost by its nee. *If silver change 
IE ever needed, it can be had with only the cost of coining it 
by the Government, as nearly all the silver, produced in the 
country, will go into coins, whenever the Government will 
coin it without cost to its owners. 

I find myself compelled to agree with Senator Jones, 
where he says tlmt " the present is the acceptable time to 
undo the unwitting and blundering work of 1873. . . . 
"We cannot, we dare not, avoid speedy action on the sub- 
ject. Not only does reason, justice and authority unite in 
nt^ing us to retrace our steps, bnt the organic law commands 
us to do BO, and the presence of ji^nl er^oms what the law 

7Mn), tlie interMt on the pnbUo debt wm $1,422,057,507, or (121,000,000 
per annnnit 

The nnivenal crj orer the land li for employment. When well em- 
ployed the people «re well clothed, well fed Mid well honied. The 
adjuatmeutot the fiscal qQeEUon—sor/oriTnfdaw, but for th« »uru«* — 
mnst he made era prosperity Ig aan. The recall from Europe uf oar 
gold bonds (hy sale of commoditlea, placing them at low Intereet) and aub- 
stitntlng greenbacke for national bank-notes, wonld remove grierons bnr- 
deus, proriding employment by Rtimiilating onr deprfSsed induatriea. 

Will President Bayea Inangarnte this jnat polloy, insuring general pros- 
perity and ipontatieons "resumption," or the par of paper with gold? 

The tme remedy for national relief from the enalarement of debt, with 
its burden of taxation, is the substitution of greenbacks for national 

The national bonks have received sinoe 1860 twenty-one milliona of 
dollaiB interest on bonds deposited with the GovemmenL 



t liave ventured this long letter id tlie firm belief, that 
the adoption of a permanent, nnfiuctnating national currency, 
u before stated, eqnal to tbe amount actnallj found in cir- 
cnlation at the dose of the war, and tkat amount should 
nener he moreased or diminished, onlj as per capita with the 
JDcreaee of the inhabitauts of our country— such a measure 
of all internal valnes, with a revenue tariff of specific duties 
to be obtained from the emalleat number of articles, tliat 
will give the amount needed for an economical government 
—such a national policy wonld introduce prosperity once 
more into the trade, commerce and finances of this country. 

NoTB. — Ej^cmsion versus Contraction.-~^\ie following 
statistics from the London EMTWmiat demonstrate the fact, 
that the expansion of French Government legal tenders lias 
kept pace with the accumulation of specie, and materially 
develops tlie home interests of that country : 

"Of legal tenders in April, lS6d, the circulation was 
214 millions dollars, and in April, 1876, 494 millions, being 
an increase in seven years of 280 millions, or 130 per 

Of specie and bullion in December, 1S69, the stock was 
247 millions dollars, and in N^ovember, 1876, 432 millions, 
or an increase in seven years of 185 millions, or 75 per 
cent. 1 

The striking prosperity of French industries under tlie 
above fiscal policy augurs strongly for an expansion equal to 
the amoant foimd in circulation at the close of the war, and 
against a contraction." 

Onr Government has, from its origin, n^lected to perform 
one of the most important duties, enjoined on it by the Con- 
stitution, where it says, that Congress shall have power, not 
only to coin money, bnt to regnlate the value thereof. This 
can be and should have been done by an Act of Congress to 
regnlate the value of money by fixing the amount, that can 
be I^^ly collected as interest for the use of money. 



When Bnch an Act lias been proTided to prevent extortion- 
ate demands for the nee or interest on money, and when the 
law has been repealed, that U now paralyzing the conntiy 
with the terrible fact, that some fifteen hundred millioDB of 
dollars, now dne from the people to the banks, wjtli all the 
other debts, that are to become dne in 1879, ore hy law made 
payable in goldy then the way will be opened for a restora- 
tion of confidence and a permanent financial relief. The law 
contracting the cnrrency is now taking from the people their 
legal money, costing the Government and the people nothing, 
and then converting this same currency into a national debt, 
for which the people are to be taxed for the next thir^ 
years. Jt should never he forgotten, thai the first sixty mil- 
lions of Treasury notes were issued and WfOde " receivaile in 
jKiyTnents of duties on imports a lawful money and a legal 

ITie fact that the sixty millions then issued did continue 
recevvdbU at the Treasury on a jpar with gold, when gold 
was selling at 285 in cu/rreney, this fact is proof poeOim, 
that had the Government made aU the greenbacks fiM legal 
tender, instead of sending thetn out partially demonetised 
and r^udiated, they would never ha/ve fallen below par. It 
was the partial demonetization and the corUrad,ion of the 
currency, that has so effectually destroyed confidence atid 
dried up the sources of both production and consumption. 
The peoj^ a/re d^tri/oed of their currency, which had for 
yea/rs formed the life Mood of the trade a/nd cominerce of our 

My efforts in all I have written, have been to call and 
fix the attention of the American people on those truths 
and principles, so grandly set forth and declared in the Pre- 
amble to the Constitution, formed for us by the Fathers 
and founders of a Gktvernment, intended to establish jus- 
tice as the true and only sure means, by which the general 
welfare of the American people can be substantially pro- 

Hoping and believing, that your beat efforts will be given 



to Becnre for onr behoved conntiy the bleseinge of a good 

I remain, yonrs, with great respect, 

Pbikb Coofeb. 

Niw TOBE, Augiwt e, 1877. 
His ExoELLENor C B. Hatsb, 

HoNOBED SiK — Althongh I have bat lately addressed yon 
an open letter on the sad state of the industrial and financial 
conditions of our common country, and the causes, that have 
brought it about ; yet the events, that have aince transpired, 
while they have given additional emphasis to that appeal, 
justify me in once more addressing yon on the same subject. 

Sorely, the peaceful expostulations and complaints of so 
many tbonsands of yoar fellow-citizens, going up from every 
part of this distressed country, not to speak of the violence 
and lawlessness, which this distress has occasioned, not only 
appeal to your humanity and patriotism, but call for the 
most earnest and instant action on the part of the Govern- 
ment, of which yon are the chief Executive. 

From yonr past patriotic lifo and action, and from your 
present wise and conciliating condnct In the political affaii-a 
of this country, we have every reason ^ hope a new and 
straight path of relief will be found for the manifest evils, 
under which this country is laboring. 

It is with this hope, and, at my advanced age, with no 
oUier motive than the welfare of our beloved country, that 
I onite with thousands of my fellow-citizens in calling your 
attention, and that of yonr political advisers, not only to the 
facts, which are obvious enough, but to tbe causes and the 
remedies, tliat ought to be considered in devising the best 
means of caring the present evils. The facts themselves are 
appalling to any patriotic heart. 

More than two hundred thousand men, witliin the last 
few weeks, have joined in " strikes " on the various railroad 
lines, the workshops and the mines of the country, on ac- 



count of fcrther reduction in thdr w/igra, already redaced 
to the living point. That eome of these etrikeB haTe been 
attended with lawless and nujostifiable yiolence, onlj shows 
the intensity of the evils complained of, and the despair of 
the safferers. For foor years past, since the " panic of 1873," 
millions of men and women, in this hitherto rich and proa- 
perouB country, have been thrown oat of employment, or 
living on precarious and inadequate wages, have felt embit- 
tered with a lot, in which neither economy nor indnatry, nor 
a cheerful willingneea to work hard, can bring any aUevia- 

Is it to be wondered at, that enforced idleness has made 
tramps of so many of our laboring population, or induced 
them to join the criminal and dangerous dasses 1 

During this same period, immigration into this country 
of the hardy and induetrions of all nations, who have hither- 
to bmlt up oar country, has, in a great meaanre, stopped, 
while thousands of artisans and mechanics, whom a prosper- 
oas country cannot spare, are emigrating to other conntries. 
Our manufactoriea are, many of them, closed, or running at 
a loss, or giving starvation prices to their operatives. Our 
merchants are demanding the reduction of their rents, dis- 
charging many of their employ^ and such as are in debt 
are fast going intt^wnkrupti^. The mining and railroad 
interests of the country, on which the income and the em- 
ployment of so many thousands depend, are fast snccnmb- 
iug to the gener^ failure in the finances of the country, so 
tliat their stocks have become depreciated or worthless, and 
their employes discharged or mutinous on account of re- 
duced wages. Keal estate has depreciated to less than half 
of what it wonld have brought four years ago ; much of it 
cannot be sold for any price, and mortgages of one-quarter 
its value, if foreclosed, swallow up the whole. The thriv- 
ing and enterprising farmer of the West, especially, feels 
tills rise in the valne of money, as compared with labor or 
property. With the hardy toil of years, he has opened and 
improved his farm, and the comparative small loan, which 



laid bat a light weight on the resonrcee of hifi land in pros- 
perons times, and with a sufficiency of money, is now threat- 
ening to swallow up the labor of his life I £ven the banks 
and the loaning infititutions, not being able to invest their 
money on " good Becurities," are embarraseed on both sides 
— the failore of their debtors, that throws so many of the 
Becurities on their hands, and makes bonds and mort- 
gages a "glnt in the market," acd the difficulty of making 
any new loans or inyestmonts, so that money " goes a beg- 
giog " at one and a half and two per cent. 1 

But these moneyed men are very patient with their troa- 
blea in this respect, for they know, that money is c^apreciat- 
ing in value aU the time / It may be now that loanable 
capital, on good security, is gathered largely in tlie moneyed 
centres, and much of it comparatively idle ; but this is no 
great hardship to those, who own the capital, in the presence 
of the fact, that money is ^ypreciaiitiff in its relative value, 
while waiting for active investment This is the secret wliy 
money seeks no active investment now, bat only good se- 
curity, or idleness. The country at lai^,it8 varioos indus- 
trial, enterprises and its labor are in want of money. Is 
there any fact more obvious than this % Kor is it the rich 
that want money, but the poor, as a necessary condition for 
eeUing the labor, which is their sole possession. Hence, to 
the poor man, cheap money is equivalent to chfea/p bread. 

Ever since 1865, this country has heten Joeing ite money. 

During the last ten years, thousands of mllliona of money 
have been swallowed in Q^vemment and railroad bonds and 
other securities, and in importations whidi, till lately, have 
far exceeded our exportations. It is a fact on record in the 
books of the United States Treasury, and by such authori- 
ties aa Spaulding in his " History of the Currency," Mr. 
Uaynard, Chairman of the Committee on Banking and Cur- 
reni^ in Congress, and Spinner, Assistant Secretary of the 
Treasury, that tliis country had, up to the year 1S65, issued 
in difiFerent forms of currency and treasury notes, cnrrent aa 
money among the people, $2,192,396,527 1 This vast sum 



h^, on the first of November, 1873, Bhmnk to $631,488,< 
t}T6 (eee Vonigreamonal liecord, March 31, 1874). 

In the year 1866, theje was in the Laads of the people, as 
a currency, $58 per head ; in 1875 the currency of all kinds 
was only a little more than |17 per head. 

Yon may call this currency a vast debt of the people, as 
it was incurred by the Ooveniment to save the life of the 
nation. Bnt it was money — eveiy doUar ofU. It was paid 
by the Government "for value received;" it was used by 
the people to pay their debts, to measure the value of their 
property, and, as your present Secretary of the Treaenry, 
Sherman, said in his seat in tlie Senate, " every citizen of 
the United States had conformed his business to the le^;al 
tender clanse." 

This corrency was also the creature of law, and tmder 
the entire control of the Government, but held in tmet for 
the benefit of the people, as are all its functions. Was it 
either just or humane to allow $1,100,000,000 of this cnr- 
rency, a lai^ part bearing no interest, bat paying labor, 
and fructifying every bueiness enterprise, to be absorbed 
into bonds in the space of eight yeaii, bearing a heavy inter- 
est, of which the bondholder bore no share 1 (See Spaold- 
ing's " History of the Currency.") The Government 
seemed to administer this vast currency, as if there was but 
one interest in the nation to be promoted, and that the profit 
of those, who desired to fund their money with the greaiett 
secui'ity, and to make money scarce and of high rate of 
interest t ITiia is the issue of the howr ; this is the hat&e of 
the people and for the people, in which the present admmis- 
ti-ation is called upon to dedare tohich side ii imH take. If 
this policy was nnjnst and muions at the first, it is nujost 
and ruinous now. If it has led as from prosperity into 
adversity, the only course is to retrace our st^, to stop 
this funding and give the people back their money, 
justly earned and hardly won by the toils, perils and aacri- 
licea of the people. Bnt as this vast and life-giving cnr- 
reney baa now gone irretrievably into bonds, and the bonds 



have gone Uif^lj abroad for importatioDS, that have still 
further depressed the iDdustry of our people hy bujring 
abroad what we coold and should hare manufactured at 
home, I would respectfullj sn^^eet the following policy for 
yoar admioistratioQ in the present emergency and for the 
futnre prosperity of the people of this country : 

Mrst. Let the Ooremment give immediate relief to im- 
employed labor, either through definite methods of help, 
given to settlers of unoccupied lands in the West, or by 
great and obrious public improvements, whicli are seen to be 
necessary to the prosperity and safety of the country — such 
aa a North-western and a Sonth-westem Railroad. Both 
these methods might be used, in view of the great distress, 
now, of the laboring classes. Tlie railroads will invite set- 
tlements, protect the country from Indian wars, more costly 
tban the railroads themselves, and give employment and the 
money, which will enable the poor man to settle the lands. 
Even State and municipal help might be evoked to this end 
of employing labor, by iaening currency, for the bonds of 
States and Municipalities, that could employ labor profitably 
in any local improvements. 

Secondly. Restore the silver coinage as a legal tender ; 
and while it swells the currency, it may be made as light as 
paper, for transportation, by " Bills of Exchange," or by a 
corrency that represents silver. The demonetization of sil- 
ver was a trick of the enemies of the poor man's cm-rency. 
The remonetization of silver will be a great relief now, in 
the depression of all bnsiness, if not the final and best 

Tkvrdly. Let ns adopt a permanent policy of public 
finance, that shall hereafter control both the volume and tlie 
value of the national currency, in the interest of tlie whole 
people, and not of a class. Let us have a national cun-ency 
fully honored by the Qovernment, and not as now, partially 
demonetized — the sole currencr^ and l^al tender of the 
country, taken for all duties and taxes, and inierconvertHiU 
with the bonds, at a tow but eqnitable rate of interest This 



will forever take the creatioQ of carrency and its extinc- 
tion ont of the handg of banks, and thoee interested in 
making it scarce and high, and put it completely under the 
control of law and the interests of the people. 

Fourthly. Let us promote and instruct indostry all over 
the land by founding, under National, State and municipal 
encouragement, Indcbtbial Schools of every kind, that can 
advance skiU im. labor. The rich need the literary and pix)- 
fessional school and collies, and they should have them ; 
hut the poor need the vadustrial school of art and ecienee ; 
and it should be made the daty of the local governments to 
provide a practical education for the mass of the people, as 
the best method of " guaranteeing to every State a republi- 
can form of govomment." 

Fifthly. The Government can do much toward promoting 
the industry of this people, and encouraging capital to enter 
apon works of manufacture, by a judicious tariff upon all 
importations, of which we have the raw material in abun- 
dance, and the labor ready to be employed in the produc- 
tion. It is no answer to this to say, " Buy where you can 
cheapest." I have said before, We cannot, as a nation, 
buy anything cheap, that leaves our own good raw materials 
unused and our own labor unemployed. 

Shsthly. Let us have a civil service as well organized and 
specific as the military or naval service. Let us take the 
civil service out of mere political partisanship, and put such 
appointments upon the ground of honesty, capacity and 
edncational fitness, so that no man can hold his office and 
receive its emoluments without a faithful discharge of the 
duties prescribed by the law. The noble and efficient re- 
cognition, that you have already given to this principle, in 
divorcing polities from the ordinary clerical and civil ser- 
vice of the country, entitles you to the thanks of every cit- 

By these methods of immediate relief and future admin- 
istration, we may pass safely, I tiiink, the great crisis 
through which our beloved country is now laboring. 



"The producing caoBe of all prosperity," sajs Daniel 
Webster, " is labor, labor, labor. . . . 

The Government was made to protect tltia indoBtry — to 
give it botli encouragement and security. To tliia very end, 
with this precise object in view, power was given to Con- 
greaa over the currency and over the money of the country." 

Though the influences, that ai-e now working against the 
pghts of labor and the true interests of a Bepublican Gov- 
erament, are insidious and concealed imder plausible reasons, 
yet the danger to our free institutiong now is no less than 
ia the inception of the Bebeltion, that shook our Bepublic to 
its centre. It is only another oligarchy, another enslaving 
power, that is asserting itself against the interests of the 
whole people. There is fast forming in this country an aris- 
tocracy of wealth — the worst form of aristocracy, that can 
curse the prosperity of any country. For such an aristocracy 
htu no couniri/ — " absenteeism," living abroad, while they 
draw their income from the country, is one of its common 
characteristics. Such an aristocracy is without soul and 
without patriotism. Let us save our country from this, its 
most pot«nt, and, as I hope, its last enemy. Let your fel- 
low-citizens beseech yon, Mr. President, to consider well 
what the crisis of the country demands of yon and your 
political advisers, not losing sight of the fact, that there are 
great wrongs, which must be righted in the administration of 
tiie finances of tliia country, for the last twelve years. Old 
ieeoes of North and South are, in a great measure, passing 
away, and that patriotism and far-sightedness which has so 
far gnided your administration, we hope and trost, will find 
a way to relieve the present distress of tlie country. There 
is no section of our common country, that needs so much the 
reviving influence of an abundant and a sound currency, as 
the South. The Southern people have the finest natural 
resources our country affords; every facility for manu- 
facture — the material, labor and water-power indefinite. 
They need only money, wisely distributed among its work- 
ing and enterprising population ; and it was well said, lately, 


134 oonr Aim fafeb cubbenct. 

by one of the Southern stateemen, that the " Gov&mmeni 
had impovenahed, diaoomJUed and crushed the South more 
by iUjmcmcial policy, since peace was declared, than by its 
eatns during the whole war oif Hebellion " ,' 

If the people can look for no relief from tfie present Gon- 
grees and Aduiinistratioa — if those, who now sway tha 
financial interests of the country, cannot see their great op- 
portunity — then new men most be chosen by the people 
whom they can trust to make laws and execute measures 
that "shaU secure the blessings of liberty to themselves and 
their posterity." 

Labob PEoapERiTr in Enqlaitd fkou 1797 to 1815. 
Kctraet from Mabtin WABREN'a Work on American Labor. 

Sir Arcliibald Alison, author of the History of Modem 
Europe, says: "The next eighteen years of the war, from 
1797 to 1815, were, as all the world knows, the most glori- 
ous, and taken as a whole, the most prosperous, which Great 
Britain had erer known. Ushered in by a combination of 
circumstances the most calamitous, both with reference to 
external security and internal industry, it terminated in a 
blaze of glory and flood of prosperity, which have never 
since the beginning of the world descended upon any nation. 
Prosperity universal and unheard of pervaded every part of 
tlie empire. Our colonial possessions encircled the Earth; 
the whole West India Islands had fallen into our hands; 
an empire of sixty millions of men in Hindoostan acknowl- 
edged our rule ; Java was added to our eastern possessions ; 
and tlie flag of France had disappeared from every station 
beyond the sea. Agriculture, commerce and manufactures 
at home had increased in an unparalleled ratio ; the landed 
proprietors were in afSuence ; wealth to an unheard of ex- 
tent had been created among the farmers ; the soil, daily in- 
creasing in fertility and breadth of cultivated lands, had 
become almost adequate to the maintenance of a rapidly in- 



creasing population ; onr exports, imports and tonnage had 
more than doubled since the war began." 

What caused this prosperity ) Exactly the same thing in 
kind that causes the present French prosperity. This eighteen 
years oi English prosperity commenced in 1797, when the 
Bank of England was authorized by the Govemmeut to sus- 
pend specie payment, and continued just so Jong as it was 
not insisted upon hy any party, that the bank should be re- 
quired to pay specie, and ceased immediately as soon as that 
requirement was seriously urged. The money of England 
during that eighteen years was irredeemable paper money; 
it was rag baby in its nature. The very kind of money, that 
the ministers of finance in our country tell UEf is a sore evil 
to have. Tme, like onr present greenback money, it was 
inferior to the French paper money, because it was not a 
foil legal tender for all debts in the coantry. Of course, 
then, it depreciated some in value as compared to gold, and 
did not have that full and complete beneficial effect, in dis- 
pensing its benefits to all interests and to everybody, as it 
otherwise would, and as tlie French money does. But like 
the French money in one respect, it was not redeemable in 
specie on demand, and hence it could be and was issued in 
qnautities for the most part to adapt itself to the necessities 
of labor and business. Take notice, American laborers, tliat 
this period of English prosperity lasted jnst the eighteen 
years of time, that the money of England was not disturbed 
by redeemability in specie, nor seriously threatened so to be, 
and not any longer. So that English experience and French 
experience as to what causes prosperity accord one with the 
other, and they both are to the effect, that prosperity comes 
at once, upon the liberation of the money or currency of the 
country from being, redeemed in specie, and then issued in 
quantities, snited to put the labor of the coantry all into 
active and profitable employment. 

And take notice, also, just what kind of prosperity that 
was. It was the prosperity of labor ; all honest, useful labor. 
It was " prosperity universal and unheard of," and it " per- 



vaded in every part of the empire." "Agricultnre, com- 
merce and raaDiifactnrea at home bad increased in an un- 
paralleled ratio." And take notice, American farmers, the 
lauded proprietors were in affluence, and wealth to an un- 
heard of extent had been created among the fanners. 

And I say this, also, that there was not in that English 
prosperity anything at all savoring of fiction, or wanting of 
Buhstantiality. It was bnilt on labor, and the labor stimu- 
lated by honeet principles of finance, that simply rewarded 
the laborer, inst^d of robbing him. If those principles had 
been foUowed up and perfected, and kept alive in the laws 
of the country, instead of being supplanted by fraud and 
fiction, as they were afterward that prosperity would have 
lasted to this day, and would last as much longer as the 
tme principles might be preserved. And so in our own 
country, we cannot only have tliat prosperity, but we can 
establish it upon principles, that shall make it enduring, and 
that is the business of the true men of this generation. 

Why was it that Just in that eighteen years of war Eng> 
land authorized her national banking institution to suspend 
specie payments and issne money in quantities, suited to the 
indnatrial and commercial wants and prosperity 1 It was, 
because Napoleon was then pTessing her by his militaiy 
power, and the very existence of the Government and na- 
tion itself required all the resources of the nation to be 
bronght into active use for its defence, suspending for the 
time being the avaricious gains of the monied nobility. As 
stated above by the historian, this eighteen years was 
" ushered in by a combination of circumstances the most ca' 
lamitous, both with reference to external security and inter- 
nal industry." Think of it. All this prosperity came, not 
by favored circumstances, but in spite of circumstancea, ex- 
ternal and internal, the most calamitous ; all simply through 
tlie power of honesty and truth, in the money of the coun- 

But in 1815, the war closed by the capture of Napoleon 
at Waterloo, The scourge of war now being removed, it 



Boema to have been thonght, that the conntry could endnre 
vithont entire deetrnction a ecoai^ far worse than the 
Wit; and the Sh/locka, with Sir Hobert Peel at their head, 
or aB an aseociate, began to ineist seriouBlj npon a, law for 
teamnption of specie payments. And then what took 

Let Thomas Donbleday, in hie Financial, Monetary, and 
BtatUtical History of England, tell what took place! He 
«tys: " Prices fell on a sudden to a rainons extent — banks 
broke — wages fell with prices of manufactures ; and before 
^ year 1816 had come to a close, panic, bankruptcy, riot 
tnd dieaftection had spread through the land. Vast bodies 
of Btarring and diacontended artisans now congregated to- 
gether and demanded reform of the Parliament. The dis- 
contents, as RBnal, the Covemment pnt down by an armed 
foroe. As the memorable first of May, 1823, drew near, 
the conntiy hankers, as well as tlie Bank of England, nat- 
ninlly prepared themselTes by a gradual narrowing of their 
circulation for the dreaded honr of gold and silver pay- 
ments on demand. . . . The distress, min, and bank- 
ruptcy, which now took place, were universal, affecting both 
the great interests of land and trade." 

Peel and his Shylock hackers pressed the matter of the 
qjede restimptioa law, and it was passed in 1819, requiring 
by its terme, specie payments to commence May 1, 1823 — 
fonr years. Between the years 1815 and 1825, inclnsive, by 
the specie resumption law, and by tlie loss of confidence, 
growing oot of its pendency, more than four-fifths of the 
land-owners of England lost their poseeseions. Tlie num- 
ber of land-owners was reduced from 160,000 to 80,000. 
The very farmers, who had aecumulated wealth to an un- 
heard of extent in the eighteen years of suspension, now 
became bankrupt and penniless. 

Wendell Phillips, in a letter to the New York legal Ten- 
der Clnb, dated August 23,1875, though slightly inaccurate 
in two or three historical dates and some other forms of ex- 
pression, draws a faithful sketch of this English resamption, 



as compared to onr own, now in progreae but not completed. 
The following is an extract of the letter : 

" History is repeating itself. England never knew n\ore 
proBperoiie ^'ears than from 1800 to 1820, during which she 
had neither gold nor wished to hare it, nor promised to pay 
gold to any one whatever. All that while-she extended and 
contracted her current^ without any regard whatever to 
gold. Her enormous trade and expenditures were all paper, 
resting on credit and nothing else. We had similar pros- 
perity during the war, and after on the same terms. In 
1820, England, listening to theorists, tried to put this new 
wine into old bottles, and dragged her business back to 
methods a centnty old — to specie. Bankruptcy, the very 
history of which makes the blood cold to-day, blighted the 
empire. It took half a generation 1» recover from the mis- 
take. No man can to-day begin to show, that such snfFering 
was necessary, that it achieved any good, or that it effected 
any change, which could not have been as well made with- 
out it." 

The object was not to have the papw currency redeemed 
in specie ; tliere was really no desire or expectation of that ; 
but simply that the paper money be driven from circnlation, 
by making this impossible ' requirement of specie payment 
, in respect to it, thus leaving but very little ciirrency in cir- 
culation of any kind, and forcing down prices of labor and 
property, real estate especially, to almost nothing, rendering 
debtors unable to pay their debts, that their estates might 
be bought in at forced sales, or voluntary to prevent the 
forced, at prices ruinous, and quite likely etill leaving them 
in debt and without means to pay. 

The scheme worked like a (^arm. By it nnder tlie forms 
and sanction of law, the property of the English people was 
gathered np in vast sweeping accumulations, and handed 
over to the nobility, and thus was the genius of the British 
society, its distinction of nobihty and vassalage, restored in- 

The specie resumption law of tins country, passed in Jan- 



naiy, 1875, is in Babatance and design a copy of the British 
law of 1819, above mentioned. Bear in mind the excnse is 
to redeem the paper currency in specie, the real object is to 
drive from cinndation the cnrrency of the country, reduce 
prices, and so rob the debtor class. 

Bat let us look at the matter. What will the national 
bank-notes be redeemable in, when the greenbacks are with- 
drawn and bnmed np f The bank-notes must be redeem- 
able in something, else they will be worthless, for they are 
not a legal tender for debt, as the greenback money is. At 
present the bank-notes are redeemable in legal tender green- 
backs, and that makes them good. Bat the greenbacks 
withdrawn and bnrned up, and then what { Why, the bank- 
notes must then be redeemable in specie of course, as the 
resumption law provides. And where will the banks get 
the specie to redeem with i Some of the strongest of them 
will be able to get it, and continue their bnsiness. Bat it 
eeema to db the bank-note circulation will be contracted 
instead of enlai^ed under the <^ration of this specie re- 
sumption law. Contraction has been the effect of it so far, 
and we have every reason to believe it will be more and 
more so np to the time of resumption. The requirement to 
redeem in specie causes this. That was the effect. in Eng- 
land, as shown in the foregoing extract from Doubleday's 

The contraction nnder our specie resumption law up to 
November 1, 1876, was $30,710,782 of national bank-notes, 
and $14,464,284 of greenbacks, besides $20,910,946 more of 
greenbacks deposited in the treasury of the United States 
for the retirement of national bank-notes, making a total 
contraction of the corrent^' of $66,086,962 op to the date 
mentioned, and the contraction and destroying of the green- 
back money are still going on. 

But when this contraction has gone on for a certain time, 
instead of a diffused and large credit pervading the country, 
we have all the loanable capital concentrated in the great 
money centres, and controlled by the banks, then expan- 



aion of credita will be the order of the day. Bank 
credit will be thrown out in anlimited quantity, in the shape 
of bank-ootea, ostensibly redeemable in specie, bnt really 
not ; but all secured as loans on the ■property of the bor- 
rower. Then the banks and the money lenders hare only 
to corUrcujt these loans, and the flecorities being suddenly 
thrown upon the market, sweeps the property of the many 
into the hands of the few. This is the game of all banking. 

We purpose not to be an alarmist, and believe we are not 
We think we have no motive or desire whatever to create 
misapprehension, groundless fear or unjust distmst of the 
integrity or capacity of those in authority. But, if this 
greenback money, constituting as it now does more than 
half of the cnrrency of the ooontry, be withdrawn from cir- 
culation by the first of January, 18T9, the time fixed for 
resumption, there will be no enlargement of the bank-note 
circulation to take its place, or at least a very inadequate 
one, and probably a contraction instead, and at that time 
there will be pi-eeipitated upon the people of this country a 
financial disaster and loss of estates, like unto and probably 
equal to that, which was brought nix>n the English people in 
1823, when more than fonr-fifths of tike land-owners of that 
country were robbed of their possessions. All our principal 
finance laws, T>a6Bed in the last eleven years, seem to us 
framed with a direct i-eference to a grand future crisis of 
that kind, to be brought about by contraction of the cnr- 
rency. We do not believe there has been a single annnal 
report of our Secretary of the Treaeniy in all tliat elevrai 
years, that did not contain one or more recommendations, 
equally monstrouB with that one just quoted from the last 
report, seeming to us to ignore the plainest dictates of com- 
mon reason, common justice, and practical experience, and 
aiming for a future crisis sncli as above mentioned. 

I now ask the reader to again peruse carefully the prog- 
ress of the English crisis from its beginning, in 1815, to its 
culmination, in 1823, the time of resumption, as given in 
the above extract from " Doubleday's History,** and compare 



therewith, as far as we have prc^ressed, oar own experience, 
embracing the last eleven years of our history, again inspect- 
ing withal the table of bankruptcies. It will be found, that 
we are travelling the a&me road exactly, and auless oar peo- 
ple demand a halt, or restrain the Glovenunent by popular 
demands, we are destined to the same end. The only dif- 
ference is, that the game here has to proceed slower and 
more caatioasly, more shifts and devices are needed, and 
more newspaper aid has to be employed here to befog the 
people, than was required in England ; because history throws 
more Ught on the snbject now than it did then, and because 
the people here have more to do in the eanse of GoveromeDt 
than they had in England ; and moreover, by reason of onr 
greater natural resources, oar country is able, without total 
and immediate ruin, to endure a greater amount of robbery. 
I do not believe there was ever sncii a horrid system of 
usury practised among men, as preys upon this country at 
this very time. 

The crisis proceeds here as it did in England, with in- 
creasing bankt^ptcy of business firms, throwing laborers 
more and more out of employment. According to reliable 
statistics, failnres in bankrnptey in this country have had a 
general increase for tho last eleven years, being nineteen 
times as mnch in 1876 as in 1865. And every increase of 
bankrnptey has been marked by an increase of pauperism, 
suffering, death from destitution, disaffection, political and 
governmental corruption, and a failing of the confidence of 
our own people in onr own republican institutions. 

Specie basis or specie payments should be something of 
great valne to cost so mndi suffering. What is it, therefore, 
and wliat is it for ? This specie basis, or specie payment, is 
a something written down in the hooks of British science, 
and irom thence copied into ours. Specie is a something, 
that a very few wealtliy men, of almost any country, can 
bay up and hold at will, sabstaatially the entire stock in 
that country, as is done now in the United States. This 
being done, ibea if there be no lav for any legal tender 


133 com Aia> PAPER OUBBBHCr. 

paper mon^ In the oonntiy, but all the money, in order to 
be good, mnfit be either specie or redeemable in specie, these 
few men will hold entire control of the mouej'' of the conn- 
tiy, and can control all business and prices, and virtnally 
own nearly everything in the country sooner or later, as al- 
ways is done, wliere this specie basis fraud exists. 

Again, this same specie is good to make watch cases, 
watch chains, and gold and silver dishes off, and to work into 
an innumerable variety of ornaments for persons, male and 
female, and otherwise to gratify the whims, vanity and 
pomp of the wealthy classes. And to what extent it may 
be required for this purpose in any one country depends 
upon the changes of fashion and the ability of men to in- 
dulge in it, either of which is unstable as the waves of the 
sea. Likewise in times of war, danger, or financial uncer- 
tainty, this specie is good to hoard np, and is hoarded by 
men, who are able, from motives of both security an<^ specu- 

And besides these things occurring within the country, 
the like casualties all over the world, together with the un- 
certainty of the yield of the mines, and the ever-varying 
laws of the different countries in monetizing and demone- 
tizing gold and silver and other materials, make the presence 
and availability of ^cie, either for money or the basis of 
currency, one of the most unreliable things in this unreliable 

Yet British science calls this moat fickle commodity the 
most reliable for a money basis. This policy will do for the 
British nobility as a most excellent fiction, by which to turn 
^stematically to themselves the earning of the British la- 
borers, as is constantly done in that country.. It may also 
do for American politicians or officerBeekers (who, as we are 
aware, are excusable, if they have no ideas of their own) to 
prate about, so as to please the money-dealers and get their 
money support- But an American farmer, who ia entitled 
to vote, and has a farm that he deeires to keep aitd not liave 
filched from him, and every other person identified with 



t^e labor interesta of the conntiy, ehould consnlt his own 
common reason and his practical observation of thiogs, and 
not lay aside either of these to he misled and enanared by 
British fiction and dap-trap. 

To know anything abont this subject of money, it is neces- 
sary to p&Dse right here and consider definitely what specie 
basis or specie payments mean. Most people think they do 
nnderstand it, and yet do not exactly. Yery many think 
that becanse we, the greenback men, oppose specie basis, 
we oppose specie money. This is fnrtherest possible from 
the truth. We do not object to specie money. The green- 
back principles, if thoroughly carried out, will make specie 
abundant in the eoantry. Nor do we very seriously object 
to having onr paper money promise to be redeemed in 
specie. The dependence on resumption in specie as 
an ezdnsive basis, so called — this is what we do ob- 
ject to most strenuously, and having the value of currency 
depend in the least degree upon its being so redeemed in 
specia That is, the paper currency, whedier so redeemed 
or not, should be a full legal tender for all debts throughout 
the country, the same as specie, so as to keep it par with 
specie in value. Owing to ^e fickle nature of specie there 
is, in fact, no such thing as specie basis for the currency of 
any commercisl nation. Specie basis means no basis at all, 
but the absolute power of a few men to decide in their own 
iotereet, how much currency the people shall have for 
business, or whether any at all or not, with power to change 
the amount to suit their own speculative purposes. 

To illustrate still more completely Ae real nature of this 
specie basis idea, take, for example, our own country, the 
United States. Now, any one year of prosperous business 
throughout this country would be attended always by two 
things : one is the activity of its money, passing from hand 
to hand, the other is growth. In other words, if we have a ■ 
single year of active, healthy business, we are ready the next 
year to do a still greater business. Business grows with ita 
growth. Growth of business recinires a corresponding 



growth in the qaantit; of money, jnet exactlj as a tro^ that 
grows vigoronalj one year by the nonrishment of the earth 
and air, received through the sap, requires a greater qoan- 
tity of that sap the next year to continue tlie growth and 
U^th of the tree. Hence we see in the Creator's order of 
things, as a tree grows hirger, its roots fibres, and foliage 
reach forth deeper and higher, and broader that they may 
gather and transmit the necessary increase of sap and nonrish- 
ment to the whole tree. Circnmscribe those roots and fibres, 
or otherwise withhold the necessary increase of sap, required 
by nature, and yon dwarf the tree or kiU it. 

Precisely so it is with nations. Prosperity, if we have 
any, is attended with growth, and a necessity for an increase 
of money. "Withhold the increase of money and yon will 
dwarf the nation, or kill it, and marder the inhabitants. 
Under a specie basis order of things what haa the supply 
or specie to do witli the wants of the nation for more or loss 
money. Is it anywhere revealed to us, that mines and job- 
bers will always give forth a snpply just snited to the busi- 
ness necessities ? Nay, verily. But in proportion as you 
attempt to actually base the currency on specie will the job- 
bers grasp tlie specie and keep it out of legitimate business. 
Thus you limit the money of the coantiy by an abritary, 
irresponsible power, that feels no sympathy with the money 
wants of the nation. The theory, therefore, of basing the 
money of a country upon specie, the most liable of all ma- 
terials to he snatched away for luxury, vanity and specula- 
tion, and all the more sure to be so snatched away as the 
more we attempt actually to base money apon it, is a 
diabolical idea, a wholesale, murderous conception, and 
contrary to the Creator's order of things. To say that such 
materials, gold or silver, or both t«^ther, constitute the 
best basis for currency, is as contrary to the truth as to say 
that a brothel is the best place to preserve chastity, or that 
the taking of strong drink is the best way to keep temperate, 
or that a deep-sounding bed of quicksand is tlie best fomi- 
dation for a house. 



England herself does not in realty base her cnrrencj on 
specie, nor could she without bringing all business to & dead 
stop in a very short time. She just mixes enough of this 
specie basis fiction in her finances to continually or perio- 
dically divest the laboring classes of their earnings for the 
benefit of the nobility. But for the real basis of value to 
her currency, she makes the notes of the Bank of England, 
as well as her coins, a full legal tender for the payment of 
debts, bnt not the notes of the other banks. From this we 
see, that even in England specie basis is a mere fiction, a 
false pretence. 

We have already seen ' what a terrible siege of robbery, 
desdtntion, suffering and death the Gkivenunent of England 
made its people pass through from 1815 to 1823 to reach 
specie basis, or specie payments, the pretended haven of 
rest and happiness. And what was the result ? The fol- 
lowing statement being condensed from an article in the St. 
Louis Oommercitd of March 23, 1876, shows what that 
specie payment bliss amounted to when obtained ; 

"At the time of Napoleon's defeat at Waterloo, in 1815, 
the Bank of England and the country banks had an issue of 
$270,000,000. The cry of resumption being raised, the 
banks set about a sharp contraction of both their issues and 
their discounts. Between 1815 and 1823, they reduced the 
volume of their issue 33 per cent. 

"The crissis was at its height from the 12th to the 17th 
of December, 1825. Up to the night of the 14di the Bank 
of England had restricted its issues ; but at that time, be- 
coming sensible of its error, it resolved to make common 
cause with the country, and issued circulating notes to the 
amount of $25,000,000. This policy was crowned with the 
most complete success. The panic was stayed almost in- 
stantly. Credit was revived, and a needless and protracted 
period of suffering was averted. This remedy consisted 
in a profose issue of irredeemable paper money to the 
amount of $25,000,000." 

Similar hot less disastrous panics happened in 1833 and 


■ J 


1839, and from then to 1843 general commercial Btag:iiatioti 
prevailed tbroughout England. 

In 1844, Peel's restriction act was passed by Parliament, 
forbidding the bank to issue beyond 14,000,000 pounds ster- 
ling on the Government stocks, except she has the gold in 
her vaults, pound for pound. 

Three ycai'S after this act was passed, in 1847, the next 
panic ensued. The extreme pressure b^an September 23d 
and continued until October 23d, when the terrible game 
was played out. The Queen's Oovemment ordering th6 act 
suspended and the currency expanded, two millions of dol- 
lars, with the assurance, that plenty more could be had, 
cured this panic instanter. 

In 1857 tlie most unexpected &nd diBastrons crisis &ey 
had ever experienced, swept across to them from onr shores. 
To stop this panic the bank act was suspendsd again, and 
the currency — paper money — was expanded nearly $34,000,- 
000, in excess of the limit, which then stood at nearly 15,- 
000,000 pounds, 

In 1866 they had it again. The Chancellor of the Ex- 
cheqner said the excitement was without parallel. On the 
evening of this black Friday, the niinistiy advised the sus- 
pension of the bank act, which was done the next morning, 
and in the coarse of five days $60,000,000 of paper money 
isaned to the entire relief of businesB and restoration of 

From the above it will be seen what a beaatifnl thing this 
forced specie payment was, when reached through the horri- 
ble robbery of tlie English people in 1823. After it was 
reached it was maintained with increasing suffering and mis- 
ery for two years and seven months, and then December 17, 
1825, a suspension had to take place, and $25,000,000 c^ ii^ 
redeemable paper money had to be issued to stay the wretch- 
edness. And again another author, Hon. Isaac Buchanan, 
says : " England seems to the world to have survived the 
process of a return to specie payment, «lthough how she 
has done so, if gone into in detail, would be the saddest and 



most harrowing record of baman enfFering. ... At 
the end of thirty years (in 1839) the revenue, or in other 
words the property of the country, got fairly broken down, 
ander the inBidious operations of the English money sys- 
tem." Further the honorable gentleman says that, in the 
1847 panic, thousands died of starvatioD in the cellars of 
the manufacturing and seaport towns of Great Britain. 

Such are the effects of specie basis, or specie payments, 
so called, a thing that the English Government pretended to 
think of such great value and bo desirable that, in order 
to reach it, slie draped her people from a condition of 
" prosperity nniversal and then unheard of," through eight 
years of nnheard-of bankruptcy, starvation and misery, and 
Uien, when reached, the result was a continuation of the 
same horrors, until relieved again in two years and seven 
months by a temporary return to suspension of specie pay- 
mente and the issue of irredeemable paper money. And 
then again, after twenty years more of miserable existence 
on the part of the labor of the country, we find the labor- 
era dying by thousands of starvation, in the cellars of the 
mfmufacturing and seaport towns. And still these scenes 
have been followed by successive horrors of a similar kind 
at intervals ever since, relieved in every instance by a re~ 
tvfn to suspetmon and an issue ofirredeemablepaper money. 

And still further, as late as 1875, we find tlie Chamber 
of Commerce of the British kingdom unanimously adopted 
a resolntion prajang the ChanceJlor of Exchequer to ap- 
point a commission to inquire, amongst other things, " into 
the constitution and actual management of the Bank of 
France, as compared with the constitution and actual man- 
agement of the Bank of England ; as to the points of dif- 
ference in the constitution and actual management of thooe 
banks respectively, to which may be attributed the crisis 
and panics, which occur periodically in the English money 
market, and do TUii occur in the French money ma/rket at aiU" 

Now, it is to be home in mind, that there has been no 
specie payments in France since 1870, or at least no law yet 



in force reqniring it; and j-et the paper mon^ of that 
conntry, unlike that of England, is all a foil legal tender^ 
and all the time substantially par with gold. This is the 
one esaential point of difference between the two Bjstems of 
money of those two countries, the French paper cnrrency, 
or money, is a full legal tender for the payment of all debts, 
public and private, within the realm, and can, therefore, 
isene cootinnally, and does iaaae, in sufficient quantities for 
the business of the country, without any depreciation of 
TAla& Whilst in England, the bills of none of the banks, 
except the Bank of England, are a general legal tender for 
debt, but depend for their value on being redeemed in 
specie, or in t^e Sank of England bills ; whilst the bills of 
the Bank of England, although a legal tender, are limited 
osnally to such amount ss can be redeemed in specie. That 
is, in short, the English paper money is, to some extent at 
least, specie basis money, whilst that of France is irredeem- 
able, rag-baby stuff, essentially such as England had in time 
of her great prosperity, and yet such as the prerailing au- 
thorities of this country and England call a permcione evil, 
but which the commercial or mercantile interests of Eng- 
land are longing to have established in opposition to the 
specie basis fiction of the money craft of that countiy. 

Note, — The foreign balance of trade, in our favor at pres- 
ent, is, in this instance, not the result of prosperity of home, 
but of lack of employment and poverty among our people. 
Our bankruptcies and bankrupt sales, being of greater num- 
ber than any former year, and laborers more unemployed 
than ever, would seem to indicate, that we have not been 
prodncing more, but have l>een selling abroad cheap, and 
buying less from abroad, because of increased poverty 
among laborers. That is, we sold cheap abroad, because our 
own people were too much unemployed and poor to buy and 
use what were to them the necessaries of life and of busi- 
ness. And our own factories, to a very large extent, are un- 
able to be run at all, only because, having changed hands, 
the presrait owners got them almost for nothing, and are 



able to get work-hands on the Bame scale of prices. What a 
triumph is this of governmental political economy ( The 
real test of prosperity is, whether or not labor baa been em- 
ployed and well paid. And labor was never so much onem- 
ployed, and never bo poorly paid in any one previous year 
as in 1876, showing a constant decline in our indostrial 
and financial condition, despite of constant prediction to the 
contrary by oar Goveiiiment functionaries and their Shyloek 

And, furthermore, the withdrawal of the gieenback 
money from circulation, as recommended by our Secretary 
of the Treasury and President Grant, also, will itself bring 
greatly increased prostration of labor and business, and turn- 
the flow of specie away from us, provided we shall then have 
any to flow away. 

When Mr. Chase was Secretary of tlie Treasury, in time 
of the war, and before the commencement of this eleven 
years of decline, he desii'ed authority from Congress to re- 
ceive deposits of money in the Treasury from our people, 
payable back on ten days' notice in onr own lawful^ paper 
money, with interest at Ave per cent. This would have been 
on the like principle of interoonvertible bond, now urged by 
the greenback advocates. Had tlie plan of Mr. Chase been 
carried ont, it would have enabled our Government to obtain 
constant credit among our own bnsiness men to the amount 
of several hundred millions of dollars, much to the benefit 
of the men themselves, and the saving of gold bonds being 
issued to foreigners. But Congress was full of bankers, as 
it always is, and they wanted these private deposits to bank 
on themselves ; for which reason tlie Secretary was permit- 
ted to receive only one hundred millions in this way, which 
was eagerly deposited- 

One Secretary of the Treasniy nnder Frosident Grant's 
administration, by long-continued effort, funded five hundred 
millions of our national debt in gold bonds and sold them in 
the foreign market, when, had our people been provided 
with legal tender paper money, so as to have kept our labor 


140 cout aitd papsb ottbkenct. 

employed at home, after the French nuuiner, we could have 
paid off the whole five hundred millions in lees time than 
the Setoetaiy was fanding it. The policy seems to be to 
foster gold debts abroad and prostration of the indoetries at 
home ; becaose this double fostering tends to increase our 
debts, public and private, and especially as we ai-e going to 
base our currency all on specie, we must have these foreign 
debts to take the specie away from ns in the shape of interest, 
then we will be without specie, without money basis, with- 
out money of course, and without price for anything ; then 
will we be in good condition for our merciful British nobility 
benefactors, and their generous coadjutors on these shores, 
to take ns, with this little heritage of onrs, into their kind 
care and keeping, both for ownership and goveniment, civil 
and military. Tlien we shall have nothing to do but to hew 
their wood, draw their water, cultivate their soil, and fight 
such battles as they see fit, for their own glory and amuse- 
ment, to set in array for us. 

The demonetizing of silver, as was done by act of Con*' 
grese of February 12, 1873, is a part of this same scheme, 
taken in connection with issuing of foreign gold bonds, to 
get the country destitute of specie, and in that condition 
force specie payments, and thereby create a sweeping trans- 
fer of the people's property to a moneyed few, in the same 
manner as was done in England, and to establish the same 
condition of things here as there, to wit ; a noble few to own 
the country and rule it, and a vassalage to perform the work. 
If this is the destiny intended for us by the founders of 
oar Government, I Iiave labored under a great mistake all 
my life. 

Note. — In place of over-producing, we have imported, in 
the last ten years, over one thousand million dollars, ($1,000,- 
000,000) in excess of what we are able to pay by sales 
of exports, proving positively, that over-importation is one 
cause of our financial troubles, and under-production to be 
the real cause, instead of over-industry. These "balances" 
must have been paid by sending our bonds abroad, thus 



alienating odt national debt, and having to pa; tlio interest 

To rednce onr imports two htmdred millions annnally is 
giving onr laboring and prodncing classes annnally two hun- 
dred million dollars of additional emptoymentB. This can 
easily be done by means of proper ia/riff law, -without cost, 
and without borrowing. 

A lat^ increase of duties on foreign industries of onr own 
kind, is no increase of taxes upon onr own people, but the 
reverse, being an increase of wealth to them, as onr Gov- 
ernment requires only a certain amount of revenue for its 
Bupport, which is as lai^ under low as under protective du- 
ties. The difference and gain to onr people is the increase 
of employment and gold, corresponding with the reduction 
made in the amount and gold cost of onr imports. 

The unparalleled prosperity of France, fresh from her 
disastrous war, can only be attributed to her wise protective 
policy, which results in having annually a balance of trade 
'of over one hundred millions in her favor. 

I favor a free list and low duties for all necessary pro- 
ductions imported, which we ourselves do not produce and 

A tariff for revenue, and not for the protection of Amer- 
ican industries, wonld quickly cause our great Hepublic to be 
reduced to the level of European conntries — for working- 
men, a country to migrate from to seek elsewhere work and 
a living. 

There are two ways to renew specie payments. One is by 
contracting and destroying our present and only money and 
continue low duties, and leave all in poverty, so that event- 
ually we cannot import for the want of fnnds, which would 
necessarily largely reduce imports and give us the balance of 
trade. The other way is a large increase of duties, which 
would cause a like large reduction of imports, and cause a 
large demand for American employments and productions at 
home, to supply the reduction made in imports. 

Our Congress should make our paper currency as good as 


143 oonr Ain> pjiper ccitBETrcT. 

gold, a 1^^ tender for import duties, and At the same time 
Ifti^y increoBe the duties, to cover the loss in the difference 
<ef valne in gold and currency, and to largely redaee imports 
below trade exports. 

Whenever oar nation's annnal exports (exclnsive of gold 
debt payments sent abroad) will not fully meet and pay all 
for^n demands, both for pnrchased imports, debt and in- 
terest annually due abroad, then we should increase duties 
to retrench and economize onr nation's foreign extravagance 
in parcfaftBing imports. Then our country could not be im- 
poveriehed as now, either of its own employments or its own 

When either of the real prodncere of our conntry's weal^ 
mann&ctoters, miners, or farmers, are impoverished by 
foreign competition, then all are made to suffer ; because each 
one's productions add to the one total production of our 

There is only one quick way to possess an abnndance of 
specie, and that is this way, which is a veiy old one — Bo 
not spend so mnch specie with other nations for foreign pro- 
ductions. Manufacture and prodnce more for ourselves. 
This will give our people more specie and more employ- 
ment and wealth. A high tariff alone will do this. 

The protectionists of foreign industries in Congress are 
easily known. They are always in favor of tilxiug heavily 
American productions three hundred per cent., and would 
tax tea and coffee, which our poor people must have end 
should not be taxed ; because it will not increase our employ- 
ments, as duties on foreign industries would do. 

Our American people cannot support all other nations' in- 
dustries and onr own besides, as low duties now cause us to 
do. A tariff law for American industries alone would dis- 
solve this ruinous and unnatural' division of our market, as 
was found necessary to do after the bankruptcies of 1837 
and 1857, to our country's immediate relief from depres- 
sion of business. 



Addbbbs to the New Yobe Fbesb Club, 
Decehbeb 12, 1878. 

Mr. PresiderU and Gentlemen: It is now more th&n 
twenty years unce I cat from a newspaper a statement, that 
made a deep impreeeion on my mind.- 

The writer in a few words proclaimed a fact of unmeas- 
ured importance to onr coontry and the world. He said 
that " knowledge, economy, and labor are the Bhining virtaeB 
of dvilized man." 

A man withoat knowledge is a helpleea animal ; and with- 
out science he is a straying wanderer. 

Science, my friends, presents to the world a rerelation of 
laws, designed in infinite 'wisdom for the use and elevation 
of mankind. 

They are laws that have, as the poet says, " connected in 
this, oar world, onr greatest yirtne with onr greatest bliss ;" 
and have made " onr own bright prospect to be blest, onr 
strongest motive to assist the rest." 

Science, my friends, is the knowledge of laws aduaHy 
demonstrated by ihe experience of mankind. 

The knowledge and application of science, when rightly 
md wisely nnderstood and applied to all the useful and 
necessary porposes of life, will enable man to unlock the 
deep mysteries of creation, and draw from its silent depths, 
" all that is good for food, and pleasant to the eye, and cal- 
enlated to make ns wise. 

When we as a people become wise enongh to make all 
laws in accord with scientific principles, they will then be- 
come BO clear, plain and positive, that no man can long hold 
office and receive its emolaments, without a faithful per- 
formance of those dnties required by the law. 

The true object of all good Government mnst be forever 



tlie promotioii of human welfare. This will nerer be more 
grandlj set forth and described than it now is in the pte- 
amble to the CoostitntioD of these United States. 

There we find, that the tme object intended by the framera 
of the Constitntion was dearly and fuUj expressed. They 
declared that " We, the people of these United States, in or- 
der to form a -aioKjp&fect union, establish justice, msaie 
domestic tranqnillity, provide for the common defense, pro- 
mote the general welfare, and secnre the blessings of liberty 
to oorselves and onr posterity, do ordain this Constitution 
for the people of these United States." 

They then and there declared that "the Congress shall 
have power to make all laws which shall be necessary and 
proper for carrying into execution the foregoing powei^ 
and all other powers vested by this Constitntion in the Gov- 
ernment of these United States, or any department or 
officer thereof." 

This Constitution hoMs every officer bound by his oath 
of office to perform his every act, as intending to establish 
jostice and promote the general welfare. 

Onr Independent Party holds it to be a fact, that our Gov- 
emmmt is noic, and ever has ieen hound by an act of justice 
to the American people to coin money and regulate the valne 
thereof, and also " to regulate commerce with foreign na- 
tions and among the several States." 

It was made the du^ of Congress to receive in payment 
for all taxes, duties and debts, all the various forms of paper 
money, that have been issued for what was used and con- 
sumed in the prosecution of the war. The American people 
are coming to know, that every dollar, paid ont by the (Gov- 
ernment in l^al money for value received, has thereby 
become the people's money as efFectnally as it would be, if 
every dollar had been paid them in gold. 

For a Gtovemmeut to withdraw from the trade of a coun- 
try snch a currency, which the people had paid for and 
owned as honestly as they owned their land or the clothes 
on their backs. It had become by its use the ^untry's cur- 



rency, that wae giving its benefits withont costing the people 
or the Govenunent anything hnt the printing and the paper 
on which it was made. This mnch abused paper money 
had BCtnally purchased and paid for all the labor and ma: 
teriala, that were conaumed in our struma for the nation's life. 
Such a cnrrency should have been r^arded by Congress, at 
the dose of the war, as a treasure of more value than all the 
gold mines, that hare ever been discovered in oar country. 

It was a currency, that had not only saved the nation's 
life, but it had demonstrated a principle of incalculable value 
to our country and the world. 

It had proved, that Solon was right in saying, that a cur- 
rency should be that, which is most valuable to the State, 
and of no value for any other purpose, exactly like our 

Our cnrrency had demonstrated the fact, that paper 
money with the stamp of the Government upon it, promis- 
ing to reeewe ii in payTneni for all forms of taxes, duties 
and debts, and interconvertible with the bond of the Gk>v- 
emment at a low, hut equitable rate of interest, would be the 
most convenient currency, that the world had ever seen. 

Snch a currency should have been limited to the amount 
of the people's money actually found in circulation at the 
dose of the war, as that was the price of the ^Ration's life. 
That amount of 1^^ money, having been wrongfully taken 
from the people by allowing war taxes to continue, after the 
war bad come to an end, should now be reissued and used 
in the purchase and the extmguishment of all the bonds, now 
doe and held by the Government as a security for the money 
issued by the National Banks. 

All banking would then be done with a Kational money, 
r^reaenting M« whde pr<^>eHy of the American people. 

The amount of paper money, so found in circulation as a 
cnrrency at the close of the war, should never be increaeed 
or diminiaked, only aa jper capita with the increase of the 
inhabitants of the country. 

One National money would Himiniab the chance c^ loss 



b; oonnterfeit money in the proportion ae one woold bear to 
the whole number of National Bemht. Instead, the Ns- 
tional Banke present more than 2,000 sets of pictnres to 
hecome acquainted with, we ahoald then have but one Na- 
tional moneji'that all would soon leam to know at eight, 
and that such a cnrrency woold become an ever-strengthen- 
ing bond of National union. 

Sach a currency, made as secure as the embodied wealUi 
and power of a nation can make it, would give a stabihty 
and security to the operations of trade and commerce ; and 
would more effectually secure the reward of labor to those, 
who earn it than any other form of currency ever before in- 

The Constitution has declared that " the Congreas shall 
have pwwer to lay and collect taxes, duties, imposts, and ex- 
cises, to provide for the common defense and the general 
welfare of these United States." 

The power of Congreea is ample to restore to the people 
their money, that liad been wrongfully taken fi-om tbem by 
war taxes ; and then, tliis same money has been converted 
into a national debt. More than one thousand four hundred 
millions of dollars has been wrung from the toiling masses 
to pay the interest on a enrrency, that had belonged to the 
people — a currency President Grant declared was the best 
currency, that tlie country had ever possessed ; and that 
there was no more in circulation than was needed for the 
darkest period of the year. The present Secretary of Uie 
Treasnry has said, that the people's currency had been so 
long used " that every citizen of the United States had con- 
formed his business to the legal tender clause, of the law 
regulating the currency of the eonntry." 

This same Secretarj- declared, that the man, who would re- 
fuse to receive the same kind of money, that he had paid 
out, would be a repudiator and extortioner. lie also de- 
clared when a Senator, that to take from the people such 
a enrrency " would be an act of folly without an example 
in ancient and modem times." 



Peter Cooper — Hia Eeply to Cashieb Willums. 
{From Ou AVmnp Evening Po^, Oeteber 19, 1678.) 

Tha reply of Peter Cooper to the errora, contained in 
Gaahier C. P. Williams' commanication, -was pnblished in 
last evening'B journal. It is sliort and conclueive, and, in a 
few veil tnmed paragraphB, entirely dispoBes of the cruditiee 
of the Cashier. Mr. Williams has an idea, that nothing but 
redeeming paper money in gold can ever make it as valuable 
as gold. ilfr. Cooper thus disposes of this illogical con- 
elusion : 

" If England and France were to-morrow to demonetize 
gold and silver, and make tlieir treasury notes the excluBivo 
iegsl tender of their respective realms, they would imme- 
diately be at a premium over gold. Venice practically de- 
monetized gold and silver in large transactions, her paper 
vaa acceptel as legal tender, and was at a premium over 
gold for several centuries ; sometimes as much as thirty per 
cent, premium, so that a law was actually passed, prohibiting 
the charge of a higher premium than twenty per cent." 

What says Cashier Williams to this t Mr. Cooper is op- 
posed to resumption in January. We give his reasons : 

"I£ we resume on January first next, it will be only on 
Boffrance by the foreigner, who, nnquestionably, has the 
ability, if he shall choose to exercise it, to drain every dol- 
lar of gold from the Treasury, which Mr. Sherman has 
collected to begin resumption." 

Cashier Williams is opposed to the substitution of green- 
backs for bank notes. Mr. Cooper is not We quote Mr. 

"The Bubatitntion of greenbacks for Kational bank notes, 
will make a uniform currency of money. A greenback legal 
tender is to the full as much real money as a gold legal 
tender, the only difference being, that as many nations 
make gold a legal tender, there is more demand for it, than 
for paper legal tenders, which have the sovereign 'stamp of 
only one Government. 



The snbetitntion of greenbacks for National baok notes, 
would have the bonnty now paid to banks, which, being in- 
vested ae a sinking fond, would in le^ than thirty years pay 
off the whole debt of the cooutrj." 

Opbk Lbttbk to Hon. John Shebuan, Seobftabt op ths 

Mr Deab Sib : Since I had Ae honor of yonr call at my 
house, and since the letter I sent you and the receipt of 
your reply, I have reflected seriously on the few minutes' 
convereation I had with you on that occasion, and on the 
acts of Government since that time. 

I hope yon will recollect how earnestly I endeavored to 
show you, that the Constitution has made it the first and 
most important duty of Congress to take and hold the entire 
control of aU, thai should ever ha/oe been aUowed to ciroulate 
ae the motiey, toeighis and measures of the nation. 

In all that I have written, I have labored to make plain 
the fact, that the establishment of justice, with the making of 
the necessary and proper l8W% were the most important duties 
er^oinedon Congress hy the Constitution of the United States. 

I believe I have shown, that nearly all the financial laws, 
that have been passed during and since our last war, have 
been passed nnder the advice and in the interest of a class 
of men, who have been allowed to control the moneyed in- 
terests of our own and other countries. 

The worst of these laws were passed in direct opposition 
to yom" own earnest and eloquent declarations, made by yon 
in 1869 in the Senate of the United States. Yon there and 
then warned the country in the most emphatic language, 
showing that a national policy, designed to contract the cir- 
culating medium, would cause gold to appreciate in value, 
as it has since done, so that gold wilt now purchase double 
the amennt of real estate, that the same amount of gold 
would have purchased four years ago. 



Too were right, when joa decl&red, " that every citizen 
of the United States had conformed hia baeiness to the legal 
tender danse of the law " for the regulation of the carrency. 

You were also right, in 1869, when yoa gave to Congress 
that most timely warning against any attempt to shrink and 
contract the volnme of a legal money, which the GoTem- 
ment had been compelled to issne, as the only means for the 
nation's salvation. 

At that time yon declai*ed, in langoage never to be forgot^ 
ten, that an act of Government, intended to contract the cmv 
rency of the conntiy, would paralyze all industries, as it has 
done. Yon made it plain, that the purchasing power of 
gold wonld increase in the same proportion. The con- 
traction has actually shmnk the value of real estate to a con- 
dition, where it cannot be sold, or mortgages obtained on it 
for more than half the amount, that the same property 
wonld have brought four years ago. 

Those cruel financial acts of the Gkiverament have cost 
the nation thousands of millions of dollars, and have brought 
wretchedness and min to the homes of millions of the Ame- 
rican people, proving what you said in the Senate in 1869 
to be true. You then declared, that snch a policy " would 
be an act of folly without example in ancient or modem 

I here quote from my last published appeal in behalf of 
^ose suffering millions, whose lawful money and property 
have been wrongfully taken from them by a conrse of legis- 
lation in direct violation of the first and most important 
requirement of the Constitution of our country. That 
Constitution, as I have said, covers in a few words the whole 
of the nation's wants. 

It must never be forgotten, that there is no effect in 
oatore without a cause equal to its production. 

In view of this fact, I have found myself compelled, by 
an inextingnishable desire, to do all in my power to call and 
fix tlie attention of the American people on a cause, that 
■h&B actually brought upon a great nation all those dire cala- 



mities, so admirably fotetold by yon in yonr speech, made 
in the Senate, in 1869. 

The American people have come to know, that onr conn- 
try has been Buhjeeted to a cruel national financial policy — a 
policy, which has (as I have said) converted the people's 
money, that was actually found circulating as a national cnr- 
reifcy at the close of the war, without coet to either the Qov- 
emment or the people, mto a Na^anal D^t. 

Yonr speech in the Senate was intended to show, that a 
nation^s currency could not be contracted without bringing 
ruin on the debtors and on the laboring classes throaghont 
our conntry. 

We may well ask what will the people do, when they come 
to realize the fact, that their money has, not only been wrong- 
fully taken from them as a circulating medium, but has been 
converted into a national debt, and that debt has been nn- 
justly released from bearing any part of the burdens of the 
State or National taxation. 

To show the ruin, that the contraction jx^iqf wonld bring 
on the aouutry, yon declared in the Senate " that every citi- 
zen of the United States had conformed his business to the 
legal tender clanse of the law," regulating the cnrrency of 
the countiy. 

tn my late appeal to all l^slators and religions teachers, 
I have demonstrated a fact, which cannot be disproved, viz.: 
that all the legal money, paid ont by the G-ovemment for 
labor and property during the war, was beyond all contro- 
versy, the people's money.. To establish Justice, this money 
must be given back to them in Uie pnrchase of all the out- 
standing interest-bearing bonds of the Gtovemment 

By this plan a partial jnstice can be established, and the 
general welfare of the nation ean be mtrely and effee6uaUy 

This plan will return to all the original holders of Gov- 
ernment bonds, nearly double the amount in the same kind 
of legal money, that was originally pud for the bonds at the 
time they were first issued. 



The holdere of tbeae bondB shonld not compkin, after 
having been so kindly treated by a QoverDiuent, that has 
altered the laws four timea on their urgent Bolicitation, and 
on a most ridicnlous pretence, namely, that ench alterations 
in the laws were necessary to Btrengthen the credit of a na- 
tion, that had just conquered one of the greatest rebellions 
ever known. 

All that is now, or ever has been needed to Becnre a con- 
tinued prosperity, toaa and is a naUonal currency, madeper- 
manently reoeivcMefor M forms oftaaea, duties and debts, 
public and private. 

It must be just such a money aa Secretaiy Chase declared 
our greenbacks to be. He said a " greenback is simply the 
oedit of the American people, put Id the form of money 
for circulation among the people, whose whole property is 
represented in its nse. When I was Secretary of the Treas- 
ury, Uie question arose how should the soldiers in field and 
the sailors in ships be fed. ... I fonnd, that the banks 
of the country had suspended specie payment. What was 
I to do i The banks wanted me to ttorrow their credit, or 
pay interest on tlieir credit. They did not pay gold or pro- 
pose to pay any themselves, but wanted me to buy their 
notes. I said ; ' Xo, gentlemen I I will take the credit of 
the people and cut it up into little bits of paper.* " This is 
the true idea of the greenback. It is the credit and the prop- 
erty of the American people, made to serve the purposes of 
money. It was that money that saved the nation's life, 
when gold and sQver had entirely failed to meet the wants 
of the Nation. 

Our paper money did all tliis, notwithstanding a part of 
its porc^iasing power had been repudiated by an act of Qov- 

This money can be made an ever strengthening bond of 
national union, by making the people's money, as found, the 
permanent nnflnctnating measnre of all values, and ^lever to 
he increased onXy wiih the incretae of the mhaHtants /four 



Such ft cnrrency can be made ae uniform in its pnrcbaemg 
power as tho yard, tlie pound, or the bnehel meaBure. 

The CoDBtitution of our country has also declared, that 
Congress shaU fuwepcwer " io make aU laws, which shall he 
necessary and proper for carrying into execntion the fore- 
going powers, vested by this Constitntion in the Govpm- 
nient of the United States, or^ any department of office 

The Declaration of Independence expressly says, that it 
wae to " secure these rights tliat Grovernments are inatitiited 
among men " avd that " whenever any form of Qovemment 
becomes deatnietive of these ends it is the right of the peo- 
ple to alter or abolish it, and to institute a new Government, 
laying its foundation on snch principles, and organizing its 
power in each form, as to them shall seem most likely efCect- 
nally to promote their safety and happiness." 

And further, that Declaration states, that 

"All experience has shown, that mankind are more dis- 
posed to suffer, while evils are snfferable, than they are to 
right themselves by abolishing the forms, to which they are 
accnstomed. But, when a long train of abuses and asurpa- 
tions, pursuing invariably the same object, evinces a design 
to reduce them under absolute despotism, it is their right, 
it is their da^, to provide new guards for their future se- 

Snch has been the patient sufferance of the American 
people ; they have long borne with a course of financial 
laws, that were aa cruel as they are unjust. By these laws 
there has been taken from the people the very money, which 
the Government had authorized and paid out in exchange 
for all the forms of labor and property, used and consumed 
by the Government in a four year's struggle for the national 

This money was actually paid out to the people, aa I have 
said, for "value received by the Government It was 
clothed with all the legal attributes of money, and sanctioned 
as snch by the Supreme Coort of the United States. It had 



become the people's money for all intents and pnrpoaes, as 
efFectnally as tbongh it had all been paid to them in gold. 
The Government hod lost all control over this money, bo 
paid to the people, except to tax it as all other property, to 
meet the current expenses of the Grovemment. This money 
had been used for years by the Govemment and the people, 
as a national cnrrency, costing the GoTemment nothing bnt 
the paper on which it was made ; it had been allowed to cir- 
culate as legal money until, as yoa declared when a Senator, 
"that every citisea of the United States had conformed 
his business to the le^-tender law " regulating the currency 
of the country. 

The people are compelled to remember the noble senti- 
ments yoa expressed in 1869, when yon gave to Congress 
and the country that most fearful warning against any at- 
tempt to shrink the volume of legal money, which the Gov- 
ernment bad been compelled to issue for the nation's salva- 
tion. Ton declared on that occasion, in language never to 
be forgotten : . . . . 

" That the appreciation of die currency is a far more dis- 
tressing operation than Senators supposed." 

You then stated that, 

" It is not possible to take this voyage without the sorest 
distress to every person, except a capitalist ont of debt, or a 
salaried officer or annuitant. It is a period of loss, danger, 
lassitude of trade, fall of wages, suspension of enterprise, 
bankruptcy and disaster. To every railroad it is an addition 
of one-third to the burden of its debts, and more than that, 
dednction to the value of its stock. ... It means the 
ruin of all dealers, whose debts become twice their (business) 
capital, tbongh one-third less than their actual property. It 
means the fall of all agricultural productions, without any 
great reduction of taxes. Wbat prudent man would dare to 
build a house, a railroad, a factory, or a bam, with the cer- 
tain fact before him, that the greenbacks he puts into his 
improvement, will in two years be worth thirty-five per cent, 
more than his improvement is worth. . . . When that day 



comes, all enterprise will be suspended, ever; bank will have 
contracted ita currency to the lowest limit, and the debtor will 
be compelled to meet in coin a debt contracted in currency ; be 
will find the coin hoarded in the Treasury, no adequate rep- 
resentation of coin in circulation, his property shrunk, not 
only to the extent of the appreciation of the currency, but 
Btill more by the artificial scarcity, made by the holdere of 

gold To attempt this task by a sarprise on onr 

people, by arresting them in the midst of their lawful bosi- 
nesB, and applying a new standard of value to their property, 
withont any redaction to their debts, or giving them an op- 
portunity to compound with their creditors, or to distribate 
their losses, would he an ad of fdlly without an example of 
evil in modem times.** 

It would be literally impossible for you to have drawn 
a more perfect picture of the scenes of wretchedness 
and ruin, that you so mamfuUy opposed in the Senate, in 
1869, a policy, which you then declared " was an act of folly 
without an example in ancient or modem tunes." 

It seems unaccountable, how you, with your views, as ex- 
pressed, could have drawn the Kesumption Act, and now 
use all the powers of your mighty mind to consummate a 
ruin that you so well described as an " act of folly withoat 
an example in ancient or modem times." 

Those frightful evils yon then predicted in the Senate, are 
now being painfully verified by the many thousands of fail- 
nres, that are annnally taking place as the result of the nn- 
just and unconstitutional laws, that have been passed. 
Laws, promising to pay some four or five hundred millions in 
gold, which the Glovemment did not possess and could not 

The Constitution has never given to Congress any such 
unreasonable power. It has made it the duty of Congress 
to " coin the money and regnlate the value thereof," withont 
saying whether money should be coined out of gold, silver, 
copper, nickel, or paper. 

That this tmeonstU^ioncd j^romise to pay money in gold, 



which thej conld not command, haa been farther made an 
occasion for Ck>iigres8 to listen to, and adopt, the advice of 
the men, who control the moneyed power of our own and 
other countriee. These men have, by their arte, sncceoded 
in obtaining from onr Government a coarse of financial legis- 
lation to advance their own interests as a class. They have 
donbled the expenses of the war by their infiaence, in de- 
feating a financial law in the Senate, that had passed the 
Honse of Representatives, after the most mature considera- 

TTie hanka amd the moneyed vntereda of our ovm amd other 
eouniries have prevail^ on our Govenwient to so change the 
laws, as to make the hotida, thai vsere atfiret mMte^payable vn, 
national money to be paid in coin. They next got the law so 
aliered, as to vtake coin mean gold. They then succeeded in 
gettiny the gold bonds relieved from, heing taxed for any part 
of the hurdens of the State or Nation^ Government. It 
should be remembered, that dU bonds were originally issued 
to be payable in currency. This currency our GovemmeTit 
had deliberately depreciated by refusing to recei/ve it for du- 
ties on imports, or interest on hoTids. 

And then our Government allowed war taxes to continne, 
until they had taken from the people the very money the 
Government had stamped and paid out, as so many dollars 
of real valne, made legal money, to be nsed as a national 
currency to enable the people to exchange commodities, and 
famish all the supplies, that were needed in a four years' 
Btro^le for the nation's life. 

When that life was saved, the people had become the right- 
ful oumers cf both their currency and their country. 

Our Government had no constitutional right to invalidate 
coniraets by lessening tlie volnme of the national currency, 
after the same had been issned and allowed to circnlate as 
legal money in the payment of debts for so many years. 

Such money, having been paid out by the Government for 
"value received," cannot be lessened in volume, without in- 
validating contracts. This our Government has done by 


156 oonr and papeb cueeency. 

having drawn from the people their money, which repreaente 
all forms of labor and property the people had given in ex- 
change for the money they received. * 

Was it not a moat absurd act of legislation to invite for- 
eign capital, in the shape of gold, to take np our good money 
at forty and fifty cents on the dollar, and tarn that money into 
a Govermnent bond at par, payable, both principal and inter- 
est, in gold? Was ever a nation more deliberately and 
cruelly put mider a heavy joke of bondage by its rulers t 

All these unjust acts mnet be rescinded. The people will 
not submit to them, when they come to know their true 
nature and purpose. 

It must be manifest to all, that commerce cannot be rega< 
lated with foreign nations, and among the several States 
without a national system of money as a standard, over 
which Congress can exercise an entire control. This can 
never be done by the use of gold, while Congress allows 
local banks to expand and contract, appreciate and depre- 
ciate the money of the conntiy in their own iniereaia at a 

Thomas Jefferson was right when he said that "bakk 
FAPEB mrer bs stipPfiEBSED, Ain> rsa cikculatinq hediuu 


BELOMOS." He wisely declared, that " it is the only fond, on 
which the Government can rely for loans ; it is the only 
resource, which can never fail them, and it is an abundant 
one for every necessary purpose." 

I find it impossible to frame an apology for a Congress, 
that conld make an unconstitntional promise to pay hundreds 
of millions in gold, which they could not command, instead 
of promising to receive such money as the Gtovemment was 
compelled to issue as "the only resource, which can never 
fail them." 

Money, so issued and accepted by the people, should have 
been considered, as it was, the most sacred treasure our 
country had ever possessed. It should have been held as 
more eapedaSy ^redoua, after it had fed and clothed onr 



armiea, and bad carried our eonntry safely throtigli a moBt 
terrible war, proving to the worid, that President Grant 
waa rigbt, wh^ be declared, tbat tbe money, bo ieened bj 
the Oovemment, was tbe "best onrrenoy our country had 
erer poaeesaed," and tbat "there was no more in circulation 
than was needed for the dnllest period of tbe year." 

If onr Government bad taken tbe advice of Franklin, 
Jefferson, Calhonn and Webster, in tbe enactment of finan- 
cial laws, tbej wonld never have pat our country in tbe 
power of the most dangerous community of banks, that ob- 
tained power in any country. They would also have saved 
to our country the one-half of the cost ot the late war, and 
the disgrace of being compelled to sell onr nation's bonds 
at some fifty or sixty per cent below tbe face value of the 

Senator Beck, of Kentucky, iu the Senate of the United 
States, has drawn for the American people a most frightful 
picture of the course of special legislation, that has taken 
from the people, as I have before stated, Hie peoples money 
and has converted the same into a national debt. 

The following startling amonnts have been wrung from 
tbe toiling masses of the American people, leaving the debt 
in the main as large as ever. 

The Senator says, " the bondholders hhd, up to 1869, re- 
c^ioed $100,000,000 afprojii before they got the principal of 
their bonds made payable in gold." 

" It can be shown by the Treasurer's reports, from year 
to year, giving the amount of bonds sold each year, and the 
premium on gold from 1862 to 1869, that the purchase of 
the bonds with paper at its face value, and the purchase of 
the paper at the discounts, gave a profit to the bondholders 
as follows : 




arising from do investments at all, may tbe^fore be stated 
in the following tabular form ; 

1862 $28,148,989 

1868 94,555,713 

1864 806,551,582 

1865 ■. 140,159,367 

1866 63,757,183 

1867 167,915,741 

1868 253,169,765 

On Bcconnt of 5 per cent, bonds. . . . 98,297,864 

Total $1,012,536,204 

This most remarkable statement was, as Senator Beck de- 
clared, " carefully and truthfully prepared." Thie proof is 
in the official I'ecordB, " It will satisfy the country," says 
the Senator, " and ought to satisfy the bondholders and their 
advocates, that tliey ought not to insult a snfEering people, 
whose hard earnings have gone to enrich them, by any com- 
plaint of want of good faith to them, in the effort we are 
making to save the country from bankmptey." 

As the present Secretary of the Treasnry you have before 
you all the facts, referred to in Spaulding's and other his- 
tories of the public debt 

On June 30, 1864, there were outstanding United States 

Greenbacks $431,178,670 84 

Postal fractional currency 22,894,877 25 

Interest-bearing legal tenders 168,571,377 25 

CertiflcateH of indebtedness 160,720,000 00 

Nation^ Bank notes 26.826,695 00 

Old State Bank circulation 136,000,000 00 

$944,190,620 34 



Amount brought forward $944,190,620 34 

Seven-thirty Treasnry Notes, temporary 
deposits, for which certi6cates were 
iaaned 72,356,150 00 

$1,016,546,770 34 

The record shows, that there were out- 
standing in October, 1865, $830,000,000 
of seven-thirty Treasury Notes, which, 
Aeeistant Spinner states, were engraved, 
stamped and paid oat to the soldiers as 
legal tender money, at the close of the 
war 830,000,000 00 

Making $1,846,546,770 34 

This amount of legal money was paid-ont by the Govern- 
ment and accepted by the people as so many dollars of real 
valne, and had thereby beiiome the people's money, which, 
as I said before, President Grant said, " was the best cur- 
rency, that onr eonntry had ever possessed." 

And that " there was no more in circnlation than was 
needed for the dullest season of the year." 

Our Government, in addition to si\ the other acts of class 
legislation, has taken from the American people tlieir small 
currency, that was costing them nothing, and has pnt in its 
place, unsolicited by the people, a more inconvenient silver 
currency, thereby creating a debt of some forty millions of 
dollars to be paid by the already overtaxed people of onr 

With r^ard to the demonetization of silver, every intel- 
ligent man must see, that inasmuch as silvernow forms more 
than one-half of the coin money of the world, that the effect 
of demonetizing silver must not only lessen the volume of 
tiie world's money, but must appreciate the valne of gold in 
proportion as the value of silver has been reduced. 

The plan for demonetizing silver is said to have been first 



presented to the great bankers of Europe, asBembled at the 
great Psris Exposition. 

It required but little examination to show them, that the 
demonetization of ailver would appreciate the value of gold, 
and add httndreds of mUMona to their weaWi, if they could 
only persuade the American Goveniment to join with them 
in tlie demonetization of silrer. 

These bankers appointed a committee to visit omr Govern- 
ment for the accomplishment of their object, which, as the 
Congressional Record states : " The sng^stion to the 
House Committee, made by the gentlemen from England in 
regard to the demonetization of silver, was incorporated into 
the House Bill and passed." 

Nothing can be more important for ue as a nation, than 
to ascertain and remove a cause, that is shrinking the valne 
without shrinking debts in the same proportion. Our na- 
tional policy, in trying to force specie payments on a debtor 
country, is now producing a similar condition of wretched- 
ness to that, which was brought oti England, by their attempt 
to force specie payments on that country, after a suspensioa 
of more than twenty years. During all that time their pa[>er 
money had not only earned their country through their wara 
with Kapoleon, during more than twenty years of suspen- 
sion of specie payment, but that same paper money had 
secured to England the greatest national prosperity ever 
known in that country. 

This policy, according to Sir Archibald Alison, brought 
on England a greater scene of widespread bankruptcy and ruin 
than all the wars, pestilences, and famines, which had ever 
afflicted that country. Notwithstanding the warnings of 
such an example, Mr. McCnlloch, in his address, made at 
the banquet, given by the Chamber of Commerce in New 
York, spoke boastingly of his earnest efforts, both person- 
ally and in writing, with Members of Congress, in trying to 
persuade them to allow him to take out of circulation the 
people's money, which (in his address) he states: "had all 
the legal attributes of money." 



He stated, that in the very year, in which the war closed, 
the redactioi) of the debt was commenced, and this redaction 
has been steadily continued, to the amazement o£ foreign 
nations. He adds : 

" la none of the Treasury statements, which I -have seen 
ainee the advent of the administration, has any mention 
been made of the rednction of the debt, previous to the 

present one A person, looking at one of these 

statements, would suppose, that the reduction of the debt 
was commenced with Qeneral Grant's administration while 
in fact the previous rednction had been reported of two 
hundred and fifty millions of doUars, according to the 
books and publidied statements^of the Treaeniy, while 
a lai^er sum than this waa paid to the War and Navy 
Department, which did not jet appear on the books of the 

Thna does Mr. McCulloeh speak of having contracted and 
taken out of the currency of the country, during his admin- 
istration, some five hundred*niillionB of dollars, that had been 
paid out by the Government and received by tlie people as 
money ; poaaesaing, he declared, "all the legal aify'UnUea qf 

Secretary SlcCnlloch's great mistake consisted in hia re- 
garding the money, actually authorized and paid out by the 
Government for value received, as something to he got rid of 
as soon as poaaible. 

Mr. McCulloeh stated at the banquet, that the legal 
money, which waa then serving the country so well, " gave 
turn more anxiety than all the rest of the national debt" 
It seemed, that it coat him much writing and a great 
deal of personal effort to persnade Senators and Mem- 
bers of Congreea to allow him to take from the American 
people, by a continnation of war taxes, the very money the 
people had received as dollars in payment for all the labor 
and property, that had been consumed in the prosecution of 
the war. 

I do not wonder, that ISx. MoColloch found, that "U re- 


163 conr ajstd paper ovrrescy. 

quired tke Wrongest kiTtd of personal and writien ar^u- 
meni« 'toperfuade Senators and Members of Congress to 
aUow him, to taJeefrom thepeople their money and convert 
the same mto a na^nal debt,' after the same moiie^ lisd 
been allowed to circulate, until (as I have eaid) it had bought 
and sold manjr times more in valae, than the whole property 
of the nation." 

If crime is to be measared hj the misery it prodoees, the 
the act of taking from our people their money, and convert- 
ing it into a national debt, must rank as one of the most 
nnjnat and cruel acts ever known to any civilized legislation. 
I do most heartily unite with Senator Jones, when he aays : 

" The present is the acpeptable time to undo the unwit- 
ting and blundering work of 1873, and to render our l^is- 
lation on the subject of money comformable to the Consti- 
tution of our country. . . . We cannot, we dare not, 
avoid speedy action on the subject. Not only does reason, 
justice and authority unite in urging ue to retrace our steps, 
but the oi^anic law comtnands us to do so ; and the presence 
of peril enjoins what the law commands." 

The claims of common humanity, with all that can move 
the manhood of the American citizen, demand of onr 
Government the return to the people of their currency. We 
most get back onr currency. This can be done in a way, that 
will restore prosperity to the paralyzed industries of onr snf- 
fering country, and establish justice in obedience to that 
first most imperious requirement of the Constitution. It 
will only require an act of Congress, declaring, that the 
people's money, actually found in circulation at the close of 
the war, shall be returned, as I have said, in the purchase of 
all tlie out«tanding interest-bearing bonds of the Govern- 

Such a national policy will put the tools of trade again in 
the hands of the people, and will enable them to work out 
their salvation from the eneUvemeut of an interest-bearing 
debt, created by taking their own money, wrongfully taken 
from them, and then by converting the same into nat)<»ial 



iikterest-bearing bonds, th&t now Iiang like a millstone on 
the neck of the nation. 

In the feirent deeire of promoting the velfare of onr 
eommon ooontry, I eubecribe myeelf, 

Tours most reepectfnlly, 



Fellow CmzEire : "We have met in Convention to con- 
«ideT one of the moat important questions, that can engage 
the attention of the American people; it is the question 
— " What share shall the people have in the fiscal Oovem- 
ment and the Moneyed Institutions of this Republic 1 It is 
not too much to say, that it is now not only the most im- 
portant qnesdon, but the only question, next to that of the 
right of the people to universal and free education, which is 
left to be decided, in order to secure the final objects of the 
Oonstitntion, which puts into the power of the people of this 
conntry all legislation and all authority. The objects are, 
as stated in the preamble of that Constitntion — " To estab- 
lish justice, insure domestic tranquility, provide for the 
common defence, promote the general welfare, and secure . 
the blessings of libetty to ourselves and posterity." 

These objects can never be obtained, while general igno- 
rance and general poverty prevail. 

It is not how rich the general resources of a country 
may be, or how "wealthy, learned and intelligent certain 
classes are, that make the happiness and prosperity of the 
people ; but it is the just diffusion of the wealth and advan- 
tage, which the common country, oommon industry, and the 
general powers of the people produce. Monopolies of all 
kinds must be at the expense of the people and I^q happiness 
of tJie whole nation. Let us then always turn to the spirit, 
as well as the letter of onr Constitntion, in diacnssing aH 
paUic questfons. 



Nothing can be more Belf-erident than the fact, that the 
framers of the ConBtitation intended by its preamble, that 
every law which is passed, should be ia conformity with its 
reqairbments, and have for ita object the e^abUihmsnt of 
justice ae the onlypossUile mea/ns, by which the general wel- 
fare of a nation cam, he ^edmdlly jpromoUd. 
, It will be remembered by all, who have read what I have 
written in relation to a National Currency, that I have 
uniformly contended, that the provision of the Conetitution, 
which declaree, that Ck>ngreas shall .have the power '*To 
levy and collect taxes, duties, imposts and excises ; to pay 
the debts and provide for the common defence and general 
welfare of the United States," is all that is needed to 
anthorize Congress to ieeue Treaanty Notes, and make them 
receivable for all forms of taxes, duties and debts. If sach 
a coorse of national polity had been adopted (instead of a 
national money with a part of its purchasing power repu- 
diated by an act of Oovemment), it wonld have lessened 
the cost of t^e civil war to one-half the amount, and would 
have saved our country from the paralyzed condition, through 
wliich it has been compelled to pass. 

I have uniformly endeavored to show, that our Oeneral 
Gktveminent holds the only power, authorized to coin the 
, money of the coantry, and regulate the value thereof; 
whether it be coined out of gold, silver, copper, nickel, or 
paper, and that nothing can be l^al mone^ without the 
stamp of the Government on it 

In all that I have vmtten on the snbject, I have endeav- 
ored to adopt the broadest principles, that conduce to the 
peace and happiness of my country, without regard to party 
lines or party affiliations. 

I think, that the neglect of our several administrations to 
make laws, that shall properly regulate the cnrrency, both in 
Tolume and value, has been a greater cause of demornliza- 
tion, want and misery among the mass of the people, than 
all other causes combined. 

The American people have a right to demand of their 



GoTemment a substantial reason for haying taken from 
tbem ttieir monej, used hy them for years as the currency 
of the coontry withont cost to the Groremment. Oar present 
Secretary of the Treasury declared in the Senate that " every 
citizen ot the United States had conformed his business to 
the clause of the law regulating the currency of the conn- 

I believe it will be impossible for onr GoTemment to show 
a good reason for having taken from the people their circu- 
lating notes, possessing (as the late Secretary McColloch 
stated at the banquet, given by the New York Chamber of 
Commerce) "all the I^al attributes of money." The Sec- 
Tetary at the same time said, that, "In the very year, in 
which the war was closed, the reduction of the debt was com- 
menced, and the redaction has been steadily continued, to 
the amazement of foreign nations." 

This debt, so called, was also "the credit of a great nation, 
cut up into small pieces and circulated as money ; " as was 
well said by Secretary Chase. What shall we think of the 
administration of a Government, expressly designed, "by 
Ihe people and for the people," that should turn their circu- 
lating credit and their real money, into a debt which stops 
that circulation, vital as it is to the trade and prosperity of 
this people, and makes it a burden of bonds and taxes on 
their industry t 

It will be equally impossible to show a good reason for 
having taken from the people their fractional can-ency, 
which was costing the Government nothing, and supplying 
its place with a more inconvenient currency, at the cost of 
thirty-two millions of dollars, added to the National debt. 

The amount, already paid by the people as interest on the 
National debt, apart from any payments on account of the 
principal, is already one thousand, two hundred and twenty- 
fonr miUious of dollars. 

I have long been compelled to believe, that all that is notu 
or ever has leen required to secure permanently, is a safe 
deposit for all the unoccupied moneys of the country, and an 



ever Btrengthening bond of National onion, gs well as the 
best currenoy, that onr countiy or the world ever aaw, will 
be for the Government to do now, what ahonld have been 
done at the close of the civil war, — and at the dose of the 
war of RevolatioD against fioglaod — namely, to make the 
people's money, fonnd in circulation at the doBe of the war 
the sole money of the country, and the nnflacttuating meas- 
ure of all valaea, receivable for all forms of taxes, duties 
and debts, and interoonvertible with the intereet-beariug 
bonds of the Government, which should bear an equitable 
bat low rate of interest. 

It should be remembered, that all this shrinlcage of onr 
currency was made, while the Government was being com- 
pelled to disband more than a million of soldiers, and turn 
some four millions of emancipated slaves houseless and 
homeless on the community to find employment, food and 
shelter, or to starve. 

In conclusion, Fellow Citizens, I shall leave the full dis- 
cussion of this National question to those, specially invited 
for that purpose. I wish merely to express to yon my pro- 
found sympathy and clear convictions in the caase> for which 
we are assembled. 

I hope, that the intelligence and education of Massadiu- 
setts, which stand foremost among the States, will be brought 
to bear on this great national question — How can we, as a 
Bepnblican and a free people, control the Financial Institu- 
tiona and the policy of this Government in the interest and 
prosperity of the whole people t 

It is evident, that some fatal errors have been committed, 
some where, by which want, ruin and distress have been in- 
troduced, where before was prosperity, abnndance and full 
employment for the enterprise and industry of tliis naticm. 

Individuals may suffer from extravagance, over-trading or 
over-production ; bnt how caa a whole nation have-its joy 
and prosperity turned into mourning, bnt by the fatal errors 
of its ruling daeses, wliich make the laws, and can thus 
mete out injostice and dry up the resources of a nation by 



rapacity and greed of gain, instead of diffnBing happinesB, 
education and freedom amoBg the people. 

Mifigoverameot and the faults of the mling claas have 
always proved in Ustorj the trouble and sorrow of oatioiis. 
All the reeponsibility of a uatiou'fi happiness, which ma; 
depend oa a peopIe^s laws and administration, must rest 
upon thc»e, who are, for the time, the law making and ad- 
ministrative class. 

Though the infinencea, that are now vorking against the 
rights of labor and the true interests of a Kepnblican Gov- 
ernment, are insidions and concealed under plausible rea- 
BiODB, yet the danger to our free institutions, now, is no less 
than in the inception of the rebellion, that shook our Be- 
public to its centre. It is only another oligarchy, another 
enslaving power, that is asserting itself against the interest 
of the whole people. There is fast forming in this country 
an aristocracy of wealth — the worst form of aristocracy, that 
can corse the prosperity of any country. For such an aris- 
tocracy has no caunin/ — " absenteeism," living abroad, while 
they draw their income from the comitry, is one of its com- 
mon characteristics. Such an aristocracy is without sonl 
and withoat patriotism. Let us save our country from this, 
its most potent, and, as I hope, its last enemy. I beseech 
yon, feUow-citizens, to consider well what the crisis of tlie 
country demands of yon, not losing sight of the fact, that 
there are great wrongs which most be righted in the adminis- 
tration of the finances of this country for the last twelve 
years. Old issues of North and South are, in a great meas- 
ure, passing away, but there is no section of our common 
country, that needs so mnch the reviving influence of an 
abundant and a soond enrreney, as the Sooth. The South- 
em people have the finest natural resources, that our country 
affords ; every facflity for manufacture — the material, labor 
and water-power indefinite. They need only money, wisely 
distributed among its working and enterprising population, 
for their work and their enterprise, which may draw oot the 
money, and pat it to the best ose. It was well said, lately, 



by one of the Soathem Btateamea, that the " Chvenunemt 
had impoverished, discomfited, and cruahed the SotUh more 
by He jma/ncMjl polAcy, since peace was deda/red, than ly its 
arms dwrmg the -whole war of Rebellion ! " 

If the people can look for do relief from the present Con- 
gress and AdminiBtration — if those, who now away the finan- 
cial interests of the country cannot see their great oppor- 
tunity — then new men most be chosen by the people, whom 
they can trust; to make laws, and execute meafinres, that 
" shall secure the blessings of liberty to themselves and their 

I will close my remarks by a qnotation from a speech of 
Daniel Webster. He declared that " The produmtg cause 
of aU prosperiiy is labor, labor, labor. The Government 
was made to protect this industry, and to give it both etv- 
couragement and aecitrity. To this very end, with Giisjtre- 
else object in view, power zoos gvoen to Confess over the 
currency and over the money of the conntiy." 

Letteb to HI8 ExoELLEHOT B. B. Hatbs. 

HoKOBED Snc: Allow me to assure you, that nothing 
short of a most profound anxiety for the nation's welfare 
could induce me, in this eighty-ninth year of my age, to 
make another efiort to call and fix your attention on the un- 
measured importance of the facts, that my former letters 
were intended to press on your immediate consideration. 

Your effort to secure for our country a " civil service," as 
a means to obtain honesty and capacity in all places of pub- 
lic trust, is a matter of vital importance to all the best in- 
este of our common country. 

Tou will recollect how ardently I expressed to you my 
thanks in my first letter, for the wise and patriotic course 
yon had then adopted in the dischai^ of the delicate and 
difficult duties, that yon were called upon to perform. The 
interest yon had then manifested in the nation's welfare, had 



seot s thrill of hope aad joj into the hearts of sufiering 
millions throughout the whole country. Thej were then 
looking to ;oa with an anxions h«pe, that yon would 
moat urgent^ declare and insist, that all officere, in every 
department of Government, are bound by the Bolemnity 
of their oath of office to have for tiieir object, in every 
legislative act, the eatablishmeQi of jnetiee, by the organi- 
zation and the execution of Con'stitational laws, as that is 
the only sore means, by which domestic tranquility can be 
secured, and the nation's welfare be sorely and effectually 

Instead of having legislation to establish justice, it now 
appears by the laws passed, that nearly the whole conrse of 
financial legislation, since the close of the Rebellion, has been 
80 manifestly cruel and unjust, that it seems impoBsible to 
frame an apology for those, who have taken an active part 
in framing and passing laws so directly in violation of the 
very letter and apirU of a Constitution, that has in tlie few- 
est possible words covered the whole field of a nation's 
wants. The Preamble declares "That we, the people, in 
order to establish justice, secm« domestic tranquility, pro- 
vide for the common defence, pbomotb the oeheral wel- 
FAKE, and secure the blessings of liberty for ourselves and 
our posterity, do ordain this Constitution for the people of 
these United States." 

To show the danger, that must resnlt to the American 
people by continuing to allow our present system of National 
Banks, authorized as they are, to issue paper " promises to 
pay" gold and silver on demand, when they ebonid have 
always been compelled to bank on national fiat money, made 
receivable on a par with gold and silver at its present value, 
weight and fineness, let us refer to the founders of our Con- 
stitution, etc 

I am at a loss to see how it could have been possible to 
obtain such a course of financial laws aa those, that have 
been passed, commencing, as they did, by paying out paper 
money to circulate as legal dollars, and then, by an act of 



Congress, took from the people's legal money its power to 
pay duties on imports or interest on bonds. 

The bankers and dealers in gold were not satisfied with 
the privilege of baying' bonds, made payable in cnrrency at 
half their face value, with the right to deposit said bond 
with the Govemmeut, who agrees to receive (said bond) and 
pay interest on the same at its fam value, and give bankers 
$90,000 and interest on $100,000, in good money, guaran- 
teed by the Government, to enable them to carry on National 

The bankers were not satisfied with receiving interest on 
the valne of their bonds in currency. They obtained an in- 
validating law, that made the bonds, that were originally 
issued to be paid in currency, made payable in coin. Anotbw 
act made the coin to mean gold, and another act relieved 
the gold bond from bearing any part of the pnblio burden 
of taxation by either State or Nation. 

!Not satisfied still, the Grovemment has t-aken from the 
people their small currency, that was costing them nothing, 
and has given in exchange a less convenient currency, that 
has now bound the people to pay interest on some fifty 
millions of dollMs, at four per cent, quarterly, for thirty 

The money powers of our own and other countries per- 
suaded our G^ovemment to demonetize silver, when it was 
known to be a large product of our own conntty, and, at the 
time, some three per cent, more valuable than gold. 

The most cruel of the laws, that have peen passed, was 
the one that took from the people their money, made l^al 
by all the forms of law, known to oar Government. 

That money had been allowed to circulate as legal dollars 
in the pay of the soldier, the sailor, the farmer, mechanic 
and merchant, in exchange for all forms of labor and prop- 
erty, purchased by the Government, and consumed in the 
prosecution of the war. That money had become the life- 
blood of the trade and commerce of the country. 

When the war ended, the exact amount, found in circu' 



lation, was known, and that amount shonld have been de- 
clared the permanent nnflnctaating meaaore of all values for 
all coming time, and never allowed to be increased or dimin- 
ished, only as per capita with the increaae or diminntioD of 
the inhabitants of onr country. 

It was the iuUion?8 currenoy, soch as France issned and 
received for all taxes, dnties and debts throughout its des- 
perate struggle for that nation's life. The French Qovem- 
ment, instead of taking from their people the paper money, 
as soon as the German war was ended ; instead of contract- 
ing their currency as onr Qovemmeut has done, the French 
Government added some 350 millions more to their paper cir- 
culation, and in addition to that great increase of their paper 
money, their Government authorized temporary loans to be 
made on goods by all principal cities of France. This wise 
and just policy saved France from the terrible consequence 
of a panic like tliat, which was brought on our own country 
by an nn just and unwise contraction of our nation's currency — 
a^policy, that brought wretchedness and ruin to the homes 
of milliona. 

That Imly vrise and just policy of France has carried that 
conntry to a pinnacle of greatness among the nations of the 
Earth ; while the policy of mtr Gk)Temment is rapidly pro- 
ducing a money power fearful to contemplate. 

Thomas Jeiferson daclared a most important truth, that 
shonld never be forgotten. He says that ■" the power to 
isspe Treasury Notes bearing or not bearing interest, is a 
fund that can never fail." 

It was unfortunate for our conntry, that the advice of 
Thomas Jefferson could not have been taken, when he said, 
" bank paper must be supprossed, and the circulating medium 
most be restored to the people to whom it idonga." He 
wisely declared, " that it is the only fund, on which Govern- 
ment can rely for loans. It is the only resource, which can 
never fail them, aaid it is an abundant one for every neces- 
sary purpose." Had the advice of Jefferson, Franklin, Cal- 
houn and Webster been taken, the cost of our late war would 



have been not more thut lyiJf the &moant, that was ex- 
pended, and onr conntry would have beea saved from the 
disgrace of selling its bonds for fort^ or fifty cents on the 

When I was last in Washington, in conversation with Mr. 
Evarts, I said to him, that "I believed the time had come, 
when this great American question of national finance mtut 
he sealed, and that ii must is eetUed in the irUerest of lAtf 
great mass of the American people, and 7U>t in ihs int^est 
of the Tnoneyed dassea, as it is now." 

I am glad to find that those, who are striving to drive onr 
coaqtry back into the " barbarism " of a metallic basis for 
cnrrency, are fast giving way for want of argument. It is 
being discovered, that all the great writers, who have 
analyzed the Bubject, and have viewed it from a scientific 
standpoint, come to the conclaeion, that paper money is 
superior to metal for a cnrrenqr. Even Ricardo, the bnl- 
lionist, allows this. He says, that a " regnlated paper cur- 
rency is BO great an improvement in commerce, that I wonld 
greatly regret, if prejudice shonld induce ub to retnm to a 
system of less utility," • 

The following reaumS, fonnd in a late paper, expresses 
my opinions on the whole subject of our national finances : 


" 1st. The Government should issue all the cnrrency, 
that is nsed by the people, whether it be gold, silver or 
paper, and it should all be made a legal tender for all 
debts, pubHc and private. 

3d. The coinage of both gold and silver shonld be 
nnlimited, and the Gk>vemment should coin all the gold and 
silver bullion it can procnre, and coin without loss. 

3d. All surplus cnrrency, now in the Treasury, should be 
nsed to cancel bonds, and ^us stop interest on the same. 

4th. Government paper should be substituted for national 



5th. The Grovemment ahould secnre to Uie people the 
Bame volnme of money, with which to pay their debts, that 
was in circulation, when those debts were coniraeied. 

Government postal savings banks shoold be established 
in all our large cities and villages, where the snrploa money 
of the people can be deposited : and the money, thns de- 
posited, should be used by the Government to cancel the 
pnblic debt and to promote sach public improvements, as 
woold be of valae to the whole people." ' 

All these invalidating financial laws were passed in direct 
opposition to the warning advice, given by your present 
Secretaiy, Shfrman, when in the Senate, 1869. He tlien 
described, in langn^e never to be forgotten, the scenes of 
misery and ruin, that' would come upon our country, as a 
consequence of taking away from the people the l^;al money 
they had received in payment for all the labor and property 
they had passed into the possession of the Government, in 
ex<^ange for the legal dollars they had received. Secretary 
Sherman was right, when in the Senate, 1869, he declared 
thAt "every citizen in the United States had conformed his 
basiness to the legal tender clanse of the law, r^nlating the 
currency of the country," He declared that, "the apprecia- 
tion of the currency is a far more distressing operation than 
Senators supposed." He then stated : 

" It is not possible to take this voyage withont the sorest 
distress to every person, except a capitalist ont of debt, or a 
salaried officer or annuitant. It is a period of loss, danger, 
lassitude of trade, fall of wages, suspension of enterprise, 
bankruptcy and disaster. To every railroad it is an addi- 
tion of one-third to the burden of its debts, and more than 
that dednction to the value of its stock. * * * It means 
the ruin of all dealers, whose debts become twice their 
(business) capital, though one-third less than their actual 
property. It means the fall of all agricultural productions, 
without any great reduction of taxes. What prudent man 
would dare to build a house, a railroad, a factory, or a bam 
with the certain fact before him, that the greenbacks he 



puts into hiB iraprorement, will in two years be worth 
thirty-five per cent, more than bis improvement is worth. 
* * * When that day comes all enterprise will be sne- 
pended, every baak will have ccoitracted its currency to the 
lowest limit, and the debtor will be compelled to meet in a 
coin debt, contracted in carrency,; he will find the coin 
hoarded in the Treasury, no adeqoate representation of coin 
in cirenl&tion, hie property shrunk, not only to tlie extent of 
the appreciation of the currency, bnt still more by the artifi- 
cial scarcity made by the holders of gold. * * * To at- 
tempt this task by a surprise on our people, by arresting 
them in the midst of their lawful bnsiness, and applying a 
new standutl of valae to their property, witliout any redac- 
tion of their debts, or giving them aA opportunity to com- 
pound with their creditors, or to distribute tbeir losses, 
vxndd he an act qf/bUy withont an example of evil in 
modem times." 

Secretary Sherman^a whole speech in the Senate was in- 
tended to show, that a nation's cnrrency could not he con- 
tracted without bringing ruin on tAe debtors and on the 
laboring daseea throughout oar country. 

In my late appeal to all legislators and religions teachers, 
I have demonstrated a fact, that cannot be disproved, viz., 
that all the legal money, paid out by the Government fcv 
labor and property during the war, was, beyond all con- 
troversy, the people's hohbt. Tlie money, having been 
wrojigfnlly taken from the people, must in order to entaUuk 
justice, be given back to them in the purchase of all the out- 
standing interest-bearing bonds of the Grovernment, in exact 
accordance with the law, under which they were issaed. 

By this plan a partial jnstice can be established, and the 
general welfare of the nation can he surely and effectually 

This plan will retnm to all the original holders of Grovern- 
ment bonds nearly double the amount in the same kind of 
legal money, that was paid for the bonds at the time they 
were first issued. 



l^e nearest possible approach, that can be made to the 
eetabliehmeflt of JDstice in the r^nlation of the corrency, 
would be to pay off the national debt, in strict accordance 
vith the reqaireinBats of the law, ander which it was coq- 
bacted, by an iBsne of legal tender money, which would 
stop the interest of so much debt and have one f<yrm. of 
money ivsr all PcaPOSEa throughout our conntty. The ad- 
TiDtages of paying off the national debt in legal money, 
woold be many and great. It would throw back the money, 
wrongfully taken, into the hands of the people, who own it, 
and make them responsible for the use of their own money, 
in all the forma of trade and commerce in the country. This 
money, so paid back to the people, would start all kinds of 
enterprise. Nothing is more certain than the fcuA, that we 
can never have continnoas prosperity in the trade and com- 
merce of our conutry, so long as we allow ourselTes to de- 
pend on a paper circulation, pbomisinq to pay silvsb isa 
GOLD ON DEMAND. All the bsuk failures of the past compel 
me to believe, that the banks of the future wUl be like those 
of the past — tbey will be compelled to foil, whenever an 
Duexpected foreign demand is made on them for the silver 
uid gold in their possession. 


A most frightful picture of the course of special legisla- 
tion, that has taken from the people, as I have before stated, 
the peoples tiumey, and has eonvertad the same into a 
national debt. 

The following startling amonnts have been wrung from 
the toiling masses of the American people, leaving the debt 
in the main as large as ever. 

Senator Beck says : 
" The bondholders had npto 1869, received $100,000,000 
of profit, before they got the principal of their bonds pay- 
able in gold. 

It can be shown by the Treasurer's report, from year to 



year, giving the smoimt of bonds, sold each jear, and the 
premium of gold from 1862 to 1869, that the parchase of 
the bonds with paper at its face value, and the porchase of 
the paper at the discoimtB, gave a profit to the bondholders 
ae follows : 

An Account of the Bondholdera^ Clear PrqfiU, 
arifiing from ad inveBtment may therefore be stated in the 
following taboEar form : 



1864 306,651,682 

.■ 110,158,867 


1867 167,916,741 

. 363,150,766 
On account of 6 per cent bonds . 98,297,664 

Total, .... $1,012,686,304 ' 

This most remarkable statement was, as Senator Beck 
declared, " carefolly and trathfnllj prepared. The proof 
is in the official records. . It will satisfy the coontry, and 
OTigbt to satisfy the bondholders and their advocates." 

The policy of contracting England's corrency after a sus- 
pension of specie payments for more than twenty years 
actually, according to sir Archibald Alison, brought on Eng- 
land a greater scene of widespread bankruptcy and min, 
than all the wars, pestilencea and famines that had ever 
afOicted the countiy. Notwithstanding the warnings of such 
an example, Mr. HeCnlloch, in his address, made at the 
banquet, given by the Chamber of Commerce in New Tork, 
spoke boastingly of his earnest efforts, both personally and 
in wi-iting, with Members of Congress, in trying to persuade 
them to allow him to take out of circulation the people's 
money, which (in his address) he states : " had all the legal 
attributes of money." 

Hy age and experience, have compelled me to believe, 



that mankind, as individnals, communities, etatee and na> 
tioDB, will improve and better their condition, just bo far as 
tLey come to see, know and onderBtand, that what a man, 
an individaal, a commanitj, a state, or a nation, "eowetb, 
that mnst they also reap," somewhere, somehow, and at 
lome time, and that by the operation of a reign of universal 
and beneficent laws, designed in infinite wisdom for the ase 
and elevation of mankind. They are laws that in themselves 
are so wise and good, that they will never require to be 
altered, amended, or revoked. They are laws, that bind 
every member of the Government to act with the same intel- 
ligent economy and care, that a wise and good individual 
would adopt, if the whole community were, every one, mem- 
bers of his own family. 

I am in fervent hope, that the day wH] come, when men 
will realize what the poet says : 

* * " A nature ntional, ImpIlM the power 
Of being as 'bleat or metohed, aa we pleaiM ; 
And he that would be barred oapaclt; of pain 
Conrta incapacit/ of bliaa, 
Heaven wiUt our happlueas, aSotei onr doom, 
InvltM oa ardeutlj, but not conpela." 



Kt Dbab 8rB : I see that Sherman is making a desperate 
effort in the Senate, to force a vote on his 8 per cent, fund- 
ing bill at aa early a day as possible. 

The people of this country, who have given some atten- 
tion to the financial qnestion, are watching with deep inter- 
est t^e discnsfiion, that is taking place in reference to this 
bill. This bill cannot be regarded in any other light by in- 
telligent minds, than an effort on the part of those, who ad- 
vocate it, to fasten a porti<m of the public debt upon the 
people, 60 that it cannot easily be paid, and to perpetuate 
the existence of the National Banks. 



Senators, who support this bill, ^1 not, as I beliere, in 
the fntnre, be supported by the people. 

I sincerely hope, that yon will make one of your ablest 
speeches in opposition to this bill, and in favor of abolish- 
ing bank currency, as fast as the charters of these banks ex- 
pire. This whole system of issuing money and making it a 
gratuity to rich bankers, is one of the most infamous frauds, 
ever perpetrated upon the people. 

Now, can any plausible reason be given, why the Qovem- 
ment of the United States should issue |362,000,000 of 
notes, and endow snch sotes with the function of money, 
and practically make them a free gift to rich bankers, while 
the masses of the people have to work for eveiy dollar of 
this money, that comes into their possession ! 

Why, Sir, if tliis volnme of currency was issued in the 
form of legal tender notes, the working classes of this conn- 
try wonld supply for it the labor and material, requisite to 
build two lines of double-track railroad from the Atlantic 
to the Pacific coast, and fully equifi those roads, and in ad- 
dition thereto, construct fifty first-class ocean steamers, by 
which the question of cheap transportation, both at home 
and abroad, could forever be settled in the intereats of the 

Bailroads, built in this way, wonld be owned by the peo- 
ple, and through them they could interchange their products, 
without having more than h^ of them consumed in pay- 
ing large dividends on watered stocks, and higher interest 
on preferred stocks in fact, without paying interest on any 
stocks or bonds whatever. Why not introduce a bill, that 
shall make provision for retiring bank currency as the 
bank charters expire, and to substitute for the notes of the 
expiring banks, Treasury notes made legal tender, and at the 
option of the Gtovemment redeemable in coin, or in a three 
per cent, interconvertible bond, and put the Treasury notes 
thus issued in circulation by providing cheap transportation 
routes for the people, as 1 have here indicated I 

Why ^onld the people, who create the wealth of the ua- 



tion, be oompelled to contribnte the lai^est ahare of that 
wealth to the owners of the money, and the owners T>f the 
transportation Imes, the mediam throngh which the products 
of the people's labor are interchanged ? . 

Why ehonld Mess^. Qoold, Vanderbilt, Sage, Killer, 
Hnatington, Crooker, other railroad managers, and a few 
hnndred bankers in New York be permitted to accumulate 
their hundreds of millions of dollars, by simplj controlling 
the money and transportation, that should belong to the 
whole people } 

Is it not becanse we hare men of John Sherman's stamp in 
the United States Senate and in Congrese, who are legisla- 
ting in the interest of these parties ! 

Is it not about time, that such men should step aside and 
the tme Kepresentatives of the people's interest, should step 
to the front and pass measures for the benefit of the people, 
and not eolely for that of rich bankers and railroad mag- 

If this 3 per cent, fnnding bill of John Sherman should 
pass, tlie bonda it provides for issning would command a 
premium in one year of four or five per cent., which would 
be two or three times tlie amount of interest saved over the 
3^ per cent 

Besides this witli onr surplus revenues, it would only re- 
qnire about 3^ years to pay off every one of the 3J per cent, 

This cry of Mr. Sherman of " saving interest " is jnst a 
pretense on his part ; the real object of the bill is to per- 
petuate the public debt, and by that means to continue to 
issue bank currency. The whole system of issuing currency 
by banks, whether they are private. State or National, is 
one tbat will bring panics, w^de-spread bankruptcy and finan- 
cial min. 

It is a perpetnal scheme for inflation and contraction, for 
sending the prices of property up and sending them down ; 
for permitting people to get in debt on bank paper and forc- 
ing them to pay those debts in eem for selling property, 



whm it k high, and buying it on fDreclosore, when it is 
low. • 

About every ten years the bmineflB m«i of this conntiy 
are forced thron^h bankruptcy, and their property is ab- 
sorbed by bankers and money lenders through the process. 

I send you, herewith, some docaments, which contain ta- 
btes, taken from the finance report, which will show yoti 
how inflation and contractioa vaa carried on imder the old 
State bank syatem ; and also show what a eyetem of legal- 
ized fraud the present system of iN'ational Banks would be- 
come, if the legal tenders were destroyed and the tax on 
bank circnlatioQ removed. 

I also send you a copy of my letter to Secretary Folger, 
reviewing his last report. 

I trust yon will examine these documents carefully, and 
that your voice will be heard with great cleamesB on this 
subject, before a vote ia taken on this bill of Mr. Shco^ 

Congress should at once prohibit any fnrUier refunding of 
the public debt, and should pay the debt as fast as possible. 
It should also prohibit any farther re-charter of the National 
Banks, or the issue of any more bank carrency of any kind. 
It should provide also for the unlimited coinage of gold and 
silver, for the iseae of gold and silver certificates, and for 
legal tender notes, to take the place of the notes of the 
National Banks, as fast as their charters expire. In addition 
to this it should provide cheaper transportation and Port 
Office Savings Banks for the people. 

This will secure the best interests of thoao, who create the 
wealth of the nation by labor, and not solely of those, who 
absorb that wealth through class legislation and special 

One reason why Mr. Sherman is pushing this 3 per cent 
bill is, that $243,000,000 of the bonds now, held by the 
Treasury to secnre bank currency, are 3^ per cents, and by 
paying these off as rapidly as is now being done, the banks 
are compelled to surrender their circulation, or pay a high 



premiDm for 4^ per cent, bonds to be lield af> their 1^^ re- 
BM^e, and as secnrit; for these notes. 

The qnestions of currency and the payment of the pub- 
lic debt are of vast importance to the American people. The 
fntnre stahility and prosperity of onr Qovemment dep«id 
greatly upon a wise settlement of these momentons inter- 

The American people vill never allow these sobjects to 
rest quietly, nntU they are safely moored to those snre f onn* 
dation principles of eternal tmth and jostice, on whidi otit 
Fathers placed the Constitution of the United States. The 
Constitntion was designed to establish a Gtoveniment of the 
people for the people, and make it ^ shield of protection 
for the nnsnspecting masses of the people against those, who 
are resorting to all forma of art to obtain property without 
labor. The framers of the Constitntion would never have 
recommended one kind of money for the Government, an- 
other for the people, and another for the banks. 

In settling these qnestions of debt and current^ we should 
be governed by the opinions of snch a staunch champion of 
Democracy as Thomas Jefferson. 

That great statesman and philosopher, Benjamin Franklin. 

That life-long Democrat and statesman, John C. Cal- 

Herbert Spencer, who js regarded as one of the first 
writers and ablest thinkers of his age, says : 

'.' England herself does not in reality base her cnrrency 
on specie, nor could she without bringing all business to a 
dead stop in a very short time. She jnst mixes enough of 
this specie basis fiction in her finances to continually or 
periodically divest the laboring classes of their earnings for 
the benefit of the nobility. Bat for the real basis of value 
to her currency, she makes the notes of the Bank of Eng- 
land, as well as her coins, a fall ie^l tender for the pay- 
ment of debts, but not the notes of the other banks. lYom 
this we eee, that even in England specie basis is a mere fic- 
tion, a false pretence." 



I Bee, that BOggestions are being made by the officen of 
the Govenuneat, and bille are being introduced, which um 
to destroy the legal tenders or remove their legal tender 
qnality. This could no|; be done, except with the greatest 

Oar Government, having been literally compelled to iaeae 
and use a legal tender paper money, in order to save the na- 
tion's life, has, by its use, caused the whole property of the 
country to be measured by its pnrchasing power. By this 
use of paper money the Government has created a most 
Bolemn obligation on its part to do no act to' increase or di- 
minish the amount of paper money beyond the absolute ne- 
cessities of the Government. As an increase of tlie amount 
would inflate prices without increasing real valnes, in the 
same proportion a diminution of currency must canse all 
property to shrink in price, and thereby put it out of the 
power of the people to pay their debts. 
' One thing is certain, that the public and private debts can 
never be paid by a governmental policy, that shrinks the cor- 
rency, destroys values, paralyzes indostry, enforces idleness, 
and brings wretchedness and ruin to the homes of millions 
of the American people. 

It is equally tme, that Americans can never buy anything 
cheap from foreign countries, that must be bought at the ex- 
pense of leaving our own good ^aw materials unased, and 
our own labor unemployed. It should be remembered, that 
neither gold, silver, copper, nickel, nor paper are money, 
without the stamp of the Grovemment upon it. The Con- 
stitution has made it the duty of Congress to coin the money 
of our country, regulate the value thereof and fix a standard 
of weights and measures, as the only possible means, by which 
commerce can be regulated between foreign nations and 
among the several States. 

The people look to you and your associates to protect their 
interests, and I trust yon will pardon, me for thus impress- 
ing upon you the Importance of legislating upon the ques- 
tions here referred to, in such a way as to provide for the 



profiperify of the masseB, and not solely for the benefit of a 
few, who have secured special charters and privilegee for 
their own benefit. 

Very lespectf tdly yours, 

Pktxb Coopeb. 

Open Ltitbb to thb OmzENs and Yotebb of MAnra. 

Hatinq been requested by citizens of year State, to ad- 
dress a few words of ooonsel and appeal, on the present 
condition of this nation, involved in the political issnes, that 
are now before your people as a State, I take this means to 
do so, in the hope, that it may hare some effect in inducing 
them to listen, for once, to other than their party leaders, 
to reflect on their condition for themselves, and to take the 
ooansel of an old man, in his eighty-eighth year, who has 
no other ambition or object in life, than the good of his 
country and the happiness and prosperity of the whole 

The commercial ruin of so large s part of the bttsinees 
and productive power of our country, and the consequent 
distress of the honest laboring portion of our peopl^ is the 
ovwwhelming fact, which we all acknowledge and deplore. 

The causes of this distressful state of things, given by one 
party, is the extravagance of the people, over-production, 
over-importations and the unwillingneas of the working 
people to vxrrkfor low wages. 

It has never been proved yet, how these causes coold pro- 
duce this wide-spread distress in our conntiy, in the presence 
of the facts : First, that etetranjoffonoe, from its very nature, 
must he confined to- a few, who can afford it ; and that over- 
production and over-importatioQ can only be the conse- 
quence of inability to pay for consumption ; for no amount 
of production and importation could distress the people, if 
they could pay for and consnme all. How came about this 
inability to pay I 



Now, we of Uie National Party maintain, tliat a differ- 
ent caose is the source of the diatresa and nasery at onr 

It IB HiBGOTGHNHENT. It IS precisely that form of misgov- 
emment, which has always brought distress Mid oppreseion 
on any people — legi8laiii\^ for a dam, and putting the pro[>> 
erty, the interest and the power for good or evil that exists 
in pnhlic law, entirely into the control of a particnlar class, 
as distiDgnisbed from the rest of the people. 

Bnt what particnlar j>oliey of tJie Govemmeut and what 
acts of l^ielation can be cited as " mitgovemmeni," and aa 
having brought all this distress upon ub ! 

It is the pohcy of l^slating, for the last twelve years, in 
the iniereet <^ tAe hondholderB of this naUon'e debt, and the 
several " fouding Acts of Congress," that have carried out 
that policy. 

I cannot go into a detaU of those " Acts." Let any one 
examine them, and he will see but one purpose in them all ; 
it was io degrade the valtie and shrmk the volume qf the 
jf>eopl^8 legal tender, raiae the value, and keep up the month 
poly of gdd and ailoer, and especially of gold — tu a dasa 

This is Vie •mhjle secret ; and as a consequence, our l^al 
tender, till very lately, was kept below par to specie^ by de> 
nying it the poww of a full legal tender ; and the process 
of funding has been going on, until all the Government 
money, introduced into the circulation and business of the 
country, and to which " the whole business of the country 
was conformed," was shrunk from a volume exceeding 2,000 
millions to the present volume of greenbacks, about 350 

Bemember, every dollar of the funded debt now in exist- 
ence,wasat one time, in the shape of " legal tender" — not 
greenbacks, only four hundred and twenty millions were 
greenbacks— but legcA tOTtder, and designed, made for, and 
introduced into the circnlation of this country in payment 
of labor and property, received and used by the Govem- 



ment ; and the whole bosinesB of the country, ae J'ohn Sher- 
man said, from his seat in the Senate, " wa« cot^ormed to 
the legal tender act" 

It Ib this policy and legislation, that hae brought niin npon 
the bnsineas and laboring portioii of onr eommmiitj. 

If theee axe facta — and they are nndoobted facte of public 
record — they are ample to accoout for the present state of 

Hence, it is the design of the National Party, as Senator 
Jonea says, " to undo the unwitting and blnnderiog work of 
1873, and to render our legislation on the subject ctf money 
conformable to the Constitntios of our country. 

We cannot, we dare not avoid speedy action on the sub- 
ject. Kot only does reason, jastice, and authority unite in 
urging us to retrace oar steps^ but the organic law com* 
mands os to do so ; and the presence of peril enjoins what 
the law commands." 

The American people have come to know, that our coun- 
try has been subjected to a cruel financial policy — a policy, 
that has (as I have said) converted the people's money, 
which was actually foond circulating as a national cur- 
rency, at the dose of the war, and which should have been 
permitted to remain, in some form as legcd, tender, into a 
National debt, paying interest in gold. 

Knowing this, we mean to undo this policy, resdndthose 
** Acts of funding" and pay the National debt; we mean 
to do this according to the provisions of law, with Jtutioe 
towards the bondholders, and with juatioe towards the people 
of this country — we mean to do this, at the earliest oppor- 
tnnity, consistent with all just and l^;al engagements to the 

I do not mean to aecnse our political opponents on this 
great national qnestioii, either of insincerity, want of patri- 
otism, or any determination to distress the people, to gratify 
their own ambition or lust of gain ; though I cannot except 
all, from this class ; but I do think both onr rolers and the 
people need more Ught on this sid^ecL 



H7 long life has made me know, that smceri^ is not al- 
ways the evidence of correct principlea. 

I hare learned, tliat even so great and so good a man as 
St. Panl — even he onoe — veriJy believed, that he was doing 
Qod service by hauling men, women and children to piisou 
and to death. 

The nnmber of deaths^ occasioned by the mistaken zeal 
of St. Panl were insignificant, when compared with the 
thooaaads, that have died and are dying of starvation in this 
conntiy, and the many, who have taken their own lives to 
get relief from their present suffering condition. 

In conclasiou, this policy of fnnding the people's money, 
under the notion, that it is a mere debt to capitalists, so as 
to deprive the people of the use of their money, after hav- 
ing conformed their business to its use, mnst be reversed. 
It is the " er6<Mi of a great ccnmiry cut -wp into arnaU pieces^ 
as Secretaiy Chase termed it, " amd circtdated at mauey" 

The people prefer this form of their credit ; " redeem- 
ing" it constuitly, as it passes from hand to hand, as money 
or legal tender ; and made receivable or " redeemable " for 
all taxes and dues to the Government We can keep this 
money on a par with coin, by simply giving it the same 
f miction as coin — a ^peife<A legal tender / and keeping the 
nation out of debt to foreigners, and e^pede^iy to Boin>- 
B0LDEB8, paid in gold. 

Tliis may not please a certain class, who hold the chief 
control of the coin of the world ; and who desire the high- 
est interest for money, made from the sacrifices and toil of 
the million ; but it is for the interest of the working msssee, 
who will then have the diance to receive the wages, doe to 
their labor. 

It is the last and most fervent hope c^ my old age, that 
these truths Will be recognized by the people in time to 
save themselves from the min and distress, which has al- 
ready &Uen on bo many ; and finally introduce the only 
policy in the financial affairs of this people, that can secure 
the permanent prosperity of the country. 



ThiB policy may be thas briefly expressed : First, let all 
that passes as money in this ooantry be the legal tender of 
the United States, and receivable eqaally with coin, for all 
the taxes and dnes of Government — not eabject to be fund- 
ed ; and let it be limited in volume to the present funded 
debt of the United States. This sum, by a constitutional 
provision, shall not be increased, except by a fixed regulation, 
keeping it, per oajnii, according to the increase of the popu- 
lation, in time of p^eace ; and in time of war, changed only 
by a rote of two-thirds of the States, aa other provisions of 
the Constitntion require. 

Good Govebnuent. — Appeal to au. Leqiblatobs, Editobs, 


The experience of a long life has compelled me to believe, 
that the Constitution has made it the imperative duty of 
Congress to take and hold the entire control of all, that 
should ever have been allowed or used as money for the na- 
tion's trade and commerce. All atricles are measured and 
weighed in reference to the amount of money, that would 
be a jnst equivalent in all the varied exchanges, where one 
form of laboi' and property is given for others. 

The failure on the part of the general Government to 
obey the first mandate of a Constitution, that rests the 
power of coining money and regulating tlie value thereof in 
the United States, without directing whether it should be 
coined from gold, silver, copper, nidiel, or paper. 

The regulation of the value of money can only be accom- 
plished by a law of Congress, that will declare the exact 
amount, which may be legally collected for the use of, or in- 
terest on, money. 

According to Spaulding's " Financial History of the War" 
(p. 201), the public debt of the United States stood on the 
books of the Treasury, October 1, 1865, at a total of 
$2,803,549,137. According to the same author, who ia a 
strong advocate for specie payments (page 10, Introduction), 



oat of Hob debt, in 1864, ** the inSatiiig paper isBaee, ont^ 
standing, were over, $1,100,000,000,"— and gold reached 
its highest qnotation, 2.85. 

Now, be it remembered, that althongh a few money-chang- 
ers, specnlatore and importers were willing to give $2.85 of 
p^er for one dollar in gold, yet the people were using this 
paper to buy fionr and exchange their commodities at priceS) 
that were far less than this inflated price of gold. 

Gold was no longer the standard of exchange, except 
foreign commodities, where " balMices*' had to be paid 
gold. The internal trade, commerce, and indnstries of th 
conntry were steadily increasing, and never before so flourish- 
ing as during the time of this famine for gold. In an evil 
hour it became the policy of this Government to reduce all onr 
paper currency to tlie standard and par value of gold. This 
was attempted by the withdrawal of the paper cmrency as 
fast as practicable, and by absorbing the same, by an arbitrary 
law, into a debt for so much gold as the face of the paper, 
in the shape of gold bonds, bearing the yearly interest of six 
per cent, in gold I In the course of less than eight years this 
change was eSected, and the people's money and currency 
of all kinds were reduced subsequently from $2,192,395,527, 
as represented on the Treasurer's book on September 1, 
1865, to the sum of $631,488,676, on the Ist of November, 
1873, making a reduction of the currency in eight years of 
$1,561,906,851! (See Congressional Jieoord, March 31, 
1S74, speech of John M. Bright, of Tennessee.) This 
brought on the panic of 1873 and all our present financial 
troubles. Although a part of lliia vast sum was a kind of 
currency, that drew interest, and, therefore, partook also of 
the nature of an investment, yet as Mr. Maynard, Chairman 
of the Committee on Banking and Currency, said, from hia 
Beai in Congress, on occasion of Mr. Bright's speech, " those 
issnes were engraved and prepared in a form to circulate aa 
money, and, as a matter of fact, did so circnlate," until 
either they were funded or " the interest accumulated so 
as to make them superior to the ordinary class of currency." 



But this BtQpendons decrease in the people's money — the 
Tery tools of their trades and enterpises of every description, 
the use of vhich they had fairly earned by the blood and 
sacrificee of a great war, and the beneficial effects of which 
were proved by the great activity in business and trade, which 
it engendered as long as it lasted — this great redaction in the 
money of the people was made by methods eqnally unjust, 
as they were disastroas to the prosperitf of the country. 
This paper enrrency was absorbed by interest-bearing gold 
bonds, booght by the paper, which in its turn had been pnr- 
diased by gold at 40, 50, and 60 per cent, discount ; thus 
turning the debt of the country to one of twice its value in 
paper, and pajdng for the gold bonds at half their value in 
paper. This was done at a time, when this paper currency 
was doing the nation all the good, that so much gold could 
do for our donsestic prosperity and trade. The people were 
building up the country with a I'apidity unexampled before, 
with this paper, which, if it had been fully honored by the 
Grovemment that issned it, and received for all imports, 
duties and debts, and allowed to be exchanged at par for 
bonds at an equitable rate of interest, would not have per- 
mitted any preminm of gold. 


In ISTd, a fortunate incident for America happened ; the 
crops failed all over Europe, which forced the people to look 
to the United States for supplies. This brought millions of 
gold, that seemed like a special Providence; for wi&ont it 
onr unwise specie resumption wonld have brought ruin all 
over the country ; becanse our real estate and other commo- 
dities would have been at the mercy of foreign and domes- 
tic gold-mongers, in whose favor Congress has been legislating 
since 1863. 

Now (1880) Europe has average crops, and we cannot 
expect the millions of gold we had last year. Let us hope 
the specie resnmption will prosper withont European gold. 



that relieved the pressure, in 1879. Snch iin anfortiinate 
incident for Europe, and fortanate for America, it is to be 
desired, will not soon occur. What then will prevent gold 
BpecolatioQ, pressure and ruini Congress should at tlie 
earliest opportunity create a currency, based on the property 
of the nation, reserving gold merely for foreign exchanges, 
BO that speculators' could not interfere with it. The people 
are now need to, and prefer a national paper currency from 
a ten cent, to a one Iinndred dollar, bill ; there % no reason 
why they should not have it ; being their only salvation 
from knavishly contrived periodic gold panels by holders of 
gold in our own and foreign countries. 

Aa a further evidence of the danger, that must result to 
the American people by onr present system of National 
Banks, authorized as they are to issue paper money, "prom- 
ising" to pay gold and silver on demand, it should be re- 
membered, that no ten yea/rB have passed in the history of 
our country without a failure of our banks to pay coin. 
This danger was made to appear in all its frightfal propor- 
tions by the testimony of Mr. S. B. Chittenden, Member of 
Congress from Brooklyn, given before a Congressional Com- 
mittee in 1 874, appointed to inquire into the National Bulk- 
ing System. 


" I believe that, of 1,000 National Banks, there are not 
two-thirds in number sound to-day — I mean, two-thirds in 
nnmber. In the vast proportion of them the capital is v^y 

I know, for instance, how one National Bank was estab- 
lished, and I presume there were hundreds established in 
the same way. 

I say I know a National Bank of $100,000 capital (so 
represented), where a broker in New York purchased tlOO,- 
000 in Government bonds and paid for them. 

The owners or organizers of the bank furnished the mar- 


corn" Ain> PAPEK crmitENCT. 191 

gm between the ninety per cent, in currency, which, they 
were allowed to draw on deposit bonds, and the cost of the 
bonds, and that mai^n was aU the capital thai was everjmt 
into the hank. [And tliat $100,000 didn't go to the bank- 
it went to pay for the bonds.] 

The broker sent the bonds to Washington to get his $90,- 
000, or ninety per cent, on the dollar in national bank notes, 
already having tlie margin from the gentleman, who estab- 
UsKed the bank, while he reimbursed himself with the $90,- 
000 in national bank notes drawn on the bonds. 

The bank was one of the first to suspend in the crisis of 
1873, hot resumed again shortly, and is going on as before. 
It has a han&in<f house which cost over tidrty thousamd dol- 

There yon have the facts in a nnt-ehell ; and Mr. Chit- 
tenden never having manifested thefiret symptoms of Green- 
backism, bnt being a well-known bitter opponenE of the 
" people's money," his testimony should be accepted as con- 

It will be noticed particnlarly, that there was " not a d(A- 
lar in the bank " of which Mr. Chittenden testifies — and 
that "in a vast proportion of the banks the capital is very 

It would be safe to " strike an average," and place the 
bank capital at ten per cent. " cash," and ninety per cent. 
" confidence." 

The testimony of Mr. Chittenden will show, tliat onr pre- 
sent system of National Banks is a moneyed power, that is 
more able to infiict on the American people the greatest 
possible amount of Buffering, like that which is now passing 
the real estate of onr country, rapidly out of the handa of 
the maDy into the poaaession of the few. 


I do heartily agree with Senator Jones, when he says that 
^the present is the acceptable time to undo the onwitting 



and blimdermg work of 1873 ; and to render onr le^slation, 
on the subject of money, consistent with the facta, concern- 
ing the stock and supply of the precious metals throughoat 
the world, and conformable to the Constitution of onr 

I sincerely hope, that the concluding adrice of Senator 
Jones will m^e a living and lasting impression, when he 
says, speaking to the Senate, "We cannot, we dare not, 
avoid speedy action on the subject Not only does reason, 
justice, and authority unite in ur^ng us to retrace onr steps, 
but the organic law commands us to do so ; and the presence 
of peril enjoins what the law commands." 

The Senator states a most important fact, and one that 
all know to be true, " that by interfering with the standards 
of the country. Congress has led the country away from the 
realms of prosperity, and thrust it beyond the bounds of 
safety." He says, truly, " to refuse to replace it upon its 
fonner vantE^ ground would be to incur a responsibility 
and a deserved reproach, greater than that, which men have 
ever before felt themselves able to bear." 

Why the Senator's patriotic advice was not taken, those 
who listened to, and n^lected it, best know. 


It is worth while to observe, that Sir A. Alison, who 
Bpeaks so wisely on this subject in reference to the history 
of his own country, while scanning a few years ago the pros- 
perity of our country daring the war of the Bebellion and 
immediately after, has a foreboding of what might happen, 
and remarks : 

"The American Oovemment may make financial and 
legislative mistakes, which may check the progress of the 
nation and counteract the advantages, which paper money 
has already bestowed upon them ; they may adopt the un- 
wise and unjust system, which England adopted at the dose 
of the French war ; they may r^lve to pay in gold, and 



with low prices, the debt contracted with paper, and with 
high prices. Bat whatever thej maj do," he adds, " nothing 
caa shake the evidence, which the experience of that nation 
daring the last six years affords of the power of paper 
monej to promote a nation's welfare." 

Conversation at my honse with Hon. S. B. Chittenden, 
Chairman of Committee on Cmrency : 

Mr. Chittenden said, that he came expressly to get me to 
join with him in a suit before the Snpreme Conrt of the 
United States, to get a doeision against the legality of the 
greenbacks. He occupied nearly half an hour in presenting 
bis side of the case, to which I had given close attention. 
Soon after I bad commenced to show the impolicy and the 
impropriety of each a conrse, he became impatient and wanted 
to go. I reqnested him to hear me as patiently as I had lis- 
tened to Iiirn. Mr. Chittenden said his mind was made np ; 
he was going to the Snpreme Conrt to get a decision. 

I urged him to give me twenty minutes, as I felt very 
sure, ^at I could convince him and show, that there is 
nothing to go to the Snpreme Court for. 

He then said : " I will acknowledge, that you have sown the 

seed, which baa sprouted and taken root, and the people will 

have the greenbacks sooner or later, unless a decision of the 

Supreme Court can be obtained, pronouncing them illegal." 

Pbteb Coopek. 


" Let Congress make our greenbacks fundable at the pleas- 
ore of the holder, in bonds of $100, |1,000 and $10,000, 
drawing interest at the rate of one cent a day on each $100 
(or $3.65 per annum), and exchangeable into greenbacks at 
the pleasure of the holder. 

" Now authorize the Treasurer to pnrctiase and extinguish 
our outstanding bonds, so fast as it is supplied with the 
means of so doing by receipts for customs or otherwise, and 
to issue new greenbacks whenever large amounts shall be 


194 conr and paper cfrrekot. 

required, every one being fundable in Bums of |100, $1,000, 
$10,000, ae aforesaid, at tlie pleafiure.of the holder, in bonds 
drawing an annual interest of $3.65 in coin per annum, and 
these bonds exchangeable into greenbacks whenever a holder 
ehall desire it. 

Onr greenbacks which are now rirtnal falsehoods, wontd 
be tmtliB. The Grovemment would pay them on demand in 
bonda as aforesaid, which is in substantial accordance with 
the plan, on which the greenbacks were first aatborized." 


" Ko observer can fail to see, in the measures, which the 
banks forced the Treasury to submit to, or deluded it into 
adopting two distinct intentions. Daring the war, every 
effort was made and every trick used to artificially and nn- 
necessarily depress the national credits, so that capitalists 
conld buy its bonds at the very lowest price. As soon as 
the war stopped, every expedient was resorted to by capi- 
talists to artificially and unnaturally raise its credit and in- 
crease the burden of the debt, which they had bought at less 
than fifty cents on the dollar. 

For instance, tlie original treasury note was receivable 
for duties and imports, and oould be exchanged for a 5.20 
bond. The money changers forced the Government to re- 
peal these two provisions, making the greenback not receiv- 
able for duties or the bond. The capitalists then forced the 
Grovemment to create two methods of payment, one to its 
common creditors, contractors, soldiers, laborers, etc, in 
greenbacks; a second to bondholders, whose interest was to 
be paid in coin. These changes probably cost the nation a 
thousand million dollars, and put the amonnts into the 
pockets of bondholders during the war. 

After the war, or just at its close, the bonds were relieved 
of taxation, and in 1869, made payable in coin. It is far 
within the truth to say that these two meaaures unjustly and 
unnecessarily inf»^ased the burden of the people's debt by 



another 81,000,000,000. Then, in 1865, b^an the policy 
of contractioD ; and in 1878, silver was demonetized — two 
measures, which have cost the nation at least double what the 
war cost, probably ^10,000,000,000, by the b'ankruptcy they 
have created. 

This, briefly, ia the history of the Bepublican party's 
financial management dnring the last eighteen years," etc. 

The pretentious of those, who are attempting to drive 
this country back to the barbarism of a metallic basis for 
oar cnrrency, are fast giving away for want of argument. 
It is being discovered, that all the great writers, who have 
analyzed the eabject and viewed it from a scientific stand- 
point, came to the coDclosion, that paper is snperior to metal 
for a cnrrency, etc . . . 

* That a system of bills of credit, made a general legal 
tender, is practicable, is proved by the fact, that the French 
Grovemment has made and maintained a legal tender paper 
drcnlation throngh one of the fiercest and, to them, the 
moat disastrous ware of modem times ; and, liaving paid a 
thousand millions of indemnity, their paper money is to-day 
nearly on a par with gold. This is because the Grovernment 
took its own paper for all dues, instead of discrediting it, by 
not taking it, as onrs does. They take their paper also for 
French Government bonds, which has resulted in the public 
debt being mainly due to their own citizens, instead of for- 
eigners, as oars- is to-day, thos becoming a perpetoal tax on 
the resources of the country. 


The following statistics from the London Eoonomist dem- 
onstrate the fact, that the expansion of French Government 
l^al tenders has kept pace with the accumulation of specie, 
and materially develops the home industries of that country ; 

" Of legal tenders in April, 1869, the circalation was 214 

* From my ftddreaa to the Union hengae Club, pnbUBhed In the Xho 
TeHc TrSntnt, Uwch D, 1877. 



million doUars, and in April, 1876, 494 millionB, beiag an 
increase in eeren years of 280 millions, or 130 per cent 

Of specie and bullion in December, 1869, the stock was 
247 million dollars, and in November, 1876, 432 millions, 
or an increase in seven years of 185 millions, or 75 per cent." 

In 1792, the kings, hy divine right, thoughi they musi 
league against France and restore a king hy dwine right ; 
hut they lea/med a lesson, that ta%tght them to let Fnmee 
manage her own internal chairs, in 1876. 


To the above we append the following snggestions from 
John Earl Williams, President of the Metropolitan Bank of 
tills city : 

" I wonld Bug^iest : That Congress assnme, at once, the 
inherent sovereign prerc^tive of a Government ' of the 
people, by the people and for the people,' and exercise it by 
furnishing all ^e inhabitants of the United States with a 
nniform national currency 1 Snrely the people, and the 
people only, have a uatnral right to all the advantages, 
emolument, or income, that may innre from the isene of 
either $1,000 bonds with interest, or $10 notes withont, 
based on the faith and credit of the nation. 

This principle, simple, clear and nndeniahle ought to be 
recognized as fundamental, and the only safe and proper 
basis, on which may securely rest all the circulating medium 
of the country, for the sole benefit of all the people, and 
not, as now, for the profit of a class of stockholders, how- 
ever deserving they may be in all other respects. 

To carry into efFect this principle — to substitute United 
States notes for bank-notes — take away, as soon as practi- 
cable, and for ever, all circulation from banks. 

They would do a strictly legitimate business as 'banks of 
discount and deposit; knowing that whatever leads to the 
prosperity of the whole people must be beneficial to the 
banks ; but leaving the ri^t where it belongs, to the United 



States GoTernmeDt, to snpplj the whole ciroolfttiiig medium 
of the conntry. 

In this connection we most remember, that banks are the 
creatureB of law. The laws, which created them may, by 
virtue of riglitB reserved, be amended, altered or repealed. 

To those, who are disposed to complain of the change as 
a hardship, one is tempted to ask, what natural right a dozen 
stockholders have to receive notes from Government to cir- 
calate, that any other dozen men do not possess I" 

As this gentleman was an eminent banker, his opinion 
must have weight. One thing is certain, that the national 
debt can never be. paid by a Ch^vemmental policy, that 
shrinks the cun-ency, destroys values, paralyzes industry, 
enforces idleness and brings wretchedness and ruin to the 
homes of millions of the American people. It is equally 
true, that Americans can never bny anything cheap from 
foreign countries, that must be bought at the expense of 
leaving our own good raw materials onosed, and our own 
labor nnemployed. It ehonid be remembered, that neither 
gold, silver, copper, nickel or paper are money without the 
stamp of the Government apou it The Constitution has 
made it the duty of Congress to coin the money of our 
country, regulate the value tiiereof and fix a standard of 
weights and measures, as the only possible means, by which 
commerce can be regulated between foreign nations and 
among the several States. 

Seventeen years ago, I held it to be unsafe for the public 
welfare, as I now do, to allow banks to incur liabilities, pay- 
able in specie, on demand, by issues of paper and loans 
many times the amount of the specie they held in their 
vaults, or could obtain from any source, for the immediate 
payment of their notes in gold, on demand. This demand 
was made with all the accompanying disasters of wide- 
spread ruin and interruption of credit and industry, in times 
called "panics." The effect of the panic of 1857, and the 
causes are very clearly detailed in Mr. Caldwell's work on 
" Ways and Means of Payment ; " p. 485, etc . . . 



It is of the grefttest importance, that all the paper money, 
allowed by the Government, ehoold be made ae unyielding 
in its power to pay debts as the yard-stick or the pound 

Our Gorenunent, having been literalty compelled to iasne 
and use a legal-tender paper money, in order to save the 
nation's life, hag, by its nee, cansed the whole property of 
the country to be measured by its purchasing power. By 
this use of paper money the Gloveroment has created a most 
solemn obligation on its part to do no act to increase or di- 
minish the amonnt of paper money beyond the absolute 
DeceseitieB of the Oovemment As «d increase of the 
amount would inflate prices, without increasing real valaee, 
in the same proportion a diminution of currency must cause 
all property to shrink in price, and thereby put it ont of ^e 
power of tlie people to p^y the national debt. 

I do not believe in the good poli^ of selling Grovenunent 
bonds, as s means of resuming specie payments, as it will 
soon be drained from na again, leaving our paper as it was 
before, irredeemable in gold ; nor io the purchase of sOver 
to take the place of the best small cnrrency our country has 
ever possessed. It was a currency, that served the country 
without interest ; and gave back to the whole people what- 
ever was Aw2 orwomoutin the public service. But let thecnr- 
rency at all times be interconvertible with interest-bearing 
hands, and let the GU>vemment, not only make its money a 
legal tender, but receive it for all dues, and w^ shall hear no 
more either of " inflation "or of " depreciadoD." This is 
my doctrine " in a nut-shell." I believe with Jefferson, and 
many of our wisest statesmen, that our general Ooremment 
is as much bound bythO'Oonstitation to hold the entire con- 
trol of all, that is allowed as a legal money measure, in the 
regulation of trade and commerce, as tbey are bonod to fix 
a standard for the pound weight or the bushel measure ; 
and that this measure of value should be made as unfailing 
and unalterable as possible. 



Wkbstbb teUsiiB: 

*' W^ien all our paper money is made payable in specie on 
■ demand, it will prove the most certain means, that can be 
used to fertilize the rich man's field by the aweat of the poor 
man's brow." 

It will do this by easoring the periodical return of those 
scenes of panic^ pressure, general baukmptcy and min, that 
hare so often changed the values of all property and labor, 
some twenty-fire or fifty per cent, in a single year, whenever 
it was for the interest of foreign creditors or merchants at home 
to withdraw a few extra millions from onr banks, as they 
did in '57, when a withdrawal of only seven millions pro- 
dnced the panic of that year, which sunk the values of all 
the property of our country to the amount of thousands of 
millions of dollars. These millions wei-e taken from the 
farmers, mechanics and merchants, who were in debt, and 
put in the possession of those, who had the means to buy at 
the ruinous rates, at which property of all kinds was com- 
pelled to be sold, thus making, as it ever must, the rich 
richer, and the poor poorer. 

,There can be no security for any man, that is in debt, until 
our general Government shall perform its most important 
duty, which is not only to establish a just system of money, 
but a system of legal tender paper, in amount equal to the 
amount put iA circulation at the end of the war by the 
neoeesities of the Government ; for labor and property had 
been given for every dollar, allowed to circulate as money. 

Such a Ic^l tender paper would be a bond and mortgage 
on the whole property of the country, and a bond of nnion 
among the States, and would leave gold and silver to be an 
article of commerce in the hands of those who hold it. 

Free trade is beautiful in theoiy, and will be in practice, 
where all things arc equal and peaceful in the relations of 
nations, and rapid transit shall go far to annihilate space. 

Our Gtovemment, having allowed and used paper money, 
until the day's labor has been made to cost at least one-third 
more than a similar day's labor would cost in other countries, 



to bring about an eqnality in trade, will require a tariff, 
based on the difference in the cost, that will purchase a day's 
labor in oar cooatr;, as compared with that of foreign conn* 

If the farmers desire to secure for tliemselves a reliable 
market and the Iiighest price for their product, tbej must 
use the means best calculated to effect that object — they 
must encourage the manufacture of the articles they consume 
and haye them made as near their homes as possible. This 
should be done wherever good raw materials can be found, 
tltat can be put into forms of usefulness with as small ex- 
pense of labor in this country as in any part of the world. 

If I am not mistaken ourcoontry will rise out of its great 
embarrassment in a way, that woidd astonish the world, if 
onr Government would perform what was and is its first and 
most important duty. 

The Constitution made it the duty of Congress to adopt 
measures, that will " establish justice ;" that is the only 
means by which the " common welfare can be promoted.'* 

To establish justice for a nation, there must be created and 
maintained a jnst and uniform system of money, weights, 
and measures. 

Geohge W. Dead tells us : 

" Our Government can only hold its power as a free bjb- 
tem by avoiding in future all special, partial, or class l^isla- 
tion, and by the enactment of only such general laws as aie 
necessary and indispensible to establish justice. Justice can 
only be established * and the general welfare promoted ' by 
the Government holding entire control over all that is al- 
lowed or intended to measure or weigh the different forms 
and values of labor in its course of exchange from one per- 
son to another. 

The unparalleled prosperity of France, fresh from her dis- 
astrous war, can only be attributed to her wise protective 
policy, which results in having annually a balance of tradeof 
over one hundred millions in her favor. 



I favor a free liBt and low duties for all Deceseaiy prodac- 
tions imported, which we ourselves do not produce and 

A tariff for revenne, and not for the protection of Ameri- 
can industries, wonld quickly cause our great Republic to be 
reduced to the level of European countries — for workingmen, 
a country to migrate from, to seek elsewhere work and a liv- 

Our American people cannot support all other nation's in- 
dustries and our own beside, as low duties now cause us to 
do. A tariff law for American industries alone wonld dis- 
solve this ruinons and unnatural division of our market, as 
was found necessary to do after the bankruptcies of 1837 
and 1867, to our country's immediate relief from depreasion 
of business." 

Entreaties and petitions remained unanswered, while thon- 
sands of indnstriona men and women were Buffering for the 
want of the people's money, removed from circulation by 
special and class legislation. Yet see how one of onr lead- 
ing papers speaks of the ample currency given to the nation 
in 1865 : 

" The necessities of the war, the law of self-preservation, 
the providing for the common defense, and the general wel- 
fare, gave us a currency, Augoet 31, 1865, according to the 
report of the Secretary of the Treasury, as quoted by the 
New York TiTtiea in 1873, of $1,552,914,892.67. 

Consisting of — i 
United States notes, greenbacks, and frac- 
tional currency 1459,505,311 51 

National and State bank notes 260,189,478 00 

L^al-t^der certificates of indebtedness, 

6 per cent 85,095,000 00 

Legal-tender temporary loan 107,148,713 00 

Legal-tender 6 per cent 83,954,230 00 

L^-tender 8.65 per cent. 217,024,160 16 

Total $1,162,914,893 67 



— l^al tender money for the most part, and all in circnla- 
tion as money throughout the conntry. 

To this circulation also properly belong the 7.30 interest 
notee ($830,000,000) which, nnder the acts of Jime 30, 1864, 
aad March 3, 1865, were cnrrency accordiag to Mr. Spinner 
in his letter to John G. Drew, which read as follows : 

" Mohawk, Angoat S4, 1876. 
Dkab Sm : Yoiir letter of the 15th instant is received. 
I hare to say that the 7.30 Treaetuy notes were intended, 
prepared, issned and need as cnrrency. 

Very reapectfolly yonrs. 

F. E. SpMintE." 

Here the New York l^mea congratulates the conntry on 
acquiring a national cnrrency, while the Secretaiy of tlie 
Treasury urges its contraction^ as shown by what follows : 

Mr. Secretary McCulloch, in his annnal report to Con- 
gress in 1865, in which he waa m^mg upon Congress the 
adoption of the contraction scheme, says: "The people are 
comparatively fre^from debt." 

This he gives as a reasou why it is safe to enter upon con- 
traction — that contraction, which has rained and pauperized 
one-half of onr [>eop1e. Who can portray the experience and 
soffering of the American people since that fatal honrt 
Hoping, that the people may arouse and take the Grovem- 
ment once more into their own hands, and that our civilization 
may be made better through our great suffering, I will not 
trespass further upon the time of the House. (This is part of 
a remonstrance, uttered in the House by one of its members 
against contraction.) 

All the invalidating financial laws were passed in direct 
opposition to the warning advice, ^vea by your present Sec- 
retary Sherman, when in the Senate, 1869. He then des- 
cribed, in language never to be forgotten, the scenes of 
misery and min, that would come upon our country as a 
oonaeqiienoe of taking away £i-om the people the legal money 



they had received in payment for all the labor and property 
they had passed into Uie poasesfiion of the Gorenunent, in 
exchange for the I^al dollars tliey had received. Se(a«taiy 
Sherman was right, when in the Senate, 1869, he declared, 
that " every citizen in the United States had conformed hie 
bnsiness to the l^sl tender clause <rf the law, regulating the 
currency of the country." He said that " the i^preciation 
of the currency is a far more distroBfiing operation than 
Senators snppoeed.'' 

I am glad to find that those, who are striving to drive onr 
eonntry back into the " barbarism " of a metalic basis for 
cnrrency, are fast giving way for want of ai^ument. It is 
being discovei-ed, that all the great writers, who have 
' analyzed the subject, and have viewed it from a scientific 
standpoint, came to the conclneion, that paper money is 
tuj>erior to metal for a cnrreniy. 

It would seem 08 though a I'residetit'wiih his Cabinetand 
Congress, -with such adoice and facts of past esspmience b^ore 
thein, might have avoided a rej/etition of similar distress and 
ruin to their couTiiri/, in 1873. If the resuyn^Oion act was 
due to ignorance or carelessness, it should he reprehensible / 
andf if due to anything else ii should be j>unished as treason, 
heing unconstitutional, etc. ... . 

Extracts from two letters to his Excellency, President 
Hayes, June 1, 1877, and August 6, 1877 : 

Your noble course has, thus far, inspired the people with 
the hope and trust that you will, in the providence of Qod, 
be onr country's Moses, to lead the people from a threatened 
bondage, that now hangs over the liberties and happiness of 
the American people. 

Tliis bondage has its manifold centre and its secret force 
in more than two thousand banks, that are scattered throngh- 
ont the country. All these banks are organized expressly 
to loan out their own money and the money of all those, 
who will entrust them with deposits. These loans are made 
to men, whose business lives will soon become dependent on 
money, borrowed from corporations, that have a special 



interest of their own. Such s power of wealth, under the 
control of the selfish instincts of mankind, will always be 
able to control the action of our Government, nnlese that 
Gtovemment is directed by strict principles of jnsttce and of 
the public welfare. The banks will favor a course of spe- 
cial and partial legislation, in order to increase their power 
— " for even the good want power ; " they will never cease 
to ask for more, as long as there is more, that can be wrung 
from the toiling masses of the American people. 

Such a power should never be allowed to go out from the 
entire and complete control of the people's Government. 
The struggle with this money-power, intrenched in the spe- 
cial privileges of banks, has been going on from the begin- 
ning of the history of this country. It has engaged the ' 
attention of our wisest and moat patriotic statesmen. Frank- 
lin, Jeffersop, Webster, Calhoun, Jackson, have all spoken 
of the danger of such a power, and the necessity of gaard- 
ing against it. 

In the opinion of Thomas Jefferson the Constitution has 
made this subject clear, plain and positive. He says: 
" Bank paper must be mppremed, and the circulation mutt 
he restored to the nation, to whom it belongs." 

The present Secretary of the Treasury, Hon. John Sher- 
man, speaking in the Senate, when the subject of regulating 
the currency was under consideration, declared it to be a 
fact, that " every citizen of the United States had conformed 
his business to the legal tender clause." That Senator, fur- 
ther declared, as appears by the Congreeaional Secord, 
that " if the bondholder refuses to take the same kind of 
money, with which ho bought the bonds, he is an extortioner 

and a repudiator ^here is no sueh burdensome 

loan negotiated by any civilized nation in the world as our 
five-twenty bonds, if they are to be paid in gold," And yet 
these very six per cent, bonds, that were issued under a law, 
that made them payable in the currency of the country, have, 
by a most orud and unaccouniaUe change in the law, been 
made payable in gold — tlie very bonds, which had been sold 



It from forty to sixty dollars in gold for one hnnred in cnr- 
rency, thereby caasing a debt, that now hangs like a millstone 
on the neck of the nation. 

I find myself compelled to agree with Senator Jones, 
vhen he says, that " the present is the acc^table time to 
undo the nuwitting and blundering work of 1873. . . . 
We cannot, we dare not, avoid speedy action on the sab- 
ject. Not only does reason, justice and anthorit^ onite in 
niging U8 to retrace oar steps, but the organic law com- 
mands ns to do BO, and the presence of jwril eryoi/na what 
Ae law commands." 

I have ventured this long letter in the firm belief, that the 
adoption of a permanent, nnfluctuating national currency, 
as before stated, equal to the amount actnally found in clrcn- 
lation at the close of the war, and that amount , ahali never 
ie increased, only as per capita with the increase of the in- 
habitants of onr conntiy — such a measure of all internal 
values, with a revenue tariff of specific duties to be obtained 
from the smallest number of articles, that will give the 
amount needed for an economical Government — ench a 
national policy would introduce prosperity once more into 
the trade, commerce and finances of this country, etc 

Real estate has depreciated to less than half of what it 
would have brought four years ago ; much of it cannot be 
sold for any price, or mortgage for one-quarter its value. 
The thriving and enterprising fanner of the West, especially, 
feels this rise in the value of money, as compared with labor 
or property. "With the hardy toil of years, he has opened and 
improved his farm, and the comparative small loan, which laid 
but a light weight on the resources of his land in prosperons 
times, and with a sufiiciency of money, is now threatening to 
swallow np the labor of his life I Even the banks aud the 
loaning institutions, not being able to invest their money on 
" good securities," are embarassed on both sides — the failure 
of their debtora, which throws so many of the securities on 
their hands, and makes " bonds and mortgages " a " glut in 
Uie market," and the difficnl^ of making any new loans or 


306 oonr and papee ouerenct. 

inTestmeDts — eo that money " goes ft beting " at one and a 
half and two per cent., etc 

In M« year 1865 there waa in the hmds of ike people as 
a owrrenoy ^BS^w head; in 1875 (Aa currency of aR kinds 
waa only a liiiie more than tlTper head. 

You may call this currency a vast debt of the people, as 
it was in money — every dollar of it. It was paid by the 
GJovemment " for value received ; " it was used by the peo- 
ple to pay their debts, to measure the value of their prop- 
erty, and, as your present Secretary of the Treasury said in 
hia seat in the %^T\B.\a, " &very <Atizen. of the UnUed States 
had corformed hit huemeas to the legal tender dauae." 

This currency was also the creature of law, and under the 
entire control of the Government, but held in trust for the ben- 
efit of the p^ple, as are all its functions. Was it either jnst 
or humane to allow $1,100,000,000 of this currency, a large 
part bearing no interest but paying labor, and fructifying 
every business enterprise to be absorbed into bonds in the 
space of eight years, bearing a heavy interest, of which the 
bondholder bore no share ) (See Spaulding's "History of 
the Currency." The Government seemed to administer thia 
vast currency, as if there were but one interest in the nation 
to be promoted, and that the profit of those, who desired 
to fund their money with the greater aecurtiy, and to make 
money scarce and of high rate of interest! Thia is the 
issue if ^ hour ; thia is the haitle of the people and for the 
people, in which the present administration is oaUed upon to 
dedare which side it wiU take, etc. .... 

If the people can look for no relief from the present Con- 
gress and Administration — if those, who now sway the 
financial interests of the country, cannot see tlieir great op- 
portunity — then new men must be chosen by the people, 
whom they can trust to make laws and execute measures, 
that " shall secure the blessings of liberty to themselves and 
their posterity." 

I appeal from those, who seem insensible to the cry of the 
people, to the people themselves. I appeal from the politi- 

' D.qit.zeaOvGoOt^lc 


csl parties, organized to control the Gk>veniment, and die- 
tiibate the o£BceB and emolnments of office to the great in- 
dustrial claases, who are organized to protect their IntereBte 
and obtain some recognition of their rights from the Got- 
emtnent. Let them snbstitnte co-operation for "strikes," 
and unite to eave themfielves and the country from the pres- 
ent disaster and distress to all the industrial classes. Let 
no man think of the bullet, while he has the ballot in his 
hand. It needs but the use of that simple instrnment of 
political power to, rectify alt our discontents and social evils, 
for Webster tells ns : " Power was given to Congress over 
the cnrrencjr and over the money of the oonntrj." 

Let ns have our national currency daily honoi-ed ; let ns 
take the testimony of the nation's experience, and that of 
other countries, as to what such currency can do for our 
prosperity ; let tlie gold par be reached by rendering our 
currency of higher and indispensable nsea, as now exempli- 
fied in France, and not by contracting its amount; and let 
its volnme and its value be determined by the iTtieroonveri- 
iUe bond, placed at the disposal of the wants of the people 
and governed by all the forms and sanctities of law ; and 
not snrrender the currency to the ever-changing basis of a 
commodity like gold — and we shall have peace on this ques- 
tion. " Justice will be established and the general welfare 
promoted ;"^ prosperity again will re-visit ns, and we shall 
vindicate the wisdom and superiority of our free institutions 
before the world. 

France, with her 600,000,000 of legal paper, has kept her 
industries im>fitably employed by keeping her paper receiv- 
able for all forms of tat^a, d-utiee, and d^f>t8. 

My views upon the currency I have heretofore briefly ex- 
pressed as follows : 

The worth or exchangeable valne of gold is as uncertain 
as odier products of human labor, such as wheat or cotton. 
The exchangeable value of anything depends on its convert- 
ihUUy into something else, that has valne at the option of the 
ittdividtteU. This rule applies to paper money as to any- 



thing else. Bat how ehall GoTemment give an exchange- 
able valne to a paper currency ) Can it be done by a stand- 
ard, which is beyond its control and which natnrally flnctn- 
ates, while the BigD of exchange, indicated by the paper, 
remains the same ( etc .... 

The time has come, when the daims of a common human- 
ity, and all that can move the manhood of an American cit- 
izen, mnst nnite in a demand for an act of common justice, 
now due to the American people, who have saved onr comi- 
try from min, and will, I trust, forever* protect it. The 
Constitntion has made it the first and most important duty 
of Ckingress " to establish Justioe, insure dome^ iranquU- 
lUy, provide far the common defence, promote the general 
welfa/re, and secure the Ueasmga of liherty to ourselves tmd 
ow poaterity." 

In all I have written and quoted from writings of others, 
my object has been to impress on the minds of the American 
people the unmeaanred importance of a strict compliance 
with the letter and spirit of a Constitntion, that requires the 
establishment of justice, based on a naiiojud currency as unr 
fiuctuating as possible, which alone can guarantee to this great 
and glorions country a Republican form of government, with 
the blessings of liberty secured to ourselves and our posterity. 

To complete this appeal to my countrymen, I add the fol- 
lowing system of finance, devised by the veteran financier, 
Silas M. StUwell, author of the beneficent " Stilwell Act," 
and father of our " Greenbacks," wrongly attributed to Sec- 
retary Chase.* , 

"The Cause ai?d Cube of Natioral asd Iitdividual 
Djbtbbss in the TJinTED States. 
To Mtf Produomg Classes m the Union: 

The great oppression yon feel to-day is produced by J)eU 
and its unfailing attendant, interest or nsnry. 

*ABBtat«d bj Edirard JoTdoii,"EBq., prlvkta Bacretsrj uid confldentUl 
friend of Chief Jnnloe Chue, to a reporter of the New Toik Oraphie, 
September 21, 1878. 



The qnestion most vital to the material intereata of the 
people is : ' How shall we get relief from the hnrdea of deht 
and taxation.' 

The diBtinctioa made by law between convertible and in- 
convaii3)le property, is the great objection to debt and credit. 

All property is directly or indirectly the prodnct of labor, 
and wonld be equally convertible, if the laws did not make 
an m^rwry diatiDctioD. 

Money is always in a amveiiihle condition, and will pay 
all debts. Other property is not bo convertible, and will not 
be received in payment of a debt 

An increase in the volunw of money is the only remedy 
for our present grievances. — Debtors with mwnoertihh 
property are everywhere, while monopolists and nOTt-pro- 
dncers hold all the money. 

A debt of one thousand dollars will, and often does, take 
by force from the debtor, a farm, a hQuse, or other property 
that has cost the owner Un thousand dollars. 

DM, DM is eoerywhere, and. can be paid only with 

It has been incorred by States, cities, counties, towns, vil- 
lages, corporations and individuals to an amount fearful to 

Kine-tenths of the nnprodactive real estate in oar coun- 
try is tottdly unsalable, and will not bring, at public aoction, 
the tax charged upon it. 

This mighty and ghapUy inc\^mt must be removed. 

It is the ' nightmare,^ that sita upon and robs the debtor 
and producer of rest and sleep, and the citizen of his bu*th- 
right, ' Life, hberty, and the pursuit of happiness.' 

We have a right to repeal the obnoxious law, that makes 
one thing oojvoertibte and another ZTUxmvei-tilde ; but, at this 
time, we propose to change it, so far only as to increase the 
vdlMme of money, and pay the debts of the people through 
the agency of the States. 

Our plan is lirief and ^^in : 

By an estimate carefolly made, we learn that the lawful 



cnrrency'of oar conntry in time of peace and general proa- 
perity, ia a population of fifty or sixty millions, shoald no^ 
he less than two thousand m-iUiona of dollars for permanemt 
dOTnestic tue, in loeal trade and commerce among oar people. 

The great credit we now enjoy as a nation, is produced 
by the 'peaceful Union^ of these States. Therefore, we 
propose to appropriate a part of this credit to the direct ■ 
benefit and pecuniary relief of the States and people, who 
have produced this ^peaceful Unwn.' 

The power to produce money or tokens of leffol valve out 
of anything, is the ezclnsiTe right and duty of Ck>ngre8S. 

In coontries where education, character, credit, and ciml- 
ieation are not known, the anthorities coin and circulate 
metal, according to a standard of metal value. Bnt where 
civilisation, ed^tcaiion, and good government are found, we 
nee credit, as and for money, in the place of an expensive 
and cnmbereome metal. 

By using credit as money instead of metal, we save the 
interest on ttco tlionsand miUions of dollars in currency. 

And as money is a continuous necessity in all our States, 
and cannot be dispensed with or reduced in volume without 
great loss to the people, there is no demand for a redemption 
fund, and will be none as long as the nation exists. Thns it 
is, that this vast sum of money in greenbacks will bear no 
interest and require no redemption fund. This is the logical 
reward for a '■peaceful UnionJ' 

This sum of money in greenbacks we propose to divide 
among the severed States of this Union aocordinff to popula- 

This plan and proposition will be not only a, Just, but a 
graceful act. It will do more to harmonize and fraternize 
the feelings of the people of the whole Union, than any 
other legislation can do. It will be ' killing the fatted calf.' 
It will restore to the people the money they earned and ac- 
cumulated daring the war, and which was unjustly taken 
from them. 

A feeling of relief txom debt will he pleasant to all, and, 



as it will be tlie effect and reeolt of the *peao^id Union ' of 
these States, each one and all will rejoice, that the Union 
has prodnoed snch happy ooDseqnences. 

As this numey will not be a loan, bat a free * cotuAUu- 
tional ' g^t from the pec^le to the people, it should be so 
divided among the States, that every citizen' ahonld repre- 
■ sent an integral part of the whole snm. 

The States dionld be required to pay all State and mimi- 
cdpal debts, before appropriating the money to any other 

In oonnection with the deliv^y of this aum of money to 
the States, each State should be required to enact laws, that 
shall reduce the rate of interest to four or five per cent., and 
prohibit every State and every mnnicipal body, <9«ated by 
the States, to contract any bofided debt. 

To encourage cash payments and discourage the creation 
of debts, a law should be passed declaring, that after this 
plan of finance shall be approved, aU new debts shall be 
debts of Aonor only, and no com^; shall have power to en- 
force the payment of such debts. 

'Y\\\i politico-^KacisA system will be acceptable to every 
patriotic, good, and wise person in the Union, and will be 
strenuously opposed by monopolists, asnrers, and tlidr paiti- 

By tiiis great scientific ^an aS our States and people will 
feel the value and beneficence of a '^peacef'td Union * and be 
relieved from debt without the payment of one ddllaa-; while 
every creditor will be paid in money without lost of princi- 
pal or interest. 

The payment of State and mnnicipal debt will set free an 
enormous amount of capital, which will seek reinvestment, 
and not only rednce the rate of interest, but will enter into 
all the bneinees enterprises of the (Kmntry, that are now 
languishing for want of capital. 

In this plan we claim for the States and people, from the 
federal power, the exduswe use of the rigAt to create a cup- 
ruicy for the people — NOTHma uosb. 



As the cmrency is lor d(miestic use otdy, it is proper that 
the people should be allowed to choose the kind of monej 
they will employ in daily transactions. None but monop- 
olists and uBQrers would deny them this right. 

This plan is so plain and practical, that we place it before 
yoQ in the shape of a question, tbos : 

Will yon use greenbacks for all domesi/ie purposes, as and 
for money, and have your debts jHtid for yoo, — or will you 
refuse the greenbacks, and remain burdened with debt and 
taxation V 

I believe this system, enacted into law by the next Con- 
gress, would canse oar coontry to enter upon an miparalleled 
career of prosperity, secure our free institutioiiB for ever, 
and stimulate other nations to imitate onr example in finance 
and Republican forms of Government. 

Most respectfnlly, 

Peteb Coofeb. 

P.S. — Should any reader of the preceding pages mi»- 
nnderstand my wishes, let me state them in concise lan- 
guage. I desire: — 

J^rat. A national paper currency', issued solely by the 
Government, and made the only le^ tender, receivable for 
all taxes and dues, and fundable at any time for an equit- 
able rate of interest, by being made interconvertiUe with 
the bonds of the Government. 

The volume of this currency must be determined by law, 
as^r capita. 

Second. A tariff not simply for revenue, but made dit- 
erimi?iati7ig and helpful to all the industries of the country, 
where the raw material and the labor can be fnmiahed by 
our own people. 

Third. A "civil service," divorced from party politics, 
and organized for the public service, as are the departments 
of the army or navy, purely on personal qualiScation and 
tiiorough fitness. TTie offices to be held during good be- 
havior, on moderate salaries, but pensions provided for all 



disqaaliEed hj age or Bicknese, and a proviaion made for tbb 
widows and orphans. 


All those, who faror a porelf national aurency, must re- 
joice to find ezprebeioDS like these in Secretary Sherman's 
letter to the Bayers' Association, at Sarat^^a, August 12, 

" The wigdom of the Svihiyeanm/ system, estdblisked m 
1846, w not to-day guestdoned h/ any one, ^. . . . 
Eoery cowniry should have not only a aovnd and v,nifoTm 
currency, hit should have of it auch an amount as its huai- 
nits may reqmre, etc." . . . 

These ideas show, that the Hon. Secretary has not en- 
tirely changed and abandoned the opinions he uttered on 
contraction in the Senate 1869, as qnoted pp. 32 and 33, — 
and that he may yet aid the real patriots to establish a 
pnrely national paper cnrrency, as proposed in the preced- 
ing pages, thns giving to the nation all the benefit granted 
by the Constitution, and not to a few bankers and capital- 
ists,* who can at any tune expand and contract the national 
currency, and thus derange the business operations of the 
whole country. 

This letter indicates that the Secretary has no settied 
ideas concerning finance. Perhaps, while he was writing it, 
he remembered his solemn declaration to the Senate, that 
" eo^y eitisen in the United States had conforjned his "busi- 
ness to the legal tender da/tue" and that contraction " would 
he an act of f<^ without an eaample of evU in modem 

Address on the occasion of introducing Eepresentative 
De La Uatyr, at the Hall of Cooper Union, Febrnaiy 20th, 

Ladies and Gentlemen : We have met, my friends, to 
hear a speech from a gentlemeoi, a Repreeentaive of the 



[^ple in Oongrws, ob one of the moet important snbjectB, 
that can engage the attention of the American people. 

I will not anticipate, hy any long address, what may be 
said more fitly by the gentleman, who has kindly consented 
to address ns to-night. 

Bnt I desire to eay, diat it is <Htly by snoh open and 
thorong^ diBeaB8i(»t8 of the financial policy of the Giovem- 
ment, that the people can be brought to a ri^t nnderstand- 
ing on this great and all important qnestion. By this 
method alone ve may h<^ to settle in a peaceable way the 
diepntes, that hare arisen ont of a conflict of opinion on 
those great rested interests, now at war with the best into'- 
ests of this glorions oonntry. 

It is time for the American people to know, that they 
have not yet conquered all opposition to their inalienable 
rights. They have not secarely achieved their tme independ- 
ence of foreign Governments. This greatest achievement still 
remains nnaccomplished. 

It is to obtain their financial independence, and the right 
to control their own finances, in a way that will " establish 

This whole problem of a nation's financial independence 
may be stated in a few words. 

The Constitution has made it the dnty of Congresa to take 
and hold the entire power '* to coin money and regulate the 
value thereof," to the exclusion of all other forme of money. 

When a man canries his bullion to the Government Mint, 
and has it stamped into coin, it is his own property and his 
own money, that is stamped, and is simply anthorized and 
endorsed by the Government, who alone has the power to 
create legal money. 

When a Bank goes to the Government, to anthorize, and 
endorse notes as money, it simply makes use of the Govern' 
iiient authority to set its own price on the property and 
credit of the Bank. 

Bnt, when a people issues its own money through the 
Government anthority, and pays it ont for value reoeived, 

■ D.qit.zeaOvGoOt^lc 


in the shape of labor, service or oomniodities, needed for its 
own tue, then it ia their own credit, and their own moue;, 
that IB supported b; the enterprise and property of the 

This is what we demand in behalf of the people ; this is 
what is denied under one preteict or another hj those, who 
think, that their own peculiar interests or privil^ea are 

Bnt it is " an irrepressible conflict ; " and who doubts but 
what it must and will go on, ontil this great question is 
settled either in the despotism of an dUgarohiy of money, or 
i]} tlie triumph of the people. 

If the people have a " right to life, liberty and the porsnit 
of happiness," they have a right to control the cause that 
oono^HB their lives, their liberty and their happiness more 
than any other cause ; and that is the true financial policy 
of this Government. It must be a policy, over which the 
Qovemment can exercise an entire control. 
. Thia financial policy has hitherto been conducted in the 
interest of a class, and not of the people. 

!N'o better proof of this can be given than that, foimd in 
the history of this country for the last twenty years. 

On the threshold of a great civil war, which threatened 
the very existence of the nation, the capitalists of this coun- 
try and of foreign countries, were unwilling or onable, to 
supply the wants of the Government for money on a specie 

They offered their credit only without specie redemption. 

It was then that a great statesmen, the Secretary of the 
Treasury, rect^ized the fact, that the credit of a Govern- 
ment, such as ours, was worth more than that of all the 
banks of the country, united to that of all the capitalists in 

Secretary Ohaee resolved, as he said, to "cut np the credit 
of the country into small pieces of paper, and circulate them 
aa money." He did so; and more than $2,000,000,000 of 
legal tender found its way into the hands of the peopl& 



It wft8 purchased by the people's labor/servioe and com- 
modities, which might have drawn the sam^ in gold and 
Eilver out of the mines. It was, at onco, put by the people 
to the most indeepensable uae, — that of paying all debts, 
incurred for labor, service or commodties, all over the coon- 
try. It paid for all the labor and maintenance of the poor, 
and supported the enterprises of all business. 

It was a most cruel outrage on the rights of the people to 
turn all but a fraction of this real money, so earned and 
paid for by the people, into a bonded debt, paying interest 
to those, who hare been relieved from taxation, both State 
and National. , 

This is the great wrong, that the American people have 
suffered at the hands of their rulers. This wrong must be 
redressed. Justice must be established as the only means by 
which the domestic tranquillity of this great nation can be 

We meet here to-night to invoke the attention of the 
American people, in this Great Hall, devoted to the promo- 
tion of art and science, and to the welfare of the whole 

I recommend, therefore, the Hon. Mr. Be La Matyr, to 
the respectful attention of this audience. 

His commanding position, as a Bepresentative of the peo- 
ple, his snperior attention and study of the financial subject, 
and his great zeal in the cause of a tme national currency^ 
qualify him to iustmct the pablic. 

He will show yon how unjust and cmel have been the 
financial laws, that have been passed for the last few years. 
They have filled, a great and prosperous country with the 
desolation of a large portion of its business, and have forced 
idleness and pauperism on thousands of its honest laborers. 

" By their fruits ye shall know them ;" these are the fruits 
of a legislation, which degraded the people's money, by re- 
fusing to receive it for duties and the interest of the pnblic 
debt ; which promised coin for the interest and principal of 
the public debt, when that was known to be a physical 



and moral impoBsibility ; and the whole credit of the cur- 
rency was made to rest upon how little coin wonld be called 
for; B legislation wliich has finally placed a bonded debt 
of two thoneand milhoDS as a yoke upon the necks of this 
people, under the pretence of their obligation to pa; for a 
currency, that had already been paid for by the labor, ser- 
Tice and commodities. It is no more a debt, than the gold 
and diver, won from the mine by labor, and stamped by the 
Grovernment as money. 

To know the real duties of every administration of oar 
Oovemment, and the spirit and purpose of every law en- 
acted, we must alwaya recur to that grand preamble of our 
Constitution, that condenBes all a nation's wants into these 
few words ; 

" We, the people of these United States, in order to form 
a more perfect union, establish jastice, insure domestic tran- 
qnillity, provide for the common defence, promote the gen- 
eral welfare, and secnre the blessings of liberty to ourselves 
and onr posterity, dp ordain and establish this Constitution 
of the United States of America." 

Pbtee Coopkb. 

Hon. FsrsB Coopgs. 

Mt Yenebated Ffiiran) : Many thanks for proof sheets of 
your able pamphlet. I am gathering facts for a speech on 
"The Folly of Substituting Paper Currency, based on 
Specie, or Interest-bearing Bonds, for Money." 

I desire to present facts as concisely stated as possible. 

Nearly every fact, contained in yonr article, I need. \ I 
have outlined my speech — 

1. What is money! 

3. The instances, in which paper money has been resort^ 
to in national exigencies, and the results. 

3. Commendation of paper nLoney by prominent states- 
men, and writers, on political economy. 

4. Instances in which corrency, not money, has failed and 
the results. 



fi. Cost of HabstitatiDg national bank cnrreucy, based on 
intereHt-beariiig bonds, for money, in our recent historj. 

I am decidedly in favor of internal improvemeuta. I be- 
lieve we ooold employ the idle in such works, and by that 
meana, posh into circulation the proper amount of money. 

Yon see my plan of a speech is in accord with your article, 
and if it please you, I will use yom- facts. 

I desire to pnt facts in aU the points above noted, in sach 
a conciee form, that our people can have them at band, and 
that they may convince ^, who will ooneider them. 

May your life, which has been a perpetual benediction to 
the poor, linger long in its serene evening, diffusing bless- 
ings. Its influence shall live and widen forever. I con- 
gratulate yon on the rich eouBcionsness of such a life. 
Eeapeotfnlly yours, 

G. Db La Mattb. 

AsnoLB ON THB CuBBENOT, 1881. 

Section 9 of the Constitntiim says : 

" Ko money shall be drawn from the Treasnry bat in 
conseqnence of appropriation made by law ; and a r^ular 
statement and amount of the receipts and expenditures of 
all public money shall be published from time to time.'^ 

The money, transferred to the National banks, is issoed 
in balk, not by •oia-iue of appropricUiom. The isene is not 
for the benefit of the Government, nor for the benefit of 
the people. It ia issued solely for the benefit and profit 
of individuals, in defiance of that general welfare, which it 
is the duty of the Government to secure, and of the fore- 
going provision, etc. . . . 

It is an inexcusable, unnecessary, and unequal favoritism 
to, benefit a privileged class. It is inexcusable, because 
the Government should issue the currency, as it does the 
greenback, and thus save an enormous bounty, taxed npon 
the non-bondholding masses, thus violating that equity 
and justice it is the duty of the Constitution to preserve. 

It is unnecessary, for the people prefer the greenbaok-^ 



it promotes no pa1>lic good, but is a never-ending paUic 
danger to promote private interests and corporate profits. 

It is unequal favoritism, giving to 2,400 banks, millions 
in yearly bonnties. It gives to bonnty<fed ^jecnlators the 
power other capital cannot enjoy.- It plaoes in the hands of 
a few the right to dominate over the necessitiee of labor, 
of business and of values, etc . . . 

It is based on individual cootrol and individnal credit. 
The one is the passion of an hour, the other ie ae fickle as 
chance ; and these features are all there is of the National 
bank system. 

Jefferson, Franklin, Hadison, Jackson, Calhoun, Benton, 
and a long line of statesmen and judges, whose names are 
Identified with national jnri^mdence in every State, have 
declared against the del^ation of the power to coin, issue, 
or regulate the money of the nation to banks and bankers, 
and it is time, that an end should be put to it. We have 
learned to appreciate national resources and credit as the 
basis of national money, and national financial power, as 
distinguished from individual financial power, etc. . . . 

Whether the people will longer tolerate individnal money, 
controlled by individnal speculators and corporate combina- 
tions, to promote personal aggrandizement, and consent to 
be taxed to sustain a favored class by exemption from taxa* 
tion. Whether they will longer submit to having bounUes, 
taxed upon labor and production to sustain an unconstitu- 
tional, impolitic, dangerous monopoly, combined into the 
almost limitless power of the Bank Association to fojce a 
currency upon the country, which individuals can expand 
and contract at their pleasure, which threatens to master 
and control Congress by its power to ^eep alive privileges, 
bounties, and all the outrageous usurpations money can 
make profitable, and all the power corruption and privil^e 
can wield to subdue the people. The voter must decide it. 
The decision can safely be entrusted to bis inteUigence, to 
bis common sense, and, above all, to the duty he owes to 
himself, to his fellowmen and to his country. 



We call opoD the fanoers, the workingmen, the busineas 
men and all, who love free institntionB, to join ue at the 
polls in voting awa^ this onconBtitntional hank cnrreocy, as 
one of the most dangerooB evils, that threaten a constitn- 
tional Government and the liberties of tiie American people. 
Let ns miite aU oar efforts in the overthrow of this greatest 
of all monopolies, the monopoly in money : and let ns secnre 
for the people a correncj, that shall be the nnSuctnating 
measure of all values, receivable for all taxes, dnties and 
debts ; a currency, that is both Bepublican and Democratic 
in its morals, social, political and commercial influences. 
Snch a currency the United States legal-tender Treasoiy 
notes only can give. 

In the thouBandfl of docnments I sent into eveiy part of 
onr country, my object has been to show, that the Constitu- 
tion has made it the solemn duty of Congress to take and 
liold the entire control of all that should ever have been 
aUowed or used as money. 

As a part of my long continued efforts to obtain for our 
country the inestimable blessing of a national currency I 
sent a petition to the Senate and House of Eepresentatives 
on the 14th of December, 1862, at the very time, when 
Secretary Chase declared to Aw confdential advwer, S. M. 
Stilwell, that he had hundreds of thousands of dollars of 
bills audited without a dollar in the Treasury to pay them. 
Petkb OooPBat. 

A Steictlt National Papbe Cdbbenot, based on National 
Taxation, is the Cheapest, Safest and most Conven- 
ient Medium of Ezohanob fob a Bepcblic. Apsil, 


It will always be a cause of r^ret t» every right mind, 
looking back upon the wants of a great people in ita depi-ivation 
of a currency, which might have been utilized without dif- 
ficulty in making exelianges, that it was left to the tender 
mercies of local banks. Jefferson, the author of the Decla- 



ration of Independence, raised his voice gainst the cnrse of 
the local banks, which were allowed to come into being by 
the neglect of the Govemment in the performance of its 
datj, and in the payments of its debt in some form or shape. 
The Gk>vemment shoold hare given to the country a steady 
corrmcy it so much needed, and which the people had eveiy 
reason to hope for and expect ; because all the Provinces 
had been in the habit, for a number of years, before the 
Bevointion, of issaing what was then known as Colonial 
Treasnry Notes ; these notes were made receivable by the 
several Provinces for taxes ; and anything the Gk)vemment 
would accept for taxes, everybody was glad to take in ex- 
change for every other kind of property. These Colonial 
notes, being adopted by all the Colonies, led to an unex- 
pected degree of prosperity, so great that, when Franklin 
was brought before the Parliament of Great Britain and 
questioned as to the cause of the wonderful prosperity, 
growing up in the Colonies, he plainly stated, that the cause 
was the convenience they found in exchanging their various 
forms of labor one with another by the paper money, which 
had been adopted ; that this paper money was, not only 
used in the payment of taxes, but in addition it had been 
declared legal tender. It rose 3 and 3 per cent, above the 
par of gold and silver, as everybody preferred its nse. One 
of its advantages was its security against theft, as it could 
be easily carried and hidden, on account of its having no 
bulk, as all kinds of specie necessarily most have. After 
Franklin had explained thia to the British Government as 
the real cause of prosperity, they inmiediately passed laws, 
forbidding the payment of taxes in that money This pro- 
duced such great inconvenience and misery to the people, 
that it was the principal cause of the Bevolntion. Afar 
greater reason for a general 'uprising, than the Tea and 
Stamp A,ct, was the taking away ofihepa'peT money. 

One of the best buBiness lessons of my life I learned 
some sixty-five years ago, at the time of what was then 
known as General Jackson's war upon the United States 


2ks coin ahd papeb oukeenot. 

Bank. I thonght, that I saw, as did Oeueral JackBon, the 
terrible danger, which resalted from tmowing coipomtione 
to control the money of the country. Eren in the hands of 
a good man, boi^ an instittition as the sec(md United Statee 
Bank, chartered with the privilege of controlling a capital 
of $38,000,000, loaning, aa it did, $4 in paper for erery 
dollar it controlled by its charter. That bank had the priv- 
ilege of opening a branch in every State, with anthority to 
isaae what was called United States money, based upon this 
charter, which was actually obtained by giving S1,MH),000 
to the Oovemment, and, as Mr. Benton says, in his " His- 
tory of Thirty Tears in Congress," the advocates of thid; 
bank spent $3,000,000 in bribing Senators, members of the 
House of Kepresentatives, and editors of newspapers for 
the accomplishment of their purpose, etc. .... 

The tenjHtnics in the money market, that I have myself 
witnessed have been bronght about by the people becoming 
dependent for their business operations upon bank accom- 
modationa, which have been too suddenly withdrawn from 
them, BO that they have had to make the most heart-aching 
sacrifices to pay the banks, etc . . As I now recollect, I think 
that even a barrel of flour rose to t^e price of $18. 

It should never be forgotten, that the amount of notes, 
^ven out during the EebelUon, were declared legal dollars, 
every one of them ; and they were actually paid ont to the 
soldier, sailor, farmer, mechanic and laborer as legal dollus 
for all the forms of labor and property, that was conBumed 
and nsed in the prosecution of that terrible war. This 
money, so spent by the people's Government, was ihe pric« 
of the nation's life, and should be regarded as the best 
investment ever made by Congress. Although it did save 
the nation's life, it might have been done with a far less 
amount of issue, had they continned to guide their course of 
legislation by the advice of Thomas Jefferson, who it is said 
framed the Declaration of Independence, and declared, 
that the taxing power was amply sufficient to meet every 
possible contingency, and, to nse his own words : " Treasniy 



notes Bhonld be iesned, bearing or not bearing interest, as 
the case might arise " ; and, in case of war, shonid be issned 
withoat interest, but still made positively l^al dollars, each 
dtdlar, being in fact, as valid as a legal mortgage on Uie 
whole property of the conntry. As it was entirely out of 
the power of the people to pay it at once, a necessary and 
f»<oper law should have been passed, making the amount of 
money, so found in circulation at the close of the war, the 
nnfloctnating measnre of all valnes for all time to come ; 
that it should never be allowed to increase only as per 
capita^ with the increase of tbe inhabitants of the conntry. 
All must see, tJiat a currency, so issued for the salvation 
of the country, shonid have been regarded as the richest 
treasure a nation could possess, and if its purchasing power 
bad never been interfered with, by preventing it from being 
accepted in payment of duties on imports and interest on 
bonds, this money, instead of being less in value, would 
always have had a preference to gold and silver, as it actually 
was with the Bank of Venice, the paper circulation of which 
ran timmgh a period of more than 600 years, always being 
of greater value tlian gold and silver, and even was considered 
so much higher in value, that the Government had to pass a 
law, declaring it unlawful for any man to take more than 
twenty per cent, premium on this paper money. During 
that whole period of 600 years of Venetian paper money, 
there is no account of any panic having arisen there at any 
time. Their credit remained perfectly good, until their 
conntry was over-run by the army of Bonaparte. So it 
would be fonnd with the Treasury note of our own Govern- 
ment, if it would only give to the American people the 
simple amonnt of l^al dollars, actually found in circulation 
at the close of the warj giving a return for every dollar of 
money, paid ont by the Government to the people for value 
received. Had this been continued with the nnfiuctuating 
measnre of all values, thousands of millions of dollars wpuld 
have been saved to the American people, which have now 
been lost, giving us instead national demoralization as a 



recompense for the tmconstitntional, inTalidating financial 
laws, that have been paeeed. It must be apparent to all, 
when the knowledge of these facts comes to be tmderstood 
by the people, and when they come to be fully impressed 
with the cmel injtiBtice, that has been done them by passing 
laws, which Secretary Sherman assured them, as I have eo 
often published : " After every citizen of the United States 
had conformed his business to the use of that money," and 
fm-ther added : " To take that money from the people would 
be an act of folly withoat parallel in ancient or modem 
times." He farther ABenred them in a speech, made at 
Cincinnati, " that this money coiild not be taken away from 
tlie people without bringing npon them scenes of wretched- 
ness and ruin," such as no Senator has better described than 
himself. In the face of all these facta, which must have 
been known to President Hayes, he yielded to the impor- 
tunities of bankers and money dealers, and vetoed liie bill, 
that had been paBsed by Congress for the people's protection. 
How comprehensive were all such subjects to General Gar- 
field, when he declared in Congress ; " Whoever conimAa lAe 
volume of ourreTicy is (Solute master of the wdu^ry <md 
commerce of the cownta^." 

" Corporations are fast becoming the curse of modem life. 
They usurp the powers, that belong of right to the com- 
munity and its Government, and actually ^reaten the lib- 
erties of the ' people. The individual capitalist is often, l£ 
not generally, a benefit to the community. ' He respects pah- 
lic opinion. He cares for the approval and regard of hu 
fellow-citizens. He has hiunan sympathies and a conscience. 
He generally uses his wealth for the public benefit in in- 
direct, if not in direct ways. But, when he combines with 
other capitalists in forming a corporation for special objects, 
and puts his money in it, the thing he helps create ie utterly 
destitute of personal or human qualities, and is often man- 
aged in absolute disregard of the rights, the interesta, the 



welfare of everybody bnt the men, who own and operate it. 
Every individual, who has a hand in controlling the machine, 
feels absolved from moral responsibility in its condnct. If 
it robs other people, mine their business, iajnreB their ea- 
tates, it IB none of Mb concern and he washes his hands of 
personal gnilt 

Americans rejoice, that they have got rid of kings and 
lords ; bnt they have saddled themselves with corporations, 
which are proving to be harder task-masters, more grinding 
and heartless despots, than any of the old-world t}Tants. 
The railway and mining corporations, in Pennsylvania to- 
day, are more despotic and cmel in their dealings with tbeir 
employees and more utterly indifferent to the rights of the 
pnblic and the welfare of the State, than any Enropean 
antocrat. They set the will of the people £t defiance, and 
by keeping control of the Legislature and pntting their own 
creatures in the State offices, they compel the people to 
obey their will New Tork has an experience of the same 
thing in the Central and Ilndson Biver Railroad. Bnt for 
the Erie Canal, which holds the freight rates on the rail- 
roads down to a low 'point eight months in the year, the 
bnsiness of New York City would be at the mercy of this 
greedy corporation, which pn^ts agents and attorneys enough 
into the Legislatm^ to carry aay measnre it asks for, and 
prevent even an investigation of its doings." 

The laboring part of the community are coming to see 
the caose of the present enslavement to the national debt, 
which theyfind has grown ont of a cnnningly devised sys- 
tem of legislative traps, especially calculated to ensnare the 
weak and unsuspecting part of men, and by that means draw 
from them a large part of the products of their labor, with- 
out giving them any substantial equivalent in any form of 
usefulness in exchange for all the varied products of their 
industry. These things have grown up in our community 
to be a vast monied oligarchy, that now feels its power to 
be so great as to control both the State and the National 
Government in their own interest This is what die fathers 



ftnd foonders of onr conntiy foresaw might happen, when 
Govenimente wonld become cniTupt and adopt means of op- 
pressing the laboring portion of the commimity. 

When a course of systematic oppression has been per- 
sisted in by the Government, so as to establish the fact, 
that the governing are determined on making it a despotism, 
it is then the dnty of the people, as the Declaration of In- 
dependence sayB, to believe, " That all men are created eqnal ; 
that they are endowed by their Creator with certain inalien- 
able rights ; that among these rights are life, liberty, and 
the pnrsuit of happiness ; that to secure these rights Gtov- 
emmenta are instituted among men, deriving their just pow- 
ers from the consent of the governed ; that whenever any 
form of Government becomes destructive of these ends, it 
is the right of the people to alter or abolish it, and to insti* 
tnte a new Government, laying its foundations on such prin- 
ciples, and organizing its powers in such form, as to them 
shall seem most likely to affect their safety and happiness. 
All experience has shown, that mankind are more disposed 
to Buffer, while evils are sufferable, than to right themselves 
by abolishing the forms, to which they are accustomed," 
but when (as it happened within the last eighteen years) "a 
long train of abuses and nsuipations, pursuing invariably the 
same object, evinces a desire to reduce them under absolute 
despotism, it is their right, it is their duty, to throw off such 
Government and to provide new guards for their futnre se- 
cority." Such has been the patient sufferance of the peo- 
ple. With the unconstitutional financial laws, that have 
been passed since 1863, it has become apparent to the thooght- 
ful part of the laboring portion of onr country, that the 
cause of their financial sufferings has grown out of ta course 
of financial laws, which, as I see it, has been in open viola- 
tion of the very first injunction of the Constitntion, which 
declares, that Congress ahaU establish justice, as the only 
possible means, by which liberty and life can be snccessfnlly 
protected against the avarice and canning of those who " lie 
in wait to deceive." 



For my own part I feel a great deal of alarm on acconnt 
of the long persistence of- this train of evils and tlie con- 
sequences, which will naturally grow out of them, and 
which, nnleea carefully dealt with, by giving back to the 
people some evidence, clear and substantial, that the Gov- 
ernment is determiued to protect their nghts and give 
them Bueh relief as their rights demand, there will be every 
reason to regret it Unless this protection is given by the 
Government, we cannot but fear, that the great body of la- 
boring people, who find, that they have been literally legis- 
lated into an enslavement of a bonded debt, it will not be 
much longer patiently borne. It will be the part of wisdom 
of the American Government to take measures, as soon as 
possible, to show their determination to give back to the 
American people in the most convenient form, in which it 
can now be done, the amount of money, wrongfully taken 
from them, for whicli they have given their lives and their 
property of every description during the whole course of the 
late terrible war, and in which they had then taken their 
pay, the Government declaring it to he legal and allowing 
it to be circulated for so many years ; its amount was bo 
great, that it would have bought and sold the value of the 
whole property of the country many times over. Secretary 
Sherman, when in the Senate in 1869, declared the truth, 
when he said, that every American citizen had conformed 
bis business to the legal tender use of that money, and that 
the scenes of wretchedness and ruin must come to the 
American people, if the Government ehonld take that money 
out of circulation, which it so wrongfully did, both as to 
small and large paper currency, and converted the whole 
amount, so taken from the American people, into a national 
bonded debt. 

Tills course of financial policy has been so long insisted 
upon, during and since the late war, that it must inevitably 
attract the attention of the toiling masses, who will see, 
that they have the power of numbei-s, at any time when 
they will it, to change this Government so as to make it 



confonn to the positive reqairemeuts of the Conetitntion 
&Bd the laws, anthorized by it. "We most hold to the 
Declaration of Independence and the CoDStitntion as tlie 
sheet anchor of oor American hope for the continnance of 
the freedom and independence of onr whole country. When 
all hope is blasted by continued oppresBion, it needs no 
prophet to foresee what will he poeaible and certain in the 
ruin, that moet come. We may learn from the prediction 
of an old Boston gentleman, who wrote to me : "When all 
the boiling passions of the American people are wronght 
up against each other, there are no people in the world, that 
will carry destruction to such a pitch as it will then be car- 
ried by the American people." 

All this terrible possibility of min and dostmction, it ia 
now in the power of Congress to avert. It will reqture 
nothing more than to refuse the rechartering of the banks, 
deceitfuUy styled natioTial, and a course of just and equit- 
able financial laws, which will show the whole country, that 
the Government is now determined to establish justice and 
carry the laws into execation in accordance with t&e Consti- 
tution. These laws should, as I have said, give back at once 
to the people in some form, that will moet conveniently ex- 
tinguish the debt, and provide, as the English Government 
lias done, for the saviugs of the common people by a Postal 
Savings Bank, which will furnish money to tlie Government 
for all its purposes, by taking up the unoccupied money of 
the country, the profits of whidh now go into the national 
banking system. To accomplish all this it is only necessary 
to furnish the laboring classes a convenient method of safely 
depositing their unoccupied money at a low, but reasonable 
rate of interest. When the national bonds have been paid 
off, and the money returned to the people, who now own it, 
they will find it necessary to look for honest and trustworthy 
persons, to whom this money can be loaned, wliich will not 
be like loans from a hank, that demands a return of it every 
thirty, sixty, ninety days and four months ; hut it will be 
loaned to responmble persons, who will use it to commence 



some profitable boBuiess, aJlowing them to keep np the in- 
terest and pay the principal at ^eir convenience, when it 
will be reloaned to some enterprising mechanic or working- 
man, who can make a profitable use of it, and the longer he 
keeps it and continues to pay the interest promptly, the bet- 
ter the owner of tlie money will be pleased with the arrange- 
ment. Bach a method of loaning money tends to the moral 
and physical improvement of the whole country. 

It is now known to nearly all throughont the coootry, that 
lai^ bodies of workingmen are united in various forms of 
organization, called Labor Associstione, for their mutual 
protection and benefit. This, it must be seen, will render it 
easy for them to settle npon some plan of operation, which 
they may find indispensable to their safety and happiness, 
and in strict accordance with the Declaration of Independ- 
ence and the Constitution, to unite in a positive demand 
npon the Government for such relief as they may feel to be 
their right, their duty, and indespensable to Uieir fntnre 
welfare. It is now absolutely necessary, that this Govern- 
ment, being Bepublican in form, should make itself a pater- 
nal Government ; otherwise it cannot long exist. 

When we found it necessary to make large payments in 
coin, we realized the great danger, as well as labor, in carry- 
ing it from one city or State to another. The people all over 
oar country sustained a great loss, when they had to give np 
the small paper cnrrency, that had been suthoiized and 
circulated to the amount of some $60,000,000. It was a very 
great convenience and saved much, time and labor in various 
ways to make payments by letter or otherwise witli this cur- 
rency, and this great privilege was in tite hands of all classes 
of people ; and how it could have been so shamefully with- 
drawn, without a petition being sent to Congress from the 
masses, without giving them any voice or expression, is more 
than I can conceive of. I do not see how any one could 
have been found to commit so great an outrage, as taking 
this currency out of circulation, when it was without cost to 
either the Government or people, and this $60,000,000 of 



Bmall paper cnrreiu^ was converted into a national debt, and 
the toiling masaee hare been called upon to paj the interest 
on it from that day to tlie proBent, which muet be continued 
through all coming time, until the debt is paid, which pay- 
ment is constantly being resisted by the 2,300 chartered 
banks, that desire this debt to remain as a means of continu- 
ing their banking privileges. More than thie, it is now found 
tliat $10,000,000 of the small paper currency has never come 
in, and, therefore, if it had been issued by the bankers, they 
would have had the $10,000,000, beBides the interest they 
now have by taking the money of the Government at one 
per cent., and loaning it out at from six to fifteen per cent, 
all of which is a loss to the toiling masses of the American 
people, and all this in the place of the admirable currency, 
that we had at the dose of the war, for which the people 
had given labor and property for every dollar, found in cir- 
culation at that time. 

To allow the profit, accruing from the loss and mntilatioD 
of over $300,0(>0,000 of currency to go to the chartered 
banks, instead of the people, would be very wrong. I doubt 
whether any Kepresentative, now in Congress, wonid cast 
his vote for re-chartering them, if he considered, that his 
vote might give $50,000,000, which are about the loss and 
mutilation of 8300,000,000 in circulation, to say nothing of 
from six to fifteen per oent other banking profits, all of 
which belong to the nation and cannot be constitutionally 
given away by Congress.* 

Government should at the earliest opportunity create a 
currency, based on the property of the nation, reserving 
gold merely for foreign exchanges, so that speculators coold 
not interfere with it. The people are now used to, and pre- 
fer a national paper currency from a ten cent, to a one hun- 
dred dollar, bill ; there is no reason why they should not 
have it, being their only salvation from knavishly contrived 

* Thia article of 36 pages, In psmphlet form, wu mut to ererj member 
of Congress, ^et thej re-cli«rtered these bauka t The reason whj mnat oc- 
our to every tbongbtfol miml. 



periodic gold panics by holders of gold in our own and for- 
eign countries, etc . . . 

All this will show, that onr present syetem of National 
Banks is a moneyed power, which is more able to icdict on 
the American people the greatest possible amount of exiSer- 
ing, like that which is now passing the real estate of our 
coontry rapidly out of the hands of the many into the pos- 
eeasion of the few, which will soon produce here a state of 
things like that, which has caused murder and bloodshed in 
Lelaud, and is now spreading to the Isle of Shye in Scot- 

The moneyed interests of oar conntry have taken the 
place of the enslaving power, that brought on the late de- 
Btmctire war, and it needs but little perception to see and 
judgment to know, that this potent power in our land, aided 
by capitalists in Europe, has introduced and carried out 
measures, that have literally enslaved the millions of inhab- 
itants, who have nothing to sell but their own labor. They 
are now left at the mercy of their employers, who get their 
labor for the somllest consideration, for which it can be ob- 
tained ; then by the vacillating and changeable moneyed 
power, that has been created by our Gh>verDment, enabling 
certain clasees of men, banks and corporations without souls, 
to expand and contract the circulating medium in use 
throughout the length and breadth of our country, to such 
a degreo aa periodically, once in some seven or ton years, to 
bring about a. panic, causing snch pressure and general ruin, 
aa to throw all of these poor people out of employment, and 
leave them worse off, than were the slaves at the South, 
many of whom had good masters to take care of them. All 
this devastation to the millions has been wrought by the in- 
fluence of banks and moneyed corporations, created by spe- 
cial, partial and nnconstitutional class legislation. 

Onr rulers made the same mistake the English Oovem- 
ment made, in taking away from the people their paper 
money, and making what was left subject to be redeemed in 
gold and silver. AU iMs waa done after the looming of 



Sir Archibald AUaon, who so distmctly stated, that ha hoped 
the American Oovemmeni would not Tna&e such a tmstake 
(u did Great Biitain, which he declared had brought npon 
them a greater amount of suSeriog in their efforts to get 
Bpecio payments, thao had been occasioned by all the wars 
and all tlie terrors of peatUeDce and famine, that had fallen 
npon them. Onr Government would not learn bj the ex- 
perience of other powers, but yielded to the importimities 
of banks and bankers, thus forcing otir conntry through a 
similar scene of suffering, wretchedness and roin since 1863, 
costing thousands of millions of dollars in the lessened ralae 
of property, and taking sway the national onrrency in cir- 
culation at the dose of tlie war, for which full value had 
been given, even to the very last dollar, as I have so often 
said. ... 

President Madison, in his meee^e of December 3, 1816, 
said : 

" But for the interests of the community at large, as well 
as for the purpose of the Tressmy, it is essential, that the 
nation should possess a cnrrency of equal value, credit, and 
use wherever it may circulate. The Constitution has in- 
trusted Congress exclusively with the power of creating and 
regulating a cnrrency of that description," etc . . . 

Webster said : 
, " When all onr paper money is made payable in specie on 
demand, it will prove the most certain means, that can be 
used to fertilize the rich man's field by the sweat of the 
poor man's brow. 

" The producing cause of all prosperity is labor I labor 1 1 
labor I ! 1 The Oovemment was made to protect this indus- 
try, and to give it both encouragement and Beenritj, To 
this very end, with tliis precise object in view, power was 
givep to Congress over the jnoney of the country." 

He predicted that conditions, which permitted the rapid 
accumnlation of property in the hands of a few, remit- 
ting the masses to poverty, would soon destroy free iustita- 



Benton said : 

" The Government onght not to delegate this power, if it 
conld. It was too great a power to be tmeted to anj bank- 
ing company wliatever, or to any anthority but to tlie high- 
est and moBt responsible, which was known to our form of 
Gorernment. The Government itaelf ceases to be inde- 
pendent, il ceases to be safe, when the national oorrency is 
at the will of a company. The Government can nudertake 
no great enterprise, neither of war nor peace, without the 
consent and co-operation of that company ; it cannot count 
its revennes for six months ahead witliont referring to the 
action of that company, its friendship or its enmity, its con- 
currence or its opposition, and see how far that company 
will permit money to be scarce or to be plentiful, how far 
it will let the money system go on regularly or throw it into 
disorder, how far it will suit the interest or policy of that 
company to create a tempest or suffer a calm in the moneyed 
ocean. The people are not safe, when such a company has 
Buch a power. The temptation is too great, the opportunity 
too easy to put up and put down prices, to make and to 
break fortunes, to bring the whole community upon its knees 
to the Neptnnes, who preside over the flax and redox of 
paper. All property is at their mercy." 

General Jackson : 

" I submit to the wisdom of the Legislature, whether a 
national one [currency], fonnded upon the credit of the 
Government and its resources, might not be devised, which 
vould obviate all constitutional difGculties and, at the same 
time, secure all advantages to the Government and the coiu- 
try, that were expected to result from the present bank," 

John Earl Williams, President of the Metropolitan Bank : 

"I wonld suggest, that Congi-eas assume, at once, the in- 
herent sovereign prerogative of a Government ' of the peo- 
ple, by the people, and for the people,' and exercise it, by 
fnmishing aU the inhabitants of the United States with a 
uniform national currency. Surely the people, and tlie peo- 
ple only have a natural right to all the advantages, emolu- 



ment of income, that maj inure from the isene of either 
$1,000 bonds with interest, or $10 notes withont, baeed on 

the faith and credit of the nation," etc 

This principle, simple, clear, and mideniable, ought to be 
recognized as fundamental, and the only safe and proper 
basis, on which may secorelj rest all the circulating medium 
of the country, for the sole benefit of all the people and not, 
as now, for the profit of a class of stockholders, however de- 
serving they may be in all other respects. 

To cany into effect this principle — ^to substitute United 
States notes for hank notes — take away, as soon as prac- 
ticable, and for ever, all circulation from banks. 

They would do a strictly l^itimate business as banks of 
discount and deposit, knowing, that whatever leads to the 
prosperity of the whole people must be beneficial to the 
banks ; but leaving the right where it belongs, to the United 
States Ck>Temmeut, to supply the whole circulating medium 
of the country. 

In this connection, we must remember, that banks are the 
creatures of law. The laws, which created them, may, by 
virtue of rights reserved, be amended, altered or repealed. 
To those, who are disposed to complain of the change as 
. a hardship, one is tempted to ask what natural right a dozen 
stockholders have to receive notes from Government to circu- 
late, that any other dozen men do not possess ? As John 
Earl Williams was an eminent hanker, his opinion must 
have weight. 

Allow me to repeat P. E. Spinner's experienee in this de- 
partment ; 

" I had made up my mind that, when I left the Treasury, 
never again to meddle with, or eVen think of, politics or of 
anything in any way connected therewith, and to seek that 
peace and quiet of mind and bodily rest, that a man at the 
age of seventy-three, who has been so actively engaged, 
mind and body, for more than half a century, so mach needs. 
But it now seems to be somewhat doubtful, whether I will 
be able to carry out that, resolve, etc. . . . Educated as 



I was in the hard money school, I have had hard work to 
unlearn what I was taught as being traiBm in political econ- 
omy, and to rid my mind from precoDceived and, as I now 
believe, erroneouB ideas. 

" My experience in the Treasory has been to me a very 
practical school, and I must have been blind not t« have seen 
the errors of the popular theories, that have been so long 
accepted as settled truths by the various commercial people 
of the world, etc. ... I hope to live yet long enough 
to see Congress make a beginning in the right direction, by 
paeeiog an act, anthorizing the issue of a bond, hearing a low 
rate of interest, that can at the will of the owner, be at any 
time convertible into a legal tender Grovemment note, and 
the note, in a like manner, convertible into such a bond, etc. 

. . , Such a currency would at all times adjust itself 
to the exact business wants of the country, and therefore, a 
commercial revulsion would be next to impossible. 

" This ouce accomplished and working, as you and I be- 
lieve it will work, for the benefit of the whole people, other 
important and beneficial reforms would soon follow. The 
Shyiocka foresee all tliis, hence their fierce opposition." 

Sucli advice from a patriot, who was fifteen yeai-s United 
Statos Treasurer during our late war, speaks volumes in favor 
of greenbacks. 

In spite of these warnings, uttered and written by sages, 
statesmen, and financiers from Franklin, Jefferson, and Web- 
ster to Senator Jones, President John Earl Williams, and 
Treasurer Spinner; in spite of the seven and ten; yearly 
periodic j«inicg, that impoverished our farmers, manufactur- 
ers, mechanics and laborers, and enriched the banks and 
capitalists, Secretary Folger a/nd Comptroller Knox seem now 
inclined to ad/oiae the re-chartering of these hanks, deceitfuUi/ 
called national. However, it is consoling to read in rur^ 
patriotic papers: "Tlie people, just awaking from tiieir 
lethargy, and beginning to comprehend the situation, are 
rapidly getting into position to assert their rights in Con- 
gress, and compel this spurious money of the banks to retire. 



Tbe irrepreasible conflict is fairly nnder way, and ia gather- 
ing momeDtmn every day, twth in Congress and also among 
the people." 

This looks as though the real prodncers in this great 
Bepublic felt the necessity of rsisiDg their voice against 
legislation,, that favors the few at the expense of the many, 
which is contrary to the letter and spirit of the Conetitntion. 

Having jnst received the Congresaional Record, of March 
80, 18S2, containing the able speech of the Hon. Bichard 
Warner, M.C., of Tennessee, I cannot help adding tha 
following extract from his wonderf al epitome on oar finan- 
ces and monopolies since 1860 : 

"Free Governments recognize the sovereignty in the 
people. The creation of moneyed and other monopolies 
necessarily extracts froiW the people their Eovereiguty in 
proportion to the nnmbers and powers of the corporations, 
and shears the States and nation of that ranch sovereignty. 
These are the hydra-headed monsters, that sap the life- 
blood and destroy the very foimdation of the Gloverument 
— ^growing in size and strength as the Government departs 
from its original purity, and, unless checked by an npheaving 
of the toiling millions, dwelling on the hills and in the 
valleys of the great agricultural area of the United Stat^ 
and the mechanical and mannfactnring laborers, tliis great 
and glorious sovereignty, purchased by blood, labor and toil, 
this Government of the people, Heaven's best gift to the 
oppressed of all lands, will sink beneath the leaden weight 
of monopoly, and become the prey of oppressors of mankind." 


These banks are very expensive to the people The law 
of their creation was passed February 25, 1863, bnt they had 
no circnlation in that year. Their circulation was — 

In 1864. I 31,235,270 I In 1867. $290,625,379 

In 1865 146,137,800 In 1868 299,762,855 

In 1866 281,070,908 I In 1869....... 299,929,625 



In 1870 $299,766,984 In 1876 $332,998,306 

In 1871 818,261,211 In 1877 317,048,872 

In 1872 337,664,796 In 1878 824,514,284 

In 1873 847,267,061 In 1879 329,691,697 

Lil874. ..,.. 851,981,032 In 1880 843,834,167 

In 1876 354,408^08 

In this connection Mr. Waamer provm, thai the9e gras- 
pwig in^Huiions ha/ue made oui ofthepeqple the enorm&UB 
turn 0^11,848,930,000 wUhin the last sueteen years. They 
have TWt been satisfied wOh their fdbtdous jtroJUs, htt ha/ee 
carried on litigation to he exempt from. State taaxUion. Se 
further observes : 

"Yon have about twenty-two hundred banking corporations 
knocking at the doora of Congreaa to re-charter them for a 
period of twenty or thirty years, as the case may be, and 
leaving a law in exietence, which will permit the chartering 
of as many more if desired, asking to allow the control of 
the corrency to be continued in corporate bodies. I would 
favor the repeal of the law allowing the charter of national 
banks,' refuse to re-enact them, and pass a law winding up 
national banks as soon as their charters expired, taking from 
them the power and control of the currency, placing it back 
in Congress, where the Constitution fixes it. The Consti- 
tution creates but one legislative body, and rests in that 
body the sole and exclusive legislative power. There is no 
eUnse in the Constitution, that gives CoogresB the power to 
delegate legislative power to any other body. It alone can 
exercise such power. If Congress has the power to give or 
delegate to banking corporations power and control over the 
cnfrency to the exclusion of itself, by parity of reasoning 
could tiiey not delegate and give to railroad corporations 
the power and control over commerced" 



Talmla^ Statement <if the United Sl< 
Qovemmeni of ike people, hy the 
people, fr&m 1791 to 1860 : 

rf« D^, under a 
people and for the 






»76,46347e 62 


181,064,069 99 


77,227,924 66 


73,987,357 20 


80,352,634 04 


67,475,043 87 


78,427,404 77 


66,421,413 67 


80,747,558 39 


48,566,406 50 


83,762,172 07 


39,123,191 68 


82,064,479 33^1832 

24,322,235 18 


79,228,529 12 ' 1833 

7,001,698 83 


78,408 669 77 


4,760,082 08 


82,976,294 35 


37,513 05 


83,038,050 80 


336,957 83 

1802 .... .V. 

86,712,632 25 


3,308,124 07 


77,054,686 30 


10,434,221 14 


86,427,120 88 


3,573,343 82 


82.312,150 60 


6,250,875 64 


75,723,270 66 


13,594,480 73 


69,218,398 64 


20,601,226 28 


65,196,317 97 


32,742,922 00 

1809 , 

67,023,192 09 


23,461,652 60 


53,173,217 52 


15,925,303 01 


48,005,587 76 


15,550,202 97 


45,209,737 90 


38,826,534 77 


56,962,827 67 


47,044,862 23 


81,487,846 24 


63,061,858 69 


99,833,660 15 


63,452,773 56 


127,334,933 74 


68,304,796 02 


123,491,965 16 


66,199.341 71 


103,466,633 83 


69,803,117 70 


95,529,648 28 


42,242,223 42 


91,015,666 16 


35,586,858 66 


89,987,427 66 


31,972,537 90 


93,546,676 98 


28,699,831 86 


90,875,877 28 


44,911,881 03 


90,269,777 77 


58,496,837 88 


83,788,432 71 



In this table may be seen, that the fonnders and states- 
men of this free conntry redaced the debt of $75,000,000 
in 1791 to $37,000 in 1835, and only allowed it to reach 
$58,000,000 in 1859 ; hence they conld not see any blessing 
in a national debt 

TcSnAa/r Staiemeta of the United States DMy wnder a 
Government of hankers and monopolists, by hankers and 
monopoUsts amd for hank&rs g,nd monopolists, from 1860 
to 1881 .- 






$64,842,287 88 


$2,353,211,332 32 

1861 .... 

90,580,873 72 


2,253,251,328 78 


524,176,412 13 


2,234,482,993 20 

186S .... 

1,119,772.138 63 


2,251,690,468 43 

1864 ... . 

1,815,784,370 67 


2,232,284,531 95 

1865 .... 

2,680,647,869 74 


2,180,395,067 15 

1866 .... 

2,773,236,173 69 


2,205,301,392 10 

1867 .... 

2,678,126,103 87 


2,256,205,892 53 

1868 .... 

2,611,687,851 19 


2,245,495,072 04 

1869 .... 

2,588,452,213 94 


5,120,415,370 63 

1870 .... 

2,480,672,427 81 


2,000,000,000 00 

In this table may be perceived the machinations of poli- 
ticians, bankers and monopolists, whose deceitful motto has 
been : "A national debt is a national blessing," hence they 
increased that debt from §64,000,000 to $2,000,000,000, and 
funded it for their own beitefit, so as to make it consciously 
or nnconscionsly a stepping-stone for some ambitious dic- 
tator, Cffisar or Napoleon, unless tlio people assert their 
rights. Also this pertinent remark occurs in Mr. Warner's 
able speech, summing up the opinions of statesmen and the 
ideas of the people on this all-absorbing subject : 

" In the origin of our Governments, both State and na- 
tional, a pnblic debt was by our great statesmen held as a 
pnblic curse ; perpetuities were regarded as slavish and de- 



fltrnctive of liberty ; monopolies and great moneyed cor- 
poratioDB as dangerous to a republican form of Govern- 
ment ; but now and for the last twenty years the great mass 
of the legislation has been and is to give them more power, 
lend them more strength, and to extort from the people, 
upon whose shoolders all the burdens of Government rest, 
their euhstance. 

"The rich of the world are wedded to gold, the poor to 
silver and paper money. It is to the interest of the rich 
and moneyed kings to demonetize silver and Treasmy notes 
and make gold the sole currency, because they own the 
gold. Hence the reason of the Conference between the 
moneyed powers of the United States, England, France 
and Germany, that bro);ight about the act demonetizing sil- 
ver in 1872, which was repealed in 1878. It is well demon- 
strated and sufficiently proved, that two thiugs are lodged 
in the people's hearts : First, they will not have silver de- 
monetized ; second, they will have a paper circulating me- 
dium. Money is the great lever and moving power of all 
nations in war and in peace. And when the control over it 
is vested in corporations, they can wield the nation with as 
much power as the Czar of Hnssia, etc. . . . 

" I can now see the cloud of death upon liberty, and fully 
realize the wanung words of Washington — the first in war, 
the first in peace, and the first in the hearts of his coun- 
trymen — in his Farewell Address : * leonjwre you, my cowt' 
tnftn£7i^ to hewa/re of the insidioug vjilea of a foreiffn in- 
fiuence.^ " 

I cannot help expressing mf heartfelt thanks to Mr. 
Warner for his hold and instructive disconne on onr finan- 
cial system for the last sixteen years. I hope his noble 
efforts will be endorsed by the people, who will rise in their 
might to prevent a recharter of these grasping institntions. 

I will express with the fewest possible words the nation's 

If Congress will now withdraw the present volume of 
bank notes, which have been given as a subsidy to the 



bants, aod iseiie an eqoal Tolnme of Treasnry noteB, mada 
receivable for all forms of taxes, duties and debts, and use 
these Treasury notes to cancel the bonded debt, now pay- 
able, or reetore our decaying commerce and provide cheap 
transportation for the people, it will give us a national ear- 
rency as a meaeore of value, as uniform and nnfluctnating 
ae that of the yard stick or pound weight. 

Congress should not adjourn, until it has established a 
Foetal Savings Bank, by which the GJovemment should re- 
ceive on deposit the savings of the people at a low rate of 
interest, say two and a half per cent., or $3.65. 

Millions of money, which are now lost to the Government 
for the want of a perfectly safe place of deposit, would be 
thus loaned to the Government. With these savings of the 
people the Government could pay ofE the large bonded in- 

Confess should j)as8 a law, direcbing the Secretary of tJie 
Trea»ury to use ike surplus of the $150,000,000, to pay as 
much of the national debt aapossiUe, 

Thus the money of the country wonld flow back into the 
channels of business and trade, employ labor and fill the 
land with an indostrione, thrifty and happy people. 

It wonld relieve the toiling masses from paying interest 
on money, wrongly taken from them and converted into a 
bonded debt. By taking this course it would place the 
country on the highest pinnacle of prosperity, and would en- 
sijre the promotion of the general welfare, to such a degree 
as would soon make our country .a Government, which, by its 
proeperity and greatness, would be the envy of the surround- 
ing nations of tiie world. 

We should not only secure internal prosperity and tran- 
quility, but we should soon find, that Mexico would be knock- 
ing at our door for admittance to enjoy the blessings of so 
great and BO good a Government. 

To maintain such a Government, it will be necessary to 
have such a civil service as wonld cause the men, holding 
office, to give to the people evidence, that they are both cap- 



able and honest in performing the service, required by the 

A Grorernment with such a civil service, maintained hy all 
the States, famishing and seQectiDg one of their best men 
from ea(^ and every State, to form a commission, whose 
bnsiuess it would be to select, appoint and watch over the 
acts and doinge of the 100,000 office holders of the comitry, 
who were appointed by the general Gk)vemm6nt of oar coim- 
try, and who are now nnder the present political manage- 
ment of rings and cliqnes, mainly appointed to enable 
interested parties to control this Government of otitb in 
their own particular interest, instead of giving protection to 
the great mass of people, whom they were appointed to 

IE Congress, at the present session, wonld Ic^slste to 
carry out the aoggestions here made, we should have an in- 
duBtriotiB, happy and prosperous people. There would be 
plenty of work for all to do, and at good wages ; the rights 
of the laboring classes would be better protected, and capi- 
talists, instead of living on nsurions interest, would use their 
funds to employ labor in developing the inexhaustible re- 
sources of our great and growing country. 
' Even in Christ's time the influence of money had crept 
into the very Temple, where the money-changers* had tlieir 
tables, which so greatly aronsed the jnst indignation of the 
greatest of all Eeformers the world ever produced. He saw 
the importance of making an example of them on the very 
spot, and gave us the only evidence in His pure life of any 
temper ; for he then " made a scourge of small cords, and 
drove the money-changers out of the Temple," making good 
the declaration of Paul, that He was angry without sin. 

If our legislators at Washington could but rise now to the 
emergency and i-ealize, that the Constitntion (Article I., 
Section 8, 5) says : " The Congress shall have power^— To 
coin money, r^ulate the value thereof," ete. . . . and 

* MftU. 21 : 13 ; Uwk, 111 15; John, 3: 15; PmI, Eph., 4: SO. 


com AND PAFER CtlBBEirCT. 243 

that the same Constitntion has no clanBe, allowing them to 
delegate this power — they would imitate the Master, drive 
the bankera out of the Capitol, aa directed by the law of 
1793, and CMry ont Paul's injonction: "Be ye angry, but 
ein not," by calmly refusing to re-charter banks, deceitfuUy 
<ndied naUonal, disposed to appropriate the nation's last 

Pbteb Cooper. 

Hiw TOBK, April 28, 1888. 
Thk Hok. Bicmasd Wabneb. 

My Deak Sib: I cannot refrain from offering you my 
heartfelt thanks for the noble defence joii made of the 
rights and interests of the toiling masBeH of this great and 
glorious country, 

Tours, with great respect, 


WAamxeTon, D.C, April 25, 1883. 
Hon. Peteb Coopki. 

Beab Sir : I received your highly complimentary and 
woU appreciated letter and pamphlet yesterday. Nothing 
offers me more pleasure than to know, that you were highly 
pleased with my speech against the re-charter of national 
banks. It is a source of gratification for me to receive a 
compliment from one, whom I r^;ard the greatest friend to 
tlie people, now in the United States, and an intellect sur- 
passed by none. I hope, if it be within yonr power, you 
will send me a nnmber of copies of your pamphlet, contain- 
ing extracts from my speech, March 30, 1882. I will take 
great pleasure in circulating them in my Congressional Dis- 
trict. Send the price of them and whatever they cost I wiU 
remit. With 

True respect, 

I am yonr obedient servant^ 
BtCBABD Wabneb. 



A Review op Couptbolleb Kkoi's Bepobt. 

Comptroller Knox informs ub, that there were on the 
l8t day of October, 1881, 2,182 National Banks in the 
country, eta . . . 

There were eighty-six new banks organized dnring tite 
year ending November 1, 1881. 

The total resources of these banks amount to $2,358,387- 
391, etc., ... a fund of $2,037,068,727 in the hands 
of these bankers, on which they pay an annual tax of a litUe 
over $15,000,000, which is less than the half of one per cent, 
on the funds in their hands. 

And yet the Comptroller, the Secretary of the Treasury, 
the President, and Congress are attempting to relieve them 
from a part of the tax they are now paying. A part of the 
Comptroller's report is devoted to a defence of the 
National banking system, to an extension of their chartere, 
and to relieving them from taxation. What other class of 
the community pay so small a tax in proportion to their 
means, or make so Urge profits, as the bankers. We know of 
none, except it be some of the leading railroad corporations. 

Between the railroad and the bank corporations, the pro- 
perty, produced by the masses of the people, is being absorbed 
at a rapid rate. They levy contributions upon the emrency 
and transportation of the products of the country, that 
absorbs the largest share of the wealth produced, and yet 
they are taxed the least. But the efforts, being made to 
remove the tax from hank circulation and deposits, are not 
because the banks feel the tax oppressive, but because they 
want all restrictions to the increase of their currency re- 
moved. If the tax was removed from their circnlation, 
they could donble the volume of their notes, etc. . . . 

The Comptroller furnishes figures and attempts to show: 
" That the profit on bank circulation cannot now at least 
be said to be exceBsive," 

He is very careful, however, not to mention the soorce, 
from which bankers can derive the lai^est profit, and 



wherein lies their greatest power for good or evil ; that of 
incieaeiiig and dimioishiiig the volume of money, and by 
that means inflating and contracting prices. The profits, 
arising to those engaged in banking business, do not de- 
pend entirely npon the dividends, semi-annually declared 
upon their capital stock. Enormous profits are fieciued by 
taking advantage of the increase and decrease of prices of 
property, -which is brought about by inflating and contract- 
ing the volume of currency, etc. ... A systematic war 
was made by banks upoa legal tender notes ; and from one 
to four millions a month were taken from circulation and 
destroyed, until their volume was reduced from $450,000,- 
000 to $356,000,000, when the panic came on. The panic 
became bo disastrous as to threaten the entire prostration of 
business, and in order to prevent tliis. President Grant's 
Administration was compelled to reissue $26,000,000 of the 
legal tenders to relieve the pressure. 

No sooner was a temporary relief brought about by the 
reissue of the currency destroyed, than John Slierman secured 
the passage by Congress of his Eesumption Bill, the object 
of which was to force all the debtors of the country, who had 
contracted debts, in paper currency, to pay those in gold coin. 
A bill was passed, demonetizing silver, and to resume specie 
payments, and by this means legal tender notes were gradu- 
ally to be destroyed, and bank-notes issued to be put in their 
places, and all debts made legally payable in gold. 

These legislative enactments, by which the debtors of the 
country were bankrupted and stripped of their money and 
property, for the benefit of money lenders, were engineered 
by banks for the purpose of getting rid of GJovemment notes, 
and to give tJiem the entire control of the volume of cur- 
rency, thus enabling them to carry on their schemes, of in- 
flation and contraction as a perpetual heir-loom' to their in- 

The President, the United States Treasurer, the Comp- 
troller, and other executive officers, and the majority of both 
HonseB of Congress aided these schemes, and the banks, are 


246 conr Ain> paper ourbeitot. 

now attempting through these parties to Becure a re-charter 
of their corporations, and to petpetoate the {mblic debt in 
their iotereets. 

The Comptroller goes into an elaborate defence of the 
National hanks in his last report He becomes a sort of an 
Attorney for an extension of their charter and to reUeve 
t^em from taxation, etc . . . 

The banks inserted a danse in the Eesiunption Act, giving 
tliem the power to increase their cirenlBtion to more than five 
times its present volnme, or to within ten per cent, of the 
entire bonded debt, and under existing laws, also, thej can 
retire tbe entire amoimt of their circolation at their pleasnre. 
In February, 1881, in order to defeat a bill passed by Con- 
gress, depriving them of the power to thns suddenly contract 
and expand their circnlation, they retired about $18,000,000 
of their notes in a few days' time. We all know the disast- 
roQS effects caused by that act. Had not the Secretary of 
the Treasury come to the rescue, and put l^al tenders in 
circulation by the millions in exchange for bonds, wide-spread 
business disaster would have followed. The business interest 
of this country mnst not be left at the mercy of men, who 
would thus abase the power, placed in their hands. These 
banks should be deprived of the power they now hold over 
the volume of currency. 

The facte and figures here given are mainly taken from 
the reports of the officers of the Government, and, therefore, 
they cannot he ignored nor set aside by the members of Con- 
gress. It will not do either for the present legislators to re- 
ject them. The men now in Congress have it in their power 
to strangle this monopoly, that is sucking the life-blood out 
of the people. Many of these banks have now about out- 
lived .their legal chartered existence, given to them by ignor- 
ant and corrupt legislators, and the verdict of the people is — 
let them die. This CongresB should pass an act forever pro- 
hibiting the organizing or re-chartering of banks of issue. A 
general law, antliorizing banks of deposit and discount, by 
which the money of the people shall be made secure, is de- 



Birable. Bat no bank should be allowed to issue cnrrency or 
to control its volume. Why should the Ooveniment create 
money and give it to rich bankers for nothing ? The legal 
tender notes were issued in exchange for labor and property, 
^ven to the Gkivemmeat by the people, who received them. 
The bftukers liave given nothing of value to the Government 
for the $362,000,000 of currency they have received. 

The amendment to Senator Sherman's bill, offered by Sena- 
tor Flnmb, of Kansas, contains some of the best features in 
reference to the currency and public debt of any bill yet pre- 
sented, that we Iiave seen. It could be improved by m ftVing 
the coin certificates and notes it provides for issuing, a legal 
tender for all debts, public and private. Senator Plumb's bill, 
or one similar, should certainly be passed by this Congress. 

Ab suggested in my letter to Senator Seek, if Congress 
was to pass a bill to issue $362,000,000 of legal tender Trea- 
sury notes, to take the place of the present bank currency, 
it could provide the labor and material to build and equip 
two lines of railroads from the Atlantic to the Pacific ocean, 
and place fifty first-class iron steamers on the ocean, thus 
providing cheap ti-ansportation both for our national and 
international commerce ; and it would leave the currency 
in a &r better condition than it is now in. 

Is the present Congress wise enough to see, appreciate, 
and inaugurate these great reforms iu our current^ t We 
ardeutly hope and trust, that it ie, and wilL 

The facts and figures here given may be verified by con- 
sulting the late reports of Comptroller Knox and Treasurer 
Gilfillan. They are submitted with the ardent hope, that 
Congress may see the immeasurable importance of our pre- 
venting banks of issue, and of providing a currency of Treas- 
ury notes based, as they should be, upon the embodied 
wealth of the nation, and made receivable for all forms of 
taxes, duties and debts. Such a currency would be unfluct- 
uating in volume and as uniform in its measuring power as 
the yard-etick and pound weight. 

Feteb Coopeb. 



Uhitbd States CoMSUTrEE on Aobicitltitbb. 

Washinqtok, D.C, H&78, 1882. 
HoNOBABLB Am) Deab Sib : 

Owing to the absence of both myself and Secretary for a 
protracted period from this city, your kind note of the 18th 
ult. was not laid before me, until this evening. I recc^;nize 
the importance of legislation by Congress at its present 
Session in regard to the currency, and I desire fo bring to my 
consideration of tliis snbject all the light, which intelligent 
experience in matters of finance can afiEord ; and I, there- 
fore, beg to tender you my thanks for a copy of your re- 
view of report of the Comptroller Knox, which shall have 
my fullest consideration. 

Youra very respectfully, 

Wm. Kahonb. 
Honorable Fetes Cooper, 

9 Lexington Avenue, 
Kew York City, 

K. Y. 

Pd^Mon to the EonoraUe Senate and Rouse of Represenia- 

tmea of the United States. 
Honored Gentleuen: 

Your petitioner, now in the ninety-second year of his age, 
respectfuDy prays, that the present Congress may not ad- 
journ, until they have made the necessaiy and proper law, 
requiring, that all banking shall in future be carried on 
with United States Treasury Notes, receivable for all forms 
of taxes, duties and debts, both public and private— and 
that, after the expiration of the charter of our present banks, 
no paper money shall ever be allowed to circnlate in this 
country in excess of the amount of the people's money, act- 
ually found circulating as the currency at the close of the 
war. For every dollar of that currency the people had given 
value to the Government, and it should only be increased as 



per capita with tha incroase of the popalation after every 


Your petitioDer further prays the Honorable Senatore and 
BepreBentatives to examine with care the following reasons, 
that prompted him to offer this petition : 

Impelled as 1 am by an irresistible desire to do all, that 
is possible to call and fix the ondivided attention of the Gov- 
ernment on the appalling scries of wretchedness and ruin, 
that would inevitably follow the re-chartering of the 2,300 
banks, deceitfully caUed ncOkmal — I cannot help addressing 
you on this occasion once more. 

Such an army of banks, all united in one common effort 
to secure for themselves the largest amount of interest on 
their small specie capital, would find it for their advantage 
to expand and contract the currency to attain their object, 

OTily a few weeka ago {March 30, 1882), Jlon. Sichard 
Waa-ner, M. C, from Termeasee, proved in Congress, thai the 
hanJa, deceitfully siyled naitonal, haoe made out of the peo- 
ple the mormoua sum ^$1,848,930,000 within ^ last aix- 
teen years, leaving the national debt, at the present time, 
nearly as large as it was at the closeof oar terrible war for 
the nation's life. 

For one, I have the most fearful forebodings of the coa- 
seqnences, that must grow out of a re-charter of those grasp- 
ing institutionfl, which a/re even litigaiing to he exempted frorii 
local taaxs 1! The American people are beginning to realize, 
that a national debt is not a hhesmg, as claimed hy selfish 
monopolists, but a national curse, which a wise and parental 
Government should dread as we would a pestilence. 

I have lately learned, that a secret organization has grown 
up in our country, which is known as the Knights of Labor, 
and that they already nnmber 150,000, and are daily in- 
creasing frran the strikes, that extend over the States. They 
are under the guidance of able and talented leaders, who 
have the wisdom and courage to tell their working brothers 
what they must do to save themselves and families from the 
enslavement of anational debt, that enriches monopolists and 


260 oonr and papsk ouerbfct. 

non-prodncen. They caatioD them against Btrikes for faigber 
wages, aodj advise them to continae work and ase their 
money to bay for each organized company a Gatling gun 
with 150 rounds of ammunition, and Uiree months' pro- 
visionB for their familieB ; then they may, like honeEt and 
pmdent men demand, obtain and maintain their " inalien- 
able right to life, liberty, and the purBuit of happiness," as 
mentioned in the Declaration of Independence. 

Such a body of iadtiEtrionB toen, with Buch leaders, will 
not allow idle tramps as members of their order. If our 
bankers would act wisely and prudently, they would adopt 
the language of the late John Earl Williams, for many years 
the honored President of the Metropolitan Bank of Kew 

" I would suggest, that Congress assnme, at once, the in- 
herent sovereign prerogative of a Government and exercise 
it, by furnishing all the inhabitants of the United States 
with a nniform national currency. Surely the people, and 
the people only, have a natm^l right to all the advantages, 
emolument, or income, that may inure from the issue of 
either $1,000 bonds with interoBt, or $10 notes without, 
based on the faith arid credit of the nation," etc. . . . 

In 1813 Jefferson dedired : " Bank notes must be sup- 
pressed and the circulation restored to the nation, to whom 
it belongs," etc 

Webster predicted that conditions, which permitted the 
rapid accumulation of property in the hands of a few, re- 
mitting the masses to poverty, wonld soon destroy free in- 
stitutions etc 

In spite of warnings, nttered and written by sages, states- 
men and flnanciers from Franklin, Jefferson and Webster 
to Senator Jones, President John Earl Williams and Treas- 
urer Spinner ; in spite of the seven and ten yearly periodic 
panics, that impoveriBhed our farmers, manufacturers, me- 
chanics and laborers, and enriched the banks and capitaliEts, 
Secretary Folger and Comptroller Knox seem now inclined 
to advise the re-chartering of these banks, deoeitfuUy called 



national. I wish these two financiers could see as clearlj as 
Treasorer Spiimer, belore it is too late. 

"Hxe <^iarter of these banks, deeeUfully s^led national, 
WS8 granted Febroar; 25, 1863, under the pretext of a war 
mea8ui«. In 1864 they circolated but $31,235,270 of notes, 
furnished and guaranteed hy the United States Treaeory ; 
in 1865 they circulated ^145,137,800, which, from that date 
' to 1380, increased to $313,834,167. On these mUlions the 
people's Treasury has paid tiiem interest in gold erer since, 
while laborers and producers had to take their wages in 
paper. Thus did the one hundred and twenty bankers, who 
were members of Congress, manage to legislate for their in- 
terests. Now their first charter, being about to expire, they 
apply for a re-charter ia a time of profound peace, when 
there can be no pretext for a war measure. Such a power 
in the Ijiaods of lieanless corporations is not only dangerous 
to our liberties and persons, but to our daily comforts ; be- 
cause, when they see fit, they contract their circulation and 
refuse accommodation to manufacturers and wuployers, who 
are consequently obliged to stop work and discharge the men 
and women in their employ, thus causing panics, poverty, 
misery and roiu. Soon such contraction will reach farms, 
houses and stocks, which these favored banks and their 
friends can buy for one-half or one-quarter of their cost ; 
because t^e honest owners cannot pay the interest and taxes 
thereon, all of which makes the rich richer and the poor 
poorer, as happened from 1837 to 1841, from 1847 to 1850, 
from 1857 to 1863, and from 1873 to 1878~wht;n the labor- 
ing and producing classes were impoverished by special 1^- 
ielatioD, that enabled bankers and monopolists to deceive the 
people and bribe such aa stood in tlieir way. . . . 

There was a somewhat plausible reason in 1863 to char- 
ter banks, tkceitfxJly styled national— this reason was called 
war measure ; but now, 1882, our country and the world 
are at peace ; there is not even a war cloud. Why then re- 
charter these banks against the letter and spirit of the Con- 
stitution, which contains no clause or word, that authorizes 



CoDgrees to delegate the money power to any body ? Allow 
me to cite again Senator Jones' emphatic language : 

" By interfering with the atandarda of the country, Con- 
gresB has led the cooutry away from the I'ealma of pros- 
perity, and thrust it beyond the bounds of safety. To re- 
fuse to replace it upon its former vantage ground would be 
to incur a responsibility and a deserved reproach, greater 
than that, which men have ever before felt themselves able 
to bear. We cannot, we dare not, avoid speedy action on the 
subject. Not only does reason, justice and authority unite 
in mging as to retrace our steps, but the organic law com- 
mands us to do so ; and the presence of peril enjoins what 
the law commands." 

May our Congress pass no more laws, ^ving away im- 
mense tracts of land to heartless corporations, thus creating 
laud monopolies, like those that now curse the British Isles 
— and grant no charters to banks, that can contract and ex- 
pand the people's medium of exchange at their pleasure ; — 
for such legislation favors the few at the e^tpense of the 
many, causes discontent among the masses and produces 
Niliilists, Gniteaus and men, who commit acts, like the one 
jnst perpetrated in Dublin, May 7, 1882, which dlagraces the 
civilization of the nineteenth century. 

As previously stated, I am now in the ninety-second year 
of my age, and have the satisfaction of knowing, that I have 
given to my conntry the best efforts of a long, laborious life. 
In the course of my endeavours I have written and printed 
more than a million of documents, which I have sent to 
Congress, to the President and members of the Cabinet, 
and to all parts of onr common country. 

The burden of my theme has been to show, that the Con- 
stitution has made it the imperative duty of Congress to 
take and hold the entire control of all, that should ever be 
allowed or nsed as the money of the nation. If the plan, 
set forth in a petition to Congress, to the President and his 
Cabinet on the 14th of December, 1862, in which I showed, 
that my ideS6 of finance were based on the opinions of sneb 



men as Franklin, JefEereon, Madison, CalhooD, "Webster, 
etc., whose words and warnings I qnot«d, as I do in this 
document— had been adopted, the Government wonld have 
alt the means it wanted in Treasnrj notes, and we should 
not have an enormous bonded debt in 1882. 
Most respectfollj, 


Petee Coofee's Protest AoArasr the National Banks, 
AS QUOTED IN " New Toek Hekau)," Mat 10, 1882. 

The venerable Peter Cooper has sent a petition to the 
Senate and Honse of Kepreeentatives praying, that the pres- 
ent Congress may not adjourn, until it " has made the neces- 
sary and proper law requiring, that all banking shall in 
future be carried on with United States Treasury notes, re- 
ceivable for all forms of taxes, duties and debts, both public 
and private, and that after the expiration of the charter of 
our present banks, no paper money shall ever be flowed to 
circulate in this country in excess of the amount of the 
people's money, actually found circulating as the currency at 
the close of the war. For every dollar of that currency the 
people had given value to the Government, and it should 
only be increased as jper capita with the increase of the 
population after every census." 

Mr. Cooper in support of his prayer against the rechart- 
ering of the 2,200 banks, "deceitfully called national, all 
united in one common efEort to secure for themselves the 
largest amount of interest on their small specie capital, and 
who find it for their advantage to expand and contract the 
currency to attain their object," quotes a vast number of 
anthorities. He sn^ests, that Congress should aseume at 
once the inherent sovereign prerogative of a Grovemment 
and exercise it by furnishing all the inhabitants of the 
United States with a uniform national currency. In fact to 
substitute the United States notes for bank notes, and take 
away as soon as possible and forever all circulation from 


364 ooni Aim papee cttbkenct. 

banks. By this means their ocenpation wonld not be gone. 
Mr. Cooper points out, that they wonld still be in a poeitioit 
to do a strictly legitimate bnsiness as banks of account and 
deposit, and asserts that the laws, which created them are 
also folly competent to abolish them. This principle, sim- 
ple, clear and undeniable, says Mr. Cooper, ought to be 
recognized as fundamental, and the only safe and proper 
basis, on which may secnrely rest all the circulating medium 
of the country, for the sole benefit of all the people, and not 
as now, for the profit of a class of stockholders, however 
deserving they may be in all other respects. Franklin, 
Jefferson, Madison, Jackson, Calhonn and Webster are 
next cited by Mr. Cooper as being in favor of paper money, 
fonnded upon the credit of the Grovemment and its resonr- 

Opkn Lettkr to the M™"*""" of TDK Battxers' Cokvbstioh, 
AT Saratoga, Aconer 17, 1882. 

G-EHTLEUEN '. A long life has compelled me to believe, 
that Christianity, as Christ taught it, presents to the world 
the true science for the guidance of all National Govern- 
ments, and of all individual lives. There is no command 
more clear, plain and self-evident than the one, which de- 
clares, that " all things whatsoever ye would, that men should 
do nnto yon, do ye even so nnto them." This command 
applies to every act and every condition in life. All men 
are made to feel, how they wonld like others to do unto 
them, and that feeling should form the true measure of 
duty we owe to tliose around us. 

Science is a rule or law of God, by wliich the movements 
of the material creation are rendered intelligible to man ; 
science itself is nothing more nor less than a knowledge of 
this law or rule, actually demonstrated by the experience of 
mankind. Believing this, I have given the labors of a long 
life to the advancement and diffusion of scientific knowledge^ 

* The Heraid quoted uewlj the whole paUtitm. 



feeling aesared that, when OhriBtisnitj itself is felt in all 
its purity, power and force ; when it is relieved of all its 
creeds and systems of human device, it will then he found 
to be a eimple system — a science or mle of life, to guide 
and regulate the actions of m&nkind. 

Mankind, throughout the world, requires a complete sconce 
of immortality — one founded on the highest conceivable 
idea, that a human mind can form of all that is poweiful, 
wise, pare and good. 

The world requires a science, based on that which may be 
tnown and clearly seen throughout all the unfolding leaves 
of creation ; one that can be known and read of all men, by 
that true light "given to enlighten every man, that cometh 
into the world." 

Science is the lamp in the world's path to light the way 
to all those wondrous treasures, stored up in Nature ; to 
rewu^l the head and hand of patient industry and toil. 

It is now in the power of those, who favor the present 
system of National Banks to carry out tliis principle by 
adopting a plan, that will secure for themselves as a body of 
bankers, for onr country, and for the world the greatest 
blessing, that ever fell to the lot of man since the world 

To secure this greatest of all blessings, it is only necessary 
for the National Bankers to unite and adi Congress to give 
back to the people the amount of legal tender notes, that 
were in circulation at the close of tke war, and which formed 
the nation's currency. This money was wrongfully taken 
from the people ; for it must not be forgotten, that they 
had pven labor and property for every dollar of that money. 

When the attempt was made in the Senate to take that 
money from its rightful owners, and to convert the same 
into a National debt, Senator Sherman characterized that 
act for contracting the cnrrency, as an act of folly without 
a parallel in ancient or modem times. His whole speech 
made at that time was intended to show, that a nation's cur- 
rency cotdd not be contracted nithont bringing ruin to the 



debtors and the laboring claeaea thronghont onr cotrntry. 
He declared in the Senate in 1869, before he had been 
teni[(ted above what he was able to bear, that — 

" The appreciation of the currency is a far more distreBS- 
ing operation than Senators Bnpposed. It is not possible to 
" take this voyage widiout the sorest distress to every person, 
except a capitalist ont of debt, or a salaried officer, or an 
annoitant. It is a period of, loss, danger, lassitude of trad^ 
fall of wages, suspension of enterprise, bankruptcy and dis- 
aster. To every railroad it is an addition of one-third to 
the burden of its debts, and more than that deduction to the 
value of stock. . . . It means that the ruin of all dealers, 
whose debts become twice their (business) capital, though 
one-third leas than their actual property. It means the fall 
of all agricultural productions without any great reduction 
of taxes. "Wliat pmdent n^an would dare to build a house, 
a railroad, a factory, or a bam, with the certain fact before 
him, tliat the greenbacks he puts into his improvement, will 
in two years, be worth thirty-five per cent, more than his im- 
provement is worth? . . . When that day comes, all en- 
terprise will be suspended, every bank will have contracted 
its currency to the lowest limit, and the debtor compelled to 
meet in coin a debt contracted in currency ; he will find the 
coin hoarded in the Treasury, no adequate representation of 
coin in circulation, his property shrunk, not only to the 
extent of the appreciation of the currencj, but still more by 
the artificial scarcity, made by the holders of gold." 

And yet Senator Sherman subsequently was the author of 
the act to resume specie payments, which authoiized the 
contraction of the l^jal tenders from |383,000,000 down to 
$300,000,000 ; and under that act the legal tenders were re- 
duced to $336,000,000, and the very disasters he had pre- 
dicted, would follow such contraction of currency, were 
brought upon the people ; and those disasters were only 
partially arrested by the Act of May, 1878, to stop any 
further destruction of the people's money. 

This act of Senator Sherman's wrought a ruin like that. 



which was bronght npon England by its efforts to reeame 
specie payments after a snspension of twenty-five years. 
This effort to resume specie payments, by contracting the 
onrrency, brought npon England each ruin, that at least five- 
sixths of the real estate of that conntty passed into the pos* 
session of a few moneyed men, who bought the estates at a 
small part of their former valne. Sir Archibald Alison, in 
his " Histoiy of England," saye, the Buffering produced in 
England by the act of contraction was greater, than had ever 
been occasioned in England by earthquakes, all the wars, 
pestilence and famine Bhe had been compelled to endnre ; 
and he expressed the hope, that our Government wonld not 
be BO nnwiBe, as to adopt a similar policy to obtain specie 

Some time ago a law was passed by the Honse of Itepre- 
sentatives to continue the people's money, tlien found in cir- 
cnlation, as the permanent legal measore of all values for 
our whole country for all coming tima When the news of 
the passage of that law was sent over the telegraph wires, it 
bronght an acclamation of joy and gladness from all parts of 
the country. When the bankers received this news, they, 
by their committees, came down on Congress and brought 
ench infiuencea to bear on members, as proved sufficient to 
defeat a law, that wonld have saved some ten thousand mil* 
lions of property from paseing out of the hands of those, 
who had earned it, into the hands of those, who had money 
enough to bny np the wrecks of ruined fortunes, resnlting 
from tlie contraction of a nation's currency. 

The great mass of the people are coming to see and 
know, that the Constitntion makes the most ample provision 
for supplying every want of the Government, as it declares 
in the most unmistakable language, that " Congress shall 
hare power to levy and collect taxes, duties, imposts, and ex- 
cises, to pay the debts and provide for the common defence 
and the general welfare of these United States. Bnt all 
duties, imposts, and excises shall be uniform throughout the 
United States." 



Wlien our late war began, calls for loans were made in 
strict conformity with the requirements of the Constitntion, 
Iq the shape of Treasiiry notes, made receivable for taxes, 
' dnties and debts, and fundable at an interest of five or six 
per cent. Those loans were promptly taken, as soon aa of- 
fered, and more money was offered than could be taken 
under the call. The duty of Secretary Chase was plain and 
positive, etc. ... 

If Secretary Chase had not, at that time, been afflicted 
with the Presidential malaria he would have found no diffi- 
culty in understanding Thomas Jefferson's plain, common- 
eenae directions. It would have saved for our country one- 
half the expense of the late war, and would have saved Sec- 
retary Chase f rem the mortification of saying, that his efforts 
to establish a system of national banks was the great mis- 
take of his life. 

President Grant, in his first message to Congress, says he 
fonnd the currency the best onr country had ever possrased ; 
and there was no more in circulation than was needed for 
the dullest period of the year." 

President Garfield makes the following declaration : 

"Whoever controls the volume of currency, is absolute 
master of the industry and commerce of the country," etc . 

Nearly all the great statesmen and financiers of onr own 
and foreign countries have, in the most decided manner, 
given their opinion in favor of the issue of Treasury notea, 
as the best means to meet the wants of the Government and 
people, etc. ■ . . 

Our national Constitntion holds every member of the Gov- 
ernment bound under the solemnity of his oath of office to 
make his every legislative act an effort, or intent to establish 
justice, as that is the only possible means, by which domes- 
tic tranquility can be secured, provision made for the com- 
mon defence, the general welfare promoted and the bless- 
ings of liberty secured for ourselves and our posterity, etc, 

I became convinced by what I have seen, that all trade 
must continne' to be a kind of game of chance, so long as 



the bnaiDesB of the eonntry is allowed to depend on banks, 
that promise to pay specie on demand. The same causes, 
that have prodnced periodical panicB in the past, will bring 
them in the future, onlese prevented by a national cnrrency, 
over which our Government can exercise entire control. I 
determined, then and tliere, that it would never be safe for 
me to allow my business to depend on notes, discounted at 
banks, which, to save themselveB, are often compelled to ruin 
their customers. I saw that, even with a good man at the ' 
head of such a bank of issue with its branches in every 
State, it would be in tlie fiitm^ as in the past, one of the 
grandest contrivances to demoralize a nation. 

Banks of issue have it in their power to make money 
plenty, by loaning to the community an extra amount of 
paper money, which will cause all property to rise iu price 
and tlie withdrawal of that extra amount of money from 
the wants of trade, will as certainly cause all the property 
of a country to fall in value, as it did when the bankers of 
our own country persuaded our Government to contract our 
national currency to about half of its volume, in order (a 
ridiculous pretence) to strengthen the credit of our country. 
Our Government has put in the place of the currency burned, 
a national debt, which must ever hang as a millstone about 
the neck of the toiling masses, and on which the laboring 
clasBes have already paid in gold tnterest an amount about 
equal to the original debt, and which interest they are ex- 
pected to go on paying for years, and then, at last, to pay 
the principal. 

This unjust course of legislation has driven millions of 
laboring men into a condition of enslavement to the pay- 
ment of the national debt, which must be paid out of the 
proceeds of labor, etc . . . 

Webster predicted, that conditions which permitted the 
rapid accumulation of property in the hands of a few, remit- 
ting the maBses to poverty, would soon destroy free insti- 

I do most sincerely hope and trust, that the united opinions 



of BO many of the greatest and beet men our comitty has 
ever produced, will be enfficient to prevail on all owners of 
national banks to confine their bneinesB in the future to dis- 
oonnting and receivuig depoaita, instead of depending on a 
dangerous power, which our Constitution has vested in 
Congress. Remember Jefferson firmly delared that " bank 
paper must be suppressed, and the currency of the cotmtry 
must be restored to the Ooveroment, to whom it properly 

I think bankers will voluntarily adopt the advice of Jef- 
ferson and thus secure to all the greatest blessing, that ever 
fell to the lot of man, and ward off those terrible evils, 
tliat are sure to follow our present system, as effects are sure 
to follow the causes, which produce them. 

Mankind as individuals, communities. States or nations 
will only improve and better their condition, just in propor- 
tion^as they come to see, know and nnderstand, that what a 
man soweth, that most he also reap somewhere, somehow and 
at sometime, by the operation of laws so wiae and so good, 
that they wiS never require to be altered, amended or re- 
voked. There may at eome fututre day be a whirlwind 
precipitated upon the moneyed men of this countiy, if they 
do not deal Jastly. 

Pertinent to this subject are the following words of Eev. 
Henry Ward Beecher; — 

" Here at present is the strife going on between employer 
and employed, between labor and capital — the former de- 
manding a portion of that, which it has helped to create. 
We hear already the snggestions of the devil inspiring men, 
wlio are poor to hate the men, who are rich, and society is 
beginning to torment itself as to the conseqnences. Now, 
if the rich men are wise they will lay aside at once this 
devilish idea, that they can swell before the community 
in vast array and not attach themselves to the humblest 
of the community. If the rich men by and by are over- 
whelmed it will be their own fault. Tlie most dangerous 
thing they can do, is to seperate themselves from the 



masses. If there be any claae of men, tliat are bound to 
go down and allj- themselTeB to the poor with full hands 
and fall hearts, it is the men in this community, who have 
property. It may not be done now, bat there is a storm in 
the sky, and if by and by there shoold come revolntion, 
massacre and misrule, it is because the spirit of the Gospel 
has been set at nt^nght by the men, who had the power in 
their own hands. It will not do for a man to aay, ' I sym- 
pathize with my poor brethren.' "What do the poorer breth- 
ren think about it t Between the horse and the man, who 
holds the whip is a wide difference, and the horse is the best 
judge of how the whip feels. In society the men, who have 
got hold of the handle, are not as good judges as the men, 
who feel the lash. In England there is an autocracy eetab- 
lished by law, and years of experience have tanght the titled 
ckss, that they have daties and responEibilities as well as 
wealth and position. In America we have no aristocrats 
except those, who have sprung up in a night — as toad- 
stools do in the dung-hill. Nothing will save us from 
the content of different classes of society, except that per- 
sonal humanity and personal sympathy, which shall unite 
the top and the bottom of society ; and you most not carry 
up the top of society any faster, than you carry up the bot- 
tom. Yon mast not say ' We will educate ourchildren, but 
not the children of the poor ; ' In our day, let us be wise 
beforehand. I will close with some words of Buskin, who 
is eminently wise, when he is not eminently foolish. He 
said to his class, 'Break bread often with the common 
people.' " 

In order that we may realize the greatest possible good 
for aU it is only necessary, that onr Government should give 
usan nnfluctuating measure of all valnes ; witli a Postal Sav- 
ings Bank, that will receive all onoccnpied money, at an in- 
terest of two and a half per cent. ; provide cheap transporta- 
tion for all products of our country ; a complete civil ser- 
vice; and a tariff of duties, sufficient to meet the wants of 
our economical Government ; thus relieving our country 



from all forma of internal taxes for the snpport of aux Glov- 

All our financial legislation has been calcnlated to boild 
up and maintain a nuion of more than two thousand Na- 
tional Banks, for banks are a unit in their endeavor to ob- 
tain for the oae of their money the largeat amount, that the 
laws will allow them to receive. 

The persons, having charge of the banks will always be 
on the alert to get their powers enlarged by legislattive 
eoactmentB, thoogh I am compelled to hope, that .the day 
will come, when the bankers themselves will do themselves 
everlasting honor by asking CongresB to exponge all those 
unjuat financial laws from the statute books of our country, 
as a disgrace to the civilization of the age. 

The first of the laws passed for tlie preservation of onr 
nation's life was for the issue of Treasury notes, that were 
made a legal tender and convertible at the pleasure of the 
holder, into five and six per cent, bonds. These notes were 
always as valuable as gold, until the bankers persuaded a 
majority of Congress to pass an act, that took away from the 
legal money its power to pay duties on imports and interest 
on bonds. This was an invalidating act and clearly at vari- 
ance with both the spirit and the letter of the Constitution. 


(Fhfm the Daily oppress.) 

*' Republioait. — Why do the Greenbackers or Nationals 
oppose the national banking system i 

National. — Because it is unjust to the people. 

Bepubuoah. — 'Bat will you make it plain, ao that all can 
see it as yon do t 

Natioital. — We will try. Let ns go into the bank acn»s 
the street and prove it by the banker himself. 

National. — Mr. Banker, how much money did yoa loan 
to the Government t 

Bankeb. — One million dollars, sir. 

NaTiohai- — What security did you take for the loan ! 



Banekk. — I took the Qovenuneiit's bond payable in 
twenty ye^TB, drawing bis per cent., gold interest. 

National. — J>o yon Btill hold that bond 9 

Bankkb. — ^No ; I pawned it to the Government, and re- 
ceived on it $900,000 of currency. 

Natiohai.— What did you do with the J900,000 of cur- 

Banxbb. — ^I paid it oat to the people for property. 

National. — What secnrity have the people, that the 
money you paid them is good ? 

Bahker. — My bond is on deposit as collateral for its final 
redemption by the Government. 

Nationai.. — Then you have parted with nine-tenths of 
your claim against the Government by passing it over to the 
people in exchange for their property ! Or, in other words, 
the people have refunded to yon ninety per cent, of your loan 
to the Government, and taken a lien on your bond ? 

Bakseb. — Yes. 

National. — Do the people draw from the C^vemment 
nine-tenths, or their proportion of the interest on the bond i 

Banker. — Oh, no, I still continue to draw the entire 
interest, withont being taxed ; while the people, who own 
nine-tenths of the claim, draw no interest, and are taxed to 
pay mine. 

National. — Then really the GJovemment owes you but 
$100,000 of the million, you having transferred $900,000 
of the claim to the people, and at the aame time the latter 
are taxed to pay you interest on the whole ? 

Banker. — Those are about the facts under the law. 

National. — To wliat extent does the law allow yon, 
bankers, to carry this system of specolfttion } 

Banexb. — ^We are not limited by law. We can carry it 
to the extent of the bonded debt of the nation. It is one 
of the nicest schemes ever invented. It is like a ratchet 
wheel ; it takes all and gives noUting. The whole people 
are taxed to pay ua interest on what they do not owe, while 
we are exempt even from oar own bardenB. 



Natiosal. — Do you espect to hypothecate more of your 
bonds for currency and transfer them to the people for 
property ? 

Bank£b. — Yes, aa soon as we can get the infernal green- 
backs out of competition, and property Talnes are depre- 
ciated enough to enable us to rope in three dollars worth 
for one of our currency. This we intended to do, when we 
got a clause inserted in the Redemption Act to allow os to 
inflate our bank currency without limit. 

Kationai- — What amount of bonds do yon now hold, 
which you are at liberty to put up for bank currency ! 

Baneeb. — Nearly ten thousand million dollars, with what 
we already have up. 

National.— By handling the $2,000,000,000 of bonds 
and the nme-tenths or $1,800,000,000 of currency, as yoa 
did your million dollars and $900,000 of currency, what 
■would be the result, financially, of your investment i 

Baheeb. — The result will be, we shall cany but one- 
tenth, or two hundred millions of the public debt, while 
drawing interest on the whole. The people will cany nine- 
tenths of the burden, draw no interest, but hare the priv- 
ilege of paying ours. 

National. — How much will your annual interest unoimt 

Baneeb. — ^Abont one hundred million. 

Nationai.. — What do the taxpayers get in return ! 

Baxebb. — Nothing. 

National. — Then yon contracted to extend a certain 
favor to the Government, for which you were to receive 
§100,000,000 in gold per year, from the people. But 
through the agency of yonr national banking machinery, 
yon are enabled to make the people perform nine-tenths of 
your contract, while you receive the entire reward. Is not 
this a most outrageous robbery — a swindle upon tlie people) 

Baneeb. — (John G. Deshler, President Franklin National 

Bank, Columbus, Ohio). — If the people are such d d 

fouls, as to vote for men to put saddles on their backs, spurs 



OQ mj boots, and tbeo invite me to ride, I am not going on 
foot. If it is robbery, the people, who sustain the party, that 
authorized the robbery, are to blame and not the robbers." 

If this is not an overdrawn pictnre of onr present 
sTstem of banks, deceiifyUy caUed ncUional, I would 
most sincerely implore the owners of these banks to 
ward ofE sni^ B train of evils, as fell to the lot of 
Belshazzar, as a consequence of his not taking the advice of 
bis prophet Daniel, when he said, *' O king, let my coimsel 
be acceptable unto thee, and break off thy sins* by righteoue- 
noss, and thine iniquities by showing mercy to the poor.** 
By not availing yourselves of the law, passed by a corrupt 
Congress, you will save yourselves and your country from 
the disasters indicated by the handwriting on the wall t 

Bafitiat, the French political economist, uttered a great 
truth, when he said : 

** When a Government fails in its duty to oi^anize and 
execute Constitutiooal laws, such a failure opens the door 
for the introduction of all forms of corruption and plunder, 
and plundering will go on just as long as plundering is al- 
lowed to be a profitable business," 

It is time, that we made plundering unprofitable ; and I 
hope I shall be so fortunate as to convince the owners of 
National Banks, that this is their great opportunity to secure 
to themselves, to our country, and to the world, one of the 
greatest blessings, that ever fell to the lot of man. 

If this should come to pasa, I should be able to say with 
one of old : *' Now, O, Lord, let thy servant depart in 
peace ; for mine eyes have seen thy salvation." 

pETEB Cooper. 

Nbw ToBZ, Jane, 1882. 
' H6n. a. a. Habdskbero, M. C. 

Deab Sib ; I received your kind letter of May 24, with 
pleasure, seeing that your speech was misreported, as the 
term "infamous" does not occur in it Honest difference 
on any subject is fair, whereas personal abuse is unfair. 



Thronglioiit your diecoiirBe yoa Bpeak of the danger of 
withdrawing bank reserves, amonnting to $128,000,000, if 
the bankB are not re-chartered ; bnt yon seem to overlook, 
that Congress alone has power to replace this amount by legal 
tender Treasury notes, a power, which it cannot del^ate. 

Page 5, yon say: "My position is simply this: if yon 
compel these banks to divide up all their reserves, yoa will 
thereby force a contraction of the cnrrency to the extent of 
$128,000,000, which no greenback theory can provide 
against. And the men, who are now struggling to make a 
living for themselves and their families with their wages of 
a dollar and a half or two dollars a day, will be presenting 
themselves before yoa here, as they did during the years of 
1877 and 1878, in their meetings eveiy night about your 
Capitol, demanding some protection, demanding that some 
action be taken by you, that would furnish them with bread 
or with labor." 

In my humble opinion, legal tender Treasury notes would 
amply provide against the dividing up of all the bank re- 

In yonr speech yon do not tell these " struggling men," 
that their pu^ntal Government is paying four per cent, in- 
terest in gold on $343,834,000, circulated by 2,200 banks, 
which ask now to bo rechartered for twenty years longer. 
You do not tell them, that the interest on this sura amounts 
to $13,753,360 per year, and $275,067,200 in twenty years, 
besides the cost of keeping the deposits, besides liqnidatitig 
the banks, that fail through mismanagement, and beside the 
lost and mutilated bills during twenty years, all of which be- 
long to the people, and cannot be given away by Congress 
without violating the Constitution, 

Yon observe, page 6: "First educate the people, not to 
communism, not to socii^sm, bat to the principles of Dem- 
ocracy and of a pnre Government." 

I think it will be difScult to educate the American people 
of 1882 to perceive " principles of Democracy and of a pure 
Government" in a Congress, that legislates ^275,067,200 in 



favor of 2,200 banks, maiu^ed hj non-producers, at the ex- 
pense of toiling producers, wlio must ultimatelj pay this 
enormous sum in direct and indirect taxation. 

The people are realizing the flagrant errors of socb legis- 
lation. They begin to know, that Congress alone has the 
power to save this money by passing a law, authorizing the 
issue of legal tender Treasury notes, based on the property of 
the nation, which must be ever preferable to any banking cor- 
porations. What can, what will, what mnst they think and 
Bay of representatives, who thus legislate away bnndreds of 
millioDS in favor of a few rich non-producers at the-expense 
of the toiling masses ! 

No wonder, you find (as you say page 2) these words 
about the national banking system, uttered by Mr. Borrows, 
of Missonri: "It is one of the most wicked, defenceless, in- 
excusable, flagrant cases of a popular swindle, that ever came 
before Congress, not excepting the land-grant, Credit Mo- 
bilier, granite contract, river and harbor, whisky bill) or 
other swindles, that have disgraced the congressional legis- 
lation of the past, or threaten it at the present momeuL" 
This is consoling, showing, as it does, that the people have 
stiU representatives, who dare protest and say their souls 
are their own. 

I can see no reason why Congress should not do the busi- 
ness intrusted to them by the Constitution, which declares : 
" Congress shall have power to coin money, and regulate the 
value thereof." I have looked in vain for a word or clause, 
allowing Congress to delegate this power to any corporation, 
either witbiu or without Congress. If they can del^ate the 
power to issue money to banking corporations, they can del- 
^ate the power to regnlate commerce between the States to 
railroad corporations. - 

You say, page 6 : — " If I had my own way I would fund 
the $246,000,000 of legal tender now afloat. I remember 
when meetings were held here and members of Congress 
were called out to give their opinions and a clamor was 
raised for the legal tenders, which had been retired, to be 



reissued. Congress then voted, that the Secretary of the 
TreasQiy ehoald reissue these legal tenders, andthej are 
now afloat among the people to-day." Yes, legislate to 
fund these legal tenders now afloat among the people, and 
pay capitalists aud bankers even as low as three per cent. 
interest in gold, and it will amount to the modic sum of 
$10,380,000 per year. While they are afloat they cost 
nothing, bear no interest ; and the lost and mutilated bills 
are clear profit to the nation. Yet, against the popular 
idamor, against the decision of Congress, and against the 
spirit and letter of the Constitution, you would even now 
fund them, if you had your own way. All I can say is, 
you must have great confidence in yonr individual judgment. 
Your funding of these legal tenders, now in tlie hands of the 
people, costing nothing, would be like funding the $60,000,- 
000 of small paper currency of five, ten, twenty-five and 
fifty cent, bills, so portable and so convenient to enclose in 
letters, that the people preferred them to copper, nickel and ' 
even silver ; but they were withdrawn from circulation and 
turned into a national debt, bearing from six and fonr per 
cent, interest in gold, amounting to $3,600,000 at six per 
cent, per year, and to $2,400,000 at four per cent, per year. 
Ten millions of that small paper currency amounting to six- 
teen per cent, have not come in, and may be considered as 
lost. Had they been issued by the banks, they would have 
'this snm instead of the nation. To allow the loss and mutil- 
ation of the $342,834,000, now circulated by the bants, is a 
legislative favoritism not dreamed of by the people, who most 
be educated to realize such unfortunate legislation. Even at 
one per cent, it amounts to $68,766,800 in twenty years. 
Such has been our financial legislation since the close of 
the late war, and such it now is, if these banks are re- 

Page 2, yon have this tender effusion concerning me (do 
wonder your friends applauded you) : 

" Why, sir, it was but two days ago, in my morning mail, 
came a letter signed by generous-hearted Peter Cooper, of 



New York, a man ninety-two years of age, a man who bae 
been known, honored, and trusted by the American people ; 
whose whole life has been one of benerolence, piety, and 
justice, and now in his declining yeara, when the shadows 
of the next world are gathering thick around him, and 
when his mind cannot be in the course of Nature as clear 
and bright and strong as it was, indorses doctrines the most 
nuwise in our financial history. His name is too honored 
in onr histoty to permit the foundations of a proper conser- 
vatism to be swept away. In that pam{)hlet, to which I 
have referred is quoted a suggestion, which I venture to as- 
sert few of yon wonld be willing to give countenance, and I 
am quite sure Mr. Cooper does not. What is that doctrine 1 
Bead it, Hepresentatives of the people, and yon will nnder- 
stand it better. Yon will see that, instead of strikes against 
labor, snggestions are made to men to sare three months of 
their wages to bny Gatling-gnns, and three months of pro- 
visions, to crush out monopolies of whatever kind. And 
this, Mr. Speaker, in a representative Government of the 
American people. Crush where you can monopolized 
power, but let it be done by proper process of law. Why, 
Sir, what can there be behind all this crusade upon the na- 
tional banks? Men are tender in their utterances about it, 
as if th^ were afraid to speak their minds. I believe in 
educating the people and in elevating them to a full know- 
ledge of these great questions rather than pander to senti- 
ments bom of hasty and unreasoning prejudice." [Ap- 

Though 1 am in my ninety-second year and " shadows of 
^e next world are gathering thick around " me, I can per- 
ceive in yonr speech this contradiction : Yon speak feelingly 
of the distress, that would resnlt to the laboring men from 
dividing np all the bank reserves, which wonld "force a 
contraction of the currency to the extent of $128,000,000." 
Next you declare : " If you had yonr own way, yon wonld 
fnnd the $346,000,000 of legal tender now afloat." In the 
heat of debate you probably did not realize that, in doing 



BO, yon would " force & contraction of the cnrrency to the 
extent of" $346,000,000, which wonid be more than double 
th^ amonnt of the bank reserves, amonnting to but $12S,- 
000,000. In spite of my age and the clonds around me, I 
perceive a difference between $346,000,000 and $128,000,- 
000, although the former are legal tender and the latter 
bank reserves. To ine contraction is contraction, whether 
it assames the shape of funding legal tender or dividing np 
bank reaervee. I also perceive a decided difference between 
$346,000,000 of legal tender and $343,834,000 of bank bUla, 
inasmuch as the former cost the people nothing but the 
issuing, whereas tlie latter cost the people $13,753,360 per 
year, and $275,067,200 in twenty years. Hence there are 
275,067,200 reaaona for keeping " t^ legcU tender afloat," 
and for not re-chartering the banks, whose billa may at any 
time be replaced by legal tender Treasury notes, saving the 
nation $13,753,360 a year, and $275,067,200 in twenty 
years, besides the cost of keeping bank deposits, liquidating 
badly managed banks, and lost and mutilated bills, which 
should ever belong to the nation. 

At the close of the war, Congress should have allowed 
the full amount of paper currency to circulate ; because the 
people had furnished value for every dollar ; and it should 
not have been augmented, except per capita, with the in- 
crease of population. As the bank charter is now expiring, 
their currency should be replaced by legal tender Treafluiy 

In your letter you allude to " doctrmes the Tnoat umoise in 
our jiTia/ncial history." These same doctrines are fully 
stated herein. I am ready to leave these doctrines to the 
decision of my countrymen. Next yon refer to " a auggea- 
tion quoted " in my " pamphlet," and invite " rgyresentativet 
oflJm peo;fAe" to "read that doctrine" In my pamphlet 
and petition I state what I found in the Press, and express 
my opinions, which are based on quotations from the 
Declaration of Independence, adopted by flie world as a 
catechism for I^publican forms of Grovemment. If that is 



wrong, I am wrong. I state stubborn facts ; for strikes 
have been, and are spreading all over the conntiy aa fore- 
nuiners of revolntion ; if Coagress docs not heed them, I 
pity it8 members ; for the tronble will ultimately be attri- 
buted to them, especially when the enffering masses realize 
the wholesale class l^slation, that has been, and is going on 
since the close of our late war. We have no Czar, no Sul- 
tan, DO king ; the people will look to Congress for redress 
of their grievances. 

You atate in your speech, that "the men, who are now 
Btmggling to make a living for themselves and their fami- 
lies with their wages of a dollar and a half or two dollars a 
day, will be presenting themselves, etc., as they did during 
the years of 1877 and 1878, in their meetings every night 
about your Capitol, demanding some protection ; demanding, 
that some action be taken by yon, that would furnish them 
with bread or with labor." 

For such reiterated grievances the Declaration of Inde- 
pendence has this bold statement : " All experience hath 
shown, that mankind are more disposed to suffer, while 
evils are snfierable, than to right themselves by abolishing 
the forms, to which they are accnatomed. But when a long 
train of abuses and usurpationsj pursuing invariably the 
same object, evinces a design to reduce them under absolnte 
despotism, it is their right, it is their duty, to throw off such 
Grovemment, and to provide new guards for their future 

I consider the persistent class l^slation of Congress 
since the war, a worse despotism than that of Great Britain 
before the Revolution ; because it reduces the laboring 
classes to periodic distress and starvation, that are worse 
than any despotism ever was ; for monopolizing corporations, 
whether in the shape of banks or railroads, have no soul. 

In my pamphlet and petition I point out those grievances. 
I am sorry you do not like them. I know they have been, 
are, and will %e adopted by independent and nnprejudiced 



I alwsya have been, am, and ever shall be with the poor 
toilers and prodncera; therefore I desire Congress to legis- 
late for the poor as well as for the rich, who can take care 
of themselves. I think, if yon considered my side of the 
qnestion car^lly, you would change your opinions con- 
cerning legal tender Treasury notes and bank circulation. 

At the close of the war the House of BepresentativeB 
passed an act, declaring that the people's money, then foond 
in circulation as the Nation's currency, should be and re- 
main the people's legal measure of all values, and should 
only be increased, asperoapUa, with the increase of the in- 
habitants of our country. 

Such a currency was passed by a vote in the House, and 
was only prevented from becoming the permanent l^al 
money of our country by the combined inf nence of the 
banks and bankers of our own and other conntries. 

All must see, that such a law would have secured to our 
country a currency as uniform in its purchasing power as 
the yard, pound weight, and bushel measure, etc . . . 

I might here quote Rev. Henry Ward Beecher*8 sermon, 
which would show, that I am not alone in foreboding the 
evils that will be brought on our country by a persistent 
course of financial class legislation. 

Sir, by it you might realize, that thoughtful men are 
aaxiouB concerning our country's welfare; hence let the 
people's RepresentativeB now aasembled in Congress be up 
to the emergency, and enact laws, tending to conciliate em- 
ployers and employed, rich and poor — laws, that will dimin- 
ish the burden of taxpayers. First and foremost among 
such laws should he a refusal to pay intereat on the ¥343,- 
834,000 bank deposits, and replace them by legal tender 
Treasury notes, thus saving $13,753,360 per year, lljext, 
use the $150,000,000 now in the Treasury to cancel a part 
of our enormous interest-bearing debt ; this, at four per cent 
interest, will save $6,000,000 per year. While in the 
Treasury, it is a temptation to corruption Aid bribery, no 
matter what party has the handling thereof, whether Demo- 



cratio, Bepablican, Independent, or Greenback. Lead hb not 
into temptation fihonld be the motto. Men, who have loose 
money, are inclined to spend or become mieers. 

These two items would be a yearly saTing of $20,000,000, 
which employers and employed would soon feel. Surely, 
Congress might discover other leakages, and arrest them by 
jnst and economic legislation. When this is done, let Con- 
gress exhort the employers and strikers to adjnst their dif- 
ferences on the promise of better times. I myself, as an 
employer, and friend of the employed, think matters might 
be so arranged as to eoit all interests, if those who are now 
striking for higher wages coold but know the struggles, that 
many of their employers are compelled to make, in order 
to be sore to be able to pay their men, and leave something 
on their balance-sheet to compensate them for their labor 
and the risks, which all employers are obliged to meet. 
When laborers take their employers' risk and troubles into 
consideration, they will rather pity their employers than to 
throw unnecessary difficulties in their way. 

Perhaps the greatest danger, that threatens our free in- 
stitntions, is, that the strikers will allow themselves to be 
used by nnscrupulous politicians, who will lead them and 
their country to destruction; labor suspensions should be 
few and far between ; for they create idleness, which soon 
condncte to corruption, dmnkenness, and vice. To contend 
for an eightrhyiMr syetem of labor is a sad mistake. I, as a 
working man, claimed it as my privilege to spend ten and 
twelve hours per day in bodily and mental efforts to elevate 
the condition of those, who have nothing to sell but their 
labor. Had I not done soj I should not have been able to 
found the Cooper Institute. 

If men wquld for a moment consider, that an eight, instead 
of a ten-honr system, would diminish production of every 
kind one fifth, or twenty per cent., and increase the price 
of the necessaries of life in the same ratio, they would stop 
thinking of eiglU. hours work per day ; for they would real- 
ize, that a bushel of potatoes, costing $1 under a ten-hour 


274 com Aim fapeb cubkehct. 

Byetem, would sell at $1.20 under &d eight-hour Bystem ; bo 
would a Btiit of elothoa, ooeting $20 nnder a teD-hoor b^b- 
tem, sell for $24 nader an eight-hour syBtem ; so would a 
dwelling, renting for $25 per month onder a ten-honr Bya- 
tem, rent for $30 nnder an eight-honr ByBtem. We might 
tnnltiply examples; but these will Biifflce. 8nch theories 
are attractive to shallow thinkers; but they only tend to 
disturb social order and s^gravste the condition of honest 
laborers and mechanics, without benefiting either employers 
or employed, who most ultimately meet and settle matters, 
after much ill-feeling, loss of time and production. 

As yon are President of a bank, yon will allow me to add 
here the following sn^estionB from John Earl Williams, 
President of the Metropolitan Bank of this ci^ : 

"I would suggest: That Congress assume, at once, the 
inherent sovereign prerc^ative of a Oovemment, and exer- 
cise it by famishing all the inhabitants of the United States 
with a nniform national currency. Surely the people, and 
the people only, have a natural right to all the advantages, 
emolument, or income that may innre from the issue of 
either $1,000 bonds with interest, or $10 notes withont, 
based on the faith and credit of the nation I " 
I remain, yonrs faithfully, 

Peteb Coopzb. 

Hon. A. A. Hardenbergh, M.C. 

After giving my own efforts in favor of a stru^y TuUional 
currency and against monopolies, I cannot help adding some 
of the efforts of statesmen, divines, jonmalists and finan- 
ciers, who warn the people of the dangers, that threaten 
our country. 

Letter from Mr. Calhonn to a committee, who had in- 
vited him to a public dinner, in South Carolina: 

" FoBT Hill, September 6, 1838. 
Gentlemen ; I have been honored by your note of 27th 
of August, inviting me to participate in a dinner to be given 


COnr AN1> PAPER OTTBKEirOr. 275 

to your Senators and the members of yonr delegation in 
Congrese, who have concurred with them on the great and 
agitating qnestion of the dajr. 

The great distance and my engagemonts compel me re- 
luctantly to decline y&ur kind and flattering invitation. 

It is difBcnlt to over-estimate the importance of the great 
measure, which now engrosses the public attention ; and 
those, who bold it np, as a question of small magnitude, 
while they denounce it and all, who support it, in the most 
unmeasured and bitter terms, act neither sincerely nor bon- 
estly. In whatever light it may be viewed, it is a question 
of the first magnitude ; even more so in its political and 
moral bearings, than its fiscal and commercial — the light in 
which it has been principally regarded. I feel that I hazard 
nothing in asserting, that tlie banking system, through its 
connection with the Government, is affecting, and if not 
arrested, will affect one of the greatest revolutions in the 
political and moral condition of the world, of which history 
has left any record ; and, let me add, one of the most per- 
nicious. H permitted to progress, it will elevate the money 
power above aU others — above thrones and principalities, 
laws and constitutions. It has already acquired in our coun- 
try an almost unlimited control over the fortunes of indi- 
Tidoala and the business of the community. By granting or 
withholding favors; by expanding or contracting the cur- 
rency, fortunes are made or lost, and the whole business of 
the community, through every channel or industry is made 
to prosper or decay. Neither good nor bad seasons, neither 
the smiles nor the frowns of Providence, exercise a more 
controlling influence for good or evil, over the fortunes of 
individuals or the community. It is in vain, that the bounty 
of heaven shall bless the land with seasons of plenty and 
health, a sudden contraction, or a suspension of payment 
spreads ruin and desolation around, and plunges into poverty 
thousands, who, but a moment before, believed tbemselveB to 
be independent, and in afHuent circumstances. 

Ko one, who has observed the operations of the last twenty 


276 oonr akd papek oxtrebnot. 

years, can donbt the tnith of this pictnre, and that the power, 
as great as it now is, has not reached the maximnm of its 
increase. Kow I would ask, ia there a man eo blind, as not 
to see the debasing conseqaences, which must follow, morally 
and politically, by thus elevating the money above all other 
' powers in this State, and giving It each overwhelming con- 
trol i Can it be done, without debasing the noble and inde- 
pendent spirit, which created oar free institutions, and with- 
out which it is impossible to maintain them ! Can it be 
done without spreading over the land one all-absorbing spirit 
of gain, which shall extinguish aU the more elevated feelings 
of our nature, and raise bim, who may dispense the favors 
of banks, in public estimation, over the philosopher, the 
statesman, the divine, the patriot, the warrior, or those en- 
gaged in the active and productive pursuits of society ! Can 
this be done without inverting tlie order of the moral world, 
and brining down in the end, on the people, who may have 
the folly and the weakness to permit it, unheard of calami- 

To gnah] f^;airi8t these, it is clear, that something must 
be done to prevent mere private corporations from exercis- 
ing snch unlimited control over the cnrrency of the country, 
and, through it, the fortunes of individuals and the com- 
munity. To effect this I can imagine no measure more sim- 
ple, effectual and practicable, than tlie entire and final 
divorce of the unholy and unconstitutional connection be- 
tween Grovemment and Bank — the great measure of de- 
liverance and liberty, as happily expressed by the able and 
patriotic statesman (Gleneral Gordon), who will have the 
lasting honor of having first proposed it in Congress. This 
once adopted, the whole system may be gradually and safely 
reformed, as experience and reflection may point ont, and 
the country saved from unnumbered woes. 

Permit me in conclusion to offer the following senti- 

The great and leading measure of tlie age — It rests upon 
the imperishable foundation of truth, and thongh it may be 



defeated at first, its final triamph, if sopported 'with energy 
and perseverance, ia certain. 

With great respect, I am, etc 

J. 0. Oalhodn. 
Calvia Graves, Esq., and others of the Committee." 

Hr. Chaee in a report said : 

," It has heen well questioned hj the most eminent states- 
men, whether a correnc^ of bank notes, issned hy local in- 
stitutions under State laws, is not, in fact, prohibited by the 
National Constitntion, Such emissions certainly fall within 
the spirit, if not within the letter, of the constitntional pro- 
hibition of the emission of bills of credit by the States, and 
of the making by them of anything, except gold and silver 
coin, a legal tender in payment of debts." 

However this may be, it is too dear to be reasonably dis- 
puted, that Congress, under its constitntional powers to lay 
taxes, to regulate commerce and the value of coin, pos- 
sesses ample authority to co'ntrol the credit circulation, 
which enters so largely into the transactions of commerce 
and affects in so many ways the value of coin. In the judg- 
ment of the Secretary, the time has arrived, when Congress 
should exercise this authority. 

And years later, the Hon, E. G. Spaulding, although a 
National Bank President, branded in his " Financial History 
of the War," (page 188) the bank issue as " an inflation of 
the current^" — and therefore, not only uBeless, but mis- 

John Eail Williams, President of the Metropolitan Ka- 
tional Bank of New York, a banker second to no other in 
experience, success or position, says : 

" I would sn^^est that Congress assume, at once, the in- 
herent, sovereign prerogative of a Government of the peo- 
ple, by the people and for the people, and exercise it by 
furnishing all the inhabitants of the United States with a 
uniform national currency. 
■ Surely the people, and the people only, have a natural 



right to all the advantages, emolnment or income, that maj 
inure from the isBne of either one thousand dollar bonds, 
with interest, or ten dollar notes withoat, based on the faith 
and credit of the nation. 

Thin principle, simple, clear and undeniable, ought to be 
recognized as fondamenta), and the only safe and proper 
basis, on which may secorely rest all the circulating medium 
of the countiy ; for the ^Ae ien^ ofaU thej)e<^)le, and tu^ 
as now, for the profit of a class of stockholders.*' 

As some of my early theoretic lessonB in finance come 
from Albert Gallatin, who was Secretary of the Treasuiy 
under Jefferson and Madison, I quote a report of a meeting of 
" 7^ If mo York Board of Currency" from the " Courier 
and Enquirer." Aa Gallatin died, 1849, this report was 
written over thirty years ago : 


PiTEE CoopBB, Esq., First Vice-President, occupied the 
Chair, in the absence of the President, Mr. Galiattn, who 
is in Europe. 

A Communication was read relative to the objects of the 
Board, from an aged merchant of great experience, retired 
in the Isle of Wight. He referred to the injurious influences 
exerted upon the productive industry of Great Britain by 
increasing taxation and the excesses of the credit system in 
that country, and advised earnest attention in the United 
States to the establishment and maintenance of a sound 
currency, the best means of securing steady progress in the 
development of all the resources of the country. The letter 
concluded ; — " I most sincerely wish you all possible success 
in your endeavors to establish the Banking system upon a 
safe and solid foundation. It is the most important and 
patriotic mission yon could undertake. America is more 
happily circumstanced in many respects perhaps than any 
other nation. Not being burdened and embarrassed with a 
heavy debt, you are left free to pursue the course, that true 



wisdom sh&ll point out, and it would be no ettey task for any 
one to estimate all the national advantages which now lie 
within yonr reach." 

"The Eecording Secretary enbrnitted mathematical dia- 
grame, prepared by Mr. John Y. Yatman, who is engaged 
in pwfectiDg a series of illastrations of American commerce, 
Aorrency, and prices since 1790, in which the statistics of 
each of the seventy years are presented in a condensed 

Mb. Yatman explained the mathematical principles gov- 
erning him in the efforts he is making to demonstrate the 
practical operation of the laws of currency and prices. The 
result is a complete vindication of the views promulgated by 
this Board. 

Hon. Geosob Opdtsz spoke of the rapid progress which 
sound views of currency were making throughout the 
country. He had long since demonstrated to his own satis- 
faction, with mathematical certainty, the truth of the prin- 
ciples of cnrrency advocated by this Board. Their truth is 
advocated by experienced bankers and merchants, and it is 
a great errors snppose tliat a sound system of hanking is on 
the average, less productive of profit than an erroneous sys- 
tem. The latter revolves around a vortex of bankruptcy into 
which it is constantly liable to be plunged upon the recun-ence 
of adverse movements in trade and commerce. The former 
ia uniformly and permanently remunerative, and of great 
advantage to the community. It is a gratifying fact, 
identified with the currency question, that the interests of 
the people and of the Banks go haud-iu-hand in favor of a 
sound system. There is no clashing of interests in the path 
of duty which has been marked out by true principles, in 
this case. 

He spoke with approbation of thework which Mr. Yatman 
had undertaken. He considered it important because it 
would establish, by positive demonstration, upon the basis 
of actual experience, those truths in monetary science upon 
which BO much difference of opinion had existed. 



Hon. John Cochbane, Member of CongreBs, and Chair 
man of the Committee on Commerce of the Honse of Kepre- 
sentativeB, being called npon, referred to the interest he felt 
in the discnesiona of the Board. He had found that there 
18 a great difference between the theories of moaej and the 
practical influence exerted hy money apon all the economical 
interests of a commnnity, and in thia Board he found that 
questions of money were discuBsed in ttie light of practical 
experience. Once illuminate the pablio mind, expose the 
errors of those systems which seek to confer the attributes 
of money upon a fiction, and error falls dead, the appliances 
of the opponents of truths perish. Tbis Board is in the cor- 
rect line of truth, and as tme principles of currency are 
applied, so the correct line of national development will be 
discovered. We are in tlie focus of a vast future civilization. 
A deviation now from Christian truth will be an eternal loss 
to that future. Guided by truth, with our boundless com- 
mercial resources and growing population, when money, the 
instrument of commerce, goes forth in its purity, how vast 
will be the results 1 . If failure should again overwhelm 
us, the vitality of truth wonld reveal the line oi duty amid 
every wreck and disaster. Without the financial wisdom 
that is guided by experience, our commerce will continue 
exposed to disasters. Hence, ho conclnded, the work of 
currency reform is part of the Christian progress of the 

Pbtbh Coopes, Esq., referred to the opinions which had 
been expressed by the immortal Washington. Kot the 
amount of currency, but the real worth exAtbHed in the 
rapidity of oirculaiion, is what constitutes a sound circula- 
ting medium. A fictitious currency was termed by Washing- 
ton ' the shadow without the substance.' 

"Mr, Yatman's mathematical illustrations were referred 
to a Committee, consisting of Messrs. William A. Booth, 
Joseph Lawrence, Wilson G. Hunt, Benjamin H. Field, 
Greorge Opdyke, and John Eadie. 

The Board adjourned for two weeks." 

D.qit.zeaOvGoOt^lc ' 


" To THE Editob of TEE Tbleokam : 

The BQbBtitiition of greeabacks for national bank notes is 
admitted to be the pivot, on which the money question 
toma. This point is strongly ni^ed in the valuable writings 
of W. H. Winder, who says, in the following synopsis c^ his 
" Besomption Factors :" — ^First, an ability to meet oil specie 
demands ; second, that said demand is limited to the foreign 
debt ; third, that gold, equal to onr wants, cannot be accmnu- 
lated with saiddebt outstanding ; fourth, that the extinction 
of said debt would secure a genuine speoie system, making 
our paper irresistibly on par with gold ; fifth, that this spe- 
cific can alone be gained by developing our reBOurces, keep- 
ing the people employed, making tlie exports double the 
imports and substituting greenbacks for national bank notes. 

Statistics show, that the national and State Government 
debts and expenses iie,yer capita, $150 per annum, or $3 
per week, or 50c. per day. It is also seen, that national 
banks in thirty years will suck from the productive indtietries 
$400,000,000 more than the entire public debt, or $2,450,- 
000,000, every dollar of which would be saved by the exclu- 
sive use of the people's greenback. Manifestly greenbacks 
by the people and for the people, wonld alone make labor 
in demand, ending strikes and hard times, scattering peace 
and plenty over the land. 

The venerable Peter Cooper, in his letter to President 
Hayes of the 6th of Angnst, wisely states : — Government, 
by a judicious-tariff, can do much toward promoting indus- 
tries and encouraging capital for mannfacturing, since we 
cannot as a nation buy anything cheap, that leaves our own 
good raw materials unused and our own labor unemployed. 

Bight Bhall rnla and conquer error, 

Bnllota TonquUh everj wrong, ' 
Honey kings be atmck with terror, 

Freedom be the ufttlou'a song. 

"Wilson Watson. " 
August 13, 1877. 



Fboh Ewma's Speech oir Bbsumftioit, 1877. 

" No greater injoiy conid be inflicted on a people by its 
GoTemment, tlian the rednctdon of the Tolnme of currency, 
to which the bnsinesa and values of the conntiy were ad- 
jofited. To decrease the value of money was to strike at the 
iaterests of the whole body of the people. No man conld 
engage profitably in merchandise, while the valoes, which he 
was handling, were failing, etc. . . . 

I do not appeal to that money power, which seeks its for- 
tnne over the wrecked happiness and accomnlatio&s of its 
fellow-men — a power, to which onr nnhappy civil war gave 
birth — which has grown so enormons through unjiiBt financial 
legislation ; which now ' bestrides onr narrow world like a 
colossus,' which subsidizes the press, which captures states- 
men and parties, and makes them its subservient tools; 
which bounds down and villifies every public man, who 
dares to raise his voice against it That power, in the flush 
and arrogance of its enormous and ill-gotten gains, has a 
heart of stone, not to be touched by human sympathy and 
compassion. I appeal to the masses, to their faithful Repre- 
sentatives (I thank God) of both political parties on this 
floor. The true aim of government is the greatest good to 
the greatest number, and whoever by l^slation or otherwise 
changes the value of a contract, is as accursed as he, who re- 
moves his neighbor's landmarks. For twelve years past the 
financial legislation of this country has been dictated, one 
would think, in Lombard Street or Wall Street, and the peo- 
ple have been plundered by every fresh enactment. They 
have suffered the fate of the giant Gulliver, when tied down 
by the Lilliputians. Thank God they are about to rise — to 
burst the bonds, which their petty foes have fastened upon 
them, while sleeping, and to walk abroad again in their own 
majesty," etc. . . . 



t 16, 1881. 

" Mb. Pbesident : It is now nearly nine years since silver 
money was destroyed in this cotmtry by the repeal of the 
law of 1792, anthoriziog its coinage. This famous act of 
fraud upon a long and well-settled fimtn^nftl policy and 
of wrong and injustice to the business and labor of the 
AmerieaQ people, was consummated on the 12th day of 
February, 1873. And then for five years and sixteen days 
it remained upon the statute-books to curse the land. It 
took the people that length of time to discover, overtake 
and wi^ out this act of unwarranted and clandestine legts- 
laiion. But, when the evil work came to be fully compre- 
hended throughout the country, the popular voice was 
neither slow nor timid in making itself heard. It did not 
salute the ears of legislators with the soft music of a sighing 
zephyr, dallying with summer flowers; it came here rather 
with the fierce and commanding majesty of the hurricane in 
its wrath ; it dame from every seat of honest enterprise and 
industry ; from the farmer, the manufacturer, the mechanic, 
the merchant, the trader, the wage laborer, from every class 
of business people, and it came breathing forth the indig- 
nation of a ' constituency, who found themselves betrayed 
and juggled in a matter of domestic policy, vital to their 
prosperity and happiness. 

On the 28th day of FAruajy, 1878, tie voice of the 
American people was obeyed in these hall^ and silver 
money, the money of Washington, the unit of value, de- 
vised by Jefferson, Uie money of great minds in every age 
of civilized man, the money of the Constitution, the money 
of every period and of every political party of this Eepub- 
lic, imtil a recent day, was restored by law to coinage and 
to circulation. Let that day be remembered forever in the 
American calendar as one, on which a great victory was 
obtained, the first in many years, by the industrious, pro- 
ductive masses over the usury-gathering, idle, unproductive 



few. TliiB triumph of popalar justice was not the less pre- 
cious to honest and generous minds, because of the scenes 
and drcamstances, which attended it The act for the re&- 
toratioQ of silver money was passed tjirongh both branches 
of Congress in the face of prophecies of evil to the conn- 
by, etc. . . . 

, When their pretended concern for the welfare of the 
country, and their real concern for their own enormous pro- 
fits, were exposed and disregarded here, they bent their 
faces confidently toward the Executive Department of the 
Government, that last refuge, as it seems, for special privi- 
leges to favored classes. They were not mistaken; they 
did not make their appeal to that Department ia vain, 
etc. . . . 

In de&ince of the public will, in contempt of the policy 
of the Government for more than four-score years, and in 
open disregard of the wants of trade and business, the ad- 
ministration of Hr. Hayes sent to us his puny protest 
against the dreadful consequences of silver money. His 
veto, however, was swept aside by the Congress of the 
United States, as people brush cobwebs out of their way. 
The bill, restoring the silver dollar to its place in the coin- 
age laws of the Goveranient, was enacted into a law, over 
all combined opposition, by the tremendous vote of 196 to 
73 in the House, and 46 to 19 in the Senate. 

And now, sir, what response has the business of the coun- 
try, during nearly four years past, made to the evil and ve- 
hement prc^ostications against the use of silver money 1 
Has it brought ruin, has it brought calamity, has it brought 
distress to the people ? Who has the hardihood to say so ! 
On the contrary, behold a contrast in the condition of the 
country. The five years, during which silver did not exist 
as l^al currency, were years of the most appalling financial 
disaster ever known in American history. I am speaking 
now of what all men know, and stating that, which no man 
will deny ? From 1873 to 1878 there was a period of 
mourning over lost property, lost homes and lost labor, in 



every active basmesa comnmnitj in the TJmted States, 
etc . . . 

The passage of the Silver Bill was accompanied by the 
groans and lamentations of the associated national banks, 
expressed in many a sombre memorial, petition, remon- 
Btrance and expostolation, laid before Congress, etc. . . . 

The Act of Oongrees, by which silver -was dishonored, was . 
a prominent feature in a most nnrighteons and criminal en- 
deavor to BO contract, cat down and diminish the amount of 
money in use among the people, that the hoarded millions 
of the hanker and the capitalist would have more power in 
the affairs of men, than all the other powers of this Govern- 
ment combined. The dream of certain minds, in this coun- 
try, has been for many years past to create in fact, if not in 
name, an order of aristoccacy, a privileged class, with their 
rank and importance founded, not upon intellect, coltnre, 
refinement, grace or goodness, hut upon their success in the 
practice of avarice, tiie meanest and most sordid passion of 
the human heart ever spoken of in the heavens above or the 
earth below. In furtherance of this purpose the possession 
of money, especially in considerable sums, being a badge of 
the new nobility, the common people were to have as little 
of it as possible, and for that litUe to be dependent entirely 
on the lords of capital, etc. . . . 

The Secretary in trying to make the impression, that sil- 
ver money is a drug and a failure, and that the people do 
not want it. Who can justify this assaolt upon the exist- 
ence of a hundred millions of currency, possessed of the 
same purchasing power as gold i I denounce it, and chal- 
lenge the friends of such a policy, if it has any here, to 
come to its rescue. Let those, who will or dare, stand forth 
as its diampions. This issue, thus forced without reason or 
jnstice upon the conntry, wiD be met by the country, and 
its anthers will he sternly rebaked. 

Sach a movement, however, against financial stability and 
security, must neceBsarily have a powerful inspiration in 
some deeply interested quarter. We are not left in doubt 



ftt all as to the source of tliat inspiration. In connection 
with the proposed retirement of silver, and in order to quiet 
the fear in the pnblic mind of a destractive financial con- 
traction, the Secretary, as the monthpiece of the banks, is 
good enongh to s&y in his report : 

' There need be no apprehenmon of a too limited paper 
circnlation. The national banks are ready to issne their 
notes in such quantities as the laws of trade demand, and as 
seonrity therefor the Grovemment will hold an equivalent in 
its own bonds,' etc. 

We are told, that the national banks are ready to issne 
their notes in place of the silver currency, marked for de- 
Btmction, and to do ao in such quantity as the laws of trade 
demand, the banks themselves, of course, being the judges 
of the laws of trade and of their demands. The country 
is to depend, in other words, on the interest or the generosity 
of the banks for its supply of money, etc. . . . 

The question, here presented by the Secretary of the 
Treasniy, is whether to such minds shall be surrendered the 
entire control of eapply and circulation of the currency. 
Who is ready to support such a proposition ! Has national 
bank money been furnished at so little expense to the people, 
that they want it to take the place of all other kinds ? I do 
not wonder, that the banks want a total monopoly of the 
cnrrent^ ; but it is astounding to me, that taxpayers should 
be willing for them to have any control at all of that vital 
qneetion. The desire of the banks to destroy silver and 
greenbacks is very easily understood, etc. . . . 

It is difBcult, in moderate terms, to characterize such a 
recommendation. It is a wanton and, to my mind, a criminal 
assault upon the financial stability and the business prosperity 
of the whole country, etc ... 

But the Secretary of the Treasury does not stop with the 
recommendation I have cited, for the destruction of good 
money in the form of silver certificates ; he modestly asks 
for the repeal of the act of February 28, 1878, providing for 
the coinage of silver, and requests, Uiat the whole subject be 



left hy Congress to liia discretion to coin much or little or 
none at all, as he may think best. His language is aa fol- 

' It ia therefore recommended, that the provision for the 
coinage of a fixed amoont each month be repealed, and the 
Secretary be authorized to coin only bo mnch, ae will be ne- 
cessary to BQpplj the demand.' 

It ia very obvioos, that the ol^ect of this recommenda- 
tion, on the part of the Secretary of the Treasury, is to 
drive sOver entirely out of circulation. This will be seen 
from the fact, that he attempts in his report to show, that 
there IB DO demand for silver, and aims to make a false im- 
pression, that it has been difficult to pnt silver money in 
drcnlation. I qnote as f oUowb from his report : 

'Afl required, by the act of Febrnary 28, 1878, the De- 
partment has caused to be coined into standard silver dollars 
each month at least $2,000,000 in valne of bnllion of that 
metal. Constant efforfa have been made to give circnlation 
to thiB coin, the expense of transferring it to all points, where 
it was called for, having been paid by the Government. 
Only abont thirty-fonr millions are now in circnlatioD, leav- 
ing more than sixty-six millions in the vaults, and there 
Ib no apparent reason why its circulation should rapidly 

Sir, what most be thought of tlie candor or the intel- 
ligence of this public officer in speaking of sixty-six milHonB 
of silver in the vaults with no apparent reason for an in- 
crease of its circnlation, when in point of fact every dollar 
of it is now in chrculation in the form of a paper currency 
resting upon a specie basis ? etc. ... 

Tlie profits of national banking, nnder our present system 
have been, and continue to be, something almost fabulous, 
and it is natural, that those engaged in it, should desire to 
expand their operations over the entire currency of the 
country. This is the aolntion of their ceaseless agitation 
of more power over the finances. But a short time ago 
they were demanding, throngh the Executive and the then 



Secretary of the Treasniy, now the Senator from Ohio 
(Mr. Sherman), that the legal tender debt paying qnality of 
over three hnndred'and forty-siz millions of greenbacks, 
then at par with gold, should be withdrawn, and that this 
money, costing the people nothing for its circnlation, ahoold 
be left to perish by the wayside. This was to be done in 
order, that the banks might isane their notes in its place 
'in such qaantity as the laws of trade demand,' according 
to tSe broad discretion, now conceded by the Secretary. 
Let us look, however, for a moment in this connection at 
the cost to the people of bank note currency, and see whether 
a cirenlating medium so expensive dionld snpplant all others. 
The bank note circnlation has averaged in ronnd numbers 
abont $280,000,000 during the laat eighteen years. Govern- 
ment bonds, owned by the hankers and drawing interest 
from the labor of the people, were pledged to the amomit 
of over $320,000,000 for the secm^ty of this circulation- 

The interest, paid by the people and received by the 
banks on these bonds, may be stated at an average of not 
less than $17,000,000 a year; this, for eighteen years, 
amounting to over $300,000,000 for the blessings of bank 
found money. By adding to this interest account the profits 
of the banks on their circulation and their deposits, it wiU be 
that they have received enough gpins from the pockets of 
the people, since their creation, to pay off two-thirds at least 
of the national debt. And these vast enms have been paid 
to the banlcs dmply for the privilege of receiving through 
their hands a little more than one-third of our cun-ency, of 
no better quality than the other currencies, for whose cir- 
culation there was no tax on anybody. Is this such a show- 
ing as to entice Congress to abandon the whole financial 
question to the banks i etc. . . . 

Against the present paroxysm of greed on the part of 
corporate and consolidated banking capital, demanding 
through one of the departments of the Government the dis- 
grace ind the overtlirow of silver money, I invoke the judg- 
ment and oo-operation of all tlie busy multitudes of indus- 



trioos men and women throngboat all- this broad, progree- 
sire land," etc. . . . 

A New Busihxss fob National Baiiks. 

(iTew York Herald, January 28, 1882.) 

"Wlienever a financial measare la proposed in Congress, 
OBtenaibly, perhaps really, for the public good, bat by which 
the national banks may possibly benefit, a very bowl is 
raised over the country, crying out that nothing shonid be 
done, which will add to their already great strength and 
vast inflnence. The varions bills before Congress on mat- 
ters, connected with the pablic funds, are closely watched 
forbidden evidences of nationaHank jobbery, and the pass- 
ing of neceeaaiy measnres is often delayed by the close in- 
spection of these financial detectives. Congreesman Till- 
man, it would seem, has, however, quite evaded the close 
Bcratiny of a little bill, now before the House, to authorize 
national banks to make loans npon mortgage of real estate. 
On its face it is a harmless affair ; bat it is really a most 
dangerous bill, which should be carefully inquired into and 
combated by believers in a safe and conservative system of 
banking. It relieves the banks of the restriction, now im- 
posed on the investment of their funds, enables them to 
enter the real estate market as speculators, allows them to 
invest in mortgages of any and all kinds, does not bar di- 
rectors from loaning the fnnds of the bank to a member of 
the direction, and, in fact, permits them to do what they will 
without let or hindrance in negotiating loans on good, bad 
or indifferent real estate security. It opens the door to 
worthless investments and to financial knavery of various 
kinds, and threatens to inangnrate a new hueineaa f<yr 
naiumal hanks, for which they were not organized, which 
is beyond the limits of their legitimate functions, and 
which can only breed distruat in their ultimate soundness, 



and will eTontiuUj create eerions tionble in the boalDese 

" Dr. Newman preached to a lai^ oongr^ation, in his 
chnrch on Madiaon Aveane, on abuses of partisan role in 
New York, and the moral responsibility of oar citizens. 
His text was Exodus, xviii., 21 — " 'Thon shalt provide out 
of all the people able men, such as fear God, men of truth, 
hating covetouanees, and place over them to bo rulers.' 

The great need of the hour, he said, is a political con- 
science, which will respond to every voice of duty and of 
justice. Each man should have a conception of his dear 
political duties, a realization of hie individual responsibihtj 
in the issues of an election, a manifest interest in the moral 
character of officials, not unlike that, which he feels in the 
character of the minister of his chnrdi, the teacher of his 
chUdren and the agent of his business. 

Two ohjectioDB are offered in apology for the non-perfor- 
mance of onr sacred politico-religious duty — the nncongeni- 
ality of politics and the lack of time to attend thereto. A 
man might as well plead the unpleasantness to pay his 
debts, to keep liia bridal vows, to obey his Ck>d. A man, 
who boasts / never vote might better boast I never pray, for 
prayers and votes are always the same before the bar of 
God. Do you plead, that the professed politician is eo 
degraded, the caucus so low and the Convention so corrupt \ 
Plead the same objections against business associations. A 
politician is a saint to some bnsiness men. Clean out the 
politician and improve the Convention. If Christ came into 
this world of ain to save it, the saint should go to the cancne 
to redeem it. Not a few plead business cares, but intense 
selfishness is the root of evil. Snch men forget, that were 
it not for organized society they would neither have wealth 
nor pleasure. 



Spegoh op Hon. Iba 8. Hasbltihs, of Missomti, in the 
House of Repkesentahveb, Mat 13, 1882, on the 
Bnx TO Enable National Bankino Absociatioks to 
Expend theib Cospooatb Existence. 

Me. Haseltinb said : 

Mb. Skeakeb : I propose the following amendment ; 

" That all the intereBt-hearuig indebtednese of the United 
States now dne or optional with the Government, and all 
odier interest-bearing indebtedness as it shall hereafter be- 
come due, shall be pud in lawful money of the United 

"Sec. 2. That all money now in the Treasoty, and all 
revennes of the United States Government not otherwise 
appropriated, shall be applied in payment of tlie interest- 
bearing debt. 

"Sec. 3. That the Secretaiy of the Treasary be, and he 
is hereby anthorized and reqnired to issue non-intercst-bear- 
ing Treasury notes of the United States of the denominations 
of one, two, five, ten, twenty, fifty, and one hundred dollars, 
which shall be made lawful money and a legal tender at its 
face value for all taxes, revenues, and debts, public and pri- 
vate, within the United States, which may be necessary in 
' addition to the aforesaid money and revenues to pay the 6aid 
interest-bearing debt now dne, and also the interest-bearing 
debt now optional with the Government, and all otlier in- 
terest-hearing debts as they shall respectively become due. 

" That the Secretary of the Treasury is hereby authorized 
and required to issue Treasury notes made a full legal tender 
and lawful money in denominations convenient for carrency, 
and in quantity equal to any contraction which may be caused 
by the withdrawal of national-bank notes. 

" Sbo. 4. That all acts and parts of acts in conflict here- 
with be, and the same are hereby, repealed." 

Mr. Speaker, this amendment provides for paying into the 
circolation all money and revenues not otherwise appropri- 



ated, and iBsning legal-tender corrency to take the place of 
interest-bearing bonds now dne, or optional with the Govem- 
luent, and aleo to take the place of national-bank currency. 
It provides against' any contraction by the withdrawal of bank 
paper and eaves to the people from $12,000,000 to $16,000,- 
000 per annnm. The adoption of this amendment would 
provide for the payment of the interest-bearing debt and 
supply the people with money which is preferred to gold. 

Mr. Speaker, Hon. Peter Cooper, Hie great Ameriram 
philanthropist and political economist, who in moral and 
patriotic grandeur i& second to no man of his time, in his 
late petition to Congress proteete against the passage of the 
bill Qnder consideration as reported by the committee, and 
presents the argument for a just and enlightened policy so 
clearly and forcibly that I deem it due to the cause and in 
the interest of good government and humanity to give his 
petition entire, etc. (See " Congressiojial Mecot-d.") 

"Letter to the New York IndependerU by the Rev. 
Thomas K. Beecher, of Elmira, in reply to an extract, pre- 
viously published in that journal : " 

' If these G-reenbackers had as much sense aa persistency 
we should think very well of them.' — Tnd^endent, July 7, 

" Mr. Editor and readers of the Independerd, have yon 
ever read for yourselves the authoritative deliverance of this 
'■National' party i Not less than thirty times, during the 
last two years, acgnaintances of mine have asked me. How 
can you, wiih. your inttiUigence, aUow yourself io he called a 
Greeiibackerf To which question I make answer as above: 
' Have you read our platforms ( ' I find invariably, that 
they have not, and when I name over one by one om- car- 
dinal doctrines, I have to find a man, who does not agree 
with ns. 

■ IS'o one can yet foresee which one of onr half dozen doc- 
trines, is first to arrest the public ear and hold it long 
enough to get an answer. But, mark my words : They will 



force themselves in Eome order upon general attention more 
and more, becaoBe each and every one handles a vital qaes- 

Eameat men, disgusted with the mean and mercenary 
phase of 'politics,' when once they i:pme into a convention 
or council of Oreenbackere, are refreelied to find themselves 
in company with iutelllgeat and nnambitions men of princi- 
ple; men, who modestly illoBtrata that, which Goldwin 
Smith prayedfor : ' Heaven preserve England and make her 
public men think what will become of themaelres at the 
next election.' 

" Mr. Editor, we have ' persistence,' because we have 
* sense.' At a time, when the venerable statesmen of the 
United States Senate concentrate their sublime powers of 
debate upon the little Penn Tan post-o£Bee, and after listen- 
ing to ' masterly orations ', vote upon the question, whether 
Lapham or Miller shall name the postmaster, it would seem 
as if it were time for somebody, somewhere, to call atten- 
tion to questions of scope and dignity. 

Already the organized Anti-Monopoly League in this and 
other States, has borrowed one of the principal demands of 
the Nationals and made it a rally. All right. 

AJready every business man in the land prefers a green- 
back Treasury note to any otlier form of paper or metal 
money. And we Oreenbackers say : All right, we say so, 

Who of all the readers of the IndepeiiderU for a moment 
doubts, that the multiplication and encouragement of small 
freehold farms and homes is a good policy for any State } 
Who that has read or thought fails to perceive, tiiat vast 
plantatione, estates, ranches, grain or stock farms, held by 
one patron or capitalist landlord, have been and are ruinons 
to Rome, Ireland, France, and even to New Tork ? Ought 
not limitation laws te find some place on our statute books i 

Ought not a corporation, that has received land grants as 
compensation for work to be done, to either do the work or 
elae quit selling off the lands and pocketing the proceeds J 


294 con? AND PAPER O0BKE1TOT. 

If the control of the MissisBippi, as a free water-way foi 
commerce, was of Bach Importance, as to jnstify the Loa- 
ieiaaa purchase and furnish our strongeBt argnment against 
seceseioD and a epUt Union, is not the control of tnuiBcoii- 
tinental railways of far greater importance— channels that 
they are of a far greater commerce and travel i 

If we noisily protest, that foreigners mast not control the 
Isthmns canals, how can it be safe to allow Gonld and Yan- 
verhilt to control transcontinental railways? 

If, for pmposee of revenue, our GfovemmeBt inspects 
whiskey and certifies the proof — bo much Bpirit and so much 
water — why not inspect stocks and forbid dividends on 
waterings, and call into the Treasury the earnings, now ab- 
sorbed by barefaced 'frauds t 

Questions like these interest ns Qreenbackers far more, 
than the faction fights, that absorb the attention of the two 
great parties. As a Christian pastor and teacher, I invite 
young citizens to discuss these qnestione, for they yield an 
education every way. 

But as between the two old parties I am not able to dis- 
cern any difference of doctrine or policy ; nor do I find, that 
party leaders set any great value npon public discnssioQ, or 
controlling votes or carrying elections. 

Hubbell is assessing the R^nblican officeholders. Con- 
ventions inqniie chiefly for candidates with a barrel, which 
they are ready to tap with a big auger. Votes are bought 
by the hundreds in tiiis little city of Elmira, under disguise 
as thin as a bride's veil. The appropriation bills in Con- 
gress are of interest chiefly, as furnishing the corruption 
fund of political war. Goodness, openness and honesty are 
sneered at as SuTiday School poUtica. I know no difference 
between. Kepnblican and Democrat, except that one is in 
and fat, the other out and hungry. 

And when the tidings came over the land of a new Na- 
tional party, with principles inBcribed on its banners, one 
would think, that good citizens, overweary with watcbiug 
for a chance to be active in pnblic affairs, withont being 



compromised by the comp&ny of liara, conapiraton and 
thieves, would at least ran and read the inscription. 

The only fault I find with mj Glreenback friends is, that 
they put too many good things in their platforms. Too 
moch sense, O Independent ! not too little. They talk aboat 
too many things. 

If counsel might avail in these unsatisfactory days, I 
would advise every patriot to forsake the two old parties and 
join the prohibition army, or the Anti-Monopoly Leagne, or 
the Greenback party. Join anything, anywhere, that enter- 
tains and proclaims principles, of which yoa can make your- 
self an enthusiastic advocate, year after year, no matter how 
the election goes, nor which Senator controls the Fenn Taa 
poet- office. 

There is a pore and bright political enthosiasm which, 
next after the inspirations of home and the hope of heaven, 
is the noblest stir possible to man. I know Greenbackers 
not a few, who have felt this quickening. Many each were 
at Albany at their recent Convention. "With them or with 
their like it is an honor and a refreshment to be associated. 
Teohas E. Beboheb." 


liBTTBB OF Bet. Howabd Cbobbt. 

"OoloberSl, 1893. 
"Editob Jobticb. 

" Sib : If we are trbe in oar desire to overthrow mono- 
polies and the tyranny of wealth, which are thegreateat dan- 
gers onr Kepublican institatiooa have to fear, I cannot see 
how we can avoid voting against the candidates (however 
excellent in personal character), who have been nominated 
by Uieee evil powers. I am a Kepnblican, and have always 
voted the Repablican ticket ; becaase I believed theBepab- 
lican party represented political wisdom and virtue, as 
against demagogism and anarchy. Bnt, if the helm of the 
Bepablican party is to be seized by a selfish class interest, 
its wiadom and virtoe are gone. The only way for tme 



EepublicanB to bring back tbe party to its pmity, is to vote 
down the nominees of the conspirators. Bat this (say some) 
wOi give the State to the Democrats. Veiy well I Let tiie 
Democrats have control. I'll trust an bonest Democratic 
party rather, than a dishonest Kepublican party. We know 
what the Democratic party is, and will be on oor guard; 
bat a Repablican party, that professes a high morality, 
while promoting rascality, will only deceive. 

The election of the present RepubUcan State ticket would 
be the endorsement of bribery, fraud and the tyravavy cf 
the money power. No consideration whatever can justify 
this. Fortunately the Democratic party have given as can- 
didates of the very highest character, whom we all can re- 
spect and support without any qualms. By their election, 
not the Kepublican party, but the miserable, dirty wire- 
pullers, will be defeated, and a blow will be given to Mon- 
opoly, Greed, Trickeiy & Co., under which they will stagger 
to their holes. 

The whole question, which the voters at the coming elec- 
tion have to meet, may be narrowed down to this, ShaH we 
hmm money-hrda to rule uat or specifically, ShaU loe con- 
dem/n Governor Cornell for vetoing the Elevated Jiailroad 
Tax BiU f The aye to the latter means aye to the former. 

I make no apology for meddling with politics. I am an 
American, a citizen and native of New York. I never 
sold my birthright. When great moral crises aris^ I will 
not hesitate to speak as loudly as I can for the troth. 
With mere local and personal politics I have nothing to da 
I add these last words for the benefit of those, who suppose 
clergymen are either women or children. 
Yours very truly, 


" The Eev. Elbert S. Porter, D.D., who has long been 
known as a Stalwart Kepublican, discueeed the political situ- 
ation last Sunday night, in the Bedford Avenue Keform 
Church, Brooklyn, E. D., of which he is pastor. Dr. Por- 



ter prophesied the early dissolntion of both the political par- 
ties, as the old questions were no longer lire iesnee, and 
nothing bnt the spoilB kept either part; together. A new 
pajty, formed by the beet men of both parties, would come 
into the control of the GK)Temment and its platform would 
be civil service reform and An^i-monopoly. It would be a 
good thing, he continued, for the BepnbUcan party to be 
defeated this year in New York, as it doubtless would be de- 
feated. The Bepublican party never stood so high as it did 
now, when its members were unwilling to submit to machine 
dictation and preferred defeat rather, than victory by fraud. 
I have voted the Republican ticket since 1860, he coutin- 
ned, on State and national issues, bnt the party is so cor- 
rupt now and is so eager to dntch at money, tiiat it is best to 
defeat it." 

" The Rev. D. M. Hodge, pastor of the Harlem Univer- 
salist Cborch, preached in the evening on Politica, taking 
his text from Deuteronomy xvi., 18, 19, 20 — ' Judges and 
officers shalt thou make thee in all thy gates, which the Lord 
thy Gkid giveth thee throughout thy tribes, and thou shalt 
judge the people with just judgment.* This, he said, is the 
political council of the Mosaic law. It ui^s the duty of 
the people to make their own judges and officers. I have 
not any very high opinion of what are conmionly known as 
j>oliiical sermons. I should not know how to preach one. 
Eut the subject of politics itself is one, which commands a 
great deal of the thought and time of the people. 

The present condition of political affairs is notoriously 
corrupt. From secret conclaves and nominating conventions 
comes up a stench of evil, offensive in the nostrils of honest 
men, so that men say : 'The whole business of polities is so 
corrupt and disreputable, its methods are so fnll' of intrigue 
and dishonesty, that it seems most consistent with the dig- 
nity of the Christian pulpit and of high-minded men to let 
politics severely alone, to ignore the subject altogether.' But 
it is this kind of dignity, that is killing us. It suits the 


Sd8 com Aim fap£B otTBBENcrr. 

politicianB too well. AH that a low, mean, lyinfe forging, 
intriguing demagogne wants is to be let alone. 

The greatest danger, that threatens our institntions grows 
out of tiie apath;r of onr best and most intelligent citizens. 
Upon every citizen rest the duties, the obligations of citizen- 
ship. He has no right to n^lect them, or pnt them aside 
and to leave honest and disinterested men anxious for good 
Government in an impotent minority. 

Yon are a citizen of the United States of America, of the 
planet Earth, and the best thing yon can possibly do, is to 
roll np the sleeves of yonr dignity, vote and work against 
the demagogues, and so help to improve the sanitary condi- 
tion of American politics. If you don't do this with alt 
yonr intelligence and integrity yon don't count. Be inde- 
pendent I If both parties, or both sets of candidates, are ob- 
jectionable, be yonr own party, till you find somebody of 
yonr own way of t^i'ikttig ; nominate your men and vote 
for themu" 

Geheral Wbavsb's Speech at Coofbb Utnoir, Kevt To&e, 
KovxuBEB 5, 1882. 

" Let me state the issues separately. They are aa follows : 
First — What shall be the permanent system of jmanoe in 
the nation, which, when adopted, shall exist as long as the 
Bepubhc shall last } Shall it be a system, where the power 
to issne the money and control its volume shall be delegated 
to an irresponsible ha/nkmg monopoly, or shall it be a sys- 
tem, where the people govern themselves upon finance, as 
they do in war, peace and the domestic relations ? This is 
a very great question, because the finances of a conntty 
relate to the moral and physical welfare of every sonl, 
that lives under the flag, and every hour that they live. It . 
takes hold, not only of the physical condition of man, but 
also npon the spiritual and intellectual conditions, etc 

This question of fioancie takes hold of the trinity in man. 
The Saviour understood that very well, when He fed Hia 



hungry disciples before He preached to them. The second 
great queetion is cogn&te to the first : Shall the railroad 
corporations be brought into Bnbjngationtolaw and be com- 
pelled to work in harmony with labor, or shall they become 
onr modern barons, lords and masters } Third, Shall the 
public debt remain } that cancer apon the body politic, 
-which, when it only amounted to about $16,000,000 in the 
daysof Jefferson, so troubled him, that he wrote concerning 
it : ' When I think of the poblic. debt, I cannot sleep npon 
my pillow, 80 certain am I, that, if allowed to remain, it will 
undermine the liberties of the American people.' " Kow, 
here is a trinity of great questions, and oat of the- trinity 
grow a group of other questions, such aa the land question, 
' and various other qnestions, that to-day agitate the heart 
and the brain of the American people. Thes« are the great 
issues. Why do yon require a new puiy to settle them ! 
Give me your close attention upon this point. Prominent 
National Bankers ai-e Bepnbhcans. Prominent National 
Bankers are Democrats. Prominent railroad kings are Be^ 
publicans. Prominent railroad kings are Democrats. Prom- 
inent Democrats own large interests in Oovemmentbonds^ 
and when they meet in their national conventions, they sim- 
ply train both the old organizations in the interest of those 
monc^lieg, etc. Hence the monopoligta come into the old 
parties and do tlieir work,- throw their influence and great 
wealth npon the sideof the monopoly factions, and the re- 
sult is, they control your conventions and control your nom- 
inations, etc. 

The monopolies are all confederated tc^ther. They 
fight under one flag, they are all in sympathy with each 
other, and the greit mother monopoly of them all is the 
national hanking numqpoly. 

I wish to illustrate briefly the bank monopoly by a conple 
of bills, which I hold in my hand. This one dollar bill is 
a greenback, and this one a ruUioiud hmh hUl. Now, these 
two bills represent the second edition of William H. 
Seward's" ' Irrepressible conflict,* that is still going on in this 



country ; the irrepreseible conflict between the people and 
the people's money on the one side, and corporations and 
corporation money on the other. 

I gay the conflict is irrepreasible, for one or the other 
must go. 

The decree has gone forth on theone hand, that the green* 
backs shall go, and we declare, that the national banks shall 
go. The Republican party has declared war against the 
greenback, and we respond," ' Lay on, Macduff,' — " and you 
know the balance of the quotation. Now, this ffreeniack 
bill is the money of the ConatUution, I say that, because 
the Supreitie Court of the United States hm decided^ that a 
greei^ach ia comtit^utional Tuoney ; not because issued in 
the time of war, but they have decided it to be constitu- 
tional, upon tthe broad pedestal of the Constitution itself. 
It is, then, the money of die Constitution. It is the money 
of the Constitution in a far dearer sense than that, because 
we know it saved the Constitution, when the storm and 
tempest were howling about her. Things don't happen in 
this world as often as you may think they do. There is" 
' A divinity which shapes our ends,' " and consequently it is " 
very appropriate, that yoa should have the picture on this 
constitntional money, that I find here, the picture of the 
Father of liis Country, who presided over the Constitutional 
Convention. Very appropriate, that this picture should be 
upon that bill. Now there is a picture upon this national 
bank bill, that is also appropriate. Two women, bare- 
headed and bare-footed, in a wheat-field, shocking wheat, 
emblematic of the poverty, engendered by this system of 

Now, when the Government of the tfnited States issued 
that greenback dollar and paid it out, it got value received 
for it. That was right, was it not? The Glovemment ought 
not to give away its money. I have no reference to pen- 
sions ; that is not a gift. Nor have I any reference to pro- 
per charities, the Qovernment sometimes has to indulge in ; 
but, as a rule, the Government ought not to g^ve its money 



away. So, when the Government issued, that dollar, it got 
valne received. We have $346,000,000 of greenback moDey 
in circnlatioD. When the Government paid it ont, it paid 
$346,000,000 of debt. That waa right, etc. . . . But 
when the Gt)vemment paid out this national bank bill to 
the First National Bank of the City of New York, how 
much did it get i They did not get a cent. It was a clear 
donation. The GoTernment does get one per cent, per an- 
nnm tax ; that is all. Bat it did not get it in advance. 
When the Government ieeued that bill it was a clear dona- 
tion to the Bank. Now, we have $357,000,000 of that kind 
of money in circulation, and when the Government iseaed it, 
it waa a gift of $357,000,000; and to what class of men) 
Kich or poor } Rich men, who already had their money 
invested in Government bonds, and were shirking every 
burden, that yon people have to bear. Tell me why the 
Government of the United States should do that thing! 
If I have a $100,000 bond, or if the bank, which issued that 
bill had a $100,000 bond deposited as security for their cir- 
cnlation, they continue, and are, to-day, drawing interest on 
every farthing of that bond, and the Government, in addi- 
tion to that, gave them back $90,000 in national bank cur- 
rency. You give the national banker $90,000 simply, 
because he is the fortunate owner of a $100,000 bond, that 
draws a high rate of interest and pays no taxes. * 

O, that some spirit, some influence maybe breathed upon 
the people, that shall arouse them to a sense of their real ' 
situation I At the end of the first century of our national 
life, through cruel class legislation, every avenue and agent 
of commercial life and activity have been wrenched &om 
the people, and turned over to corporate control and greed. 
We, to-<3ay, practically have but one railroad, one banking 
oi^ani2ation, one telegraph company, and one express com- 
pany. Now we declare to you, that these things must not 
be so. We are building a new atmcture, a new party ; 
what shall be its chief comer stone ! Early in the year 18G0, 
Abraham Lincoln made a speech in this hall. Let his voice 


302 cora- Ain) paper cubkenct. 

be heard again here to-night President laccolo, in hia 
first annual message, December 3, 1861, declared as fol- 
lows : " * There is one point, to which I desire to call atten- 
tion ; it is the attempt to place capital on an eqnal footing 
with, if not above, labor, in the stnictnre of Government 
Labor is prior to capit-al. Capital is the fruit of labor, and 
oonld not exist, if labor bad not first existed. Labor, there* 
fore, deserves mnch the higher consideration.' "This is 
the chief comer-stone of the new political party. £ot how 
hollow and meaningless is Mr. Lincoln's declaration, when 
read in ttie light of the class legislation of the past fifteen 
years I Capital has not only been placed npon " ' an eqoal 
footing with labor,' " bnt by law it has been made the mas- 
ter and oppressor of labor. It is the mission of the Na- 
tional party to destroy this abnormal condition of things 
and to restore labor to its rightfnl snpremacy. Not that 
we wonld bring on a conflict between capital and labor, bnt 
that we woold prevent it. I^bor and capital were joined 
together by onr all-wise Creator. Let no man put them 
asunder. Their relations mnst be most intimate, friendly 
and tender. Bnt this is not the ease at present. A man 
owning a $50,000, 4J per cent Government, bond can now, 
nnder the law, without doing a day's work, convert his fifty 
thonsand investment into an investment of more than one 
hundred thonsand. He can deposit his $50,000, 4^ per 
cent., and draw ninety per cent of the market value of his 
bond in national bank cnrrency, while his neighbor with 
$50,000 invested in productive industry, of course, can do 
no such thing, but must labor and lose, and in addition bear 
an nndne share of the burdens of the State. How long, I 
ask, will this condition of things be allowed to exist ? Labor 
is compelled to borrow from those, who do not work, and 
whose wealth is given to them by statutory enactment. The 
laborer makes his money by hard knocks, and the bond- 
holder his by " Be it enacted, etc. . . . 

Why, my fellow-citizens, between the teachings of modem / 
fiepnblicanism and the doctrine of Abraham Lincoln, con- 



ceming the rights of labor, there is a gulf as wide as that 
between the rich man and Lazams, after the latter had 
reached heaven and the former had been cast down to helL 

It was the maxim of onr Fathers, that industry, economy 
and wise investment of surplus earnings in productive pur- 
BuitB cooBtitnted the only legitimate road to affluence. Bat 
it is not so to-day. Industry toils as a slave io corporate 
greed, etc. . . . Confederated monopolies hold the 
issues of life and death in their hands. They dictate to 
the producer what he shall have for his toil, and to the con- 
smner what he shall pay for the bread of life. The most 
dazzling, and heretofore unheard-of fortunes, are being 
piled np by means of this extortion. And in torn this 
wrongful accumuladon of wealth is being openly used to 
subsidize the press, employ the best trained talent of the 
country, and to corrupt public officials, Legislatures, Con- 
gress, and jndicial tribanals. Who is able to deny these 
things ? Why, if you wish to get a glimpse of the inflnence 
of corporations over your Government, contemplate for a 
moment the awful fact, that the Government, in utter vio- 
lation of its trust, has given away to railroad corporatuma , 
owr 260,000,000 acres qf the jniblic domain, that was in- 
tended by a kind Providence as homes for onr children. 
An area nine times larger than the great, State of Ohio ! 
Just think of that for a moment, and yonr hearts will grow 
side within you, etc . . . 

Now, whence must our help come in this extremily t I 
answer, from the people and through the instrumentality oiF 
a new party. Foi^ttuig ourselves we must continue to go 
forth, every one of ns, as evangels of truth, educating and 
arousing the latent energies and hearts of the people. The 
remedy must come through the hcMot horn, and it most come 
in harmony with the business safety of the community. We 
seek no violent or doubtful methods, but only to n^er in 
purer methods and the rightful reign of the people over 
their own affairs. 

We aliall not be disappointed, for our party is strictly 



natioDal in all of ita aims and aspiratione. Sectional ani- 
niosities are wholly unknown within our party, and the Sonth 
will gladly strike hand with ns to nsher in the new cirih- 

Fortunatelj for that section of onr Union, she is free, 
comparatively, from hank monopoly/ and other corporate 
power. She has now the opportnnity, rarely offered to any 
people, to become the leader in an emancipation, that will 
endear her forever to inankiDd. She will not be slow to 
see the great opportnnity. Her stateemen, less sordid than 
many in other localities, are awake to the situation. We 
hail her people as co-laborers in the greatest reform move- 
ment ever inaugnrated since the dawn of hnmsn history. 
Political animosities perish and are forgotten in the presence 
of onr National, our most fraternal organization. Let us 
take courage from the recent large gains at the West, and 
go forward. We stand at the ushering in of a new era. 
Old things, old parties, shall pass away, and 1<^ all things 
shall become new I " 

Hon. William S. Holkan, of Imdiana, on Natiokal 
Banes and Monopoly, in the Houss of BsPKEaBNTATivES. 
Mft7 16, 1882. 

" Those patriotic institutions, which gentlemen are so 
anxious to invest with the absolute control of your currency 
— the life-blood of yonr business and prosperity — were per- 
fectly willing to overturn your admirable monetaiy syEtem, 
disorder your indnstries, and throw multitudes of men out 
of employment to defeat an ordinary and proper act of 
legislation, affecting them about one per cent on their bonds, 
when you were furnishing them $343,000,000 of paper at 
yonr expense, with Government indorsement at one per 
cent, per annum. 

These banks are making a steady and persistent war on 
yonr greenback money, silver certificates and the silver dol- 
lar, and are already supported by high officers of the Gov- 
ernment Does any gentlemen on this floor doubt that, if 



the system ie pemianently established by tbe passage of this 
bill which, at no remote day, at the demand of these banks, 
your greenback money and silver certificates will be retired 
and national bank notes substituted in their place ? Their 
system is well defined and simple gold coin the only stand- 
ard of Talne, and no taxation by the Govemnient, even the 
one per cent, they pay yon for their circulation to be re- 
moved. The Comptroller of the Currency, the representa- 
tive of the system, in his last report, page 62, says": — 

' The Comptroller again respectfully repeats his recom- 
mendation for the -repeal of the law, imposing a tax npon 
bank capital, deposits and the two per cent, stamp upon 
bank checks.' 

" And on page 58 of the report orges, that Congress shall 
limit the States in taxing the shares of stock, and yet during 
the last year there was paid out of your Treasury at the ex- 
pense of the Comptroller's Office alone for the benefit of the 
banks $214,118.50. 

Have great capital interests been bo mindfal of the wel- 
fare of the people, that yon can safely trust your currency 
to their keeping t If so, when has it been displayed ? I re- 
member very well, when a distinguished capitalist of Mas- 
eachnsetts rose on this fioor to ask for the passage of the 
bill to reoi^anize the Mint (an event so often mentioned 
here). I remember very well the incident, the questions 
and the answers, that accompanied the passage of that in- 
nocently-titled bill through the House, which struck from 
yoor coinage the silver dollar, and did it, too, on the very 
eve of the period, when the coinage of the silver dollar was 
to be vital to the public welfare. 

I would rather indulge the belief, that the distinguished 
gentleman was not fully consciouB of the measore under his 
control, and of which I believe he was not the author; but 
I am confident, that no man can carefully consider the events 
of that period and the men, who were then at this Capitol, 
and recall events transpiring in Europe, and the state of 
oar pablic debt, and the fac^ that the debts of the nations 



then exceeded in Tolnine any^ example in hiBtoiy, without 
being impressed with the belief, that that measure was not 
a mere incident of ordinary legislation, but a part of a con- 
spiracy of great capitalists against the labor of mankind. 

Our silver certificate is not a new idea. I think I have 
read, that the Dutch suggested the idea. The frugal burgo- 
masters of Amsterdam perceived the convenience of paper 
money a long time ago and organized a bank. The only 
law of that bank was that, when a paper dollar was issued, 
a silver dollar should be put in the vaults to pa; it, when it 
came back. 

I have entire faith in this system of silver certificates, and 
believe they will play an important and most valuable part 
in your currency system. But the audacious and persistent 
war made upon the legal tender notes, the silver dollar, and 
the silver certificate by the great bankers ought to inform 
our people, that in the early future there will be no divided 
control of your currency. The Government will issue all 
forma of currency for tlie common benefit of the people, or 
the national banks will issue it all on the credit and at the 
expense of the Government for the benefit of tlie banks. 

There is no country, where corporations exercise as tre- 
mendous a power as in our own. It is true, that incorpor- 
ated companies exist in Great Britain, and to a limited extent 
in the nations of continental Europe. There are nine^ 
banks in France, with thirty-seven millions of people ; but 
in all those nations corporations are hedged in and restricted 
by wholesome laws, and are made subordinate to the public 
good, except where thej have been organized for the ex- 
press purpose of giving strength to mouarchical power, and 
then they have been made suboi-dinate to Government, even 
if organized to oppress the people," etc. . . . 


" We have now a varied currency in this country, which 
passes at the same valuation, as fixed by the Government 



though ite so-called intrmsic valne is unlike in every case. 
To please those, who fix the gold dollar as the proper basis, 
we will pkee that first, and give the value in gold of each of 
the other dollars, which can hwy Just aa much labor, food., 
or imyQtmg else as the gold daUar pwt<Jiases : 

The gold dollars, 100 cents. 

The Trade sUver, 420 gr. . . . 99i " 
The Daddy dollar, 412* gr. . . . 97^ " 
The Mexican, 417* gr. . . . 99 '* 
Two half-doUars, 371i gr. . . . 88* " 

20 nickels, 5c. 17i " 

33* ** 3c 16i « 

The Greenback 

It will be observed, here are eight distinct kinds of 
money, which circulate indiscriminately in onr country, and 
the least valuable, inirinsicaUyy as compared with gold, 
buys just as much as any of the others. We want nn 
better argnment, than the table above to explode all the 
fallacies of the bnllionists. It is the stamp of the Gorern- 
merU, that makes money. Without it nothing is money." 

WsMDELL Phillips on Papeb Oitbhenct. 

"Men call the Greenback movement a delnsion and fan- 
aticism. What is fanaticism! It is enthusiasm blinding 
jadgment- It is prejudice — obstinately clinging to tlieories 
in spite of facts, which disprove them. Let us ask, then, 
who to-day are the fanatics, judging by this rule. Look at 
facts, the world over. Whenever, during the last centurj-, 
either of our great nations has seen its existence tlircatened 
by civil war, or foreign assault, instantly that nation has run 
to the shelter of faper currency, and generally been thus 
enabled to survive the storm. This is a fact, not a dream. 
Does this prove, that paper currency is necessarily ruin and 
shipwreck \ Does it not rather look ae if a paper currency 
had some quality in it, that called forth to the last dollar 
the resources of the people, and so stimolated their energies, 



tiiat they could avail themselves of all their poBsible and 
hidden power ? 

"When a man stripe to fight for his life, he puts himself 
in the condition and posture to do his beet. When a nation 
girds herself for a Iset desperate stmggle for existence, what 
does history tell ns she has uniformly done? Histoiy tells 
us, that a nation in such extremity has uniformly thrown off 
every incnmbrance, stopped every drain upon her resources, 
stimulated every possible power of prodaction, economized 
oil her means, and guarded herself, as carefully as possible, 
from all foreign interference with her business prosperity. 
How has she secured and effected all this 9 History answers, 
' By resorting to a paper currency.' 

There need be no fear of communism. Capital and labor 
have no dividing line here. Like the colors on a dove's 
neck, they join and imite everywhere. We have mingled 
freely with workingmen, and never yet met one, who did 
not believe and proclaim, that the interests of capital and 
labor were one." 


" No new party ever made sueb, rapid strides as the 
I^ational Greenback Labor Party, and no issues were ever 
presented, that so vitally affected the dearest interests of 
every laborer and producer. 

Of its final triumph and success there is no doubt. 

Knowing this, many ambitious aspirants, for position and 
recognition, will attempt to force their virtues and claims 
npon tlte party, and if they cannot succeed with the major- 
ity, they will attempt to divide and disrupt our organization, 
with a hope of forcing a recognition by using and control- 
ing a minority. 

Spurn all such disoi^anizing dem&gc^es, and stand 
shonlder to shoulder with the main army for certain and 
early victory. Give no countenance to disoi^anizing ^o- 
fists and place-hunters ; but let the people and the position 
seek out tJie most worthy to bear our etandards," 



I append the following quotation from a " History of 
Fio&nce in England," bj S. A. Gioddard, Birmingliam, to 
ehow, tbfit onr only hope of secnrity from the desolating 
blight of periodical panics must be fonnd in a non-ex^taft- 
dhie ^pa^per currency. 

These facts are so identical in their general character with 
the facts in this coiintty, that it can be easily seen they mn&t 
spring from the same causes and from a similar system of 

Hence they bear directly npon the qnestions now under 
discnsaion, and for this pnrpose seem to me veiy instructive 
and convincing. 

Mr. Croddard introduces his pamphlet thns : 

{/ The writer, having seen and felt the disastrous effects 
of five great panics in England and tlieir accompanying 
panics in America, which upon each recurrence have put a 
stop to trade, ruined clients and broken up arrangements 
and connections, formed after long, diligent and expensive 
exertion, is desirous of impressing on those, who have not 
stodied the subject, that similar panics will certainly occur 
periodically, so long as the present monetaiy system is 

If, in pursuing this search, it be found, that a similar 
depression of business to that now experienced, and to 
which these inquiries relate, has been witnessed peiiodically 
for a series of years, presenting on each return precisely tlie 
same characteristics ; and if, during the whole of these years, 
it be found, that a system has prevailed, npon whidi the 
business transactions, thns depressed, have been based, and 
that no other system, condition or circumstance, having any 
material general bearing on these transactions, has existed, 
or been in force throughout the same period, then it is 
&ir to conclnde, that to this system may the depression be 
attributed, and that a repetition of these periods of depres- 
sion is to be averted only through a reformation of the 

The Bank of England and Provincial Bank Notes con- 



fltituted the money of the country for a period of twenty- 
six years, performing all the neceefiary fonctions of money, 
effecting the exchanges of property, enabling capital to 
employ labor, to feed the hungry and clothe the naked ; and 
also enabling the Oovemment — whether for good or evil, 
need not enter into this consideration — to carry on a great 
war, and bring it to a triumphant conclusion. These notes, 
at no time a legal tender, passed current, and were taken in 
payment upon all occasions ; a fact higlily creditable to the 
good feeling and patriotism of the people. 

When the war terminated, the tuink commenced prepar- 
ations for a return to specie payments, occasioning a general 
stringency in the money market, causing a fall of prices, 
injury to credit, and the proatratiou of trade. The ret|iiii 
of peace, which should have gladdened all hearts, brin^g 
with it prosperity and happiness, brought sadness and sor- 
row to thousands. Yast numbers of persons were tiirown 
ont of employment; the laboring classes became tnmulto- 
ous, and the Government, daring a time of profound peace, 
achieved by the patriotism and valor of these same classes, 
suspended the Habeas Ck>rpus Act, in order to drown their 
cries and sti^e their complaints. 

Lord Liverpool told Uie agriculturists, who memorialized 
him on the subject of their difficulties, that ' over-produo- 
tion was the eanse of the low prices of agricnltoral produce,' 
and this at a time, when the Government was encouraging 
emigration, because there were too many mouths to feed ; 
and he told the manufacturers of Manchester and Birming- 
ham, who waited upon him with respect to their distresses, 
that they ' made too many goods ; ' ' they had overstocked 
the markets of the world.' The consmnption of cotton at 
the time being about one-eighth of what it now ip, and the 
make of iron and of Birmingham goods being not far from 
the same proportion. 

Govcmment, however, became alarmed ; and extended 
the time for returning to specie payments to the year 1819, 
which caused a rerivid of confidence, indicating, as it was 



snppoeed to do, the intention of the Gk>veniiaeiit to porsne 
a lenient policy in regard to the bank j consequently new 
life was given to the people, but only for s time, for the 
bank, in preparing for reeumption in 1819, soon obliterated 
all ^gns of amendment, and tho depression continued. 

In this dilemma it called upon the Government for re- 
lief, and the call was too significant to be disregarded. Lord 
Castlereagh brought Into Parliament five money bills in one 
night, one of them permitting the circnlation of one-pound 
notes ten years longer, viz., from 1823 to 1833, and all of 
t&em designed to increase money facilities, passing them 
throngh as rapidly as the forms of Parliament would permit 

The effect of these measures was great and immediate. 
Confidence revived, labor everywhere found full employ- 
ment, and ere long there was not a cottage in the laud 
where the benign iufinence of an increased medium of ex- 
change between labor aud capital was not felt" 

Looking back to past years and learning from experience 
the cause of the present depression in business, must be 
plain to any observant mind. It is primarily the damage 
to confidence in men and things, and to decreased ability to 
purchase on the part of dealers and consumers, occasioned 
by the panic, caused by a monetary system, still in full 
action, that deceives and cheats the commnnitf ; lifting it 
up at one time to dash it down at another, as has been al- 
ready stated ; bribing the people to enter into bosinees and 
to undertake hazardous enterprises, and after alluring them 
on, removing the prop, which should sustain them, aud 
leaving them to their fate. PErEa Cooper. 

A Bbief Hibtobt of the Ftnakoial Pouot of the Ameki- 


FEOM 1862 TO 1879. 

1. In 1861 a great civil war broke out in the country, \n- 
yolving the integrity of the Union. 

2. In 1862 began the Legal Tender Act, which was 



framed to supply the measB, men and money to soBtain the 

A loan of two hundred millions was effected with the 
State banks ; but when they found, that their notes were to 
be deposited in the "Sub-Treasury," cmd not left with the 
hanksy subject to check, and that they migJU be called to re- 
deem their notes in own, they threw up moat of the loan, 
and offered their irredeemable notes to the Govenunent, as 
money. (See Spaulding'a "History of the Legal Tender- 

3. Secretaiy Chase preferred "^ credit of the Govern- 
ment, cut «p into smaUjneces, mid oirculaied as inoney," 

4. Then began the Legal Tender Acts, which put into the 
circulation, in the course of eight years, about $2,800,000,000 
in different forms of legal tenders, of which $430,000,000, 
was in the form of greenbacks. Every one of these Acts 
was accompanied with a Fundvng Section, which provided 
for the withdrawal of the legal tenders from circulation, 
and the funding of them into "long bonds," mostly six per 
cent, interest^ payable in coin, and in live or in forty years 
at the option of the Government. (See Spaolding.) 

5. These Legal Tenders passed into the circulation, as 
money, and in the course of ten years — from 1862 to 1873 — 
were gradually absorbed in the " long bonds ; " — withdrawn 
from the circulation, because the capitalists preferred the 
credit of the Government, thus extended to them at six per 
cent, in coin, to any private investment of their money in 
the labor and enterprise of the country at large. 

This was largely due to Jbreign capitalisis, who were 
eager to invest their surplus capital in the Government, ai a 
gold valiuttion of the legal tender, which had then sunk to 
forty and fifty cents on the dollar in gold — and still, further, 
were payable in " utore orders " on foreign goods. 

6. The capitalists overdid the " absorbing process," hav- 
ing reduced the legal tenders to a legal currency of about 
§350,000,000 and brought on the "panic of 1873." 

7. Meanwhile, by the Bank Acts of 1863-64, the national 



banks kid their plans of taming the bonds into bank cur- 
rency without Burrendermg the honda. The Grovernment 
made the bank circnlation aa good as greenbaokSi and redeem- 

8. But the greenbacks must be brought tinder the dom- 
ination of gold— not merely to an equal value, and made 
convertible into gold over the business counter, but- redeem- 
(Me hj the full stress of the law. The whole responsibility 
of redeeming both the national bank currency and the 
greenbacks, is thus thrown on the Government, which can 
do this in no other way, if the notes are not convert^>le m an 
open market, than hy issuing more coin, bonds. 

9. Id pursuance of this policy of the gold capitalists, the 
Government was induced to pass the "Act to strengthen the 
Public Credit" (with the European capitalists) in 1870, 
making the whole public debt payable in coin; then, soon 
after, swrr^iiiouely demonetizing silver, by stopping the 
coining of the silver dollar, and thus making gold the aolo 
ie^al tender for the paper. But this monstrous legislation 
was repealed, when the dbje<^ became too apparent. 

10. Finally, the Act of 1875 made it compulsory on the 
Treasury of the United States to resume specie payments on 
January 1, 1879. This was the cnimination of the gold and 
coin domination. 




Fboh my earliest manhood I ever thoaght, that a f^qoi 
Grovernment should encourage and protect its subjects 
as parents do theii' children. Inventors and maunfactarei'B, 
ia a new country, have to train themselves and then teach 
and educate their workmen and women, before they can 
ancceed in turning raw materials into articles, which can 
compare with those of older coontries. Moreover, work- 
shops and factories should start and grow in order to de- 
velop home markets, so that the tiller of the soil and 
mechanic can benefit each other. The mason, carpenter, 
blacksmith, et«., are as indispensable to the farmer, as the 
farmer is to them. They create markets for each other's 
products, and become mutual consumers. 

As early as 1846, 1 wrote the following letter to Hon. 
Robert J. Walker, political economist and free-trader, and 
since that date I have devoted much thought and time to 
Finance and Tariff, as may be noticed from what precedes 
and follows : 

The Tabipf Bill. 

Kew Tobk, June IS, 184S. 
To THE Hon. Eobebt J. Walkkb, 

Secretary of the Treasury. 
Sm : On the 6th of September last, I received from the 
Hon. C. W. Lawrence, Collector of the Port of New Tork, 
a letter, enclosing from your honorable self certain inter- 
rogatories, and requesting any information, which I might 


316 TAKIFP. 

be able to afford the Grovernment in relation to my particu- 
lar branch of basinese. My works were at that time juBt 
OD the point of starting, and of coni«e, I could not furnish 
any statistics, which would have been of a reliable nature. 
I thought it better, therefore, not to communicate with yon, 
although I had for many years been led to look closely into 
our monetary and commercial regulations, and to arrive at 
certain definite conclusious in regard to the true commer- 
cial policy of our Government. At the earnest solicitation, 
however, of many persons, to whom my views were known, 
and who believe, that the present moment demands a pub- 
lic expression of opinion on the part of those, whose busi- 
ncBS bos led them to pay especial attention to these matters, 
I am induced to request your attention to the following out- 
line of the true principles, which, in my humble opinion, 
should guide the action of the G-ovemment in the present 
position of our commercial relations. 

The true policy of every Government looks to national 
wealth and independence ; in other words, the aeenrity of 
the rewards of honest industiy to individual enterprise, and 
the production within its own limits, as far as practicable, 
of whatever is necessary for the support and happiness of 
its constituent members. The earth is the sole source of 
wealth — 1st, by the mineral treasures, contained within its 
bosom; 2d, by the vegetable productions, which it fur- 
nishes upon its surface. To obtain either, two things are 
necessary — physical labor and human ingenuity; and to 
apply these two agents most perfectly and enccessfnlly, 
mankind most not endeavor to labor in both fields ; but 
one portion most devote itself to agi*icultural pursuits, 
while the other must be employed in developing and giving 
a useful form to the crude masses, in which Nature has 
seen fit to place her treasures. The value of a day's labor 
will be that amount, which furnishes a comfortable snb- 
sietence to the laborer and his family, and enables him to 
lay by sufficient to meet the wants of sickness and old age; 
and the natural standard of value will be some article, 


TAEIFF. 317 

whoBe bulk is small in comparisOQ with the cost of prodnc- 
ing it, and which, for a long period of time, is least snbject 
to wear and variation. Just in proportion, then, as a nation 
BO distributes its Ial)or, that there is a mutual dependence 
between its meinbeni, and the results of its industry are 60 
varied, as to meet the wants of the whole community, and 
its standard of valne is uniform, just in that proportion 
does it approximate to the perfection of political organiza- 
tion ; just in proportion, on the other baud, as it confines 
itself to one particular channel of industry, and is depend- 
- ent on foreign nations for everytliing else, and its standard 
of valne is ever wavering and uncertain, in that same pro- 
portion is it ill-governed and certain to entail ruin and 
misery upon its members. The .practical bearing of these 
cardinal principles, obvious enough in themselves, will per- 
haps be shown in a more striking and forcible light by a 
practical illustration, in itself an argument, and leading to 
certain conclnsions, which I cannot help thinking, will 
leave no doubt as to the course of policy, which the Gov- 
ernment of the United States should pursue in the present 
crisis, as its action at this time must determine the destinies 
of the country, for good or for evil, for many years to come, 
Let US suppose two separate and independent Govern- 
ments to exist in the same country, separated from each 
other only by a narrow stream ; possessing the same natural 
advantages, the same energy of character, and adopting as 
the measure of the value of property, one uniform cuneuey. 
For the sake of convenience let ns distinguish these Govern- 
ments as the upper and lower. After many years of uni- 
form progress, during which time tlieir only circulating 
medium was composed of gold and silver, or for the sale 
of transportation, of certificates of the actual possession o^ 
gold and silver, let us suppose, that the upper Government 
fancied that its condition could be bettered by pouring 
paper money, not representing the actual possession of 
gold and silver, into tlie volume of its circulating medium. 
The effect is obvious, and is set forth in the language of 


318 TAEIPP. 

Washington, when he declarea, " That in exact proportion 
as you pour paper money into the volume of circulating 
mediDm, in that proportion will every thing in a conntry 
rise in price." A bushel of com, although it will feed no 
more; a day'a labor, although it will produce no more, 
will be increased in price. Is it not clear, then, that 
the lower Qovemment, adhering to its old, unadulterated 
standard of value, will continue to produce the buBhel of 
com at the old cost, carry it across the river and sell it for 
the advanced price! And so long as the old or njiper Gov- 
ernment contiiinee to redeem its bills with silver or gold, 
just so long will the lower Government continue to send 
over the river every article, that it can possibly spare, and 
will find it to its interest to take nothing in retnm but sil- 
ver and gold, as everything else it can obtain at home at a 
cheaper rate. This traffic will continue, until the upper 
'Government finds, that the operation of its internal trade 
becomes so embarrassed by the absohite want of silver 
and gold, that some remedy must be devised. It must stop 
this coDtinnal drain of specie, and therefore it attempts to 
fence out its neighbors by a tariff of heavy duties, the im- 
mediate operation of which is, if paper money is allowed to 
increase, to add the amount of the duty to the previous 
price of every imported article then in tlie country ; and 
this advance in price would straightway be seized upon, by 
those immediately interested, for pouring another issue of 
paper money into the volume of circulation. The imme- 
diate effect of this increase of paper money would be an 
advance in price ; importations would again commence, the 
tariff must again be raised, and high prices and high tariffs 
would go hand in hand, until by such a course of policy 
expensive, idle aud luxurious liabits would be diffnsed 
among the people to such an extent, that in accordance with 
the immutable laws of trade, where there is consumption 
without production, they would become involved in one 
general ruin, opening wide the chances for a few to amass 
huge fortunes, that they had never earned, out of the gen- 


TABIFF. 319 

eral wreck of the many. An attentive comMeration of 
these principlee will lead to three nalnral conclnBions : — 

First, That it is Uie duty of every Government to secnre 
to itself the most nnifonn and intrinsically yalnable Btand* 
aid of valoe possible ; a standard, which the experience of 
all time has proved to be gold and silver ; in other words, 
that the circulating medium of a country ehonld be com- 
posed of gold and eilver coins, or paper representative of 
the actual existence of gold and silver, dollar for dollar, 
■or representative of property, the actual accumulation of 
lahor done. 

Second, That a tariff, based npon a cnrrency, which is 
nncertaiQ and fluctuating in its nature, will in itself be Qt- 
terly inefficient to prodnce the effects for which it was de- 
signed, and will be but the ffi-st act in the great drama of 
expansion, convnlsion and general bankniptey. 

Third, That between countries, starting in the race of 
political existence at the same time, witli tlie same energy 
and the same natural advantages, and adopting one nniform 
standard of valne, no tariff of protective duties would be 
neccsBary or ought to be adopted. 

How then does the past policy of our country square with 
Uie principles, stated in these three concluBione ? — And first 
as to its standard of valne. From the earliest history of 
this country, as an independent Government, instead of con- 
fining onr currency to gold and silver and to paper repre- 
aentaiive of Idhor actually perform^, as has been mainly 
the policy fen* niany years of those conntries, from which 
we import most, we have allowed paper to be issued, which 
has its value founded — not upon the accumulations of hon- 
est indnetry — but npon the confiding faith of an nnsuspect- 
ing public, and the desire of many men to do business 
beyond their means. 

The result has already been shown ; and while at first all 
were ready to admit, that a protective tariff was necessary 
to develop these mineral treasures, that Nature has show- 
ered npon us in such abundance, and to mingle with the 


music of her waterfalls the bney bum of machinerr, and 
to afford a ready, convenient and certain market for onr 
agricultnral produce ; men, finding that the tariff did not 
produce the effects aDticipated, have been induced to at- 
tribute its failnre to its own inherent weakiieee, rather than 
the trne cause, namely, an ever expanding and contracting 
currency. We have already seen, that a tariff, founded on 
Buch a baetB, must from the nature of things be inefficient, 
deceptive and futile. 

But does it hence follow, that a protective tariff is not 
necessary for this country to induce the manufacture of 
tbose articles, the raw material for which is found here in 
as great perfection, and can be wrought into useful and 
necessary articles, with as little expense of human labor as 
in any other country in the world ? In our original paral- 
lel we started the two Governments in the race of political 
existence at the same time, and hence we reached the third 
conclusion above stated ; but in order to understand the 
true 'position of this country in regard to other producing 
countries, wo must vary the parallel in this wise. We must 
suppose the upper Government had been in existence for a 
thousand yeai-s, continually advancing in science, knowl- 
edge of the arts, the development of its intenial resources, 
the experience of its producing classes and in population, 
till at length a large nnmber of its inhabitants concluded 
to emigrate into a new land, poeaessing advantages and re- 
Bonrces superior even to those of the mother country, but 
wliich required industry, ingenuity, capital and time to de- 
velop. Tho raw material, from the fertility and adaptation 
of the soil, tliey could produce, with much greater facility 
than the mother country ; but from the unfortunate adop- 
tion of a paper currency, the want of capital to start a 
manufacturing system successfully, and the great demand 
for labor consequent upon a new settlement, the cost of 
producing the finished article would be considerably greater 
tlian in the mother country, even with the difference of 
freight in their favor. 


TARIFF. 321 

The result is, that to the extent, 'which the mother coun- 
try absolutely requires the natural produce of its ofifspring, 
the latter will be supplied with the manufactured article. 
Any surplus of agricidtural produce, which they may have 
beyond that limit, will first tend to lower the price of the 
whole raw material of the country, and must finally he left 
to decay. 

What, then, are the remedies, that should be applied I 
In tiie first place, the standard of currency must be at least 
as valuable and uniform as in the mother country. It will 
then, and not till then, l>ecoine apparent what amount of 
tariff must be imposed to offer a sufficient bounty to capi- 
talists to invest their property in manufacturing establish- 
ments. It is plain, that tlie amount of bounty required 
would be just enough to counterbalance the advantages, 
which the mother country possessea, in having had her 
roaiiu factoring system in operation for a Beriea of years. 
With oar currency, regulated in this way, and with the nat- 
ural and political advantages, which we possees, freed as 
we are from standing armies and the load of taxation, which 
weighs the nations of Europe down to the earth, our coun- 
tiymen would be astonished at the small amount of uniform 
bonnty, which wonld be required to open a thousand chan- 
nels of domestic industry, and afford a home market for 
almost every article of domestic growth. And the compe- 
tition, whiuh would be the necessary result of an extended 
manufacturing system, would soon bring the article to the 
lowest price, at which it could be afforded. 

In this country millions are already invested, and thon- 
eands of operatives are usefully and snccessfnlly employed 
in the various manufacturing pnrenite. By well directed 
efforts of capital and skill, the country has been fumiRbed 
with almost every species of manufactured articles of l)et- 
ter quality and mainly at cheaper rates, than has ever be- 
fore been the case on the average of any ten previous years ; 
and our fanners have had a sure and steady market at home 
for every variety of agricultural produce to the exteut of 


the wants of all the persons, em-p\ayed in maDnfactnring 
parsuits. Will it stimulate the industry of our coantiy, or 
secure the rewards of labor to the hauds, that earn them, 
by adopting such a ooni-se of legislation, as will sacrifice 
tiiese millions, and tnm these thousands out of employ- 
ment! Certainly not; for in exact proportion as men are 
made sure in the rewards of honest and useful labor, they 
become prosperous, virtaous and happy ; and in tho same 
proportion aa men are deceived and deprived of their just 
rewards, they become discouraged, vicious and desperate. 
A course of policy, that will give the greatest stability to 
the operations of trade, and excite the fewest hpprchen- 
eioiis of coming distress and pressure, will best promote the 
, Bubetautial interests of the country. I would, therefore, 
Teutnre to suggest the only means, that seem practicable to 
effect this object. 

First — I would recommend the immediate adoption of 
the Sub-Treasury, and that its action upon the currency 
should be made gradual, by the collection of twenty per 
cent, of tlie revenue in specie every year, nntil' the whole 
amount should be collected in gold and silver. 

Secondly — I would recommend, tliat the changes in the 
tariff should also be made, to take effect gradually, and that 
the dnties should be of a specific nature, and not on the 
ad valorem basis ; because tho latter allows persons devoid 
of honesty to resort to fraud, and break down every mer- 
chant, who may pursue an honorable business; because it 
subjects the revenue to consFant change in amount, just as 
the prices of imported articles rise and fall, the tevenne be- 
ing least, when the Government needs it most. And, finally, 
because, wlien the prices are liigh and the manufacturer 
needs no protection, it affords him protection of the amplest 
kind ; but when prices are low, and the manufacturer must, 
if ever, shield himself under the tariff, but very slight pro- 
tection is afforded. This will be made apparent by refer- 
ring to a list of prices of any one leading article for some 
years back. The price of iron, for example, as shown by 


the boots of Messrs. Jevon, Banlta A Co., of Liverpool, has 
fluctuated from £15 in 1825, to £4 10 in 1843, per ton, and 
within the past eighteen months, from £7 to £11. What 
protection wonld an ad valorem duty have afforded in 1843, 
when the English were eeeking a market at any price f It 
moflt have prodnced the immediate stoppage of every roll- 
ing mill in this conntry. The same facts wonld he shown 
by referring to any other leading article. I wonld suggest, 
therefore, as the proper course, that the Government should 
ascertain as soon as may he practicable, and as accurately 
as possible, what articles are paying a duty injuriooB to the 
beet iDteteete of our country, and that the excess of duties, 
now imposed in a specific form on those articles be gradu- 
ally reduced, say twenty per cent per annum, until the whole 
amount, collected by the operation of the tariff, be barely 
sufficient to meet the wants of an economical administra- 
tion of the Government. We should thus gradually arrive 
at a tariff, based upon a revenue standard, and at the same 
time afford protection to the manufacturer in- such a way, 
that he could be ready for each change in the tariff, until 
it reaches the revenue basis. i 

Thirdly — The Sub-Treasury should be made to take 
effect at least one year, before any change of the tariff 
should go into operation, in order to give it time to bring 
the currency under its influence, and prevent the banks and 
enemies of the present adminietration from producing a 
panic, by operating on the fears and affecting the interests 
of the community to such an extent, that it might result in 
a change of administration, and bring again into power 
those, whose favorite idols are a national bank, a high tariff, 
and Inflated currency, with all their terrific power for mis- 
chief, " fertilizing the rich man's field with the sweat of the 
poor mau's brow." 

I should hardly have ventured to obtrude my views on 
these subjects upon your attention, although they are the 
results of the experience of more than forty years, inces- 
santly devoted to mechanical and mercantile pursuits, were 


324 TARIFF. 

I not deeply impressed with the conviction, that the mas- 
terly policy, sketched out by the Government of (rreat 
Britain, will render the action of the present Congress, 
upon the great qnestions of the currency and the tariff, 
more deeply fraught with good or evil to the best interests 
of the country, than at any period within my recollection. 

In all the changes, which the msdom of oar Congress 
shall see lit to adopt, the pi-oposed changes in the commercial 
[wlicy of Great Britain should be kept strictly in view. That 
Government finds, that hy reason of past restraints on its 
own commerce, it has eaten its bread for thirty years at $9 
per barrel, and that by a radical change of ita o^ policy 
the price may be reduced to $6 per barrel, thereby widen- 
ing its own market, already nearly co-extensive with the 
world, and becoming in our own market a more formidable 
competitor, in the same proportion as its bread is made 
cheaper. "Will it answer then for this Government, at this 
moment, to aid tiie already .overgrown capital of Great 
Britain, to break down the manufactures of our country, 
that are just struggling into existence, and force these op- 
eratives, at present engaged in manufactures, into competi- 
tion with Uie agricultural producers, inetead of being the 
consumers of the results of the labor of the latter ! 

No one more ardently desires a free and unrestricted in- 
terchange of commodities between the two countries than 
myself, and no one more firmly and hopefully believes, 
that the day will come, when the ports of both nations will 
be thrown wide open to every flag, tiiat waves upon the 
ocean — a consummation, which the recent auspicious action 
of the Senate on the Oregon question is well calculated to 
forward ; bnt in endeavoring to effect this desirable object, 
we should not blindly and hastily uproot the very system, 
which we have for years been endeavoring to encourage ; 
but the change should be made gradual, so as to allow time 
for the full development of oui- internal resources, the ap- 
plication' of our water powers to the purposes, for which 
Nature prepared them, the acquirement of the requisite 


ekill and the investment of the necessary capital to carry 
on onr manufactareB successfully. Uur fellow citizeiia 
would then feel certain of a permanent system, and a sure 
guarantee, that the just rewards of ingenuity and ekill 
would be secured to individual enterprise ; and the good 
and great of every land, who have their eyes fixed upon thia 
country, as the precursor and hai-biuger of a better human- 
ity throughout the world, would be cheered and encouraged 
with the conviction, that after seventy years of independ- 
ence, both the people of the United States and their Eepre- 
ecntatives are still looking to the ouly objects, wortliy of a 
liberal Government — tlie beet interests of all classes in our 
common conntr}', and the onward progreaa of free prin- 

I have the honor to be, 
Very respectfully, 

Your obedient servant, 

Feteb Coofbs. 

Letteb to Hos. H. J. Bedfibld. 

New Tokk, JantiMT 17, 1868. 

Sir: Your letter, dated December 24, 1867, addi-essed 
to me, in the Batavia Spirit of the Tirnea, and republished 
in the Evening Post of the 6th instant, has, within the past 
few days, been called to my attention, and 1 now take the 
earliest opportunity of replying to it 

I am pleased to receive the views of an old and respected 
citizen on the subjects on which it treats ; and, although wo 
have arrived at different conclusions on these subjects, yet 
the discussion of them in a frank and kindly manner can- 
not be otherwise than nsefol. 

For myself, I am indeed conscious, as yon remind me, 
that I am an old man, liable to error and frailty, as we all 
are, but yet I trust, not bo warped either by my prejudices 
or my interest as to be incapable of the honest investiga- 
tion of argnments, presented for my consideration, even 


though in opposition to long cherished convictioDS. And 
I will as frankly say, my dear Sir, that the record of your 
long and nsefnl life gives assaraace, that no nnworthy in- 
fluence will be permitted by yon to sway year judgment or 
influence your conduct in this matter. 

I have at the outset to complain of the manner of yonr 
reference to the tariff legislation of the country, as calcu- 
lated' to convey very incorrect impresaions upon that sub- 
ject, and mislead those, who are uninformed respecting it 

The inference, naturally to be drawn from your letter, 
would be, that the effort to stimulate domestic manufac- 
tures, which yon illustrate by the figure of the people car- 
rying an infant in their arms, was something strange and 
exceptional in the policy of civilized nations, and contrary 
to the genius of American institutions. Ton forgot, that 
the system of protection to home labor, which yon so 
earnestly condemn, is to-day acted on by every civilized 
nation on the Earth, and has the sanction of the states- 
men and nilere, not only in Europe, but our own country, 
whose wisdom mankind has acknowledged and universally 
respects. The principles, Sir, which yon denonnce with 
such severity, have been lield from the beginning by the 
founders and great political teachers of the nation, men 
whom we are accustomed to honor, and whose opinions 
have just weight with ns on other subjects. Among these 
I might name Franklin, Jefferson, Madison, Jackson and 
many others, whose recorded words defend and maintain 
the doctrine you decry. Of these I shall only quote the 
words of Jackson, whose advpcacy of the principles of pro- 
tectitm yon seem to doubt. 


In writing to Dr. CJoleman, in 1824, Andrew Jackson 
thus fully and uneC|uivocally expressed himself on the tariff 
question : 

" You ask my opinion on the tariff. I answer, that I am 


TARIFF. 327 

in favor of ajvdieious examination and revision ofit; 
and BO far aB the tariff bill before us embraces the design 
of fostering and protecting, preserving within ourselves the 
means of national defence and independence, particnlarly 
in a state of war, I wonld advocate and snpport it. The 
experience of the late war ought to teach ns a lesson, and 
one never to be forgotten. If onr liberty and Republican 
form of government, procured for us by our Revolutionary 
Fathers, are worth the blood and treasure, at which they 
were obtained, it is sttrely onr duty to protect and defend 
them. Thistarifi — Imean a jadicioos one — possesses more 
fanciful than real danger. I will ask; What is the real 
situation of the agriculturist 1 Where has the American 
farmer a market for his surplus products? Except for 
cotton, he has neither a foreign nor a home market Does 
not this clearly prove, when there is no market either at 
home or abroad, that there is too much labor employed in 
agriculture, and that the channels for labor should be mul- 
tiplied! Common sense points out the remedy. Draw 
from agriculture the superabundant labor; employ it in 
mechanism and manufactures; thereby creating a home 
market for your breadstaffs and distributing labor to the 
most profitable account and benefit to the country. Take 
from agricnlture in the United States six hundred thousand 
men, women and children, and yon will at once give a 
home market for more breadstufFs, than all Europe now fur- 
nishes us. In short, Sir, we have been too long subject to 
the policy of British merchants. It is time, that we should 
become a little more Americanized, and instead of feeding 
the paupers and laborere of England, feed our own, or else, 
in a short time, by continuing onr present policy, we should 
be rendered paupers ourselves." 

And in his second annual message to Congress, Decem- 
ber 7, 1830, he closes an argument in favor of the Consti- 
tutional riglit to adjust the custom duties, as to encourage 
domestic induBtry with these words ; 

" In this conclnsion I am confirmed as well by the opin- 



ioDS of Presidents Washington, Jefferson, Madison, and 
Monroe, who have each repeatedly recoimnended the exer- 
cise of this right under the Constitution, as by the uniform 
piacitico of Congi'esB, the continual acquiescence of the 
States, and tlie general undei-standing of the people." 

But, not only has this principle of protection to domestic 
indnstry been advocated by the most illustnonG of oar 
American statesmen, but it has been received and acted on 
by every civilized nation on the Earth. It has been the 
steady policy of France since the days of Colbert, enforced 
more strongly and conaietently by the tirat Napoleon, and 
(notwithstanding all tliat has been said about the "French 
treaty ") steadily maintained by the pi-esent Emperor. In 
England for five centuries the policy has prevailed since 
the days of Edward the Third, and if twenty-five years ago 
she tlioiiglit it practicable to relax the restrictions she had 
placed upon tlie importation of foreign manufactures, she 
is now aware of the mistake, and awaking to a sense of the 
fatal danger she incurred, and already her discontented 
operatives are demanding the restoration of protection 
against the cheaper labor of their continental rivals, and 
her farmers are claiming a prohibitory duty on foreign 
cattle, imported into the country. In Kussia, that land so 
like our own in the magnitude of its undeveloped resources, 
the wisdom and necessity of fostering domestic production 
is understood and acted ou. And in the history of the 
German Zolverein for the past five and thirty years is found 
at once the evidence and illustration of the wisdom of pro- 
tection to home industry among a people, where all prop- 
erty is measured by a uniform standard. 


You give. Sir, in a condensed form, what you design as 
a history of the tariff legislation of the United States for 
the last fifty years. I do not regard it either as accurate 
or specific, as such a statement would need be for any safe 


purpoee of argnment, aod as I think, that exact information 
on thia Bubjecjt ia of great importance, I take the liberty of 
quoting a paseago fi-om a letter of Mr. Henry C. Carey, 
which is valuable for the historical evidence it affords, that 
Governmental interference, on behalf of maniifactai-es, has 
always produced general national prosperity, and tliat the 
withdrawal of that interference has as invariably reaalted 
in industrial disti'eBB and commoroial disaster : 

"Fifty years since, the second war with Great- Britain 
came to a close, leaving our people well provided with mills 
and furnaces, all of which were actively engaged in making 
demand for labor and for raw materials of every kind. 
Honey was then abundant, and the public debt was trivial 
in amounL 

Two years later we entered upon the British Jree trade 
system, and at once all was changed. Mills and furnaces 
were closed ; labor ceased to be in demand ; and our poor- 
honsea were everywhere Ulled. Money becoming Bcai-ce 
and interest high, land declined to a third of its previous 
price. Banks stopped payment The sheriff everywhere 
found full demand for all his time, and mortgagees entered 
everywhere into possession.* The rich were made richer, 
but the farmer and meclianic, and all but the very lich, 
were ruined. Trivial as wei-e then the expenses of the 
Government^ tlie Treasury could not meet them. Such was 
the state of things, that induced General Jackson to ask 
the question, * Where has the American fanner a market 
for his surplus produced' 

To the state of things here described were we, in 1S2S, 
indebted for the fii-st thoroughly national tariff. Almost 
from the moment of its passage, activity and life took the 
place of the palsy, that previously existed. Furnaces and 
mills were built ; labor came into demand ; immigration 
increased, and so lat^ became, the demand, for the products 
of the farm, that our markets scarcely felt the effect of 
changes in that of England ; the public revenues so rapidly 
increased, that it became necessary to exempt from duty 


330 TABIFF. 

tea, coffee, and many other articles ; and the public debt 
was finally exdngaished. 

The history of the world to that honr presents no case 
of prosperity po nniveraal ae that, which here existed at 
the date of the repeal of the great .national tariff of 1S28. 
Had it been maintained in existence, we shonld have bad 
no secession war, and at this hour the South woold exhibit 
a state of society, in which the land owners had become rich, 
while their slaves had been gradually becoming free, with 
profit to themselves, to their owneis and the nation at 
large. It was, however, repealed in 1833, and the repeal 
was followed by a snccesaion of British free-trade crises, 
the whole ending in 1842 in a state of things directly the 
reverse of that above described. Mills and furnaces were 
closed ; mechanics were starving ; money was scarce and 
dear; land had fallen to half its previous prices; tli^ 
sheriff was everjnvbere at work ; banks were in a state of 
suspension ; states repudiated payment of their debts ; the 
Treasury was enable to borrow a dollar, except at a high 
rate of interest: and bankruptcy among merchants and 
traders was so universal, that Congress found itself com- 
pelled to pass a bankrupt act. 

Again, and for the third time, protection was restored 
by the passage of the Tariff Act of 1843, Under it, in lees 
. than five years, the production of iron rose from two hun- 
dred and twenty thousand tons to eight hundred thousand 
tons ; and so universal was the prosperity that, large as was 
the increase, it was wholly insQfficieut to meet the great 
demand. Mines were everywhere being sunk. Labor was 
in great demand, and wages were high, as a consequence 
of which immigration speedily trebled in its amount 
Money was abundant and cheap, and the sheriff found but 
little to do. Public and private revenues were great be- 
yond all previous precedents, and tliroughout the land there 
reigned a prosperity more universal than liad, in the whole 
history of the worid, ever before been known. 

Once more, in 1846, however, did the Serpent— prop- 


TABIPP, 831 

eriy represented on thlB occaaion by British free-traders — 
make hia way ioto Paradise, and now a dozen years elapsed, 
in the conrse of which, notwithstanding the discovery of 
California mines money commanded a rate of interest 
higher, as 1 belieTO, than had ever been known in the conn- 
try for so long a period of time. British iron and cloth 
came in and gold went out, and with each successive day 
the dependence of onr farmers on foreign markets became 
more complete. With 1857 came the culmination of the 
system, raerchante and manufacturers being mined, banks 
being compelled to suspend payment, and the Treasury 
being reduced to a condition of bankruptcy, nearly ap- 
preaching that, which had existed at the close of the free- 
trade periods, commencing in 1817 and 1834. In the three 
years that followed, labor was everywhere in oxcees ; wages 
were low ; immigration fell below the point, at which it 
had stood twenty years before ; the home market for food 
diminished, and the foreign one proved so utterly worth- 
Ices, that the whole export to all the manufacturing nations 
of Europe, as I have already stated, amounted to bnt little 
more than $10,000,000," 

The losses, brought on onr country by a failure on the 
part of the Government to steadily protect the great indns- 
tries of the nation, ever strikingly manifest by the loss to 
the whole country of a steam marine, which was won for 
us by men, who deserved a better fate than they received. 
It was for the want of a few paltry millions to protect a 
steam marine, so nobly won and of such inestimable value 
to our country — it was because of the failure of our Govern* 
ment to protect its " child " — that England was permitted, 
by her protective policy to her own steamships (at but a 
small cost) to distance us in a race for supremacy in ocean 
steam navigation, and take from us a steam marine, that 
would have been worth thousands of millions to our conn- 
try, and would possibly have saved as from the terrible war 
through which we have passed. 



Yon refer, Sir, with Bome BarcaEiu, to the " infant mann- 
fautures," which you tlunk have been bo long carried in the 
artua of the people, to their wrong and cost, as jou suppose, 
and assoine the superiority of European proditctivenGse, 
and suggest, that onr iucapauity to mauafacturo beiug tbua 
established, we eliould abandon our effort at deliverance 
from our industrial bondage to the Old World. To this, Sir, 
1 reply that while, as I have stated, the countries of West- 
em Europe have for centuries enjoyed constant, persistent 
and adequate protection, never relaxed, never abated, until 
it was rendered unnecessary by the natural growth o£ tbeir 
"infant," our manufacturing system has not had either 
constant or adequate protectiou for more than four years 
at a time, and that only twice before the Kebellion. The 
compromise tarifF of 1833, being avowedly designed as a 
measure, calculated and intended to lead toward free-trade, 
as the writer can personally testify from his couvcrsationa 
had with Mr. Calhoun at the time. 

You speak of the " larcenous provisions " of tariff acta to 
which you allude, as though a great wrong had been in- 
flicted on tlie masses of the people for the benetit of the 
" class " of manufacturers. You forget or you ignore the 
fact, that the time, whea these manufacturers thus pros- 
pered, labor was in demand and wages high, immigration 
increased, farm pi-oducts found a large and profitable home 
market, the revenue was abundant, merchants and farmeis 
were alike successful, and general prosperity prevailed. 
You forget or you ignore the fact, that in stimulating do- 
mestic manufactures we but increase tlie demand for agri- 
cultural produce, and bring to the farmer's door a market 
more certain and more proHtable, than be can possibly find 

You speak of twenty-five years (!) of " high protection," 
as though the manufacturers of the country alone were in- 
terested, putting aside entirely the consideration of the fact, 


tbftt all tlie taxation, needed for the nation's wants, was 
enpplied from thia Bonrce; that thus the visits of the tax- 
gatherer to the farmer were entirely dispensed with, and 
moet articles in general consumption among our people, 
' SQoh as tea and coffee, were rendered exempt from duty, 


Ton indiet the mannfacturcre of the United States for 
their eelfiehnesB and want of patriotism, in secoring the enact- 
ment of protective laws, and contrast with it the conrse, which 
yon allege to have been pnrened by the farmers. Sir, I do not 
care to enter on the nngraciona task of comparing one class 
of my fellow-citizens with another, the more so, as during 
the late fearful trial, through which our country has passed, 
the magnanimons and self-sacrificing patriotism of them 
both has been so conspicuonsly vindicated ; but, as one of 
those implicated in the chaise yoa make, I may, perhaps, 
be permitted to state one fact from my own personal expe- 
rience as a manufacturer, calculated to show, that, if we 
had been grasping, as you represent, our object of making 
large gains has, at least, not been accomplished. During 
a period of over thirty years, engaged in the manufacture 
of iron, the capital invested by me has not on the average 
yielded me four per cent, per annum, and this with all the 
skill, energy and perseverance, which I was able to com- 
mand in promoting its profitable employment; and that 
my own case was not exceptional may be gathered from the 
fact, that during the same period nearly, if not quite all my 
brother manufacturei'S, who were engaged largely in the 
same industry, were compelled to succumb to the pres- 
sure of adverse circumstances, caused by the fluctuating 
policy of the general Government, and to pass into bank- 

8nch has been the experience, through which the men of 
enterprise, genius and capital have passed, who were in- 
duced to volunteer at the time of the country's greatest need 


as pioneers in the great work of eBtablishing our manu&c- 
tnriQg independeiitie, and at the sacrifice, in most cases, of 
their own fortunes, laid the foundation of that noble fabric 
of indiiBtrial independence, which wo rejoice to see now 
rising solid and Bjmmetrical in this great land. 


That the farmers sought, and rightfully sought, protec* 
tion, when tlieir interests demanded it, the experience of 
the sugar-planters of the South and the wool-growei's of the 
North abundantly testitieB ; and I must confess iny enrprise 
at the representation you make of the i-ecent legislation in 
favor of the growers of wool. Yon say, " it is believed by 
many, that the wool-grower is at length, under recent acts 
of Congress, equally protected with the manufacturer. It 
may be so. The stable door may be locked after the horse 
is stolen. But in the meantime the manufacturer has been 
made rich — has doubled and quadrupled his capital, while 
the wool-grower has grown poor, and in many cases lost his 

You remember, 8ir, that at the close of the last session 
of Congress, after a bill, designed to amend the present 
tariff law, had been rejected in the Senate, chiefly through 
the influence of the Western States, a wool tariff was sud- 
denly enacted, having for its special object the interest of 
the wool-growers of the country. For this tariff, I rejoice 
to know, the true friends of domestic industry in Congress, 
with a noble consistency, voted, albeit their own plan of 
legislation had but just been defeated by the Kepresentatives 
in the Senate of these very wool-growers. T regret, Sir, that 
you do not appreciate the benefits, thus accorded to this 
branch of agricultural industry — that yon do not, I think, 
is attributable to your failure to examine the facts — for the 
very objection you make, that the recent law has not bene- 
fited wool production, has been thus well answered, in the 
monthly report for December, 1867, at the Department of 


TABIFF. 335 

Agriculture, in wliich, on fliia subject, are the following 
words : 

" The close of the war found fall supplies of woollen 
goods, and immense stores of unused arm; clothing ; and 
in anticipation of legislation, affecting importation nearly 
as many woollens were introduced in a single year as were 
imported during the entire period of the war. In this state 
of facts, utter annihilation of wool-growing and manufac- 
turing was only prevented by the operation of the law in 
repressing further importation, and inspiring confidence in 
the fnture, when the immense surplus shonld be ex- 
hausted. It has produced all the advantages, that its most 
sanguine friends could claim for it, in preventing, in a 
large degree, ruinous depression and the saci'ifice of flocks, 
and in paving the way for entire success for the future, 
which shall benefit every interest of agriculture and every 
brandi of industiy." 


You epeab with Tehement execration of the Morrill tariff 
of 1S61, as " capping the climax in the history of this in- 
iquitous legislation ; " bnt entirely overlook the circnm- 
Btances, nnder which that measure was passed. The free- 
trade tariff of 1857 has just produced the effects, which 
were expected from it by the wisest thinkers in the land, 
and the condition of thingt^, then existing, was well described 
in the following extract from Mr. Carey : " With 1857 came 
the culmination of the system. Merchants and manufac- 
turers became ruined, banks being compelled to suspend 
payment, and the Treasury being reduced to a condition of 
bankruptcy. In the three years that followed, labor was 
everywhere in excess. Wages were low, immigration be- 
low the point, at which it had stood for twenty years be- 
fore, the home market for food diminished, and the foreign 
one proved so utterly worthless, that the whole export to 
all the manufacturing nations of Europe amounted to little 
more than $10,000,000." Such was the condition of things, 


that sn^eBted the necessity of the Morrill tariff, whicli was 
a clian^ in the policy of the conntry, the necessity of •nh.lah 
had been made palpable by the undeniable failures of the 
free-trade policy of 1857. Bnt never was a law bo mis- 
represented aa this has been. Forgive me, Sir, if I express a 
doubt as to yonr having yourself accurate information on the 


To illustrate, I shall compare it in those branches, with 
which I am myself most familiar (connected with'the iron 
industry) with the celebrated Anglo-French treaty, adopted 
s few months previously between the French and English 
Governments, and tlie praises of which have been so widely 
Bung as a glorious triumph of " free-trade principles." It 
was declared to be an abandonment by France of her " pro- 
tective system." 


Prencb dnUn 


nnitoa stun dmj- 

■iDd« the >t«dU 

Iron, pig and old cast iron 

Iron, old broken, wrooglit 










13 6S 
13 68 

26 41 to 
81 28 

8 30 

17 58 

28 83 



IB 54 

26 40 

48 85 



(6 00 

Iron mannfactures ; pipes and 

Iton manaf actures ; small wares . . 

Iron manuf actursB ; cnt nails 

Iron mannfactaresi wroiigM nails 

2B 00 

11 20 
20 00 
22 40 

1 13 

2 24 

Iron manutactnrBS ; tubes of 

44 80 

Iron manuf acturea ; tubes of 
wTonght iron, amall 

Steel in bars of all kinds 

Steel in slieete above Vr of an Inch 

Steel in aheeta under iV of an inch 

Steel toola in pure ftael 

44 80 
l}c. and 3a. 

2a. and 10 ^ 0. 

2} and 15 |} a. 

80 fa 


TARIFF. 837 

Its general character may be learned from the above 
table, exhibiting the duties on English goods, imported into 
France, and the duties levied on the same kind of goods 
under the Morrill tariff. 

From an examination of these figures it will be seen, that 
t£e actual duties on these goods were nearly, if not quite, 
as heavy (oil the average) in the " Free-Trade treaty," as in 
the " iniquitous Morrill tariff," and if the difference be- 
tween the price of labor in France and the United States 
be taken into account, more strictly " protective." And 
this, Sir, is the climax of iniquitons legislation, which you 
regard with such abhorrence ! 


You mistake in snppoeing, that I quoted from the works 
of that worthy and able man, Matthew Oarey. I did not, 
bat I did from his illustrious son, Henry 0. Oarey, who is 
the author of that system of social science, which, rising 
above, ^though never going contrary to, the objects of 
mere economy, seeks to harmonize and advance the social 
and moral, as well as the material interests of mankind ; 
which expounds and maintains the true and harmonious in- 
terests of industry, and seeks by the elevHtion of the indi- 
vidual man to promote the happiness and prosperity of the 
nation. This prophet may not as yet have accorded to him 
in his own country the honor, which is his due, but already 
do the principles of his benign philosophy begin to prevail. 
His works have been translated into six of the Continental 
languages, his teachings are studied by the statesmen and 
savans of Europe, and the people of Rnssia, Germany and 
Hungary, as well as of Italy and France, have to appreciate 
his wisdom. 

Hero the shallow sophisms of the teachers of a foreign 
school, to whom you refer, have gained a temporary popu- 
larity, but the light of truth is now penetrating our schools 
and colleges, as well as our farms and worksliops ; and the 
American mind is being imbued with the necessity of es- 


tabliebiBg a great system of national industrial indepen- 
dence, whatever the " pbiioeophers " of Manchester, or 
Birmingham, or PariB may say. 


I Uphold, on the very ground that you oppose, a proteo 
tive tariff — its bearing on the great body of consnmerB, es- 
pecially the poorer classes, for the reason that nothing can 
be purchased cheap of foreigners, that must be purchased 
at the cost of Uavinff our own labor unemployed and ovr 
own good raw materials unused. 

It is because all experience has demonstrated, that the 
surest and shortest way to cheapen the cost of goods to the 
consumer is to foster their home production, that I am an 
advocate for protection. 

It is becanse good wages are necessary to the comfort, 
the independence and the elevation of the workingman, 
that I protest against bringing his labor into competition 
with that of the workmen of Eui-ope. 

It is because I desire the farmer to have a near, constant 
and profitable market for liis meats, grain, fruit and vege- 
tables, and mannre to refresh his land, that I desire the in- 
dustry of the country to be diversifiecl and the cost of trans- 
portation diminished. 

It is becanse I desire the manufacturer to have flecurity 
in the investment of his capital and the employment of his 
energy in manufacturing enterprise, that I desire a fixed 
and stable tariff policy. 

It is because I desire such a development of the resources 
of the country, as will render labor profitable and capital 
remunerative, and so induce the immigration of men, of 
money and laborers from Europe, that I advocate this great 
national policy. Not becanse I wish the enrichraont or 
elevation of one class at tlie cost of anotlier, but becaQse I 
long for the prosperity of the entire people, whose interest 
in this question of national production is one. 


It is because I desire the political power and the finan- 
cial hoDor of this nation to bo established and vindicated 
before the world, that I seek to joaintain the tax-paying 
power of the people by pi-omotiog, bv wise and salutary 
legislation, the general prosperity. 

With regard to the question of indirect taxation, ou 
which you speak so strongly, the leugth to which this letter 
has extended prohibits any protracted comment; but I may 
say, that the experience of all commercial countries from 
time immemorial, lias approved such taxation. England, so 
well versed in the art of tax-levying, has found custom 
duties her most effective and convenient method. By the 
same means and with a facility perhaps more remarkable, 
the United States have from the begiDuing mainly supplied 
the wants of her Treasury. 

On tiiis subject I will only further add the warning voice 
of Chancellor Kent against a reliance OD direct taxation to 
maintain the Government and pay the national debt. He 
assures us " that as soon as the old confederacy of States 
was ratified, the States began to fail in a prompt and faith- 
ful ol)edience to the laws; and, as danger receded, instan- 
ces of neglect became more frequent, and by the time of 
the peace of 1TS3, the delinquencies of one State became 
the apology for another, until the idea of supplying the pe- 
cuniary 4-ant8 of the nation from requisitions on the State 
was found to be a phantom." 

With sincere personal regard, I am, dear Sir, yours very 
faithfully, Pbteb Coopeb. 

Hon. Ileraan J. Itodfield, Batavia, N. T. 

Peteb Goopke's Addbess befobe the ■ AuBBicAif Imdus- 
TEiAL League, Mat, 1868. 

Gkntlemks. — I have taken the liberty to invite you to 
this Conference, as the friend of American industry. The 
object, as expressed in tlie letter of invitation, is to take 
counsel as to the present condition of our industrial and 


340 TARIFF. 

financial iateresta, and to enforce the necessity of increased 
efforts to awaken and instruct public sentiment on tliose Enl>- 
jects ; and also, I may add, to encourage the adoption of 
those measiu^B, that will most effectually promote all the 
substantial interests of our common coimtry. 

The present time, Gentlemen, is peculiarly appropriate for 
Bucli a conference. We are on the eve of a new adminis- 
tration, which, we have reason to believe, will be character- 
ized by a marked and peculiar ansiety to restore public con- ' 
fidence and credit, as the best means to invigorate all the 
varied industries of a nation. We believe, that the man, 
who, we hope, will soon stand at the head of that adminis- 
tration, will sarround himself with men in full sympathy 
with every industrial interest. Let us then give a word, not 
only of counsel but encouragement, to the man, to whose 
hands may so soon be confided the guidance of the ship of 

llore than three years, Gentlemen, have elapsed since 
Lee's suiTender and the final suppression of the Rebellion, 
and yet, although financiers, economists in the Cabinet and 
in Congress, have during all that time been exercising their 
science and their skill to bring about specie payment, the 
premium on gold is nearly as high as it was on that sad day, 
on which the martyred Lincoln found his death ; and to all 
external appearance we are as far from that result now as 
we were at that time. This fact may bo humiliating and 
discouraging to as as Americans, who know the wealth and 
ca[iacity of our country, who know, too, the unalterable pur- 
pose of our people to maintain at all cost the nation's credit, 
and to secure the national solvency, against all the plots of 
repudiators or rebels, whether at the North or at the South. 
But it is surely suggestive of the necessity of adopting, with- 
out a day's delay, a change in the financial policy of the 
countrj', which has thns worked so badly. 

The three years, which have thus passed, have been 
marked by enormons, unprecedented importations of goods, 
the products of foreign labor. " We have thns " (to em- 


ploy the language of a Grentleman, to whom the producers 
of this country owe a debt of lasting gratitude for his in- 
doDiitable and ofieful efforts in behalf of the industry of the 
country, I mean Mr. E. B. Ward, of Detroit), " paid to 
foreign countries all our cotton, com and other of our pro- 
ducts, that they would purchase ; we have paid them all the 
accumnlated gold and silver we had before the war ; we have 
paid them twelve hundred millions of dollars worth of our 
State, railroad and natioiial eecuritieB, which Europe now 
holds and upon which she receives annual interest ; and we 
are still paying her all the precious metals we obtain from 
our mines." 

We know. Gentlemen, that the national debt, the price 
paid for the nation's life, can only be paid by the labor of 
the people of the United States, by increasing the production 
of the country and securing the industrial prosperity of all 
classes of our citizens — and yet the policy, which we advo- 
cate, of protecting and stimulating our domestic industr}- to 
accompHsh this, is resisted and ridiculed by men in public 
position and lai^ holders of our national securities, as well 
as by that large and powerful class, especially in our sea- 
board cities, whose pecuniary interests, as importers, agents, 
and merchants, are directly and deeply identified with those 
of the manufacturers of Great Britain and Continental 
Europe — and so we find efforts most zealous and persistent 
are being made to circulate among the masses of our peo- 
ple the unsound and impracticable theories of free trade and 
an immediate return to specie payment, while we ai'e a 
debtor nation to the amount of some sixteen hundred mil- 
lions of United States, State, railroad, and manicipal securi- 
ties, on which we are paying interest to foreign nations, with 
a balance of trade against us in gold of $136,000,000 during 
the year 1867. 

What we require for a healthy resumption of specie pay- 
ment, is a relief from all excessive internal taxation, with 
such an adjustment of duties on foreign imports, as will 
bring the balance of trade in favor of the United States. 


343 TARIFF. 

We find, in the face of these facts, that eminent Amer- 
ican citizens, and eminent AmerieaD journals, have lent and 
are lending thoir powerful, but ill-directed inflnence, 1» the 
furtherance of this fatal policj. 

Perhaps, it shoold not be thought strange or wonderful, 
if great and good men should imperceptibly ran into errors, 
in an effort to reduce so complicated and difficult a subject, 
as that of fiee trade and protection to a positive science. 

Science, although it may be represented by a line of no 
variation, wiU, nevertheless, be better understood by calling 
science, knowledge demonstrated by facts, wronght out in 
the actual experience of mankind. Experience teaches, as 
tlie poet says, that "with man a thousand movements scarce 
one purpose gain, while with God, one single can its end pro- 
duce, and serve to second to some other use." 

In our efforts to eaiTy out this beautiful theory of free 
trade, we find ourselves compelled, by circnmstances beyond 
our control, to meet and overcome difficulties, like the mar- 
iner, who desires to go to a distant part of the world. 

The mariner has the north star, his chronometer and com- 
pass, to guide liim by night — he has the sun, his compass, 
quadrant and chart to aid him in bis course by day, which 
enable him to pass through winding channels and around 
islands and shoals, that are directly between him and the 
object of his desire. So it is with us ; we are compelled to 
find our way by the light of experience, out of the artificial 
M'indings, and around the islands and shoals, that ignorance 
and avarice have placed in the path of a world's progress. 

The true object of all government is to prevent the strong 
from oppressing the weak, and to obtain for a whole people 
that security and those comfoi'ts, which the same people 
could not obtain for themselves by acting in their individual 

The very idea of a government carries with it the idea of 
the embodied power and wisdom of a people. A power to 
be need to establish justice, and promote the general wel- 


A wise govemmeut, scting for the good of fdl, would 
carefnllj' ezamiiie so important a subject, as t]iat of free 
trade or protectioo, before adopting either, as a matter, or 
e;Btem of state polic/. 

The subject of free trade and protection is one, aboat 
which a constant conflict has been going on for ages, and 
abont which volnmes have been written without coming 
near to a settlement of public opinion on what iB, or wonld 
be, the wisest policj' for a nation to adopt 

What renders the subject of free trade or protection so 
difficult to be understood and applied as a positive science, 
is the fact, that what would be wise and best for one state 
and condition of society, would be altogether unwise, and 
inapplicable, when the wants of the same people and the 
means of supplying them, had changed with their condi- 
tion. This we have verified in our own experience, in our 
own stm^les for tho nation's life. 

A wise government, in oar altered condition, would en- 
deavor to ascertain how far free trade or protection, as a 
system of national policy, wonld affect the industry of a 
country under the circumstances, in which the country is 
then placed. A wise government should strengthen its own 
independence, by encouraging the manufactui'e of every 
article of necessity, where the raw material is in ae high a 
degree of perfection, as it can be found in any other country, 
and where the material can be wrought into useful forms, 
with as small an expense of human labor as in other coun- 
tries. None will contend, that we, as individualB, or as a 
nation, should depend upon others for those things, that we 
can mannfacture for ourselves cheaper and better than we 
can buy them from foreign nations. 

It may often happen with a young nation, where there is 
a want of capital, machinery and experience, that it will re- 
quire, for a short time, some governmental encouragement 
to enable capital to combine and operate successfully, so as 
to encourage the industry of a country to put its raw mate* 
tials into useful forma for its own consumption. Such gov- 


344 TARIFF. 

emmental protection may be given by bonnties, or by inci- 
dental protection in tbe form of duties on eimilar artielee, 
imported from foreign countries. 

The advocates of free trade attempt to show the fallacy of 
protecting American indnstry, by the errors and mietiJtes, 
that tliQ government haB been drawn into by designing poli- 
ticians, who have persuaded the government to establish cus- 
tom houses, where there waa literally nothing to collect, so 
that in some instances to collect a dollar, it may have cost 
one hundi'ed dollars. With this species of argument the ad* 
Tocates of free trade are trying to demolish all protection to 
home manufactures. They do not tell us, as they should do, 
that after all the mistakes the government has made, that 
the actual cost of collecting the revenue is but three per cent, 
■which is cheaper than it could be collected in any other way. 
Tliat system, which will most effectually promote the industiy 
of a nation, and secure the rewards of labor to the hands 
that earn it, may at all times be relied on as the best systcni, 
a government can adopt. I believe, that it will not be 
difficult to show, that there are conditions in a nation's life, 
when the extremes of free trade, or extreme laws for protec- 
tion, would either of them derange the industry of a country, 
and tliereby work great national ruin. To show this clearly 
in a few words we need only call to mind tbe fact, that all 
nations pass through changes, which are entirely beyond 
their control. All nations commence in weatnees, wantiug 
all that is needed to maintain a comfortable existence. Such 
is the dependence of one man upon anotlier, that the farmer 
requires the help of the blacksmith, the wheelwright, the 
carpenter and mason, who are indispensable to his comfort 
and success. These and a variety of other branches of manu- 
facturing industries, form a valuable home market for the 
farmer's products, and at the same time leave the refuse to 
enrich tbe land, that feeds them. 

Nothing can be more clear and certain than the fact, that 
it is impossible for us, as a nation, to buy anything clieap 
from foreign coimtries, that most be bought at the cost of 


TABIFP. 345 

leaving onr own labor nnemployed, and onr own good raw 
materials unused. A well-directed eyateni of diversified in- 
dustry will always be found to be the sorest eonrce of national 
wealth and individual welfare. 

The time has oome, when every interest of our country re- 
gnires, that the laxity, which has marked the expenditiu*e8 
of the people's money, since the opening of the war, mnst 
be summarily stopped. All nfmecessary expenses of every 
kind must be cut off, the most rigid economy in onr necessary 
expenses must be enforced — the frauds and peculations of 
office holders, which have grown to such frightful magni- 
tude, mast be exposed and prevented ; and I am glad to say, 
that I have reason to know that, if Mr, Wade is called upon 
to assume the Presidency, the force of Iiis administi:ation 
will be directed to this object of enforcing frugality in oar 
expenditures and integrity in onr officers. 

' Our Industrial Leagne, Gentlemen, has labored now for 
nearly twelve months in the promotion of the objects I hare 
here adverted to. It has labored, not ostentatiously, or with 
much parade before the public, but yet assiduously and 
effectively. Its obj ect has been to disseminate widely through 
the conntiy the knowledge of facts and arguments, bearing 
on this question, and it has honestly sought the enlighten- 
ment of the people, in regard to it. In pursuance of this 
object, it has established asits organ The Natvmal Amei'ican, 
which is recognized as an able and instrnctive exponent of 
onr policy, and has been the means of circulating a vast 
amount of valuable information on the question, of which 
it treats, through Leagues formed in different States. 

It has inaugurated the issue of a series of brief popular 
tracts (of which you see specimens before yoa) calcnlated, in 
,an attractive and graphic manner, to present the leading ar- 
guments for protection, and to refute the impolicy of free 
trade in the present condition of. our country. It has caused 
the delivery through the North and West of a number of 
speeches and addresses by ^fted and trusted men, which 
have already produced a deep effect apon the Western mind ; 


346 TAEIFF. 

and it has been odefol in fomiehing to friendly jonmak in 
' all sections of the conntr; original and early information on 
industrial and economical subjects, which is of value to our 
friends of the Press and the people, among whom they cir- 

It has labored earnestly, and not withont advantage, in the 
effort tosecm^ the abolition of the manufacturers' tax. The 
League is thus engaged in a good and osef ul work, and it 
only needs enlarged pecnniary support, in order greatly to 
increase the value of its labor. 

We should not foi^t, that English merchants oflce peti- 
tioned their Government to "discourage tlie woollen manu- 
facture in Ireland," in order to force all Irish wool to pass 
through English looms, before being conveiled into cloth for 
their own consumption. To accompliBh this, according to 
Adam Smith, the goveiimient of England "made war to 
obtain colonies for customers." 

In 1710, the House of Commons declared that "the wec- 
tion of manufactories in the colonies lessened their depen- 
dence on Great Britain. In 1750, the erection of any mill 
for rolling or slitting iron was prohibited by law. In 1765, 
it was made a heavy penalty to export artisans or machinery 
of any kind to the colonies. 

I thank, you, gentlemen, for the patience, with which yon 
have listened to these remarks. 

LsTTEB OF Hon. John Covodb, M,C., to Peteb Coopeb. 


" Mt Deab Snc : The pressure of public duties will deny me 
the pleasure of participating in person at " the Conference 
of the American Industrial League " on the 28th instant, 
but my most earnest sympathies will be present and active 
on an occasion of such interest and importance. 

There never was a period in the history of the country, 
when the wisdom, if not the necessity, of protecting our 
domestic industry, was more apparent than at the present 


TARIFF. 347 

time, when an nnaccnetoyied nstionsl debt and taxation rest 
BO heavily upon every brancli of enterprise, and harden so 
seriously the labor of those, who earn their bread by the 
sweat of their brow. 

The fact is painf ally true, that more labor is now un- 
employed throcghont the country than was ever before 
known, in comparison to the actual population, and ex- 
perience demonstrates, that crime increases in proportion to 
the extent of idleness. The primary cause for this state of 
things is to be fonnd in the excessive importations, which, 
not only enter into competition with and destroy om- infant 
manufactares, but work a double injury by the drain of our 
precious metals and equally precious Government Securities. 
Under this ruinous system, therAmerican people are sus- 
taining the cheap and pauper labor of Europe, and through 
it the despotism of the old world, at the expense of our own 
free, intelligent and honest industry. With a soil teeming 
with mineral and agricultural wealth of every deecriptdon, 
we are annually importing three or four hundred millions of 
the products of European agriculture and mines in the form 
of manufactured fabrics, tlius augmenting the burdens, that 
already sufficiently oppress American labor, and stifling its 
prosperous development 

Protection is a natural law, by which every country seeks 
to promote the welfare of its own industry, and which those 
practise most thoi-oughly, who, like England, shout the 
loudest for so-called Free Trade, The nation, which neglects 
this duty, must expect to pay a severe penalty of privation 
and poverty. Its broad and generous principle is to bring 
the consumers and producers near together, to diversify the 
pursuits of labor, to establish harmony and unity among 
them all and, by well recompensed employment, to instruct, 
elevate and dignify the working man, so as to flt him for all 
the duties, and to entitle him to enjoy all the responsibilities 
of an American citizen. 

Aside from this economic view, protection is the most 
patent and practical element of reconstmction, that can be 


348 TARIFF. 

applied to tlie Soathem commuuitieB, because it is that 
wliich, witii wise legislation, will be most permanent, and 
which addreasea itaelf directly to the reparation of that ruin 
and prostration, which are the natural conseqneneea of an 
unprovoked Rebellion. When the interests of a people are 
barmoniouB and work together by a common impulse, poli- 
tical discontent must cease to exiBt. If the TarifE of 1843, 
modified by experience, had been permitted to stand, Becea- 
aion would have never raised its parricidal arm in the South, 
and slavery would have been extinguished by natural causes, 
without commotion or bloodshed. Let ub not forget that 
instruction in the future, or fail to remember, that the in- 
fluence of British Free Traders and their allieB, who over- 
threw that beneficent policy in 1847, and thiiB planted the 
seeds, which expanded into civil war, in 1861, is again at 
work and seeking a new field for its'pemicious designs. 
Protection is a bond of union for the whole country, Korth 
and South, East and West. With it, all sectional jealousies 
will disappear, and therefore its encouragement becomes a 
patriotic duty. With high respect, 

John Cotode. 
Hon. Fetes Coopee." 

" UniTED States Sehatb Chambeb, 

Wabhinqtok, April IT, 1868. 
" Deah Sir : I have received your favor of the 13th inat,, 
requesting me to attend a conference of the friends of 
American industry on the 28th inst. 

I regret, that tlie pressure of my public duties here will 
not permit me to leave Washington for the purpose in- 
dicated. I have much pleasure in expressing to you my 
entire appreciation of the objects of your association, 'and 
my earnest wisheB for its complete Euccess. 

"Very respectfully, your obedient servant, 

H. Wilson. 
Hon. Peteb Coopbe, New York." 


' ' House of Bbfbksentatites, 

Wabhiijoton Cnr, kjutt 26, 1868- 

" Peteb Coopee, Esq., President of the AmericaD Indns- 
trial League : Yours of 13th inet., inTiting my attendance 
at a Conference of the friends of American induBtry in 
Kew York on 28th inst., is received. My duties here will 
prevent my attendance. It has been a life-long opinion 
with me, that it is the dnty of the American people to pro- 
mote, protect and encourage the interests of American labor ; 
to stimulate and render profitable domestic production, 
whether agricultural, mining or manufacturing. 

The country cannot long endure the excessive importa- 
tion, now going on to the ruin of our own indnstiy, while 
the interests of foreign capital atone are promoted thereby. 
Eespectfully, Wm. Laubencb." 

Free Tbade — Its Effects oh the Fasmeb. 

In my letter to the Hon. James Brooks in reply to a 
speech, made by him in favor of free trade, I say : 

I am informed from Washington, that Mr. Brooks is now 
ready "to mount on a peddler's wagon and ride through the 
agricnltar^l districts of the country, eshibiting hoes, shovels, 
axes, bars, chains, rods, knives, forks, cottons and woollens, 
to demonstrate to the eyes of the people the enormous taxa- 
tion, imposed on them by the existing tariff." 

Before he commences tliis journey among the farmers, I 
propose to share with him a large part of the expense on 
condition, that he will inform the farmers as he goes tlirough 
the country, that, according to Mr. Wells' report, there are 
one million of men, now employed in the manufacture of 
those articles, so indispensable to every farmer. 

I want him to ascertain from the farmers, how many mil- 
lions of bushels of their giain and all other agricnltiiral pro- 
ducts are annually consumed by these hundreds of thousands 
of the working men of our country. I want him to be very 


350 TARIFF. 

. pftrtioular, as he goes along, to show the fanners how per- 
fectly insignificant the amount of grain is, that has been 
sold ahroad, when compared witli the amount, that is an- 
nually couBumed by the men, now employed in making the 
varioue articles he enumerates. It will be well, as he comes 
in contact with the farmers, to ascertain, where they expect 
to find a market, when those hundreds of thousands, who 
now consume their produce, are forced to turn farmers and 
come in competition with them for a market. 

I hope Mr. Brooks will quote from ilr. Wells' report, 
where he states, "that the American agriculturist does not 
command his own price in a foreign market, bnt the price 
commandB him," as he ia compelled "to seU at the price of- 
fered in Ixmdon, the central market of the world" where 
farm labor is hired for one-half the price, paid for it in this 

It will be a matter of the greatest interest for the farmers 
to know, that Mr. Wells says "there are now one million 
of skilled artisans in our country, making the largest and 
moat valuable consuming class in this community." 

Mr. Brooks ehonld tell the farmers, tliat these are the 
men, with their families, employers and laborers, who con- 
sume a large part of all they have to sell, and are now pay- 
ing them more than they could get in any other part of the 

I hope Hr. Brooks will he sare, as he passes through the 
country, to tell the farmer, that he and his friends are doing 
all they can to withdraw the legal-tender notes, and bring 
about a speedy return to specie payments, and that, notwith- 
standing, we are a debtor country to an amount nearly equal 
to our national debt. 

He can assure the farmers that, as soon as our hank paper 
is payable in specie on demand, there will he some four or 
five dollars of paper afioat for every silver or gold dollar in 
the country. 

He should assure the farmers that, when all our paper 
money is made payable in specie on demand, it will prove 



the most certain meaiiB, that can be used to "fertilize die 
rich man's field by the sweat of the poor man's brow." 

It will do this by ensuring the periodical return of those 
scenes of panic, preeeore, general bankxnpt<7 and ruin, that 
have so often changed the values of all property and labor 
some twenty-five or fifty per cent, in a single year, whenever 
it was for the'iaterest of foreign creditors or merchants at 
home to withdraw a few extra millions from om* banks, as 
they did in 1857, when a withdrawal of only seven millions 
produced the panic of that year, which sunk the values of 
all the property of our country to the amount of thousands 
of millions of dollars. Tliese millions were taken from the 
farmers, mechamcs and merchants, who were in debt, and 
put in the possession of those, who had tlie means to boy at 
the ruinous rates, at which property of all kinds was com- 
pelled to be sold, Uius making, as it ever must, the ricli 
richer, and the poor poorer. 

Mr. Brooks should sound an alarm as be goes through the 
country, and say to all, that there can be no security for any 
man, who is in debt, until our general government shall per- 
form its most important duty, which is, not only to establish 
a just system of money, weights and measures, but a system 
of legal-tender paper money, in amount equal to the amount 
put in circulation at the end of tlie war by the necesBitiee of 
the government 

Such a legal-tender paper money would be a bond and 
mortgage on the whole property of the country and a bond 
of nnion among the states, and would leave gold and silver 
to be an article of commerce in the hands of those, who 
hold it. 

Mr. Brooks will perform a most valuable service to tlie 
country, if be will tell the farmers, that Dr. Franklin says, 
that the American people, under the old colonial govern- 
ment, were so immoderately fond of the mauufactnres and 
superfiuities of foreign countries " that they could not be 
restrained from purchasing tliem," because such laws, if 
made, would be immediately repealed as prejudicial to the 


363 TAEIPP. 

trade and interest of Great Britain. Dr. Franklin tiien 
adds that " it Beems hard, therefore, to draw all their real 
money from them, and then refuse them the privilege of 
neing paper instead of it." 

Mr. Brooks will perform a most valnable service to the 
country bj showing the farmers, that the. absenteeism, 
which has mined Ireland, was nothing more than the tam- 
ing of a hundred small farms into one large grazing farm, 
that can be managed by a single individnal, instead of mak' 
ing a home for the hundred individual farmere. 

He should show the farmers, that Ireland has been im- 
poverished by the same policy, which England tried to force 
on her American Colonies, as will appear by the following 
facts of British legislation : 

"In 1710, a law was enacted in the Hoiue of Commons, 
which declared the erecting of manufactories in the Col- 
onies tended to lessen their dependence on Great Britain. 

In 1783, the exportation of hats from province to prov- 
ince and the nnmber of apprentices were limited. 

In 1750, the erection of any mill or engine for slitting or 
roUing iron was prohibited. 

In 1765, the exportation of artisans was prohibited under 
a heavy penalty. 

In 1781, utensils required for the manidactnre of wool or 
silk were prohibited. 

In 1782, the prohibition was extended to artificers in 
printing calicoes, muslins or linens. 

In 1785, the prohibition was extended to tools, used in 
iron or steel maunfacture, and to workmen employed. 

In 1799, it was so extended as to even embrace colliers." 

All classes should gather wisdom by reflecting on the his- 
tory and the experience of the past. 

Free trade is beautiful in theory, and will be in practice, 
where all things are equal and peaceful in the relations of 
nations, and rapid transit shall go far to anniliilate space. 

Our government, having allowed and used paper money, 
until the day's labor has been made to cost at least one-third 


TAKIFF. 353 

more than a. similar day's labor would coat in other cotmtries, 
to bring ahont an eqnality in trade will require a tariff, 
based on the diSerence in the cost, that will purchase a 
day's labor in our country, as compared with that of foreign 

If the farmers desire to secure for themselves s reliable 
market and the highest price for their product, they must 
use the means best calculated to effect that object — they 
must encourage the manufacture of the articles they con- 
sume and have them made as near their homes as possible. 
. This should be done wherever good raw materials can be 
found, that can be put into forms of usefulness with as 
small expense of labor in this country, as in any part of 
the world. 

If I am not mistaken our country will rise out of its great 
embarrassment in a way, that would astonish the world, if 
our Government would perform what was and is its first 
and most important duty. 

The Constitution made it the duty of Congress to adopt 
measures that will " establish justice ; " that is the only 
means by whicli the " common welfare can be promoted." 

To establish justice for a nation there must be created and 
maintained a just and uniform system of money, weights 
and measures. 

It is of the greatest importance, that all the paper money, 
allowed by the government, should be made as unyielding 
in its power to pay debts as the yard-stick or the pound- 

Our government, having been literally compelled to issue 
and use a legal-tender paper money, in order to save the 
nation's life, has, by its use, caused the whole property of 
the country to be measured by its purchasing power. By 
this use of paper lAoney the government has created a most 
solemn obligation on its part to do no act to increase- or di- 
minish the amount of paper money beyond the absolute 
necessities of the government. As an increase of the 
amoimt would inflate prices, without increasing real values, 


364 TAHIPP. 

in the Bame proportioD a diminution of currency nmet canse 
all property to shrink in price, and thereby put it oat of the 
power of the people to pay the national debt. 

One thing is certain, that the national debt can never 
be paid by a governmental policy, that shrinks the cur- 
rency, destroys values, paralyzes indoatry, enforces idleness 
and brings wretchedness and niin to the homes of millions 
. of the American people. It is equally true, that Americans 
can never buy anything cheap from foreign countries, that 
must be bought at the expense of leaving our own good raw 
materials nnnsed, and our own labor unemployed. It > 
should be remembered, that neither gold, silver, copper, 
nickel nor paper are money, without the stamp of the gov- 
ernment upon it. The Constitution has made it the dnty 
of Congress to coin the money of onr country and regnlate 
the value thereof, and fix a standard of weights and mea- 
sures, as the only possible means, by which commerce can 
be regulated between foreign nations aiid among the several 

Petbb Coopeb. 

Addbess at a Dinner, qiven at Deuionioo'b, bt the Cou- 
MiBsiOH Merchants of New Yohz to the Manufac- 


Mb. Fbesident and Gentlemen : 

I have indulged the hope, that the day will come, wheo 
all festive occasions, like the present, will be made feasts of 
reason as well as feasts of the good things, provided by 
Nature for our use. 

In my attempt to reply to the toast, in honor of the City 
of New York, I wonld gladly, if I could, say something that 
might be remembered with profit. 

When, my friends, I turn my thoughts in review of the 
rise and progress of this, my beloved native city — the city, 
where both my mother and grandmothei- were bom — when 
I call te mind its rapid growth iu population, wealth and 


TARIFF. 365 

power, it seems almost like a vision, that has passed ; for at 
the time of my birth there were only abotit forty thoosand 
iDhahitants on this island. 

When the mind wanders over the vast extent of the coun- 
try, that now ponrs its treasnres into onr city — when we con- 
template the nntold miliionB, that will soon occnpy it£ vast 
extent, witii all onr lakes, moimtains, rivers and noble har- 
bors, with all the f oating palaces, that bring to onr favored 
cities the choicest frnits of every clime — and when I look on 
the fiery steeds, that rend the air and canee the very earth 
to tremble beneath onr feet, while they fly through space as 
on the wings of the wind — in view of all this, when I recol- 
lect, that it fell to my lot to pnt on the Baltimore and Ohio 
liailroad the first American built locomotive-engine, that 
carried passengers in this country, the recollection of all 
this, with the power we now have to send our messages 
through the world with lightning-speed, all seems like a 
dream. These are but items of what science has done and 
will do for the world, when mankind become wise enongh 
to heat their swords into plowshares, and their spears into 
pruning hooks. This they will only do, when knowledge shall 
cover the earth, as the waters cover the great deep. Until 
that time shall arrive, we must remember, that the price of 
our liberty and independence is perpetual vigilance ; for, as 
the poet says that "Life is war, eternal war with woe — and 
be that bears it best, deserves it least." 

I tmst, my friends, tliat the time will come, when it will 
be tlie pride and the glory of every American citizen to 
give the world an equivalent, in some form of useful labor, 
for all he consumes in life. 

There is nothing, my friends, more important for us, as 
individuals, or as a community, State or Nation, than to 
gather wisdom from the history and experience of the past. 

The Fathers of our country had gathered from the past 
an amount of wisdom, that enabled them to form for us a 
Constitution, which was intended to embody, in the forms 
<^ law, the highest wisdom, virtue and intelligence of a 


whole people. They intended to make that virtue and in- 
telligence a shield to protect the lives and property of all. 
They intended, that our Government shonld be of the people 
and for the people, and become a tower of strength, on 
which we might rely with safety, for all that can make a 
nation rich, prosperoua and happy. 

The advocates of free trade with foreign countries are 
trying to persnade onr Government and people, that it is for 
our intereGt to hay from other nations all the laxuriea and 
Buperfiuitiea they have to offer. These advocates of free 
trade propose, that oar own mechanics shall either work at 
the starvation-priees of foreign labor, or be forced to aban- 
don their trades and become competitora with the agricul- 
tural interests of the country. 

If we desire to bring upon onr whole nation a fate similar 
to that, which has fallen to the lot of Ireland, India, Tur- 
key, ^Mexico and IlindoostaD, it is only necessary to arrange 
our tariff in a way, that will induce the people throughout 
the States to have all their mannfactaring done iu foreign 
countries, aad pay for it, with the raw materials of onr own. 

Such a policy will, if I am not mistaken, secure for our 
Union of States as rapid a decline- and fall as those of 
Spain, when she drove the Moors, her principal manafac- 
turers, oat of her country. 

Such a policy might gratify our national thirst after all the 
dear-bought follies and fashions of £nro]>can life ; but it 
would bring ruin and wretchedness npon hundreds of thou- 
sands of the mechanics of our counti^', who have nothing to 
eell but their labor. To break up the diversified employ- 
ments of this vast number, by a change of tariff, and then, 
expect them to find for themselves other means of living, is 
about as reasonable as it was for Pharaoh to expect his 
people to make bricks without straw. What tlie mechanics 
of our country have a right to ask of the G«veniment is, that 
such an adjustment of the tariff should be made, as will se- 
cure the payment of the national debt and the expenses of 
the Government, from duties on imports, witltin a reason- 


TARIFF. 357 

able time. The duties should all be raised from the small- 
est nnmbcr of articles, that would yield the required ai^ount. 
The raising of duties should be made to eacoorage the manu- 
facture of those articles, that are the most iadispeosable to 
the welfare of the nation in time of war. 

It is fortunate for our country, that we are enabled to 
produce cotton and oom, with less labor than the same can 
be produced in any other part of the world. 

With 'the surplus of these important articles for export, 
leather with the gold and the agricultural and manufactu- 
ring products of the country, we shall be able to maintain 
an extended and profitable commerce with foreign countries, 
without reducing the price of labor, to the level that is now 
being paid for similar labor in foreign countries. 

For om- (Jovemraent and people, to take the advice of 
the advocates of free trade, would be, about as wise, as for a 
nation at war with another, to control and regulate their 
action, by the advice of their enemies. It is terrible to con- 
template the ruin, that can be brought on a country by fol- 
lowing the advice of men or Govemmenta, that have a direct 
interest to mitilead and deceive us. 

There is nothing, my friends, but a diversified and well- 
directed labor, that can secure national wealth and general 

We must remember, that it is impossible to obtain any- 
thing cheap from foreign countries, that must be bought at 
the expense of leaving our own labor unemployed, and our 
own good raw materials unused. 

In conclusion, it gives me pleasure to state, for one, that 
I see reason to hope, for a wise and economical Government 
over our city. That hope was inspired by the fact, that our 
" CUi^en^ Association " had obtained from the Supreme 
Court an order to take possession of the Street Commis- 
sioner's books, which showed such a revelation of fraud, that 
he left his otBce at once. 

This hope is founded on the laws, that were obtained, by 
an almost unanimous vote of the last Legislature of our 


State. By these laws, we hare secured responeible heads 
and a degree of stability in all the different departments of 
the government of onr city. 

As another ground of hope I would state, ae Preaident of 
the Citizens' Association, that we have received the strong- 
est form of assorance from the principal meu, now in the 
most prominent departments of the Government, that it is 
their intention to do all in their power to secure for our 
city an honest and economical Government. 

We have another ground of hope for the fntnre growth 
and prosperity of our city and State, growing out of the 
legislation of the last winter. It will be remembered, that 
a large body of men formed themselves into what is known 
as a Commercial Union. They petitioned the Legislatore 
for lower tolls, and for a reform in die management of the 
canals. They were men, who saw and felt the great impor- 
tance of bringing back to our State and city a commerce, 
that was being rapidly lost by the high tolls and bad 
management of the Erie Canal — a canal, that has more 
than doubled the value of the city of New- York, and has, 
from its tolls, paid |15,000,000 into the treasury of the 
State, after'having paid, in addition, all ite cost, and the 
expenses of running it. 

Under the lavrs, passed last winter, the tolls have been 
reduced some fifty per cent, besides having removed the 
temptation of contractors to make profitable jobs out of 
the breaks, that so frequently took place on the line of 
the canal. 

It is now rendered certain, that transportation on the Erie 
Canal, can be doubled, without enlargement, and that the 
price of freight can be reduced by the introduction of steam 
for towing the boats, without any injury to the banks of the 
canal. The experiment has been fairly tried by an or- 
dinary full-sized boat, to which steam was applied. The 
boat passed from New York to Albany by ite own power, 
and throngh forty locks on the canal, towing another boat a 
part of the way, and burning only one ton of coal in twenty- 


four hours, Bhowing a power of sixteen horses for twenty- 
four hours, at a cost of five dollars, when coal cod he had at 
five dollan the ton. 

The report of the experimeut shows, " that a loaded hoat 
can be towed sevens-two miles, at a cost of five dollaifi, 
when the towing of boats with horses cost forty cents ^er 
mUe for each boat this season, or $28.80 for seventy-two 

With such advantages of cheap and rapid transportation 
for the heavy products of the West, what may we not hope 
for and expect, when onr new system of wharves, now being 
devised by our excellent dock commissioners, Wilson G. 
Hunt at its head, shall invite to oar city the commerce of 
the world % 



Kbw Toke, October 7, 1871. 

Sib — The experience of nearly 81 years has taught me, 
that the greatest and most important qneetiou, that now 
demands the consideration of the American people is, 
wliether we, as a nation, are willing to know the truth and 
let the truth make and maintain onr freedom, or whether 
we have deliberately determined to follow the advice of 
men and nations, who have a direct and an immediate in- 
terest to mislead and deceive ns. For we may rest assured, 
that all trade, between foreign nations and our own, is a 
kind of Comm^dal War. It is a war of interests, as all 
nations are using their highest arts to buy as cheap and sell 
as dear as they can. All are trying to buy their raw ma- 
terials in the cheapest market, and to sell their manufac- 
tured labor for the most, that can he obtwned for it. This 
they are doing by the use of all the arts, both fair and foul, 
tliat human ingenuity can devise. 

It can be shown, that the wars of commercial interests 
are more insidious and more to be dreaded, than wars of 


conquest. There is nothing in all history, Hiat admits of 
more complete demonetratioa than the fact, that the wars 
of commercial interests, carried on hy England alone, have 
led to, and caased a greater destruction of life and prop- 
erty, during the last TO years, than has been occasioned by 
all the wars of conquest, that have taken place in the civil- 
ized world during that period of time. It is now less than 
75 years since a company, chartered by Great Britwn, 
commenced a mercantile war on the people of Hindostan, 
a country with its then 150,000,000 of inhabitants, famed 
for manofactaring the finest quality of goods, and for 
being in possession of the riches of the East. History tells 
us, tliat " in no part of the world has there been seen a greater 
tendency to voluntary association for a mutual exchange 
of labor than once existed in Hindostan. . . . Each 
village had its distinct organization, under which the na- 
tives had lived from the earliest times down to a recent 
date, . . . Revolutions might occur, and dynasties 
might succeed each other ; but, so long as his own little 
sficiety was undisturbed, tlie simple Hindoo gave himself 
no concern about what might happen at the capitaL . . . 
Thongh often over-taxed and plundered by invading ar- 
mies, the country continued both rich and prosperous," 
until an East India Company, chartered and sustained by 
the jMiwer of Great Britain, commenced a war of encroach- 
ments on the trade and commerce of that country. This 
war of commercial interests led to a war of conquest, 
which, after the battle of Plassey, had established British 
power in India. " The country became filled with adven- 
turers ; men whose sole object was to accumulate fortunes, 
by any means, however foul," as was shown by the indig- 
nant denunciation of Burke in the Parliament of Great 
Britain. Fox declared, in a ^»eech on the East India bill, 
that " the country was laid waste with fire and sword, and 
the land once distinguished most above others by the cheer- 
ful face of fraternal government and prc^cted labor, the 
chosen seat of cultivation and plenty, is now almost a 


dreary desert, csovered with rashes and briare, jungles and 
wild beaats." . . . 

Macaulay says, " The misgovemmont was carried to suiJi 
an extent, as seemed hardly compatible with the existence 
of society. They forced the natives to buy deai- and sell 
cheap." They insulted, with impunity, the tribunals, the 
police and the fiscal authorities of tlie country. Enormoue 
fortunes were thus rapidly accumulated at Calcutta, where 
30,000,000 of InimsD beings were reduced to the extremity 
of wi-etcheducas. They had been accustomed to live under 
tyranny; but never tyranny like this. Under their old 
masters, they had one i-esource — when the evil became in- 
euppoi-table, the people pulled down the Government. 
But the English Government was not to be eliaken off. 
That Government, oppressive as the most oppressive form 
of barbarian despotism, was strong with all the strength of 
civilization. It resembled the government of evil genii 
rather than the government of human tyrants. . . . 
Under the title of Zamindas, a landed aristoci-acy was 
created and held accountable for the collection of the taxes. 
Fnllerton, a member of the Madras Council, says: "Im- 
agine the revenue leviable through the agency of 100,000 
revenue officers ; collected or remitted at their discretion, 
according to the occupant's means of paying, whether from 
produce of the land or his separate propcity ; and, in order 
to encourage every man to act as a spy on his neighbor 
and report his means of paying, that he may save himself 
from all extra demand, imagine all the cultivators of a vil- 
lage liable at all times to a separate demand, in order to 
make np the failure of one or more individuals of the pai-- 
ish. Imagine collectors to every county, acting under the 
orders of a Board, on the avowed principle of destroying 
all competition for labor by a general equalization of as- 
sessments, seizing and sending back all runaways to each 
other. Lastly, imagine the collector, the sole magistrate or 
Justice of the Peace of the county; through the medium 
of whom alone, complaint of personal grievance, suffered 


by the subject, con reach t^e Saperior Court. Imagine at 
the same time every Bubordinate officer, employed in the 
collection of the land-revenae to be a police officer, vested 
with tlie power to coufine, put in the stocks' and flay any 
inhabitant within his range, on any chaise, without oath of 
the accuser or sworn recorded evidence in the case." . . . 
Under this state of thidge, " the works constructed for irri- 
gation have gone to ruin, and the richest lands have been 

Gapt Weetmacot tells his readers, that in places the 
longest under British rule, there is the largest amount of 
depravity and crime. Campbell, one of the most distin- 
guished of British poets, characterizes the course of their 
policy in India prophetically when he says : 

" Tom of mftukliid, hoc goardlui ajurita uj, 
Eovolvlng ages bring tha bitter day, 
When heaven's unerring aim BluU fall on jou, 
And blood for blood tliese Indian pUins bedsw." 

" The immolations of an Indian Jnggeniaut," says a recent 
writer, " dwindle into insignificance before it, and yet to 
maintain this trade the towns and cities have been laid in 
ruins." The middleman system of Ireland and of the 
Wefit Indies was transplanted to those coantriea of the 
East, to which Macanlay declares, that " the English Ok)r- 
emment became as oppressive as the most oppressive form 
of barbarian despotism." The poor Hindoo was not al- 
lowed to make salt from the waters of the ocean. Every 
form of tax and exaction was forced on that people, in or> 
der to drive them to send all their cotton and wool to Eng- 
land (the great workshop of the world) to be converted and 
returned. Sir Robert Peel says : " The effects in India ex- 
hibit themselves in such a ruin and distress, that no parol- 
lei- can be Jhimd in the annale of commerce." Tbe great 
city of Decca, that only 70 years since ' contained 90,000 
houses, and exported millions of pieces of the finest qnal- 
ity of goods, is now a mass of ruins." The same authority 


ssys: "For the accomplishineDt of this work of destruc- 
tion, the childreu of Lancashire, England, were eioployed 
15 to 17 hours per day during the week, aud until 13 
o'clock on Sunday, cleaning and oiling machinery, for 
which they received two ahillingB and nine pence per 
week. The object was to underwork the poor Hindoo, and 
drive him from the markets of the world." The pound of 
cotton, costing in India one cent, was passed through Brit- 
ish looms, and sold to tl\d ILndoo for from iO to 60 
cents. ** Tims England was enriched, as India became 
impoverished. Step by step, British power was extended, 
and eveiywhere was adopted the Hindoo principle, that the 
$overeign, as proprietor of the soil, was entitled to half 
the gross produce." While these exorbitant local taxes 
were expended among its own people, the burden could 
be borne ; when these taxes were drawn from the people 
and expended on absentee landlords, the burden brought 
desolation and premature death to millions of the peo- 
ple of that country. History tells us, that one-half of tlie 
labor of that people ran to waste for the want of employ- 

The exactions of British power in China, made to force 
the sale of opium in that country, are stated to cause the 
death annually of 500,000 of the Chinese people, besides a 
tax of nearly ^20,000,000. The ruin of Portugal was ef- 
fected by the Government's having been induced to adopt 
a British commercial policy, whitb broke up the harmony 
of the agricultural and mechanical interests — interests, that 
had for so long a time made Portugal rich and prosperous. 
" It is less than 200 years since the merchants of London 
petitioned their Government to restrain the manufacture 
of doth in Ireland." Of all the 1,700,000 slaves, imported 
into the British West India Islands, only 660,000 were 
found living on the day of emancipation. This was the re- 
sult of a war of commerce. The planters on those islands 
bad been deprived by law of all right " to refine their own 
sugar, or to introduce a spindle or a loom, or to mine coal, 


d64 TARIFF. 

or to emelt their own copper," thua depririDg the people oi 
the iBlandB of all power of associatiou, and exchange of la- 
bor, and harmony of intereste, without which ruin falls to 
the lot of every community. The Biitish policy, that was 
forced op the lelaud of Jamaica alone, cost the lives of 
hundi'eds of thousands of men, in order that a few absentee 
owners might live in aplendor on the Isle of Britain. The 
policy of forcing the whole labor of a comnianity into the 
single parsait of making sugar effectually prevented the 
growth of towns and schools, and impoverished the people 
and the land. All communities require the families of the 
blacksmith, the carpenter, mason, and of other tradesmen, 
to consume a large part of the agricultural product of the 
soil, to secure them prosperity and to enable them to leave 
offal to enrich the laud that feeds them. " On the Island 
of Jamaica, with a population of 320,000 black laborers, 
and witli inexhaastihle supplies of timber, that island has 
been without a single saw-mill up to 1860," Out of the 
amount ptud to the British Government by the people 
thirty years since for the products of its 320,000 black la- 
borers, the Home Government took no less than $18,000,000, 
or almost $60 per head, and this mei-ely for superintending 
the exchanges. The negroes, imported into Jamaica were 
DO more barbarian than those, brought to Virginia and 
North Carolina ; yet, while each of the negroes, imported 
into the latter States is represented by seven of his de- 
scendants, the British Islands pi-eBent but two for every five 
they have received. But a century since, Portugal and the 
"West Indies were England's best customers. What ai'e 
they now J All impoverished by a policy, that has broken 
up their own home commerce, and has subjected their 
countries to the heaviest kind of tax — the tax of transport- 
ing their heavy products to great distances, to be exchanged 
for the light prodneta of other countries. 

The first attempt at manufacture in the American Colo- 
nies was followed by interference on the par^ of the British 
Legislature. . . . "In 1710, the House of Commons de- 



clared, that the erecting mannfactories in the Oolonies 
tended to leeeeii their dependence on Great Britain. . . . 
In 1732, the exportation of bate from province to province, 

and the number of apprentices were limited In 

1750, the erection of any mill or engine for slitting or roll- ' 
ing iron was prohibited. ... In 1765, the exporta- 
tion of artisana from Great Britain was prohibited, under a 
heavy penalty. ... In 1781, utensiU, required for the 
manufacture of wool or silk were prohibited. ... In 
1782, the prohibition was extended to artificere in printing 
calicoes, mnslins, or linens, or in making implements, used 
in their manufacture. ... In 1785, the prohibition 
was extended to tools, need in iron and steel manufacture, 
aud to workmen bo employed. ... In 1799, it was so 
extended as to embrace even colliers." 

The war of the Revolution of our own conntry was 
brought on by a war of comjneroial interests. It was a 
war, that showed a determination on the part of the mother 
country to keep her Colonies entirely dependent on Eng- 
land for all forma of manufactured articles. Laws were 
enacted to prevent the Colonies from manufacturing out of 
their own good raw materials things, indispensable for their 
own use, and necessary to give employment to those, who 
have nothing to sell but their own labor. The war of the 
Bevolntion was a war of resistance to a war of commerce, 
then being forced by the mother conntry on the Colonics. 
Our conquest of a country did not deliver na from the con- 
summate power of highly educated British diplomats, whose 
business it has alvrays been to find the weak places in sur- 
ronnding governments, and to so control the legislation of 
those conntriea as to make tliem tributary to the wealth and 
power of Great Britain. These diplomats, after having se- 
cured for their own mamifactnring iiitereeta more perfect 
protection and more perfect mechanical powers, thati any 
other nation possessed, have enabled their Government to 
gain greater advantages by their war of commerce on our 
own country, than they could have gained, if the Colonies 


had remained entirely under tlieir own control. Sncb baa 
been the consummate ability, that foreign diploiiiacy has 
been able toexert in a war of commerce, which has bronght 
our conntry in debt to foreign Govemments to an amount 
tbe interest on which is now eqnivalent to a large propor- 
tiou of tbe agricultural export of the conntry. This state of 
things mnst continae or grow worse, unless our Qovem* 
ment will raise its whole revenae out of duties on imports, 
and relieve tbe country from all forms of direct taxation, 
and by that means encourage tbe application of knowledge, 
economy and labor, in a couree of efforts to supply our own 
wants by our own industry, out of our own good raw ma- 
teriaU, that can be put into useful forms with as small an 
expense of human labor here, as in any other part of the 
world. Thus it will enable the country to win back its in- 
dependence of foreign debt, by paying it off as fast as the 
amount can be raised from tbe duties on imports. 

Our Govemtnent can only hold its power as a free system 
by avoiding in futnre all special, partial, or class legislation, 
and by the enactment of only such general laws, as are ne- 
cessary and indispensable to estabbeh justice. Justice 
can only be established " and the general welfare pro- 
moted" by the Qovomment'a holding entire control over 
all, that is allowed or intended to measure or weigh the 
different forms and valneaof labor in its course of exchange 
from one person to another. Hence the absolute necessity 
for the establishment of a just and unyielding system of 
money. This is indispensable to facilitate the business of 
the country. If paper is to be coined into money, the 
amount should be limited and so regulated, that the sum 
could only be increased in regular proportion with the natu- 
ral increase of tbe inhabitants of the country. All Govern- 
ment paper should be a legal tender in the payment of all 
private debts, which were contracted during the time, that 
paper is allowed to circulate as money. All persons should 
liavo the privilege of paying duties on imports, and also all 
contracts to pay gold, by adding to the amount in legal ten- 


TARIFF. 867 

ders a snra anfficient to be equal to (he average prerainni, 
that gold had sold for dnrinj; the mouth preceding the ma- 
turing of the contract — the CK>TernmeQt to Advertise the 
rate of premium on the let of every month. 

The people of oar country should never forget, that one 
of the great causes which led to the American Revolution, 
was the determination on the part of Great Si-itaiu to force 
its mannfactures on the Coloniea, to be paid for by sending 
raw materiaU to England ; thus keeping them dependent 
by preventing them from manufacturing for themaelves. 
This policy of England has drawn to its little island the 
wealth of every country, that has allowed itself to become 
the subject of its policy and power. It is still trying to 
persuade the people of this country to run their plows in 
competition with the mighty machines in England, where 
a aingle engine is doing the work of a thousand horses. To 
see the folly of yielding to a British policy, we have only to 
look at the effects, produced on our country during the war 
with England. At that time, when our foreign trade was 
cut off, labor was in demand and money abundant, furnaces 
and mills were built and all actively employed ; wages were 
high and our national debt small. Four years later, our 
country was persuaded to yield to a British policy of Free 
Trade. At once all was changed ; milb and furnaces were 
stopped, labor went be^ng, oar poorhonses were filled, the 
prices of land declined, money became scarce, and interest 
high; the rich, who held mortgagee, became richer, and the 
poor and those who were in debt, were mined. At that 
time, the American farmer had no foreign or home market 
for the surplus product of the country. Complaints grew 
and increased, until things grew so bad, that in 1S28, our 
Gk>vemment found it necessary to adopt what I call a true 
American system— e system of Free Trade — a trade, that 
extended to all parts of our own country in all articles, that 
are the product of our own soil or of American labor. By 
this system, duties were laid on imports, which soon gave 
new life and energy to the trade and busiueas of the coan- 


try. The public debt was soon paid off and prosperity 
became univereal. 

By degi-ees, between 1834 sod 1842, the tai-iff was again 
i-cpealed. The mills were again stopped, furnaces closed, 
lands fell to half-price, the sheriff at work, States repudia- 
ting their debts, the Treasury anable to borrow at home or 
abroad, and bankrnpt laws were passed by Congress. In 
1842, the true American system was again tried ; and in 
less tlian live years the production of iron alone rose from 
200,000 tons to 800,000 tons. Prosperity was ag^n nnivei^ 
sal ; mines were opened, mills were built^ money plenty and 
the public and private revenues greater than ever. Once 
more, in 1846, the British policy of Free Trade was adopted 
by repealing our tariff, and, notwithstanding the discoveiy 
of gold in California, money was as high as ever, British 
iron came in and gold went out. In 1857, the culmination 
was reached and a crisis came on. The Treasury was 
again nearly bankrupt In three years, emigration fell be- 
low the point of twenty-eight years before, and our own 
ezporte fell off to a mere notliing. ,Such liave been the ef- 
fects of yielding to a policy recommended by men and 
nations, having interests to serve, that are at war with all 
the best interests of our own country. 

A war of commercial interetta is not peculiar to England 
alone. It has been the habit of all trading nations since 
*' naught said the buyer." They will all continue to buy 
in the cheapest market and sell in the dearest, as long as 
men do not love their neighbors as they do themselveB. 
Tliere are thcfusanda of those, now engaged in foreign trade, 
whose fortunes depend on filling the country with foreign 
goods. There are other thousands, holders of mortgages, 
who hope to buy in tlie property for the face of their mort- 
gages, or for half its present value. And that they wiU do, 
as soon as they can induce our Oovemment to try another 
experiment, in what ikey call freo trade. The policy of 
these persons, who are all clamorons for free trade, would 
deprive millions of men of their means of living bymechaii- 


ical employmeats, and drive them into competition witli 
the farming and agiicultural iutereats of the country, mak- 
ing the mecKa/nica competitors of the farmers ; instead of 
conauming, as they now do, ten times ae much of the agri- 
tmUural prodv^a of the country aa ia now sold in all Eu- 
rope. Moreover, by stich a policy money-holders can obtain 
the neceaaariea of life and aervante at less coat. 

It would be as unwise for our country in time of war to 
govern the movements of armies by the advice of our 
enemy, as it wonld be for our Government to allow our na- 
tional policy to be controlled by the advice of the trading 
nations of Europe, who will always consult their own intei> 
ests, entirely independent of any interests of oure. It is 
well to remember, that nothing can be purchased cheap of 
foreign countries, that mnet be bonght at the expense of 
leaving owr oton laior unemployed, arid our own good raw 
materiala unused. I advocate the cause of our manufac- 
turing interests, because they secure to the farmer his sur- 
est and best market for the agricultural product of the 
country, and because experience has demonstrated the fact, 
that the surest way to maintain our independence, and 
cheapen goods to the consumer, ia to foster the home pro- 
ductions of our couiitry,and give diversified employment to 
our people. I advocate an American system, because I de- 
sire the political power and the financial honor of the nation 
to be maintained and vindicated before the world. This 
can be most effectually accomplished by making ourselves 
independent, as far as our own soil, climate and good raw 
materials will enable us to producethe articles we need; 
and this they do with as small an expense of labor as it would 
reqnu-e to produce the same articles in any other part of 
the world. I advocate a policy, that will maintain the 
National Government and pay the nation's debt out of 
duties on imports. The heaviest duties should be laid on 
all articles of luxury, and the lightest duties on all articles, 
that will aid in securing a diversified employment to our 


370 TAEIFP. 

There is notliing else our Governmont ean do, that wiH 
BO effeytually stimulate and develop all the best enetgies of 
a free people, as will the adoption of a Jusi, uniform and 
unyielding system of money. It is greatly to be regretted, 
that onr Goreniinent failed in its very commencement to 
perform the most important duty, enjoined by the Consti- 
tntion. The; shoald never have allowed the individual 
States to isBiie paper mcsiev, that ukm to all intents bUls of 
credit. It has been the inflation of paper money, that has 
so i-aiaed the price of all property and labor, th^ we now 
tempt the world to sell ns everything, and we have made 
everything with ns too dear to sell with profit in return. 
Free Trade with foreign natioita must, where all things 
have been made nnequal by the nse of paper money, prove 
in the futnre, as it has in the past, a delnsion and a snare. 
It mast in the future, as it has in the past, bring panic, 
pressure and ruin to untold thousands made bankmpt by 
the change of value of all kinds of property. This most 
be the reenlt of leaving our own labor nnemployed and onr 
own good raw materials nntised. The high price of l^x>r 
and of all the products of labor, has made a tariff of duties 
on imports absolutely indisponsable to enable the Gk>Tem- 
inent to pay the National Debt The duties must eqnal in 
amount the full extent of the increase in the price of prop- 
erty and labor by the nse and inflation of paper money. 
Washington declared a fact, when he said that " In exact 
proportion as we either alloy the precious metals, or pour 
paper money into (he volume of the ciroulating medium, 
Justin that proportion will everything in a country rise, 
and labor will bo the last that will feel it. It will not 
benefit the farmer or the mechanic, as it will only enable 
the debtor to pay his debt with a shadow instead of a 



LsTTTEK TO Jackbon ShultZj Esq. 

New Tobk, November, 1B74. 
Jaoeson S. Settltz, Esq., 

Mr DoAS Snt — I am glad to know, that yon approve of 
my efforts to fiiid out, Iiow and where we have drifted finan- 
cially as a nation ; and as far as possible to show, how a 
wisely and well arranged revenue tariff has been made in- 
dispensable, 89 the only efficient remedy for the paralyzed 
condition of the trade and commerce of our conntry. 

I agree with you most heartily in the belief, that a tariff 
shonld be strictly for revenne, and should be raised by spe- 
cific dnties, and from the smallest number of articles, that 
will yield an amonnt sufficient to enable the people to pay 
their town, city, Sc«te and National debts. 

1 well recollect the effects of all the tariffs, that have been 
passed by onr Oovemment. The first one soon enabled the 
Government to pay off all the old National debt Its repeal 
shrunk the valnes of all property and labor, and brought 
on the country a widespread ruin, frightful to contemplate. 
Tliis state of things continued, antU the Government was 
compelled as its only means of relief to adopt another 
tariff, that soun brought the countiy into a coudition of 
prosperity greater than ever, 

The history of one tariff has been the history of all that 
have been enacted — their repeal has brought ruin and their 
reenactment has brought prosperity. 

The advant^es of a revenne tariff have resulted from 
the stimulus it gives to all the industries of the country and 
the restraint it exerts upon the extravagant use of the fab- 
rics of other countries. This was the besetting sin of oar 
people under the old colonial system, when, as Doctor 
Franklin says, " the American people, under the colo- 
nial Government, were bo immoderately fond of (Jie manu* 
factaree and superfluities of foreign countries, that they 
could not be restrained from purchasing them." 

The advice of Bonamy Price may be adopted by our 


372 TARIFF. 

people with great advantage. lie adviseB that we, as a 
people, shonld produce more and conBnme less. To bring 
this abont it will reqnire a course of action by the General 
Government, calculated to reinvigorate the paralyzed in- 
duatriea of our country. As one means to promote indus- 
try, it may be well for our Government to consider, whether 
an export bounty on agricaltoral and manufacturing pro- 
ducts would not enable our farmers to place tlieir produce 
to better advantage in foreign markets, and tbns make it 
the interest of our people to act in accordance with tbe ad- 
vice of Sir Robert Peel to his countrymen, when he eaya ; 
" Buy of yourselves and sell to yourselves." The savings 
of a nation will be found iu the quantity, that it produces 
in comparison with that which it consumes. 

Importers and dealers in foreign products will find it for 
their interest to advocate measures, that will stimulate in- 
dustry as the best means to bi-ing about a healthy trade, in- 
stead of killing the goose, that lays the golden egg. 

The common fallauy, that greenbacks depreciated in 
value, as gold appreciated, is now annihilated by the pres- 
ent decline of gold, while the amount of outstanding green- 
backs has been increased by a small amount. It was the 
large issues of paper money, loaned on deposits, that caused 
tbe rise and speculation in gold, as it became an article of 
commerce. As the speculation in gold enbeided tlie price 
returned to ita normal value. 

I believe, that I have shown beyond all controversy in 
ray late article, published in the Tributie of this city, that 
the United States were bonnd, from the day the Constitu- 
tion was adopted, to take and hold the entire control of 
all, that has ever been allowed to circulate as money, — 
as none is legal without the stamp of the Government npon 

I have shown, that the General Government has not only 
failed to prevent the local banks from issuing bills of credit 
in the form of pictures, called money, but it has failed to 
furnish what Thomas Jefferson said ought to have been for- 


nished, namely " Treaenry Notes." based on the credit of 
the United States, and in an amount equal to the amount 
of gold and silver, that would circulate if there was no such 
thing as paper money allowed. Such a ■currency should 
only increase as per capita with the inhabitants of the coun- 
try, and would carry with it all the credit, that our Govern- 
ment eould give it. And being a legal tender in payment 
of all debts to the Government and individuals, and for 
duties on imports, by simply adding an amount in currency, 
that will make it equal to the average price, which gold had 
borne during the mouth preceding the demand for pay- 
ment, or the maturing of the contract. This would be a 
paper money, suited to all tlie bnainees of the country, and 
would be far more valuable than gold for ordinary business 
purposes, for the reason that it would not be constantly 
changing in volume, as gold and silver will by the oper- 
ations of foreign trade. 

Paper money is said to have been more valuable tlian 
gold for some five hundred years in the city of Venice. 
The people found, that they could well afford to pay the 
State for taking care of their gold, while a bill in evidence 
of their ownership of gold was passing freely in all the 
business operations of the country, thus showing what Prof. 
Bonaray Price said of money is true, namely, that Mouej is 
a tool for the convenient exchange of one form of labor for 
another. Our nation will show its wisdom by continuing 
to use a tool, which our experience has shown to be the 
best for the convenient exchange of all forms of labor, that 
was ever invented by the ingenuity of man. I mean a legal 
tender paper money, issued, as it was, by the people's Gov- 
'emment to save for the people the nation's life. It has 
done its work nobly and should be embalmed in the hearts 
of onr people, as one of the greatest blessings, developed 
by the terrible war through which we have passed. It 
should have been issued from the first as a war measure, 
that makes every dollar expended a valid claim upon the 
whole property of the country for its final payment. Our 


874 TAEIFP. 

nation's credit shonld avail towarde paying the nation'a 
debts, instead of beiag loaned out without interest. 

As mercbanta, farmers and mechanics, it bohooveB us to 
know, that a nation, continuing to spend more than it pro- 
duces, is clearly on the road to ruin. 

It la well for ns to know, that in 1873 we imported |119,' 
656,288 mora than we exported. In 1872 we bronght mer- 
chandise from abroad amounting to $610,904,623, and 
exported $428,487,131, more than 182 millions deficit. 
This shows where we must land, if we continue to bnj 
foreign manufactured articles in greater amount than the 
exports of our country. We have got to learn to do as Sir 
Robert Peel says to his people : " Buy of yourselves and 
sell to yourselves " and give employment to our own people. 

There is one power in our country, that can do more to 
restore confidence and general prosperity than any other, 
with which I am acquainted ; — I mean the power of the 
various working men's organizations of our country. 

I claim to have been a working man through a long, la- 
borious, medianical life, with all my sympathies enlisted in 
efforts, intended to elevate and better their condition. 

In view of the Bufferings of so large a number, I ask my- 
self why ia it, that so many, who are all as anjtiously desir- 
ing happiness as I or any one can do, are now suffering 
all forms of poverty and want, and that in a country, where 
God has spread out broad fields, ever ready to yield all 
that is good for food, pleasant to the eye, and calculated to 
make ns wise i 

I would most gladly, if I could, show my fellow working 
men the great mistake in their organized efforts to force 
their employers to pay as mnch for a poor workman as for 
a good workmau : — ^And by their laws they deprive their 
own children from learning trades, that would make them 
in the future useful citizens of the Kepublic. All the re- 
Rtraints, that prevent the members from working for the 
mnet they can get, and as many hours as they choose, are a 
self -imposed slavery. These restraints and the taxes they 


]evy OD their different orders to maintain strikes, have done 
as much to break np ihe regnlar bueiuees of tlie country, 
and drive commerce away from oar own city as any ono 
thing, with which I am acquainted. 

I should have regarded it as a terrible hardship, if I had 
found myself compelled to contribute out of my twelve 
shillings per day to maintain strikes, that would have pre- 
vented me from getting into a business, that has given me 
a house and home with the ordinary comforts, antil I have 
now nearly reached my eighty-fourth year. 

If working men will be advised by a friend, they will 
declare their independence of all these organizations, and 
B£sociate themselvea in bnsiness with such capital and 
friends as they can find, and take aU the profits to them> 

Such an independence will command for working men 
the heartfelt sympathy and respect of the best men of our 
country and the world, and will, 1 hope, induce many to 
put forth e£Eorte to promote the substantial interests of 
working men, by acts and deeds, that will leave an influ- 
ence, when this hand, that now writes, shall have mouldered 
to the dust, and these eyes, that now see will look down 
from a brighter and a better world on a continued stream 
of beneficent influences, flowing out and on, from every 
good word and work. 

Very respectfully yours, 

Pettsb Coopbb. 

Open XiEttbs. 

Auoun-, 1883. 
To THE Hon. PBEsroENT AND Gehtleuek of the Taeifp 
Commission : 
The most profound anxiety for the welfare of this great 
and glorious country impels me to offer some thoughts on 
what I regard as one of the most important subjects, that 
can be presented to the American people. My experience 
has compelled me to see and know, that all trade witli for- 


376 TARIFF. 

eign nations is a kind of commereial toarf it is a war of 
interesta — as the men of all countries are trying to buy ae 
cheap and sell as dear as they can ; this they do by the use 
of &J1 the arts, both fair and foul, that human ingenuity 
can invent. There is nothing comparable with the evils, 
that have resnlted, and may result, from a war qf commerce. 
Invasion of armies is attended by 'waste of property, de- 
struction of life, and suspension of all fair exchanges of the 
products of labor ; but with the return of peace, all is as it 
was before. Sucli, however, is not the case with the sub- 
stitution of foreign trade for the home commerce of the 
prodnete of our own land and our own labor. ■ 

Under the artful and alluring fascinatioDs of the powers 
of foi-eign trade associations for mutual benefit, patriotism 
dies out, intellect declines, and the life-blood of a nation 
slowly ebbs away, rendeiing recovery difficult, and closing 
finally with the material and moral death of a nation. 

The grfeat boon, provided for as by the Dedaration of 
Independence, with its Constitution and its code of laws, 
was, that Congress shall have power to make all laws, which 
shall be necessary and proper, to levy taxes, duties, imposts 
and excises, to pay the debts and provide for the common 
defence and the general welfare of these United States. 

To accomplish these objects, the Constitution binds every 
member of the Government, under the solemnity of his 
oath of office, to make their every legislative act an intent 
to establifib justice by the organization and execution of 
all laws, which shall be necessary and proper to provide a 
shield of protection for the lives, liberty and happiness of 
the American people. This can only be accomplished by 
adopting a just balance in a true system of money, weights, 
and measures, by which justice can be most conveniently 
established in the operations of trade with foreign nations 
and among the several States. 

Our Constitution was intended to use thi strength and 
power of the nation, in giving protection to all the rights 
and interests in all and every form, in which labor can be 


TARIFF. 377 

applied to promote the highest welfare of the American 
people. Daniel Webster haa declared what all must see 
and know to be tme, and in words of warning, as well as to 
what onr Government is bonnd to do, in order to secure the 
rewards of honest labor to the heads and hands, that earned 
them. He says : 

" The producing cause of all prosperity is labor 1 labor! I 
labor ! ! I The Gtovemment was made to protect this in- 
dustry, and to give it both encouragement and security. To 
this very end, with this precise object in view, power was 
given to Congress over the money of the country." 

He predicted that conditions, which permitted the rapid 
accumulation of property in the hands of a few, remitting 
the masses to poverty, would soon destroy free institutions. 

The e^cperienee of a long life made me see and know, 
how utterly impossible it is for the American people to buy 
anything cheap from a foreign country, that most he bought 
at the expense of leavihq ocb good baw materials ch- 


The advocates of free trade seem to be perfectly regard- 
less of the wants of those millions of men and women 
throQghont our country, who have nothing to sell but their 
labor ; those millions, having been in the main reduced to 
this condition of poverty and want by a coiu-se of financial 
legislation so nnwise and so onjust, that John Sherman, 
when a Senator, declared that it was without a parallel in 
ancient or modem times. In his speech on that occasion 
he said: 

" That every citizen of the United States had conformed 
his })Tisines8 to the legal tender clause." 

His whole speech at that time went to show, that the 
legal money, which the Government had paid out in fall 


378 TARIFF. 

settlement for all the forma of labor and propertj, had been 
actaally need and consumed in the proBecntion of our late 
terrible war for the nation's life. Senator Sherman was 
right when he declared, that the nation's cmrencj conld not 
be contracted withont bringing min to the debtor and the 
laboring classes throughout our country. 

This crael and nnwise contraction of the nation's cor- 
rency has, in connection with repeated alterations in .onr 
Umff laws, broken np the manufacturing busineEB of then- 
eands throughout onr country, and has shown, that a ta^^ 
of duties should be based on principles, that will give secur- 
ity and stabOity in the manufacture of alt articles, that can 
be made oat of our own good raw materials, and can be put 
in forms of -usefolness in our country, with as small an 
amount of human labor in this country, as in any other part 
of the world. 

This being an incontrovertible fact, there is no good rea- 
son, why those great manufacturing interests of our own 
country should be periodically ruined, as they have so often 
been, by repeated alterations of tariffs. These alterations 
have been most successfoUy engineered through our Con- 
gress by the consummate skill of foreign diplomats, co- 
operating as they do with the great manufacturing and 
mercantile intereste of our own and other countries, which 
can well afford to spend millions to break up and keep down 
the rising manufactures of this great and growing country. 

History shows, that England gave the strongest kind of 
protection to her manufacturing interests, until they had 
attained to such a degree of power and perfection of liia- 
chineiy, that enabled the English, with the help of restrain- 
ing laws, which their Govtrtnment had passed to prevent 
their colonies from manu&cturing anything for themselves, 
etc. . . . 

All classes should gather wisdom by reflecting on the his- 
tory and the experience of the past. 

Free trade is beautiful in theory, and will be in prac- 
tice, where all things are equal and peaceEul in the rela- 


TAKIFF. 870 

tioDS of natione, and rapid tranBit Bball go far to annihilate 

Onr Government, having allowed and nsed paper money, 
nntil the day'B labor has been made to cost at least two- 
thirds more than a similar day's labor would coet in other 
coantries, to bring about an equality in trade, will require a 
tariff based on the difference in the cost, that will pnrcbaee 
a day's labor in our coimtry as compared with that of for- 
eign countries. 

If the farmers desire to secure for themselves a reliable 
market and the highest price for their product, they must 
use the means best calculated to effect that object — they 
most encourage the manufacture of the articles they con- 
sume, and have Uiem made as near their homes as possible, 
etc . . . 

After all I have read, written, and published to the world 
on the all-important subject of a tariff, I come to the con- 
clusion, that it should give full and complete protection to 
what Daniel Webster calls the producing cause of all pros- 
perity, which he says is " labor 1 labor 1 1 labor 111" 

This can only be accomplished by an amount of duties, 
that shall equal the difference between the cost of a day's 
labor in our country, as compared with the cost of a similar 
day's labor in other countries. 

The difference, when carefully examined, will be found 
to he on an average, in this country, of from fifty to one 
hundred and fifty per cent, more, than what is now heing 
paid for similar labor in other countries. 

It will thus be seen, that justice cannot be established — 
and the general welfare of the American people be secure, 
except by the manufactnre of WA those articles, which are 
absolutely necessary for our consumption as a free and inde- 
pendent nation. Duties on all the most necessary and es- 
sential articles of industry, which our Government was 
made to protect, encourage, and secure, should be as nearly 
prohibitory as possible. An amount of duties should be 
collected itora the smallest nomber of articles, that will fnr- 


niflh an amonnt Bofficient to pay the expenses of the general 
goveiTiment of oar country. This would relievo our people 
from all internal taxation for the support of our national 

Mr. Bonamy Price, in his book qo political economy, 
qnotes from Hon. Ward, M.P., where he says, that 99 per 
cent, of the communications on the tariff represent individ- 
ual interests, and demand protection for articles they pro- 
duce. Mr. "Ward, Bonamy Price and all the advocates of 
unqualified free trade, base their argnmenta on a false foun- 
dation ; they fail to see, that our Government has allowed 
local banks to issue pictures or bills of credit, called money, 
in open violation of the Constitution, which delegates only 
to Congress the power of coining money and regulating the 
value thereof ; also of regulating commerce between the 
United States and foreign countries.' 

Our Government, having neglected from its commence- 
ment to make necessary and proper laws to iesne a etrictly 
national currency, based on the whole property of the coun- 
try, and to establish a tariff only to raise a revenue sufB- 
cient to pay the national debt — should even now begin to 
assert that power and carry it oat to the letter ; for it is yet 
time to do right, correct erroi-s and secure full and complete 
protection to the useful indnstries and labor, now employed 
in all the important manufacturing interests of our country ; 
bat there seems to be little hope of establishing justice, 
when our late Congress authorized the collection and accu- 
mulation of $150,000,000, which they tried very hard to 
squander without much thought of appropriating any and 
all sniplns towards paying our enormous debt, which would, 
not only relieve taxpayers "and producers, but the toiling 

History could probably not show such another accnroula- 
tion of revenue in any other country, ancient or modem, 
monarchy or republic, and any nation or people, that allows 
it, is on the high road to coiruption and ruin. 

I indulge the hope, that you. Honorable Commissioners, 


will read with care my humble efforts to call and pin the 
attention of your Honorable Body on the absolute necesaity 
there is, that the great and all-important questions of a 
naiMndl tariff, and of a strictly natioTial paper emreney 
must be settled in the interest of the mass of the American 
people, and not as they are now, in favor of monopolies of 
all kinds, especially bank's and railroads. 

Most respectfully yours, 

Peteb Coopek. 

The attention of your Honorable Committee is respectfully 
called to a few facts and iigures in relation to the exports 
and imports of merchandise, and of gold and silver coin and 
bullion, during the last twenty-three years, and the inflnenre 
our foreign commerce has on the volume of currency, and the 
relation of that volume to the iudustriea of the country. 
These facts and figures should convince every intelligent 
man, that to disturb onr present tariff, especially in the way 
of rednctiona of duties on foreign imports, will be attended 
with great danger to the business prosperity of our own 

From the preliminary report of the Chief of the Bureau 
of Statistics, pnblifihed in the Bankers Magazine for Sep- 
tember, we obtain some important facte in relation to the 
value of gold and silver coin and bullion, imported into, and 
exported from, the United States from the year 1860 to 
1882, inclusive ; also, of the excess of imports over exports. 
" The total exports of coin duringt his period was $932,226,- 
125, and the total imports only $183,608,572. 

During this period the exports of coin and bullion ex- 
ceeded the imports for twenty years, and the imports ex- 
ceeded the exports only for three years, and the total amount 
of exports of gold and silver coin and bullion over the im- 
ports in twenty-three years was $749,617,553. 

During this entire period we have been nnder a high 
tariff, and a portion of the time a war tariff at that If we 
have lost $719,617,553 of gold and silver coin and bollion, 


882 TABIFF. 

which constitttteB the base of Y)nr currency tinder a high 
tariff, what would have been onr loss had we been under s 
ejBtem of free trade, or even with any great reduction in 
our present rates of duties on foreign imports. 

We learn, also, from this report, that in the year ISSl the 
total exports of the country were $902,377,346, and the im- 
ports were $642,664,628, and the excess of exports over im- 
ports were $260,712,718 ; but, in 1882, the total exports 
were only $750,351,173, and the total imports were $724,- 
623,317, leaving the excess of exports over imports only 

From these figures it will bo seen, that the increase in 
onr imports dnring the past year has been $91,958,689, or 
12.7 per cent. ; and that there has been a falling off in our 
exports in the year 1882, amounting to $132,026,173, over 
those of 1881, an actual change in the balance of trade of 

Kow, if snch an cnorraons change is taking place in one 
year, under a system of what may be called a high tariff, 
what, may I ask, would be the result, if an efFort was made 
to rednce the rates of duties ! 

The report of the Chief of Bnrean of Statistics also in- 
forms us, that out of $91,958,689 of increase in imports 
dnring Uie past year $69,809,869 were dutiable articles, and 
the balance on articles admitted free of duty. 

From the above table, in relation to the exports and im- 
ports of gold and silver coin and bullion, it, will be seen, tliat 
in the fiscal year ending in 1882, the exports over imports 
were $6,940,186. You will also observe from the foregoing 
table that, in 1881, the excess of imports over exports of 
coin was $91,168,650. This shows, that in ISSl we had 
coming into the country a balance of over $91,000,000 of 
gold and silver coin and bullion, while in 1882 we have had 
$6,940,186 going ont of the country. 

Your Honorable Committee must be aware of tiie disas- 
trons influence upon the business industries of ovi country, 
that a reduction of the volume of our currency always pro- 


duces. To contract the currency altfays tends to ehrink 
prices. K ;ou take away the gold and silver coin and bul- 
lion, you take sway the foundation, upon which all other 
currency resta. 

We have over $700,000,000 of paper enrrency, that ia 
practically redeemable in coin. If any great amount of this 
coin Ib taken out of the country, will it not endanger the 
ability of the Oovemroent and the banks to redeem this 
currency in coin, and be likely to precipitate a financial 
panic i 

These facte should make yonr Honorable Committee hes- 
itate long before you make any alteration whatever in our 
present eystem of tariff. 

Some additional information, concerning the tariff, es- 
pecially Franklin's letter to Humphrey Marshall, will not be 
out of place here : 

LoNDOn, April 22, 17T1. 

Sm: — I duly received your favors of the 4th of October 
and the 17th of November. It gave me pleasure to hear, 
that tho' the merchants had departed from their agreement 
of Non-Importation, the Spirit of Induetiy and Fmgality 
was likely to continue among the People. I am obliged to 
you for yonr concern on my account. The letters yon men- 
tion gave great oSence here ; bnt that was not attended with 
the immediate ill-consequences to my Interest, that seem to 
have been hoped for by those, that sent copies of them 

If onr Country People would well consider, that all they 
save in refusing to purchase foreign Clewgaws, and in makiog 
their own apparel being apply'd to the Improvement of their 
Plantations, would render those more profitable as yielding 
a greater Prodnce, I should hope tliey would peraist reso- 
lutely in their present commendable Industry and Frugality. 
And there is still a farther consideration. 

The colonies, that produce Provisions, grow very fast. 
But of the countries, that take off those FrovisiouB, some do 


Dot increaee at all, as the European nations and others, ae 
the West India Ck)lonies, not in the same proportion. So 
' that tho' the Demand at present may be sufficient, it cannot 
long continne bo. Every manufactnrer, encouraged in our 
Country, makes part of a market for Proyisiona within our- 
selves and saves so much money to the Country as must 
otherwise be exported to pay lor the manufactures he sup- 
plies. Here in England it is well known and understood, 
that wherever a manufacture is established, which employe 
a number of Hands, it raises the valne of Lands in the 
neighboring Country all around it : partly by the greater de- 
mand, near at hand for the Produce of the Land, and partly 
from the Plenty of money, drawn by the manufacturers to 
that part of the Country. It seems, therefore, the Interest 
of all our Farmers and owners of Land to encoarage our 
young manufacturers in preference to foreign ones, imported 
among us from distant coim tries. 

I am much obliged by your kind Present of curious seeds. 
They were Velcome gifts to some of my Friends. I send 
you herewith some of the new Barley, lately introduced into 
this country and now highly spoken of. I wish it may be 
found of use with us. 

I was the more pleased to see in your Letter the Improve- 
ment of our Paper, having had a principal share in estab- 
lishing that manufacture among us many years ago, by the 
encouragement I gave it. 

If in anything I can serve you here, it will be a Pleasure to 
Tour obliged Friend and humble Servant, 

B. Frankldt.* 
To Mb. Humphset Marshall, 

"West Bradford, Chester County. 

I quote the following letter and statistics to show how 
certain industries would increase and prosper, if carefnlly 

* I own the original nannaoript of this letter and consider it a precious 
relio. It Blkows tlie Amerioan Saga in favor of a protective tariff and home 


TABITF. 385 

encouraged and protected b>' s judidauely diaonminative 

flax, hemp, jute, etc. am opeh letteb to general 


" 163 Walworth Strebt, 
Broosltn, N. ¥., lltli September, 18T5. 

"Genebal Jaheb a. Gabfield; 

Sir, — In your speech at Warren, Ohio, ae reported in the 
New York 'World of the 4th inst^ you endorsed Senator 
Thnrmau's statement of December last, that ' over produc- 
tion was one of the causes of the panic of 1873.' 

We respectively submit, that the reverse of this was the 
case, and that the cause was mainly from under, not over 
production 1 

In support of this it is advanced, that last year under pro- 
duction caused the United States to import two hundred and 
seventy-one million dollars of flax, Lemp, jute, ramie, silk, 
sugar, etc., viz. : 


Flax, hemp, iute (and their manufactures). . .■- $30,000,000 

Eamie and silk (and their manufactures) 25,000,000 

Cotton (its manufactures) 25,000,000 

Leather (and its manufactures) 27,000,000 

Wool (and ita maonfactiires) 59,000,000 

Sugar (and ita manufacturea) 93,000,000 

Tobacco, rice, etc 12,000,000 

Total imports (gold) $271,000,000 

From foregoing it is obvions that, daring past twenty 
years, under production caused the United States to import 
over five billion dollars of above products, or more than 
double the public debt fund, which on July 1, 1875, was 

Manifestly, our security lies in rescuing these products 
from the foreigner's grasp ; that this is practicable is evident 
from what has been accomplished in wheat 


386 TAKIFF. 

During twenty years ended 1874, America more tlian 
doxibled its wheat exports to England (riaing from 27 per 
cent, to 58 per cent,), whilst KuBsia decreased more than oue- 
lialf (falling from 23 per cent to 11 per cent.). 

The introdoction in 1855 of reapers, etc, was invaluable 
in enabling America to become the chief wheat-raising 
country in the world. 

We submit, that a similar application of improved mechan- 
ics will enable America to export, instead of import, fiaz, 
hemp, jate, etc. 

WeyiiJiher Bubjnit, thai a sure way to this desiraile end 
lies in a safe Oovemment greer^ack currency, as reoomr 
nieiided hy the Hon. Peter Cooper in his LeUer on the Vur- 
vdnoy, to wit : 

That in the future we must put the whole power of coining 
money or issuing coiTenc^ where, as Jefferson says, by the 
Constitution it properly belongs, ' entirely in the hands of 
the Government;' that this cmrency must be convertible 
into Government interest-bearing bonds, over which the 
(iovernment has entire control; that the said greenbackB 
nliould be full legal tenders, and that the use of gold or other 
merchandise as money is a barbarism nnworthy of the age, 

" In the earlier ages gold was adopted to ^ve assumed value 
to bank or government promissory notes. "We submit, that 
greenbacks issued and controlled by the United States Gov- 
erument, backed by the labor and intelligence of forty mil- 
lions of people and four hundred million acres of the finest 
land under heaven, would be amply secured, superior to 
existing mode, satisfactory to every intelligent American; 
and hence sufficient for any other man. 

America is largely a consuming country, although poa- 
scssed of unequalled resources, that should exalt it to the 
highest position as a producing country. This safe way is 
open; will America enter upon itt 

Yours respectfully, 

Wilson Watboh." 


TAEIFF, 387 

Thus it may be seen, by the above letter, tbat it is im- 
possible for 118 to import anything cheap from foreign coun- 
triee, that must be bought at the expense of leaving our own 
good raw materials nnased, and oar own people unemployed. 


Neuj York MeroantUe Journal, March 81, 1877. 

" Ameeioa vbbsus liuesiA. 

" The figures in the following table, showing the compara* ■ 

tlve product of some of the leading staples in Kufisia and 

America, have been carefully compiled from reliable sources, 

and will repay more than a superficial study: 

iXEBici. m 1872. 

















Indian com 




IN 1872. 








" 124,753,750 







Indian corn 





In 1875 the number of acres, cnltivated in America, was 
86,863.178, and the nmqber of buflhek produced 2,032,235,- 


300, being a g&in, as compared with 1872, of 18,582,981 
acres and 369,903,700 bushels. 

These statements clearly show the superiority of Ameri- 
can me^ods of caltivation over Russian, or else of our eoil 
over theirs, or both: In 1872, 69,000,000 acres in America 
under six cereals gave 1,664,000,000 bushels, or 205,000,000 
(50@150 per cent.) more than Euseia received from double 
the acreage, 155,000,000 acres, yielding only 1,459,000,000 
bushels ! During twenty years ended 1874, America's exports 
of wheat to England were doubled, rising from 27 to 58 per 
cent, of England's whole importation, while RaBsia's de- 
creased one-half — falling from 23 to 11 per cent. In the 
game decade, America received from England 7 per cent, 
more for its wheat than Bnssia. 

Russia's strength is apparent in manufactures. In 1677 
she had only 233 mills, while in 1875 she had 85,000. In 
1875 her flax and hemp mills (principally in Poland), employ- 
ing 300,000 hands, produced 150,000,000 roubles, or $120,- • 
000,000, worth ; while America, in 1870, had 33 bagging 
mills, producing less than $3,000,000 worth. In 1875, we 
imported $25,000,000 worth of linens. Enssia spins Ameri- 
can cotton, while America spins Russian flax 1 

America's weakness is obvious in flax and hemp. In 
1870, we raised 27,000,000 pounds of flax and 1,750,000 
bushels of flax seed; while in 1872, Russia raised 542,- 
000,000 pounds of flax and 17,250,000 bushels of flax seed. 
In 1870, America raised 12,746 tons of hemp; while in 
1872, Russia raised, 967,444 tons of hemp, and 14,500,000 
bushels of hempseed. 

The best Western flax, which equals JRvsntmy brings, in ■ 
New York, $300 per ton. Wheat and com lands are good 
for flax, which is the most profitable crop raised in many 
sections. In Morrow County, Ohio, the yield, in 1875, was 
$27.08 per acre, or double the average of the wheat and 
com crops, per acre, in tlie whole country ; the latter being 
$11.77 'per acre. 

America excels Russia in wheat ; she could also surpafis 


Russia in flax and hemp, marking an important era in our 
country's production." 

Had we the Cenans Report of 1880, we could mention 
developments of home .indostriea, that would show much 
more favorably, if they were more judiciougly protected; 
bnt our late CongreBsional sesaions have been bo occupied to 
dispoae of the $150,000,000 surplus, that the ceasus must 
wait, till all the spoils were distributed, instead of applied to 
pay the nation's debt and stop the interest thereon. 

'Perhsi'pB Jlasc, Aernp, jute, etc., would thrive ae well here 
as in Russia, if tliey were properly encouraged, and the 
$25,000,000 worth of imported linens per year might be 
produced and manufactured at home. As our wheat crops 
have lately surpassed those of Russia, why should not our 
flax, hemp, barley, oats, etc., surpass those of Russia ? 
Even silk, tea and sugar, miglit be produced so as to sup- 
ply our wants ; only a judicious tariff is needed ; then 
"bring prodncers and consumers close together," as advo- 
cated by this most practical common sense article, which all 
can imderstand and appreciate ; 


" It may be deemed an axiom^ that the nearer the farmer 
and manufacturer are brought together the better it is for 
both parties. The doctrine, so often taught, that the farm- 
ers are not benefited by protective duties on foreign imports, 
is false in theory and pernicious in effect. Tlie frequent 
suggestion, that Americans should confine themselves 
more exclusively to agriculture, is either prompted by a 
dense ignorance of economic laws, or by the selfish and un- 
principled greed of foreign manufacturing interests. It is 
probably more often the iatter than the former. If the 
question of transportation is alone considered, the argu- 
ment is all on the side of protection, as affecting both parties ; 
bnt especially so ae regards the former. It is as a rule life 
or death, success or failure, whether the fanner sells hia 


wheat for $1.50 to a consamer near his home, or at $0.50 and 
eeee $1.00 absorbed by transportation and middle-men, before 
it reaches the consamer at some foreign port The farmer 
is often blinded to the fact, that the foreign manufacturer, 
having vast capital and a monopoly of bis prodnctiona, 
whether of cloths or other commo^ttes, dictates thtf price 
of the wheat and his own cloths alw. The qneetion of 
oheapness is a sjren song of the free trader, bj which the 
farmer is despoiled. No word is more sedactiTe or has 
more meanings than this word cheap. Home Tooke says : 
' The world is governed by woedb.' There is no word more 
ambiguous, or more «nre of conquering the nnwary or 
thoughtless than this word cheap. Strictly, it means cheap- 
ness in money. If an wiicle brings but little money, it is 
called cheap. Cheapness is often produced by low wages of 
labor. Shirts, for instance, are made by poor needle women 
at 25 cents per dozen. But what becomes of the needle 
woman, who makes the shirts i Cheapness to her is a 
mockery, for she has no money with which to buy the ne- 
cessities of existence. She is left to starvation and naked- 
ness. When Dr. Johnson was told, that eggs were so cheap 
on the Islands, that many could be bought for a penny, he 
said : ' It is not that eggs are so plenty, but pennies are 

Under a system of free trade, Hevenve TariJ', so-called, 
which kills the manufacturer at the farmer's door, deetroye 
his home market and reduces the wages of labor to starva- 
tion prices, becomes a curse. Cheapness, in this case, proves 
to be ruin. The short-sighted farmer, who has been misled 
to vote iatfree irade, for fear of helping his maimfacturing 
neighbor, goes for years without a new suit, and the pro- 
ducts of his farm are absorbed by the non-producing ear- 
riei'B and middlemen between his gates and a foreign port, 
thousands of miles iCwaj. Why are the Southern States 
becoming more prosperous since tiie war in many respects ? 
Simply, because extensive manufactures of various branches 
are springing up. This change create a uome market for 


the farmer through tiie lai^ly increaeed meana of consnmp- 
tion, and a Tei7 lai^ item is saved to the real producers, 
the farmer and mannfactm^r alike, in the saving of trans- 
portation. The less distance products of any kind are 
carried, the better it is for the consumer, who finally pays 
for everything. Therefore, if farmers will but study tliia 
questioa in the light of common sense, and in their neigh- 
bors' best pecuniary and social interests, as well as their 
own, they will sorely never champion a system of free trade, 
nor even a lievenue Tkriff. Follow Henry C. Carey, and 
onr own first and best friend, Hon. Feter Cooper on this 
question, and yon will not be far wrong." 

This might be done at the South, where growers and 
manufacturers of coUon, sugar, silk, ^., could be brought 
"close together ;" it might also be done at the West, where 
growers and manafactnrere of wool, Sax, hemp, eta, might 
be bronght " dose together" so that growers and mannfac* 
tnrers could benefit each other, as well as the growers of 
cattle, vegetables and grain. Let such common sense politi- 
cal economy be taught and prevail over this vast young 
country, instead of Adam Smith's, Kalthus', Mill's, Say's 
systems ; and let it be called " Science of Good Government^'' 
instead of Political Economy, which has been a tissue of 
vague theories, that might apply to small manufacturing 
countries like England, France, ^N'etherlands, etc., either of 
which hardly equals New York State in extept. 

When those authors wrote their books, they had no idea 
of these facte ; neither have those writers, who now imitate 
their plausible speculations. It should be remembered, that 
we have entire free tradA aU, over this vast Republic, ex- 
tending from the Atlantic to the Pacific and from Texas to 
Alaska, and numbering about as many square miles as 

I have lately been reading J. B. Dizwell's " Premises of 
Free Trade" and Henry George's "Progress and Poverty." 
I fun glad these two American authors do not ape the Eng- 


lish and French political economiste : Adsm Smith, Mal- 
thufl, Mill, Professor Cairaes ; Say, Bastiat, LdTeleye, Mon- 
gredieD, etc. . . . 

Dixwell tells db, p. 35 : " Volumes could be filled with 
examples of the errors, committed by economists of the 
English school in their dednctive reasonmg," etc. . . . 
Page 31, he eaye: "A large proportion of American cod- 
verta to free trade became bo really through inflnences, 
which are quite natural and amiable, but which are per- 
fectly innocent of It^c, A vast host of wealthy and culti- 
vated persons every. year visit Great Britain, where they 
find almost every man, woman and child a fr6e trade mis- 
eionary, ready to tenderly infinence and instruct their less 
fortunate cousins from the western side of the Atlantic,'* 
etc. . . . Page 32, he observes; "Mr. David A. Wells, 
since his conversion to free trade, during a visit to England, 
becomes a hater of all tariffs," etc, . . . Page 23: 
" Professor Caimes unfortunately based the main portion 
of his argument upon the statistical deductions of Mr. 
David A. Welis. The Profeesor probably did not know 
how roughly these had been handled in Congress," etc. 
. . . Again, page 31, Dixwell states : " Bastiat's *' Soph- 
isms of Protection " were translated for tlie iuBtrcetion of 
the American public under the auspices of " The American 
Free Trade League," etc. . . . Dixwell gives the French 
political economists credit for entertaining their readers by 
their wit and vivacity, if they do not instmct them. 

Henry George's able work sets people thinking on social 
questions. According to him dangers to free institutions 
residt from the inequalities of the distribution of wealth ; 
in this it seems to be antimonopoly. After examining the 
Malthasian theory he tells us, p. 134: "That theory is ut- 
terly inconsistent with the facts. It is really a gratuitous 
attribution to the laws of God, eta . . , For we have 
yet to find what does produce poverty amid advancing 
wealth." Critics accuse him of communism, because he 
does not seem to endorse property in land. I consider his 


book a powerful plea for reform of some kind. It opens a 
new era for a more practical common sense political econ- 
omy. Perhaps George and Dixwell will read my experi- 
ence in the currency and tariff, and aid in establishing a 
Science of Good Government, based on a strictly national 
currency, a protective tariff and a wise civil service. 

While they were printing the last pages of the book, I 
was preparing this short address, to be delivered February 
1, 1883, at the Meeting of " 77ie New York Aaaoeiaiion 
for the J^rotedion of American Indust/n/," in the lai^ 
Hall of Cooper Institute. As it may be my last public ad- 
dress, I add it here;* 

" We have assembled, my friends, to call your attention 
to one of the most important subjects, that can now claim 
the care of the American people. The advocates of free 
trade with foreign nations are trying to persuade our Gov- 
ernment and people, thatit is for our interest to bny from 
other countries all the luxuries they have to offer. 

" These advocates of free trade propose, that onr own 
mechanics shall either work at the Btarvation prices of the 
foreign laborers, or be forced to abandon their trades and 
become competitors with the agriculturists of the country. 

" If we desire to bring npon our whole Nation a fate 
similar to that, which has fallen to the lot of Ireland, Tur- 
key, Mexico, and Hindostan, it is only necessary to arrange 
our tariff in a way, that will induce the people to have all 
their manufacturing done in foreign countries, and pay for 
it with the raw materials of our own. Such a policy will, 
if I am not mistaken, secure for our Union of States as 
rapid a decline and fall as that, which fell to the lot of 
Spain, when the Moors, her principal manufacturers, were 
driven out of the country. Such a policy might gratify our 
thirst for all the dearly bought follies and fashions of Euro- 
pean life ; but it would bring ruin and WTctchedness npon 

* Hi. Oooper died April 4, 1888. 


hundreds of tbonsande of the mechanics of onr country, 
who have nothing to sell but their labor. 

" To break up this diversilied employment of bo vast a 
number by a change of tariff, and then expect them to find 
for themselves other meaos of living, ia about as reasonable 
sa it was for Pharaoh to expect the Israelites to make bricks 
without straw." 

Fetek Coofeh. 

This, gentlemen, is an adjourned meeting of a Conference 
that was called to consider how and by what we can best 
promote all the agricultural, mechanical and mercantile in- 
terests of our common country. 

It will be recollected that a committee was appointed by 
the Conference to draft and report a plan, designed to unite 
all these indnstrial interests in a course of efforts to spread 
throughout the length and breadth of our country those 
facts and figures that will enable all interested to judge 
wisely, and advocate policy that will most effectually ad- 
vance the highest welfare of the nation. 

"When the farmers of our country realize the fact, that a 
farm adjoining a town or factory that will consume all their 
sarplns prodacts, is naturally worth double the amount of a 
farm equally productive that requires one quarter of all its 
surplus to be expended to find a market. When this is 
thoroughly understood by the farming interests of our coun- 
try, they will be found to be the warmest advocates of a 
policy, that will make the plow, the loom and the anvil 
equally dependent upon each other. 

It is of the greatest importance, that every American 
ohonld know and understand the fact that nations grow in 
'vaalth and power in proportion as they condense their raw 


materials by indnstiy iuto higher forms of v^ne for con- 
venient transportation in their own and other countries. 

It is easy to see how England is now 'drawing the life- 
blood of other nations into herself by the power of Iier ma- 
chinery, that is doing the work of nntold millions of men. 

This tremendous power of mechanical wealth England is 
now exchanging through cheap transportation for the hand 
labor, and raw mai«rialB of other coontrieB. 

The secret of England's enormous wealth and power will 
appear when we look at the fact, that the exports of England 
amounted in 1SS7 to $610,000,000 of manufactured goods 
with only a very small proportion of raw materials. Onr 
exports during the same period were $338,685,000 with only 
$30,000,000 of this amount in manufactured articles. Here, 
then, we have two systems diametrically opposed to each 
other. England exported $610,000,000 in 1857, and nearly 
all of this vast amount in manufactured articled. During 
the same time onr country exported only $30,000,000 in 
manufactured articles. 

England is now by her manufacturing policy better able 
to pay the interest on her national debt of $4,000,000,000 
than she was to pay the interest on the debt she had created 
one hundred and fifty years ago. In addition to all this, 
England has invested in railroads $15,000,000,000 since 
1829, in her own country and in other parts of the world. 

It should never be forgotten that England secured her 
enormous wealth and power by a complete system of pro- 
tection for every article that gave employment to her people. 

This policy was continued until she acquired an amount 
of capital and skill as to fear no competition. 

It was unfortunate for our country, that our government 
alldwed our currency to be as effectually debased by tolerat- 
ing local banks in the issue of pictures called money, as it 
would have been if the government itself had poured almost 
any amount of alloy into the gold and sUver of the country. 

By this policy we have so increased the prices of all 
property and labor that we have tampted the world to sell 


39fl TARIFF. 

U8 eTerjthing, and at the same time we moke everything 
with ns too dear to sell in retnm witli profit. Our govern- 
ment is now compelled to maintain a high tariff with large 
internal taxes, in order to protect its own interest and honor. 
The onlj possible way to enable the people to pay the vast 
amoont of taxes i-eqnired to meet the wants of the govern- 
ment, will be to maintain a policy that will keep alivp and 
active all the varied indnstries o£ onr conntry. To encour- 
^e the industry of the people in the most effectnal manner, 
our government shonld collect its taxes from tlie fewest num- 
ber of articles as the best way to lessen the expense of col- 
lecting, and thus lighten the hardens of the people. 

History tells ns, that " Free Trade between France and 
England occasioned such dreadfol disasters to an indnstry 
that had gi-own up under the continental system, tliat it be- 
came necessary to seek a speedy refuge in tlie prohibitive 
system, under the shield of which, according to the testimony 
of M, Dnfrin, the manufacturing industry of France doubled 
between 1815 and 1S27." Henri Richelieu, in a note to the 
French translation, says i " In 182S the English policy wafi 
revealed with great distinctness by the liberal Joseph Uame, 
who spoke without reserve of strangling the mannfactnrea 
of the continent." 

Sir Robert, Peel, with equal honesty, is said to have re- 
marked that, " as an Englishman, he was in favor of free 
trade, but that he could not speak in favor of that doctrine 
were he an American." It is well for ns to remember it 
as an invariable law in political economy, that nations must 
be poor and weak in proportion as tliey rely on the export 
of the raw materials of tlieir conntry, of which we have 
a striking illustration in tlie fact that the average earnings 
of each individual in North Carolina amounts only to forty- 
nine ($49) dollars, while the average earnings of each in- 
dividual in North Massachusetts, where they convert raw 
materials into mannfactured articles are one hundred and 
sixty-six dollars. 

France, after a long experience, has announced to the 


TAEIFF. 897 

world, throngh tlie President of the Council, lA. Baroche, 
its determination formally to reject the principle of Free 
Trade aa incompatible with the independence and eecuritj 
of a great nation, and ae deBtructive to her noblest mannfac* 
tures. He then B&ys that " Froteetion must not he blind, 
unchangeable, or excessive, but the principle must he firmly 
maintained." When the people thronghout the Southern 
part of our country realize the many advantages they possess 
of a mild climate, with cheap labor, and where all the 
powers of nature have combined to urge the Southern peo- 
ple to condense their raw materials in forms of great value — 
when they do this they will find themselves in possession of 
one of the most favored spots on tlie globe. 

After the war of the revohition our country remained 
poor and feeble, until, under the lead of Mr. Calhoun, we 
adopted the Protective policy, our country then developed 
our immense reeources with unexampled rapidity. 

Our history shows that, in proportion as manufacturing 
flourishes, every other interest flourishes with it. It will al- 
ways be wise for men or nations to gather wisdom hy re- 
flecting on the history and experience of the past. 

Fetsb Coopeb. 




AbMutaelKO, 123 
Adanw, John, ft, 7 
Aluon, Sir A., 54, 56, 76, 78, 124, 

160, ITS, 192, 233, 357 
Allen, Hon. W., 63,63 
AUen, W. W., 4S 
Amarican Colonies, SG3 
Ametioan Indoatiial Laagne, 830- 

Aati-Honopol7, 297 
An ti- Monopoly Lengiw, 385 
Awiguftbi, 18, U 

Baiid, H. C. 45 
B»Uot-box, 303 
Bank, Cnlted Stacei, 5, 28, 37, 931, 

Bank of Bnglind, 65, 137, 185, 187, 

138. 181, 800 
Banken' AMOoiation, 213, 367 
Bankers' Magazine, 881 
Banker*' ConTention, 254-365 
Banking Moni^Kilj, 298 
Barbaiiam, 203 
Barley, 387 
Baatiat, H., 265, 802 
Beok, Senator, 157-163. 175, 188 
Beecher, Be*. Huujr Ward, 360, 

Beocher, Re*. TbomM E., 303 

B«Dtoii, 322.233 
BUcksmitb, SIS, 861 
Bonamy Prioe, 2, 871, 878, 8: 
Briddoyei*' Uoion, 64 
Blight, Hon. John, 60, 188 
Biooka, James, 840-854 
Buchanan, Hon. Tm w . 136 
Buckwheat, 887 
Bnreaii of Statutios, 866 

Oaimea, pToteasor,-803 
Caldwell, John 0., 48, 197 
Calhoon, Jtdui a, 43, 167,-!}74-ST7, 

California, 81, 381, 868 
Campbell, Thomas, 313 
Capital, 87, 803, 804 
Oaiej, Henry C, 820, 3S1 
Oaiol^a, North, 864 
Carpenter, 816, 8S4 
Oaatlereagh, Lord, 811 
Cateohism, Finaooe, 262-264 

Certifloate, SUvei, 806 
Chamber of Commeroe, N. T., 160, 

166. 176 
Ohaae. Hon. S. P., 8, 4, 180, 166, 

166, 306, 330, 366, 877, 813 
China, 868 


Chittenden, Hon. B. B., 100, ISl, 

ChiM, 242, 26* 
ChriatiBnitj, 264, 205 
Chdstun Polplt, 297 
Citiwns' Assoolation, 807, 869 
Civil Bervice, 213, 398 
ClaudSBtiDO Legislation, 288 
C1d6, Legal Tender, 127 
Olnb, Union League, 9, 195 
Coohnne, Hon. John, 280 
Coin amd Paper Cnrrenor, 1-818 
Colbert, 928 
Coleman, Di., 820, 827 
Colonial Tieaaniy Notea, 221 
Commercial, Bt. Lonia, 135 
Commercial Wai, 869-870, 876 
Congteiafonal Beoord, 69, 110, 120, 

160, 204, 202 
Conkling, BoBooe, 64 
Conanmeis, 315, 889, 890, 891 
Contraction, 98. IIS, 195 
Convertible, 66, 209 
Copper, 164 
Com, 857, 387 
Comoll, QoTBcuoT, 296 
Corporattoni, Danger from, 224, 

OottoD, 867, 886 

Cornier and Enquirer, N. T., 278 
CoTDda, Hon. John, 846-848 
Credit, 87, 186 
Crooker, Mr. , 179 
Croabj, Eor. Howard, 296, 296 
Canttaaj, per Head, 120, 206 
Coireni?, New York Board of, 278 
Cotrenor, Small, 198 
Ctar, 240 

Daniel, S6S 

Dean, Qeo. W., 200, 201 

Debt, Ganse and Core of, 208-218 

Deooa, 863 

Demonetization of SUrer, 121, 169, 

ISO, 283, 818 
Deshler, John O., 964 
Diplomata, 865, 872 
Dixwell, J. B., 391-808 
Divine Right, 106 
Donbledaj, Thomas, 137, 180 
Drew, John O., 43, 202 ' 
Dorant, Hon. T. J., 61 

Eadle, John. 380 
East India Oompan?, 860 
Bdlton, Appeal to, 187-A18 
Edward III., 828 
Eppia, Ur., 42 
Erie Caital, 325. 858 
ETart«,Hon W. M.,17a 
Evening Post, S. Y., 28, 47, t 
Evening Poet, Albany, 147 
Ewlng, Hon. UL , 283 
Eipaiuion, 98, 116, 195 
Expeuaea per Capita, 281 

Factorlea, 815 

Farmer, 126, 139, 183, 206, 388, 815, 

830, 840, 858, 867, 889, 800, 891 
Fobmaij 12, 187S, 288 
Field, B. H., 280 
Field, Eon. U. W., 6, 61, 75 
Finance Cat«ohiun, 363-264 
Financial Syatem, 173, ITS 
Financial Poliqj, Brief EittOI7 ot, 

Flnt National Bank, 801 
Fiscal Policy, 383-389 
Folger, Secretary, 280 
Fox, Mr,, 3S0 
Fractional Corrency, 301 
France, 13, 14, 79. 99, 106, 187, 188, 

141, 171, 100, 106, 200, 207, 240, 

806, 328, 330 
Franklin, Benjamin, 4, 42, 63, 108, 

167, 221, 851, 352, 383, 884 


Frea Trade, 100, 378, 300 

Free Trade Leogne, American, 81 

Follarton, Mr., 361 

Qallatin, Albert, 278 

GuSeld. 234, 268, 885 

Qeon^, Heiii7, 30I-S08 

aeimaay, S40 

GeriDUt ZollveieiD, 828 

Ooddard, 8. A-.SOO-Sll 

Gold, 42, 66, 03, 69, 03, Ift^, 175, 

183, 100, 207, 240, 307, 813, 881 
Chx>d GoTernment, 187-213 
Gordon, General, 276 
GoTeinment Stamp, 306 
Grunt, Hon. IT. 8., 15. 66, 08, 112, 

130, 146, 157,150,245, 258 
GrapUo, New York, 208 
GntTea, Calvin, 277 
Greele;, Horace, ID3, 104 
Greenbacks, 14, 57, 158. 201, 281, 

288, 202-205, 399. 800, 807, 813 
Greenbackera, 202-205 
OiMubaok Labor Partj, 808 
QaUiver, 282 

Habeas Coipni Act, 810 
Happ7 Incident tor Ameiicft, 180 
Eardenbetg, Hon. Hr., 26S-274 
Hajei, Hon. R. B., 67, 109-124, 168- 

177, 203, 234, 283 
EazelUue, Hon. Ira S., 290-203 
Hsmp, 383 
Herald, New York, 61-64, 70-100, 

233, 254, 289 
Hindoo, 860, 869, 863 
Hindoostan, 3r)6, 860, 803 
History, A Brief, of Finance, 811- 

Hodge, Bar D. U., 207, 208 
Hdman, Hoa W., 801-806 

Home Market. 816, 867, 870, 3B0, 

Home 'i;ooke, 860 
Hubbell, 204 
Hunt, WUaon G., 280 
Bnntington, Me., 170 


IncouTertible, 200 

Independent, Kev York, 203-205 

India, 356 

Inflation', 108 

Iul«^conTertibI^ 10, 121, 207, 212 

Interview, 61-84, 70-100 

luveaton, 815 

Ireland, 231, 852, 356, 398 

Jaokwn. Andrew, 23, 221, 232, 233, 

826. 327, 338, 320 
Jamaica Inland, 304 
Jotvis, Jobn B., 47 
Jeflerson, Thomaa, 4. 42, 78, 156, 

157, 171, 108, 204, 330, 338, 372 
Jobnson, Reverdj, ;:9, 80 
Jobneou, Samnel. 300 
Jones, Senatoi, 114, 183, 191, 102, 

Jordou, Edward, 208 
Journal, Mercantile, N. T., 61, 387 
Jnggernant, 802 
Jnte, 385 

Rent, Chancellor, 380 
Knigihts o( Labor. 240 
Knox, Comptroller, 235 

Labor, 803, 308 

Laborens 125, 274, 283, 803 

Lapham, Mr., 203 



Laureace, Hod. W., 340 

Law Excluding Bank Offioiats from 

CoDgreBB, 6 
Lawrence, Hon. C. W., 315 
Laws, Beatrictive, 111 
League, American luduBtiial, 839- 

Leather, 385 
Lee, General, 340 
Legal Tender, 8, 3, 4, 5. 57, 99, 158, 

183, 184, 301, 313, 345, 368, 811, 

Letter on Finance. 75-77 
Letter to the Bankers' Couvention, 

Lett«T to the Votern of Maine, 18S- 

Letter to Hon. John Sbeiman, 148- 

Letter to President Ea;ee, 109-134 
Letter to Hon. Robert J. Walker, 

Letter to Hon. H. Ttedfield, 8-35-339 
Lincoln,' Abraham, 301, 303, 340 
Linena, Imported, 388, 3611 
Liveipool, Lord. 310 
Londoa Eoouomist, 115 

Macanloj', 361, 303 
Hodixon, 3K3, 328 
Habone, Senator, 3j8 
Halacbi Margrontber'a Letten, 6S 
Ualthne, 301, 303 
Uannfoctnier, 28^^, 315, 301 
Market, 320, 353, 307, 379 
Marghall, Humphrey, 383, 384 
Uason, 315, 864 
Matyr.De La, 213-317, 318 
Maynaid, Hon. Mi., 69, 119, 188 
HcCnllocb, 8S, 160, 161, 165, 176, 

Hecbanies, 374, 383, 315 
Mercantile Journal, N. T., 61, 887 
Uerchuit, 383 

HiU, Stoart, 391. 392 
Miller, Mr., 179, 293 
Mint, 305 
Money, 91, 93, 99 
Money of the Conatltution, 8 
Money Changers, 342 
Hongredien. M., 393 
Monopolist, 239, 399 
Monopoly, 163, 274, 306, 39t 

Monroe, 836 
MoorB,«56, 393 
MorriU Tariff, 886, 836 

NspoleoD, 136, 135, 338 
National American, 845 
National Banks, 146, 191, 193, 237, 

New Bnsineas for National Banks, 

Newman, Eer. Dr., 290 
New Haven Union, 64, 65 
New York Board ot Cnrrency. 378 
New York Press Olnb, 143-146 
New York World, 385 
Nickel, 164, 307 

Oats, 367 

O'Conor. Hon. Charlea, S3, 81 
Old Stato Bank Circnlation, 156 
Opdyke, Eon. Geo,, 379 
Opium, 363 
Over-pTodnction, 810 

Pacific Kailroad, 73 

Panics, Periodic, 7, 70, 118, 135, 

190, 222, 231, 811, 818 
Paper Currency. 173, 207, 320-248 
Paper Money, 63, 164, 340 


Papei Notes, Hi 

Phtib Exposition, IGO 

Paaiag« of the Silver Bill. 383 

Party, Demoorotic, ^95, 296 

Party, Bepablican, SOS, 296 

Paul, St., 188, 243. 243 

Peel, Sir Robert, 137, 13(i, 3(12, 372, 

' PensioDii. !12 
Peterwatsden, &4 
PetitioDB to Congress, 1, 3, 17, 348- 

Pbaraoli. 45, 356, 804 
Phillips. Wendell, 127, 194, 198 
Plassey, 360 

Platform of Greenbankers, 59 
Plnmb, Senator, 347 
Political FermouB, 207 
Politicians, 200 

Politico-Financial System, 308-213 
Politics, 107, 2D7 
Porter, Ee». E. S., 2B6, 297 
Portupil, 868, 864 
Post, ETsning, New Toik. 23, 47, 

Post. Evening, Albany, 147 
Pofltal Sayings Banks, 173, 180 
Press Clnb, N'ew York, 143-146 
Prodncere, 815. 389, 300, 391 
Profllfl of National Banks, 237, 245- 

EUilroads, 178 
Itamie. 3SS 

Re-Charter of National Banks, 246 
Redemption Fund. 82 
Redemption Act, 364 
KedSeld. Hon. H., 335-839 
Besnmption. S45. 346. 282 
Review of Comptroller Knox's Re- 
port. 344 -3W 
Revolntion, Canse of. 3S5, 866, 807 ' Sngar, 
Kcardo. 45, Hi , Sntplns of ^150,000,000, 341 

Rice, 3ti3 , Switzerland, 14 

Bnskin, 261 
Rnssia, 33B, 3 
Rje, 387 

Sa^, Mr., 179 

Salaries, Uoderate, 213 

Say. M. 301,393 

Soience, 143. 254, 355 

Science of Good Government, 391, 

Service, Civil, 313 
Sharman, Hon. John, 19, 110, 148- 

103. 173, 174, 170, 180, 203, 303, 

204, 313, 234,- 315, 877. 878 
Sbnltz. Jackson 8,, 871-875 
Shylock, 117, 335 
Silk, 385 
saver, 63, 93, 121, 164, 176, 190, 

340, 345, 383, 285. 287, 807, 881 
Silver Certificates, 306 
Silver Bill Passage, 285 
Small Paper Cnrcency, 198, 268 
Smith, Adorn, 391, 393 
Smith, Goldwio, 293 
Solon, 145 
Soutb, 391 
Bpanlding, Hon. K G., 68, 119, 120, 

158, 187, 206, 277 
Specie, 133, 181, 180, 810, SIS 
Spencer, Herbert, 44, 161 
Spinner, F. B., 10, 119, 150, 202. 

Stamp of Ooremment Hakes 

Money, 164 
Steele, Mr., 58 

Stephens, Thaddens,' 68 

Stewart, A. T.,fl 

Stilwell, Silas M., S, 4, 5, 303-318, 

StHkes, 117, 307, 349 
Snb-Treoaury, 213, 312, 823, ?33 


Tariff, 81S-394 

Tariff Commisrionen, 375-883 

Teleeian, Bev Xork GveDiog, 381 

TUden, Hon. 8., 63, 67, 76 

ThnTmaii, Senator, 385 

TUlmui, Hon. Hr.. ZSQ 

Times, New Irak, 201, 203 

ToImcoo, 3BS 

Trampa, 250 

Treaauiy Notea, 8, 4, 57, 168, S70, 

Tribune, New York, 28, 195, 872 
Tnrkej, S56, 893 
Trrannj of Oto Hone; Power, 290 

VnUtu Leagne Clab, 9, 195 
Uoited States Bank, 5, 23, 27, 221, 

VanderbUt, W., 179 
Venice, Bank of, 223, 878 
ToorbesB, Senator, 388-289 
Tortex, 86 

Wade, Hon. B. F., 845 


Walker. Hon. Kobert J., 815-325 

War against Legal Tendera, 215 

War. Commercial, 359-S70 

Wttri. Hon. E. B.. 341, 380 

Womei, Hon. Bichnrd. 23fr-243, 249 

Warning to Oreenback Man, 303 

Warren, Uarwin. 124 

Waalibgton, Geo^e, 940, 280, 818, 
I 328 

Waterloo, 126, 135 
' Watson, Wilson, 231, S86 

Weaver, General, 293-804 
, Webster, Daoiel, 42, 123, 157, 168, 
199, 207, 233, 250, 259. 877 

Wella, DBTid A., 849, 350. 893 
] West, 391 

West Indies, 808, 364 

Westm'acot, Captain, 802 
' Wheat, 887 
I White, Professor, 13 
I WUlianu, John Earl, 19, 196, 197, 
I 233, 274 

Wilson, Hon. H., 348 
I Winder, W.'h., 281 

Wool, 386 

Wool Growers, 834, 885 

Workingmen, 201, 308 

WoTkahope. 815 

World, New Tork, 385 

Tatman, John T., 270 
Yonge, Mi., 30