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Show GENERAL. TIIE POT BOILS. Carl Schurz Replies to Phillips it it nk C.'urreiic-y ts. Greeu- St. Louis, 8. A letter ia published from CarlSchurz in reply to the letter of Wendell Phillips, who replied to the recent speech of Schurz on the currency question. It is very lengthy and is largely made up of deprecating the aigument and ability of PhillipB to discuss financial questions. Schurz terms the letter of Phillips "flippantly offensive, email and supercilliouB." Schurz says: Although I have never been an admirer of Mr. Phillips' financial theories, yet I always considered con-sidered liim far less foolish than Gov. Allen. If he insists on stepping down to Gov. Allen's level be it so, but there is something still more curiouB. Mr. Phillips Bays the very fact that so large a proportion of tbe business transactions of the country are effected effect-ed by means ol checks, notes and bills, though the banks are the corner stone of their grave charges against our present system of finance. Ho argues that as checks, notes and bills of exchange are so performing tbe functions of currency the banks are able at will to inflate and contract the currency, and he and -his friends mean to break this aristocracy of money manufacture by introducing their system of greenback and uncontrovertible un-controvertible bonds, which he says will leave this power of inflation and contraction in the hands of the whole mass of the business men. This proportion pro-portion Schurz characterizes as a monstrous accumulation of absurdities. absurdi-ties. This power ol bank paper contraction and expansion is now wielded by the mass of business men, and could not be done by any other parties. He charges that Mr. Phillips' scheme of substituting greenbacks for this bulk of business paper would but be a return to the clumsy methods meth-ods of barbarism. He shows that the proposed system of in Inconvertible bonds and greenbacks, if it could be carried out, would contract the currency cur-rency bo as to bring the business of the country to almost an absolute standstill. Mr. Schurz proceeded to review the paper money Bystems of various nations na-tions at great length in reply to Mr. Pbillips'statement of what that money has enabled those nations to accomplish, accom-plish, adding: Tho question is not whetlier irredeemable money has been used to advantage in times of public emergencies, when other resources re-sources were exhausted, whether it fought the battle of Waterloo or Gettysburg; Get-tysburg; the question is whether an emission of large quantities of iire-deemable iire-deemable paper currency will promote pro-mote extravagance and corruption. By looking into the suspension period in England, be will find that irredeemable paper may have fought the battle of Waterloo, but that this feat did not prevent it promoting pro-moting extravagance and corruption at home, and unless bo ignores whatever what-ever everybody knows ho will surelv not deny that this country tells the same story. He might also study the history of Russia with profit. Still less will he bo able to deny that extravagance, ex-travagance, profligacy and corruption in an cxtraordidary degree will result from a policy such as I discussed. Finally Mr. P. attacks my assertion that no other system than specie payments pay-ments will remove current values from the arbitrary power of government. govern-ment. No other can give to tho current values that stability upon which a sale business calculation can be made. No other can restore that confidence which is the first prerequisite prerequis-ite of a new period ol prosperity. Mr, P., with an air ot triumph, points to the panics that from time to time have occurred in Bpecio paying countries, coun-tries, to show that confidence don not noccssarily and always accompany a specie system. Tho couUdenco which wo need to induco tho capitalist capital-ist to trust his money into the bands of enterprise will not grow up again us long as tho volume of the currency tho country is to have is at the arbitary mercy of congress, whoso resolutions re-solutions may ut any time change all curront values, thus crossing tlio most sensiblo business calculations and haitliug the acutcst foresight. Confidence will not return as long as the prospoct that tbe wild schemes ot demagogues and visionaries may ob-Uin ob-Uin control of our national finances hangs over tho busin ss world liko a ; threatening gtnrm cloud. i 1 demonstrated by tho hintory of '. i ourreiicy jn tljia country ia lt&7 ftud ; 1857, that business did not revive and prosperity recover until by the elimination elim-ination of tho element of fluctuation and uncertainty consisting in an unsafe un-safe currency and by the restoration i of a sound money system. On a specie basis the country was made to feel firm ground again. Tho panics which occurred in specie paying times form the favorite argument of the inflationists. I know as well as others ttiat thoy return at almost regular intervals and that no monetary mone-tary system has been invented to prevent pre-vent them, but when from their Seriodical recurrence the inference is rawn that the specie system is worth nothing. It is as wise to say that good health is worth nothing, because be-cause it is sometimes interrupted by sickness. There is one passage ui value in Mr. Phillips' letter, to which I subscribe with all my heart. Instead In-stead of this hair splitting of old theoriei practical statesmanship uses the wisdom of experience, learns from our own war policy, profits by the glorious example France Bets us, and by using all modern expedients ex-pedients as she d'td to turn disaster into opportunity, setting the hand spindle, steam engine and rail all at work pouring content and plenty through all our channels. It disdains, dis-dains, as France did, to yield to unmanly un-manly fear and shriek; "wolf 1 wolf 1 from tho watch tower, but with cries of victory and reform marches from the head of tbe banks and pours confidence into every heart and makes the success we prophesy. The French people instead of crying for more money in the shape of dishonest dis-honest promises to pay, . devoted themselves to the producing of roal values by steady work and frugal in dustry. Thus they have entereu on new period ot prosperty, under that very policy of contraction which fills Mr. P., with so much horror. If he wants the United States to follow the example ot France, I say amen ! It is to bo feared be has given good advice rather by ignorance than by design. How mischievous such teachings are appears from tho fact that bo many laboring men nave Deen seduced into the support of the infla- ! lion policy which their own good sense should have shown them to have been specially invented to oppress the laboring man himself, by robbing him of the fruit of his labor, and the value of his savings by currency depreciation; de-preciation; and all this for the benefit bene-fit of the gambler and speculator. But still greater mischief may be done by this very reckless agitation of " such doctrines. The manufacturers and traders would have to shut up lheir shops and try to escape from this grand bedlam and look for some other place where people are still old fashioned enough to believe that two and two make four. Yours truly, C. Schuez. |