"Fort Washington, Friday, April 6th, 1875.
"Dear Sir,—Going on steadily with the proved narrative. It will soon be in a perfect condition. The revelations are most satisfactorily exact. The 'long train of abuses' will have an astounding look.
"You are up to your eyes in a confusing multitude of affairs, and may not have as clear a vision as I fancy I have concerning affairs here.
"There can be no doubt that, as usual in such alterations, there is a class who counted on coming into the succession and enjoying Tweed's privileges. In his day the so-called Democratic wire-pullers and the so-called Republican wire-pullers understood each other and divided the spoils.
"This was a still existing policy at the last city election. Wales, the Republican candidate for Mayor, was nominated in the interest of the regular Democratic nominee, and ran to secure the defeat of Ottendorfer, who is an independent man, probably a very honest man and, for aught I know or suspect, would have as truly supported integrity and justice in government as anybody else. Accordingly, Wales, as appeared by the papers, was a champion of Bill Costigan.
"The hungry are fierce, and hardly know what to do with themselves or where to turn. They don't get a chance to turn Green out, and you keep the Corporation Counsel on his good behavior.
"It seems to me you must stick just as you are. I have not too much confidence in the most recently elected Democratic judges. I am sure that if the Mayor gets the making of a corporation counsel that office will become as bad as it ever was. Now the incumbent stands in dread, and behaves un-obstructively. I write to advise that you beware how you alter this condition of things.
"You have gone so deeply into the hunt after scoundrelism that I do not see how you could repent, even if you wished to, and I presume you do not.
"One thing more. Special bills, etc., are being prepared and passed, too, in aid of jobs. If such things are to be helped or permitted to run through without opposition it surely will be idle to waste breath in pursuing Tweed.
"The public will sustain you in vetoing all these things. See the marked part of my opinion on constitutional amendments.
"Yours truly,
"Chas. O'Conor."
"Confidential.
"New York, April 9th, 1875.
"My dear Sir,—The bill which was introduced yesterday by Miller, of Orange, has caused a great deal of bad feeling here among our people. Green's connection with it is unquestionable. It is strange that any one claiming to be a Democrat could act so unwisely. Such acts as these would destroy the best party organization in the country. I am astonished that our members could act so inconsistently. There is no apparent head in the Assembly, and in its present disorganized state its inconsiderate acts will tend to weaken us in the State and be the means of getting up an outside organization to co-operate with the Republicans next fall. Already this is being bruited about now. I had expected that matters would proceed smoothly here in the future, and there would have been no difficulty if discreet judgment had been used when this fiasco shall have subsided. I would advise that advances be made to the well-intending members so that there may be entire unison of action. Above all, there must not be any disintegration among ourselves, except so far as they relate to corrupt men, against whom we should set our faces.
"Your act in pardoning Ingersoll was severely commented on at first. When your purpose was explained the reaction was instantaneous; all now, or nearly all, commend you for it. The traitor is at all times despised, but treason is thought well of, and particularly so when the people have obtained a substantial benefit, which will be, no doubt, the result in the Ring cases through the testimony of Ingersoll.
"Your steady and persistent course in these Ring frauds will immortalize yourself, O'Conor, and those who have acted with you in the good work you have and are performing in the interest of the people. May God spare you and your assistants until you will have finished your tasks. Most of men would have become disheartened at the many repulses you have met.
"Now, my dear Governor, you must have a man in the corporation counsel's office who will act for the interest of the public. You cannot depend on the present incumbent in that office. If he were to act in good faith with you there still would be eavesdroppers about the concern who would carry the news outside; there must be an entire regeneration in that office to make it effective. Your time is now to follow up the present excitement incident to the release of Ingersoll. You will recollect how anxiously I pressed this matter on you when in Albany last week. Let me repeat to you again that you would be entirely safe in the hands of Whitney. He is an honest, high-toned gentleman, and will co-operate with you and do credit to himself. Don't let this matter pass over Saturday.
"I trust that you are enjoying good health, and that your strength will hold out to enable you to add new laurels to your achievements.
"Yours truly,
"John Kelly."
"To Samuel J. Tilden, Governor of the State of N. Y."
"Fort Washington, Saturday Night, April 10, 1875.
"Dear Governor,—Mr. McLean has just been here, and from him I gather that you are anxious for speed, and especially in re Sweeney.
"The more haste the less speed is often a true phrase. Everything necessary and within the limits of our power was done at once to prevent Tweed's escape on a discharge likely to be awarded by his friends of the Refugium Pec. Other proceedings, it seemed to me, should be cautiously and deliberately initiated. I could not help seeing the judiciary's headway against us, and that the Scovil remedies bill, wounded and paralyzed in its birth, limps sadly. So in whatever I do I feel the necessity of caution.
"I have requested Peckham and his allies to pick up the outside biographical facts concerning Sweeney and his tribe. How and when they went off, where they are, etc., etc. Whilst this is progressing I stay home and pump.
"The man is very intelligent; taught by his sufferings, he is perfectly biddable and bent upon giving entire satisfaction. But men of his grade are bad at delivery, and need a midwife who has much industry and inexhaustible patience. He is in low health, constantly taking medicine, and it was not until Friday afternoon late that I got possession of him. The information comes forth very slowly, but I think in the most precise form. I got everything in the most painfully minute details; but it will not be painful reading. On the contrary, I think it will be as amusing as instructive. I throw it all into narrative form. It will read like a novel; and although it is bad policy in general to show one's hand, I am under the impression that when I get through with him it would be a good operation to publish his narrative.
"Sweeney is cunning in the extreme, and no doubt had the concealment of his tracks in view from the beginning. But it will surprise me if he can escape. I shall try to put things in such a shape that we can drop suddenly upon whatever may be here. I am told that he designed coming back to give his skilled talent to the task of defence. Between him and D. D. F. and the Refugium Pec. it might seem that a hopeful fight could be maintained for a little while. But there can be only one end.
"I think we will want an agent in Paris. I know one, Henry Harrisse, a lawyer there, who formerly perched in this city. Though a Frenchman by birth, he is perfectly conversant with our language, our people, and our affairs. I feel sure that he is honest and trustworthy. Had I not best write to him at once? The Sweeney tribe will probably have to be pursued to Europe. Tom Fields is there, and probably other subjects of discipline are or will be. Had I not best write to Harrisse at once and retain him?
"You must be patient, no time is being wasted.
"Yours truly,
"Charles O'Conor."
"April 12th, 1875.
"My dear Sir,—I had lis pendens filed on all the property Tweed has owned since 1867. Some little is still in his name. Most of it is transferred. I have complete lists of the property of the Sweeneys and Hugh Smith, and lis pendens ready to file the moment Mr. O'Conor gets the suits ready to begin.
"I saw him yesterday and forwarded to you his letter, which you received this morning, I suppose. I cannot hurry him. He is making the case as thorough and complete as possible. Ingersoll turns out to be all we expected, and is perfectly ready to do what he can.
"I don't think anything can be lost by the few days' delay, as a transfer just now would be so clearly for purposes of fraud as to make it of [not?] the least benefit.
"I saw an article in the World to-day, copied from a Syracuse paper, to the effect that the Court of Appeals had come to a conclusion in the Tweed case and in his favor and on the points raised by Comstock. I don't believe it at all, but if so, it is most scandalous, as Comstock was allowed to raise his points in reply, and we had no opportunity to answer. There is nothing in his point as habeas corpus serving, and almost as clearly none as writ of error.
"If the court ever decided for Tweed it ought to be d—d eternally.
"It seems to me almost impossible for it to do so honestly.
"Yours truly,
"Wheeler H. Peckham."
"New York, April 16, 1875.
"Dear Governor,—Julia has asked me to send you a copy of the contract between myself and Mr. Henderson in regard to the rent which is to be paid by the Evening Post in the new building. This is no contract, properly speaking, but only a letter from me to Henderson, in which our understanding respecting that matter is briefly stated. In the letter I simply say that I turn over the building to him, advise him to go on with it on his own account, making it convenient for the publication of a daily newspaper, and expressing my desire that a lease for twelve years of the necessary rooms shall be made to the Evening Post, 'the rent to be fixed by two competent and disinterested persons.' This is all, and a copy of the letter would show nothing more.
"Yours faithfully,
"W. C. Bryant."
"Fort Washington, Apl. 28, 1875.
"My dear Sir,—Our determination here is to push the Ring suits to decision as rapidly as possible. Once we get fairly started everything will move with the utmost rapidity. But getting the fair start is attended with no slight difficulty. The field is so wide and is so full of minute details, and the sources of information are so much more responsible than formerly. We must not let our deponents make any mistakes. Their knowledge being absolute and actual, their responsibility is great. If through haste or want of memory mistakes occur they may be pronounced wilful, and thus their credit be destroyed, or at least impaired. By interlocutory motions, such as demands for impracticable things, as copies of destroyed papers, etc., they will bring their judges down upon us, and thus precipitate the climax.
"Probably this is well enough. If their judges have resolution equal to their wishes they can defeat us, in despite of any legislation. But it is to be hoped that fear, like the cackling of the Roman geese, may save the State.
"It is said that one of our N. Y. judges has pledged himself to save Sweeney. Very likely. And, I guess, whenever he has a chance, the Mayor will appoint as a corporation counsel a known friend of that absent functionary.
"My precise motive in writing at this time is to warn you of the necessity of watching closely all amendments of the Code of Procedure, and any statutes concerning practice. There is great likelihood of an attempt to smuggle some baffler of that sort through the Legislature.
"Yrs., &c.,
"Ch. O'Conor."
"Personal.
"May 26th, 1875.
"My dear Sir,—Yours of date 24th, postmarked 25th, is recd.
"In reply I have just written you at length, and looking at the length of the document, have destroyed it, thinking that a long history is not what you want.
"I had not seen the newspaper attacks or the cartoon; did not know that Barlow had a brother-in-law.
"You say that I may ascribe delay to Mr. O'Conor. I do. I drew and gave him complt. vs. Sweeney. I would have prepared affidavits. He assumed the duty of so doing himself. At his request I wrote you to pardon Ingersoll.
"He alone has seen Ingersoll, he proposing that it should be so.
"You say he is not above being helped and aided. I have been completely at his service from the moment he commenced till now. He has declined all assistance, saying that the drafting of affds., etc., was work at which but one could work. If there has been anything other or further that I could do or could have done I do not know it.
"If the matter had been under my control I shd. have commenced suits and had attachments long before.
"They would have been without the perfect basis which the results of Mr. O'Conor's long labor will disclose.
"It may be that such perfect basis, when disclosed, will be well worth all the delay.
"Whether so or not was and is for you and the Atty. Genl. to determine; not for me.
"After Mr. O'Conor assumed the labor of preparing the case vs. Sweeney, etc., it certainly would have been highly improper and indecorous for me to do otherwise than acquiesce. As to my personal action, all I can say is that I have been at his service always. That I have urged haste as strongly as common courtesy to him would allow. You speak of what might have been done 'if I had been really anxious to produce results.'
"I am at a loss to understand your meaning.
"You certainly cannot mean what the words apparently mean.
"I do not believe that there ever was a doubt in your mind, or the mind of any man, as to whether I was 'really anxious to produce results.'
"If there was you should not have employed me or suffered me to be employed. I have waited for Mr. O'Conor. Could I or should I have done otherwise? You say that Mr. O'Conor is above criticism. Agreed. But so far as anxiety to produce results—so far as devoting all time or labor to the cause, so far as making this business the very first, to the exclusion of everything else are concerned—I insist that I am as far above criticism as is Mr. O'Conor or any living man.
"If there is or has been any delay caused by want of zeal or attention on my part I shd. like to know it.
"You will note that I make no criticism on the delay in the preparation of the affds. I have not seen them, nor do I know what they will be. From the general description of them, given me by Mr. O'Conor, I think they will be well worth the delay, and when you come to know what he has done I think you will wonder not at the delay, but at how soon an immense work was accomplished.
"I only say in answer to your letter that the delay has been beyond my control. Mr. O'Conor yesterday expressed great confidence that he would have manuscript for me to begin printing by to-morrow or next day, and that I shd. have the affds. for the use to oppose Tweed's motion for a bill of particulars June 1st.
"From what he has said I suppose that when ready for our use they will be for all, and that we can commence the other suits next week.
"Whether the delay was wise or not is not the question.
"I only say that whether wise or unwise I am not responsible for it, for I had not the power to control it. Responsibility goes with power.
"Yours truly,
"Wheeler H. Peckham."
"I will watch for criticisms in the papers as to pardoning, etc., and see that any error is corrected.
"I rather think that the publication of the affds. Mr. O'Conor is preparing will be the best answer that can be made to criticisms, and I now feel quite hopeful that they will be ready next week."
"Fort Washington, June 14th, 1875.
"My dear Governor,—Herewith you will receive a fair copy of the views which strike me as just in respect to the leases.
"There does not seem any need of occupying your time with a call. Your allowance for this task of passing on the bills is so near its close that every intrusion, however slight in duration, must be an evil.
"But a single thing occurs to me in your aid.
"Where you cannot approve a bill, is not a simple withholding of your signature the true course?
"Such appears very clearly to me to be the proper course. A written memorandum of the reasons which governed you might be useful, and, if time admitted, should always be made; but a formal veto does not seem to be called for or expedient. It must necessarily wear an aspect of severity. A purely negative course is less offensive.
"Yours truly,
"Chas. O'Conor."
"Office of 'The Argus,'
"412 Broadway, and 2, 4, 6, and 8 Beaver St.,
"Albany, June 20, 1875.
"Dear Governor,—Since you, following in the wake of the Legislature, abandoned the capital, Albany has been extremely slow and stupid; but the constant and voluminous gossip that has prevailed regarding the supply bill indicates that, although absent, you are very 'numerously remembered,' and, no doubt, prayed for. Will all the prayers be continued after the thirty days have expired? I am not sure, if I were near you, that I should ask you to approve the new capitol item. As an Albanian, perhaps yes; as a citizen of the State, possibly no; and as a Democrat, no, most decidedly, without a change in the management.
"Your arguments on the canal appropriation bills are really admirable—so strong, clear, and convincing, indicating so much research and such thorough knowledge of the whole intricate subject. They will be very popular, even beyond the State; and here no voice will venture to rise in opposition.
"The malcontents are restless, vituperative, mischievous, and cowardly. They abound in threats and slurs and insinuations, and would do much harm if they only dared and knew how. But they are bewildered, and so simply stand under cover, make faces, and tell what they intend to do at the next State convention; among other things, they are then and there to annihilate the Argus. Our organization here, with Abraham Lansing for president, is very strong—stronger than ever before—and we shall send an influential and a united delegation to the convention. The soreheads begin to count much upon the ripple of disagreement that seems to exist among our friends in N. York. The Governor must smooth the troubled waters. He knows how.
"Return to Albany as soon as you can. Diluted as they are, can't the principles of the removal bill be applied to those Job's comforters with some effect?
"Respectfully and truly yours,
"Daniel Manning."
"Personal.
"New York, June 25th, 1875.
"My dear Sir,—You are quite correct in assuming that no action of mine on any bill or item has been inspired by anything but kindly disposition towards you.
"1. The canal extraordinary repair bill. When I found that I must veto this I at once communicated with you, and expressed the opinion that it would not prejudice your position as to the $15,000. That is my opinion now. I do not see any reason to doubt that you can pay that sum out of ordinary repairs. Tho' as an original job it may have been extraordinary work, when it came to be left in a condition to interfere with the current use of the canal, the removing of the obstruction, and putting in order the bank of the canal, is ordinary repairs.
"You may get the money at once on this theory. You could not get it under the extraordinary repair bill.
"2. The Hudson River improvement bill. The Comptroller informed me that there would be no money to pay for this object or the soldiers of 1812. The veto certainly had no reference to the commissioners.
"3. The supply bill was finally disposed of on information that had gradually been collected in the last two days of the period allowed by the Constitution, and while I was disabled by boils, so that I could not sit up. I should have communicated with you about the item of $750 if there had been time. I supposed I had sufficient and correct information from a gentleman to whom I had referred a portion of the supply bill for the investigation of facts.
"His report to me was that this item was in conflict—by inadvertence, I presumed—with two clauses of the amendment to the Constitution.
"Certainly I had no idea of unkindness or disrespect towards you. I shall be happy to look into the case, and if there is power to make this provision, to favor it.
"I have on several occasions manifested favorable sentiments towards you and your brother. I mentioned him favorably in the special canal message, and you on some recent occasions.
"I gave up my judgment as to the $150,000 for the aqueducts and 16 locks to your joint opinion and wishes.
"I desire to treat you with consideration, and to co-operate with you for the public good.
"Of course I have defined views of duty in respect to the policy to be pursued as to the canals, in which I should be glad to have your concurrence as far as is consistent with your judgment.
"I have dictated this hasty answer to your note in order to avoid delay.
"Hon. Francis S. Thayer."
"Yale College, New Haven, Conn., July 5, 1875.
"Sir,—I have the honor to inform you in an official way that the president and fellows of this college, at the recent public commencement, conferred upon you the honorary degree of Doctor of Laws, and in connection with that act enrolled you with the academical graduates of the college in the class of 1837.
"In thus recognizing the eminent public services which have so abundantly deserved the honorable regard of all public-spirited men, the corporation are especially proud to recall the fact that the foundations of your educational training were in part laid here, and to claim you, in virtue of this former connection, as an alumnus of Yale.
"Very respectfully,
"Your obedient servant,
"Franklin B. Dexter,
"Secretary.
"His Excellency Gov. Tilden."
"City of New York, Station M, Aug. 12th, 1875.
"Dear Sir,—So the anti-peculation campaign is fairly opened. It can eventuate on one way only. No such controversy ever ended in favor of the swindlers.
"But you want some documents. A big one is being prepared by a sub-editor here. He asks me for some facts. More than I can give him. Will you make some of your troops get for me:
"1. Copy of the minutes of the proceedings of a little extemporaneous bar meeting in Albany, held during the Tweed hab. corp. argt. G. T. —— in the chair. D. D. Field moved. I never saw them. I think they must be in the Argus. Let us have name and date of the paper. It relates to a new form of obsequious reverence for appeal judges.
"2. The letter of Allen J., just previous to your nomination, offering to withdraw, if every one else would, in favor of his cousin Church. Name and date of paper.
"I want you to give me the pedigree or connecting link by which Allen's cousinship to Church appears. Mistakes will occur unless men are careful. If you don't know the connecting link, how can it be relied upon? Don't you know the principal fact?
"In looking into the history of the men, I am most at a loss to account for Grover's fall. I have a theory, but it is not as clear and satisfactory as the known facts in respect to all others.
"Your speeches make the welkin ring. Why did you not touch them up at Rochester? Is there a strong peculation clique there? 'Begad, I begin soospec,' as the Frenchman said when he caught a man in bed with his wife.
"I wish very much I could have a little chat with you, but I suppose it is impossible.
"I want a short, succinct statement of the canal frauds detected by the recent committee. I don't know how to draw it myself. I mean what I say, a 'short and succinct' thing.
"The anti-peculation document in contemplation will go hopping along on one leg if there be not a better short presentment of the canal detection than any one here knows how to write.
"Y'rs truly,
"Ch. O'Conor."
"P. S.—Answer as quickly as you can."
On the 9th of August, 1875, E. Delafield Smith was removed from the office of counsel to the corporation on charges formulated by Charles O'Conor, the sufficiency of which was approved by Governor Tilden in a letter which follows. On the same day the late William C. Whitney was appointed to the office vacated by Mr. Smith. Mr. Whitney, at the time of his appointment, was but thirty-six years of age.
"Albany, August 6, 1875.
"To the Hon. Wm. H. Wickham,
Mayor of the City of New York.
"Sir,—At the time the proceedings for the removal of E. Delafield Smith, counsel to the corporation of the city of New York, matured in the submission to me of all the papers which either party deemed necessary to a full hearing of the case, the bill under which the suits growing out of municipal frauds were transferred to the care of the Attorney-General was well advanced towards its passage, and soon after it became a law.
"So far as any urgency resulted from the connection of this case with those suits, that element disappeared; and in no other respect were the interests of good government in immediate jeopardy. In the mean time the absorbing demands of measures of canal reform, and the pressure of legislative business superseded all less urgent matters; and in accordance with the usual practice of the executive office, this case, with similar ones from other parts of the State, and with the mass of kindred business, was deferred until after the close of the legislative session, and after the action on the bills and appropriations left at the adjournment, I have now examined the voluminous papers submitted, and have carefully considered the facts and evidence which they present, with the aid of such other light as was within my power.
"I am of the opinion that acts are established which amount to causes of the nature contemplated by law, and which would at least be sufficient to induce a private client to change his counsel. It seems to me quite clear that a rule at least as stringent as would govern a private client ought to be applied for the protection of a great community besieged by many millions of unjust and fraudulent claims, which are prosecuted with the energy of private interests, and which are always able to obtain great advantages over the public in a contest of professional talent, skill, zeal, activity, and persistence. I have, therefore, executed a certificate of approval, which is herewith transmitted. I have the honor to be your obedient servant,
"Samuel J. Tilden."
"Fort Washington, Sept. 30, 1875.
"Dear Sir,—The thing I apprehended, when suggesting doubts as to the expediency of removing Smith, begins to develop itself.
"All outside counsel, i. e., Barlow, Carter, and the like, are henceforth to be excluded from any city defence against jobbery. The new corp. counsel and his clerks and employés inside of the office are to conduct all the city's business.
"The earliest fruit of this will doubtless be the recovery of $100,000,000 against the city in the water-meter case. This was one of Tweed's last contracts. Plenty more of like sort will follow.
"Browne's[67] article cannot be got into any of the city papers. Many conjectures as to the cause might be indulged in. But one is that, it being very long and requiring an extra for its publication, the printers think the reformers ought to be paid for.
"I know no one who is able and willing to contribute to the cost, and I am not inclined to incur additional expenditures whilst standing alone in that department.
"Yours truly,
"Ch. O'Conor."
"Gov. Tilden."
"Utica, October 19, 1875.
"My dear Sir,—I am too ill and too old to do much at this election.[68] I have been kept in my house for some days by sickness. I shall be glad to help all I can, as I do not like the looks of the canvass. I fear the loss of some part, if not of the whole, of our ticket or of a majority so small that it will be counted a defeat. My fears may spring from the distrust which old men have of the future. Do not feel too sure. I know you are very confident, and so are the Republicans.
"I am, truly yours, &c.,
"Horatio Seymour."
"To Governor Tilden.
"I will let you know what I can do."
"Palazzo Cooley, 2 Via dei Pucci,
"Florence, Italy, Oct. 20th, 1875.
"Hon. Samuel J. Tilden.
"Dear Sir,—Allow me to congratulate you on the success and popularity of your administration as Governor of the State of New York. It seems to have the true Bentonian and Silas Wright tone or ring in it. I like it, and wish you the most perfect and entire success in the noble and patriotic efforts you are making to ferret out and punish thieves, without regard to party, and bring back the administration of the public affairs in the State of New York to the splendid condition they were in when confided to the guidance and care of such men as Wright, Marcy, and others of their best and most influential days. May God give you health and strength to carry out your noble purposes to the utmost limit of your commendable aspirations.
"I rejoice to hear of the signal defeat of the Democratic party of Ohio on their shameful inflation platform; and I am prayerfully hopeful that a similar result may accrue to the silly, not to say dishonest, inflationists of Pennsylvania. However much it may be regretted that the foolish inflationists of the Democratic party should have had sufficient influence to insure its defeat this fall in those two States, it will have the good effect to tumble out of the Presidential path several aspirants and possible candidates for that high office.
"The Democrats in the United States have once more the political cards in their own hands, and they are mostly trumps. Two-thirds, I may venture to say, of the Republican party, are wearied, not to say disgusted, with Grant's administration and sigh for a change, which would have been affected at the last Presidential election but for the inconceivable folly of the Democratic party in nominating Greeley, who for forty years had exerted himself to the utmost of his ability to destroy the party and malign and blacken the character of the most pure-minded and patriotic members of it.
"'Free trade, reform, and speedy return to specie payments' should be the conspicuous rallying or watchwords of the Democratic party in the future; and it must follow, as the night the day, that, with that insignia inscribed upon its banners, and with candidates truly representing the sentiment or policy it indicates, the party will next year triumphantly sweep the country from one extremity to the other.
"Protective duties, Civil War, and excessive issues of paper money have done much to demoralize the character of our people and waft the country towards the brink of ruin! It is high time to bring these destructive measures to an end; and to the Democratic party, rightly directed, is reserved the noble and patriotic mission of effecting this incalculable benefit to the United States, which would bring back the party itself to the enjoyment of all of its pristine power and the warm affection of an overwhelming majority of the people.
"The war is happily at an end, and protective duties may be abolished by repealing the ruinous acts that authorize their unjust exactions. But a return to specie payments cannot be effected by simply passing resolutions or empty and vague enactments of Congress. Something more grave and important is required to insure this great and much-needed reform in the deplorable financial condition of the country.
"In an extremity, and as a war measure, the government, having undertaken to furnish a paper currency declared to be equal in value to gold; and having made that currency the basis of a system of banking, which has been generally adopted throughout the country, it cannot now withdraw itself from the full responsibility of that position without great detriment to the best interests of the country, and incurring lasting dishonor, until it shall have, as it is abundantly able to do, appreciated that currency and brought it up to par in gold. This being done, the government will have returned to specie payments; and greenbacks, being the basis of banking, the banks themselves will also have resumed specie payments, if in a solvent condition, with an augmented appreciation of the whole volume of the currency, including the greenbacks and the bills of the national banks equal to the difference between the current value of the depreciated currency and the price of gold in the American market, which I perceive by the last quotations is 16 per cent. This agio or premium, calculated on the whole amount of paper currency now issued by the national banks and the government (equal, I suppose, to no less than $700,000,000), would amount to $112,000,000; and this large sum is simply what would, in that event, justly accrue to the possessors or holders of the depreciated currency of the government and the national banks.
"How, it may be asked, can this desirable result be easily attained? Evidently in no other way than by the government taking such steps and adopting such measures as will surely bring into its possession an amount of gold sufficient to enable it to deal in its own currency for all government transactions. How is this to be done? Simply by a six-per-cent. 'redemption loan,' having 30 years to run, and to an amount equal to the full volume of the greenback currency now afloat. I say six per cent. because I would make the absorption of the loan speedy and sure, though it is not unlikely that a loan of the kind might be slowly negotiated at 5 or even 4½ per cent. interest. But a government loan at 6 per cent., having thirty or even twenty years to run, would be caught up with avidity by capitalists on both sides of the Atlantic at a large premium; and it would at once throw the balance of trade in favor of the United States, so that there would be no immediate demand for gold abroad. It would, also, break down at once the mischievous ring speculations in gold at home, and obviate the necessity of buying gold for the payment of customs; and as gold could be obtained at any time for greenbacks or the bills of specie-paying banks, the demand for it would become so small that gold, instead of commanding, as it does at present, a ruinously high premium, would most likely become a drug!
"Such a loan as I have indicated should be put upon the principal money markets of the United States and in Europe and bid for simultaneously, and payable in gold.
"Should such a condition of monetary affairs be attained the government might withdraw the greenbacks from circulation, so fast as the volume of currency necessary to meet the requirements of commerce should be supplied by sound specie-paying banks, until the whole amount ($400,000,000) shall have been retired, without disturbing materially the general current of trade or adding a single dollar to the present indebtedness of the United States. The interest on the new loan would, of course, have to be provided for; but that would be more than compensated by the saving of gold premium, now annually required in payments for foreign importations, which, whatever may be the amount, is added to the price or cost of all foreign commodities consumed by the people of the United States. The loan, moreover, would doubtless be taken at a premium of 10 to 15 per cent.; if so, $40,000,000 to $60,000,000 would be realized by the government by the operation.
"The glory of this great and patriotic achievement may be made to redound to the honor of the Democratic party is aroused to a proper sense of justice, and stimulated to a faithful performance of its obvious duty to the country; and, above all, inspired with a firm determination to be true to its own self.
"I have the honor to remain, with great respect,
"Very truly, your friend,
"J. E. Cooley."
"Norwich, Conn., Nov. 9th, (1875).
"My dear Mr. Tilden,—I return herewith answers to all your list of questions, so far as I am able. It is not easy to give definite answers to all, especially in relation to aggregate national wealth, income, and savings.
"I do not believe it judicious for you, in your message, to enter in any degree into the field of economic controversy. The masses won't comprehend, and the doctrinaires will fight you. Stick to the great principles, and do not commit yourself against contraction. I have thought a good deal over our conversation of last week, and I am more and more convinced there is no other practical way out of our financial difficulties. 'All roads lead to Rome,' and all roads to resumption involve contraction at some stage if they lead where they pretend to.
"Very Truly Yours,
"David A. Wells."
| From | 1872. | France (exclusive of Alsace and Lorraine) | 36,102,920 |
| " | " | Great Britain | 31,835,000 |
| " | 1870. | United States (Census) | 38,115,641 |
| " | 1872. | " " (Estimated) | 40,000,000 |
"United States.—The valuation of the property of the U. S. by the census of 1870 was (in currency) $30,068,000,000. The returned assessed valuation for the same year was less than one-half, or $14,178,000,000. The census counted as property, both property and the evidence of debt secured on such property. I do not think the productive capital of the United States in excess of $25,000,000,000.
"Great Britain.—Baxter, in 1867-8, estimated, from accepted data, the aggregate value of the real and personal property of the United Kingdom at 6,000,000,000 pounds, or 30,000,000,000 dollars. I should put it for 1872 as high as seven, possibly eight, thousand million pounds.
"France.—I know of no estimate of the aggregate value of property in France. I find several recent French writers, who incidentally refer to it, as less than that of Great Britain.
"Baxter estimates, for 1867-8, the annual gross income of the United Kingdom as 814,000,000, or $4,070,000,000; and the net at about 600,000,000, or $3,000,000,000. This last constitutes the fund out of which the nation feeds and clothes itself, pays taxes, and repairs and saves. I should estimate the gross income of Great Britain for 1872-4 at full 1,000,000,000, and the net at 800,000,000. There are no reliable data for estimating annual savings, constituting new capital. Ten per cent., which is a high estimate, in my judgment, would give 80,000,000, or $400,000,000; and yet these figures are not consistent with the recent returns of the Board of Trade, respecting the income from British foreign investments.
"France.—Victor Bonnet asserts that the data are certain that France before the war of 1870 saved annually as much as $400,000,000—2,000,000,000 francs; and thinks that the present saving is about $600,000,000. He quotes Sir Robert Peel, approvingly, to the effect that France, with equal revenues, saves more than Great Britain.
"United States.—Greater natural resources here give a greater gross and net income, with equal labor. I am inclined to put our gross income between $6 and $7,000,000,000. I do not believe our annual saving, in prosperous years, in excess of five per cent., or from $300 to $400,000,000.
"Great Britain.—A late number of the London Economist puts 80,000,000, or $400,000,000, as the minimum paid Great Britain by foreign countries for interest on capital invested abroad, and for freights and commissions. The last year, I should think, represented full one-third.
"France.—The estimate of revenue derived by France from industrial enterprises in foreign countries and foreign loans, from 1873-4, is about 260,000,000 francs, $52,000,000.
"United States.—Nothing.
"Great Britain.—Nothing.
"France.—An inconsiderable amount, probably not in excess of 12 to 15 millions of dollars.
"United States.—Not less than one hundred millions of dollars. Probably more than less.
| United States | 1872-3 | Exports | $677,000,000, | Currency. | |
| 1873-4 | " | 716,000,000, | " | ||
| 1872-3 | Imports | 649,000,000, | Gold. | ||
| 1873-4 | " | 693,000,000, | " | ||
| Great Britain | 1872-3 | Exports | £311,000,000, | $1,555,000,000 | |
| 1873-4 | " | 297,000,000, | or | 1,985,000,000 | |
| 1872-3 | Imports | 371,000,000 | |||
| 1873-4 | " | 370,000,000 | |||
| France | 1872. | Exports | 3,679,000,000 | francs, | $735,000,000 |
| " | Imports | 3,447,000,000 | francs, | $689,000,000 |
"The present product of gold and silver, or rather the product for 1873 and 1874, is estimated by the director of the Mint in his last report at $70,000,000 per annum. For the five years, from 1871 to 1876 inclusive, an average of $60,000,000 per annum would probably be about correct.
| Exports | 1870 | $43,882,000 |
| " | 1871 | 83,400,000 |
| " | 1872 | 72,727,000 |
| " | 1873 | 73,417,000 |
| Imports | 1870 | 26,417,000 |
| " | 1871 | 21,268,000 |
| " | 1872 | 13,742,000 |
| " | 1873 | 21,478,000 |