"Please do not trouble yourself to read until at entire leisure.
"56 CLINTON ST., BROOKLYN, _Feb. 14, '76_.
"MY DEAR SIR,--I am indebted to some kind friend for a copy
of your Message for 1876 (secluded among my books, I do not know
whom); but recollecting your conversations with Mr. Bennett and
myself some years since at Delmonico's, I am fain to believe that I
am one of a number to whom you may have directed it to be sent; but
in the uncertainty deem it more decorous to address you _personally_
in my recognition of the favor. I read the Message at the time of
its appearance with much interest, and was particularly struck
with the strong clearness and distinctness of that portion of it
pertaining to financial affairs, which perhaps is the 'part of the
schooner' I am (or rather ought to be) more particularly conversant
with. We are much indebted to Mr. Chase for the present state of
things--his refusal to recognize the banks as government depositors,
and have a clearing-house for the daily settlement of its debt,
with _enormous_ resulting economy of its _physical_ features (for
instance, the issue of legal-tender notes under such circumstances
need not have exceeded one hundred million)--but mainly for
setting loose under his national bank system a thousand _new_
inflating-machines, called banks, practically unmuzzling the old
banks which he cowed in under its flag. Admitting other causes, in
my opinion it is mainly[1] the bank inflation which has caused the
state of things _culminating_ in 1873; and which crisis, opening the
eyes of the community to its truths on the one side, shows them the
terrors of contraction on the other, and the natural apprehension
of a sudden contraction to a specie basis produces thus, of course,
almost paralysis in all business movement beyond the _immediate_
present. I do not think that the plan for _arbitrary_ resumption in
1879 will be attended with happy effect. 'There is no royal road
to learning,' and assuredly none to specie resumption. We have
slid down the hill with intense velocity; we have got _slowly_ to
trudge up the hill again through the snow if we would have another
slide. I think that if ten years ago we had commenced destroying
the legal tender at the rate of 5 per cent. per annum we would have
avoided _1873_, and have been paying specie now; and I think if we
commence[2] now in that ratio we shall in ten years arrive at the
desired result, relieving the business community from the bugbear
of rapid contraction. The destruction of _20_ million legal-tender
would carry with it _80_ million bank credit--say, an annual
contraction of _100_ million. This, if the country is let alone,
with a decent attention to the economy you suggest, it could have
from the increasing receipts of its industry. In _1873_, as a matter
of _curiosity_, I examined into the statistics of finance for the
periods stated, and it is from them I draw my conclusions above
expressed. I annex a copy, as perhaps your experienced eye will
take in at a glance the gravity of the record. Now, my dear sir, I
hope you will excuse my troubling you with this long note, and not
trouble yourself to answer it. With hopes that you may be blessed in
health, and remain long as the head of your State, I am
"Very truly your friend and servant,
"A. E. SILLIMAN.
[1] The cost of the war being practically packed away in loans.
[2] "In my opinion, any other than a _very slow_ contraction of the
excess of credit issue will be followed by a general dislocation of
existing contracts. They are essentially 'nine-pins,' and if you
knock over a few they will most likely bring down all the rest."