"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."
DAVID A. WELLS TO TILDEN
"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.