The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1864-01-05
From the Woshingto8 Chronicle:
"Under which KiIe..

We have somewhere seen a detailed state
ment OF the rise and progress of public in
debtedness during Mr.. Lincoln's Administra-
ton; and appended thereto an argument,
intended to work disafeetion among the peo-
pie in view of future and greater financial
embarrassment, to grow out of continued rule
of those who support his war policy. 1t was
stated, with marked emphasis, that the entire
expenditures OF the Government, from the
founding thereof down to the close of Mr..
Buchanan's term, including expenses proper
and extraordinary, did not equal the expen-
ditures of the last three years by half a billion
of dollars. And here the comparison was
dropped, without inquiry as to the nature of
this increased expenditure whether yolunta-
ry or involuntary on the part of the Govern
ment; whether disproportioned to the increase
OF population and wealth of the country, or
l the contrary; whether resulting in financial
distress and falling off in the public credit, or
not; whether necessary and unavoidable, or
whether incurred in a spirit of most wicked
and wanton extravaganza. The case thus
stated appears, pfiBaa fdcie, uncandid, illibe-
raj, and factious. Had it made show of dig
nifty 1t might have been named special
pleading" Bnt it lacked dignity, breadth
all the qualities which could influence any but
the most stupid clodhoppers, who constitute
so many living arguments against universal
suffrage.
Turning back few pages of the record, we
arrive at the condition of the finances under
the mismanagement of Howell Cobb, Mr.. Bu-
chanan's Secretary of the Treasury. We
learn therefrom that, during the latter part of
MIR. Buchanan's term, the Treasury was trou-
bled with plethora of gold and silver; so
much SO that Mr.. Cobb took fright and set
about relieving it. 1t was an extraordinary
case, and was presumed TO warrant an extra
ordinary remedy. In view of this. the then
Secretary oil the Treasury conceived the not
able plan OF relieving the public purse by pur-
chasing the evidences of public debt at A
high premium-l6per cent, if fmemory serves.
The result was all that the btterest enemy of
public credit could have desired 1t worked
so well that the excheuquer not only lost its
plethora, but actually parted with so much of
lis vitality that it could not respond to the de-
mands of current expenditures for the peace
establishment. Plainly here was case where
depletion had been carried so far that stimu-
lants must be resorted to to save the patients
life.
In this emergency the chief Of finance
sought remedy in loan. He dropped down
Wall street and sounded the golden sea- 1t
was deep, very deep-too profound, in fact
for the shoal water line, so much favorite
with MIR. Cobb. The money-kings of "Wall''
were not inclined to put their faith in princes
of such doubtful financial acumen. But few
men can withstand the tempting bait of usury.
80 Mr.. Cobb advertised for loan to pay the
current expenses Of the Government, and Of
fered high rate of use TO him who should
hasten to lend on the Governments promise
to pay. This, remember, was but a short
time subsequent to that in which Mr.. Buch,pl-
ans Secretary of the Treasury was buying UP
the public debt at premium of 16 per cent.
1t will be presumed that Government, which
SO shortly before purchased its paper at high
premium, would be able to borrow any reason
able number OF millions at the current rates.
The loan asked, if memory serves, was five
millions. The usury brought the interest
very nearly up to the premium he had Just
paid for evidences of public debt. What was
the result? Simply what every fnancier of
standing foresaw The loan was only par
TALLY taken, and we presented the humiliat-
ing spectacle of a nation bankrupt in credit
bankrupt by the supreme folly, or base design.
of its chief of finance.
This was the condition of monetary affairs
when Mr. Lincoln took the Executive chair.
How do we stand now in the matter OF public
and national credit? Let the record testify.
Mr.. Chase found little difficulty in borrowing
fifty millions of Wall street and its dependen-
cies in less than five months after he took the
place so dishonored and disgraced by Mr. Cobb.
He borrowed without extraordinary effort or
above the legal rates in New York. But he
did not stop then. He said to the people. in
effect: This is your war; it will cost fabulous
sums TO prosecute it; the Government wants
five hundred millions of dollars. What was
the response? For the last year and half
the people have been voluntarily lending TO
the Government about one million of dollars
per day. During the last six months the Gov
ernment has, in single day, realized, from
this voluntary loan, the enormous sum of eight
millions of dollars Within the last twelve
hours the people have lent the Government a
million of dollars, But why multiply exam
piles? So, to-day, this nation is not bankrupt,
as it was on the day James Buchanan left the
Executive chair. True, the public debt is
enormous; but the public credit is unbound
ed. If we are in debt il is TO our own people.
We owe Europe but 1.-THE, nay, nothing men
tionable of this great debt. 1t is all our own.
Every acre OF zeal estate is pledged for its re-
demption. Almost every man has invested
something in public securities. So we are all
interested in the upholding of the Govern
ment.
But when Mr.. Buchanan vacated the chair.
eight millions of people had dissolved their al
legiance TO the Constitution and the laws
Whether the Government is stronger to-day
than it was March A, lS61-that is the pract
cal uuastiou