The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1866-01-08
The Remedy for High Prices.

The remedy proposed flor high prices] is a
return to specie payments-Of course! But a
return to a specie basis is impossible, even for
the government, till at least half of the green
backs are withdrawn, and so cease to circulate
as currency. No sane person doubts or mas
doubted Except perhaps the trainers OF the
national bank SYSTEM that specie basis is
necessary to a sound currency mus iaf, 1t
1.-THE Pressl has not touched the real question,
which is, show can the present voiuine OF cur
rency be reduced to figure which shall make
it possible and practicable to return to specie
payments ?" How can the government do it ?
How the banks? How all who hold these
graenback rags p argus.
We do not propose to turn aside for every
one that may see fit to sneer at the facts we
have alluded to in connection with the finan.
cial and currency question, and especially fol
those, like the Argus, who opposed, from first
to last, euery financial act of the government
forced upon it by the necessities of the war
war prosecuted to put down gigantic re-
billion got up by the same class of politicians
If from the first gun at Sumter to the down
fall Of Richmond and the surrender of Lee
the Argus ever approved sir gle act of the
Secretary of the Treasury, in his gigantic ef
forts to provide the "shews of war;" we were
not fortunate enough to discover the fact at
the time; we do not think any one else made
the discovery. Mr.. Chase's whole policy, in
cluling the issue of greenbacks and his sue
cessf1 appeal from the Wall street bankers TO
the people in order to raise popular loan,
was met by the whole copperhead press of the
country with the most unreasonable and sour
rilous opposition, and nothing but the sagaci-
ty of the Secretary of the Treasury, his firm
reliance on the masses who never deceived
him, and the general wisdom of his scheme,
saved the country in its extremity, and ens-
bled the govern m mt to raise, feed and pay of
its armies, and thus crush out the rebellion
and uphold the honor and integrity of the ma
ton. --.. ...r ..fT..- r.rt
For moment consider the condition of the
treasury when national bankruptcy and i'm
pending civil war were bequeathed to Mr.. Lin
coins administration as the legacy contained
in the last will and testament of Buchanan's
Democratic I! administration. When How
ell Cobb became Mr.. Buchanan's Secretary a
the Treasury, he found the country free fit I'm
debt, with the exception of few millions Ct
non-matured bonds. Finding himself with
surplus in the treasury, this financial giant
went to work and anticipated the payment OF
the bonds referred o,paying some twelve or
fifteen per cent premium for them in gold, in
order to cancel them! Before his four years.
term of Office had expired, in a time of pro-
found peace and prosperity, this same finan-
clal genius found himself without money to
meet the ordinary expenses of the govern
ment, and he went into the money market
with his bonds, and sold them at from Sc to IS
cents on the dollar, in order to get money
enough to pay the Official salaries, and then
could not raise half the amount he called for |!
Here was shown the credit which the govern
ment sustained with the people in time Oh
profound peace, under Democratic administra
ton! Such bankrupt condition of the trea-
sury, with civil war impending, was the in
heritance of Mr.. Chase, the Secretary of Pres
ident Lincoln, from Mr.. Cobb, the Secretary
of Mr.. Buchanan. The tremendous clash OF
arms came, and the expenses of the govern
ment went up to the enormous amount OF
from two to three millions day, and yet Mr..
Chase, with the financial influences of Wall
street against him, successfully carried the
country through the storm, so that when the
war was at its height, and in the gloomiesi
hour of the Republic, and when such paper
as the argus were cautioning the people
against investing their money in government
bunds, and saying they would soon be al
worthless as so many waste rags, and when the
party represented by the argus was significant
ly limiting at general reputation, even al
such a time and against such adverse anG
reasonable currents, the bonds of Mr.. Chase
were sought by the people and taken at par tx
the amount of from 100000 to $15,000OOC
per dayl Never was a dollars worth of bonds
sold by him at less than their par value. To
accomplish such wonderful results, it became
necessity of the government that its green
backs should become legal tenders for all the
purposes of domestic business, except in the
payment of duties on imports. Wesay it wa
necessity that the government should affis
legal tender element to its promises-to-pay,fol
already, when that act was passed, those prom
ises were being discredited by the banks of thu
country, and the paymasters found embarras,
ment in paying off the troops even in oui
own State, because of the uncurrent natureo
the money provided for the purpose by the
government. The legal tender act cured thi
evil at once, but, as every sensible person
knew would be the case, it gave birth to othel
evils, the chief of which has been and is, oul
prevailing high prices, not only of the luxu-
ries, but also of the necessaries Of life.
The argus admits in the above extract.
that the repeal of the legal tender act and the
resumption specie payments, would reduce
prices, but saysa return to specie basis is i'm
possible, even for the government, till at least
half of the greenbacks are withdrawn and
cease to circulate as currency. p - ''
We shall not dispute this proposition, but
we deny that those greenbaeks can be with
drawn and funded at six per cent. when GOLD
six per cent. bonds, with gold bearing coupons,
are being thrown upon the market at par, or.
at not over taco per cent. premium, the pay for
them being not in coin which brigns 45 per
cent. premium in currency, but in paper,
which sells for coin at 81 per cent. discountl
And particularly is it true, that such funding
or conversion of greenbacks cannot be made
while in gold they are worth but sixty-nine
cents on the dollar, when the very proposition
for such conversion is coupled with the assur
ance that, as soon as one half are thus con-
verted, the other half will be worth one hum
bred cents on the dollar. .a.. o
Start out on such financial scheme as this.
and it will be found that the banks, the brok--
ers, and men who can afford to do SO, win COB
BILE up the greenbacks, SO as to be sure and
have good supply of the last half that is to
spring up as by magic to the value of gold and
silver. The thiag,is simply impracticabls and
practically impossible. 1t is too much like the
Irishman who, when told the cost of adyer-
L e.. I