The Portland daily press., 1867-11-28
rIr. Eininc ON The Pena,e,an suiudIe.

nr. Siaine on she Fenu,esOn Swindie'
The following is a synopsis Of Mr.. Blaine $
speech in the House of Representatives Tues
day afternoon: II
Mr.. Blaine in review of MeSsrs. butier anu
Pendleton's theory of paying on ln e. Nv
twenty bonds with ereenbae rs, TOOK tne groun"
that this mode Of e WIZ of of the nation
and ,hat n was hostile to the spirit ana letter
~e tha law: that it contemporary ignored
the common understanding between borrower
| end lender at the time the loan was negotiat-
ed that, finally, even il it Was an honorable
and practicable mode of payment, its effect
would be NEUTRALITY-SUSPICIOUS. to the financial
and business interests of the country Mr.
Blaine then proceeded 20 give a careful histo-
of the variors loan hills under which the
20 bonds had been sold, showing by the Ian.
gaage OF, the law, by the circumstances sur
rounding the various aenaotments, and by the
rontemporaneous understanding in Congress
as especially shown by Mr. Stevens as chair
man OF the Committee of Ways and means,
thaf gold payment of the principle Was J ~
as much guaranteed as gold payment VI NV 'i
interest. shi ilJH
lii further proof of his position, Mr. Blame
cited the advertisement Of the hye-twenty loan
as authorized by Secretary chase PieuSihS the
payment of the principal anu interest IN com
1'his nlAdoe was given with the knowledge
and rendered binding by the assent of Com
rrass Al this late day to attempt to ignore
| The full force of that pledge would be simply
| placing the United States in the attitude of a
man playing confidence game" Of the mean
est description, inH hiCh the Treasury Depart
ment and Congress are the confederate knaves
and the whole mass Of bondholders the untor-
tunate victims. In reply to the point made by
Messrs. Pendleton and Butler, in regard to the
principal of the 10-40s being guaranteed in
gold, and to the consequent implication that
the 5-20s, by silence on that point, are paya-
BILE in paper. Mr.. Blaine states as a fact Of
conclusive import, that when the 1910 bill was
passed only twenty-five millions of the five.
twenties had been sold, and had the seonstrue.
ton of Gen. Butler obtained then, moi
one dollar more could have been disposed of
for the people would not have bought paper
loan when gold loan was about to be placed
on the market and urged upon their accept
ance. Mr.. Blaine then proceeded to argue at
some length the impossiblity of paying the
tiye-twenties without a reckless and bound
less issue of paper money, which would in the
end engulph us all in financial disasters, with
| wide spread and general distress to all classes
of the community, Gen. Buffers idea of pro
curing the means by offering for sale new Sc
ries of currency bonds would be found deeep.
tive and deluSive. The government would be
in an exceedingly awkward attitude when il
should re-enter the money market to negotiate
load such as Gen. ID utler advocated, the avail.
of which We're to be devoted to breaking faith
with those who already held the most sacred obi
|
scheme. is that which terms the exchanging OF
greenbacks for bonds a payment at all, 1t is
no payment in any proper sense, 1t neither
gives the creditor his honest due, nor does il
release the debtor from subsequent RESPONSE
bility. You may get rid of the 5-20s by issuing
the greenbacks, but how will you get rid Of
the greenbacks except by paying the gold
In conclusion, Mr.. Blaine urged that the true
financial policy of Congress was to move
steadily, but not rashly, towards the resump-
ton of specie payments, and at the same time
to reduce our expenditures within the narrow
est practicable limits. Our whole annual out
lay, including the interest on the public debt,
ought not to exceed two hundred and twenty
five Millions but to attain this we must rigidly
and severely economize. Our military peace
establishment must be cut down one-half at
least, and all the leaks and gaps and loose
ends must be taken up and stopped. With
| such policy steadily pursued, neither oul
debt nor our current expenditures will be bur
densome to the people, and we can at once
have vast reduction in our taxation. 1t will
9oubtIess cramp us vast deal to pay our in
debtedness, but it will cost us incaculabI,
more not to pay it. t N'