The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1868-03-19
DAILY PRESS.
PORTLAND.
Thursday Morning, M.roh 10. 1885,
National Finances.
SPEECH OF HON. JOHN LYNCH
OF MAINE,
IN THE HOUSE OF REPRESENTATIVES,.
March 7, 1868.
Continued from the Press OF yesterday.l

~ We htifC LlOIt Inal Is required
for business purposes why is il that this sam
currency, which bears no interest and rot re
deemable in gold, is generally worth NOR
than United States bonds at five per cent in
terest, principal and interest payable in gold
| During the year 1866, while the currenc,
was being reduced in consequence of its al
legged ovelabundance, these inteyest-bearin!
gold bonds were selling at ninety-sx cents OF
the dollar in this same iaedeemable cllrren
cy. is it not clear that the reason why thi,
uredeemabe currency was not exchanged tol
| these gold bonds was because of its more
profitable employment as currency?
The fact is our condition is unlike that O
the Old World, whose wealth has been elab
GRATED and concentrated by ages of labor into
gold and silver and other forms of value read
| lily available to the purposes of commerce
Our wealth is principally in undevelopel
forms. The raw material we have in abund
ance. III is in our mines, forests, and fertile
lands, in our water power and fisheries, and
III the intelligent labor whose magic touch is
to turn all into gold
But to develop this wealth and make il
| available requires the aid of capital in the
form ol currency. This currency is now sup,
| piled by our Gov ernment notes, secured by q
pledge OF all the property OF the nation. BY
Its use we have been enabled to commence
and carry forward toward completion with
unparalleled rapldity railway uniting the
Atlantic with the Pacific coast, and opepinn
| up to settlement an intervening continent: to
construct other railways in all parts of fhc
| country; to open and work our mines. clear
our forests, till our lands, and transport their
products to market; build mills, factories. and
machine-shops, and operate them; in short
to develop all our varied resources, and there
| BY to add immensely to our national wealth
Let us now examine the assertion that a
| reduction OF the currency benefits the labor
ing poor OF the country. II such were really
the TACT 1t would be one OF the strongest ar
guments that could be adduced in its favor:
Tor certainly justice and sound policy unite in
demanding the protection OF that class which
produces all the wealth of the nation.
A scarcity Of money, it is said. helps the la
borer, in that it lessons the expense of living
by reducing the cost of the necessaries of
| life. But the neeesSaries of life are the pro-
duct OF labor, and whenever they are high the
price OF the labor which produces them is also
high. But it is eontended that the laborer
derives no advantage from this increased
price OF his labor, as in tuIn he has to pay
the same relative increase on the price of all
he consumes. In the supposition that he
does so pay lies the failacy Of the argument
for while the laboreI is the sole producer he
| is not the sole consumer. OF the necessaries
OF life he is both producer and consumer:
of the luxuries of lite he is only producer
| and while the prizes of the necessaries OF life
| which he both produces and consumes ad-
| vances the prices of the luxuries which he
| produces but does not consume, and into the
| production of which the largest amount of
labor enters, advance sill further, and this
| difference favors the producer Again. the
same causes which reduce the price OF the
| products OF labor reduce not only the price
but the amount oflabor employed.
Generally, when wages are reduced one
hall the labor of the country is only one half
employed, even at the reduced rate. This ra-
suit arises from the fact that there is ALWAYS
| surplus of production on hand: the
supply OF the great staples being seldom
exhausted under any circumstances. During
the war we did not reach the last bale of cot
ton nor the last pound of Virginia tobacco.
although the source OF supply was,for long
time cut OF. These accumulated stocks serve
to carry the capitalist through the hard times
which general scarcity Of money arising
from any cause produces.
When money becomes scarce production is
| curtailed; the laborer loses employment; ac-
cumulated stocks are drawn upon to satisfy
present demand; money rises in value: and
the capitalists who own the money profit by
the rise. The wealthy merchant, or manufac
turer OF abundant capital, falls back on his
accumulated stock of merchandise, endures
and Waiting tile 4ffhfsltV 4h tmakss vii vi4eyitaPle
that loss I'D the rise OF price which is sure at
length to follow the curtailment OF produc-
ton. The laborer, meantime, having no such
resources, neither money nor merchandise,
only labor, which he cannot dispose or suf-
fers.
The laws of political economy, uniform in
their operation, never produce other results.
Never IN the history of this country was
money abundant in active circulation, and la
Dor at the same time not well paid and fully
employed. And never was money actually
scarce, or driven out of circulation by a CON
traction of the currency, or by any other
cause OF distrust or panic, without the labor
ers, as class, suffering at the same time, both
| from inadequate compensation and inadequate
employment.
This, Mr.. Speaker, is the fact at the present
time. Labor is neither fully employed nor
adequately paid. And labor now wants pay
| and employment because of the condition Cf
| our finances; because of a scarcity of curren-
| cy in circulation through the healthy chan
| nels OF legitimate business, a scarcity attIib-
utable in part to an actual contraction of the
| currency, put attributable still more to the
threat of contraction, which, backed by au-
thority of law, has frightened money out OF
| circulation iuto the financial centers, as ter
| tion of his blood and drives 1t back upon the
| heart.
Here let me remark that the policy of CON-
mencing. Immediately on the close or the war
and continuing to pay off the principal of the
| public debt is as unwise, ii not as disastrous
| to the interests of the country as the policy ol
contracting the currency. Its effect has been
to overburden the generation which carried
the nation through the war, and to relieve flu
ture generations from all cost tor the ricl
heritage to which they succeed. The Soutl
| will pay but small percentage of taxation
during the present gene, alton. Why should
| they be entirely relieved from DEBT which
| their madness and folly fastened upon the ma
| lion? Why shoul the foreign emigrant;
that every year land upon our shores, taking
| up their abode with US, and sharing all the
advantages OF our government, be entirely re-
lieyed from the payment of the debt incurred
in saving and maintaining that government
in the hour of its peril? The wealth of the
nation increases one hundred and twenty six
per cent. in each decade. After period
thirty years, at this rate Of increase, the same
percentage OF the whole wealth OF the nation
now required to pay the annual Interest
| would pay the principal of the whole debt in
| a single year. Is it not, under these eireum-
stances, true policy to provide for the annual
interest, and allow the principal to relatively
decl ease with the increasing wealth and pop
rlation of the country?
Sir, any argument against contraction, in
| view OF our recent action in regard to it, may
now appear to be unnecessary. Theories
though zealously urged and persistenty adj
hered to, have been forced to give way to the
stern logic of events. The business OF the
country, stimulated, broadened, and enlarged
by the increase of the currency, refuses to be
forced back into the narrow channels through
which iG coursed previous TO the war. But
notwithstanding we have repealed the law
| authorizing contraction by a vote of more
| than four to one in both Houses of Congress
this repeal is generally regarded as tempo
rary expedient rather than an abandonment
of the policy. The theory upon which the
policy was based is still adhered to, and ex-
erIs an influence tending to unsettle the pub
lie mind in regard to financial and business
interests. 1t has been rather with view to
aid in counteractiug this influence by dis.
proving what l regard as popular tallacy
than Immediately to influence action here
that have examined and argued this ques
tion somewhat at length.
But, sir, while do not believe in the wis
dom of the presentpaymept OF any part OF the
principal of the public debt, and am opposed
to the contraction of the currency, consider
ed either as means of reaching a resump
ton OF specie payments or as in any way
tending to improve the condition of our ii
nances, L do not. therefore, underestimat,
tie value to our currency, to our finances il
general, TO every business interest of til,
country, of q return to specie payments
This, sir, believe is the first step to be takei
the first question to be settled. Settle thi
| question, and all others settle themselves