The Portland daily press., 1868-03-18

IN the future was destroyed. New enterpris-
1 es were abandoned and all business opera
| tions cuitailed. As money was to be made
| deafef ana merchandise cheaper, men kept
/ their money Tor the rise instead of using 1t To
produce merchandise, which was to tall.--
/ Capt. ii accumulated IN the financial centers,
and was loaned at low rates Of interest on
( call. stimulating stock speculations and gold
! gambling occupations which thrive on the
very uncertainties and fluctuations that are
de .truetve TO all legitimate trade.
Following out the implied Instructions Of
the House, as indicated in its vote on the res
olution referred to, the Committee OF Ways
| ana Means reported the loan bill, bill con-
ierflh9 upon the Secretary OF the Treasury
unrestricted power over the currency, and
WIN the authority. already exercised by him.
| secretly to sell gold, placing all the business
| interests OF the country absolutely under his
! control. This bill was, after full discussion,
defeated on the 10th of March, 1866. by q
| vote OF 10 to 65. The disastrous effects of
| TIE threatened contraction OF the currency
| upon business had become so apparent as to
change public opinion in regard to its policy,
and to increase against contraction to 10 the
| vote OF q wi Ich was found at the commence
ment OF the session.
A ILL was subsequently reported authoriz-
ing contraction to the amount of S10,0000U0
ior the first six months alter it went into OPP
Grafton, and at the rate sr $4000,L00 per
month thereafter, and passed this House by
SVote OF So to 53 with forty-seven members
absent and not voting. 1t is sign fcant
fact that the Republican members were equal
~ divided upon the bill, Will, the other side
OF tie House, reg arding ii as an administra-
tlon measure, voted fer it in a solid body
Since that time, however, those gentlemen
have swung round the circle, and are now
me advocates OF unlimited imitation. This
bill, passing the Senate and being approved
by the President, became law, and contrac-
ton OF the currency the controlling measure
OF cur financial policy.
Coupled with this measure of contraction,
anu as part Of the same policy, was that OF
making Immediately large payments in reduc
ton oil the public debt. The government ap-
pears 10 have determined upon the expert
lnrnt OF testing the amount OF strain the Lusi.
ness OF the country could bear without break
iHS' ibe volume OF currency in circulation
among the people as their means OF payment
was 10 oe diminished, sensibly, rapidly dim
inished but there was to be no liminution of
the amount OF taxes which TIE government
would compel the people to pay. Money was
10 be made more scarce and thus dearer; but
taxation was TO exact the same enormous
amount as when the currency lad been, to
use me phrase OF The contractionists, as re-
dundant and cheap.
OAo ehAo POllCJ VI
the currency and overtaxation of the people
were made 10 work together, and in one year
more than one hundred million dollars OF the
currency were retired, while in the same time
there were paid OH, by means OF heavy taxa
ton, more thau one hundred and eighty mil
lion dollars OF the public debt In The fiscal
year ending June 30, 1857, were drawn from
the people in taxes S4500OO,O00, or above
Sl5OUOO,OOO more than was necessary to pro-
n Nc
ment and the interest on the public debt.
WlthsWhat effect, Mr. Speaker? What effect
on the Currency? Was that appreciated by
this great reduction of its volume? Was the
purchasing power OF our paper money made
10 increase in proportion as its gross amount
was diminished? As ourcurrency grew scarce
dld IL draw nearer TO gold in value? With
wuat ehect, also, upon the annual burden OF
! Iaserest which our immense national debt
E4fsils after it? Was that burden reduced by
the large payment toward the principal which
was made only by means OF heavy taxation?
Strange as 1t may seem, neither desIderatum
was attained by this policy, which was adopt
ed as the sure ana only means of attaining
Doth. The value of our paper money did not
go up, nor did the amount of annual interest
go down, in consequence OF this great coDtrac-
ton OF the currency and this lalge reduction
oil the public debt.
On the contrary, both the premium on gold
and the interest on the public debt had mean
While increased, as the following figures
show:
On the 23d of March, 1866, the day on which
the loan bill, authorizing contraction at the
rate OF $4CC0CO0 per month, passed this
House, the public debt was S27O5 GAG SIG
On the list day of April, 1867, it
was 2523 422 O7O
Reduction of the debt $lS2, ,2lS ,446
On the 23d OF March, 1866, the interest on the
deot' when reduced 10 currency, amounted
to S169 ,S13, ,i38
edto 17O,4O2. .s14
An increase of the annual inter- |
est of $780,
A reduction of the debt ofover S1S2 100000
and an increase of the annual interest of
more than hall million dollars
On the 23d of March, 1866, the premium on
gold was twenty eight per cent. On the 23d
OF March, 1857, it was thirty-fve per cent. Ian
increase OF seven per cent. or twenty five er
cent. OF the previous premium, and an liz
crease OF over hall a million dollars to be
paid in annual interest.
Thus we see that after burdening the in
dusfry OF the country with taxation to affect
the payment OF the above one fifteenth OF the
public delt IN single year, and paralyzing
business by Withdrawing more Il an one hun
dred million dollars from the channels O,
trade, we were indebted to the public cred.
itor on the debt thus reduced, by way OF an
nual interest, over half million dollars more
than before; and instead of reducing the
margin between gold and our paper currency,
and thus approxrmating toward resumption
OF specie payments, we increased that margin
twenty-five per cent. Do not these facts
prove that policy productive of such results
IS not wise one, and that contraction Is not
the road to resumption?
MIR. Speaker, when the loan bill was under
discussion in this House, in March, 1866,
took octas.on to say:
"The laws of trade and the restoration Of
confidence are bringing US steadily and sure
ly to resumption of specie payments: any
attempt to force a resumption by legislation
Will defeat the object; that confidence upon
which permanent resumption ot specie paw
ments must rest will neither be engendered
nor strengthened by legislative tinkering.
The last Congress tried an experiment in this
direction by passing a law to force down the
| price OF gold; the result, was q rapid advance
and the immediate repeal of the law"
1t is slmost universally admitted that the
| return to spece payments must be gradu
| Suppose, then, that the Government of The
| United States takes the initiative; net by a
| contraction of the currency, but bv annOunc-
| ing, at rs early day as is practicable, that its
| legal-tender currency will be redeemed in gold
on presentation at the Treasury and then, to
| aid the banks in following its lead let the ma
| tonal banks he allowed to redeem in leeal-ten-
der notes thus put on par with gold by the Gov
ernmeot. With the basis of redemption thus
| broadened It could not be long before the busi-
| ness and the money of the country rested as
/ firmly as ever"
AT that time gold was at premium of
twenty-eight per cent. and declining. In
| neariy two years that have since intervened
it has fiuctuated between tweDtS-six and sixty,
and is now about forty per cent. l fully be-
iieve that bad we then left the currency en-
t:rely tIee from legislative interference grant.
ing to the Secretary OF the Treasury no
authority to disturb it, and adjusted our rev.
| enue laws 10 the collection of so much rev.
enue as would pay the expensee OF the gov
| ernment and the interest on the public debt,
and no more, the business of the country
would have continued III most prosperous
condition; that increased production would
have reduced prices generally, and that gold
and gleenbackS would now e so near each
other in price that the government could
have resumed specie payments at will.
But, sir, it is contended by some, who ad-
7 nit that specie payments can be resumed
without contracting the currency. that we
should reduce the volume, because the
amount in circulation is in excess of the de-
mands OF business, and that this excess in
creases largely the cost of all the necessa-
rles OF lie, and operates with peculiar hard
ship on the laboring poor OF the country.
Are such the facts? Have we more curI ency
than We need? Among the many theories
| to fNsu.