Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1869-02-05
IH1E"- Ut IIIF
TWO DOLLAR YEAR
Vermont Members on the Finances.

cial bill. Hon. W c. Smith Of this Dstret,in a
late speech in the House, advocated plan very
similar to that of Mr. Poland The Montpelier
Freeman. whose editor will be a member Of the
next Congress, supports Judge Poland's bill,
and claims to have suggested its essential fea-
lures early in December This bill, as intro
duced BY Mr. Poland and advocated by Messrs
Smith and Willard, may, therefore, be said to
represent the views of the Vermont delegation in
the House Of Representatives. Though there is
little probability that this or any important
financial measure will be adopted at present, the
people Of this State will be glad to see that their
representatives in Congress are giving careful
study to the leading question Of the day.
Judge Poland's bill, as We understand it,
seeks to effec; two objects-the substitution Of
long consols for the fye-twenties and other bonds
Of the Government, and the conversion Of all but
hundred millions Of the outstanding green
backs, into national bank currency The new
bonds are to run thirty and fifty years, and are
T. bear interest, respectively, at the rate Of four
and one-half and four per cent per annum. The
only question about this part Of the measure is
Of details Of the rate Of interest and the time
proposed Whether the holders Of the present
bonds viii be willing to exchange them for the
new ones or not, can only be learned by expert
ment. This proposition is perhaps as feasible as
any in that respect.
The second feature Of Mr.. Poland's bin seems
to ris to be open to some objections. In the first
place, is it plain that the country at large wants
any more national bank currency, Of the two
the greenbacks are the fiyorites now, and it
would be unwise Is exchange them for something
no better 1t Is true that the national banks are
very unequally distributed. The West has COM
paratiyely few and the South almost none. But
the demand from these sections Is for legal ten
dcrs, not for national bank notes There appears
to be no very solid reason for this preference,
but it undoubtedly exists, and our Legislators
cannot afford to disregard it
The Freeman thinks the plan viii help Us to
the resumption Of specie payments in this way
Judge Poand's bin viii withdraw greenblcks
without contracting the currency, or boarding
gold; and when the greenbacks are Withdrawn
We shall have got back to specie values The
banks and everybody can resume specie pay
ment as soon a the government resumes; and |
the government can only resume by reieeming
and canceling its notes, which now are the
standard Of value.
Now the withdrawal OF the greenbacks viii bring
US to specie payments il they are replaced by I
specie or its equivalent, not otherwise The I
mere conversion Of $500, 900 900 of one form of
paper money to another equally deprecated Is /
not resumption. Furthermore, the Freeman
sets out with the assertion that contraction /
must preceie resumption, and then apparently .
defends Judge Polaud's plan because it viii .
enable Us to resume ,cjth0u contracting
Ia discussing remedies for initiation the whole
volume of the paper currency must be con-
sidered, the national currency as well as green
bac4s. Mr.. George Walker estimates the
amount Of paper money in circulation at about
S600,000,00O; Gen. Butler, at about $780,
090, 900; while Senator Shermans calculation
rests at S745,O0o,Oo0. Now when We consider
that the whole currency, specie and paper, in
1850 was only about $500, O00, 900, ami was
then amply sufficient, the need of contraction
becomes exceedingly clear. Allowing that the
growth of the country since 1860 requires an
increase in the circulating medium of $780,
100000, which is a liberal estimate our cur
rency is now too redundant by at least $780,
100000. 1t must be reduced by this amount
We will not say before resumption can be elect
81. but tefore prices and business can be re-
stored to a healthy basis.
Judge Poland bill provides that one Hundred
millions Of the greenbacks are not to be converted
into national bank notes. This amount, We
suppose. Is to be redeemed with coin. The Gov
eminent could no doubt redeem this amount in
a short time, from its reserve gold, but could
specie payments be maintained on this narrow
basis There is certainly much reason to doubt f,
i. Even if the national bank currency should ,
appreciate to par, nearly the whole amount Of
gold in the country would have to be retained by
the banks for the redemption Of their notes. I
The impOssibility Of doing this when we are
sending to Europe each year nearly fifty mill d
ions in gold for interest on bonds held abroad, b
md when there is an annual balance Of trade
against US Of seyenty-tiye millions, Is easily COM
l.
In short, we are inclined to mistrust any plan
hat pretends to give US the benefits Of contrac- a
ion without any Of its inconvenience. The Z
'nlY way to contract is to contract. 1t is 4
'ainful process and will cause much distress and
many failures The Treasury once began the
york, but as soon as the effect was felt cry went
Up that compelled it to stop. But when life can
My be saved by the amputation Of limb no y
wise man hestates to call in the surgeon. In v
his case it Is not natural member but an "
excrescence that must come of