The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1869-10-29
Finance.
Fin,ncs. since The war opcncd. and the

question of money To carry il on became
vital one, has been the constant topic of
discussion. and has brought out an endless
variety Of opinions. So surprising were
the results, 30 different were they from
the calculations and prophcsics of the
wiest thatthc conclusion ut last reached
was, that no one was wise upon that
point .tbat no one could foretsll what
particular course the moncy-markct would
talr in any Immediate future. One thing
was clearly proved. that the pccuniary re-
sources of the people were marvellous,
and results were developed, rs the war
went ON, which continue to astonish and
bcwilder the student Of tho financial his
tory OF the contest. . -
Three thousand millions OF dollars were
loaned to the government by the people
of that portion Of tho country that did not
rebel. foreign nations thinking. and we
fear 1t must be said hoping, that ruin and
completo destruction. rs government,
awaited US, and therefore refusing to take
our securities and lend us money. To
their great surprise, we furnished the
money ourselves. and we did not so TO
pieces. Moreover We did il easily anil
we arc stronger than before, And now
they are eager to invest in our bonds,
and would DO still more eager, even at n
still higher rate, if the Democratic party
had not threatened. and still threaten
reputation, illegal AMI dishonorable tax
alton, or payment with something not
gold. .-Ff,. -'.aaya -t.~r,rl,l Trirrl
II il sometimes said that IL is an evil,
that so large an amount Of our bonds
should be held abroad, but really, II they
remain abroad, and we can employ the
money obtained from their sale, in build
in. railroads, and in other ways develop
ing the resources Of the country, aud
. thereby earn u greater rate of interest
than we pay. where is the injury? We
need capital in this coMtry moro than
ANYTHING else. Nature HIS done much
for us. our territory is immense, and it
must be prepared for dwelling place for
thousands from Europe and Asia and the
larthcst East. Cease to talk of anything
but paving the debt, and paying it hon
cslly and fully in coin or its equivalent.
and our bonds will remain abroad, and
if we Gun earn ten per cent, by the use of
the borrowed money and pay six. surely
the gain Is ours. raEr..
1t needs to he repeated again anlagain,
because the Democratic party is coutinn-
ally seeking 10 obtain votes by the stupid
cry OF ''bloaied bond-holdersn and the
"rich man not taxed" that there is moth
ing new in not taxing the bonds Of the
government of the United States. Ex-
cmption from taxation has ever been the
privilege Of the sovereign. The Suprehie
Court established that point in q case
brought before it, many years since. The
large amount of bonds now held by indi-
viduals, brings the fact Of their exemp-
ton from taxation forcibly to the knowl-
edge of the people, many of whom are
not. aware of the law, the existence of
which the Democratic party is by no
means jealous In recognizing or proclaim
Ing. Let ii be perfectly understood there
fore, that hc who talks of taxing the
bonds Of the Government, is calling for
what cannot be done legally or honorably,
and by So doing, proclaims either his ig-
noranco of the law or his want Of q nice
sense of honor. The Republican party
boldly. plainly, through the press, in Con-
grcss. evcrywhere, now, proelaims that
while il has the power, there shall be no
deviation from the path Of honorand hon
esty rs to taxation or payment Of the
promises of the Government. The peo-
Pile will sustain the party on that ground.
and deal with the advocates Of any other
doctrine just rs the people Of Ohio have
dealt with Pcndletou. =, rrr rr.f 81
The National Bank system has taken
the place Of the State Bank system, within
the last few years. Itwas agrcat charge,
YES. revolution in finance. and yet was
made quite easily and without damage 10
the business-mterests Of the country. II
really involved the withdrawal of almost
the entire Banking capital of the country
frum Individuals and losniug il To the Gov
crnmcnt. For the bonds thus taken. ths
Government handed TO the Banks ninety
per cent. OF their amount in bank notes
holding the bonds rs security to the COM
munity for tho payment Of the notes, Il
the banks failed to redeem them. These
notes the banks loan 70 men of business.
The people of this country have now. in
this way. the most convenient and the
safest paper currency they ever had, con-
vcnient, for il passes everywhere nj the
same rate. safe. because the security FOR
its payment is Government bond ont OF
the control cf the hank which paid It.. 1t
follows, therefore. that the failure OF a
bank under the present system, affects
neither the value or currency Of its notes.
Bya provision Of the banking law these
national banks are compelled TO set aside
each six months before making dividend
OF profits, At least ten per cent. OF their
profits as reserve fund. and this is To he
continued until the surplus Of each bank
.hatl r.,,l, t,x.t,- ,...v can't .,S Ia. n