The Portland daily press., 1871-09-04


of the large school gathered here.
The Democratic Financial Scheme.
GEN. GARFIELD's CRITICISM OF PENDLEToNIsM.
Having failed to get an answer from any
source as to the position of the Maize Democ-
racy on the financial question, we are fully |
authorized to conclude that they mean precise |
" what they say in their platform, and that |
they are in harmony with Gen. Ewing and the |
Democracy of other States. Gen. Garfield
who is now on the Ohio stump, gives in late
speech an explanation of the more recent phase
OF Pendletonism which our readers will peruse
with interest:
The most remarkable feature of Democratic
finance is that clause of the platform which
Gen. Ewing calls the . Financial New Depart
ure, and which he seems to regard as "a dis
covery of great value. Justice to its author
should have led the Convention to inform their
followers that this plan is borrowed (though
bunged in the borrowing) from that ingenious
financier Mr.. b. f. Butler, who proclaimed it,
in speech Ia Congress several months ago,
device to save the nation from what he called
S. the barbarism of gold and silver" as circu-
ating medium. The new plan proposes, first,
to issue greenbacks and cancel the fve-twenty
bonds, and then issue three per cent BOND,
greenbaeks. These two classes of paper are to
be geared together by a kind of double back
action arrangem5 MT, by which man may
change his investment from one to the other
| at his pleasure. The feature has been strongly
| approved by the brokers of New York city, who
will be glad to have the Government pay in
terest on their capital when they cannot them
selves employ it in speculation. This new
device has two important aspects: First, its
| relations to the public debt and the Treasury;
and, second, to the currency and its relation to
| the industry aud commercial interests Of the
people. So far as it relates to the Government
and its creditors, it is simple proposition to
repudiate half the interest OF the public debt
altogether, and to pay the other halt in curren-
cy greatly more deprecated than any we now
have. venture to suggest TO these gentlemen
that the cost of printing and engraving the new
bonds, and the expense and trouble OF eXchang
| ing them for the old, can be avoided by the
| passage of simple act to the following effect:
BE 1t enacted &C., That the Treasurer of
| the United States shall hereafter pay but three
per cent. per annum, in currency as interest on
| the outstanding obligations of the United
! States known as Five Twenty bonds, in lieu of
six per cent in gold now repaired by law; said
| bonds to be exchanged at par for greenbacks
This act shall take effect from and after its pas
| sage, every law, obligation contract of the
| United States to the contrary nOtwithstand
| ing"
This would certainly accomplish the object
of the new doctrine, and it is as easily under.
stood any other form of robbery.
The effect OF this scheme ON the currency
| would be disastrous to the business Of the
| country as its dishonesty would be TO the honor
and credit of the nation. Gen. Ewing thinks
| that to effect the conversion of the bonds and
| to meet the wants Of trade 81 900 100000 of
| greenbacks will be sufficient at first, but his
| generous and philanthropc nature will not be
| limited by that small measure of blessing, and
| 80 to meet the remnant of interest not exploit
| ed away by the billion of ISSUE lie will emit an
| additional % 100000 each year, and thus make
| the printlng-press pay our interest. This plan
calls to mind the mad days of Continental
| money, when a member of the old Continental
| Congress exclaimed, "Do you think, gentle
| men, will consent to load my constituents
| with taxes when we can send TO the printer
and get wagon load of money, one quire of
which will pay fol- the whole?" Gen. Ewing
| has quite eclipsed the wisdom of that member
of au early New England Legislature who pro-
| posed to abolish all taxes and pay the expenses
| of the State out of the Treasury.
But the Generals philanthropy does net
stop with printing the interest OF the debt out
| of exstance. He says: "But we are told that
the legal tenders will be a debt outstanding
| when all the bonds are pai1. They will be no
| debt in any proper sense OF the word. for" says
| be, "the government will keep them circus
1 ation with an annual increase sufficient to
| furnish the people with money and keep down
/ interest," and thus the curse of the debt will
| turn to a blessing. It requires tar more than
/ ordinary courage to run such a tilt not oaly
against all the settled msxims of political econ
omy, but also against the multiplication table
itself The General assumes that TO increase
the volume of currency will reduce the rate of
interest. Both history and economical science
are against him. In'eyery country which is
cursed with a deprecated paper money the
| rate OF interest is higher than in specie paying
| countries. The rate does not rise the mme-
/ date consequence of the increased volume of
currency, bat because of the greater risk TO
/ which the lender is exposed on account of the
| disturbance and uncertainty of values caused
by the increase.
Almost in the exact ratio of our return to
| specie values we have seen the rate of interest
coming down, and We now see the government
/ reminding ITS debt at live per cent. Because
| confidence is returning to business, prices are
| coming down toward their old level. General
Ewing wholly ignores the distinction between
capital and money. He seems to think that
| should the treasury print ton of greenbacks
| the people will have that much additional to
| lend. But the people can only get this ton of
paper by buying it aud paying for it. and the
purchase will neither increase their capital
nor their power to lend. No principle is bet
ter settled than this, that the rate of interest
depends not upon the amount of currency in
circulation, but upon the security or insecurity
OF Investments, the demand for loans, and the
supply OF surplus capital which the owners are
willing to lend.
Gen. Ewing also complains that the country
has not currency enough for its business 1
answer him by the fact that of the $54 100000
of National Bank currency offered to the peo-
Pile by the Act of July, 1870, less than $20,O0O,-
900 have been called for. That fact has STAG
gered and silenced all the inf1atonsts except
Gen. Ewing. Aud during the last session do
not know of one petition to Con yress for an
increase of the currency.
1t is deluSlOn and a snare to suppose that
initiation will benefit the business of the conn.
try. Since the Inauguration of Gen. Grant
the purchasing power of the currency has in
creased p per cent in consequence of its en-
HANGED value. The 500 0OO 900 of outstanding
CURRENCY ia
100000 900 more in gold than it was in March
1863. Wehave been slowly making our way
back to solid values and to the steady indus
tries of peace. The Democracy of Ohio pro-
pose to push us out again upon the sea of
paper money, on whose waves we must toss
more wildly than ever. Our money is no long
er to be the money of the world. Though our
trade of billion year with foreign nations
must be in gold and silver, yet we are to have
among ourselves debased and irredeemable |
paper currency, whose volume and value are |
to depend upon the folly and caprice of politi- |
cal parties, and upon the accident of vote in |
Congress. We are invited to re-enact the folly
OF assignats and continental money. And |
thls IS the policy OF party that breaches loud
ly against the dangers of Capitalization. When |
the Government turns banker, and when the |
value OF every product is made to depend upon |
few men at Warrington, we shall indeed |
nave most dangerous Capitalization of power
This is the policy of the party that still boasts
OF Jefferson as their NEUTRALITY-SUSPICIOUS. who
paper money has some advantages is admitted: |
but its abuses are inevitable; and by breaking |
up the measures of value, makes lottery of |
all private property, cannot be denied''
Lord Kanes tells us there is a sixth sense in |
man, which he proposes to call the sense of |
completeness 1t must have been the exercise |
of this sixth sense that led the Democratic
Convention to conclude their financial depar-
ture resolution with declaration that the true |
way to resume specie payments is to make Gus
toms duties payable in currency. And, thew
had in the previous paragraph resolved in favor
OF currency which is never to be redeemed |
1t has never been my fortune to see space of |
twenty lines of printed paper which contains
so great an amount of stupid absurdity com
bined with so much shameless and infamous
rascaliiy as are found in the twelfth resolution
OF the Democratic platform
SHARP SHooTING.-A certain Mr.. Smith
having denied the authorship of a scandalous
article in the Maine Standard in regard to Mr.
Blaine's wealth, the Kennebec journal in
printing the denial, gives Mr.. Pillsbury a sharp
hit. Those Kennebec newspaper men will
succeed in getting personal if they keep on:
"Mr. Smith having discamed all responsi-
bllity in the premises, a well authenticated re.
port, at least very violent presumption, sug-
gests that Mr.. e. f. Pilsbury is the author of
hn SNAn n.l N.~l- 1