The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1873-10-23
Gold VS.. Greenbacks.


A moments reflection will suffice to ac-
count for the continued difficulty OF borrow
ing money. Capitalists, naturally timd, are
appalled, at the magnitude of the liabilities of
the nsolvent firms whose statements have
become public. There is such heterogene-
Gus debris of uncoectable debt clogging up
all the ordinary sources of monetary supply
in the great financial centers that the bu ST.
ness of borrowing and lending is in great
measure suspended. The lenders have SIM
ply retired from the field, waiting till it shall
have been cleared of the rubbish which
marks the wreck of the recent panic. The,
will not readily engage in new transactions
till there has been general settlement, and
until new basis, promising stability, shall
have been established. There is universal
establishment that men reputed to be wealthy
and good for all engagements, should have
been for years under such an avalanche of
debt that they were liable in any moment of
sudden pressure 10 be swept into the whirl-
pool of bankruptcy. Continued impunty in
recklessness has had the effect to do away
with nearly every vestige OF the prudence and
conservatism which have hitherto constituted
the safeguards of our financial system. At
leagh, the reaction has come, and with such
terrible momentum, that debtors and credi-
tors alike stand aghast as they discover on
what slender foundation the stupendous
structure of credit, now shaken and totter-
ing, has rested all the while.
The gravest danger of the hour is that this
momentary distress will be dealt with en-
piricaIly. The most touching and urgent ap-
peals are being constantly made to the Pres
ident to elongate the money yard-stick,-to
declare that it shall temporarily measure four
or five or even six feet instead of three.
Gen. Grant is one of the kindest hearted
men in the world. 1t is very easy to enlist
his sympathies by any cry of distress. 1t
can readily be conceived how suscei .tible he
would be to representations that workshops
and factories were likely to be closed, en-
ployees discharged, and the ordinary wages
of labor interrupted. And when he is tear
fully told that he can prevent these calami-
ties by simply waving his hand ike another
Canute, in other words that he has but to
let loose the greenback reserve and food the
country with paper money to restore
plenty, prosperity and high prices,
it is not to be wondered at that
he lends an attentive ear to sug-
gestions urged with SO much pertinacl
ty, AID by persons whose experience and
standing entitle them to respectful considers
ton. For it is too true that men, ordinarily
judicious, will counsel the most desperate
and the most indefensible means of tiding
over present difficulty. The debaucbing of
the currency of the country to su serve pri-
vate necessities. while it will merely postpone,
will surely aggravate the final catastrophe.
In times like these, there are many who
would consent TO resort to remedial process,
es,which in moments of less excitement they
would reject as absurd and preposterou..
And yet we are on the very Threshold of
restoration to q sound currency. Gold is
within eight per cent. or SO of the poin
where it might enter into the circulating me-
dium, so to be employed till diminished de-
mand for money would compel the withdraw
al of an equal or even larger amount of pa
per, and gradual infusion OF the precious
metals into general uses.
1t is evident that the financial question
will shortly overshadow all others. People
are beginning to take sides already. We
shall soon find the country divided between
the advocates of hard and paper money. The
spectators, jobbers, stock waterers and adj
venturers will array themselves against re-
deemable currency, and the thrifty, the pru-
dent, the industr. Gus and the thoughtful will
be quite as resolutely bent on making our cur
rency equal to that of all other first class ma
tons.
Our New York money article of yesterday
announces with much positiveness that the
President has decided to issue $3,000,000 of
the reserve per week for some weeks, and to
buy foreign exchange to the amount of e.
600, 900 per week for the use of the Navy and
State Departments, thus practically re-issu-
ing a considerable part, if not the whole, of
the 81, 000,0 900 reserve. This is step in the
wrong direction and is likely to largely extend
the time within which resumption can be
looked for. With our magnificent crops, les
sened imports, increased exports, and the
consequent flow of gold from Europe to this
country, the prospect of early restoration OF
specie currency was most hopeful; but this
retrogressive action on the rart of the gov
eminent is most disheartening and will be
deeply deplored by all friends of s'hard mon
ey.''