Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-10-31
senator Boutwell, on the Financial situation.


Senator and E1-Secretary Of the Treas
ury Boutwell,. in lecture on the Panic
and its Remedies, in New York, day or
two since. said that while doubling the
practicability of the banks resuming specie
payment, he expected the Government Will
resume. But he thinks that the requisite
conditions have not yet been reached. The
balance Of foreign trade against us must
be permanently reduced to small irac-
ton, at least, if not turned actually in our
favor. a make a distinction" said he,
&" between the resumption of specie pay
ment and equalization of the commercial
value Of the paper currency of the eoun-
try with coin The latter is more impor-
tant than the actual resumption of specie
payments, vhich do not look on as prac-
tieable or desirable at present. If the banks
are required to redeem their currency IN
legal tender or specie, practically we shall
have resumed for the banks as well as Tor
| the country
On the much-mooteI question whether
the currency should be expanded, or con-
| tractej Mr.. Boutwell, said
We have paper currency of more than
! SOC, coo 600. 1t is not possible, think,
/ to say whether that currency IS IN excess OF
/ not. There are those who demand contrac-
ton as means of resuming specie pay
ments, and those who demand expansion
for the purpose OF relieving the country
from the present condition OF things;
! -,
| in vast quantities, and while no one wa
able to state mathematically the law oil
relation between the volume OF paper
money that may be circulated and specie
nayment maintained, yet unquestionabiy
there is such a law, for you may carry
paper currency to certain point, pu'
beyond that YOU cannot MAINTAIN specie
nayment. Take our volume OF paper to-
dav, and no one can tell whether 1t - IN
excess of that amount
Mr.. Boutwell, condemned the practice OF
banks paying interest on deposits. A mer
chant giving paper on time knows when he
has it to pay, but that given on call natures
not by time but by the apprehensions otmen'
and no business can or ought tc resist the
effects of such q practice. As to the pro-
nosed issue Of the S4l ,OOO, coo reserve. he
had no doubt Of the legality of the issue
hut it should not be used to increase the
permauent volume of currency, but to re-
heye the substantial interests Of the country
Among the interesting financial facts men
toned by the Senator, were the following
In 1869 coin bonds of the United States
nrincipal and interest payable IN com
we're worth - on the hundred at discount
of Is 10 20 per cent, and the obligations o.
the country were not payable IN com
Daring the last four years this has beer
remediel The interest bearing o6hga
tions are at par in this and the CHIEF imam
cial countries of Europe. y few months
since when the French loan was put upoI
the market the FrSnch per cent bond
wore ken in excess OF the amount offered
{ while ours were subscribed for IN moderat
sums. Tie difference was that their bond
were mt into the hands of bankers at 50 o
81 Gems on the dollar, while ours were sol
al 100 cents on the dollar.
In all previous experiences the failure
banks to maintain specie payments was du
s ~ transient causes, but the inability OF tn
t country to resume and maintain II tO-da
is due 10 the exhaustion of the war, FOL
lowed hv the Chicago and Boston calaml
tics. by which millions worth OF propert
D was swept away The present year prom
e ises better financial conditions between tn
1 trade of this and other countries. Certainl
= the nan--pecie paying countries Of Europe
5 France and Austria, will 90 on for year
: without specie, advancing it for high pre-
: miums, because the balance of trade, be
: tween them and other countries has bee
i hardly ever against them, while the balanc
: of trade has been largely against u sine
p the commencement OF the war.
In summing up, Mr.. Boutwell, said
{ have no faith in any scheme for re
To- sumption except n generous comprehennsiF
public policy, by which the industry OF tn
country shall be developed. It's resource
[ multiplied, and its capacity to supply ioI
b elsn countries with articles of productio
4 increased, 50 that the demand for gold
20 abroad shall be met by demand Tor gol
10 come to u. hope we shall resume, an
] that when we DO it shall be for life time.