The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1873-10-16
The Financial Question.

The Financial Question.
If as it is generally assumed, the Pres-
dent gave the country his views on the finan-
cial question for the purpose of calling out
the sentiment of the country on that impor-
tant problem and each of the journals that
have expressed opinions thereon are marked
and mailed to him, His Excellency must be-
gin to be the most perplexed man in Amer
lea. Indeed, to use a familiar term there
must be 'heaps of trouble on the old mans
mind" for there have been about as many
opinions expressed as editorials published.
If Gen. Grant reads all these opinions he
will find that there is one point in which all
the newspapers concur, viz: the resumption
of specie payments Immediately or at the ear
lest possible day. The writets may reach
this conclusion by different ways and some
by indirect roads, but all reach it. Indeed,
there never has been a time when there was
so apparent anxiety on the part of all classes
to reach that point when the circulating
medium of the United States will be the
money of the great family of civilized nations.
The general public has fully decided that
there can be no permanent stability so long as
we present the spectacle of a nation with
three or four kinds of money, of as many diff
ferent values.
There are, however, few journals of abili-
tywho see the way to specie payments and
a firm financial basis by further imitation of
the currency. For instance, the Phila-
delphia Press begins its letter of advice to the
President by saying that the country was
nearer specie basis in September before the
panic brought about the sharp contraction
of the currency than it is to-day; and it fur
ther adds that If the Government had been
authorized TO issue hundred million dollars
of greenbacks at that time, we should now
be on the very eve of specie payment! There
are others who still hold that the circulating
medium of the country is not sufficient to
meet the growing demands of business and
really favor further issue of United States
legal tenders. 1t will puzzle the ordinary
reasoner to see how this policy would bring
the paper dollar to be worth the gold one
the real point to be reached. All the fixed
laws of supply and demand are against this
theory.
If is urged by another class that there
should be some plan to make the currency of
the country fexibe-some method of manip-
ulation by which there shall be ample money
at special seasons to do the business of the
country and not too much at other times.
For instance, from September until mid-win-
ter, from fifty to a hundred millions are
required to move the agricultural products
the West and South, that will be out of use
when this is over until the season returns.
During the time that this large sum is not in
Its owners desiring a small return de-
post it in banks aud draw low rate of inter-
est. The banks in turn must use it so as to
pay them, and the result is that when the
money is wanted by the depositors the banks
cannot pay it. 1t was this state of things ard
the unusually heavy investments in stocks
and bonds that brought about the recent pam
ic. 1t is not an evidence that there is not
money enough but that it has been put out of
the way and invested in property where it
cannot be reached. Is there were a hundred
millions more of greenbacks in circulation the
result would be the same.
The remedy suggested by the President is
that the Government issue convertible bonds
bearing low rate Of interest, which may be
sold by post-offices and redeemed by the same
on call.
At first sight this scheme would strike the
country as an attempt of the Government to
engage in banking, and for the sake of pre-
venting financial troubles, assume large out
lay on account of interest. 1t might, how
ever, withdraw sufficient quantity of its ex-
istidg bonds to equalize the interest paid on
its bonds issued to regulate the currency.
The suggestion is worthy of consideration
and in some form it may be adopted.
The President also speaks favorably of a
free banking law, by which bill holders will
be secure, and the peculiar privileges of ma
tional banks opened to all who desire to en-
gage in that business. There is an indefi-
niteness about free banking that its friends
have failed to make clear. On the surface if
looks like an expansion of bank currency It
may have its corresponding checks; but any
scheme that will result in a greater volume of
paper money until a dollar of paper is as
good as a gold one, should not be thought Of
But, after all, is not the whole difficulty
solved when the Congress shall decide to re
turn to specie payments and the country
adopts the currency Of the world? When
dollar in the United States is the same as in
England and Germany, will not the demand
for money at special seasons be met by the
fund of the world? When there is greater
demand for an article of commerce in one
country than In another, by natural law. it
flows from that where it is abundant to that
where there is scarcity. By this same law,
when the nation uses the money of the world,
It's seasons of scarcity will he tided over by
aid from those where it is more abundant.
From this source much Of the money needed
to give fexiblity to our circulating medium.
would be cerived, and the participation of the
Government avoided 1t is strange. too. that
the infatonists, in opposing specie res,,mn-
ton, should so persistently ignore the fact
that vast volume will be added to the circu-
lating medium when gold ceases to be NOR
chandise and becomes currency. 1t will SUM-
ply the place of greenbacks in reserves of
banks, and all classes of money will flow
freely into the channels of commerce.
The solution of the financial question that
has come to be the most important in the
country, lies in the resumption of specie pay
ments, and all other devices will prove impo-
tent and worthless.
Inc German born citizens of Washington
probably didn't think how II uorld sound