Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-01-26
MR. BOUTWELL, on FINANCE.

Whatever comes from Mr.. Boutwell, in
regard 80 the financial affairs Of the coun-
tn % worthy Of attention. His expert
ence as the head Of the treasury depart
unent has given him insightinto and famil-
iarify with the working of our finances,
vile his opinions are well expressed and
~ some definite purpose. The speech
= he made in the Senate the other
day wxs listened to with more attention
than any which has yet been made in that
body upon financial questions. His views
as expressed in brief form are as follows
He opposes both imitation and contraction.
Imitation would postpone the resumption
IL specie payments, and would bring
around again the disturbances of the last
three months. Contraction would be dis
astrous to the business ofthe country. lie
concludes, from an examination Of the
condition of the gold market, and the de-
cline OF the premium since 1865, that the
country is tending slowly but safely and
surely toward specie payments, and de-
sires the policy Of the Government to con-
Time in It's even course. Each of the nu-
merous financial measures that have been
presented to Congress Mr.. Boutwell, con-
demued. pointing out the results that he
thought would follow their adoption in all
cases, either contraction or imitation. Free
banks. he thought, would give to the
country an unlimited amount Of currency.
and he showed how it seemed to him evil
would follow the establishment of a free
banking system according to any of the
plans presented Mr.. Summers plan to
take up legal tenders and issue interest
bearing notes. to be redeemed with Uni
ted States bonds after two years, Mr..
Boutwell, opposed because Of its violent
contraction, which would produce imme-
date disaster. ''If we are to contract the
currency" said Mr.. Boutwell,. .'let us do
it openly and by settled system and pol
icy, so that the business men Of the coun-
Try can know what to expect and adapt
their business accordingly" The plan Of
Senators Morrill,. of Vermont. and Free
linghuysen, of New Jersey, providing fol
the purchase Of gold in the markets Of
the world to obtain the means to pay out
standing legal tenders, was opposed al
impracticable. When the five per cent
loan was negotiating in London, gold &C
cumulated there to the credit of the Uni
ted States to the amount of S2l .000. 900
The Bank Of England. fearing that thi.
heavy gold balance might be demanded
by the Government of the United State,
for the purpose Of expectation. gave no
tice to the Treasury Department that ths
whole power Of the bank would he exert
cd against the refunding proceedings un
less the department would give its pledge
that the coin should not be removed. .Thi
the department did, because it was no Par
of its purpose to import the gold coin
The fact showed the impossibility of sue
cessful proceedings Tor the purchase O
gold In Europe TO bring to this country
If We were to attempt such an undertak
ing bonds OF the United States would b
excluded from the stock markets Of tn
world. Mr.. Boutwell, opposed the CONVEX
tible three-sixty-fve per cent bond schem
On the ground that It would produce un
limited Imitation, and give speculation uu
bounded facilities. The government
should not undertake 70 become the hold
or OF the peoples money at such times q
they might not themselves have use for il