The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1874-03-05
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10 the contractionist and expansion to the
eHpanslonlst? Who does not see that
sn,',S "n.er .he language points north or points
oou'n, Whether 1t means contraction or
,huns an.a.u ca Apahsion, depends on the. ultimate
aesa'ny .t, ~. anu disposition of the greenbacks2
ILL., amI suS INA. Is 10 be done with the green
If the greenbacks, after reacb;r, ,b, rrro.s-
ury, are to be paid out again for cnrrant sx-
penses, or in crisis for bonds. as s13 900 600
were at once of the S44, ZOO. 900 reserve
child can tell, without slate or pencil. that
the transaction is expansion, if it be exnan-
sion to add to the volume of paper money
afioat. On the contrary, ii the meaning be
that greenbacks having been paid TO the
Treasury fer bonds, which bonds are to be-
come the basis of bank circulation, are, in
the Language OF the Senator from Vermont. to
be burned up. blOtted out, and never reis-
sued. the process is contraction. Why?
Because the bank currency to be received up
OIL the bonds purchased with the greenbacks
is to be 10 pei cent less than the bonds, and
10 per cent less than the greenbacks, and it
is to be lessened also in effect by the require
ment of a reserve to be maintained by the
banks. Thus if greenbacks are to be paid to
the government tor bank circulation, and the
greenbacks are to be destroyed in place of
substituting one for the other, dc liar for dol
lar, you will have substituted one for the
other less large dimipution. This is con-
traction as sure as gravitation. The Lam
guage before us is equally consistent with
either view. In other words, in the form of
instructing the committee what to report we
have adopted declaration which looks to
the right as much as IL does to the left,
which tends equally upward or downward,
which leads to expansion as clearly as it leads
to contraction. What progress are we max
ing? What light are we shedding upon any
thing in doubt? What are we doing except
to expend the time of the Senate, and, as
politicians sometimes say, ''making a record
"a record net likely to be useful even in
tripping one more than another of the par
ties to it? 1t seems to me, all having had
abundant opportunity to express their views
at large, and to record themselves upon one
governing point, that we might now all con-
sent to let the whole matter 60 back to the
committee on finance without instructions.
Let them work out and report some theory
practically applied, giving us the detail and
machinery by which it is to be executed.
The Senate may then advisediy concur with
the committee or take issue with it. The
Senate can then perfect the work of the COM
mittee, or overthrow it altogether, and by
better light find ground approved by the
general judgment.
1t may be, Mr.. President, that am adding
to the expenditure of time by an appeal to
OtldtOlS W put an tuu W tuccc UECtItdl1 uO-
ings by allowing the bill to return to the COM
mittee without further attempts at instIuc-
tions. My apology must be that have vast
ed no time and occupied none thus far during
the debate, believing that ifby possibility bad
anything OF value to suggest it were better
withheld until something more definite had
been matured, and the time had come lor
action. Before taking my seat, however,
deem it due to frankness not to neglect to
a1l l,s,v vnio IF arpip md aoaipSf
all schemes for wholesale issues OF irredeem-
able paper money. Conscious of the many
things taught by the science of finance which
l do not know, there is one thing which i
think do know, having learned it from the
saddened and blackened annals of many ep-
| ochs. Reason and experience convince me
that we shall launch government and people
l upon a sea without shore or bottom when we
legislate the patton out upon seasof unlimit-
| ed irredeemabie paper money. A note not to
| be paid or redeemed is promise made to be
| broken. Apromise made to be broken is a lie.
And lie will upset anything, from an apple
cart to an empire. Paper money not to be paid
or redeemed is a falsehood and fraud. 1t can
never be true, and therefore it can never be
right or safe. 1t is false that by stamping the
mark OF dollar upon a bit Of paper you
transmute it into dollar. 1t is false that you
can thus reverse the truth of property and
change the nature of value. Property is the
product of labor. II it is true in value it rep
iesents the cost OF production. A barrel OF
-four is an unit of value. Why? Because, a
necessity of man, its price represents the
cost of producing it, So of diamond, a
gem, a mugs get OF gold or of silver; so of a coin
ed dollar, less only small alloy put into it to
cover the expenses OF coinage, ard to make il
harder, that it may better bear attrition. and
| to keep it out of the crucible OF the artisan.
Making allowance for this alloy, coined dol
lar represents the cost of production. Re-
deemable paper money preserves the same
reality. Wheu you have paper money re-
deemable you have only a symbolic currency,
I you have in the paper . symbol of the value
| behind it; but when you have no value be-
hind it which the holder can reach, no re-
{ deemability, you have a mere floating false
promise to pay.
say nothing of the legal tender acts, or
the legal tender policy. 1t was resorted to
temporarily in the stress of dire emergency,
to keep the flag OF the Union flying in the
field. Above all, it was supported by pledge
oft repeated, to redeem it, and am not now
arguing for contraction of the currency. This
is not the lime to discuss the legal tender acts
but now that no war threatens us, and no
overmastering necessity is to be pleaded,
guilty and mad will be the hour when Con-
gress can find no better way TO con-
duct the finances of the nation than
to print an unlimited issue of irredeemable
promises to pay. Had believed that my
voice would be needed by Senators whose
faces are set toward wild imitation, 1t sSauld
have been raised days ago in this debate. l
| advert to the matter now only incidentally
| and briefly, having risen, not to occupy the
time OF the Senate, but in the hope that Sem
| ators wonld not refuse to listen to an appeal
to stop chopping logic, splitting hairs, and ex-
| perimenting with general declarations, and
| give the committee opportunity to prepare n
complete measure upon which the eminent
| Senators around me, learned in finance and
in currency, can unite; and then those so lit
tie instructed as / will be safe in following.