The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1874-04-14

| quences involved are SO momentous that it be-
hooves every man who can exercise any inf1u-
ence in the right direction to persevere to the
| last hour in upholding and disseminating the
principles of political economy which must be
engrafted upon our system of government be-
| fore we can resume the career Of prosperity so
summarily checked by the paper collapse of the
| departed year. YARMOUTH.
The Secretary of the Treasury and the
Forty. Four Million Reserve-.Wiil Fig
ures Lie?
| To the Editor of the Press:
In the reported colloquy between Mr.. Bur-
leigh and Gen. Butler which occurred in the
House of Representatives during the recent de-
bates on the currency question as published in
the newspapers, Mr.. Burleigh charges that the
Secretary of the Treasury thought fit during
thepapic to issue twenty-six millions in green
backs, which were then at 10Y; that he thereby
reduced the value of the greenbacks per cent.
at once, making loss of $35, 900, 000-there be-
| ing seven hundred millions in circulation-and
run the government in debt $26, 900, 900, MAX
ing total loss to the Government of $61 ,OOO-
900. That "Gold, before the panic, was at
per cent. premium, and we were going along
smoothly" This very serious charge made
against Republican administration for the
issue had the sanction of the Presidency by
Republican Represen tative, and if true, is proof
of such weakness or corruption on the part of
the administration as to merit for it the sever
est condemnation from men of all political par
ties. If not true, not sustained by the facts in
the case, the charge ought not to have been
do nd how haor do Oh -,
tice to the administration be corrected. And it
is all the more important that this should be
done, because the same ridiculous statement
has repeatedly been made before, by Republic
cans aud Democrats, and if not refuted may, by
this constant reteration become accepted as
true Now what are the facts in the case, and
what the circumstances under which tt twen-
ty-six million dollars referred to was issued?
1t was issued during financial panic almost
unprecedented in the history of the country,
many of the largest and apparently strongest
banking and com mercial houses in the country
had been compelled to suspend Savings banks,
Trust Companies, and National Banks were
closing their doors in the face of their deposi
tors, and the banks which maintained the SEM
blance of solvency were unable to redeem their
liabilities with currency The business of the
country was completely paralyzed. Stocks,
real-estate, merchandise, everything, was I'M
salable, and of only nominal value. Nothing
was in demand except currency. Even gold
was neglected, as few goods were being with
drawn from bond, and comparatively nothing
was being paid for duties. At the very hight
of the panic, when it looked as though the bot
ON was about to drop out Of everything, the
were appealed to by leading financers of New
York and urged to use the funds of the govern
ment to relieve the pressure and restore conf
dence. These appeals were steadily and fmly
resisted, as there was no lawful authority to
use the public funds for such purpose, and the
only relief voluntarily afforded by the govern
ment was by a continuance of the policy, here
tofore adopted, of purchasing government
bonds. Secretary Richardson was reputed to
have said, at a conference with the financial
men of New York, when urged to issue curren-
ey to stay the panic and relieve the business of
the country, that it was not CHS funeral" But
he soon found that if the Treasury would not
interfere vita the business of the country. the
business of the country might very seriously in
terfere with the Treasury. The paralysis of
business had cut off the receipts of the Treasu-
ry to such an extent that he must do one of two
things, viz. Either draw on the forty-four mil
lion reserve, or allow the Treasury to suspend
He had on hand forty-four million dollars in
currency, which he, and his predecessor, and
the Attorney General believed he was authoriz-
ed to issue; and the alternative was, to use it. or
allow the Treasury of the United States to be
proclaimed bankrupt throughout the world
The wisdom OF the act is to be judged not alone
by the consequences which followed using the
currency, but also by the consequences which
would have resulted from not issuing it. Will auy
one figure out how much it would have cost the
government, how much it would have cost the
country, to have allowed the Treasury to have
become bankrupt during the panic? The
amount would be expressed by hundreds of
millions. Now having made up one side of the
accountable Dr.-let Mr.. Burleigh complete
the account by making the Crit side, and the
balance be what has been made or loss by the
operation. tAr-7..-s,~ .f
Mr.. Burleigh has been ship-master. Sup
pose that during some terrible storm at sea, in
order to save his vessel, he was obliged to cut
away his masts and throw overheard part of
his cargo, and then making for the nearest
port, to expend ten Thousand dollars in repairs
before he could proceed on his voyage And
suppose on his return home, his EMPLOYERS
should, instead of commencing him for his eff
forts in saving their property, conclude TO
''take an account of Stock and charge him
with the damage to the ship, the loss Of cargo
and the cost of repairs, giving no credit for the
ship itself and cargo saved. Would not Can't
Burlelgh IN such case, after looking in his
employers face to see if they were serious. in
form them there was Cr., as we'll as a DR..
slae 70 tne account? But the case is stronger
country in debt $26, 00O, 0OO nor one dollar nv
issuing the currency unless it was given away
when no one pretends. And the Statement
tnat tne oeot was increased by issuing the Ie-
rtA
could scarcely have been serouslv mada n MI ~
S26,0OO ,O0O issued vas for the payment of ~
penses which had become debts ava;nst A.
government, debts contracted under authority
and direction of the laws of Congress. II wss
no more running in debt than it WouId he for %
merchant who settles accounts which accrue
in the course of his business and which he has
no available funds to pay, by giving his notes
for the same amount. ~
The issue OF the currency having been in.
creased under these circumstance and H.
Secretary finding his receipts usnfGciont ~
meet his current expenses on the asson,hI;, w
OF congress laid the matter before them He
regarded the increase of the cnrrancu os Ho
temporary expedient resorted to only as; as q
extreme emergency, and desired to rat;re Az |
amouhs linus issued as soon as the means could
be supplied by increased taxation The Gu,
tnis1ee OF ways and Means very politely bowed
the advice, that he had better reduce eHnsns .n
altnough he was not spending a dollar That he |
was not compelled to BY the laws. "A 'na' ne
The Having reduced the amount charged against
t thH atln'stratlon from sxty-one million to
eniIty-nve millions, let us examine this item |
ana see II it can properly be allowed. II is
SAL .na. ny issuing the twenty-sx millions
the purchasing power of all the CURRENCY hos
been reduced t1 thirty five millions. In other |
w9fus enss. everything purchable has advanc-
The facts are otherwise. Everything in ge sn
al, stocks, bonds, real estate, merchandise and |
even gold is lower now and has been during
the last two months than for the month pre-
will Il