The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1874-06-02
The COMPROMISE Bill.
May %, 1874.

The new currency bill-known as the COM
promise bill-will probably make its way
through Congress and in due time reach the
President. The effort of course has been to
crafty the infationists as far as is consistent
with the possibility of executive approval,
and the result is likely to be bill nearly, if
not quite, as pernicious as the original infa-
ton measure. In this, as in all other ques-
tions where distinctly defined principle is
involved, satisfactory compromise is impos-
sible. Initiation and contraction are damet-
rically opposite processes and cannot be pur-
sued concurrenty. The immutable law of
nature prevents the intermixture of oil and
water, and, however vigorously they may be
shaken together by the empirical dabpler in
science the line of demarkation will be at
once reestablished when the agitation ceases.
Any action which looks to initiation is objec-
tionable and will notystand the test of time
Even the West, which the compromises
seek to pacify, is already showing strong
signs of repudiating the representations that
1t favors expansion, and it is debatable
question whether majority of hard money
men would not be found in that part of
the country.
In many respects the new bill is as bad as
that which provoked the memorable veto
of April %. 1t makes expansion immediate
and contraction remote and dependent upon
the good faith of the friends of irredeemab-
ity. 1t authorizes If 40 per cent. be settled
upon as the basis-the withdrawal of 50 of
legal tenders for every S. of national bank
currency issued, with the proviso that, while
the creation of bank currency is absolutely
unlimited, the legal tenders are not to be
withdrawn below $500, 900. The utmost
OF legal tenders that can be withdrawn is
SS2,000,000. But on July /, 1S76lour years
hence-the legal tenders may be funded in
the classes of bonds provided for in the act of
July IA, 1870, viz: ten year five per cents,
fifteen year four and one half per cents, or
thirty year four per cents; or, at the option
of the government they may be redeemed in
coin; but the. Secretary of the Treasury
shall reissue the U. s. notes so received,
either to purchase bonds or redeem the pub
lie debt at par in coin or to meet the current
payments for the public service.
Three defects in the new bill are strikingly
apparent:
1. The $500, 100000 restriction. If the
issue of one sort of currency is to be unlimit
ed let the corresponding retirement of the
other sort be equally free from arbitrary re-
striction.
III. The date of July l, 1878, is at least
three years too far ahead. There is too
much time for the creation of excuses for
further postponement, and the habit of put
ting off any sacrifice is easily acquired. Eng
land first assigned 1898 as the time for her
resumption and actually resumed in 1921.
III. The reissue of the redeemed legal
tenders instead Of being peremptory ordered
should be rigidy forbidden.
Without at least these changes the bill is
unsuitable and will probably encounter a
Presidential veto, as the President is resolute
against imitation, while at the same time he
is disposed to accede to the wishes of the
Congressional majority so far as he can
without infringing too grossly the sound
principles laid down in his veto message.