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

has been said, no price for anything. Gold,
which is used principally for the payment of
duties, was not wanted; because no one paid
duties who could avoid it. Consequently the
price of that commodity shared the general de-
cline To institute any fair comparison. we
must compare before and after the panic.
The panic occurred about the middle of Sep
TENDER, and gold had about up to that time.
and for some time previous been at ia to ZIG.
The lowest point reached during September
was 11ls, and it was not until November that
it reached to 10Y. But much fairer COMPARE
son is between the same months OF this and
last year. Before and after the issue of the
ranged from 1l4a to 11Sl. In March, 1874. it
ranged from 1124 to 113B. In April, 1873, gold
ranged from LIST to the 10th-lowest quotations
from 1l6s to lis. During the present month
from LIST 70 1eth it has ranged from 1l3{ to
since the issue of the twenty-six millions by
an average of about 4 per cent. than in the
corresponding months Of last year. The pur-
chasing power of the currency has therefore
uations have been very much less, varying only
three-eights of one per cent. during the first
ten days of the present month, while in the
same time in April of last year, it fuctuated
about two per cent. The theory that the price
of gold must and does rise and fall with the in
crease and decrease of the currency has not
been demonstrated by the facts since the close
of the war. Take for example period soon after
the war, when Congress had become somewhat
settled and had been established on peace
basis.
On the LIST of April 1866 we had, including
compound interest notes, a paper currency of
over nine hundred million dollars in circulation
and gold was at 26 percent prem. During that
year the currency was contracted more than
| one hundred million dollars, and gold had risen
| to 50 per cent. premium Now will any con.
| tend that contraction of the currency one
| hundred millions reduced the purchasing power
| of what remained in circulation nine per cent.
| or seventy-two million dollars! If so the gov
| eminent lost one hundred and seventy two
million by the operation.
Those who favor return to specie payments
| are weakening their case very much by adher-
ing to the theory that an increase of the cur.
rency necessarily reduces its purchasing power,
| and advocating contraction as the only road to
resumption of specie payment, because the
theory is not sustained by the facts in the case,
| and the policy of contraction after fair trial
has proved failure and has been repudated
| by majority of the people as represented in
| Congress. Gold, since the suspension of spe-
Gle payments, has become merchandise, and
like other merchandise, subject to the law of
| supply and demand and it has not to any great
extent it at all, being governed by the volume
OF currency. 1t has varied ten, twenty and
even fifty per cent. in a a single month, at Pc
RODS when there was no change whatever in
| the volume OF the paper currency. Sometimes
this variation has been on account OF demand
! for legitimate use and sometimes on account of
speculative demand, but in either case the
| price was governed alike by the demand and
had no relation whatever to the Volume of the
paper currency The1 constant fluctuations in
the price of gold without any change whatever
in the volume of the currency, prove conclu-
slvely, that it is not regulated by the amount of
| paper in circulation, bnt is governed mainly by
other.and indep, ndent causes.
l am opposed to an increase of the legal ten
der currency in any event (and equally opposed
to its contradictory or to any increase of the cur
rency whatever, without provision being made
for resumption of specie payments by the gov
| ernment. But believe we can have such an
increase of the currency as the growing bust
ness of the country north and east as we'll south
and West requires, and provide at the same
time for steady, gradual and certain return to
| a specie basis.
1 believe we shall best reach the result by a
| careful examination of our financial experience
| and of the needs of all sections of the country
| and not BY blind adherance to pet theories,
based upon the experience of other countries,
| at other times and under other conditions. 1t
will not be reached by ignoring, or treating
with contempt large section of the country,
which think themselves agrieved by denial
| of privileges which other sections are enjoying,
| particularly when that section has become ter
| rbly in earnest on the subject and has the
| power to enforce its demands.