The Republican journal. [volume] (Belfast, Me.) 1829-current, 1875-09-16
The Financial Question.


ter. To act upon the belief that we must
have immediate specie resumption, may
be as disastrous as the widest initiation
Moderation, caution and the careful adap-
tation Of measures to the needs OF the
country, will be the correct policy. Wis
dom may be learned from the experience
Of England in this particular, and the his
tory of her paper money and public debt
In the year 1903, after the accession of
William III. to the throne. the national
debt of Great Britain first began to ac-
cumulate, ''by borrowing money on the
credit of the state, and laying its payment
on posterity" In the year 1899, the COM
mencement of 1.-The great European war
of the French revolution" the national
debt had reached the vast sum Of f244,-
OOO, 900, which was increased by said wars
to the prodigious amount of f620 500 AL,
making, at the conclusion of peace on the
LIST OF February 1916, an aggregate debt
of 1854 49,, AL. with an accommodating
interest of f32 ,5O4 per annum 1t
was down to the last period of time that
the principal part of the debt was con-
tracted Under the 'instinctive sagacity
of genius by the sinking fund policy,
introduced by Mr.. Pitt entirely discharged
the debt existing in 1899 by 1913, so that
the entire debt of England is the result of
the last ninety years accumulation.
The gigantic struggle which England in
1888 engaged in with France, marshalled
by Napoleon Bonaparte, her instructions
at home, commercial disasters, popular
discomfort and suffering, 'drains upon the
specie of the country which the heavy
loans to government had made all COM
bined to create a general feeling OF doubt,
distrust and insecurity which. with a gen
eral dread of invasion, created an anxiety
in every man to convert his paper into
cash. The consequence of this was gen
eral rush upon the banks, which necessi
tated and justified, in such perilous cri-
sis, an authorized suspension of specie
payment by the Bank of England on the
10Th day OF February, 1897. The suspen-
sion was at first limited to the 24th day of
June following, but was renewed from
time to time, and in November, 1897, was
continued till the conclusion of @cner-
al peace"
Thus was opened the broad fields of
paper money speculation and compcti
ton; thus began the wild rage of paper
money initiation and the rapid accumula
ton Of national debt which is to -day
tam, and the scourge and oppression of
every laboring poor man whose foot
presses her soil. The obligation on the
bank to pay in specie was never again
imposed till Mr. Peels act in 1919 There
was an absolute suspension of specie pay
ment for period of twenty-one years
and government paper made a legal ten
der in all the business transactions be-
tween man and man. The immediate
ton introducing the paper system" into
Great Britain was the restoration Of con-
tidence to public and private credit, inf1a
ton of prices and all kinds of business, wild
schemes of speculation, increased wages
and general prosperity, enabling England
and Europe on British pay to triumphant
ly carry on and successfully terminate the
most lengthy, gigantic and costly war in
the annals of nations, and in addition to
all this, largely contributed to aid the
payment of the national debt, existing in
1899, under Mr. Pitts sinking-fund policy.
But when resumption came in 1919 the
consequences were fearful to contemplate.
TO the capitalist and the great industrial
class OF people it was one vast train of
unutterable woes and calamites; woe to
the laboring mans increased wages and
his very employment, woe to the various
schemes of speculation and expanded bust
ness and commercial transactions. 1.-The
industry of the nation was speedily con-
gealed as a flowing stream is by the Sc
verify of an arctic winter" 1t was just
such forced resumption as the Republican
party leaders propose tor this country in
1879, and everybody cried out in their
anguish and despair from widespread
ruin and disaster. 1t was like trying to
force all the light of the sun into the hol-
low Of a horn, or the contents of the sea
into the capacity Of a tub. Everything
was in disorder and out of proportion.
Commercial and bank disasters followed.
The best mechanics in the nation were
compelled to go to soup houses and de-
pend on public charity for their living;
paupers were multiplied by hundreds of
| thousands; crime increased in every form
business men, laborers and capitalists were
discouraged and dishcartcncd, and ruin
stalked abroad on every hand We ask,
| why all this? 1t was for the very COM
prehensive reason that specie resumption
tor all paper circulation was effected
through forced legislation and there was
not enough specie in the country to float
necessary volume Of currency to tran
sact the business in the prosperous condi-
! ton in which it was found at the time.
The demand was greater than the supply.
The paper circulation being contracted
! beyond what the business of the country
| would easily absorb and employ, public
confidence was destroyed, manufacturing
was without profits, commerce declined,
| agriculture was unremunerative, and CON
fusion, stagnation and bankruptcy follow
ed in one broad train of ruin in all the
business pursuits of men. By this pro-
cess of legislation, debts and taxes We're
nearly doubled, and the ability of the peo-
| pie to pay reduced one-half, thus bringing
disaster and dis traes nnnn both creditor