The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-09-04
HENDRICKS ON FINANCE.
A Criticism Of the Republican
Policy.
He FavOrs n Return to Specie Payments,
but Thinks Contraction Mt Pres
ent Would BE Disastrous.

AANESVILLE, w., oepC. o.-dOn. InOmaS "A.
Hendricks made speech at this place this at
ternoon 10 response to an invitation from the
State executive committee of the Democratic
party. After abiding to the question of the
gubernatorial election, and urging the re-elec
tion of Gov Allen, he condemned the RepubiI-
can financial policy. The firsG section of the
act for the resumption of specie payment pro-
vides for the ubstitution of silver coin for the
fractional currency. The silver is not in the
Treasury, and must be purchased. 1t is stated
that the Secretary Of the Treasury will be com
PEELED to sell between $50, 600, 900 and $40, 900,
900 OF per cent. bonds for that purpose. The
direct effect is to increase our interest bearing
debt about SAC, 100000, and the aLndal interest
about $2,O00,000. In other words it is the con
version o. domestic debt which bears no in
terest into foreign debt bearing interest The
silver coin when SO issued will not be a legal
tender beyond 49, and its depreciation below
gold will be nearly, il not quite as great as that
of the currency it is to disDlace.
The third section removes legal restrictions
and limitations so as to allow free banking 1t
also provides that upon the issue of bank bills
the Secretary of the Treasury shall redeem the
legal tender Treasury notes to the extent of 80
per cent. of the bank bills SO issu ed, until legal
tender Treasury notes outstanding shall be re-
duced to $300,O00,0 600. The effect of that pro-
vision is to substitute national bank paper for
legal tender notes to the extent of about S82,
100000. The section then provides that on and
after the LIST day of January, A. D. 1879, the
Secretary OF the Treasury shah redeem 10 coin
the q. s legal tender notes then outstanding,
on tner pres .ntation in sums not less than $50.
Thus by the process of redemption and su5sti.
tuition all the legal tender notes are to be taken
from circulation, and the currency of the cOun-
try is to be coin and bank bills. In other words,
it is intended to give the national banks the en-
tire field Do you wish your vote to approve
this measure and fasten it upon the country?
Mr.. Hendricks reverted 10 the probable ca
lanitous effects of this policy Of finance, and
said, Ills this terrible blow to fall upon the in
dustres Of. the cOuntryY
Ohio stands in the van. She should make
her great strength so felt that even Senator
Sherman, who reported the measure, will re-
spect a movement for repeal. If Gov. Allen
be elected believe it will be repealed so great
is the power of the people However earnest
we may be for return of specie payments we
ruptcy and frghtfu! increase of our foreign
public debt. Because Of my strong belief that
this measure is fraught with calamity TO the
commercial interests, the industrial pursuits
and the labor of the country, have responded
to the committees invitation"
Mr.. Hendricks continued. The expression in
favor of a return to sprcle basis is very gene
raj, but the real question Is when and how can
it be accomplished. So long as the supply of
coin is 50 small as compared with the paper
probably result in alcommercial disaster. The
people so believe 70 render it possible with
out hurt to the country coin and paper must
come nearer together IN quantity. They will
then be nearer if not uniform in value. How
shall that be brought about? By reducing the
paper currency with the present burden of ma
tiOnal, state anc local taxation and the large
volume of other Indebtedness to be provided
for? That cannot be done. 1t would cramp
business and paraiyze labor. No one desires
return to specie payments more earnestly than
l do, for believe that gold and silver are the
only real standard of values universal and
permanent All the money of the country
should be of uniform vaue, readily convertible
but we are not in that condition. Our paper
money exceeds the coin nearly five to one.
How will we bring them nearer together in
quantity that they may approach and meet in
value? Shall we commence at the top and
tear down, or at the bottom and build up?
Business, enterprise and labor, everv import.
ant interest of the country demand that the
volume Of currency be maintained to meet
their requirements, but every interest will be
strengthened by increasing the supply of COIN
which ia to be accomplished by encouraging an
increased production of our great staples that
command the foreign market, by reducing our
expenditures in foreign purchases and BY re-
yer ing the fatal policy which has
sought to make our debt q foreign
debt. When we purchase less of foreign
goods and sell more Of. our own production
abroad and cease to pay so much of the interest
on our debt abroad and pay it to our citizens,
the current of gold will turn toward our shores
aud then specie payment will be certain, ma
tional and permanent and will become the
basis of an enduring prosperity As soon as
the country and the condition of our European
trade will justify the opinion thai god is &C
cumulaing and is likely to remain, Congress
may safely fix the time and provide for re-
demption of the treasury notes. Hard money
based upon justice and the protection of the
rights of all classes must be restored Pros.
perity will follow as pure wates flows from a
pure fountain. The general paralysis of bust.
ness and employment and the distrust of usual
investments because of shrinkage in values, as
well as the condition of our currency, have
brought about differences of opinion among the
Democrats l think these differences may be
adjusted. l have heretofore expressed the
opinion that wise craftsmanship may AVOID
the extreme of a contracted currency crampipg
enterprise and labor on the one band, and
of an inflated and deprecated currency
on the other, They are the extremes
of gluttony and starvation, and health and
strength com of neither. l have an mistaken
confidence that the national council of our
party will SO adjust these differences as to
MAINTAIN our ancient doctrine in favor of
sound and stable currency, and of policies in
accordance Herewith, and with return to
specie payments always in view and at toe
same time avoiding the disasters which would
ynnx rfn1l 10, foll