The Portland daily press., 1876-08-07


do not wish to exaggerate or alarm. l
simply sayzthat we cannot afford the costly and
ruinous policy of the radical majority OF Con-
gress. We cannot afford that policy toward
the South. We cannot afford the magnificent
and oppressive centralsm into which our gov
eminent is being converted. We cannot afford
the present magnificent scale of taxation. To
the Secretary of the Treasury l said early in
1865, there is no royal road for a government
more than for an individual or corporation.
What you want TO do now is to cut down your
expenses and live within your income. l
would give all the legerdemain of finance and
financering, L would give the whole of it for
the old bomely maxim, Live within your in
come"
This reform will be resisted at every step, but
it must be pressed persstentlY. We Sc to-day
the immediate representatives of the people In
one branch of Congress, while struggling to re-
duce expenditures, compelled to confront the
menace of the Senate and of the Executive, that
unless the Objectionable appropriations be con-
sented to. the operations of the government
Hereunder shall suffer detriment or cease.
In my 7fgment an amendment of the con-
stitr iot ought to be devised separating into
distinct bills the appropriations for the various
departments of the public service, and exclud-
ing from each bill all appropriations for other
objects and all independent legislation. In
that way alone can the revlsory power of each
of the two houses and of the Executive be pre-
served and exempted from the moral duress
which often compels assent to Objectionable ap-
preparations rather than stop the wheels of the
government.
An accessory cause enhancing the distress in
business is to be found in the systematic and
unsupportable misgovernment imposed on the
states of the South. Besides the ordinary eff
fects of an ignorant and dishonest administra-
ton, it has inflicted upon them an enormous
issue of fraudulent bonds, the scanty avails of
ence of which is public discredit, tending
to bankruptcy or reputation. Taxes
generally oppressive in some instances
have coniscated the income of property and
totally destroyed its marketable value. 1t is
impossible that these evils should not react up
on the prosperity of the whole country. The
nobler motives of humanity concur with the
material interests of all in requiring that every
obstacle be removed to a complete and durable
reconciliation between kindred populations
once unnaturally estranged, on q basis recog-
nized by the St Louis platform of the "constitu-
ton of the United States with its amendments
universally accepted as final settlement of the
controversies which engendered civil war;"
But In aid of q result so benefcient the moral
influence of every good citizen as well as every
governmental authority, ought to be exerted,
not alone to maintain their equality before the
law, but likewise to establish cordial frater-
nifty and good will among citizens, whatever
their race or color, who are now united in the
one destiny of common self-gOvernment. If
the duty shall be assigned to me l should not
fail to exercise the powers with which the laws
and constitution of our country clothes the
chief m agistrate to protect all its citizens,
whatever their former condition, in every po-
litical and personal right.
REFORM IN THE CURRENCY
'Reform is necessary" declares the st. Louis
store the public credit, and maintain the ma
tonal honor; and it goes on to demand a
judicious system of preparation by public econ-
omies by official retrenchments and by wise
Av-I,. oh, 1zn 40 10
assure the whole world of Its perfect ability and
its perfect readiness to meet any of its promises
at the call of the creditors entitled to payment.
The object demanded by the Convention is
tender notes of the United States. That would
not only restore the public credit and maintain
the public honor, but it would establish a sound
currency for the people. The methods by
which this object is to be pursued, and the
means by which it is to be attained, are dis
closed by what the convention demanded for
the future, and by what it demanded in the
past.
The resumption of specie payments by the
government of the United States on its legal
tender notes would establish specie payments
by all the banks OF all their notes. The Off
cial statement made on the 18th of May sho VS.
that the amount of the bank notes was $780,
O00,00O-less $20,0O0,0OO reserves. Against
these $3.50, 600 of notes the banks held
$141 1000 600 of legal tender notes, or little more
but they also held on deposit in the federal
treasury, as security for these notes, bonds of
The United States, worth in gold about $780,
900 available aad current in all the foreign
money markets.
In resuming the banks, even if it were posi-.
bic for all their notes to be presented for pay
ment, would have $500, 100000 of specie funds
pay $2800O0000 of notes without contracting
their loans to their customers or calling on any
private debtor for payment. Suspended banks
undertaking tO have uSuallv hoQD
obliged to collect from needy borrowers the
means to redeem excessive issues and to pro-
vide reserves. A vague idea of distress is. asso-
ciated with the process of resumption, but the
conditions which caused distress in those for
mer instances do not now exist. The gov
eminent has only to make good its own prem.
ses, and the banss can take care of them
selves without distressing anybody. The gov
eminent is, therefore, the sole delinquent.
The amount of the legal tender notes of the
$35O,eOO,OOO besides $34,OOO,OOO of fractional
currency. How shall the government make
these notes at all times as good as specie? 1t
has to provide in reference to the mass which
would be kept in use by the wants of business
central reservoir of coin adequate to the ad-
jnstmens of the temporary fluctuations of in
ternational balances and as guaranty against
transient drains artifcially created by panic or
by speculation. 1t bas also to provide for the
payment in coin of such fractional currency as
may be presented for redemption, and suoh in-
considerable portions of the legal tenders as in
dividuals may from time to time desire to con-
vert for special use or in order to lay by in coin
their little stores of money.
To make the coin now in the treasury availa-
Bile for the objects of this reserve, to gradually
strengthen and enlarge that reserve and to
coin as may arise, does not seem to me work
of difficulty. If wisely planned and discretely
pursued, it ought not to cause any sacrifice to
the business OF the country. 1t should tend, on
the contrary, to revival of hope and conf
dence. The coin in the treasury on the Both of
July, including what is held against coin GER
tificates, amounted to nearly $74, 000, 900. The
current of precious metals which has flowed
out of our country for the eleven years, from
July lst IL aSS 80 to june 3oth 1875 averaging
the whole period of which $617 100000 were
the products of our own Mines To amass the
reqasite quantity by intercepting from the
currency. flowing out of the county and by &C.
quiring from the stocks which exist abroad
without disturbing the equilibrium of foreign
money markets. is result to be easily worked
out by practical knowledge and Judgment
With respect to whatever surplus of legal
tenders the wants of business may fail to keep
in use, and which in order to save interest will
be returned for redemption, they can either be
paid or they can be funded. Whether they con-
tinue as currency or be absorbed into the vast
mass of securities held as investment, is mere
~ question OF the rate of interest they draw.
Even ii they were to remain in their present
form and the government were to agree to nav
on them a rate of interest making them desira-
BILE as investments, they would cease to circu-
late and take their place with government,
state, municipal and other corporate and pri-
vate bonds. of which thousands of millions
exist among US.
In the perfect ease with which they can be
changed from currency into investments lies
the only danger to be guarded against in the
adoption of general measure intended to re-
move clearly ascertained surplus; that is,
the withdrawal of any which are not a per.
manent excess beyond the wants of business.
Even more mischievous would be any meas
ure which affects the public Imagination with
the fear of an appreherded scarcity in a COM
munity where credit is so much used. Fluc-
tuations of values and vicissitudes in business
are largely caused by the temporary beliefs
OF men, even before those beliefs can conform
to ascertained realities.
The amount of necessary currency at a
given time cannot be determined arbitrarily
and should not be assumed on conjecture,
That amount is subject to both permanent
and temporary changes. An enlargement of
it which seemed to be durable happened at
the beginning of the civil war by a substitu-
ton of currency in place of individual credits.
1t varies with certain states of business; it
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