Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1876-02-24
Representative Blaine on Specie Re-
sumption.


EXTRACTS from the Recent Speech in Congress, of
the Hon. James G. Blaine. on the Currency
Question
As said at the outset of my remarks Mr. Chair
man, the country il suffering under one of those
periodical reSulsons in trade common to all COM
merclal nations, and which thus far no wisdom of
legislation has been able to avert. The natural
res'iessness of people alive and alert us ours
looks for an instant remedy; and the danger in
such condition of the public mind is that some
thing may be adopted that will ultimately deepen
The disease rather than lay the groundwork for an
eHectual cure. Naturally enough in such Tune
the theories for relief are numerous, AMI we have
marvellous recipes offered whereby the people shall
be enabled TO pay the dollar they owe with less
than 100 cents; While those who are caught with
such deusion seemingly forget that even If this
be so. they must likewise receive less than 100
cents for the dollar that is due them Whether the
dollar that they owe to-day. or the dollar that is
Que them tomorrow. will have the greater or less
number of cents, depends onthe shifting of causes
which they can neither control nor foreSee: and
therefore all certain calculation in trade is set at
defiance and those branches of business which
take on the form of gambling are, by financial
paradox, the most secure and the most promising
Uncertainty as to the value of the currency from
"
And while that which is known as the debto- in
terest should be fairly and generously considered
in the shaping OF measures for specie-resum ption,
there is no justice il asking for imitation on its be-
half Rather there is the graveSt injustice: for You
must remember that there is large class of
most deserving persons who would be coutinu-
ally and remorseessly robbed by such a
policy. mean the Labor OF the country that Is
compelled to live from and by its daily earnings
The savin@s-hanks, which represent the surplus
owned by the iaborers of the nation have deposits
to-day exceeding 81 100 000 OO0-more than the en-
tire capital stock and deposits of the National
Banks. The pensioners who represent the patri-
otto suffering of the country. have capitalized in
Vestment of $600,00oO00. Here are s., 1000 600
incapable OF receiving anything but instant and
lasting injury from imitation. Whatever impairs
the purchasing power of the dollar, corresponding
Iy decreases the resources of the savings bank de.
positor and the pensiOner The pensioners loss
would be absolute, but it would probably be argued
thar the laborer would receive compensation by
his nominally larger earnings. But this would
prove totally delusive, for no possible augmenta-
ton Of wages in a time Of imitation will ever keep
pace with the still greater increase of price in the
commodities necessary to sustain life, except
and mark the eXceptou-under the condition wit
messed during the war, when the number of labor
ers was continually reduced by the demand for
men 10 serve in the army and navy. And those
honest-mindcd people who recall the startling ae-
tivity of trade and the large profits during the war
and attribute both to an inflated currency commit
the error of leaving out the most important ele-
ment of the calculation.
They forget that the Government was a customer
for nearly four years at the rate Of two TO three
millions of dollars per day-buying countless
quantities of all staple articles; they forget that
the number of consumers was continually en-
larglng as our armed force grew to Its gigantic
proportions, and that the number of producers
was, by the same cause, continually growing less;
and that thus presented, on a scale of un-
precedented magnitude. that simple problem IA
miiar alike to the political economist and village
trader, of the demand being greater than the sup
ply. and consequent rise in the price. Had the
Government been able to conduct the war on a
gold basis, and provided the coin for its neces-
sarily large and lavish expenditure rise in the
price of labor and rise in the value Of commodi-
ties would have been inevitable. And the rise of
both labor and commodities in gold would have
been for the time marked as in paper adding
of course the depreciation of the latter to its scale
Of prices.
If the people of the United States were fully
awake ana aroused to their interests, and could see
things they are, instead of increasing the power
VI
shortest practicable process divorce the two COM
pletely and forever. And this can only be done
finally, efectually irreversibly, by the resumption
of specie payment. Why, Mr.. Chairman 1t is
hardly an eXa@geration to say that, ever since the
Government was compelled to resort to irredeem-
able currency during the war, the assembling
of Congress and its continuance in session
have been the most disturbing elements in the
business of the country 1t is literally true that
no man can tell what day may bring forth One
large interest looks hopefully to contraction and
the lowering of the gold premium; another is
ruined unless there is such movement toward
expansion as will send gold up. Each side, of
course. endeavors to influence and convince Con-
gress Both sides naturally have their sympathiz-
ing advocates on this floor; and hence the sub
santal business interests OF the country are kept
In feverish doubtful speculative state. Mems
minds are turned from honest industry to schemes
of financial gambling the public morals suffer,
old-fashioned integrity is forgotten and solid en-
during prosperity, with honest gains and quiet
contentment, is rendered impossible. We have
suffered, thus far, in perhaps as light degree as
could be expected under the circumstances: but
once adopt the insane idea that all currency shall
be issued directly by the Government, and that
Congress shall be the judge OF the amount de-
manded by the wants of trade and You have
this country adrift rudderless, of troubles,
shoreless and soundless.
Among the anomalies presented in the currency
discussion, Mr.. Chairman, is, that the West and
the South should have large an element clamor-
GUS tor imitation. OF al sections interested in the
specestandard the west and the south stand first.
The great staples produced in those vast and
fertile regions-wheat. corn, flour, beef, pork,
hides. tobacco, hemp, cotton, rice and sugar are
inevitably and peremptorily subjected to the gold
standard when sold The price Of cotton sent to
Lowell is just as much determined by the gold
standard as that which is exported to Manchester,
and the breadstuffs sold in New York are daily
equated with the prices Of the Liverpool Corn Ex-
change. And so of all the other commodities
And yet we hear representatives of the great in
terests that are thus compelled to sell at gold
prices. resolute and determined in their demands
that they shall be allowed to purchase all their
supplies on the paper-basis. When it is remem-
bered that the whole of the annual crop in this
country. reckoning all products. reaches the
enormous amount Of three thousand millions on
the gold basis, and that the surplus not consumed
by the producers is many hundreds of millions of
dollars. and that the value of the whole is esti-
mated by the gold standard, the farmers of the
country may find profitable food for reflection in
calculating what the agricultural interest loses ev-
cry year by an irredeemable paper currency.
One great and leading interest of my own and