The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1876-02-11

bright, unsulied honor which they also bequeathed
to us.
To-day, the total debts Of the American people,
national, State, and municipal, not SO large in
proportion to already acquired property as the
national debt alone in 1890. And when we take in
to the account the relative productive power of the
two periods, our present burdens are absolutely in
considerable. When we reflect what the railway,
the telegraph, the cotton-gn, and our endless me-
ehanical inventions and agencies have done for us in
the way of increasing our capacity for producing
wealth, we should be ashamed to pretend that we
cannot bear larger burdens than our ancestors.
And remember, Mr.. Chairman, that our wealth from
1890 to 1870 increased more than five times rapid
ly population, and that the same development
is even progressing with continually accelerate
ing ratio. Remember, also, that the annual income
and earnings of our people larger than those Of
any European country, larger than those of Eng
land, or France, or Russia, or the German Empire
The English people stand next to us, but we are
argely in advance of them. The annual income OF
our entire people exceeds six thousand millions in
gold and despite financial reyerses and revulsions is
steadily increasing.
In view OF these facts, it would be an unpardon-
able moral weakness in our people-always heroic
when heroism is demanded-to doubt their own
willing, myself to acknowledge that as people we
less honorable. less courageous or less compe-
tent than were ancestors in 1890; still less am
ready to own that the people of the entire Union
have not the pluck and the capacity of friends
and kinsmen in California; and last of all would
confess that the United States of America with forty
four millions of inhabitants, with territory sur
passing all Europe in area, and might almost say
all the world in fertility of resources not able to
do what handful of British subjects, scattered
from Cape Race to Vancouver's Island, can do 80
easily, SO steadily, and so successfully.
Mr.. Chairman, one great trouble in this whole
financial question has been the general and for many
years the growing disposition CT people not to
regard the legaltender note debt of the govern
ment, but rather something which is never to be
paid, Such was not the feeling among the people
when the legal-tenders first appeared, and think
this erroneous and injurious conception resulted
from an act of Congress, which in most vital point
changed the character of the notes. When the first
three hundred milliens of legal tenders issued
they could be funded at the option of the holder in
$40 bonds in sums of $50 and any multiple thereof
This provision gave fixed, determinate character to
the legaltender connected it with other government
issues by an equated value, made it an integral
part of our whole system Of public credit and es-
tabshed 1t, in short, as sort of balance wheel to
our somewhat complicated financial machinery. So
long as that provision in force the money of the
people was precisely as good and just the same as
the money of the bondholder. By mistaken policy,
as venture to affirm, this section of the law, on the
request of Secretary Chase, repealed after due
notice given, and the moment that was done the
legal-tender became sort of financial orphan among
us; it had thencetorward no connection or relation
wi 0fh iccY1o Ilxrf ba oornf.
measured nothing itself and was measured by
nothing, and ever since that day it has had to fight
its own battle, not merely unaided by any other
forms Of public credit but in sense constantly hin
dered by them. To establish a fixed, steady value
for 1t under these circumstances impossible
as to determine pound avoirdupois without refer
ence to the law of gravitation.
Congress having taken away the provision for re-
demption the public have naturally come to regard
the legal-tender as perpetually irredeemable; and
one of the first steps toward resumption is to change
that impression, by reVivng the funding privilege
in bond oflower late, with extended time, and a
limitation on the amount that could befunded in any
given PERIOD AS ameioration to the debtor class
the suggestion has been made that the bonds into
which the legal-tenders should be thus converted,
might themselves be made legal tender for all debts
contracted prior to the passage of the act This ea
ture may have merit, but should desire to consider
1t very fully in all its bearings before asserting to it,
and especially to its effect the value of the legal
tender note, and also as to its consitutionality.
We have done much to maintain our public credit,
but think we began at the wrong end when we made
special exerton to raise the price of bonds, and
left the legatender to take care of ITSELF Had we
devoted our energies to bringing the legal-tender to
par with coin the bond would have followed; but,
unfortunately have found that the reverse is not
the case. For myself confess always feel ashamed
to see our bonds quoted at large premium, while
our legal tenders at heavy discount; and while
there has been no little demagoguery about the bond
holding class getting their pay in coin as the law d
reefs, have wondered that the mass of ourpeope
quietly endure being deprived Of gold for their legal
tenders as the law in its spirit equally guarantees
But whether we shall succeed or shall fail in r..
storing to the United States notes the funding
privilege with which they were originally endowed
must here record my earnest protest against the
policy ofrepealing the legatender clause which has
given to these notes their great strength crcu-
lating medium. cannot see how the Government
can consistently deprive these notes of their legal
tender quality until it is ready to redeem them,
in coin on presentation; and when it is so ready to
redeem them what need or advantage will there be
in raising the question? And have never heard
any argument at all satisfactory to my mind that
the repeal of the legalender clause would tend to
make resumption easier. On the contrary, it seems
to me that 1t would render resumption far more dit
fcult than it will otherwise prove; that it would
throw an undue share of the burden on the banks;
that it would force them into the most rigid con-
traction and needlessly cripple their power of dis
count; thus punging the whole country into confu-
sion, disturbing credits, embarrassing payments,
fatally deranging business, and creating wide
spread distress among the people. 1t would be
peculiarly severe blow to the debtor Glass; and would
make resumption to them the signal of bank
ruptcy and ruin. All wise legislation toward re-
sumption will take that no needless burden be
thrown on those who have debts to pay and that in
the transition the banks shall be kept in such con-
dtion as will make them helpful as possible to the
business community. But this policy would drive
the banks into struggle for self-preservation in
which debtors would necessarily be sacrificed. If
correctly apprehend the sound public Judgment on
this question, there is no desire to destroy the legal
tender character of the note, but settled determin
alton to bring it to par with coin and by this means
bring every bank-note to the same standard. This
policy will restore the coin of the country of which
We are producing over eighty millions per annum, to
active circulation in the channels Of trade and will
$1,000 ~>SS
suredly more plentiful among the people. 1t is
humiatng fact, that producing as we do far larger
amount of precious metal than all the rest of the
world beside, drive it into export because we will
not.create demand for it at home. And the miners
of the Pacific slope furnishing the circulating
medium for every country of the civilized world ex
cept their own whose financial policy to-day outlaws
and expatriates the product Of their labor
The act providing for resumption in 1879 requires
in the Judgment Of the Secretary of the Treasury
some additional legislation to make it practical and
effective. As it stands, it fixes "a date, but gives no
adequate process; and the paramount duty of Con-
gress is to provide process And in all legislation
looking to that end it must be borne in mind that
unless we move in harmony with the great bust
ness interests of the country shall assuredly fail
Specie payment can only be brought about by wise
and well considered legislation based on the expert
ence of other nations, embodying the matured wis
dom Of the country BEAUTIFULLY promoting all legti-
mate business and carefully avoiding everything that
may tend to create fear and dstrust among the peo
pie. In other words, what most need as the out
growth of legislation is confidence, public and pri-
vate general and individual. To-day we are suffer-
ing from the midity of capital and 50 long as the