The New York herald., 1876-02-11

DTIng DTOlIS Supply
to that which will steady system and offset
the drains that weaken other directions But
ships built on the paper basis cannot compete with the
lower priced Of the gold basis and whoever advo
Gates perDetuity Of paper money this country
fesses his readiness and willingness to sacrifice the
navigation and commercial interest for all time.
After defending the course OF the republican party
on the financial question since the war and still for
considering the benefits to the different sections Of the
country and the various branches OF industry which
would accrue from resumption Of specie payments,
Mr.. Blaine proceeded
We are told, however Mr.. Chairman in tones OF
most solemn warning that this country is not able 10
maintain It's paper money at par with coin Sir | re-
iect the suggestion with scorn and it me- If
could be persuaded Of It's truth should be ashamed
rise in the American Congress and proclaim H. Here
is California. OF youngest States thirty
bers OF the Union being senior to her with vast ter
rtory and sparse population able TO maintain coin
payment and maintaining IL through financial storm
OF terrific force and by Of reganng position
of sovcncy and safety with rapidty and certainty to
which the paper basis affords parallel but only
trast Here 70 the north OF us lies the Dominion Of
Canada stretching from Newfoundland 20 the borders
of Alaska with an inhospitabe climate soil in great
part inferior commerce checked and suspended
half the year by frozen rivers, manufactures scant
crude and undeveloped with population throughout
the whole territory not so large as that OF New York.
and with wealth greatly inferior that of the Empire
State with debt large, in proportion TO people and
product and property our own yet Canada finds
no difficulty maintaining specie payment And at
Toronto Montreal and Halifax the American tourist is
Inocked and made ashamed by the sight OF coin dollars
currency among people whose wealth aud resources
but an inconsderable fraction Of our owp magnih
cent inheritance and possessions.
When the national government was organized in
1889 the liberal estimate OF the property OF the
thirteen States placed at 5000 COO o00ess than
the wealth of Boston or of Chicago to-day. The popu
atIon was 4 600 900, showing property Of $3.50 to
each inhabant BY the census Of 1870 our population
had increased 10 81, OOO 600 and our wealth TO
$50 0O0 600 600 showing $500 per capita for the whole
people Our population had increased in the eighty in
tervsnng years not quite ten fold but
wealth increased
riots of 1890 with their slender resources,
did not hesitate to assume national debt Of 500 600
being more than seventh OF their entire posses
sions; and il occurred to them that abandon
ment OF the specie basis would make their burden
lighter. They knew from their terrible experience
with Continental currency that all their evils would be
painfully increased by resort to paper money And
in their poverty, with accumulated capital with
manufactures in eeblest infancy, with commerce un
developed with low prices Tor their agricultural prod
ucts they maintained the gold and silver Standard
they paid their great debt they grew rich in the prop
eriy which inherited but lar richer in that bright
unsullied honor which they also bequeathed 10
GREAT
Mr. Chairman, one great trouble in this whole hnan-
cal question has been the general and tor many years
the growing disposition Of our people not TO regard the
legal tender as a debt Of the government, but
rather as something which is never 70 be paid. Such
was not the feeling among the people when the legal
tenders drst appeared and think this erroneous and
injurious conception resulted rom Of Congress,
which IN most vital point changed the character Of
the notes. When the first three hundred millions OF
legal tenders issued they could be funded the
option OF the holder, in ive-twenty bonds sums Of
"A
fixed determnate character TO the legal tender, con-
nected il with other government issues by equated
value made II an integral part OF our whole system OF
public credit, and established II, in short
sort OF balance wheel to our somewhat COM
plcated financial machinery. SO long as that provis-
in force the money OF the people precisely
good and just the same as the money OF the bond
holder. BY mistaken policy, as ! venture to AFFIRM
this section OF the law ON the request of Secretary
Chase, was repealed after due notice given, and tho
moment that done the legal tender became sort
OF financial orphan among U.S. 1t had thenceorward no
9TH tba
government; IL measured nothing itself and was
measured by nothing, and ever that day II has
had to fight its own battle not merely unaded by other
forms OF public credit but IN sense constantly nm
dered to them. To establish hxed steady value for
it under these circumstances impossible as TO
determine pound avoirdupois without reference to
the law OF .graviation.
Congress having taken away the provision for re-
dempuon, the public have naturally come to regard
the legal tender as perpetuay rredeemable; and one
OF the first steps toward resumption is to change that
Impression by reyiyng the funding privilege a bond
Of lower rate with extended time and limitation
the amount that could be funded in gwen period
As an ameoration to the debtor class the suggestion
has been made that bonds into which the legal
tenders should be thus converted might hems Ives DO
made legal tender tor all deots contracted prior TO
the passage Of the act This feature may have merit
but should desire to consider it very fully in all
bearings before asserting 70 IT, and especially It's
10 its consttntionaIty Ne have done much to m,in.
tain our public credit, but | think We began at the
wrong end when we made special exeruon TO
raise the price OF our bonds and leit the
legal tender take of itself Had
bringing
par with com the bond would have ioowed but, un-
fortunately have found that the not the
For myself, confess always feel ashamed TO
see our bonds quoted nj a large premium wnlle our
legal tenders are at heavy discount and, while there
has teen little demagogery about the bondholding
class getting their pay the law directs, have
wondered that the OF people quietly endure
being deprived of gold for their legal tenders law
in Its spirit equally guarantees.
But whether shall succeed or shall fail in
ing the United States notes the funding privilege
with which they originally endowed, must here
n~H h.f
ing The legal tender clause which has given these
notes their great strength as a circulating medium.
After showing the evil effects which would neces-
sary follow such repeal, he concluded folows:-
ADDITIONAL LEGISLATION Required
The act providing for resumption 1879 requires, in
the judgment of The Secretary OF the Treasury
additional legislation to make 1t practical and effective
AS II STANDS, likes date but gives adequate pro-
cess; ana the paramount duty Of Congress to pro
vide process. And in all legislation looking that
ond il must borne in mind that unless we move in
harmony with the great business interests the coun
try shall assuredly fail Specie payment only
be brought about by wise and well considered legis.
lation, based the experience OF other
tions embodyng the matured wisdom OF the
country heathully promoting all legitimate bust
create fear and dstrust among the people In other
words, what need as the Outgrowth Of lcgis-
laton is confidence, public and private, general and
individual To-Day We are suffering from the tmidity
OF capital and long the era OF doubt and uncer-
tanty prevails that tmdlty will continue and increase
steps toward innation VIII make II chrOnici unwlse
steps toward resumption viii not restore it, We will
have discharged our full duty in Congress # can
mature measure which VIII steadily advance
rency the specie standard the same time work
in harmony with the reviving industries and great
commercial wants OF the country
In any event, Mr. Chairman, whatever we may do,
or whatever may leave undOne this whole nnan-
question: US not deudc ourselves with the be-
lief that we escape the specie standard IL rules
US to-day and has ruled thrOughOut the whole legal
tender period, just as absolutely though were
paying and receiving coin daily. Our work,
fabrics, commodities all measured by IL, and
so long as we cling TO irredeemable paper we have
all the burdens and disadvantages OF the gold stand
ard, with OF It's aids and gains and
profits. The thing which hath been Is that which
shall be. The great law giver OF antiquity records in
the very opening chapters OF Genesis that hegod Of
the land OF HAWAII Is good" And, with another pre-
cious metal. u has maintained rank this day No
nation has ever succeeded in establishing any other
standard OF value; nation has mado the expert
ment except at great cost and sorrow the advo-
Gates of rredeemable money to-day but asking
TO travel the worn aud weary road travelled many
times before road that has ALWAYS ended In dsasier