Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1876-02-18
Representative Blaine on Specie Re-
sumption.

Extracts from the Recent speech In Congress, OF
the Hon. James q. Blaine, on the Currency
A. said At the outset Of my remarks. Mr.. Chair.
man. the country Il suffering under one Of those
periodical rcyulsions In trade common to all COM
metcial nations, and which thus far no wisdom "
legtlatlCn has been able to avert. Tho natural
reslessncss Of people 20 alive and alert ms ours
looks for mn instant remedy; and the danger In
such q condition ~ the public mind II, that sOtno
thing may he adopted that will ultimately deepen
the disease rather than lay the groundwork for an
ctectnAl cure. Naturally enough In such time,
the theories for relief arc numerous, and we have
marvellous recipes offered whereby the people shall
be enabled to pay the dollar they owe with less
than 100 cents; whilc those who are caught with
such delusion seemingly forget that even n this
bo so. they must likewise receive less than 100
cents for the dollar that II due them. Whether the
dollar that they owe to-day. or the dollar that Is
due them Tomorrow will have the greater or less
number Of cents, depends onthe shifting OF causes
which they can neither control nor forosee; and
therefore nll certain calculation In trade Is act NJ
defiance and those branches Of busness which
tAkO on the form OF gambling are by y financial
paradox. the most secure and the most promising.
Uncertainty ~ to the value Of the currency from
day TO day ls I'M niurious to ali honest industry.
And while that which is known ~ the debtor In
tcrcst should he iairly and generously considered
m the shaping Of measures for specie. resumption,
there Is no Justice In asking for imitation on It's bo
half Rather hor0 Il the grayest Injustice; for you
mu-t remember that there IL large class Of
most deserving persons who would no cOntinu-
ally and rcmorselcssly robbed by such q
policy, | mean the Labor OF the country that 10
compelled 10 live from aud by is daily earnings.
The savings banks, which represent the aurplus
owned b. the laborers of the nation have deposits
today exceeding Si 100UOO ,OOO-morc thnn tho en-
tire capital stock aud deposits Of the National
Banks Tho pensioners, who represent the patri-
otic suffering OF the country, have capitalized In.
vestment or SH0lOp.0OO Here are 81 200 900, 900
incapable Of receiving anything but instant and
lasting injury from inhatiOn. Whatever impairs
the purchasing power OF the dollar corresponding
ly decreases the resources Of the rawlings bank de-
positor and the pcnsionef, The pensioners loss
wonld he absolute, hut Il would probably he argued
that the lnboer woud receive compensation by
his nomnaly larger earnings. But this would
prove totally delu-iye for no possible augmtnta-
tiun Of wages In timt of imitation will ever keep
pace with tho still greater increase or price in the
commodities necessary to sustain life. except
aud mark the eSceptiOn-un under the condition wit
messed ming the war, when the number Of labor
CTS was continually reduced by the demand for
men 10 ferte In tho army aud navy. And those
honest minded poOpO who recall the stai Ting ac-
tlVity OF trade and the large profits during the war,
and attribute both 10 nm Inflated currency, commit
the error OF leaving ont the most important olO-
mcnt OF the calculation.
They forget that the Government was n customer
Tor nearly four years at the rate Of two TO three
millions Of dollars per day-buyiug countless
quantities Of Hll staple articles; cy forget that
the number of consumers was continually en-.
lHiging ns our armed force grew to its gigantic
proportions, and that the number Of producers
was. by the same cause, continually growing less;
and n thus wqs ISe.enicd; op scale OF I'M m
mi lar al Ike To the political economist and village
trader, u the demand being gEeatcr thun the sup
ply, and n consequent rise In the price. Hnd the
Government been able to conduct the wnr on II
gold basis, and provided the con for its neces-
sarl ly large and lavish expenditure. n rise In the
pr'cc of labor aud n rise in the value OF commOdi-
tie- would have been inevitable. And the rise OF
both labor and commodities IN gold would have
been (, the time Ms marked as In paper, adding,
Of course, the depreciation Of the latter to its scale
Of prices.
While the deiusion Of creating wealth by the
issue OF trredcemable paper currency may lead to
any number Of absurd propositions, the lvocntcs
oil the hCtcsy seem ~ hive settled down on two
n-urtS--Ur. rather, one measure composed Of
two pnrtsnHmely: To abolish the National
Banks. and then have the Government issue legal
tenders ut once to the amount Of the bank c.rcu-
lation, and add to the volume from time to time
thereafter, according to the wants of trade y
The two nropos tions ARE so inseparaby come ted
that shall discuss them together
The National Bank systrin. Mr.. Chairman. was
one OF the results Of the war and tls' credit Of its
origin belongs to the late Salmon r. Chase. then
Secretary OF thr Treasury. And il muy not be IN
profitable just here to recall to the H0usG the cir.
gumstanc, which at the time made the National
banks II necessity to The Government, At the out
break Of the war there were considerably over a
thousand State banks Of various degrees of re
spOnsibily or irreSpOnsibility, scattered through
out the country. Their chart RS demanded the re-
demption Of their bills in specie, and, under the
pressure of this requirement their aggrtg ate cir
culntiOn was kept within decent limits; but the
amount Of II was. In most instances left to the
discretion OF the Directors and not few Of these
in their vaults. With the passage Of the Legal
Tender act, however, followed by IN enormous is
sue of Government notes, the state banks would
no longer he required to redeem in specie. and
would therefore ut once flood the country with thciI
own bills, aud take from the Government its re
source In TINT direction. To restrict Gnd limit
their circulation, and to make the banks ~ help
ful as possible in the great work Of sustaining the
Government finances tho National Bank act .,as
passed.
1t is greatly to be dcplored Mr. Chairman that
many candid men have conceived the notion that il
would be saving to the people II all banks could
be dispensed with, and the circulating medium bt
furnished by the Government issuing egal-tcndcrs
do not stop here to argue that this would he in
violation OF the Go e.nhents pledge not to issue
more than four hundred millions Of its own notes
merely reNnrk that that pledge Is binding IL
honor until egNl-tendcrs redeemablc in coin OF
presentation, and, when that point IL reached
there will he no desire there will certainly he
no necessity, for the Government Issuing ndd
tiona notes.
The great and, to my mind, unanswerable ubicc
iOn to this scheme Is that it places the cur encN
wholly in the power and under the direction o.
Congress. Now, Congress has always been and
always will be, governed by q partisan minority
representing one of the political parties OF the
country: and the proposition therefore, reduces
itself to this That the circulating medium, instead
of having fixed, decrminate character, shall b,
shi ted, and changed and manipulated nCcOrding
to the supposed needs of the party" process
Mr. Chairman, TO have some knowledge OF tn,
American Cungrcss its general character, It's per-
hNUnfl, lIS scope, HIS nlnlL, lIs power. ! lilnk
ON the whole, that il is n far more Pa
triOtic. intelligent, and upright body Of mcr
than II generally gets credit for in th(
country; but. Mt the same time, | can possibly
conceive Of no asEemblage OF respectable gentle.
men in the United States more utterly untitled ia
determine from time to time the amount of circu
lnton required by the wants OF trade But, in
deed, no body of men could be instructed with
that power. Even If IL were possible to trust their
discretion, their integrity would be constantly un
der suspicion II they performed their duties
with the purity of an angel of light. they could mo-
successfully repel those charges which always fol
low where the temptation to do wrong Is powerful
and the way easy. Experience would very soOr
demonstrate thnt no more corrupt or cOrruptinl
device no wilder or more visionary project, cycl
entered the brain Of the schenler or the empire.
II the people OF the United States were full!
awake aud aroused tD their interests. and could SCI
things as they nre. instead of increasing the pOwe
of Congress over the currency. they would, by the
shortest practicable process, divorce tile two, com
petely and forever, And this ran only be don,
finally eliectunlly irreverslbly, by the resumption
Of specie payment. Why, Mr.. Chairman, It /,
hardly an exaggeraton to say that ever since the
Government was compelled to resort to irrtdeem
able currency during the war the a5semblin!
Of Congress and its continuance In session
have hcen the most disturbing elements In tn,
business of the country 1t il literally truo tha
large interest looks hopefully to contraction anI
the lowering Of the gold premium; another l.
expansion as will send gold up. Each side. o
course, endeavOrs to influence and convince Con
gress Both sides naturally have their sympathiz
ing advocates on this floor; and hence the sub
stanta business Interests of the country are KEEP
IN "A feyerish, doubtful. speculative state Men
minds are turned from honest industry to scheme
Of financial gambling the public morals suffer
OdrfashiOnei integrity II forgotten, and solid, en-
during prosperity, with honest gains and quie
cOntentment, IL rendered impossible. We hay
suffered thus far, in perhaps as light degree a
could be expected under the circumstances; bu
once adopt the insane idea that all currency shal
be issued directly by the Government, aud tina
Congress shall be the judge OF the amount de
mandcd by the wants Of trade and you hav
this country adrift. rudderess on of troubles
shoreless aud soundess.
Among the anomalies presented In the currenc,
discussion, Mr.. Chairman, Is, that the West aul
the south should have so large an element clamor
Ous for Imitation. OF all sections interested in tn
specie standard the west and the south stand first
The great staples produced In those vast AM
fertile regiOns-wheat, corn, flour, beef, pork
hides, tobacco, hemp, cotton, rice and sugar-ar
inevitably and perempIorily subjected TO the go
standard when sold The price Of cotton sent L
Lowell IL Just Ms much determined by the gold
standard as that which is exported TO Manchester
and the breadstufis sold In New York are dali
equated with the prices OF the Liverpool Corn FIX
change. And so of all the other commodities
And yet we hear representatives Of the great In
tercsts that are thus compelled 10 sell at gold
prices rcsolute and determined In their demand
that they shall be allowed TO purchase all thei
aunnlips on the nanpr- -hnsig When IL Ia rempm