Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-02-11
NO. So.

other issue by the Government, it measured moth.
ing itself and was measured by nothing, and ever
since that day it has had to fight its own battle, not
merely unaided by other forms of public credit,
but IN sense constantly hindered by them. To
establish fixed, steady value for it under these
circumstances, were as impossible as to determine
pound avoirdupols without reference to the law
Of gravitation.
Congress having taken away the provision for
redemption, the public have naturally come to re-
gard the legal tender as perpetually irredeemable
and one OF the first steps towards resumption is to
change that impression, by reviving the funding
privilege, i'll bond of lower rate, with extended
Tune and a limitation on the amount that could be
funded IN any given period. As an amelioration
10 lhe debtor class the suggestion has been made
that the bonds into which the legal tenders should
oe lIus converted, might themselves be made .
legal tender for all debts contracted prior to the
passage OF the act. This feature may have merit,
out should desire to consider it very fully in all its
bearings before asserting to it, and especially ss to
ITS effect on the value OF the legal tender note and
also as to Its constitutionaty We have done much
to MAINTAIN our public credit but think we began
at the wrong end when we made special exertlon
to raise the price Of bonds and left the legal
tender to take care Of itself. Had we devoted our
energies to bringing the legal tender to par with
com the bond would have followed but unfortu-
nately we 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 are at a heavy discount, and
while there has been no little demagoguery about
the bondholding class getting their pay in coin as
the law directs, have wondered that the mass of
our people so quietly endure being deprived of
gold for their legal tenders, the law in its spirit
equally guarantees.
But whether we shall succeed or shall fail in re-
storing to the United States notes the funding
privilege with which they were originally endow-
ed, must here record my earnest protest against
the policy of repeating the legal-tender clause
which has given to these notes their great strength
az circulating medium. | cannot see how the
Government can consistently deprive these notes
OF their legal tender quality until it is ready to
deem them IN coin on presentation and when it
IS so ready to redeem them, what need or advan-
tage VIII there be in raising the question And
nave never heard any argument at all satisfactory
TO my mind that the repeal of the legal tender
clause would tend to make resumption easier. On
the contrary 1t seems to me that it would render
resumption far more difficult 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 contraction and needless
ly cripple their power of discount; thus plunxin9
the whole country into confusion, disturbing
credits, embarrassing payments, fatally deranging
business, and creating widespread distress among
the people. 1t would be peculiarly severe blow
to the debtor class, and would make resumption
to them the signal of bankruptcy and ruin. All
wise legislation toward resumption will take care
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 a condition as will
make them as helpful possible to the business
community. But this policy would drive the
banks into struggle for self-preservaton in
which debtors would necessarily be sacrificed. II
correctly apprehend the sound public judgment
on this question, there is no desire to destroy the
legal tender character Of the note. but a settled
determination 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 result not only in max
my our money better, but assuredly more plenti-
ful among the people. 1t is humiliating fact
that, producing as we do a far larger amount OF
precious metal than all the rest Of the world be-
side, we 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
except their own, whose financial policy to-day
outlaws and eypatrates the product of their labor.
The act providing for resumption in 1879 re-
quires in the judgment of the Secretary of the
Treasury, some additional legislation to make it
practical and effective. As it stands it fixes q
date, but gives no adequate process and the para
mount duty of Congress 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 business interests Of the country,
shall assuredly fail Specie payment can only be
brought about by wise and well considered legis-
laton, based en- the experience Of other nations,
embodyng the matured wisdom Of the country,
ucdltlluiiF AIi Iepltlmate business, ana
carefully aNc Gliding everything that may tend to
create fear and distrust among the people. In
other words, what we most Feed as the outgrowth
Of legislation is confidence, public and private,
general and individual. To-day we are suffering
from the tim dity of capital, and so long as the era
of doubt and uncertainty prevails, that timidty
will continue and increase. Steps toward imitation
Will make 1t chronic unwise steps toward resump-
ZION will not restore it. We will have discharged
our full duty in Congress if we can mature meas
ure which will steadily advance our currency to
the specie standard, and at the same time work in
harmony with the reyiving industries and great
commercial wants of the country.
In any event, Mr. Chairman, whatever we may
do, or whatever we may leave undone on thus
whole financial question, let us not delude
ourselves with the belief that we can escape
the specie standard. 1t rules us to-day, and has
ruled us throughout the whole legal tender period,
just as absolutely as though we were paying and
receiving coin daily. Our work. our fabrics our
commodities, are all measured by it, and so long
we cling to irredeemable paper, we have all the
burdens and disadvantages of the gold standard
with none of its aids and gains and profits. "Thc
thing which hath been is that which shall be-"
The great Law-tiiver of antiquity, records in the
very opening chapters of Genesis that "the gold
of the land of Hayilah is good.' And with an
other precious metal it has maintained its
rank to this day. No nation has ever sue
ceeded in establishing any her standard of value;
no nation has ever made the experiment except at
great cost and sorrow; and the advocates of ire
deemable money, 10 day, are but asking to
travel the worn and weary road travelled so many
times btore-a road that has always ended in
disaster, and often in disgrace.