Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-02-24
pAYNE'S FINANCIAL SHAM.


PAYNES FINANCIAL SHAN.
The financial measure which Mr.. Payne
has prepared to unite the democrats in
Congress is great sham. 1t assumes to
be in favor of resumption but looks steadi-
" the other way. Every competent
Judge" says the New York Herald. "will
say that the House might better do moth
ing than to pass such BILL In the first
place. Mr.. Payne's bill proposes to repeal
the Resumption act and postpone specie
payments for an indefinite period. A will
ingness to make this obvious concession to
the inhationists is the only point on which
the democratic party has agreed. The
hard money democrats see that a repeal
of the Resumption act would bring ruin
unless accompanied with steps in the d.
rection of specie payments. Mr.. Payne's
bill makes pretence of such steps. but it
is only pretence. 1t marks time to the
beat of the hard money drum. but it does
not march. 1t proposes no change in the
actual currency. 1t leaves the amount OF
greenbacks and the amount of bank notes
unaltered, and merely requires the banks
and the government to accumulate stock
of specie. It allows six years from the
LIST Of July next for laying in this stock of
specie, and meanwhile leaves the curren-
cy unchanged and the business of the
country to founder. Six years is a long
period. but Mr.. Payne's bill makes no
promise of resumption even at its close.
While the ostensible effect of the meas
ure is to keep the currency stationary for
at least six years and assure the initiation
lists against any danger of contraction at
least until July, 1882, its real effect would
be to expand the currency constantly and
steadily up to that date. That ii would
operate as measure of initiation is appar-
ent enough on examining the provisions of
the bill. 1t requires the national banks to
set aside and retain from the coin received
as interest on the bonds by which their
notes are secured an amount equal to five
per cent Of their circulation, but with this
significant concession :-"Provided that
the coin by this section directed to be sci
aside and retained shall be counted and
held as part of the lawful money reserve
which said associations are required by
existing laws to maintain"
That the effect of this provision would
be constant Initiation of the currency no
man in his senses can doubt. 1t would
release the legal tender reserves now
locked up in the banks and put them in
circulation at the rate of seventeen million
five hundred thousand dollars per aunum.
and at the end Of the six years this green
back circulation would be expanded to
the amount Of one hundred and five mil
lion dollars. The undeniable effect of
Mr.. Payne's bill would be to initiate the
currency to the full amount of the reserves
now required to be kept out of circulation
and locked up in the banks. This is Gu
rious illustration of the New York demo-
cratic motto. STEADY steps toward specie
payments; no step backward" There
would be steady steps backward at the
rate Of seventeen dollars each year. with
an ultimate Initiation equal to the whole
reserves of the banks. We denouhce Mr..
Payne's bill as an arrant measure of infa-.
ton under false mask of preparation for
specie payments.
This steady expansion of the currency
by inundating the business of the country
with the present greenback reserves of
the banks would steadily raise the pre-
MUM on gold, and as soon as specie pay
ments were announced there would be a
contraction Of the currency so immense,
sudden and violent as to bring universal
panic and ruin. If this be the height OF
democratic wisdom the country will be
slow to trust the democratic party with
power"