Daily Kennebec journal., 1876-08-07

tiohabe appropriations be consented to- the oper-
aliops Of the government thereunder snaii suher
detriu1ent or cease. In my judgment, an amend
ment of the Constitution ought to be devised, sep
arating into distinct bills the appropriations 10,
the various departments of the public service ana
excluding from each bill all approprlatiohs i9r
other objects and all independent on, ~ r
the two bouses and of the executive be preserved
and exempted from the moral duress when oiteh
compels assent to Objectionable appropriations
| rather than stop the wheels OF the government
THE SOUTH.
An accessory cause, enhancing the distress IN
husuess is to be found in the systematic ana uh-
snnnn,tablc misoovernment imposed on the states
| If the South Besides the ordinary elects OF an
Ignorant and dishonest administration, II has IN
dicted upon them an enormous issue Oh fraudulent
bonds the scanty avails OF which were wasteo OF
stolen and the existence of which is publlc dls-
| credit, tending to bankruptcy or reputation
Taxes, generally oppressive, In some instances
have confscated the entire income oil properly,
and totally destroyed its marketable vaiue III IS
Imuossible that these evils should not react upon
The prospcyitv of the whole country. The nebler
motives of humanity concur with the material m
terests of all in requiring that every obstacle DE
removed to a complete and durable RECOMMENDATION
between kindred populations once unnauonahy
cstranged on the basis recognized by the ST. LOUIS
platform of the "Constituon of the Cnited states
with its amendments universally accepted as
final settlement of the controversies whch engend-
cred civil war;. But in aid of result so oeneh-
cent the moral influence of every good citlzen as
well as every government authority, ought TO oe
exerted not alone to maintain their lnst equaiity
before the law but likewise to establish cordiai
fraternity and good will among citizens, whatever
their race color, who are now united III me one
destiny of Il common self-goyernment. IL the
duty shall be assigned to me, should not iail 10
exercise the powers with which the laws and the
constitution of our country clothe its chief mag!s-
tiate to protect all its citizens, whatever It's former
condition, in every political and personal right
CURRENCY REFORM.
Reform is necessary, declares the S.. Louis con-
yeuton to establish sound currency, restore the
public credit and maintain the national honor, ana
!, goes on to demand judicous system Of prepar-
alton by public economies, by Official retrehch-
ments and by wise finance, which shall enable thc
nation soon to assure the whole world of It's per-
feet ability and perfect readiness to meet any oil
its promises at the call of the creditors entitled to
PAYMENT The object demanded by the conven-
ton is a resumption of specie payments on tee
leral-ender notes Of the United States. 1hat
would not only restore the public credit and mann
tain the public honor but it would establish a
sound curl ency for the people. 1he methous ny
which the object is to be pursued, and the means
by which it is be attained are disclosed by what
the convention demanded for the future and by
what it denounced in the past
BANK-NorE RESUMPTION.
The resumption OF specie payments uy thc gov
erDment of the United States on It's legal-tender
notes, would establish specie payments by all the
banks on all their notes. The official statement
made on the 18th of May, shows that the amount
of bank notes was $500, 600, less Su 0OO ,0oO
by themselves. Against these $2SooO9ooo oil
notes the banks held Sl4l 100000 of legal-tender
notes. or little that fifty per cent OF their
amount But they also held on deposit in the fed
eral Treasury security for these notes bonds OF
the United States worth in gold about S36O, O0V,000
available and current in all the foreign money
markets. In resumng, the banks, even IT 1t were
possible for all their notes to be presented Tor pay
| ment would have $500 000000 of specie funds 10
| pay $3.50, 900, 900 of notes, without contracting
their loans to their customers or calling OH any
private debtor for payment. Suspended banks
| Undertaking to resume have usually been obliged
| to collect from needy borrowers tue means to re-
| deem excessive issues and to provide reserves a
vague idea of distress is therefore often associated
| with the process Of resumption but the conul-
| tions which caused distress in those former In
| stances do not now exist. The government has
only to make good its own promises, and the banks
can take care of themselves without distressing
anybody. The government is, therefore, the sole
| delinquent.
| LEGAL.TENDER RESUMPTION.
| The amount of the legal-tendcr notes Of the
| United States now outstanding is less than $50
600 O0o besides S34 900 900 OF fractional currency
| How shall the government make these notes a
| all times good as specie? 1t has TO provide II
| reference
| by the wants Of business, central reservoir o
| coin adequate to the adjustment OF the temporary
| fluctuations of international balances, and as
guarantee against transient drains artlfclally ere
| ated by panic by specuiations. 1t has also tc
provide for the payment in coin of such fractiona
currency as may he presented forredemption, and
such inconsderable portions OF the legal tenders
| as individuals may, from time to time desire to
| convert for special use. or in order to lay by IN
| coin their little stores Of money. 10 make the
.la 1alfn f,r tho NH aat
| of this revenue, to gradually strengthen and en-
large that revenue, and to provide for such Other
| exceptional demands for coin IS may arise, does
| not seem to me a work of difficulty. If wisely
planned aud discreetly pursued ought not to cost
| any sacrifice to the business OF the country. II
shou Id tend on the contrary, to revival of hope
| and confidence. The coin in the Treasury on the
| Goth of June, including what is held against coin
certificates, amounted to nearly S74 ,000,00 The
| current of precious metals which has flowed out
! of our county for the eleven years from July |,
| 1865, to June 80, 1876, averaging nearly $4,000,
| 600 year. was SS32 000 900, in the whole period
of which $6l7 100000 was the product Of our own
| mines To amass the requisite quantity by inter
| captng from the current flowing out of the count
| ry and by acquiring from the stocks which exist
| abroad without disturbing the equilibrium of for
eign money markets, is a result to be easily work
ed out by practical knowledge and judgement
With respect to whatever surplus of legal tenders
the wants of business may fail to keep in use, anC
which, in order to save interest," will be returned
for redemption, they can either be paid, or they
| can be funded Whether they continue as curren
cy or be absorbed into the vast mass Of securities
| held as investments, is merely question of the
rate of interest they draw. Even if they were t.
remain in their present form, and the government
were TO agree to pay on them a rate OF intcres
making them desirable as investments they woult
cease to circulate and take their place with gov
ernment, State, municipal and other corporate ant
private bonds, of which thousands Of millions ex
ist among us. In the perfect ease with which they
can be changed from currency into investments
lies the only danger to be guarded against in the
adoption Off general measure intended to remove
clearly ascertained surplus; that is, the with
drawal of any which are not permanent excess
beyond the wants of business. Even now mis-
chevous would be any measure which affects thu
public imagination with the fear of an apprehendec
scarcity in a community where credit is so much
used. Fluctuations of value and vicisstudes in
business are largely caused by the temporary be-
liefs of men, even before those beliefs conform
to ascertained realities.
TIE AMOUNT OF NECESSARY CURRENCY.
at a given time cannot be determined arbitrarily
and should not be assumed on conjecture. Tha
amount is subject to both permanent and tempora
ry changes. An enlargement of it, which seemed
to be durable, happened at the beginning of th'
civil war by substituted use of currency in place
of individual credits. 1t varies with certain state