The Portland daily press., 1876-03-17
The Financial Rill.

The Financial Bill.
The Democratic Congressional caucus has
at last adopted the financial measure known
as the Payne bill. bill which is remarkable
for the concessions it makes to the imitation
lists, and for little else. To begin with it re-
pudiates the pledge 10 resume in 1879, and
does not even do the government creditors
the justice to allow them interest on the over
due debt. By this act of repudiation the
Democratic party clearly takes position
against resumption. 1t yields to the soft
money men by postponing for at least ten
years the discharge of our pecuniary obliga-
tions, and there is no warrant for thinking
that the infationists will be any reader to
consent to resumption six years hence than
they are today. 1t makes no adequate provis-
ion for resumption at any time, for il fails in
this bill to provide for the contraction and
consequent appreciation of the greenback
circulation. The present amount of the
currency is left undisturbed for an indefinite
period. In effect the measure is an anti
contraction bill, framed to meet the wishes
OF the Western Democracy. Resumption is
not to be even entered upon until the Treas
ury and the banks both have accumulated
gold reserve equal to thirty per cent. of their
circulating notes. When this is done great
volume of paper currency will be poured in
for redemption, and the Treasury will be
compelled in very few days to again sus-
pend specie payments. And the infatonists
will DO sooner consent then that specie re-
serve shall be used for redemption than they
will consent to-day. The bill leaves the De-
mocracy, whenever it has the control of
Congress, with liberty to stop the accumulat-
ton OF gold at any time. 1t is merely an
assurance given to the Western Democrats
that the currency shall not be contracted nor
resumption take place until after the ne xt
two presidential elections. 1t is device to
tide the party over the political campaign
close at hand, by giving the hard-money
Democrats chance 10 pretend that they
favor resumption, and by conoiliating soft
money Democrats by the provision that the
volume of the currency shall meantime re-
| main unaltered. No one will for moment
believe that the bill has any chance of becom-
ing law. 1t is simply measure of post
ponement, an excuse for doing nothing. In
speaking of it the New York World Justly
says: "The existing law promises specie re-
sumption in 1879. If the caucus decides to
recommend the repeal of this promise there
Is no tongue so persuasive as to induce the
people to believe the Democratic party sin
cere in its demand for resumption
The bill contains one absolutely worthless
provision, so far as resumption is concerned,
that which compels the accumulation of a
coin reserve by the banks. It's trainers for
get that when the Treasury notes are equiv
alent to gold the entire standard currency
will express specie value, and so also will
every inferior currency which is redeemabe
in standard currency. But this provision
| also does positive harm by forcing into cir
| culation hundred million dollars of green
| backs which are now held as a permanent
reserve and so kept out of circulation.
The objections against the bill are well
summed up in the following review by David
| A. Wells, published in the New York Public.
| As Mr.. Wells has been endorsed as candi-
| date for Congress by the Connecticut Demo-
Gratis he ought to be good Democratic author
| ity. He writes:
The majority of the Democratic coneres.
| sional finance caucus committee is reported 10
| have agreed upon plan OF resumption, which
contemplates no actual specie payment until
! after the expiration of period of more than
| ten years, and which in the meantime, W i'll re-
| quire the national banks te accumulate annu-
| ally sum in gold equal to three per cent. of
their circulation, until the accumulation shall
| equal at least thirty per cent. of the entire
| national bank circulation. The plan further
| provides that theNcoin thus accumulated ia the
vaults of the national bau ks snail be "set aside
and retained as part of the lawful money re
! serve" which such associations ''are, by exist
| ing laws required to maintain
The effect of this bill, if enacted will be TO
| accumulate finally not less than $100, ,OO0, 900
| of demOnetlzed coin in the vaults of the banks,
| and TO force into active circulation an equal
| amount of legal tender notes now dormant
| which are now held as q permanent reserve,
| and are not permitted to be thrown into active
| circulation. Occasionally single bank may
| temporarily diminish its legal tender uotes be-
low the legal tender reserve which it is required
to hold; but in the aggregate it is certain that
the banks honestly comply with the law and
maintain the full amount OF legal tender re-
| serve which is made obligatory upon them.
| The reserve Is not, however, III any sense
part OF It's circulating medium, and the legal
tender notes OF which it is composed are prac
| tically dead and withdrawn. The scheme of
| the caucus Gf reported correctly, which trust
it is not) is not therefore a specie resum ption
| movement, but measure to positively luf1ate
| at once, coupled with ia vague and indefinite
| promise to begin contraction some ten years
| hence
But why initiate if the purpose is in good
| faith to finally contract? Contraction and re-
| sumption are ,one and the same thing, for the
| daily price of gold indicates with mathemat.
| lcsl certainty that we bave redundancy of
paper, and that free conversion of it into gold
| would produce an instantaneous contraction.
| Ii the treasury was TO resume o-morrow there
| Is no available machinery which would with
| draw the greeDbacks from circulation and send
| them in for redemption as fast as the people
| would desire to have them withdrawn and
redeemed; and the people in the most inflated
| section of the country would run the fastest to
| get up hrst to the redeemng counter. No man
consequently, can be considered in favor of re-
sumption OF specie payments who opposes con-
traction, however much sophistry he may use
| to deceive himself and others.
This caucus currency scheme seems intended
to test the capacity of the country n respect to
both imitation and contraction; and to give our
currency more aeatory or gambling charac-
| ter than it now possesses-thereby increasing
| the uncertainties and fluctuations in all prices,
business and investments. The silly frog in
the fable inflated till he split; for the purpose,
however, OF initiating the size of the OK. But
~ hoe Soiihuhio ehO oupiOLuO iOly ol luudt-
ing for the mere purpose of coDtr citing or COL
lapsing. In short, this bill of the caucus re-
ported as agreed upon will, Wien examined and
analyzed, be found to be nothing but the
Ohio rag baby, besmeared with little new
paint and bedecked with gaudy new dress;
and il 1t is ever seriously brought before Con-
gress, all the nfationists of both parties who
closely examine it, will recognize the original
brat, cheerfully accept it, and speedily learn to
| love it.
The full exhibit of Uncle Daniel Drew's
financial affairs show that he has 'lain
down. to stay. We are wicked enough to
say that we are rather glad than otherwise.
For years he has been a sneaking specuator,
and used the cloak of religion to help him to
catch the financial gudgeons. He has been
huge gambler and worse than that, the
meanest scoundrel in his business Keeping
faro-table would be respectable compared
/ with the sanctimonious sniveing cheating
| of Brother Draw Truo lo ,,pJartooI- IN