Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1878-08-30
Senator Blaine on the Finances.

A SOUND CURRENCY THE ONLY SUPPORT OF Ma
TI0NAL CREDIT-wILD FINANCIAL SCHEMES
DENOUNCED.
Senator j. &. Blaine, Of Maine, spoke for
an hour and half. at Biddeford, Me, on
Wednesday. lie said
By common consent the currency ques-
tion is the great question before the people.
This regret; because, if there is one thing
the people cannot afford, it ia to have
political currency question. Let US settle
1t, and settle it right. Let us review the
circumstances that brought US where We
are now. In 1861 an extra session OF Con-
Qress was called, and it authorized the
Treasurer to borrow S40O. .OOO, 900. as there
was no money in the Treasury. Fifty mil
lions of demand notes were also authorized.
and when Congress assembled after tho
Christmas holidays they assembled with an
empty Treasury. In this particular strait
the Government provided for the issuance
OF $50 ,0O0, 900 of legal tender notes. That
wass measure of absolute necessity. Ii
was useless to stand upon very fns-drswn
point at such time. 1t was question
OF life. We declared the notes legal tender.
Before another year had expired we were
called upon to issue another $l50,OOO 900,
and when Congress assembled IN December,
1868, the report of the Secretary of the
Treasury brought before Us a very embar-
RAISING condition. The Government was
without currency again. We were at that
time appealing to every civilized nation Of
the world, for money. Forty or fifty mil
lion dollars were due the army. and ready
cash was demanded. Out OF this state Of
affairs came the Loan act, which really sup
piled funds which were necessary for tho
salvation of the nation. The Loan act had
not only the authority Of law, but in Pc
culiar and strong sense it is binding upon
US. In this act was proviso. as follows:
THAT the tots, amount of those notes issued
and to be issued shall never exceed $780,
OOO,0 ,0O0." 1t was the price which In eI-
treme urgency We pledged Ourselves to.
and if there is any honor In the American
people they would as soon sign away their
birthright as violate this pledge The most
fearful thing that could happen to this
country would be the issuance Of an unlim-
tied amount of currency. How are you 60
ing to contract the currency? Whatever else
American people do with currency, let me
say to you that there is no body OF men SO
little competent to determine the question
OF money as Congressman.
Greenback people say that We should not
have any banks. For seven hundred years
We have had banks, and we could not con-
duct the business of the country for min
ute without banks. Why are banks ne
cessity A bank is place where the bor-
rover of money meets the lender; where
surplus money is deposited. Suppose q
man wants to borrow $4,000 to go into
business with. Greenbackers would send
him ali oyer the country borrowing $50
here and $50 there. There are at the
present time three bills in Congress for
tha h,nk 10 Enn
land enjoyed under the old system. the best
banks in the country, but they owed their
reputation to the personal integrity Of the
men who stood behind the counter. The
speaker aptly illustrated the weakness OF
the system by referring to the Lum5erman's
Bank, which might be said to have been
owned by the present Greenback candidate
for Governor. This bank had cspital of
$50, 900 but at one time had on hand un-
signed bills to the amount of Sl65 900.
which would be signed as fast as any body
wanted them. ln fact the old system of
banking was based on the personal notes of
stock kholders If you will have banks. then
what kind will you have responsible or
irresponsible? National banks are perfectly
free for every man to engage in with just
one little condition that the GOvernment
insists upon, that you shall not issue any
States Treasury an amount equal to 10 per
cent. additional to protect tbs hill holders.
II you hold a national bank-bill yOu Cont
care whether the bank Is burst or not. 10
regard to taxing bonds Gresnbscksrs say.
Here is an exempted class The only
man in the United states who pays abso-
lutely full tax ON his property Is the holder
of 9oyerhment bonds For instance: A.
invests $40 900 in Government 4 per cents:
invests an equal amount in Maine Stite
6s, and q. invests like amount In Maine
Central per cents. In the first case the in
vestor of Government bonds pays his taxes
in advance, but in the case of the other
bonds is il within your experience that
bolders thereof flock to the assessors Office
asking to be taxed Facts show that but a
very small portion Of such bonds are taxed.
IL is the easiest thing in the werli for your
brother who is in California to own them.
or your uncle in some other part of the
country. Then why delude yourselves with
the idea that il you taxed Government bonds
they would be auy more likely to turn up tor
taxation than those State or railroad bonds?
If you succeed in taxing bonds you merely
place upon your shoulders an additional
burden of $40 900 900. Government bonds
never could nor never should be taxed.
There are five kinds of money that the
United States stands sponsor tor-gold and
sIlver-and gold Is better than silver. Moses,
in the second chapter OF Genesis. tells us that
gold is good and 1t makes no difference
whether it is stamped by the United
States or Venezuela. Then there Is the
the old-fashionod, war-honored, patriotic
greenback that did such great work, that
says the United States will paw $40, or as it
may be, reserying to the United States
when they would pay. In 1875 it did say
when they would pay. viz. January 1873.
The advance school of GreenbGckers rep-o-
sented by General Butler don't want this
kind of greenbacks at all. They want an
other kind. They don't want anything
stamped with promise to pay. They
want this greenback to say This is $40
or any sum-" Such talk is merely nom
sense. Why not say This is horse ?n
Why not make it 81 900? Ii takes no more
paper or no more time to print it, but 1t
is not so with gold. The next government
money is national bank bills and lastly the
silver certificate. live desire more money
than We have. let us irhIte our gold and
silver. We tsncied during the greenback
craze that we were all getting rich. In 1873
we found out that We had been buying
$500 900 900 more than We were sslling.
There is nothing SO mysterious about nation
al finances. The same principles are IL
volved in private finances. II u farmer is
buying more than he is selling from his
farm he is growing poorer. but If he is sell.
ing more than he is buying he is getting
richer. This idea holds good with the
trade OF the country. Now things are
changed. We are buying less abroad and
have a balance in our favor OF $3.50. 200 900.
No people IN the werld are 50 well able TO
MAINTAIN a specie basis as the United States,
if they say they will. We are Just in sight
of the day of redemption. We can look
right into the promised land, but Green
backs say, Don't 90 in come now and
wander with Us n few years more" You de-
preciate your currency, and You might as
well by one shock of mighty power para
I'VE capital from one end Of the country to
the other. You reduce the country from
that Of great commercial people to
beggarly small retail affair. The thing
which thi, day frightens men is wild
schemes OF finance. What the United States
needs in this matter Is large amount Of
le. e.-aloueatiyencss. You cannot keep this
currency as political foot ball. You can
not settle this question until you settle it
right.
Timely Thonghts.
GEN. GROUT ON THE VIRTUE OF CHARITY AND
THE DUTY OF CAPITAL.