Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-10-01
Senator HOar on Finance.

| From his speech at Worcester
BUTLER IN FAVOR OF HARD MONEY.
Now, fellow citizens, whatever decisions NAV
have prevailed else where, both parties in Masssa
chusetts approved this scheme OF finance by which
we carried on the war, except 10 one particular.
| The democratic state conventions, democratic
candidates for Congress sided with republicans 10
AFT rming heir desire for honest payment of the
national debt in coin and for an early return to
| specie payments. 10 one particular the demo
| cratic party differed from The republicans. T0el
denied the necessity, they denied the consttu
tonal power for making the notes of the govern
ment, which are only promises to pay money, o.
titles 10 money, the office of money in pay
ment of debs. The democratic party had lear ned
that lesson in the school of Thomas jefferson, in
! the messages of Jackson, from the lips OF Benton
| We have few survivors OF the democratic lead
ets before the war. But will cite one whose
views may be taken as fair representative of the
whoe.
Ben amin +. Butler. then prominent democra,
spoke at ChatlestOwn GU the % of October, 1857.
| II was time of business depression. lie asked
his audience WHY the ships were rolling AT the
| whsrves and mechanics walking the streets III
search Of work. His answer was this The con
stitniional currency of hard-money has been
| swept away, and We now have a currency of rags,
| shreds and patches and thi, is the cause of our
present financial crisis" He proposed as RENE
Nv the Withdrawal of all bank notes under $40,
| then under $50, and so on until all payments I'M
der $50 should be made in coin. "rhs system.
said he, "hss worked well n France and Enga
| where financial plnics never affect the ltborins
| classes. The business of Massachusetts, must he
conducted on a specie basis, and financial panic,
| be avoided" He then quoted Websters sentence
''of all contrlvances Tor cheating the aboring
classes none have been so successful the ex-
pansiou of paper currency" OF this financial
| policy the republican party accepts the RESPONSE
blty. Ii determined to put down the rebellion.
II detel mined to overthrow slavery. 1t determin-
| Cd IN hnrrow the and the cost When
il borrowed the money, 1t determined TO keep 1t,
promise to pay it.
BUTLER IN FAVOR or THE UNTAxED BoSDs.
! There parts of this policy about which good
| men have differed Some men think that the
bonds should have been issued subject to taxation
Some think that the goverDment should itself Is
1 sue all the needed paper currency, providing foi
| It's redemption by the treasury. and abolish the
national banking system altogether. These arr
| ques ions of financial administration, fiji TO bt
debated, fit to be understood by statesmen and
| people. No man, | suppose, would claim that il
would have been wise during the war to permit
the states to tax the Gebt Of the United States.
| states ike Kentucky or Maryland could have
taxed the debt so heavily as to make it impossible
| to borrow money. But the bond does not escape
taxation. The government discounts the tax IL
| advance by obtaining money At Just so much low
| err a rate OF interest. 10 this way every bond
pays its share and none can be hid from the tax
| gatherer. The reason for this arrangement was
stated very well IN debate in 1870, when the law
| for issuing fifteen hundred million Of bonds was
enacted. | read from the speech of a Massachu.
sets representative:
at is a simple, plain question whether we have
the power to tax an uDlaxable bond with a low
rate of interest, where we throw IN the tax, II
may use that phrase, discounted it in order to
drive good bargain. That is clearly within our
power, and, in my Judgment, clearly within our
discretion, 1t is proper mode of exercising
our discretion. Therefore, l desire that thu.
shall not be stricken out not that this propert,
will thereby escape taxation, and desire no IL al
to 90 to the people and say that we have Issued
a bond to escape taxation. but wish them 10
90 to our people and say th at we have discount
ed our taxation on that bond 10 advance, as VT
shall do il we pass this at low rate of interest
and if we fund under ii"
That representative was BEN amin F. Butler.
The BANK QUESTION.
The question of permitting the banks to furnish
currency TO the people is which demand.
graver consideration. We must all agree that n
IS to be determined wholly with reference to The
welfare of the people. without the least regard t.
the convenience, interests or desires of the banks
themselves. The argument is that if the bank.
are permitted to supply this currency they get the
use Of the money which they keep out, theieb,
resping large sum as interest which ought to b.
teceived by the government itself. rhisis good
argument. aud the banks ought 10 some way 10 BE-
made to pay Is for the privilege. Let us see
what we get 10 return.
The circulation Of the national banks August
2lst. 1878, was 1881 1852 The government
has for good while past been able to borrow
money at per cent But to leave no question
hat We are dealing strictly. let Us suppose tina,
| the advantage OF this amount outstanding as cui-
rency to the government would be 5 per cent. per
wear. Thi, would amount TO Sl6, 1853 500 But
| he national banks have paid in taxes for the lat
| five years each year on an average,
To the nation, $7,I24365
And to the States, 9244750