Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-06-24


ers.
When an effort is being made 10y dema-
gogues and men of little exp 'ricnce in or
knowledge of financial matters, to take
advantage of the present discomfort occa-
stoned by the extreme depression of bust
ness, for the purpose of organizing new
political party based on the idea of an IT.
redeemable paper currency. 1t may be well
to cast a glance backward at the origin of
the grecnback system, and see what SO dis
tinguished and honorable statesman and
republican as our own VIM. Pitt Fessen-
den thought and said of it at the time it
was adopted, in 1862. II there are any
republicans in Maine who once honored
and followed with confidence Mr.. Fessen-
den, but are now tempted to abandon the
republican party through the iallacies and
persuasions of greenback demagogues,
let them pause and consider and weigh
well what Mr.. Fessenden, standing in his
place in the Senate, As Chairman of the
Finance Committee, said in those eventful
DAYS of 1862, in regard to the issuing of
legal tender notes by the government
/. We copy the following extracts from
q single speech OF his made Feb. II,
1862, upon the bill to authorize the issue
of the first $4,000 900 of treasury
notes. for the redemption or funding OF
the same, and for the funding OF the
floating debt of the United States. In
regard to the importance of the measure
and its doubtful constiutonality he said:
Why sir, what does it propose 1t pro-
poses something utterly unknown in This
government from It's foundation; resort
to measure of doubtful constitutional
ity, to say the least OF 1t, which has always
been denounced as runDus to the credit
of any Government which has recourse to
it; a measure, too, about which opinions
in the community are divided rs perhaps
they never have been divided upon any
other subject; a measure which when 1t
has been tried by other countries, as it Of
ten has been, has always proved a disas-
trous failure.
Thus having touched upon the charac-
ter of the bill, not wi tn the flippancy OF
our recent greenback leaders who have
mastered the whole subject OF finance
within the last six weeks-he goes on to
speak of the great reluctance, which ex-
listed even then, with "A great war raging,
10 the adoption OF such "a measure.
Everybody who has spoken on this ques
ton, believe without an exception
there may have been one or two-but all
the opinions that have heard EXPIRE ssed
agree in this; that only with extreme re-
luctance, only with fear and trembling AS
to the consequences can we have recourse
to measure like this OF making our paper
legal tender in the payment OF debts.
Only with "iear and trembling" did he
believe such measure could be adopted.
In regard to the feature in the second
section of the bill. providing for the pay
ment of the interest of the public debt in
coin. he said
This certainly will have one effect; it
proves the good faith OF the Government:
that 1t means to do ali it can; that 1t
means to spare no effort at whatever cost
to give to those who take the Government
paper, what they wish to receive, some
thing besides Government paper, and
thus running round in circle of paper,
for the interest upon their debts.
So the payment Of coin for the debt
was adopted that the government might
keep faith with its creditors and preserve
its credit inviolate. At that time neither
Mr.. Fessenden nor anybody else advocat.
ed or believe that the greenback policv-
making paper legal tender-woul6 he
anything more than transient thing.
Upon this point he says:
But the committee thought in giving
this enlarged power to the Secretary at
this time, that it was bound-it this LEGAL
tender was to be resorted to, esp .cialv if
the bill OF the House as it stood should be
adopted 10y the Senate and should become
law-that an assurance should be given
to the country that it was not to be resort
ed TO as policy that it was what it pro.
iesses to be. but temporary measure.
Inc opinions OF the Secretary of the Treas
my are perfectly well known. He has
declared that, III his judgment it is, and
ought 10 be, but temp Jrary measure,
nv W VN iNoOiSSd w 40 Il pbIlGy, Dut SIM
ply on this single occasion, because the
country is driven to the necessity of re-
sorting to it. have not heard ANYBODY
express contrary opinion, or, at least.
any man who has spoken on the subject
in Congress. The chairman of the Com
mittee on Ways and Means, in advocating
the measure, declared that il was not con.
templated, and he did not believe it would
be necessary TO issue more than the $50.
600. OO0Pi Ireasury.notes made legal ten
der provided by this bill. All the gentle
men who have spoken on the subject. and
all pretty much who have written on the
subject. except some wild Spectators in
currency, have declared that as a policy
it would be ruinous to any people and il
has been defended, as have stated. sim
ply and solely upon the ground that it is
to be a single measure, standing by itself.
and not to be repeated.
He little thought that thirteen years af-
ter the war was over-after the exigency
which created the greenbacks had passed
there would be party so insane as f.
demand that the greenbaek policy shall