Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1878-08-28
Senator Blaine on the Finances.


an hour and half at Biddeford, Me-, on
Wednesday. He said;
BY common consent the currency question ia
the great question before the people This re-
greet because, II there is thing the people can
not afford 1t is to have political currency ques-
ton. Let us settle it and settle 1t right. Let us
review the circumstances that brought us where
we are now. In 1861 an extra session of Congress
was called, and 1t authorized the treasurer to Dor
row S400, 600 OO0 as there was no money In the
treasury Fifty millions Of demand notes were
also authorized, and when Congress assembled |
after the Christmas holidays they assembled with |
an empty treasury. In this particular strait the |
government provided for the issuance OF $780, |
1000 Of legal tender notes That was a measure |
Of absolute necessity 1t was useless to stand |
upon very fne-drawn point at such time 1t |
question OF life. We declared the notes |
legal tender Before another year had expired |
we were called upon to issue another $3.50 OOOOOO,
and when Congress assembled in December, 1863 |
the report Of the Secretary 1.-THE Treasury brought
before us a very embarrassing 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
million dollars were due the army, and ready
cash was demanded. Out of this state Of Affairs
came the Loan act, which really supplied funds
which were necessary for the salvation of the
nation The Loan act had not only the authority
uf law but in a peculiar and strong sense 1t il
binding upon us. In this act was a provso, as
follows THAT the total amount Of those notes
issued and to be issued shall never exceed $780,
100000" 1t was the price which in extreme ur-
| cd nj In is
| uonor in the American people they would as soon
sign away their birthright violate this pledge.
| The most fearful thing that could happen to this
country would be the issuance of an unlimited
amount Of currency How are you going to con-
tract the currency? Whatever else American peo-
pie 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 Congressmen.
| Greenback people say that we should not have
any banks. For seven hundred years we have
had banks, and We could not conduct the bust
ness of the country for minute without banks.
| Why are banks u necessity? bank is place
| where the borrower Of money meets the lender,
where surplus money is deposited. Suppose
man wants to borrow SlO,O0O to go into business
with. Greenbackers would send him all over the
country borrowing $50 here and $50 there. There
are at the present time three bills in Congress FOL
resurrecting the state banks. New England ell
joyed 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 APPLY illustrated the
weakness Of the system by referring to the Lum-
berman's Bank, which might be said to have been
owned by the present greenback candidate fol
governor. This bank had capital OF $4,000, but
at one time had hand unsigned bills to the
amount Of S165 600, which would be signed As
fast as anybody wanted them In fact the old
system of banking was based on the personal
notes OF stockholders If you will have banks,
then what kind will you haye-responsble or IL
responsible? 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 bills until you have put in
the United States Treasury amount equal to
ten per cent additional to protect the bill holders
If you hold national-bank bill, you don't care
whether the bank is burst not. In regard TO
taxing bonds greenbackers say, Here is an ex-
empted class" The only man in the United
States who pays absolutely full tax ON his prop
erty is the holder of government bonds. For ill.,
stance: A. invests $4,000 in government -four
per cents, b. invests an equal amount in Maine
state skies, and c. invests like amount in Maine
Central seven per cents. In the first case the ill.,
ester of government bonds pays his taxes in ad-
vance, but in the case Of the other bonds is it
within your experience that holders thereof flock
u the assessors office asking to be taxed? Fact,
show that but very rmal portion of such bonds
are taxed 1t is the easiest thing in the world
| lur your brother who is In California to own
chem, or your uncle in some other part of the
country. Then why delude yourselves viii
The idea that if You taxed government bonds
hey would be any more likely to turn up ioi
,axation than those state railroad bonds? Ii
You succeed in taxing bonds you merely place
upon your shoulders an additional burden of $40
OOOO00 Government bonds never could and neyel
should be taxed. There are five kinds of none,
, hat the United States stands sponsor for-golc
h and silyer-and gold is better than silver Moses
III the second chapter of Genesis tells us that golC
: good; and it makes no difference whether it II
stamped by the United States or Venezuela,
i then there is the old-fashioned, war-honored
J a,trotc greenbacl that did such great work, tina
says the United States will pay $40, or as it ma!
, ne, reserying to the United States when the!
would pay. In 1875 it did say when they woult
pay, viz, January l. 1879. The advance school .
,reenbackers represented by General Butler don
Il Aant this kind of greenbacks at all. The
Aant another kind They don't want any
Z hing stamped with "promise to pay" The
t want this greenback to say, This is $40, or an
n sum" Such talk is merely nonsense. Why NO
say, This is a horse? p Why not make it 81 900
1t takes no paper or no more time to print II
T but it is not with gold. The next govern
y ment money is national bank bills, and lastl
\ the silver certificate. If we desire more none
a than we have, let us initiate our gold and silye
~ We ianced during the greenback craze tina
we were all getting rich, In 1873 we foun
= out that we had been buying SS00,0OO,0 900 nor
" than we were selling. There is nothing so nyi
d. terious about the national finances. The sam
e. principles are involved in private finances.
H. A farmer is buying more than he is selling frol
NJ his farm he is growing poorer but II he Is selin
-, more than he is buying he is getting richer. Til
idea holds good with the trade of the countr!
u Now things are changed. We are buying le'
X abroad and have "A balance in our favor of $3.50
y, 600. No people in the world are SO well alb
To maintain specie basis AS the United States,
they say they will. We are just in sight OF Il
day of redemption. We can look right into Il
90 promised land, but greenbackers say, Don't go il
OF come now and wander with usa few years more
er You depreciate your currency, and you might
Ma well by one shock OF mighty power paralyze caI
tai from one end of the country to the other. VI
= reduce the country from that OF great CONNIE
~ cial people to beggarly, small retail affair. III
e. thing which this day frghtens men is wild schem
a. Of finance. What the United States needs in tn
err matter is large amount of observation-disclosures
he You cannot keep this currency as political 70
hau You cannot settle this question until yC
settle it right
le- Our Next-DOOr Neighbour.
d' General Mackenzie is reported again ov
DE the border iu hot pursuit of party of Me
II lean or Indian raiders. He is an uncoI
'd monty energetic and resolute officer, and
a. as likely to overtake the bandits and bril-