The Portland daily press., 1878-08-13
A Contrast.

The Ne,o Era says: "Contrast the course
OF the French Government with our own.
Their nation at the close of the war with
Germany was in an incomparably worse
position than we ever were-beaten in battle,
and forced to pay the costs Of the war on
both sides, the enemy retaining their terri
tory as collateral until it was so paid, and
their chief city, with population double
that of the largest city of our republic, in the
hands of insurgents. But the French Gov
ernment made no criminal blunder in the
great emergency"
Well, let us contrast. The French Govern
ment in order to pay the war indemnity de-
manded of it by Germany borrowed money
on interest-bearing notes. Those notes or
bonds (for they answer to our bonds) are
outstanding to-day. The French Govern
ment also made forced loan on the people
las we did) and authorized its financial agent,
the Bank of France, to issue paper money
that was for time irredeemable in specie.
Then what did it do? Instead of first paying
its bonded debt it set about paying the de-
mand notes that answer to our greenbacks.
1t contracted its paper currency, Withdrawing
millions year, and last January had so re-
duced the amount that it was enabled to
every demand note then ont. That is what
the French Government has done, and the
result, the Era says, is that "while business
stagnation exists in countries less wisely
ruled, the people of France are busy, happy
and prosperous. She has by her financial
policy kept her people employed, availed her
self of all her productive resources, increased
the revenues of the government, evaded
financial crises, and paid her enormous war
fines"
Exactly, and had we done likewise we
might have been in as good estate. What
did we do? We reversed the financial policy
OF France. We attempted to pay the bonded
debt instead of redeeming the greenbacks.
We did not perceive, what France perceived,
that an irTedeemable paper currency brings
about financial distress and industrial stagna-
tion. Unlike her we kept our paper money
irredeemable and did not evade financial cri-
ses. On the contrary we invited them. Had
we followed her example we doubtless should
have kept our people employed and have been
prosperous to-day. The resumptionists see
the mistake we have made and wish to imi-
tate France, and resume specie payments.
The Greenbackers insist that we shall pursue
our old bad policy of discharging debt that
is not yet due instead of paying one that is
over due and thus freeing the country from
the burden OF an irredeemabe paper currency.
That is the contrast between us and France,
and it is contrast unfavorable to us. Let
us hasten to follow the wise example of that
prosperous country. The Era says that
France prohibited the contraction of the vol
ume of paper until a favorable balance OF
trade with the rest of the world had brought
into the country metallic money enough to
substitute for the paper money to be retired.
That is precisely what the resumptionists in
this country are doing. We have balance of
trade in our favor. We do not export all the
gold and silver we mine. There is to-day
over two hundred million dollars of coin in
the Treasury. We are in the best of condi
tions to resume. Let US then follow this
"glorious example of France of which the
Greenbackers are talking, and 60 back to
specie payments, thus securing prosperity
as great as that with which France is blessed.