The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1878-10-25
SENATOR HoAR ON BUTLER AND
FINANCE
From his Speech at Worcester last week.

FINANCE.
From his Speech at Worcester last week.
Now, fellow citizens, whatever decis-
ions may have prevailed elsewhere, both
parties in Massachusetts approved this
scheme of finance by which we carried
on the war, except in one particular,
The Democratic state conventions, Dem
ocratic candidates for congress, sided
with Republicans in affirming their de-
sire for honest payment of the national
debt in coin and for an early return to
specie payments. In one particular
the Democratic party differed from the
Republicans. They denied the necessity,
they denied the constitutional power for
making the notes of the government,
which are only promises to pay money,
or titles to money, serve the Office of
money in the payment of debts. The
Democratic party had learned that les
son in the school of Thomas Jefferson,
in the messages of Jackson, from the
lips of Benton. We have few survi-
vors of the Democratic leaders before the
war. will cite one whose views may
be taken as fair representative Of the
whole.
Benjamin F. Butler, then q prominent
Democrat, spoke at Charleston on the
25th of October, 1857. 1t was time of
ships were rolling at the wharves and
mechanics walking the streets in search
| of work. His answer was this: 1.-THE
constitutional currency of hard money
has been swept away, and we now have
a currency of rags, shreds and patches,
and this is the cause of our present finan-
cial crisis" He proposed as a remedy
the withdrawal of all bank notes under
$40. then under $50, and so on until all
payments under $50 should be made in
coin. This SYSTEM" said he, "has
worked well in France and England,
where financial panics never affect the
laboring classes. The business of Mas
| sachusetts must be conducted on spe-
| Gle basis, and financial panics be avoid
ed" He then quoted Webster's SEN
tence: "Of all contrivances for cheating
| the laboring classes, none have been so
| successful as the expansion of paper
currency" OF this financial policy the
| Republican party accepts the response
| bility. 1t determined TO put down the
rebellion. 1t determined to overthrow
slavery. 1t determined to borrow the
money and pay the cost When it Dor
rowed the money it determined to keep
its promise to pay.
There are parts of this policy about
which good men have differed. Some
issued subject to taxation. Some think
that the government itself should issue
all the needed paper currency, providing
for its redemption by the treasury, and
| abolish the banking system altogether.
These are questions of financial admin
| istration, fit to be considered, fit to be
debated, fit to be understood by states
men and people. No man, l suppose
would claim that it would have been
wise during the war to permit the states
to tax the debt of the United States.
States like kentucky or Maryland could
have taxed the debt so heavily as 10
make it impossible TO borrow money
| But the bond does not escape taxation
| The government discounts the tax in
| advance by obtaining money at just so
much lower rate of interest. In 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 millions
of bonds was enacted. / read from the
speech of Massachusetts representa-
| tive.
at is simple, plain question wheth.
er we have the power to tax an untaxa-
BILE bond with low rate IN interest
where we threw in the tax, if / may use
that phrase, discounted it in order to
drive IA good bargain. That is clearly
within our power, and, in my Judgment
clearly within our discretion. 1t is a
proper mode of exercising our discretion
| Therefore, | desire that this shall not be
stricken out, not that this property will
thereby escape taxation, and desire nc
man TO go to the people and say that we
have issued II bond to escape taxation
but l wish them to go to our people and
say that we have discounted our taxa
ton on that bond in advance; as We
shall do if we pass this at low rate o.
interest, and if we fund under it.
That representative was Benjamin F
Butler.