Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-12-12
From theBoston Journal
Views of Senator Blaine on the FL
nancial Question, and Secretary
Shcrman's Recommendations
An Interesting Interview.
AUGUSTA, Dec. 8, 1870.

To the Editor of the Boston journal:
Your reporter met Mr.. Blaine to-day when
taking his long constitutional walk at high
noon His house has been the centre and
headquarters Of all the republican consul
tations on the pending crisis, and with the
exception of a two hours walk about midday,
he is kept indoors conducting very large
correspondence, answering calls and holding
consultations. He consented to remain
short time after Congress met, at the unani-
nous request of the Republican State Com
mttee and of many Senators and Represen-
tatives-elect and their attorneys. His house
has been the fortress from which the whole
republican fight has been made, and he has
done a surprising amount of work.
After few questions were asked and an
swered about the pending situation here, your
reporter, joining in the walk, asked him wha;
he thought ofthe financial situation at WASH
ngton.
Mr.. Biaine.-I have been so absorbed here
that have had little time to give to anything
else. TO what particular point do you refer
in your question?
Repo,ter.-I had special reference to the
report of Secretary Sherman, and its various
recommendations.
Mr. Biaine.-I have read that report with
great interest. The financial exhibit which
Mr.. Sherman makes is most honorable to our
country and does very great credit to the Sec
rotary He has conducted the refunding of
the public debt with ability, wisdom and tact.
The results are highly advantageous to the
Treasury and to the people. Mr.. Sherman's
administration of the Treasury Department
will remain most memorable one in our
financial history.
Reporter.-How do you view the specific
recommendation that the legal-tender clause
should be struck from the greenbacks and
that they should be left to circulate merely
as Treasury notes.
Mr.. Biaine.-I should be compelled to
vote against that proposition, because think
it would work great injustice to the vast ma
jority of the people of the whole country
The greenbacks are actually redeemed at on
" one point-the Sub-Treasury in New York
city Now, suppose man away down here
in Maine, or out in Iowa, or Texas, or Min
nesota, or Oregon, owes a debt of say FIVE
thousand dollars, and his creditors demand
the gold. There stands the debtor with his
five thousand dollars of greenbacks with the
legal tender taken out of them and the cred
itor refuses to take them. What can he do?
Reporter.-But wouldn't all notes be given
payable in currency and thus the business of
the country soon adapt itself to the change?
M'. Biaine.-Negotiable paper might soon
assume that form, but that would cover a
very small part of the debts of the country
Negotiable paper, payable at bank counter
on given day, averaging four months cred
it, is generally given with the full under
standing of its terms. But go all through the
country and take mortgages, due-bills, book
accounts, debts contracted by verbal under
standing, judgments of the courts and the
thousand and one forms of Indebtedness that
spring up in the transactions of fifty millions
of people, and see what tremendous revolu-
ttnp rpt,tH mall To strtE t1a 1alt
quality from three hundred and forty millions
Of paper money now in the hands of the peo-
pie.
Reporter But the experience of the
country since last January has shown that the
people do not really care to handle the actual
coin.
M. Biaine.-Of course not, if they can
have something equally good and more con-
venient, as the redeemabie legal tender note
is. But strike the legal tender out, and with
actual redemption only in the city of New
York, you impart to gold an extrinsic value
which it does not possess to-day. You might
indeed create such exaggerated notions of its
possible value that you would have a pdnicky
run after it, and In this scramble those who
live nearest to the sub-Treasury would have
the best chance. If there Is to be a race we
ought all to have fair chance to start even.
| don't think 1t possible to get together
enough greenbacks to drain all the gold from
the Sub-treasury, but the withdrawal of even
twenty-five or thirty millions would produce
a very bad effect, create widespread scare
and embarrass business immensely throughout
the country.
Repoyter.-You don't think 1t possible that
so much as that could be withdrawn do you?
M. Biaine.--I do not see why great deal
more would not necessarily be withdrawn,
The national banks hold to-day from seventy