The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1880-10-23

ernment bonds over S400, ,O0O, 900, or nearly
nine tenths of the capital represented by their
snares, which are owned by 200, 900 stockhold-
ers, and, of these 105 600 own not more than 10
shares each, and $4,000 or nearly nine tenths,
own not more than so shares each. The State
banks have about $7,739,O00 invested in the
same way, and these probably represent at
least $4,000 stockholders. The loan and trust
companies, representing large but unknown
number OF owners have about $1S,OO0,OO0 in-
vested in United States bonds, or S5 per cent.
of their entire capital. The life insurance
companies have about S12, 00,000 invested in
Government bonds, and they represent the saw
ings of nearly 600, 600 policy-holders. The fire
and marine and casualty insurance conmapies
represent a still larger but unknown number
OF policy-holders, and those doing business in
New York alone have over S6,000,000 in
vested in United States bonds, out Of about
S165, 100000 of assets in this country. The
savings banks represent 2,26S,707 depositors,
and hold $l56, ,4lJ, 1J9 in United States bonds
In all, not less than 100000 persons are thus
interested, either personally or through cor
porations, as owners of bonds, and would be
directly affected by decline in the public
credit.
The disastrous effect of a serious decline
would be far more extensive BY the corpora
tions mentioned above $4,000, ,OO0, 600 are now
loaned for the support of various branches of
trade and industry, viz, by national banks,
81 ,OOO,OOO,OOO; by State banks, $500, ZOO ,O00
by saving banks, S420,0O0,0O0; by loan and
companies, $20O,000,000, and by fire and ma
rine insurance companies doing business in
New York, S30,000,000. Shrinkage of public
credit would involve shrinkage of the assets
OF these corporations, and corresponding,
and possibly sudden and sweeping, contraction
of their loans. To merchants in their stores,
to manufacturers in their factories to work
men in their shops and mills and mines, the
consequences would be not less disastrous than
to the reluctant capitalists or lenders. Never
has this COunfrV financial rpyulainu
as terrible and as far-reaching in its conse-
quences as would now result from a collapse
OF that splendid public credit which wise legis-
lation and faithful administration have for 70
years been building up and fortifying.
Who can tell what the Democratic party. il
in power, would do with regard to the paw
ment of the public debt or the interest there
on? Not a few members of that party insist
that the principal or interest, or both shall be
paid only in paper. Bills to that end are now
pending, and have been pushed at every ses-
sion of Congress for years. By many, perhaps,
such bills may be proposed in ignorance Of the
fact that an increased issue of legal tender
notes would cause decline in their value.
But the legal-tender was worth less than 20
cents on the dollar in 1868, when nearly every
prominent Democrat was carried away with
the idea that proposal to pay the fve-twenty
bonds in paper, and to tax all bonds, would
render the party irresistible in the approaching
election These proposals the party then en-
bodied in it's national platform. Gen. Hancock,
who narrowly missed the Presidential nomina-
tion on that declaration OF principles and pur-
poses, gave it his unqualified approval. 1t was
zealously supported by every one of the prom
inent leaders who are now asking public sup
port for that party on the ground that it prom
ises this year "a strict maintenance of the pub
lie faith" But can it be supposed that the
party intended to violate the public faith in
1868? 1t must he presumed that the Demo-
cratic party and Gen. Hancock thought that
the payment of bonds in greenbacks would be
both honest and wise. Nothing has been done
or said by the Democratic party or by Gen.
Hancock himself to show that the course
deemed honest and wise in 1868 is now deemed
unwise or dishonest. Not thing has been
done or said to show that the Democratic party
or Gen. Hancock would not consider such pay
ment in 1881 "a strict maintenance of the pub
lie faith.''
The danger is near and real. Within one
year bonds amounting to S697 ,350,9OO become
payable or redeemable Every effort to meet
them by refunding has been defeated by the
Democratic majority in Congress, in spite of
earnest appeals by the Secretary of the Treas
ury. Bills for the payment of all the bonds
which mature or become redeemable next
year by new issue of Greenbacks are now
pending in Congress, and are zealously sup
ported by many Democrats.
Nor has Gen. Hancock uttered a word, since
his approval of the platform of 1868, to indi-
cate that he would hesitate now to carry out
the financial measures to which he then COM
mitted himself. On the contrary, within the
past month the Democratic party has been re-
joiciDg at its supposed success in electing
Greenback candidate in Maine, whose nation
al platform declares, as he does, that "the
bonds of the United States should not be re-
funded, but paid as rapidly as possible" by
means of an increased issue If legal-tender
notes. And this candidate, standing upon
this platform, Gen. Hancock had recently con-
graduated upon his supposed election as
GLORIOUS result" Perhaps Gen. Hancock
does not understand that an issue of S700 oJ0,-
OOO more legal tenders to retire the bonds
which become redeemable next year, would be
double violation of repeated pledges of the
United States The Government has pledged
itself not to issue more legal tenders, and to
pay its bonds in gold. Perhaps he does not un'
derstand that such a new issue for such pur-
pose would cause the United States notes
to fall greatly in value that public creditors
would be forced to receive Tor their bonds far
less than the value promised. But if he does
not, what safety can there be in trusting the
lieve that a great party can consider such a
| method either honest or wise. But the same
men who believed thai such step would be
neither dishonest nor fatal in 1868, may as
easily, and with as much sincerity, believe that
it would be dishonest or fatal now. When not
the Democratic party, in spite of all Republican
efforts, defeated every plan of refunding last
Winter, in what other way did it intend to
uedl WIFI tu6 DODuS Lnat become reQe6mQDle
next year? In Congress, as in Maine, Demo-
Gratis who knew that payment of bonds with
| greenbacks would be ruinous and dishonorable
| for the sake of party success, joined with DEM
ocrats and Greenback men who propose that
course. Who eau say that the same men
would not sacrifice conviction to partisan ex-
| pediency after the election? Who can say
that this alliance would not destroy the public
credit, stop specie payments, and plunge the
country into incalculable disasters by new
iccrSa nf IN, 1aoo faul lar
Who can tell how soon, if the Democratic
| party should succeed, the Resumption act
| would be repealed and the paper currency in
| tiated. Solemn pledges of public faith stand
| in the way. But the Democratic party has at
| no time regarded these as binding pledges.
and it is not more likely to so regard them now
| than it was one year ago. In February, 1879,
| when specie payments had continued nearly
| two months, 106 Democrats in the House voted
| for repeal of the Resumption act, and only
| q against it. tThe spirit of the party was even
| more decided then than it vas in November,
| 1877. IL months before resumption, when 104
| Democrats voted for the repeal of the act and
| 2S against it. Nearly four
| representation in Congress, earnestly oppose
| resumption even since specie payments began,
| because it has been trained to believe that re-
| sumption is mischievouS, and honestly desires
| initiation, because it has been taught that more
money is needed Ito emancipate the people
from the tyranny of money kings" These no
| tions have not been eradicated by a sudden
| change in the tactics of few party managers.
| Who can feel assured that they will not shape
| legislation as soon as the Democratic party has
| control?
Who can tell how soon the best banking sys-
| tenn the country has yet seen, would be de-
| stroyed if the Democratic party succeed?
| There is scarcely any other purpose in which
that party is so nearly united as in the purpose
| to get rid of the national banks The
| South has given the system so little favor that
less than 9 per cent of the national banks and
| little more than per cent of their depos-
| its are to be found in that section. In nearly
| every Western State and even fn Maine and
| Vermont, the Democratic party has formally
| demanded abolition of the national banking
| system. As early as January 1870 resolu-
| ton instrnctng a committee to report a bill TO
| withdraw all national bank circulation and to
| issue greenbacks in its stead, received So DEM
ocratc votes in the House, with only Demo
/ cratic vote against it. From that day TO this
there has been no evidence that the purpose of
the party in this respect has changed, and
bills to carry that purpose into effect are now
\ pending, with very slrong support. If the
Democratic party should ever secure the Ex-
/ ecutive, most strenuous effort TO break up
the national banking system would undoubted-
| ly be made.