The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1885-12-09

government is but the means established by the
will of a free people by which certain principles
are applied which they have adopted Tor their
benefit and protection, and it Is never better ad
mnstered and It's true spirit is never Detter oo- %
served, than when the peoples eaxaton ,n, ivL @ lS
support is scrupuously Limited 70 tilS ai,, aosuss
cessity of expenditure and distributed accOIuins
to Just and equitable plan. Inc pIoPosiilstSTa III
with which we have to deal IS the reauction d VI in
revenue received by the government, ana ii.,a III
directly paid by the people from custom uuIea. M o.
The question of free trade is not lnyolved nor -
there now any occasion for the general ulscussloii
of the wisdom or eXpediency of protective syS-
TEN. Justice @and fairness dictate that III any
modification of our present laws relating 70 rev
enue, the industries and interests which have
been encouraged by such laws and IN Whlcn our
citizens have large investments, shouIa ILL nVt ,o
deal with the subject in such manner as 70 pro
teet the interests of American labor, which IS tne
capital of our w0rl1ngmen. Its staDllty anu anu
proper remuneration furnish the most lustlnaDie
preteXt for protective policy. Wltnln tnese llnl-
tatlons certain re94etom sn0iJ ~ S1 o1c redmcton
having been determined, the inquiry IoloWs.
Where can it best be RENTED ana what aIseies S
our citizens? / think the reduction shOuld De
made in the revenue derived from the tax upon
the imported necessaries OF life. we thus dlTeet-
ly lessen the cost of living in every family OF the
land and release to the people in every humble
home a larger measure OF the rewards OF irueal
THE NAIoNAL BANKS.
During the year ended Nov. 1, 1885, lao ma
tional banks were organized with an aggregate
capital of sic, ,93S, ,0oo and circulating notes have
been issued to them amounting to S4,274,olO.
The whole number of these banks in existence on
the day above mentioned was 2727. The very
limited amount of circulating notes issued Dy our
national banks compared with the amount tno
law permits them to issue upon deposit OF Donoss
for their redemption indicate that the Volune oi
our circulating medium may be largely Increased
through this instrumentahty.
CURRENCY AND COINAGE.
Nothing more important than the present con-
dition of our currency and coinage can claim your
attention Since February, 1878, the government
has, under the compulsory provisions Of law, pur-
chased silver bullion and coined the same al lhe
rate of more than 81, 100000 every month"; BY
this process, up to the present date 215,759,43l
silver dollars have been coined. reasonable ap--
probation of a delegation of power to the general
government would limit its exercise, without ex-
press restrictive words, TO the peoples needs ana
the requirements of the public welfare; Upon
this theory the authority TO "c0ln money gwen
to Congress by the constitution, If IL permits the
purchase by the government of bullion FOR coin
age in any event does not Justify s4en zen papcnae
needed for a sufficient circulating Medium Inc
desire to utilize the silver product OF the country
should not lead to a misuse or the perVerslon OF
this power. The necessity for such an add1blOn 10
the silver currency Of the nation as Is compelled
by the silver coinage act, is negatYed by tne Iact
that up to the present time only about 5O0O0,OOo
of the silver dollars coined have actually found
600 900 in the possession Of the government the
custody Of which has entailed coifsfdeIaple eX-
pense for the construction OF vaults Tor ltS -Sss
post. Against this latter amount there are OUT.
standing silver certificates amounting 70 aDoui
sos, 100000. Every month S2,O0OOOO OF gold I'D
the public treasury are paid out for 2OOO,OOO or
more Of silver dollars. to be added to the idle
mass already accumulated II continued long
enough, this operation will result IN the suDstltu-
tion of silver for all the gold the government
owns applicable to its general purposes. 1t VIII
not do to rely upon upon the customs receipts OF
the government to make good this drain OF gold,
because the silver thus coined having been made
legal tender for all debts and Dues pubic ana
private, at times during the last SIX months, & 90
silver or silver certificates, while the average
within that period has been 20 per cent. Inc
proportion of silver and its eertiheateS received
by the government will probably increase as time
goes on for the reason that the nearer tne peIlOu
approaches when it will be obliged to offer silver
in payment Of its obligations the greater induce
ment there will be to hoard gold
against depreciation in the value of silver, or
gold has already begun. When the time comes
| that gold has been withdrawn from circulation,
| then will be apparent the difference between
the real value of the silver dollar and dollar IN
gold, and the two coins viii part company. Gold,
| dealings with other countries, will be at premi,
um over silver. Banks which have substituted
| gold for the deposits of their customers may pay
them with silver bought with such gold thus MAX
| ing handsome profit Rich spectators VIII sell
their boarded gold to their neighbors who need II
to lidudate their foreign debts al runOus pre-
MUM ON silver, and the laboring men and women
OF the land most defenceless of all, will find that
the dollar received for the wage of the toller has
sadly shrunk in its purchasing power. Ii may be
SAID that the latter result will be but temporary
and that ultimately the price Of labor will be ad-
| the wage-worker cannot possibly gain, but must
inevitably lose, since the price he is compelled TO
pay for his living Will not only be measured IN a
| coin heavily deprecated and fuctuatng, and un-
certain in its value. but this uncertainty IN the
| value of the purchasing medium will be made the
pretext for an advance in prices beyond that JUS
| tfed by actual depreciation. The words uttered
| in 1884 by Daniel Webster, in the Senate OF the
ali others who has the deepest interest in sound
currency and who suffers most by mlschievouS
S av II breaS meaey bT s ea f ine Tbe
distinguished advocate of bimetalism, discussing
our silver coinage, has lately written: ''No Amer.
lean citizens hand has yet felt the sensation OF
| cheapness either in receiving or expending the
silver act dollars" and those who live by labor or
legitimate trade never will feel that sensation OF
| eheapness However plenty silver dollars may
become they win not be distributed as gifts among
the people and i the laborlng man should receive
but two. lie will pay in the deprecated com more
than double the price he now pays for all the nee
essaries and comforts OF life. Those who do not
fear any disastrous consequences arising from the
continued compulsory coinage of silver, as now
directed by law and who suppose that the addi-
its result, will be public benefit, are reminded
that history demonstrates that the point IS easily
reached in the attempt to float at the same time
two sorts ofmoney, when the
better will cease TO be in general circulation. The
L
indicates that we shall not escape the usual expe-
rience in such cases. So, If this silver coinage De
/ continued, we may reasonably expect that gold
and its eovalent will abandon the field of crcua-
tion to silver alone This of course must produce
severe contraction OF our circulating medlnm ID.
stead of adding to it. 1t will not be disputed that
| any attempt on the part OF the government TO
| cause the circulation of silver dollars worth so
cents, side by side with gold dollars worth 100
| cents even within the limit that legislation does
not counter to the laws of trade to be success
full must be seconded by the confidence of the peo-
l N
ing power and be interchangeable at will. A
special effort has been made by the secretary OF
coin in circulation but the fact that large share
| of the limited amount thus put out has soon
returned to the public treasury in payment OF
of duties leads to the belief that the people do
not now desire to keep it III hand, and this with
the evident disposition to hoard gold, gives rise to
the suspicion that there already exists a lack of
confidence among the people touching our imam
cial process. There is certainly not enough silver
now in circulation TO cause uneaSlneSS, ana the
| whole amount coined and now on hand might,
/ after time, be absorbed by the people without
apprehension, but it is the ceasless stream that
1 threatens 10 overflow the land which causes fear
| and uncertainty. What has been thus TAR submit
I ted upon this subject relates almost entirely TO
| considerations of a home nature, unconnected
| with the bearing which the policies of other
nations have upon the question, but II is perfectly
apparent that line of action in regard to our cur
| rency cannot wisely be settled upon or persisted
| in without considering the attitude on the subject
| of other countries with whom we maintain inter
/ course through commerce, trade and travel. An
acknowledgment of this fact Is found In the act by
virtue of which silver is compulSOrily coined
| 1t provides that the President shall invite the
| governments of the countries composing the Latin
/ union, so called and of such other European
| nations as he may deem advisable, to join the
| United States in q conference to adopt common
ratio between gold and silver for the purpose of
] establishing internationally the use OF bimetailic
| money, and securing fxity of relative value be-
I tween them. This conference absolutely failed
/ and similar fate khas awaited all subsequent
efforts in the same direction. and still we con-
tinue our coinage of silver at q ratio different from
that of any other nation. The most vital part of
/ the silver coinage act remains imperative and
| unexecutve, and without an ally or friend,
/ we battle upon the silver field
in an Illogical and losing contest TO give full eff
feet to the design of Congress on this subject,
have made careful and earnest endeavor since the
| adjournment of the last Congress. To this end
| delegated gentleman well instructed in fiscal
science to proceed to the financial centres of Eu-
| rope, and, in conjunction with our ministers 70
| England, France and Germany, to obtain tuli
knowledge of the attitude and intentof those gov
| ernments in respect Of the establishment OF such
an international ratio as would procure free coin
age of both metals at the mintS of those countries
| and our own. By my direction our consul general
at Paris has given close attention to the proceed
ings of the congress of the Latin union, in order
I to indicate our interest in its objects and report
its action. 1t may be said, in brief, as the result
of these efforts, that the attitude of the leading
| powers remains substantially unchanged since the
monetary conference of 1881 nor is it to be ques-
l at "a Of these a N