The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1891-01-30
Our Fiscal Policy.

New YORK, January 28.-At the Board of
Trade dinner. in responding to the toast,
"Our cOuDtry's prosperity dependent upon
its instruments of commerce." Secretary
Window said: l shall confine my remarks
to the two chief instrumentallties of COM
merce-transportation and money. A ma
tion's wealth and prosperity are usually in
proportion 10 the extent and success of its
commerce.; and commerce itself is depend
ent upon the adequacy and adaptation of
these two essential instruments. No nation
ever f0stered more liberaily or protected
more carefully its internal and coastwise
trade than we. The resultant magnitude
and pro ,perity Of our domestic commerce is,
believe, without parallel in the history of
the world. There was a time when we
stood first among the nations in shipbuilding
and Great Britain alone exceeded us in
ocean tonnage. Now, so far as foreign trade
is concerned. our ship yards are compare
lively silent and our flag has almost disap-
peared from the high seas.
Our merchant marine continued prosper
Gus as long as wooden vessels were the only
vehicles of ocean commerce and other ma
tions refrained from heavy subsidies to their
ships. When wooden vessels began to be
supplanted by iron steamers. the European
governments poured contributions into the
treasures of their steamship companies,
and the decadence of American shipping be-
gan and has continued ever since, II we
would regain our lost prestige, reinstate our
flag upon the ocean, and opel the markets Of
the world to American producers we must
make contest with the sane weapons which
proved so successful in the hands OF our
rivals. Suppose that for 25 years we had
given So. .000, 600 year in aid Of our foreign
shipping and reduced by that amount the
prepayment of our bonded debt, should we
not have been far better off than we are
nowP
1t is as essential to commerce that the cur
rency with which 1t Is conducted shall be
adapted, both In quantity and quality, to the
wants of trade as that the vehicles of trans
portation should be adapted to their pur-
poses. If the circulation be deficient, then
dishonored, distrust is created, and CONNER.
cial panic and disaster ensue. Ii the circu-
lation be redundant, prices become Temporal
rily inflated, wild speculati0ns are stimulat-
ed, debts recklessly contracted, credit dan
gerously expanded, and for time trade
seems to float upon. the high. tide
of success, when suddenly the failure
OF some large firm or banking house discl0s-
es the true situation, and the entire fabric
of fictitious prosperity falls with crash ev-
deficient circulation. The ideal financial
system would be one that should furnish
just enough absolutely sound currency to
meet the legitimate wants OF trade and no
more, and that should have enough elastici-
ty of volume to adjust itself to varying ne
cessties. l know this seems difficult at
tainment, but l believe it is substantially
possible. Could such a circulation Medium
be secured, the gravest commercial disasters
which threaten our future may De avoided.
N arrfnA nm nIIs-
ual activity in business has caused an abnor
NAL demand for money. There will always
be great danger at those times under the
castiron system of currency such as we
have. Had 1t not been for the peculiar con-
ditions which enabled the United States
treasury to disbnrse over $75. 900 in two
aud half months last autumn, l am con-
vinced that the stringency in August aud
September would have resulted in wide
spread financial ruin. Like commercial con-
ditions will frequently occur. 1t Is not prob.
able that their consequences can be averted
by action of the government, l am thor
oughly convinced that better method can
be devised which Will, In large degree,
place the power uf expansion and contrac-
tion In the hands OF the people themselves.
Opportunity for securing such currency may
be found in our bonded debt, which should,
In my judgement, be In part exchanged for
inter-cOnv0rtlble bonds, bearing low inter-
est. always interchangeable for money at the
will of the holder. Numerous devices for
enlargiDg credit may, and often do, avert
evils, but for the baneful effects OF debased
and tiuctuating currency there Is no remedy,
except by costly and difficult return to
sound money. The nation that attempts to
conduct foreign trade with a currency OF un.
certain value or inferior quality Is placed at
fearful disadvantage.
Believing that there is not enough OF either
gold or. silver In the world to meet the
necessities OF business. am an earnest bi-
metalist and concede to no one stronger