The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1895-03-29
FINANCIAL PROBLEM


The
FINANCIAL PROBLEM
was the topic of paper by Mr.. G. S.
Hichborn of Augusta, which was one of
the most interesting and important of
the day. 1t treated of the evils of present
and impending financial actions. Our
monetary system was Of crazy-quilt
variety. 1t was full of barnacles and III
a condition of danger. Congress has
generally displayed it's ignorance in
dealing with this question. We have
nine different forms of money. We have
first S346, 900, 900 of non-interest bearing
demand notes or green backs. For the
payment of this the United States treas
urer has sum of gold varying from 40
to 40 millions, and liable to be wiped
out at any time were it not for the
clause in the resumption act allowing
the sale OF bonds to replenish this gold
reserve. Recently bonds for over $780,
900, 900 have been sold for such replenish-
ment, some of them at a rate lower than
the securities of Maine command. This
green back circulation is an anomaly,
with it's great amount of liability and
the small amount of gold kept to meet
this liability. Once in time of war the
green back was a blessing, but it's use in
time of peace is contrary to Ethe settled
conviction of the best fpanciers. In
time of peace the greenback should be
put away with the, luusket and battle
flag.
Another curious anomaly is the fact
that while a green back, with far less
than it's face value of gold behind it, is
full legal tender, gold certificate,
with the tull valuue in gold behind it,
is not legal tender. Speaking of the
silver question, Mr.. HIGH born said that
the Generalization of silver occurred
twenty years ago. and had about as
much to do with prices as the sun spots
do on the curl of dogs tail.
The silver dollar is now worth about
fifty cents on a dollar, and our little
stock of gold must guarantee, according
to the policy of the government to main
tain a parity between silver and gold
and to redeem in gold its greenbac
and certificates, a vast sum of silver,
greenbacks and certificates more than
five hundred million dollars. Tt was
id:ocy for this government to try to
maintain the party between gold and sill
yer. An international bimetallic ar
rangement might do it; but as that is
| impro bable, it need not be discussed.
Mr.. HIGH born then wentson to discuss
| the recent actions of Congress, which he
denounced in unmeasured terms, in caus-
| ing our bonds to be paid in coin instead
of gold. Mr.. Il ich born advocated the
use of silver in subsidiary capacity,
the number of grains to be increased to
raise it's relative value with gold. Ex-
cess of silver beyond q small subsi dia-
~ circulation, should be retired at the
expense of the government.
Men talked OF a double standard, but
there could be no such thing. The ounce
of gold is the business mans standard,
and against it laws are powerless.
| Temporizing with silver has cost this
nation untold millions. Mr.. HIGH born
| 6AUfSSSSo NuO LopO bAdb buo t1u6SUlOn
would cease to be the shuttlecock of poi
itics The national bank notes were
without question the best currency a
| nation ever had; and the restrictions
| now placed upon the circulation of those
banks should ne repealed. The tax on
national banks should also be reduced
one fourth.
! Mr. HIGH born also followed with gener-
al Recommendations as to the curren CIV
system. He did not favor the Baltimore
plan, which in his opinion sheltered the
bill holders at the peril of the deposit
ors. The mutual guarantee feature OF
the plan was also bad.
Mr.. Hichborn summarized his own rec
concentrations as follows: Enact that
the word "coin" in all United States
bonds shall mean gold" Issue three
per cent long time bonds in popular
form and take up the legal tenders. Us
ing these bonds as basis, allow the banks
to issue circulation to the full limit
and increase or contract it at will.
Increase the tax on circulation not to
exceed one-quarter of one per cent per