Year: 1876




upon scheme OF expansion which would speedily
raise the price of bonds to unprecedented figures.
and by the time they should succeed in purchasing
those that now stand security for national hank
circulation they would have increased the national
debt by countless millions, and instead of making
saving for the Treasury they would end by depryino
it of the eight m illions of tax annually paid by the
banks, and the people would have lost the additional
eight millions of local tax derived from the same
source.


nave not spoken Of the confusion, the distress,
the rum that would result from forcing twenty-one
hundred banks suddenly to wind up their affairs
with nearly thousand millions of dollars due them
which in some form must needs be lquidated and
paid. The commercial fabric of the country rests
upon the bank credits, and nothing short OF fnan-
cial lunacy could demand their rude disturbance.
Whoever would strike down the banks under the
del usion that they be driven to surrender their
bonds for inflated legaltenders, knows little Of the
laws OF finance and still less of the laws Of human
action.


Among the anomalies presented in the currency
discussion, Mr.. Chairman, is that the West and the
South should have large element clamorous for
Imitation. OF all sections interested in the specie
standard the West and the South stand first. The
great staples produced in those vast and fertile reg
ions, wheat corn, -four, beef pork, hides, tobacco





emptory subjected to the gold standard when sold.
The prize of cottens sent to Lowell is just as much
determined by the gold standard that which is
ported to Manchester, and the breadstuHs sold In
New York are daily equated with the prices Of the
Liverpool corn exchange. And Of all the other
commodities. And yet we hear representatives Of
the great interests that thus compelled to sell at
gold prices, resolute and determined in their de-
mands that they shall be allowed to purchase all
their supplies on the PAPER basis. When it is re-
membered that the whole of the annual crop in this
country, reckoning all products reaches the enor-
nous amount of three thousand millions the gold
basis and that the surplus not consumed by the pro-
ducers is many hundreds of millions of dollars and
that the value of the whole is estimated by the gold
Standard the farmers of the country may find profit
able food for reflection in calculating what the agri
cultural interest loses every year by irredeemabe
paper currency.


One great and leading interest of my own and
others States has suffered, still SUFFERS and will con-
tlnue to suffer long the currency is of rredeem-
able paper. mean the ship-building and naviga-
tiOn interest-one that does more for the country
and asks less from it than any other except the agri
cultura interest that represents our distinctive
nationality in all climes and upon all seas; an inter-
| est more essentially and intensely American than
any other that falls under the legislative power Of
the Government and which askslonly to-day to be
left where the founders of the Republic placed it
hundred years ago. Give us the same basis Of cur
reney that great competitors of the British En-
pire enjoy, and we WILL within the lifetime of those
now living, float larger tonnage under the Ameri-
con flag, than was ever enrolled by nationality
/ since the science Of navigation has been known
among men. Aye, more, sir; given US the specie
basis, and the merchant marine of America sailing
into all zones and gathering gain from all continents
will bring back to our shores its golden profits and
supply to that coin which will steady our system
and offset the drains that weaken in other direc-
tions. But ships built the paper basis, cannot
compete with the lower-priced of the gold basis
and whoever advocates perpetuity of paper money
in this country confesses his readiness and willing
ness to sacrifice the navigation and commercial in
terest for all time.


1t is otter made the subject ofreproach by the OPP
ponents Of the Republican party that years have
elapsed since the war closed and nothing effective
has been done toward the resumption of specie pay
ment. Even if this were true the Democrats are
not justified in making the charge, for their party
ganzation has been the principal obstacle and stun
blingblock in the way of resumption. But in fact,
| great deal hGs been done toward specie payment
by preventing initiation and keeping the Government
thus far within the four-hundred- million limit. To
do this it has been necessary to wage very sharp
war with the Democrats, and against their demands
that the national debt be paid in egaltender notes.
the Republicans have had their hands full thus far TO
| maintain the demands and dues of common honesty.


As matter of fact, however, am quite willing to
| admit that during these ten years no positive and
vigorous steps have been taken toward specie pay
ment So long the business Of the country was pro-
crossing reasonably well, it was not practicable or
possible to set to work deliberately, without the
pressure of necessity, to force specie resumption.
-
argument, that this was so, and he knows why it
was 60. Though not having the same moral Issue
involved, we are situated very much as Mr.. Pitt
found himself when asked why he did not bring in q
bill for the suppression of the save-trade. He said,
"The Bristol merchants too strong for the minis
try, because so many interests in the kingdom are
| connected with them"


But now the case is changed. Over-trading, the
wild spirit of speculation, the undue expansion Of
credits, enormous investments in premature enter
prises. have worked out their legitimate and nevta
BILE results, and with full volume OF paper money
the crash came; prices have fallen settling day has
arrived, painful liquidation proceeds, and the whole
commercial and financial fabric is settling down on
solid foundation. Experience convinces where pre-
cept falls only on deaf ears, and to-day have
by the thousand longing and asking for a return to
specie, wno, three years ago. would have violently
opposed 1t. To attempt now to build up business by
further imitation of the currency involves theory so
wild and destructive that it requires man of great
nerve or of great ignorance to propose it, Indeed
the shock to confidence by the panic OF 1878 was so
great that many commodities and especially many
fabrics, are below their normal price, and firm,
clear, decisive step in the direction Of sound re-
deemable currency impair ting stability to our finan-
cal system and confidence to the people, wonld in
the judgment of our best merchants and manufac-
turers be followed by rise in prices, by quick and
widespread demand for labor, and by generous and
general revival of trade and business throughout the
| country. And beyond that we should enter upon an
export trade in our fabrics such we have not
dreamed of in the past. The time is ripe for it, out
ward circumstances all propitious, and 1t only
remains for Congress to give to the country steady
currency and the bounding energy and enterprise of
our people will do the rest.


There is not cotton-plantation in the South. not


grain grazing farm in the West, not coal pit
iron-furnace in Pennsylvania OF Ohio, not manu-
factory in New England, not a ship-yard ON the At
lantic coast, not lumber-camp from the Penobscot
| to the Columbia, not mile of railway between the
| two oceans, that would not feel the quckening
ganful influence of final and general aequiescence
| in measures looking to specie payment The repub-
lcans mediate no harsh, or hasty or destructive
| policy on this queston-but one that shall be firm
considerate, and conclusive. The democracy, by re-
fusng to cooperate in the good work, keep tho
matter in agitation and prolong the era Of dullness
and inactivity in the country. Having stabbornly
refused to vote for egaltenders when the salvation
of the Union demanded them, that party can not
fttingy complete its financial record by resisting all
honest efforts to restore the specie standard to the
people.


We are told, however, Mr. Chairman, in tones Of
most solemn warning that this country is not able
to maintain its paper-money at par with coin Sir,


reject the suggestion with scorn, and 1t seems to
me if could be persuaded Of its truth should be
shamed to rise in the American Congress and pro-
claim it.. Here is California, one Of our younges-
states, hirty members of the Union being senior to
herr with vast territory and sparse population,
able to maintain coin payment, and maintaining It
through financial storm Of terrific force, and by
reason Of it reganing position Of sovency and safe
ty with a rapidity and certainty to which the pa
per basis affords no parallel but only contrast
Here to the north of us lies the Dominion Of Canada
stretching from Newfoundland to the borders of
Alaska, with an inhospitable climate soil In great
4 art inferior ours commerce checked and suanand