"I know it may be claimed, that the means necessary to redeem the Five-twenties in greenbacks may be realized by a new issue of currency bonds to be placed on the market. Of results in the future every gentleman has the right to his own opinion, and all may alike indulge in speculation. But it does seem to me that the Government would be placed in awkward attitude when it should enter the market to negotiate the loan, the avails of which were to be devoted to breaking faith with those who already held its most sacred obligations! What possible security would the new class of creditors have, that when their debts were matured some new form of evasion would be resorted to by which they in turn would be deprived of their just and honest dues?
"Falsus in uno, falsus in omnibus would supply the ready form of protest against trusting a Government with a new loan when it had just ignored its plain obligation on an old one.
"Payment of the Five-twenty bonds in paper currency involves therefore a limitless issue of greenbacks, with attendant evils of gigantic magnitude and far-reaching consequence. And the worse evil of the whole is the delusion which calls this a payment at all. It is no payment in any proper sense, for it neither gives the creditor what he is entitled to, nor does it release the debtor from subsequent responsibility. You may get rid of the Five-twenty by issuing the greenback, but how will you get rid of the greenback except by paying gold? The only escape from ultimate payment of gold is to declare that as a nation we permanently and finally renounce all idea of ever attaining a specie standard—that we launch ourselves on an ocean of paper money without shore or sounding, with no rudder to guide us and no compass to steer by. And this is precisely what is involved if we adopt this mischievous suggestion of 'a new way to pay old debts.' Our fate in attempting such a course may be easily read in the history of similar follies both in Europe and in our own country. Prostration of credit, financial disaster, widespread distress among all classes of the community, would form the closing scenes in our career of gratuitous folly and national dishonor. And from such an abyss of sorrow and humiliation, it would be a painful and toilsome effort to regain as sound a position in our finances as we are asked voluntarily to abandon to-day.
"The remedy for our financial troubles, Mr. Speaker, will not be found in a superabundance of depreciated paper currency. It lies in the opposite direction—and the sooner the nation finds itself on a specie basis, the sooner will the public treasury be freed from embarrassment, and private business relieved from discouragement. Instead, therefore, of entering upon a reckless and boundless issue of legal tenders, with their consequent depression if not destruction of value, let us set resolutely to work and make those already in circulation equal to so many gold dollars. When that result shall be accomplished, we can proceed to pay our Five-twenties either in coin or paper, for the one would be equivalent to the other. But to proceed deliberately on a scheme of depreciating our legal tenders and then forcing the holders of Government bonds to accept them in payment, would resemble in point of honor, the policy of a merchant who, with abundant resources and prosperous business, should devise a plan for throwing discredit on his own notes with the view of having them bought up at a discount, ruinous to the holders and immensely profitable to his own knavish pocket. This comparison may faintly illustrate the wrongfulness of the policy, but not its consummate folly—for in the case of the Government, unlike the merchant, the stern necessity would recur of making good in the end, by the payment of hard coin, all the discount that might be gained by the temporary substitution of paper.
"Discarding all such schemes as at once unworthy and unprofitable, let us direct our policy steadily, but not rashly, toward the resumption of specie payment. And when we have attained that end—easily attainable at no distant day if the proper policy be pursued—we can all unite on some honorable plan for the redemption of the Five-twenty bonds, and the issuing instead thereof, a new series of bonds which can be more favorably placed at a low rate of interest. When we shall have reached the specie basis, the value of United States securities will be so high in the money market of the world, that we can command our own terms. We can then call in our Five-twenties according to the very letter and spirit of the bond, and adjust a new loan that will be eagerly sought for by capitalists, and will be free from those elements of discontent that in some measure surround the existing Funded debt of the country.
"As to the particular measures of legislation requisite to hasten the resumption of specie payment, gentlemen equally entitled to respect may widely differ; but there is one line of policy conducive thereto on which we all ought to agree; and that is on a serious reduction of the government expenses and a consequent lightening of the burdens of taxation. The interest-bearing debt of the United States, when permanently funded, will not exceed twenty-one hundred millions of dollars, imposing an annual interest of about one hundred and twenty-five millions. Our other expenses, including War, Navy, the Pension list, and the Civil list, ought not to exceed one hundred millions; so that if we raise two hundred and fifty millions from Customs and Internal Revenue combined, we should have twenty-five millions annual surplus to apply to the reduction of the Public debt. But to attain this end we must mend our ways, and practice an economy far more consistent and severe than any we have attempted in the past. Our Military peace establishment must be reduced one-half at least, and our Naval appropriations correspondingly curtailed; and innumerable leaks and gaps and loose ends, that have so long attended our government expenditure, must be taken up and stopped. If such a policy be pursued by Congress, neither the principal of the debt, nor the interest of the debt, nor the annual expenses of government, will be burdensome to the people. We can raise two hundred and fifty millions of revenue on the gold basis, and at the same time have a vast reduction in our taxes. And we can do this without repudiation in any form, either open or covert, avowed or indirect, but with every obligation of the government fulfilled and discharged in its exact letter and in its generous spirit.
"And this, Mr. Speaker, we shall do. Our national honor demands it; our national interest equally demands it. We have vindicated our claim to the highest heroism on a hundred bloody battle-fields, and have stopped at no sacrifice of life needful to the maintenance of our national integrity. I am sure that in the peace which our arms have conquered, we shall not dishonor ourselves by withholding from any public creditor a dollar that we promised to pay him, nor seek, by cunning construction and clever afterthought, to evade or escape the full responsibility of our national indebtedness. It will doubtless cost us a vast sum to pay that indebtedness—but it would cost us incalculably more not to pay it."
This speech, here referred to, occurring, as it did when the ablest speakers were interested, was pronounced as a marvel. The great rows of figures which he gave, but which space will not allow us to give, illustrates the man, and his thorough mastery of all great public questions. He never enters a debate unless fully prepared; if not already prepared, he prepares himself. His reserve power is wonderful. What a feature of success is reserve power.
In 1876 occurred one of the most remarkable contests ever known in Congress. The debate began upon the proposition to grant a general amnesty to all those who had engaged in the Southern war on the side of the Confederacy; of course this would include Mr. Davis. Hon. Benjamin H. Hill, of Georgia, one of the ablest Congressmen in the South, met Mr. Blaine on the question. As space will not permit us to go into detail at all as we would like to, we give simply an extract from one of Mr. Blaine's replies:
"I am very frank to say that in regard to all these gentlemen, save one, I do not know of any reason why amnesty should not be granted to them as it has been to many others of the same class. I am not here to argue against it. The gentleman from Iowa (Mr. Kasson) suggests 'on their application.' I am coming to that. But as I have said, seeing in this list, as I have examined it with some care, no gentleman to whom I think there would be any objection, since amnesty has already become so general—and I am not going back of that question to argue it—I am in favor of granting it to them. But in the absence of this respectful form of application which, since May 22d, 1872, has become a sort of common law as preliminary to amnesty, I simply wish to put in that they shall go before a United States Court, and in open court, with uplifted hand, swear that they mean to conduct themselves as good citizens of the United States. That is all.