The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-12-09


purchase of foreign-built ships Free trade
in ships would quickly restore our lost mari
time Importance; and free trade in everything
would eventually, though perhaps slo wlv
enable us to compete with the foreign ship
builders Our native builders have a mono
poly of constructing vessels for the coasting
trade, which nobody proposes taking from
them. Free materials would increase the pro-
fits of this branch of business, and we are in
no danger of losing the art of ship-building
SO long as our vast coasting trade is exclu-
sively in American hands.
SHALL WE PREPARE FOR RESUMP-
TION?
From the N Y. Times.
Is anything to be done this session to fa-
cilitate return to specie payments? 1t is
not fit subject for quackery. There is no
short and easy method of escaping from the
quagmire of inconvertibility, aud regaiuinq
the solid, hard-money ground. Mere legisla
tion will not extricate us from the one or put
us in possession of the other. We must reach
the desired end gradually, if we would escape
grave disaster-and naturally, if we would
have the end permanent when reached
The marked decline in the gold premium
during the last year is tribute TO the i'm
proving credit Of the Government It is n
partial guarantee against the rude shock which
many have anticipated as an inevitable alton
dant Of resumption. But that is all. The
appreciation IN the value of greenbacks
does not necessarily imply near
approach TO consumption. The green
back might be at par with gold. and
specie payment still an unrealized boon.
Before that can be attained, the holder of
paper must be able to exchange it for gold at
pleasure; and before equal exchaugeability
can be established, the Government must be
IN condition to meet all probable demands
for gold. 1t might be possible for the Gov
eminent to resume while the banks remain
under the shelter of inconvertihilitv. But
satisfactory resumption involves readiness
for specie payments on the part of the banks
as well as Of the Government. The Govern
ment is nearer condition of fitness than
the banks, but neither can be truly described
as prepared or preparing, for a change which
all admit to be desirable
The misfortune is that Congress has not
only not done anything to promote resump-
ton, but is continually doing something to
postpone it. The Currency act of last session
was step ia the wrong direction. The conn
try is in no mood to endure contraction. Our
business classes have difficulties enough to
contend with, and the application of the
contraction screw would render them in
toierable. Rather let US wait until what
ever excess of paper that is in circulation is
absorbed legitimately. Time is essential to
the operation of this process, but little
delay Is preferable to widespread ruin. On
the other hand contraction would not be a
greater evil than expansion; and the latest
enactment ls, In effect, measure of expan-
sion. 1t adds something to the volume of cur
rency, and so adds to the difficulties incident
TO resumption; while the gold bank scheme,
which Congress also sanctioned, will GER
tainly not make these difficulties less.
II, then, Congress really desires now to
contribute somewhat to resumption, it must
begin by rejecting all measures tending in
any manner to swell the amount of currency.
We have no hope that this session will witness
limitation of the bank privileges conferred
by the late act to the banks actually chartered
under 1T. But the country is entitled to ask
that no sectional camor shall be permitted to
force US further from specie payments. If
the present distribution of currency is nm
let it be amended, but let it be
amended by rearraDging the bank facilities
already existing, not by authorizing an in
crease of inconvertible paper This must be
understood to be the settled policy of Con-
gress, or all talk about specie payments will
be vain.
In the next place, some means must be
employed to enforce preparation for resump-
tion on the part of the banks The bill in
troduced by Mr. Sumner is in this respect
sound. 1t makes imperative the accumula-
tion OF specie reserve, and nothing else will
be effective. Had the banks been required
from the outset to set aside as specie re-
serve respectable proportion of the amount
OF coin they have received for interest upon
bonds deposited with the Government their
would by this time have been
almost complete. But they have done lite
rally nothing to qualify them for resumption.
The gold they have received has been sold,
and the premium has served to increase their
dividends. This state of things should not
be allowed to continue. The banks owe to
the public the employment of such precau-
tionary measures as are required to meet the
emergency which must arise, sooner or later.
And having evinced no disposition to act
they cannot reasonably complain
if the coercive method provided by Mr.. sum
ner, or something like it, be now sanctioned
by Congress.