Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-07-23
HOW TEE RESUMPTION ACT Is
WORKING.

WOhhANGs
It was not known until quite recently
that the act passed at the last session
of Congress, looking to the resumption
Of specie payment on the lst of jan
uary, 1875, removed all the wholesome
restraints of the funding act of 1870.
Secretary Bristow now claims that
he is free not only to swell the
bonded Indebtedness of the United
States, but to increase the sale Of five
per cent. bonds above the limit of
500,000,000, if in his Judgment it is
necessary to prepare the way for re-
sumption. Already he has sold millions
of five per cent. bonds at private sale,
and with the proceeds purchased silver
bullion with which to redeem fractional
currency, thus adding millions of
Indebtedness TO the public bur-
dens. To show ho" far the Ad-
ministration is determined to
go in carrying out this ruinous policy,
we quote from the Washington National
Republican the following report of an
interview between a representative of
that paper and Senator Sherman, the
author of the specie resumption act.
Rep.-What progress are we making,
Senator, toward specie payments underyOur
bill?
Senator Sherman.-Just as much as the
law provides for. Secretary BristOw is car
rying it ont in spirit and in letter.
Rep.-YeS; he has had favorable OppOr-
tunities for executing the enacting section
of your bill. But how can the necessary
gold be obtained to make up the $3.50, OOO,-
900 of circulating medium? 1t is a fire.
quent assertion, not only Of the opponents,
but also the advocates Of q specie basis,
that the Republican party has not made
provisions for the resumption Of specie pay
ments.
Senator Sherman.-The demOnetiZing
system Of European countries is throwing
large amounts Of silver upon the market;
the yield from orr mines is heavy and will
probably reach SS0, 0e0, 900 this year. These
two causes operate 10 diminish its value as
compared with gold, and the accumulation
by the United States Treasury for circula-
ting purposes will be easy. The
proceeds from the sale of the
five per cent. bonds are being
applied TO the purchase Of silver. So we
are encouEtering little opposition in the
first step. But this same demOnetizing sys-
TEN Of Europe renders it difficult TO obtain
gold Just now. The BanE of France is
striving to get gold and the Bank Of Eng
land continues 10 gain and hoard until it
has more than ever before in its history.
IL appears to b. uphill work 30 reach
specie basis. But the very action
Of the foreign powers tend 10
produce a uniformity Of values and 10 re-
duce the probabilities or a demand from
any source, other than speculative, for cash
gold, and with equal trade or the balance
in our favor, premium on gold is incOn-
siS;ent and improbable. However, the time
for supplanting our currency for gold has
not come.
Reporter-Well, do you think We'll
make l.?
Senator Sherman-Make II; why we've
got TO make it. There is no other hope for
the prosperity Of The country. Nobody has
ever supposed that it would require more
than SIW. 100000 for resumption, and we
can accumulate that IN one year.
The Senator asserts that Sl0O, O00,000
in gold can be accumulated in ono year,
notwithstanding the fact that the
country is being drained # the pre-
ciOus metals at a more rapid rate than
at almost any time since the war, as
the following statement Of exports will !
show: