Wilmington daily commercial., 1875-12-08
SECOND EDITION.
The Road to Resumption.

EXTRACT FROM THE REPORT OF THE SECRETARY OF
THE TREASURY.
After considering at length the advantage and
necessity of resuming specie payment, Secretary
Bristow's report says:
In furtherance of the purpose of the act of the
last Congress to provide for the resumption OF
specie payments the Secretary recommends that
authority be gwen for funding legal-tender notes
into bonds bearing low rate OF interest. Such
bonds should run for longer period Of time
than those now authorized for refl,nding the in,
terest-bearing debt, and ehould be made avail
able to national banks for deposit to secure their
circulation and other liabilities to the Govern
ment and should bear rate Of interest 30 low
not to cause too rapid absorption of the
notes.. II seems probable that bond bearing
interest at the rate OF four per cent. would in
vite the funding OF q sufficient amount of legal
tender notes to lessen materially the sum OF gold
which, in the absence OF such provision, must
be accumulated in the Treasury by the 1st Of
January, 1879, to carry cut the imperative re-
qulremonis of the act of Jan. 14th, 1875 III it be
appreh ended that authority to the Secretary to
fund an unlimited amount OF notes might lead
to too sudden contraction of the currency, Con-
grees couid limit the amount to be funded in
any given period ofltima. The process being in
no sense compulsory ss to the holders of United
States notes, and thei rate Of interest on the
bonds being made low it II is not probable that
currency winch could lind profitable en-
dernption in such bonds Only
the excess of notes above the needs of business
would seek, such conversion. Authority to the
SECRETARY OF The Treasury to redeem and cancel
two million Of legal-tendtr notes per month by
this process would greatly facilitate redemption
at the time now fixed by law, and besides would
have the advantage of publicity as to the exact
amount to be Withdrawn in any given mouth.
Bonds issued for this purpose should be of the
denomination Of $50 aud sl00. and any multiple
classes of holders OF United States notes. The
faith of the Government nov stands pledged to
resumption ON and after JAN. l, 1879,
and TO tho final redemption and re-
moval from tue currency of the
county OF the legal-tender notes as fast as they
shall be presented for redemption, according to
the provisions of the act of Jan. II, 1875. To
resume or the LIST of Janrsary, 1879, without fur
ther legislation, would require the accumula-
tion of large amount of gold i'll the treasury
in order to avert the possibility OF failure of tie
plan. Such an amount Of gold Dan be pro6ired
with difficulty, and not without moro or less eni-
barrassing effect upon the trade and commerce
of our own and other countries. The present
abundance and cheapness of both currency
and capital presents favorable opportunity for
the Withdrawal and redemption OF a consider
able part of the outstanding lega-tender notes,
thereby making easy and eifectual the redemp-
tion now pledged. Such withdrawal of legal
tender notes, thus dispensing with the necessity
ton to the amount withdrawn, would tend to ap-
preciate those remaining outstanding, and make
it easier to protect and keep in circulation tho
silver coin now authorized To be issued. .ss.s
The act last referred to is an express recogn-
tion Of the duty and obligation of the Govern
ment to resume specie payment at the day
therein named and however widely different
may be tho views of the intelligent persons up
on the means adopted by Congress. it is gratify-
ing to know that the end sought to be reached
1f o,,d
that majority of the people, wherever the mat
ter has been publicly and fully discussed, have
signiiied their approval of the determination Of
Congress- to be faithful to its pledges and to re-
lieve them Of the ills OF an irredeemable paper
currency.
The act in question not only makes express
provision for resumption at fixed date, but
commits the Government to the use Of all such
means as may be needful to that end If expe-
rience shall show that the means provided by
Congress need to be supplemented by further
legi Station for tho easier and more certain ac
of the end it must be assumed
that Congress will not suffer the great purpose
to be impeded for want of such additional leg |
islation. The act confers large powers on the |
Secretary of the Treasury, touching the Issue of
United States bonds for the purpose of procur- |
ing the supply Of gold necessary to execute such
Of its provisions as go into Immediate operation, |
and to provide for the redemption in gold Of |
United STATES notes outr,tentiing on aud after .
the lat OF January, 1879. In this respect the ,
mower conferred on the Secretary is ample; bu! |
if, for any cause. it ehould l5 found Impractical
BILE to accumulate IN the Ii4asnry a sufficient |
amount of gold to carry out The prova-
ions of the act, tic Seciova.y ID leit
without the choice of other means to accomplish
the end 1t may, perhaps be doubted whether
the process of accumulating large amount of |
gold by given time could go on without meet
ing opposition from the financial powers of the |
world. 1t is safe to say that 80 large an amount
of gold as would be required to carry oat the
purpose and direction of the act cannot be sud
ienly acquired, 1t can be done only by gradual
processes, and by taking advantage of favorable
conditions of the money market from time to
lime.