The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-01-27
a u,oaatnS Business journal en- tue
x,onrers OF the ReSasMpttOss ACT.
IRON the New YORK Bulletin.l


Az. Judging from the present appearances,
Il il not impossible that the resumption act
of last January may prove to DE perma
reut measure, It is important TO ascertAa
what the operation OF that act, as IL no"
stands, would involve.
First Of sill, the Government u required
20 purchase an amount OF silver sOlhc'esI 70
retire all the outstanding fractional currency.
The amount Of silver required Tor That pul'
pose would be about SAG, 900, OOo, costing III
gold say $40, 600, 900. An amount mas peer
already purchased, which may De GSst, n'nao
as having cost, in gold, about Staa w. ~
There remains, therefore, some SS,oo1uoV
In gold 10 be sill expended In carrying out
what is known rs the silver Clauses OF the
act.
onired. either through boarding surplus rev.
enues or through selling bonds, to accumu.
late reserve of gosd to enable the Gov.
eminent TO pay any ieSal-tender notes
presented prepayment on and afterganuary l.,
1879. 1t is left entirely to the Secretary to
determine what amount Of gold should be so
accumulated, and he has not enlightened the
public on that point. Its perhaps improoa'
Die that he would fix on reserve beio" one
dollar in coin to three in notes al the con-
traction of legal.tenders should 60 on for the
next three years as it has for the past year the
volume outstanding on January I, 1879,
would be about $40, 000,00 which, at the
ratio we have cobjecIured, would require
about sl13, 600, 900 Of gold to se held on the
day of resumption. Surprising the present
average amount OF gold owned by The Irea.
sury to be 100000, 600, which, considering
that some $40, 900, 600 OF its present coin con-
sists of silver, is not too low an estimate. inc
Treasury would have to acquire some 80.
600, 600 Of gold coin. Add 10 Ibis to,ooo,ooo
the $50, 100000 worth OF silver still 10 be ac'
uuiyed, ard we have Sl0SseO,oO 0 as the
amount of gold and silver coin to be acc,Imu-
lated between now and January l, 1879, or at
the rate OF S34 000, 900 ayear. The prospect
needs to be grayely considered. According to
the reports OF .he Treasury, the net annual
expolt OF gold and silver to foreign countries
for.the last four years has been SG0, 900 QUO.
This amount goes out in exchange for artl.
cIcs which the country fiud 1t necessary 10
procure abroad ard the countries receiving
fhe metals needs them either for the arts aud
manufactures, or for banking ard currency
purposes, or to send TO ASiatc countries IN
payment of commodities thence received. II
The Treasury boards annually S34, 100000 Of
gold and silver, according to the above shown
legal requirements, We stall have oriy
$4,000. 600 to spare for export, in lieu Of the
$4,000, 900 usually exported. What then?
How shall we meet our payments to
foreign countries? If it be said that we
must reduce our imports to the extent
that We 'curtail our exports OF the pre-
cious metals the answer is that there is no
means of effecling reduction Of the imports
in authorization of the change in the specie ex.
ports, and that the imports will be reduced
only as the effect OF severe Crisis IN the
exchanges caused by the llck OF specie for
shipment. But, even if we could at will ad-
Just the volume of our imports to this reduc
ton in our available means OF paying lot
them, that would only very partially meet the
case. Europe needs the gold and silver we
propose TO hoard just as much as we need
the goods We accept in exchange for our spc.
Gle; and it may he well to consider in ad.
vance what may be the effect if Europe does
not get less than half our usual supply Of
these metals. or only two thirds OF its usual
annual supply from all producing countries.
Europe's needs for our contributions OF
gold and silver are of the most lm-
Deratiye kind. There are no accumu-
lated stocks that can easily compensate
for any protracted and tytraueouS holding
back of O considerable portion OF current
new supplies. The only available stocks are
in the great controlling banks, and if these
be 'artiiciay drawn upon, the loan market
is convulsed, credits are contracted, and
panic ensues. Such condition OF things in
Europe Immediately deranges the tinances
Oh this side. In all matters Of credit we are
the dependent and therefore the weaker
party. We could no longer borrow there
on securities. our importers would have their
credits curtailed, and We should be exposed
to the return of our securities held there,
our obligations to pay being increased while
our means of payment was being withheld.
This is no exagscraton Of the prospect we
have to face, If the resumption act is to be
enforced as it now stands. II means disas-
ter and panic Of the most serious kind-so
serious that it is very doubtful whether the
preparations 10 resume could be maintained
through the trial.