New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-01-26
see q good deal Of this practical Identified
I" tom before all is over.
IN FAVOR OF RESUMPTION. BUT AGAINST
Its ENEORCEMENT.

IN FAVOR OF RESUMPTION. BUT AGAINST
ITS ENFORCEMENT.
The trite recipe of Mrs. Glass for cooking a
hare began, "First catch your hare Inc
pretended "hard- Democrats" who are
irving to make specie payments without con-
traction by mere accumulation OF pile OF
gold, propose similar recipe for the treat
ment of the monetary question: "Flrst se1
tho gold" After we have gold enough to
maintain specie payments, they fancy that the
rest will be easy.
Therein they are mistaken, of course. Every
student Of finance knows that the mere ac-
emulation of idle coin in Treasury vaults has
no power to change the purchasing power OF
legal-tender notes. AS long as legal tenders
are at discount, their purchasing power
being less than that of currency, no hoard OF
gold which it is possible to procure VIII
suffice to make specie payments feas-
ible. Let us suppose, for example, that
the volume of currency is SO far In
excess of the actual requirements of the coun-
try that prices in this country, measured in
currency. are ten per cent higher than prices
in other countries, measured in gold. The
Treasury may have a hoard of two hundred
millions and yet what can it dol Ii IL com
menccs payment of legal-tender notes in coin,
that is contraction, with all its most dreaded fea-
lures Gold paid out will not flow into circulation,
but will fly from the country, or be hOarded by
those who believe that resumption Will prove
impracticabe; the volume of currency IN use
will be rapidly reduced, and credits based upon
that volume of currency will shrink proper
tionately and then will result one of two
things, either an utter failure of the effort to
resume, as Great Britain failed when it
first attempted specie payments after the
long suspension half century ago,
or that same sudden, forced, and
violent disturbance of all values and prices
which the opponents of contraction now pie
tire as so full Of disaster. If we cannot bear
the ills of contraction now, what chance Is
there that we shall be willing or able to bear
the greater ills of resumption at future
timer Yet the gold cannot be paid ont for
crccnbacks without formal order of Congress. No
bill as yet proposed by "hard-money Democrats"
provides for the payment of gold for paper
at any fixed date. When the time comes,
when the Treasury has an enormous hoard OF
gold, and the Secretary OF the Treasury pro-
poses to pay ont gold and take in greenbacks,
viii not the howl against contraction be as
loud rs it il n0w9 Win not the very men
who now propose this means of lodging
present contraction be equally hostile to with
drawal of currency then, with all the ineyita-
bly, consequent reduction in prices and valuesf
If SO, what follows Only that this country
will never resume specie payments until the
people are prepared to make the sacrifices
necessarily incident to resumption. The
Democratic policy is a fraud. 1t postpones
indefinitely the day of resumption. but
does not in any degree make resump-
ton the moro easy at any future time.
It will be said, we know, that n pile
Of gold, if large enough. would cause public
confidence in the ability of the United States
to resume. Very true, but the ability is not
now in question it is the WILL If the country
il not willing now to make the sacrifices, and
to meet the loss OF values incident to resump-
ton, Will it ever be more ready
1t has always been thought chief Obiec-
ton to the recipe of the good Mrs. Glass that
it contemplated TO method of catching the
hare. The Democratic recipe for financial
difficulties is open 10 the same sort of objec-
non; it provides no means for get
ting the gold. Secretary Bristow has
shown that it il very doubtful whether,
with all tho means at the disposal Of
the Government, enough gold can be obtained
and held to make resumption practicable
The Democratic plan does not render it
easicr-ndeed, it would surely make it
more difficult. Reputation Of the solemn
pledge to resume in 1879 would not strengthen
The credit of the country. If it is doubtful
now, it woud be far more doubtful then,
whc thor the Treasury could get the gold re-
ouil ed First catch the financial hare, say the
Democrats. but they make it UNNECESSARILY
more difficult to catch
If this country means to protect its honor, to
restore its industrial prosperity, to redeem its
pledges, it will met Ill the sacrifices involved
in contraction speedily and cheerfully. If not,
the task will not be made easier by postpOniug
it, nor will the device of "hard cney Demo-
Z" cr1tsr deceive ANYBODY,