Evening star. [volume] (Washington, D.C.) 1854-1972, 1876-08-05

gal tenders the wants Of business ay fail e. keep In
use, and which, in order 10 interest wiz b. re-
hey can B. fGgde Whether e thy e5ntiSG a. eur
rency or lie absorbed into the vast 0f ecuIites
Of interest they draw Even If they we're r. reras in
IN their present form and the Government were t.
sgTee 10 pay them n Of interest making them
desirable a. investments they would cease circu
late and take their place with soyernm emit, state,
municipal and other corporate aud private bonds, Of
which thousands Of millions exist sInong u In the
Currency in. invesinents lies the only danger 70 b.
EnaTcd against IN the adoption of general m assures
that is, withdrawal Of any which are not pefma
men, exeesS hey ond Re wants Of business Even
fecs the public msginsion with the fear Of an ap-
pretended scarcity. In community where credit
is 50 much used fluctuations of values and vicissi-
tudes in business are largely caused by the pora
y beiefs Of men even before these beliefs con-
form 10 ascertained realities.
AMOUNT OF NECESSARY CURRENCY.
. he amount OF the necessary currency az given
time Cannot be determined arbitrarily, aud should
not be assumed on conjecture That am 1unt : sub
JeGt to both permanent and temporary changes. An
pened at the beginning II the civil by the sub
stituted use Of currency in place Of individual cred
fuetuates with considerable regularity al different
seasons Of the year-in the autumn, for instance,
%n BUYERS OF grain and other agricultural products
begin their operations they usually need 10 borrow
capital or circulating credit by which TO make their
be Of being dis ributed in small sums among mum T
Gus sellers The additional need Of currency AT
tGyh times l. nNe OF more per cent. Of tn whole
vol me- and If surplus beyond what is require for
ordinary Use does not happen to have been on hand
at the money centres scarcity Of currency and also
>tringenCy in the loweE market IL was in refer
snce I. snch experiences that an DISCUSSION this
snh.'ct in my annual message - the New \ urk LIS
t>lature OF January 3. Is5, the suC t0n " A. IA 10
that the Federal Government i bound - rrleeni
rnt,g portion ~ is Issues which Tia public ID not
wish To- use Having assumed g. l1nn polite the sup
ply Of currency aud enacted exclusions against
every bVdy else " Is hound e. furnish AL WHICH IA
wants OF business require. The stem should pos
and flow according 10 the eyer ChapCir, ,vsnts ~
business. IT should initiate closely as possible ths
natural laws Of trade which it has superseded By ar
my message ot January 8, 1885, II was said that re-
would keep the aggregate amount of the currency
self adjusting during AL the process without Gre.
exciting the public Imagination with alarms which
inJure confidence, contract the whole large nachin-
cry Of credit and disturb the natural operations OF
MEANS OF RESUMPTION
Public economies, official retrenchmputs and wise
finance are the means which the II Lows CUuven-
tion indicates the provision FIR ana re
expenses of the government below its income. for
that imposes no new charge on the people. IT, how
Quoted us to period of falling revenues oblige Us to
supplement the results IF economies and rttrencA.
tate The government ought not to speculate on its
own dishcnor in order to interest its broken
eept at fictitious par. The highest national honor
is not only right but would prove profitable. or the
gold, and S7l2,lcO,OoO at per cent in gold The
average interest is IS per cent 4 financial policy
awaited of, ought gradually to obtain reduction Of
one per cent on the interest most IF the loans
s77 10000 year irr gold that .aving regularly IN
vested at four and a-half per cent. would in less
The Whole s5 Of funded debt might be- be PAID Sf
by this saving alsne without cost to the people.
PROPER TIME FOR REsUMPrIoN.
The proper time for Resumption is the time when
wise Preparations shall have ripened into perfect
ablly 10 accomplish the object with certainty aud
ease that will inspire confidence aud encourage the
reviving of business. The earliest time in which
a he hrOr Crhf TAIN il haaf
when the preparations shall have been matUre1 the
exact date would have to he chosen with reference TO
the then existing state of trade, credit operations i'm
our OWL country, the course of foreign commerce
tons. The specific measures and the actual date are
matters OF detail having reference 10 ever changing
conditions They belong 70 the domain Of practical
steamer about starting from New York TO Liverpool
fix an angle by which TO lash the rudier for the
whole voyage. human intelligence must be at the
the winds 4 human hand must be on the helm to
feel the elements day by day and guide a mastery
over them Preparations for resGmption--such pre-
tive command liking day, al official promise II King
and delusiOn to all who trust them. They destroy
all confidence among thoughtful men, whose iulg
Inent will at last sway public opinion Ia attempt
to act on such command or such promise without
preparation would end in a sus pension L.
would DE a fresh calamity prolific of confusion dis.
trust and distress The act Of January Il, 1875,
acted that and after January l. lS7e the Secretary
Of the Treasury shall redeem in coin the legal tender
notes Of the United States presentation at the ONCE
Of the Assistant Treasurer in the city Of New York
for such resumption Of specie pawn by the use
any surplus revenues not Otherwise appry priatsd
bonds More than one and a-half Of thu four years
have passed. Congress and the President have con
tnued ever since to unite in act, which have legia
t.d out ot existence every possible surplus appica
bile 70 his purpose. The coin in the Treasury claimed
fallen les. than forty five millions Of dollars, as
against MY nine million, on the rs Of January;
- and the availability OF part of that i said
to he questionable The revenues are falling faster
than appropriations, and expenditures reduced,
leaving the Treasury with diminishing resources.
The secretary hss done nothing under his power q
issue the bonds The legislative command, the OH
Cial promise nXlng a day Tor resumption, have thus
lar been barren No practical PREPARATIONS towards
progress There have been steps backward.
There l. DO necrCmancy in the operations of gov
eminent. The homely maxms of every day life are
the best standards of its conduct. A debtor who
should promise to pay loan out of surplus income,
hands on in Toou af %ond Az e s n
for honesty and veracity. His offer of pro-
mise would alike provoke derision'
RESUMPTION PLAN OF THE ST. LOUIS
PLATFORM.
The 81. Louis platform dCnOUnces the failure for
eleven years to make good the promise OF the legal
tender notes.
II denounces the omission to accumulate any re-
serve for their redemption 1t denounces the con
duct which, during eleven years of peace has made
no advance towards resumption, but, Instead has
obstructed resumption by wasting resources aud
eNhaustiDg all our surplus income, and, while pro-
Tossing to intend speedy return TO specie payments
has annually enacted fresh hindrances thereto; and,
having denounced the bsrrenness Of the promise of
day Of resumption, ii next denounCes that barren
promise as hindrance TO res dmption liz then de-
mands its repeal. and also demands the establish
ment of Judicious system Of preparation for re-
sumption 1t cannot be doubted that the substtu-
ton OF system Of preparation without the promise
of a day. for the worthless promise Of day without
system Of preparation would be the gain # the sub
stance Of resumption in exchange for 1t, shadow.
Nor Is the denunciatiOn unmerited of thar improyi
dcnCe which in the eleven years since The peace has
consumed four hundred and nifty million II dollars.
and yet could not afford TO give the people sound
and stable currency. Five and "A half per cent
the expenditures of those eleven years even less,
would have provided all the additional coin nerdfd
to resumption.
RELIEF TO BUSINESS DISTRESS.
The distress felt by the people in an their bust
and industries, though II has its primo pal
in the enormous waste of capital occa Stoned by
the false policies Of government. has been great
ly aggrav ateG b. the mismana cement uf the cur
rency. Uncertainty i the prolific parent Of mis-
chiefs In all business. Never were it, evils more felt
than now. Men do nothing because they are unable
10 make any calculations which they can safely
RELY.
They undertake nothing because they fear loss:
in everything they would attempt they stop aud
wait. The merchant dares not buy for the future
consumption of his customers. The manufacturer
does not make fabrics which may refund has out
lay. lie shuts his factory and discharges IA. work
men. Capitalists cannot lend security IN " con-
slider safe, and their funds lie almost without inter
est Men of enterprise who have ere lit or securi-
ties TO pledge will not borrow. Consumption IA len
Ill