The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-03-11
fr tJn. HE ', ssningssa Chronic'e tha"iea''l
M0 RI Money. W

The advocates OF an immediate return 70
specie. payments constantly endeavoE 20 Pos
the Chronicle and other Journals which are
unable 10 perceive the wisdom Of senator
shermsn's resumptior.s act In false posit'on
by calling them 'siBhattonists aud acso'
Gates Of the perpetuity Of san irredeemaoie
pager CURRENCY SO far as the CHRONICLE IS
concerned nothing could be more untrue.
We advise neither imitation nor contraction.
The Sherman resnmp'ion.act, a. we pave
frequently demonstrated, has resulted IN
serious contraction. amounting to many mill
sions This was probably not intended by
Congress when the act was passed. Doubt
less many of Its supporters honesty oel'eVeu
that the repeal of the restriction previously
placed 90 national-bapk capital would cause
IN increase of national.bank potes at ieast
equal TO the amount OF legal-tenders 10 De
retired, snd possibly equal to the demands
of the business interests OF the country. But
1t Is now known that the resumption'act mas
not produced this result.
There has been an immense dimiput'oH OF
the volume OF the circulating medium' some
new ua,iopaI banks have been organized
bu. many of the old banks have gone into H.
eaidstion, and many more have voluntarily
surrendered their currency. So that tne ac-
t,lal contraction produced In single year Is
enormous. and the work Is still 10 progress.
The banks have become frightened Wild Toe
prospec. Of being required to redeem toe.r
notes ia gold as early ss January J. 1922
which they evidently regard as impossioie'
Hence they have been reducing 1t 10 Inc MID
jmum permitted by law, and are no" pray
ing Congress to amend the laws 10 tnls re-
sppct. 60 as to reduce the minimum ifon
ss0. 900 to $4,000. Should Congress yield 20
this demand the contraction OF the oank CIT,
culation during the coming t"e years WIZ
become frightful. And II Congress snou'u
refuse to gran, this privilege. no means exist
to compel the national banks to keep tnelr
notes in circulation. Ii they are not pr.
mitted to retire them legally they Will Simply
lie idle In their vaults until gold can ce accu-
mnIated for their redemption over the'l
counters. r..
But this is not the only evil effect OF the
resumption.act. 1t, 10 enc, ouers pre-,
MUM TO bankers and others 10 Withhold
from circulation the legaI.tendere. The gold
dollar is now worth in legal.tenders about
one dollar and fourteen cents. The legal.
tender dollar is therefore worth osly about
87.72 cents in gold. The Government is
understood to be pledged 10 m Ike this legal.
tender dollar equal to gold in the course OF
the next two years and ten months; that Is,
TO add to its value little over four and one
fifth per cent. p=r ansuD. Hence legal
tender dollar laid away in the vaults OF
bank UNUSED will be WORTH as much TO the
owner as a 4 20 per cent. Government bond.
This is the premium offered by the Sherman
resunption-act 10 capitalists to withhold
leeal-lenders from circulation. Bankers,
brokers, and capitalists generally are. OF
course, boarding them, with the hope OF se-
curing this accretion. They would be blind
TO their own Interests not TO do so. AID in
the mean time the national banks are retiring
their notes az rapidly az practicable to the
minimum which the law will permit to avoid
their redemption in gold. The effect Of this
policy is, as we have seen, rapid contrac'
ton of the circulating medium, amounting
to many millions in single year, and a
practical contraction by hoarders of legal.
tenders many fold greater, producing, OF
course, great stringeucy and consequent
s!aguation in business.
The remedy is easy. Repeal the resump'
tion-act, which requires spece-payments on
lhe first day of January, 1879. This simple
measure will relieve the banks, stop actual
contraction, and bring out the vast quantl'
ties of legaltenders now boarded for rise
in value Of the greenback dollar. Wlll
Congress be wise enough to grant it at once
There will be ample time to devise other
measures for fnal resumption before the
business interests Of the country will be IN
condition to endure it without peril.