The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-02-17
Steps To RESUMPTION.

Wheh MI. Diaiue balu, III HIS Speecn
on the finances, that we have ordered
resumption of specie payments to take
place on January 1, 1879, without having
provided any adequate process for bring
ing it about, he uttered the exact truth.
And this simple consideration alone is
sufficient to make manifest the puerih-
ties Of the Sherman Resumption Act.
For any one to affirm that resumption
can be Effected without providing steps
adequate to that end in advance, would
be quite sufficient to constitute him an
eligible candidate for the lunatic asy-
lunl. And yet many newspaper writers
discuss the matter as though resumption
would come to pass OF itself after an act
Of Congress had been passed directing it
10 be done, but without telling how it is
to be done.
The radical fact is,-the normal re-
latien between the country's coin and
currency has been lost. That relation
can be stored only by one of two modes,
either 80 to contract our currency as to
bring 1t down TO its proper proportions
as to our coin; or SO to accumulate our
coin as to bring 1t up to its proper pro-
portions as to our currency. The former
OF these modes would work infinite
harm to the business and property OF the
country. 1t could be effected only
by substituting interest bearing bonds
for the non-interest bearing greenbacks.
The public debt is consequently not
lessened, and at the same time the pub
lie circulation must be materially di-
minished. Hence, all the evils Of a great
currency contraction must ensue with
out at all diminishing the public debt.
The process of contraction, even though
gradual, must therefore be an unwise
procedure.
Some speak of contraction OF the cur.
rehey as though, il 80 commanded, the
greenbacks would incontinently come
in Of their own accord to be Cancelled.
They seem to forget that even our legal
tenders can not be redeemed without
paying for them. And to pay for them
in bonds, is only changing the form OF
our debt, and to our own disadvantage !;
for who would call 1t wise fnanciering
for man to pay his note which is not
bearing interest, by giving for it another
note that is bearing interestp By this
process the currency might be reduced
In volume, and the remainder would
certainly approximate more nearly to
the par Of coin. And if the process were
vigorously continued the currency could
be brought within the reach Of redemp-
tion in coin ON demand. But the effects
Of such a contraction would simply
Btfangle the country's business, and
produce d fatal asphixia Of the public
prosperity. 4f.s
There remains then only s4he one other
mode, that of accuinulatihg our coin till
1t attain its due relation OF amount to
the currency-that is to say, until we
can redeem our currency by coin on de-
mahd. That is resumption. 1t is re-
sumption too without contraction. The
gathering of coin as preliminary to that
event Is not a process Of contraction Of
the currency, because coin is not now
forming any portion OF the currency.
The volume Of the circulation would be,
while the coin is thus accommodating, pre-
cisely the same as though no accumula.
tion were in progress. And the public
knowledge that the coin accumulation
was going on for the purpose Of resump.
tion would give steadiness to the cur
rency little short OF resumption itself.
Some newspaper writer's, in discuss
ing this subject, startle themselves and
possibly some OF their readers, by con.
juring UP the vast array Of figures that
are made to represent the amount oi
coin required for resumption. One
writer, alter stating the amount Of cur
rency In greenbacks and national bank
notes to be $70O, 900, 900; says,---"It we un.
ldertake to gather DIP 500, 100000 in gold,
I'VE would get tired before beginning, the
very prospect is 80 oppressive M
Nowtile yeriest tyro in finance could
aeilthat writer that resumption win re'