The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-08-05


RICHMOND, VA,
small sums among numerous sellers. The
additional need Of currency at such times
is five or more per cent. OF the whole
volume, and il a surplus beyond what is
required for ordinary use does happen to
have been on hand at the money-centres, q
scarcity OF currency ensues, and also o
stringency in the loan market occurs. It is
in reference to such experiences that in q
discussion OF this subject in my an
nual message to the New York Le-
gislature of January 5, 1875, the sugges-
tion was made that "The Federal Gov
ernment is bound to redeem every portion
OF its issues, which the public do not wish
to use. Having assumed to monopoliZe the
supply Of currency and enacted exclusions
against everybody else, it is bound to fur
nish all which the wants OF business re-
quires. The system should passively allow
the volume OF circulating credits to ebb and
flow according to the ever changing wants
OF business. It should initiate as closely as
possible the material laws Of trade, which it
has superseded by artificial contriyances,"
and in a similar discussion in my mes
sage OF January 4th, 1876, it was said
that resumption should be effected
"by such measures as would keep the ag-
gregate amount OF the currency self-adiust-
ing during all the process, without creating
at any time an artificial scarcity" and with
out exciting the public imagination with
alarms which impair confidence, contract the
whole large machinery OF credit, and disturb
the natural operations OF business.
Means Of resumption, public economies,
official retrenchments, and wise finance, are
the means which the St. Louis Convention
indicates as provisions for reserves and re-
demptions. The best resource is reduc-
tion OF the expenses OF the Government be-
low its income. For that imposes no new
charge on the people.
II, however, the improvidence and waste
which have conducted to period OF falling
resources obliecs us to supplement the pur-
suit OF economies and retrenchment by some
resort to loans, we should not hesitate. The
Government ought not to speculate in its
own dishonor in order to save interest on
its broken promises, which it still compels
private dealers to accept at a fictitious par.
The highest national honor is not only right,
but would prove profitable.
| OF the public debt, 1885, 100000 bears in
terest at six per cent. in gold, and S72.000,-
900 at five per cent. in gold. The average
interest is 5.5S per cent.-a financial policy
which should secure the highest credit.
Wisely availed Of it ought gradually to obtain
reduction OF one per cent. in the interest
on most Of the loans. A saving OF one per
cent. on the average would be S17,000,000 a
year in gold. That saving, regularly in
vested at four and one half.per cent, would
in less than thirty-eight years extinguish
the principal. The whole 81, T00,O00,O0O OF
funded debt might be paid by this saving
alone, without cost to the people.
Proper Time for Resumption.
The proper time for resumption is the
time when wise preparations shall have
ripened into fperfect ability to accomplish
the object with certainty and case that
will inspire confidence and encourage the
reviving Of business. The earliest time in
which to accept a resumption can be brought
about is the best, even when the prepara-
ton shall have been matured. The exact
date would have to be chosen with refer
ence to the then existing state OF trade and
credit operations in our own country, the
course Of foreign commerce, and the condi-
ton of the exchanges with other nations.
The specific measures and the actual date
are matters 81 detail, having reference to
ever-changing. They belong to the domain
OF practical administrative craftsmanship.
The captain Of q steamer about starting from
New York to Liverpool does not assemble a
council over his ocean chart, and fix an angle
| by which to lash the rudder for the whole
voyage. Human intelligence must be at the
helm to discern the shifting forces OF the
waters and winds; human hand must be
at the helm to feel the elements day by day,
and guide to q mastery over them.
Such preparations are everything; With
out them legislative command fixing day,
al official promise fixing day, are shams.
They are worse. They are snare and q
delusion to all who trust them. They de-
stroy all confidence among thoughtful men
whose Judgment will at last sway public
opinion. An attempt to act on such COM
mand or such promise without prepara-
ton would end in a new suspension. 1t
would be fresh calamity, prolific Of confu-
sion. distruss, and distress.
The Act Of January Ia, 1875.
The act of Congress OF the 14th Of Janu-
ary, 1873, enacted that on and after the 1st
OF January, 1879, the Secretary Of the Trea-
surv shall redeem in coin the legal-tender
notes of the United States on presentation
at the office Of the Assistant Treasurer IN
the city of New York. 1t authorized the
Secretary to prepare and provide 1or such
| Resumption OF payment ny Lue USE VI ''ii
surplus revenues not otherwise approprl-
ated, and by issuing, in his discre-
ton, certain classes Of bonds. More
than one and hall of the four
years have passed. Congress and the
President have continued ever since
to unite in acts which have legislated out OF
existence every possible surplus applicable
to this purpose. The coin in the Treasury
claimed to belong to the Government had
on the 30th Of June fallen to less than forty
five millions OF dollars, as against fifty-nlne
millions on the 1st OF January, 1875, and
the availability of part Of that sum is said
to be questionable. The revenues are falling
faster than the appropriations and expendi-
lures are being reduced, leaving the Treasury
with diminishing resources. The Secretary
has done nothing under bis power to issue
bonds. The Legislature command, the OIL
cial promise, fixing day for resumption,
have thus far been barren. NO practlcal
preparations towards resumption have.been
1 made. There has been no progress. There
have been steps backward. There is no ne
cromancy in the operations OF Government.
| The homely maXims OF everyday life are
the best standards OF its conduct. A debtor
who should promise to pay loan out OF
surplus income, yet be seen every day
spending all he could lay his hands on in
riotous living, would lose all character for
honesty and Veracity. This offer OF new
promise, or bis profession as to the value OF
! the old promise, would alike provoke derl-