The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-10
DEMoCRArrV FINANCE MEASURE.
The Report Of tho Caucus Commi ttes on a
Pln1 Of Resumption.


Tho majority of the Democratic Con-
gresslonal Finance Caucus Committee is report
ed 70 have agreed upon plan OF resumption,
which coDtempates no actual specie pay IN e nts
until after the exriration OF period Of more
than ten yolre. aud which, In the mean time,
will require the national banks to accumuiate
annually sum In gold equally to three per cent.
OF thetr circulation until the accumulation shall
equal at least thirty yer cont. OF the entire ma
vides thtt the coin thus accumulated In tho
vaults OF the u tional banks shall pe Sc, aside
and retained las part Of the lawful money
reserve ~ which such assOci itiOns ARE, by ex-
listing laws, required to maintain"
The effect OF thus iii, II enacted, will be TO
accumul'te finally not less than one hundred
millions (SlOO,OO00O Of demonetized coin in the
vaults Of the banks, ana to force into active cir
culation an equal amount OF Legal tend or note.
now dormant, which are now held as a permA-
nent reserve and are not permitted to be thrown
into active circulation. Occasionally a sirgle
bank may temporarily diminish its Iegal-tender
notes below the legal tender reserve which IL Is
required to bold but. in the aggregate, It Ia
certain that the banks honestly comply with the
law, and MAINTAIN the full amount Of legal
tender reserve which Ia made obligatory upon
them. This reserve Il not, however, IN any sense
a part OF Its circulating medium, and the legal
tender notes OF which 1t Is composed are practi
cally dead and withdrawn. The scheme OF tho
caucus Qi reported correctly, which trust IL Ia
not Is not therefore specie RESUMPTION move
ment, hut measure to positively initiate ut once,
coupled with a vague and indefinite promise to
begin contraction some ten years hence
But why inn tie, II the purpose /, In good faith
To hnslly contractf Contraction and resump-
price OF gold indicstes with mathematical Ger
tainty that We have redundancy Of paper and
that fee conversion of 1t into gold would pro-
duce an instant neOus contraction II the
Treasury were - resume to morrow, there Is no
available machinery which would WITHDRAW the
erecnbacks from circulation and send them in
Tor redemption rs fast IA the people would de-
sire to have them withdrawn and redeemed {:
and the people In the most Inflated section Of the
country would run the fhstest to get up FIST TO
the redcemlng counter. No man consequently
can lie considered to favor resumption of specie
payments who opposes contraction, however
much soohlstry he may use to deceive himself
and others.
THIS caucus currency scheme secms intended
To test the capacity Of the country IN respect to
both tnnati and contraction; and TO give our
currency moro leatory or gambling CHI tracter
than II now pOsseaEes-thereby Increasing the
uncertainties and fluctuations IN all prices, bust
ness, and investments. The silly frog Ia the
fable Inflated TIL he split: for the purpose
however, Of Initiating the size OF the OK But
he did not commit the supreme folly OF infAt-
ing for the mere purpose OF contracting or col
lasping. In short, this bill of the caucus re-
ported as agreed upon, will. when examined
and analysed, be found to be nothing nut the
Ohio rag baby, besmeared with a little new
paint and bedeoked with 0audy now dress ;
and III II Is ever seriously brought before Con-
gress, all the infatlonsts Of both parties who
loosely examine 1t will recognize the original
brat, cheerfully adopt II, and speedily learn to
lowell DAVID A. WELLS.