New-York tribune., 1876-03-13
THE DKMocRAnC CAUCUS on FINANCE
WHAT THE CHAIRMAN OF THEIR CONVENTION LAST
YEAR IN CONNECTICUT THINKS OF If-INFLA-
TIoS AND COIIAPsR-SUPEEME FOLLG-THE OHIO
RAG BABY NEWLY PAINTED A CARD FROM

WHAT THE CHAIRMAN OF THEIR CONVENTION LAST
YEAR IN CONNECTICUT THINKS OF If-IhFLA-
TON AND COILAPsE-sUrEEMEF FoLlf-THE ONO
RAG BABY NEWLY PAINTED A CARD FROM
From ~ The I,16lic Nsc Yorl, March Q, 1876
The majority of the Democratic Congress
soual Finance Caucus Committee Is reported 10 have
agreed upon plan of resumption whrh eontehpates :
actual specie payments until after me lhg m % o.
time will require the National banks 10 accumulate
annually sum in gold equal 10 . per cent OF tne gou
cent OF the entire National bank circulation Inc pan
ais of the National banks shall he aside and
tained "as part the lawful money reserve whc sueh
tair The effect Of fhis m II enacted viii be accu-
muae finally not less than Sl0OO0OO 900 OF den0netLed
coin n vaults OF the banks and to force into active
circulation an equal amount of legalender notes now
dormant which are now held as permanent reserve,
and are not permitted TO be thrown into active circua-
ton Occasionally single bank may temporarily dimln-
ish its cgaitender notes below the legaitehder
reserve which it is required TO hod; but, IN
the aggregate ~ is certain that the banks hon
esty comply with the law, and maintain the fu amount
OF legalender reserve which is made obligatory upon
them This reserve il not, however IN sense part
OF circulating medium, and the egatender notes OF
which il is imposed practically dead and Withdrawn
The scheme Of The gf reported correctly winch
trust Is nOD is not therefore specie resumption move
ment but measure to positively lnbste a once coupieu
with vague and Indefinite promise to Degn cohrac-
tion some ten years hence. .,,, o.
But why initiate, II the purpose IS in good Ialtn 10
finally contract Contraction and resumption are one
and the thing; for the daily price Of gold Indicates
with mathematical certainty that have redundancy
paper and that free conversion OF II into gold Wod
produce instantaneous contraction. III inc lGehsurS
were to 10 morrow, there Is no available ma
chinery which would withdraw the greeubacks from err
culaOn and send them ia for redemption the
people would desire To have them wlthdrawn ana re
deemed ard the people In the most inflated section 0i
the country would the fastest get up first 10 the
Tedeeming counter No man consequently can De consld
cred to favor resumption of specie payments who OPP
noses contraction however much sOphistry he may use
10 deceive himself and Others. This caucus eur.
rency scheme Intended 10 test the capacity oi
the country in respect both imitation and contraction
and TO glye currency more aieatOry or gamDllng
character than possesses thereby increasing te
unc, rtanes and fluctuations ia all prices, business and
investments The silly frog in the fable Inflated TIL he
split for the PURPOSE however of initiating the size oil
the OK But he did not commit the supreme folly OF IN
fatng for the purpose ot contracting or coapsihg
In short this bill of the caucus reported as agreed upon
will when examined and analy be found Ia be noth
ing but the Ohio gbuby, besmeared with hte new
paint and bedeckcd with gaudy new dress and " ~ IS
ever seousy brought before Congress ali the nfatiOu
ist OF both parties who closely examine VIII recognize
10 loyeU DAVID A. WELLs.