The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-06-09
OPPOSITION TO THE RESUMPTION ACT
Its Practical Operation in Different Sections
Of the Country.
THE BLAlNE-TARBOX W0RDY WAR.
Wanted. An Early Report on the Brs-
tow-MuIe Claim
FROM OUR SPECIAL CORRESPONDENT.

FROM OUR SPECIAL CORRESPONDENT
wAsHISGros, Juno 8. 1870
THE WAR ON THE RESUMPTION AcT--TuE SOFT
MONEY ELEMENTS OF BOTH PARTIES AT
woRK-THE BASES or OPPOSITION TO IT.
ITS PRACTICAL OPERATIONS SHOWN.
The attack upon the Resumption act preparing In
tho House comes at tho time with reports from
the West that an attempt will be made in the Cncin
natl Convention to secure demand for It's repeal In
the republican platform That is TO say tho imitation
LIST and sot money elements in both parties prcpar
ing combined attack upon tho law Their aim is not
generally understood; IL Is tho beginning Of move
ment for the aboshmcnt OF the national banks and the
substitution OF currency entirely Of greenbacks
issued BY the government, and to DO increased or
diminished at the caprice OF every Congress- To ro-
peal the Resumption act 10 tho batte and the
leaders VINO planning 70 do il mean II they can
tim, the question whether the paper currency shall
consist entirely Of government notes entirely Of
shall DO made OF the main Issues in the
fall campaign.
There has been for days considerable inquiry
about the working OF the ACT which, u Is probable
few members Of the present Congress have studied II
was signed January H. 1878 II was regarded at the
time by most OF those who supported H. ond by prob
ably all who opposed IT, imitation measure; and
the third section which In effect authorizes FREQ bank
ing, q sop 10 the Western nfiationiss, who had
been crying for redistribution OF the currency
cordng TO geographical sections and whose great CON-
plant was that the East had more banks than the
West; that the West and South needed more banking
opportunities 10 make Thorn prosperous aud that Con
gross ought to allow those sections banks There
great difference OF opinion In Congress to tho
probable working OF the while under discus
sion, and II denounced by hard money men as
measure OF no value and probably dangerous In it,
consequences.
To-day Il IS denounced by the in1atonists and soft
money men, who demand its repeal for no reason 50
far hear here except that they suppose to
look toward specie resumption. aud because is IN the
way Of their desire crush out Of existence tho whole
national bank system. The act has certainly worked
In q different way than was supposed by the Congress
which passed Il Since II made banking free 10 every
and left the establishment Of national banks to tho
operation OF natural laws It Is found that tho West and
South havo lost cad OF gaining in banks ana bank
Ing capital In tho cities Of Chicago and ST. Louis and
the les. generally which camored for currency
In 1874, moro banks have voluntarily wound up than
in any other section. Now England, which had the
largest banking circulation proportional to population
has Withdrawn tho least.
Tho net result may DO stated thus:--Thcre werc in
circulation o's January IA, 1875
~ national bank notes $3Sl, sal 450
or greenuacks... .................... 49, OO00 oO
Making total circulation OF $7S3, s6i 450
There were in circulation Juno I, 1885,
OF national bank nocs... $359, o6s 4i0
OF grcen6acks.. $40 i2S G6s
This reduction OF the volume OF currency Of only
$50, no. sl2 during q period Of sixteen and q half
months or at tho rate Of ST. 1877 1888 per month. This
s in fact when 1t compared with the contraction IN
business pracsical expansion OF the currency, for
have more currency now for the volume OF business
done than before the passage Of tho act
II Is plain, ut any rate, that this very slight
reduction In tho volume OF tho currency has not
affected business In any way. No ono pretends that
money 10 scarce Tor the is II there
a demand for money IN any part Of the country which
could not be readily supplied tho act itself authorizes
the establishment OF now banks without limit Any
body anywhere may establish national bank ut any
time or the circulation Of ono already ex-
isting, the single condition that no shall deposit
bonds as security But under this FREQ banking act
natural causes have led 70 decrease and not In
crease OF national bank circulation
Moreover, tho rate OF decrease is so slight that Il
docs not equal the sum which bipartisan majority
Of both houses ready, three months ago. to
should be taken and cancelled Of legal tenders alone
II Is probable that now, II the Committee Of Ways
and Means wouldntroduce bill directing the Secretary
the Treasury redeem and cancel ereenbacks q tho
rate Of 81 ooo 900 per month"; would get enough DEM
ocratic and republican votes 10 pass tho House, and
has always been believed that tho Senate would at
once pass such bill
The chief difficulty with tho Resumption act il that
while Its enemies attack It because they mean TO do
stroy the national banks and mako the circulation
trely Of government notes, which they do not wish TO
redeen,abe In gold, tho friends or tho net
point any probability Of actual resumption in
1879, tho law provides. II gives authority and
power the Secretary TO enable him TO resume at tho
date specified; but whether he means to do not
whether ne is making any preparations to do not
whether he regards The law practical or q .bul
against the comet" its opponents call Il, no one
knows.