The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-07-29
The RESUMPTION Act.

The Resumption Act.
The decision Of the caucus Of the Demo- |
cratic members OF Congress to repeal the
resumption act will probably be respected
by the House OF Representatives. We may,
therefore, expect any day to see the an
nounccnlent that a bill for that purpose has
passed the House. In view OF the facts OF
the case, the resumption act becomes an in.
tercstine document. That act was passed
January Z, 1876, and is as follows:
:" BE II enacted By the Senate and House Of
REPRESENTATIVES of the United States of
dgaericd In Congress assembled, That the
Secretary OF the Treasury is hereby autho-
rized and required, rs rapidly as practica-
BILE, to cause to be coined, at the m,nts OF
the United States, silver coins OF the de-
nominations OF ten, twenty-five, and 1ifty
cents, OF standard value, and to issue them
in redemption Of an equal number and
amount of fractional currency Of similar de-
nominations, or, at his discretion, he may is
sue such silver coins through the minis, the
sub-treasuries, public depositaries, and post
Offices of che United States; and upon such
issue he is hereby authorized and required
to redeem an equal amount OF Such frac-
t;onal currency until the whole amount OF
such fractional currency outstanding snail
be redeemed.
''Section .. Thatso much OF section o,52i
OF the Revised Statutes OF the United States
as providcs for charge OF one fifth OF one
sDer centum for converting standard gold
bullion into coin is hereby repealed, and
hereafter no charge shall be made for that
service.
..Section 8. That section 51II OF the Re
yised Statutes OF the United States, limiting
the aggregate amount OF circulating NOTES
OF national banking associations, be and Is
hereby repealed; and each existing BANK
ing association may increase its circulating
notes in accordance with existing law WITH
out respect to said aggregate limit; ana
new banking associations may be organized
in accordance with existing law wltnoutre-
spcct to said aggregate limit; and the pro-
visions OF law for the withdrawal and re-
distribution OF aational-bank currency
among the several States and Territories are
hereby reuealed. and whenever ana so
often as circulating notes snail De issued 10
anv sucl, banking association, so increasing
its capital or circulating notes, or so newly
ORGANIZED as aforesaid, it shall be the duty
OF the Secretary OF the Treasury to redeem
the lepal-tendcr United States notes IN cX-
cess only OF $500, 000,0 0O to the amount OF
eighty per cent. OF the sum OF national
bank notes so issued to any banking assocla-
ton as aforesaid, and to continue such re-
demption rs such circulating notes arc issued
until there shall be outstanding the sum OF
p $500, 100000 OF such lcgal-tender United
States notes, and no more Ana on ana
after the 1st day OF january, a. ID. 1879, the
Secretary OF the Treasury shall redeem, IN
coin. the United States lcsal-tender notes
then outstanding on their presentation aoi
rcGemption, at the office OF the Assistant
Treasurer OF the United States in the city
ny
dollars. And to enable the Secretary OF the
Treasury TO prepare and provide for the re-
deBption in this act authorized or required,
he is authorized to use any surplus fc'c-
nucs. from time to time, in the Treasury not
otherwise appropriated, and to issue, sell,
and dispose Of, at not less than par, Iii com,
either Of the descriptions OF bonds OF the
United States described in the act OF Com
grcss approved July II, 1870, entitled AN
act to authorize the refundinS OF llic Id
tional debt with like qualities, privileges,
and exemptions, to the extent necessary TO
carry this act into full effect, and to use the
proceeds thereof for the purposes aforesaid.
And all provisions Of law inconsistent with
the provisions OF this act arc hereby re-
pcaled."
This act was passed a little more than
wear after the last panic in commercial CIR
cles occurred. There is nothing in the act
ITSELF rs we have had occasion to say before,
which necessarily produced the effects that
have resulted from its passage. The prom
Use that the Government would redeem Its
creenbacks in coin on and after january l,
1879. is the only feature OF the act that has
caused any evil consequences. That 1ea-
turc is supposed to have paralyzcd
trade. TO have DISTRACTED the chan
nels OF commerce, and to have shut
up many manufacturing establishments.
Not that the law could by its simple opera
ton control the laws OF trade and compel
return to specie payments in 1879, nor that
il could damage anybody's interests without
exercising that sort OF control over the MI
trlral course Of business and traffic; but be-
cause public confidence in the stability
of prices was disturbed. Men did not know
whether to borrow money or not;
whether to purchase goods or not;
whether to establish factories or not;
nor whether to engage in specu-
lations or not. Most Of them know not
much about the laws Of trade. and are not
to be blamed il they came to the conclusion
that inasmuch aS Il Congress OF statesmen
had provided for resumption at that time II
must needs take place on the LIST day OF JAN
uary, 1879. At any rate, we all know that
either the resumption act or something else
has reduced the whole country to Il most
deporablc condition. And as great
many people have taken the idea INTO
their heads that the act aforesaid
is responsible for all our financial troubles,
the House Of Representatives Will probably
BASS bill to repeal it. This bill, however,
will never pass the Senate. And so, after
all, the question is not 4 practical one. II
passed By the House, the bill! will be passed
TO silence the clamor OF the western States.
The first and second sections will hardly be
repealea. Nor Will that part OF the third
section which allows free banking and an
unlimited amount OF circulating notes OF ma
tional banking associations. Perhaps that
part Of the third section may be repealed
which requires greenbacks to be withdrawn
to the amount OF 50 per cent. OF the Dank
notes newly issued; but thus is not certain.
Nothing remains but the last part OF the
third section.
What will be the effect on the presiden-
tia, election: 1t will probably favor the IN
terests OF the Democratic party in the west
.,,s, 4Ian, in, alsfayn