The Cairo bulletin. [volume] (Cairo, Ill.) 1872-1878, 1876-08-06

periencies that, in discussion of this |
subject in my annual message to the
New York legislature of January ), 1876,
the suggestion was made that the federal
government Is bound to redeem every
portion of its issue which the pnblic do
not wish to use. Having assumed to
monopolize the supply of currency and
enacted exclusion against everybody
else. it Is bound to furnish all which the
wants of business require. The system
should passively allow the volume of cir
culatlng credits to ebb and flow. accord
ing to the ver-changing wants of bust
ness. 1t should initiate, as closely
as possibly, the natural Laws
of trade, which it has super
seeded, by artificial contrivances. And a
similar discussion, in my message of
January 1, 1876, it was said that rcsump-
ton should be effected by such measures
as would keep the aggregate amount OF
currency seli-adjusting during the pro-
cess. without creating at any time an ar
tiicial scarcity without exciting public
Imagination with alarms which impair
confidence and distract the large whole
machinery of credit, and disturb the
natural operations of business. Public
economic official retrenchments and
wise finance are means which the ST.
tor reserves and redemption. The best
resource is a reduction of expenses of
the governmet below its income, tor
that imposes no new charge on the peo-
pie. If, however, the improvidcnce aud
waste. which have conducted us to pc
riod of falling revenues, oOlige US. to
supplement the results OF economies and
retrenchments by some resorts to loans,
we should not hesitate. The govern
ment ought not 10 speculate on its own
dishonor in order to save the interest of
its broken promises, which it still com
pels private dealers to accept at a ficti-
tious par. The highest national honor
is not only right, but would prove profit
able. OF the public debt S9S5000 600
bears interest at per cent. in gold, and
SG5.000,O00 at per cent. in gold. The
average interest is 81 per cent. A iinan-
cial policy which should secure the
highest credit. wisely availed OF,
ought gradually to obtain a re-
duction of l per cent in interest
on most of the loans. A saving of | per
cent on the average would be Sl1 100000
a year in gold. That saving. regularly
! invested at u per cent. would in less
than thirty-eight years eXtinguish the
principle. The whole Sl,100,000. 900 OF
the funded debt might be paid by this
saving alone. without cost to the people.
| The proper time tor resumption is the
| time when wise preparations shall have
rlpened into perfect ability to accom-
| plsh the object with a certainty and
ease that will inspire confidence and en-
, courage the reviying OF business. The
! earliest time in which such result can be
! brought about is the best. Even when
preparations shall have been matured,
| the exact date would have to be chosen
with reference to the then existing state
of trade and credit operations in our
country. the course of foreign commerce
and condition of exchanges with other
nations.
The specific measures and actual date
are matters of detail having reference TO
ever changing conditions; they belong
to the domain Of practical administrative
craftsmanship. The captain OF a steamer
about starting from New \ ork TO Liver
pool does not assemble council over
his ocean chart and fix an angle by which
to lash the raider for the whole voyage.
A human intelligence must be at the
helm to discern the shifting force OF the
waters and winds: a human hand must
by day and guide to a mastery over
them. Such preparations art
everything. Without them legis.
lative command fixing a day, an official
promise liking a day, are shams. They
are worse, they are delusion, and q
snare to all who trust them. They dis
troy all the confidence among thought
full men. whose judgment will at las,
, sway public opinion. An attempt 70
{ act on such command or such "A prom
ise, without preparation, would end in q
new suspension. 1t would be fresh
calamity prolific Of confusion, distrust
. and distress. The act OF congress OF
, July, 1915, enacted that on and after the
lst of January. 1879, the secretary of the
; treasury shall redeem in coin legal tender
notes of the United States on presen.
tation at the office of the assistant treas
urer In tue city Of New York. 1t author
lies the secretary TO prepare and provide
for such resumption OF specie payments
by the use of any surplus revenues no.
otherwise appropriated, and by issuing
in his discretion, certain classes Of bonds
More than one and half of four years
have passed Congress and the presi
, dent have continued ever since to unite
, In acts which have legislated out of ex.
istence every possible surplus applicable
TO this purpose. The coin in the treas
! ury, claimed TO belong to the govern
ment, had on the Both of June fallen Ia
less than SD, 100000, against 500, O0O,0 0t
on the lst OF January, 1875, and the avail
ability of part OF that sum is
said 10 be questionable. The revenues
are falling foster than appropriations
and expenditures are reduced, leaving
the treasury with diminishing resources
The secretary has done nothing under
his power 10 issue bonds. The leglisla-
| off ria tix,i,,
a day for resumption, have been made
There has been no progress. There have
been steps back ward. There is no nee
ron acy IN the operations of the govern
mcHt. The homcly naxims ofcvery-day
life are the best standards Of it, conduct
4 debtor who should promise TO pay a
loan out Of surplus income, yet to b,
seen every day spending all he could lay
his hands on in riotous living, would
lose all character for honesty and We.
racity. His offer OF "a new promise
or his profession az TO the value of the
Old promise, would alike provoke deris-
ion. The 81. Louis platform denOunces
| the failure for eleven years to make good
the promises Of legel-tender notes. /,
| dcuGunccs the omission to accumulate
any reserve for their redemption. 1t de-
nounccs the conduct which during eleven
years ofpeace has made no advances to-
wards resumption, no preparations foI
resumption, but instead has obstructed
resumption by wasting our resources
and cxhaRstlng all our surplus income
ana while protesting to intend a speedy
return 10 specie payments, has an
| nually cnactd fresh hindrances there.
to; and having first denounced
the barrenness Of the promise OF the day
| al nlnnnnano Lot