The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1876-08-10

debt, nine hundred and eigty-fye millions
bear interest at six per cent. in gold, aud
sixty-fiye millions at five per cent. in
gold. The average interest is 5.58 per cent.
A financial policy which should secure the
highest credit wisely availed of, ought grad
ually to obtain q reduction of one per cent.
in interest on most of the loans. A saving
of one per cent. on the average would be
seventeen millions q year in gold. That
saving regularly invested at four and one
half per cent. would in less than thirty
eight years extinguish the principal. The
whole seventeen hundred millions Of the
funded debt might be paid by this saving
alone, without cost to the people. The
proper time for resumption is the time when
wise preparations shall have ripened into a
perfect ability to accomplish the object with
q certainty and ease that will inspire con-
hdence, and encourage q reviving of busi-
ness. The earliest time in which such
result can be brought about is 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 the
condition of exchanges with other nations.
The specific measures and actual dates
are matters of detail, having reference to
ever changing conditions. They belong to
the domain of practical administrative states
manship.
4 The captain of steamer about sailing
from New York to Liverpool does not assem-
BILE council over his ocean chart, and fix
an angle by which to lash the rudder for
the whole voyage. A human intelli-
gence must be at the helm to discern
the shifting forces of the waters and the
winds. A human hand must be en- the helm
to feel the elements, day by day, and guide
to mastery over them. Such preparations
are everything. Without them, a Legislative
command fixing day, an official promise
fixing day, are shams. They are worse.
They are a snare and delusion to all who
trust them. They destroy all confidence
among thoughtful men, whose judgment will
at last sway public opinion. An attempt to
act on such commad or such a promise,
without preparation, would end in a new
suspension. 1t would be fresh calamity,
prolific of confusion, distrust and distress.
The act of Congress of the 18th of July,
1875, enacted that on and after the LIST of
January, 1879, the Secretary of the Treasury
shall redeem in coin the legal-tender notes
of the United States on presentation at the
Office of the Assistant Treasurer in the city
of New York. 1t authorizes the Secretary
to prepare and provide for such resump-
ton of specie payments by the use of any
surplus revenues not otherwise appropri-
ated, and by issuing in his discretion certain
classes of bonds. More than one and q half
of the four years have passed. Congress
and the President have continued ever since
to unite in acts which have legislated out OF
existence every possible surplus applicable
| to the purpose. The coin in the treasury
claimed to belong to the government had on
the 30th OF June fallen 10 less than $45 ,000,-
600, sgainst $50, ,000, 900 on the LIST of January,
1876, and the availability of part of that sum
| is said to be questionable. The revenues are
| falling faster than the appropriations and ex-
penditures are reduced, leaving the treasury
with diminishing resources. The Secretary
has done nothing under his power to issue
bonds. The legislative command, the official
PROMISE fixing day for resumption, have
| been made. There has been no progress.
There have been steps backward. There is
no necromancy in the operations OF the gov
\ e<nment. The -homely maAtr,.s-af every
| day life are the best standards OF Its cen
duct. A debtor who should promise to pay
loan out of surplus income, yet be seen
every day spending all that he could lay his
hands en- in riotous living, would lose all
| character for honesty and veracity. His
offer of a new promise, or his profession as
to the value of the old promise, would alike
provoke derision. The st. Louis platform
denounces the failure for eleven years to
make good the promises of legal-tender
notes. 1t denounces the omission to aecu-
mulate any reserve for their redemption.
| 1t denounces the conduct, which, during
eleven years of peace, has made no ad-
vances toward resumption, no preparations
Tor resumption, but instead has opstrueted
resumption by wasting our resources and
exhausting all our surplus income, and
while protesting to intend speedy return
/ 80 fo hac ouprallv anqarQ0
| fresh hindranees thereto, and having
| first denounced the barrenness OF the
promise of day of resumption, it next
denounces that barren promise as hind
rance to resumption. 1t then demands its
| repeal and also demands the establishment
| of q judicious system of preparation Tor
resumption. 1t can not be doubted that the
substitution of a system of preparation, with
out the promise of day, for the worthless
promise of day without system OF prep
aration, would be the gain of the substance
of resumption in exchange for its shadow.
Nor is denunciation unmerited of that inn
providence, which in eleven years since the
peace, has consumed 81, 500, 900 900, and yet
could not afford to give the people sound
and stable currency. Two and halt per
cent. on the expenditures Of these eleven
years, or even less, would have provided
all the coin neediul to resumption. The
distress now felt by the people
in all their business and industries,
though it has its principal cause in the
enormous waste oil capital occasiened by
the false policies of our government, has
been greatly aggravated by the misnanage
ment of the currency. Uncertainty is the
prolific parent of misehiefs in all business
and never were its evils more felt than now,
Men do nothing because they are unable to
make any calculations on which they can
!; safely rely. They undertake nothing, be
cause they fear a loss in everything they
!. would attempt. They stop and wait. The
merchant dares not buy for the future con
sumption of his customers. The manufac
turer dares not make fabrics which may NO
refund his outlay. He shuts his factory ant
discharges his workmen. Capitalists can no
lend on security they consider safe, ane
Il their funds lie almost without interest. Mer
of enterprise, who have credit Of securities
to pledge, will not borrow. Consumption
. has fallen below the natural limits'of rea
sonable economy. The prices of many thing
are under their range in frugal specie pay
/ ment times before the civil war. Vast masse
of currency lie in bank unused. Ayear ant
t half ago legal tenders were at their larges
volume, and twelve millions since retire.
/ have been replaced by fresh issues of fifteel
millions of bank notes. In the meantime
the banks have been surrendering abou
S four millions month, because they can no
: find profitable use for SO many of thei
g notes. The public mind will no longer az
e cept shams. 1t has suffered enough from i
: lusions. An insincere policy increase
b distrust. An unstable policy il
creases uncertainty, and the peopl
= need to know that the government
It moving in the direction of ultimat
i safety and prosperity, and that it is doing S
}. through prudent, safe, and conseryatiy
/ methods, which will be sure to infict no ne
:, sacrifice on the business of the countr.
f Then inspiration of new hope and we
s founded confidence will hasten the restorin
b process of nature. and prosperity will begi
5. to return. The st. Louis Convention col
e cludes its expression in regard to tf
J. currency by a declaration of its conyi
is tioDs as to the practical results of the sy
r tenn of preparations it demands. 1t says: "
S, believe such system, well devised, an
n above all, intrusted TO competent hands 4
e execution, creating at no time an artifci
Is scarcity of currency, and at NO time alarI
1t ing the public mind into withdrawal
d that yaster mischief, credit, by Whit
S. ninety-fve per cent. of all busine
s, transactions are performed-a syste
le open, public, and inspiring general 60
g. fidence from the dav of ifs adontion-w