The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1877-06-13
RESUMPTION AND IRIS EFFECTS.

RESUMPTION AND ITS EFFECTS.
Those who are in position to form fair
conclusions in regard to the plans of the sec
rotary of the treasury do not hesitate to ex-
press the conviction that the purpose OF
that functionary is to steadily carry forward
his resumption programme. While the sec
rotary is reticent in communicating his
plans to the public, fact calculated to mis-
lead those who are anxious to believe in the
honesty of his professions, his acts warrant
the conclusion that he has made up his
mind to carry forward his resumption poll
CIV in defiance of law, and with the
full knowledge of the calamities
to business that must inevitably
ensue. The question of resumption and
consequent contraction is one in which the
people have such deep and vital interest
that it assumes more importance than any
other now demanding consideration, and
Secretary Sherman mistakes the temper of
the people if he supposes they will sub
nit quietly while this ruin is being
wrought out by himself, the gold
gamblers of New York and the bondhold-
ers of Europe. The country has
had quite enough of C@sarism in dealing
with states and elections, and are not dis
posed to submit to policy designed to sweep
from them their substance without making
such protests as will command attention.
1t is part of the history of the resumption
act that its friends professed that it was not
designed to produce contraction of the cur
rency, fact established by the declaration
of Sherman himself who, while the debate
was going forward on the bill, said:
Now we know very well the feeling with
which that idea contraction of legal tenders)
is regarded not only in the senate, but all
through the country. IL is believed TO operate
disturbing element in all business rela-
tions of life; 10 add to the burthen of the
debtor by making scarce that article in which
he Is bound to pay his debts; and there has
been an honest, sincere opposition TO this the
ory of contraction. Therefore, although ii may
be the simplest and the best way to reach
specie payments, 1t is entirely omitted from
this BILL
In this way suspicion was disarmed and
the bill became a law, and now this
man as treasurer assumes that the law
gives the very authority which as sem
ator he declared it did not possess,
and disregarding its plain provisions, in
augurates a policy fraught with the direst
business calamities. The New York Daily
Bulletin, in pointing out the embarrassments
and calamities likely to follow in the wake
of Sherman's policy, says:
Now, however, unfortunate it may be to
have the secretary Of the treasury pursuing
policy that is inconsistent with bis own pro-
LESSONS, however demorali2iRg 10 have re-
sumption attempted througa wholly illegal
methods, yet it is worse than all to have
method that invites the defeat of resump-
ton; which the secretary's scheme Of in
direct contraction does. His plan will
scarce for market uses. How scarce will APP
pear from q little consideration. IN order 10
accumulate coin reserve for the redemption
which he admits to be his purpose-he will
need to add fifty or sixty millions OF coin TO
goe Tbs or wod enc
tirey denude the maj et OF coin and produce
great inconvenience In procuring gold for GUS
trade and for expectation. That pressure,
we're as might be, ought to be endured as best
IL might for the sake Of the important object
by far the lesser half of the dificrity
Added TO this would come the con-
traction of legal tenders. How far
traction, is one of his secrets. as, however,
he attaches much Importance to 1t as to do
record, it is to be assumed he contemplates do
ing IL to some purpose. II he proposes TO re-
duce the active circulation to the volume of
S3O0, 900, 000-the limit fixed for the 80 per
cent. contraction-then a contraction of sixty
millions OF legal tenders would have to be
effected within the next nineteen months.
Now while the withdrawal of the $50 Coz, 0O0
OF coin would directly derange the gold market
and seriously embarrass certain class OF mer-
further withdrawal of $50, OOO,OC) of legal tend
ers would conformity operate as contraction
OF sl2OOO0,UO0 In the reserves OF the banks.
The very mention of such fact Is a
eonfutation of the possibility OF the OPP
Grafton; any banker would acknowl-
edge on the instant. These Withdraw
ais would come directly out of the banks
of the three leading cities, but chiefly out of
those of New York. The banks are required
by law TO hold in lawful money illegal tenders
or specie) an amount equal to Is per cent. OF
their deposits. At present the deposits OF the
clearing house banks of New York, Philadel-
phia aud Boston amount to 1894 co.. 600 and call
for reserve Of sS3,500,0O0: the reserve actually
ders and s2l,6OO,0O0 of specie-leaving a surplus
of $50, 500 600 beyond legal requirements. The
banks could Ill afford to part with only the
20,500,O00 of surplus, IL a severe stringency
gramIne would take every dollar of reserve and
calls for still sl6,OO0,0O0 more. This, OF course
means the quick suspension OF every bank In
our leading cities and panic IN its widest
1t may be well to remark that the Daily
Bulletin, which points out so lucidly the
disasters which Sherman's policy is certain
to force upon the country, is a resumption
organ, an evidence that public sentiment
has undergone a great change. and that the
revolution Is still gaining more rapid head