Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1877-08-24

point cut such dstectsn IN TIE Law ns have occurred
% me b its execution.
TEE NODES OF RESUMPTION.
There are two modes Of assumptions either 70
which i commonly called contraction Of the
currency, or by the accumulation OF coin IN tne
TreaSury to enable the Secretary 10 MAINTAIN re-
sumption. The one practical defect In the law e
bonds Of the United States for United states
in circulation among the people. he is praetcaly
prohibited from selling bonds to the people, ex-
oept By an evasion OF tue laE, or throuen pEIHats
sold at par In coin, and still easier a. par, or 81
premium, IN United States notes. The process OF
selling for United States notes need not go Sr pc
fore the mere fact that they are receivable for
bonds would bring them up 70 par in ootns ana
| thst Is specie PAYMENTS
But the reason Of the refusal Of Congress to
grant this authority often asked Of It, was that It
would contract The currency. and this fear OF con-
granting the easiest, plainest and surest mode OF
/ resumption. To avoid contraction, u proHlueu
| limit ss TO AMOUNT and that. when issued United
States notes might be retired to the extent OF
four-hfths of the bank notes issued. TINS Wss tne
only provision for redeemIng United States noIes
that Congress made would make, and tnis
It was supposed, would reduce the United States
notes to $500 900 before January !, 1873; Inc
actual experiment only proves the folly Of the cry
We had for more money, more money.
HERE WAS FREE BANKING,
A free and almost unlimited right to everybody to
issue more money, but Dnluekly for visionary the
orists it was money that had to be secured-not
wildcat money, but money that people could sleep
| upon without fear OF breathing The result was
that under free banking the issue Of circulation
has been far less than was expected and, there
fore, The reduction OF United States notes was less
| Still there was some reduction.
| Greenbacks have been retired under the act Of
January, 1875, to this time to the amount Of S27,
905 700 and S29 100000 OF circulation were Is
sued 10 National banks.
since the LIST Of March last the reduction Of
Uniued States notes has been t5,I46,264. and this
/ TO banks, amounting TO near So, ,50o, ,0O0
do not say that this is the only reduction Of the
currency that has happened but It is the only re-
ductlon that was made by the United States. The
National banks under different law and from
the very necessity OF free banking are at liberty
and this has been done by them since the 1ss OF
January, 1875 to the amount Of sS6,e24,612. But
this is reduction effected by each bank, guided by
Its interests and the circulation it can safely
and prudently MAINTAIN.
| There are now deposited with the Treasury by
private corporations, banks and individuals, ST.,
ITO 900 OF United States notes. OF this there were
deposited by the National Banks at their last
in the cash reserve held by them, s42 800 600
than the amount required by law, clearly showing
that there Is no want OF currency when demanded
| for the requirements Of business.
Since January /, 1877, the United States has Is
sued Ss4 236 900 OF silver coin, and has redeemed
with that S21 10000 fractional currency now al
most superseded by silver oon, and also holds
$s,16o.s6s of United States notes for the redemp-
this there was no contraction but substitution Of
coin for fractional currency.
It was an error to make the retirement Of Unit
cd States notes depend upon the issue Of bank
notes. The two had no relation to each other, bat
the retirement Of United States notes should de-
pend entirely upon the amount necessary TO be
withdrawn, to advance within the limited time
the residue to par in coin, and the simplest mode
of doing this was to authoriEs
THEIR CONVERSION INTO BONDS
At the pleasure Of the holder, the bonds to bear
the lowest rate Of interest that would in ordinary
t1mes be maintained st par In gold. To this the OBJ
bearing note into an interest-bearinR note, and
that IL true, but what right have We as Nation
has any bank oripdIvidua 70 force into circulation
as money itS note upon which 1t pays no inJeresti
Why ought not any one who issues o promise to
pay on demand be made to pay II when demanded,
or pay interest tbereafteri What right has he IN
law or justice to insist upon maintaining in olreu-
lation his note which he refuses to nay according
to his promise, and which he refuses TO receive II
payment of note bearing INTEREST," certain
amount Of United States notes can be, and ought
to be maintained at par in coin, with the aid
Of . moderate com reserve held in the
Treasury, and to the extent that this
can be done they form the best possible paper
money! debt Of the people without interest, Of
carry and handle. Beyond this the right to issue
paper money, either by the Government or BY
TO all Glasses and should continue single day
beyond the necessities that gave 1t birth
But, If Congress should see proper to confne the
ssi Success resumption 10 'n' present 'AN' nave
TIE SECOND NODE
OF resuming, by accommodating coin gradually, so
that when the time fixed for resumption arrives.
the Treasury may be able to redeem such notes IS
/ are presented. In this respect the Resumption
frame it. The Secretary is authorized to prepare
for resumption, and for that purpose TO use the
OF bonds, all Of which are now at or above par IN
coin. The power can be, ought to be, and will bo
| executed If not repealed.
This accumulation, both of silver and gold, can
| be made by arresting from expectation our own
production Of these metals. This Is more than
sufficient TO supply our wants for this purpose
and, Fortunately, We have plenty Of other pro.
ductions-corn cotton, wheat and rabrics the fruit
| Of our industry, for export. This country is the
greatest producer OF gold and silver in the world.
The balance OF foreign trade is IN our favor. Dur
ing tho last fiscal year our exports exceeded our
imports in gold value the sum Of $685. ,S55, and
this balance is steadily increasing
This year Providence has blessed us with an
enormous crop OF almost every production Of the
farm or plantation, and the foreign demand il
largely increased by the Russian war. Russia is
| our great competitor in supplying Europe with
bread, and she now VIII consume her own pro-
duots. We have now reached the coin basis in the
production Of commodities for the foreign market
OUR EXPECTATION OF HOME FABRICS
Has increased and is increasing, and We are now
competing with Manchester and Birmingham IN
the sale OF products that have made those cities
famous throughout the world
rival in foreign markets the oldest countries Of
We have, during the i've months Of President
i
and OF gold and silver coin and bullion Of 81 S4O
| $50. From the 1st OF May to this time we have
added to coin reserve $40 900 900 by the sale OF
/ bonds without disturbing the money market, and
with gold steadily on the decline. We have re-
duced the public debt since the first OF March the
sum Of e29. Al ,s2A We have conducted the vast
operations Of our leans already referred to, with
| out disturbing the course OF trade or causing q
shipment in gold All the fears expressed go often
| in the papers at these movements have been prov
| en- TO be Rroundless.
We are now within five degrees Of the specie
| standard. We have still seventeen months before
us in which to complete the task The same prog
ress that has been made since the first of March,
continued twelve months longer, will certainly
| bring us to the specie standard. feel confident
| in saying TO you this day that II undisturbed
with without Q change Of the law, every dollar
of United States notes will, before the time ixed
/ for resumption, buy as much as an equal amount
in either gold or silver.
| 4 CONSTRUCTION OF THE RESUMPTION ACT
Has often been pressed upon the Department that
II correct, would make II still more easy to carry
IL into execution 1t is insisted that the Secretary
has the power. in preparing for resumption, to
sell bonds for ooIn, and then to sell the coin for
United States notes. to be boarded In preparation
for resumption. The department has not acted
upon any such construction, but has sold gold only
In the current course OF business for the actual
redemption Of notes supplanted by National tank
notes. II this power is exercised, 1t should only
be IN pursuance OF the plain will OF Congress. and
| In the execution OF so delicate duty, no power
should be used except such as is clearly given.
The act Of April 1876, for the REDEEM ption OF frao
tional currency, provides that silver coin may be
1 L., T-sk. e,ko nONr and