The daily gazette., 1877-12-26
AMERICAN GOLD AND WHAT
la 1T MUST PAY. r

In the late discussion, in the house Of
Representatives, Of the bill repeating
the specie resumption law, Hon. VIM. ID.
Kelly delivered speech which we wish
the people everywhere might have the
opportunity Of reading. We subjoin a
bnef extract which presents the difficulty
Of resumption under existing circum-
stances in strong light. Those unac-
quainted with the facts may be surprised
ut the mountain of debt piled up againss
us which may at any time send down It's
avalanche for our destruction. There it
grim humor in Judge Kelly's account
Of the Treasury gold, though the judge,
who knows well how to be humorous
aud is always eloquentgives it as sober
fact. Speaking Of the obstacles to re-
SUMPTION he said:
."1he question before the American
people is not between gold and the in
Iconversible paper Of the Government,
tWlHaa by its legal tender character is
money. 1t is paper money and bank
credits, which, IN the absence OF sufi-
cient supply of metallic money with
which to convert them, will continue to
| Do ltECuOCuidblCs L hdNO COufOtbCu COh-
ndsntially with many bankers, and have
not found one of them, when speaking
thus contidentially, who did not admit
that though the Treasury may resume
tspecie payments on the 1st of January,
1879, it cannot maintain them a week.
The inadequate supply of bullion on
(which it may resume will, some OF them
have said, be exhausted on that day by
the holders of certificates of deposit and
banks which will have sent forward
large amounts of notes for redemption
and the gold having thus been transferred
to tho banks and the Treasury having
again suspended, the time will have ar
rived for a renewal of profits on sales o.
gold by those banks that may have hap
fpened to present their demands In time
What the effect of new suspension b.
the Government would be on the pric'
of gold, none can predict as no one i
able to predict the duration of the sus
, pension.
II Upon what demands do we propose Il
resume gold payments Over $3J0,060
600 of greenbacks; over 500 900 900 O
bank notes. l have here ito continue tn,
!, list)Mr. s. Dana Horizons work on Silve
and Gold, in which ! find some thing
from which to dissent and much TO com
mend; but the facts embodied in which
have been most carefully compiled.
lgives on page "A the debt statement fo
Septembe 1876, when the national deb
was 50, ,203 ,902 ,6i6. The nominal amour,
of outstanding State securities is giver
: as about S385,0O0,000, of city securities
$543, 900, 900, of railroad and canal bond
= about So, 100000.
Gentlemen may say "Why tho passing
of this act does not ma ure those obliga
tions?" no, gentleman, IL does not and dc
not pretend TO assume that the conversion
| of all or even of q considerable percentag,
OF them will be sought but when you re
member that all those securities are mar
l ketable in our market, IL natures all o
| them that may be held by foreigners who
, | can send them home, have them sold, anC
drGw Tor the proceeds In gold. 1t puts oul
8 Government in the attitude of holding IT,
4 self up as the reservoir of gold from which
all its creditors and those OF our people
, (and they are be found in every civilized
1 natiOn) may draw for gold when they need
or desire IL. The act does make pay able ir
a gold the deposits in our national, State
8 private and savings banks, which amount
l to thousands of millions. 1t puts upor
l the gold-p paying basis all book-accOunts
: promissory notes, and mortgage and judg
9 ment debts. II piles up such an amount
OF debt as no nation has eyer undertaken
: to pay in money based on single metal
9 And with what do you propose to pay II
a Gold know. What gold have you? Why
i've resolutions ingeniously contrived t(
$ extort information, brought us the fac
r that in July of the long session of the las
a Congress the Treasury had of real gold a
Its absolute dlsposa. S13 900 900; for in n
= amount of gold named by the Treasury IL
! monthly debt statements we have bond
: retired, but which have not been Cancelled
, we have coupons paid but which have no
gone into account of coupons. The majo
5 part of the gold reported as In the Treasur,
: Is paper gold, against which parties hav
1 claims, or paper which The Governmen
q has paid and not yet found time to carry