, 1877-08-07
ALL PAPER CURRENCY DISAPPEARS WIfn
s- RESUMPTION.


mence Jan. /, 1871. We havo endcavoretl to
secure their attention to one or two points,
and obtain litt1c light thereon from ts,om,
hut without nvail. Their very light has boon
darkness, and what, then, must their darkness
be?
THE Tn1DuNZ las Unlisted TINT resumption
under tho existing law means contraction OF
tho paper c'rrcncy.-in fact, complete
sweeping Of 1t nwnY. In recent article VIC
held this language: "Under that net the
grcenbncks will be retired, md very rapidly
too. The banks will not whit until COM
relled to buy gold to redeem their notes, but
will begin to withdraw them long before
Jan. /, 1870; long before that date the
(bank) paper circulation will be retired; all
debts will ho payable in gold after Jan. |,
1879, and the gold will command large pre-
n,ium In other descriptions Of property, mud
debts will bs heavier mud harder to par"
The Now York Daily Duilettn, the leading
financial pnper Of New York, feeling 1t could
no longer afford to ignore those assertions,
essays 10 answer them. Hero is what 1t says
in reply:
Won't TnE Tntnt'NE calmly ask itself whether Il
has not Leen 1aboring under bad attack OF night
marc! After reasonable reflection 1t must rcmem-
her that while the 11esumpslon act auth0rixes tho
''relcmptlon " Of United Statcs notes on md after
JAM ]. 1870. It dacs mol provide for thttr cancel
latt0n. hat contempt fss The r<ssat 9} The nofts In
tho ramc ecnsc A. bank again crcuFatcs It's notes
after they have been redeemed. TIE TRIBUNE
m!sreprcscnts tho Resumption 4 ct. apparently for
the purpoto Of prrjud!cIny II in the crcs Of tho
.k.Ak
to be redeemed will so out hgain In tho cotfse Of
ordinary payments and In cxchsnge fot CUM which
the ubc will desire to get rid Of In order 10 hare
tho more convenient md cqualty valuable paper
currency. Nc shall therefore have exactly
the Fan1c volume Of currency under re-.
sumption a. wa hare now; but ~ lts
value wilt be appreciated SOC per cent
through being brought 10 par, 1t will possess
largef purchasing power; which will be equivalent
10 an !ncrcate in It's volume By soe forty mllEons
Of do,aTt-juat tho surt Of thing. va apprchend,
tnat TnE Tg1nrSE wants to remedy tho dcplusab'e
cunltsbn Of real estate. Therc will be about tho
sanu kind aud the sAH1e amount of legal currency
available for the banks for the redemption OF lhetr
circulation ~ tlGse Ii at present. vlx.. S0O, uO0
600 t0 33uO. 100. 600 Of legal.tendcrs IN Frgnlar
circulation, and the banks will bc moro obligated
10 redeem In gold than In those notes. What,
then. can Tue Tnthrsk mean when 1t Fays, .sthe
gold 10 redeem their notes. will Withdraw thris
tlAnkl currency" anti "1ong before Jan. !, 1X7D,
tbs papcr currency wilt be withdrawn from ctrcu.
latIon"! Wo venture to af,lrn, that TMk TnInrxx
does not know of onu bank In tbs country that has
ever contemplated withdrawing lts currency fEum
any such 6etlonal motive.
Bud, dogmaic assertion Is not proof. The
Dullftin haa no authority for It's assertion
that tho Resumption act contemp1ates tho
veissue Of the greeubacks in tho salno sense
rs bank again circulates its notes after thay
hnvc been redeemed" nor do tue DuNe-
Tins EASTERN contemporaries affirm any such
construction Of the law, nor do they belieye
1t would b. practicable to reissue md redeem
In gold over and over again a. bank would
its notch.
When the Resumption bill was on its
passage in the senate, Senator Scaunz put
tho question directly to Scnasor JoIA snkR-
MAN, who reported tho bill, whether It was
intended Or understood that the notes were
to bo rcissued, but ho could extract no an
swsr to the inquiry, although he pressed
SHERMAN hard. No other member cf tho
Finance Committee nor auy senator annwsr-
ell 1t. AL replies wero evasive md equiyo-
cal they ,A1l lodged the question. Senator
to bo reisHusd,-for what they vera
to bs paid out II the intention
was to reissue them. The regular in.
come Of tho Government from taxes, ho
pointed out. betrayed all Of its expenditures,
including Interest on the dsbt anil something
for tho kinking-fund honca the redeemed
greenbacka could not DO reiss,lcd In liauida.
tlon Of tho running expenses Of tho Govern
mont. No Senator t4rcw any light on the
affirmative Of the question. Gu what au-
thority, thcu, does the New York Hult<sia 50
iauntily assert that the greenbaeks. when re-
doencd In gold, are to be paid out again aud
re-rsdeenc1 in gold ~ often AZ they are again
presented? Tho Resumption act Of Jan.
II. 1875, among others, contains Ibis pro-
vision
On and sfter the LIT day Of 'Jauuasy. 1870, thu
Secretary 0f Thu Treasury shall rtdsta IN coin tho
United Stalea lcsal.tendcr nates then outstanding
on thcis presentation for redemption ut the onicc
OF lho Assistant Treasurer Of the Eulte staic., in
tho City Of New York, IL sums OF not less than SO
There IL nothing said hero nor iu any 9TH
er part Of the oct permitting or requiring The
REISSUE OF tho lsgal-te,ltlors utter they have
been once redeemed In coin. It is apparent
thatthe Nuiifsin IL trying to deceive tho pub
liz, crit hasepoken without due reflection, anl
has mol appreciated The consequences OF rs-
sumption under the act. 1Ylen it saya th..t
gresnbacks cau be reissued in tia sams way
that hank reissues its notes, It IL cleas that
1t Ia ignorant of the difference hotwaen n