The Lake County star., 1877-11-22

IL cannot he maintained without q
rapid reduction of our effective circu-
lation To one-third or one -foui tn Of the
present volume. He cites the fact that
although we had $285, 600, 900 In coin In
1860, and production Of 500, 900, 900
since, we have now but $3.50, ,O00, 900,
and argues that the necessary demand
abroad for coin from the United States
largely exceeds the production I'm this
country. He says that the premium on
gold Is no criterion whatever Of the
amount Of contraction necessary To
maintain resumption, or OF the cOnse-
quent fall I'm values, and speaks Of the
Resumption act as "thls British bOr-
rOwed scheme for starving the workers
and fattening the drones.u He says
that the Resumption law has already
caused q contraction by cancellation
and boarding, and a consequent aver
age fall Of values, Of full forty per cent.
He declares that we need larger vol
ume of currency than any other great
nation that the effect of the cOntrac-
tion necessarily involved In the execu-
ton Of the Resumption law will be to
double and probably treble or quad
ruple all debts and taxes by shrinking
In that proportion the value of every
thing with which money can be got to
pay them. He insisted that the law
ought not to be, and cannot he, exc
cuted that ifpermittec to stand IL will
bring on q general destruction of busi-
ness, and more dire and widespread
ruin than the great rebellion itself in
ficted. He says: "Let It be forthwith
repealed. Let US withdraw the threat
of contraction and permit our indus
tries to revive and prosper. Let us
devise means to Obring home our foreign
debt; issue legal tenders in place Of
bank notes, and with the new issue
buy up and destroy part Of our bonds |;
open our mints again to the free and
unlimited coinage of the old silver
dollar bring all our money to one par,
making 1t all equal legal tender, ex-
cept where otherwise provided bv con-
tract; and when our paper, silver and
gold dollars are of equal value, we need
not fret about resumption of specie
payments"
Mr.. Ropes says that the real difficult
ty lies not in the resumption of specie
payments, but In the establishment
Of the specie standard. He says that
to assume that a huge pile of gold may
be accumulated In the Treasury up to
January, 1877, and then let loose to be
scrambled for by ali army Of holders
Of bank-nOtes, greenbacks and bank
deposits without danger OF most disas-
trOus consequences Is surely to exhibit
q lamentable ignorance both of the
principles and practice of sound finan-
ces. He argues that the low rate of
| so Il utaxv
that the equilibrium Of specie and pa
per is nearly attained; that gold is
now mere commodity, and that In
this matter we can trust to nothing
but actual experience. In his own
opinion the one essential requisite OF
resumption Is to reduce the volume of
paper currency to a point at which it
will stand on q par with specie, and to
do this In way 80 quiet and gradual
as to produce no distui bance in the ex-
changes and financial transactions of
| the country. This can be done at
once, he says. by authorizing the sale
of four per cent. bonds at par for green
backs. "Nothing but contraction, )"
he argues, twill ever bring us to specie
payments" He advocates q gentle
and quiet contraction, and is opposed
to the policy of boarding gold.
| Secretary Sherman, who had the
papers summarized above submitted
to him, replies to Messrs. Kelly and
Ewing that "the distresses they COM
plain of were the direct, certain and
unavoidable result OF the very policy
of initiation which they favor, and that
1t would be Just as idle now to keep up
this initiation with the hope of prosper
ity as it would be to advise drunkard
to keep on drinking in the hope of re
FORM" He says the plan of resump.
ton is confessedly not q perfect one,
but 1t Is the only one that Congress
would grant, and he repeats, what he
has said elsewhere, that resumption
can be, ought to be, and will be secured
II this law Is not repealed by Congress-
He agrees with some of the suggestions
offered by Mr.. McCilloch and Mr.
Ropes, but says that 10 proposition
has been more frequently urged and
acted upon adversely by Congress
than that of funding, now advocated
by the gentlemen named. The Secre.
tary says that the future of the green.
backs Is a question outside of resump.
tiOn. His own conviction is that un.
der the existing law, after they are
reduced to $500. 600, 900, and have been
redeemed, they may be reissued, and
that the national bank currency
should be used simply to meet the ebt
and flow indispensable to every good
currency. SO the silver question, en-
tirely within the power Of Congress
he thinks, may be made most essen
tial aid to resumption, IL confined
either In the amount or mode of issue
or in its legal tender quality. He says
that If silver alone should be adopted
as the standard, the paper will fall
even below that standard, unless re.
sumption I'm silver Is provided for by
law. He believes that II the friends o.
resumption will only be content with
the plan of resumption that Is now
upon the statute book, securing only
such additional legislation in aid o.
resumption as Congress, In its wisdom
may see proper to grant, there need b,
M faar Of thp roalllt