The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1877-07-12
Resumption.



Is the resumption act capable of exeou-
tion2 is q question again being forced into
discussion. At meeting of the Cincinnati
Merchants exchange last week 10 debate
the Subject Of restoring the silver dollar
to the coinage, Mr.. Richard Smith asserted
that resumption under the act is i'm
practicable, and quoted ex-Secretary
Bristow to fortify the assertion. Il had a
compensation few days ago with the ex
secretary Of the treasury, Mr.. Bristow,
said he, and he informed me that when
the bill provided for resumption of specie
payments on the LIST Of January, 1879, was
introduced, he pronounced it impracticable,
and he says it is impracticable now" The
reasons for the alleged impracticability
are that the greenbacks 1880, ,000)
and the national bank notes $500, 000, 000)
make an aggregate of 100000 paper
money that will have to be redeemed in
coin on and after January /, 1879; that
there is at present only about 500, 100000
coin in the treasury to redeem this volume
Of paper money with, and not likely to be
much more. when resumption day arrives;
that it is absurd to suppose one dollar in
coin can redeem six dollars in paper, and
that the only way resumption can be made
practicable is TO contract the currency,
and this the law does not authorize, and
the country would not listen to.
There are some points in the working OF
the resumption act about which good
authorities cannot agree. Secretary Nor
rill regarded it as practicable, and Secre-
tary Sherman takes the same view, while
others regard it as an attempt to do a
certain thing without the means Of doing
it. The chief undetermined point is the
effect Of resumption on greenbacks. Will
1t bring them up to par, and thus prevent
them from being presented for redemption,
or will they continue to be slightly below
par, and therefore be constantly presented
for redemption? The latter is the more
probable, as all signs indicate that there is
more money in the country than business
requires. If on and after the day of re-
sumption greeDbacks should lack one
quarter of cent of being equal to coin,
they would be poured 10 for redemption
till MIR. Sherman's good hoard was exhausted
and then he would have to stop, and re-
sumption would end in miserable failure.
1t is true, the secretary is authorized to
sell bonds for gold till he shall have secured
all he wants-$600, 000. 900, if it is neces-
sary; but it is easier to authorize this
hAeh w w IL II huC oCSI6LdIy WcI6 u
attempt to buy six hundred millions OF
even three hundred millions gold, the
European markets would resist the drain
and give him much trouble. The bill is
capable Of being amended so as to facilitate
its execution; but it is not probable that
Congress can agree in amending it. The
only method of facilitating resumption
under it is to authorize the secretary &c
buy Greeubacks with bonds and retire
them. But this would be contraction
and contraction is something the people
will not lear to; they want resumption
effected without reduction of the volume
of money in circulation by single dollar
This is difficult; indeed it is believed tC
be impossible; and hence, as the day fol-
resumption draws nigh, the serious obsta
cles in the way of il are recognized.