The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1877-09-18
Specie Payments Without Contraction,
or RuinP


its issue of Wednesday, September IL,
contains an interesting article by its editor,
Mr.. G. Winter, under the above caption,
of which we give the following translation:
''The present low rate of the gold
premium Q033 to 1887 is more to be
ascribed to our favorable balance OF trade
than to the financial operations of Secre-
tary Sherman. The difference between
the value of greenbacks and that OF gold
is at present so small that with contln-
uance OF those favorable circumstances the
accumulation of gold reserve fund by the
sale of god-bonds is very much facilitated.
What is Objectionable In the resump0on'
act is its feature providing for contraction
of green-backs to 800 millions. 1t is this
provision which does incalculable injury to
the business Of the country, because, on
account of it, capital shrinks from engaging
in new business ventures. For capitalists
hoard their money until it becomes scarce
and as it must become still scarcer under
the resumption-act as it is, the capitalists
hold back and rather leave their surplus IN
bank instead of putting it to use. The
general distrust created by the contraction
of greenbacks causes prices to be forced
down. That agricultural products have
made an exemption from this rule is only
to be ascribed to the European war which
has increased the demand for them.
Without it and their consequent higher
prices the country to-day would already
been half ruined by the contraction OF
greenbacks as provided by the resumption
act. We too are against an irredeemable
currency, but we are for its redemption
| 10lth0ut unnecessary sacrifice. The Democ-
racy of Ohio and Iowa and the green
| back men however go too far IN demand
ing the repeal of the resumption act. All
that is needed is that congress amend the
law by repeating its contraction features
and by facilitating the accumulation OF a
redemption fund for redeemiug the green
backs by enacting that greenbacks may be
redeemed at the treasury in sums at OF
below SIS, 10 silver or god coin. at the
option of the treasury, in larger amounts
however, in gold only. The goldreserve.
fund might also be correspondingly in
creased By an additional issue and sale Of
gold bonds.
The reconciliation of the silver dollar
''of our forefathers" in this way could bt
carried out combined with the resumption
OF specie payments.
What Is absolutely Objectionable in the
republican platforms is that they indors;
the resumption act Internationally as it is
with all its faults and with its unreasona
BILE hard aud unnecessary contraction
features. 1t is no wonder to US tina
organs of the money powers thi
side and the other side of the ocean-w
only cite here the Illinois Stats
Zeitung," the "Westlicbe Post land it
little imbecile but corrupt follower TIL
Davenport "DenaOkrdt' are praising tina
act to the very skies. What makes u
wonder, is only that there are people gull
bic enough to support such papers working
against their interests and to admire a
great financial wisdom their hnancia
opinions, dictated from Europe, by whicl
the country is going to the dogs. III
farmer who to-day receives for his produc
twenty-five per cent. less than he woul'
get without that contraction OF greenbacks
the workingmen who can find no work be
cause contraction lanes industry; tn
merchant who to-day finds that the good
he bought at New York yesterday hav
fallen in price ten per cent, whose hes
customers keep their money in their pocket
form fear of hard times" all OF then
have to suffer FROM that most absurd OF
laws-the contraction act. Don't let u
: hear the objection that national banks hav
J diminished their circulation and that thl
showed an abundance OF circuiaGn
a medium.
All that is proved by it i,
that the general distrust caused by ia
9 contraction OF greeubacks has at preseu
!, artjfcially diminished the demand 70
money generally because everybody re
duces his business as h.ucn as possible.
: La short, the country to day as place
! at the mercy of Shermau's contraction
5 policy, is iu the condition of the dog who's
, owner iE order to trim the dog IS ears
every day cut off very little piece only
in order not to pain the poor animal to
= much. Away, then, with that policy, bC
f at the same time no step backward froI
i resumption.
No initiation, no greenback "swindle,
but at the same time no contraction
X greenbacks, no repeal but amending tn
E resumption act ia the above mentione
way. This is the financial policy congress
has to adopt.
But will it do its duty amidst the hui
bub of financial plans? Or will the corruI
It money powers of Frankfort, London an
) New York bankers and of their corruI
r newspapers rule it still further to the rui
of the people2 Then the capitalists vi
9 have TO suffer the consequences!