Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1877-08-31


Excluding the first term and line, which
do not come under the Resumption act,
it appears that since that act was passed
$2S, ,632, ,225 notes have been issued, and
$65, ,256, 1897 retired, making net dc
crease of 36,624, ,612. The act touches
the circulation in only two provisions it
makes the formation of new banks and
the issue of new currency absolutely free,
and retires for each 800 of the latter
$50 of legal tenders. Hence it ought to
be clear even to the Cincinnati Green
hacker that this is a measure of eXpan.
sion to the extent of 500; it is putting
out 100 with one hand and taking in 80
with the other, precisely as if the Treas
ury had been directed to pay out dollar
whenever it received eighty cents. I'm
der the Resumption act, $2S, ,632, ,225 of
notes have gone out, and $22, ,905, $50 of
legal tenders have been retired; under the
operation of the act, therefore, there has
been a clear net expansion of So, ,726, ,445
in the currency, being 20 per cent. of the
total emissions. But the fact is that
there has been a currency decline of
$57, ,563, 1874 since June 20, 1874, and
$50, $50, ,392 since Jan. IA, 1875. This is
accounted for by the independent process
of bank-note retirements, for if the $5,.
726, ,445 expansion since Jan. IA, 1875,
and under the act of that date is deducted
from the $65, 5,256,8 1897 retired since then,
we have $50, $50, 1892, which is the actual
net contraction since the Resumption
act. But this bank-note retirement has
taken place, not under the Resumption
act, but under the prior act of June 20,
1874. The inflationists have therefore
been denouncing the wrong act
Why the banks have retired their notes
is plain. There has been no demand for
them, and there has been a war-tax on
them; some banks have failed, some
have withdrawn their circulation, and
others, tired of heavy taxation, have
withdrawn from the national system.
The act of 1874 is permissive. not COM
pulsory; with the choice given them to
issue or withdraw without limit, they
have done the latter. But the imitation
ist shrieks necessarily that the with
drawal has caused the dullness of busi-
ness and the lack of demand for money.
Initiation logic thus makes cause follow
effect, and the cart propel the horse.
The int1ationist talks of the paralyzing
effect produced by the dread of 1879, but
the facts are that not much belief has
been felt in the substantially of the Re-
sumption act, at least, until this year;
that Mr.. Sherman is the first Secretary
who has shown much disposition to en-
force it; and that during the five months
of his term, while the act and prepara.
tions for enforcing it have been most
prominently before the public mind, the
rate of contraction has somewhat de.
clined. The causes of the continued de-
preston which produces the withdrawal
of currency that is not in demand are an
other matter One of the chief of them
is the uncertainty which the infiationist
has succeeded in keeping up for the past
four years, and which deters timid capi-
tai from venturing out of its hiding
places to once more give employment to
industry. The more the infiationist
shrieks, and rants, and talks, and acts
Communism, the more will capital stay
back and contraction go on.-N T.
Times.