The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1877-12-13
REPEAL of THE RESUMPTION
ACE.

1877. On the Hill CK. Il. No. sos to
Repeal the Third Section Of the Act
Entitled IAN Act for the Resump.
zion Of specie Payments.
Mr.. HASKELL. ! shall vote for the
reveal of the third section of the resump-
ton act, not because | am opposed to bring
ing the legal-tender note TO par with coin,
nor because l am careless Of the honor OF
the Government or " Hing TO lower its
credit, but because ! conceive that there
is a shorter, better, safer road 10 the same
goal, and because believe that the method
Of resumption proposed by this act is work.
ing great harm, bringing no certain benefits
to balance the account, and in fact is in its
self an obstacle TO resumption. Ii ought TO
be repealed because it is a piece of legisla-
ton so imperfectly constructed that its
working effects are not what they were ex-
pected to be or what they were intended
to be by their original supporters. 1t was
put forward at a time when loud demands
were being made for moe currency.
Whether more currency was or was not
needed at that time need not be debated
here. 1t is at least safe to say that there
was an almost universal protest against
further contraction at that time, and this
draught of the resumption act was intro
duced as a compromise measure by which
the ultra-resumptionists on the one hand,
and the anti-contractioni Is on the other
were to be mutually satisfied.
Instead Of 20 per cent. expansion, as
was fondly hoped for, it has worked a vicious
contraction. We have sixty millions less
of currency in circulation to-day than there
was two and half years ago, counting ma
tional bank-notes and legal-tenders. Dur
ing the five years Immediately preceding
the resuption by the Bank Of England in
1921, the contraction amounted to one hun
dred and two millions. 1t very nearly ruined
English industries, and yet we, in two and a
half years, have accomplished an equal con-
traction, and that too through the operation
Of law that was intended TO relieve our in,
dustries by slight increase of currency.
The resumption act ought to be adjudge''
void from ambiguity of terms. 1t provides
for certain reduction of the lcgal-tendei
notes to $500 100000, and for the possible
reduction by redemption in coin and can
collation. to an indefinite extent. l an
aware that it has been urged that the Sec
rotary of the Treasury is pledged to no fur
ther reduction than to the three hundred
million limit, but l am also aware that II
the record OF the debate upon the passage o
the bill as read the other day by my col
league Mr.. PHILLIPsl Mr.. Sherman freely
stated that the act itself did not decide thu
question. Are we then to sit idly by, sui
fering all the ills of forced contraction
resulting in stagnant industries and univer
sal Distress under the ors.ration of A law u
uncertain In Its terms that definition o.
Its meaning must be left to the absolutlsn
OF one man, the Secretary OF the Treasury
God forbid?
l am satisfied that II any other imPor
tant law than this resumption act was fount
be as uncertain and indefinite in its provis
ions 1t would be snatched from the statute
book within the hour.
But hold say that the friends oil the ACT
We are satisned that additional Legislation
is needed, and then all these defects can b
remedied. II has been the delusive cry 10
two years The friends OF the act were Ii
the majority last Congress Was there on
OF them to put forth hls finger to perfect II
Not one 1t never Will be perfected saw
by repeal OF the obnoxious third section, o
that part OF 1t under consideration.
These provisions ought to be repealed, ii
that they provide for reduction OF tn
volume OF United States notes. Not an ad
ditional dollrr OF these notes should be re
tired by an arbitrary enactment OF law lik
this. Only one argument has been use'
for their retirement, and that was that tn
outstanding notice might be forced to pal
Harsh and necessary legislation Max
| them full legal-tender, receivable for i'm
port dues, and yOu will have increased thei
value largely, more than by the retiring O
one-hal OF them from circulrtion.
| shall vote for the repeal of this portion
OF the act, for do not believe in the wis
dom OF an arbitrary coin-exchangeability @
these notes. This provision OF the act
the clearest feature in it. l doubt the wis
dom OF the provision, because 1t isnot need
ed to maintain the paper at par wit
coin, and the Government should never
PaIi s p .h t "a,,"s o"c
| Ieacheu .esunlPtio through immense sacrl
| fees on the part of the people, ii is left Ii
able tn another susrensiop Inv rups mad
upon Its COIN reserves precifely as runs ar
| made upon the banks TO-DAY, with the Onl
| safeou,rd loft 70 ber ,b,t IL ;m;t,,;n, ~
example of the bank oil France by takin
|
| from the cnanheis Oh trade immense sum
i OF coin and hcrding them in the Treaslr
against these contingencies. And rich
here comes the pertinent oueries vber
will all this gold come from and how can
be procured !? leave the answer TO som
one wiser than l. / riU max. this propos
tion instead: That speeis cannot be k.ps in CT,
culotion IN a country in competition WITH a DAD,
m0.ey ukirk IL jumedinfeLy eon,syfible iufo co;,
IJII IN :.