Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1877-02-09
Financial.


lsge readers and listeners. Predic-
tions have not been spare or sparse,
and prophets and prophecy met us
at nearly every turn. What a pity
that so much wisdom has been, by
the logic of events, left to waste Its
sweetness upon tie desert air. Fl
nance has risen to the dignity of as
serting its own independence, and
though blind as bat, has shown, as
is generally the case, wonderful sa-
gacity in interpreting the signs of
the-times and instinctively following
the laws of trade. Almost every day
shows the decline in gold and rap
Id approximation in values between
paper and the precious metals. This
is due to few plain reasons, that
almost any common reader and COM
mon intelligence may appreciate. In
obedience to the balance of trade
abroad, the current of gold is set
ting towards this country, and the
supply is considerably increased, and
the opinion is INDUCED, with some
degree of confidence, that this state
of things is likely to be continued.
The reasoning upon which this con-
elusion is founded, is that we have
got into a wholesome relation with
other countries, and the stringency
OF the times, and the necessity for
economy are the cause of it. I'M
portations have fallen off, and while
gold is flowing in upon us, the de-
mand for its use in the payment of
customs has fallen off in the same
ratio. 1t is, therefore, becoming
plenty and proportiOnateIy cheap.
The natural consequence is its assim-
ilation to greenbacks in value. At
the same time the product of the
precious metals in the country is in
creasing and adding to the stock on
hand. Here, then, is a state of things
that suggests the practicability of
resumption at pleasure. This, too, in
the face of all the erudite conclu-
sions that have been obtruded upon
the country-that resumption was
impracticable, and if persisted in as
encouraged by enactment, would in
volve the country in financial dis
tress and ruin Such are the favor
ing circumstances for resumption,
that the President has sent a mes
sage to Congress, intimating that
though it may not be desirable to
anticipate the date for resumption
in the act, it will be most desirable
and beneficial to the national inter-
ests of the country that the day
should be fastened, when gold and
paper should have an equal value,
and that when that time shall have
arrived, it may be considered advis-
able to authorize and direct a return
to specie payments without waiting
for the date fixed in the act. While
this is the position of the message,
it is asserted that the President has
expressed, privately, the opinion that
the time has already come when re-
sumption may be entered upon with
safety. Other features of the mes
sage, and its suggestions and recon-
mendations, are put in the following
abstract form by our contemporary
the Cleveland Herald:
The Resumption act provided for
the accumulation of gold by the sale
of four-and-a-half per cent. bonds,
the proceeds to be devoted to the
work of redeeming the outstanding
legal tenders. All that is now need
ed, in the opinion of the President,
is to reduce the amount of outstand-
ing legal tenders so that the gold
obtained by the sale of the bonds in
Europe and by accumulation in 9th
er ways will be sufficient for the
purpose desired. To do this he re-
commends the amendment of the re-
act so as to authorize the
issue of bonds, to an extent not ex-
ceeding one hundred and fifty mil
lions, bearing interest at four per
cent, and running forty years, the
sole use of which shall be their ex-
change for legal tenders in sums of
fifty dollars or multi pies of that sum.
The supposition is that the holders
of legal tenders now lying idle for
the want of profitable investment
will exchange them for the four per
cent. bonds, and thus the volume of
the currency will be reduced to the
actual wants of trade. To encour-
age the retention of the bonds in
this country they can be made avail
able for deposit in the United States
Treasury by national banks as the
basis of issue for banking purposes.
In this way the volume of note cir
culatiOn could always be kept equal
to the wants of trade. The message
also makes suggestions in regard to
provision by national banks of means
for redemption of their notes on de-
mand, and recommends the repeal of
that feature of the law relating to
the issue of subsidiary silver coin
and fractional currency which re-
stricts the issue to a definite sum.
People who wonder why the Dem
ocrats did not like Gen. Garfeld's
going on the electoral commission
may get some clew to it from this
opening paragraph of his speech:
"We have been told to-day in this
Chamber that there is danger of civ
il war if the bill does not pass. I
was amazed at the folly which could