The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-11-12
THE RESUMPTION ACT.
VIEWS OF Mr. sHUcKERs-rHE IMpossIpILrrY
OF RESTORING The SPECIE STANDARD ON

VIEWS OF Mn. sHUcKERs-THE IMPossIBILITY
OF RESTORING The SPECIE STANDARD ON
JANUARY l, 1879.
To THE EDITOR OF THE HERALD
In his speech made at Mansfield on the 18th Of Au.
gust last Mr.. John Sherman said that unless pro-
vented by tho repeal OF tho Resumption act no Ger
tanly could and would the specie standard by
the LIST of January. 1879 or tho vast magnitude OF
tho work OF restoration; Of tho immense and abso-
lutely nsuperabc difficulties In the way OF accom-
plishment In SO short time and probably at
any timc; OF the principles involved in tho work. Mr.
John Sherman apparently has but small conceptions
Undoubtedly ho vas true prophet IN 1859, but tho
experience OF 1879 will show that his gifts have do
parted that IN forccasting evonts happen only
! fourteen months hence no darkens counsel without
| knowledge.
lis said that all tho roads in tho world lead to Rome
thcre is but road however that leads resump-
! ton OF specie payments Suspension took place in
1861 because there excess OF paper notes tho
both Of banks and government, and thcrc can
| DO no resumption till that excess be removed
III VIC ascertain tho OF tho existing excess We
may form some pretty accurate judgment MS to tho
probabilities OF Nr. John Sherman cfTccting the stu
pendous operation hc SO fippantly announces as
within his power.
No ono acquainted with economic science will doubt
for n moment tho correctness Of this fundamcnta al
proposition-that SO long as tho paper which
form the active money Of the country excess no
safe pton Is possible II Is not worth while az
this particular moment discuss the special methods
Mir. Joun Sherman proposes to adopt Tho bottom
question is not particular method, but tho practl.
cability OF any method.
Let me cali your attention to tho fact that COM
mcrcial nation in tho world has yet been able
support convertible paper circulation Of 5000
Tho active paper OF Great Britain do not exceed
at this time $780, 600 900; those OF tho German En-
MIRO are less than $780, o00, 600 in amount Tho
largest convertible circulation ever supported by tho
Bank OF Franco $3.50 100000, just prior to the
breaking out OF tho late with Germany and
excessive that suspension took place within fortnight
after the beginning oil hostiiitcs, and tho largest
nominaly convertible circulation ever anoat in tho
the memorable explosion OF that ycar-and that II
excessive the fact OF the explosion and tho severity
OF II aoundaniy proved. These examples arc pregnant
with instruction. They seem conclusive that wo can
not sustain in America really convertible clrcula-
tion exceeding the outer limit, $3.50, 600 000 Tor
" France, with 400, 900 or ST. Go0 zoo, 900 OF
gold and SILVER among her people and IN the vaults OF
her national bank; II England, with $700,0 1000 or
$500, 900 900 within her borders; " Germany, with
like amount at the command OF her banks and
people, II neither OF these great and opulcnt empires
support convertible circulation amounting
10 or exceeding $500, 600 600. what shall be said
OF rho power OF these United States to support
$3.50 000 tho constant and necessary tendency Of
who's, gold and SILVER IL TO take To themselves wings
ana fly away Gao We do IN America what long cxpor
cncc proves TO be impossible 10 France Germany and
England3 Assurcdly not. The laws that govern tho