The Ottawa free trader., 1877-09-08

llOnlstS, NctOcC.
The resumption law was passed with the
general belief that it would result in an m
crease of the paper currency But how has 1t
operated so far: 1t has already caused al ac-
tual and
PERMANENT CONTRACTION,
as follows;
:, By destruction Of -:eenback, Jan.
II, 1875, to Aug. !, .s@!7i J, -!
,. BY cancellation Of bank notes Jan. .,,...,,
II, 1873 to Aug. !, 1871 ............. jG,G!''O!!
3. Greenbacks surrendered 10 redeem
and cancel bank notes, no. yet actU- ,-,,,.
ally cancelled. ACKNOWLEDGEMENTS. If'f'''o-o
Total ACKNOWLEDGEMENTS. ~
These figures are those of Mr. Shermans
Mansfield speech, except the last item, which
he omits, doubtless, because the cancellation is
not vet actually accomplished. To this may
be added S57, 10000 held rs private deposits,
almost all Of which will probably be kept
boarded in the Treasury awaiting payment
and cancellation. Thus we have an etfectual
contraction, as shown by the books OF the rea-
sury, of S13l ,030, $50. This is exclusive OF any
part OF the fortytour millions of coin and cur
rency," which Mr. Sherman intimates he has
accumulated in execution Of the resumption
law. he does not tell what part of 1t is legal
tenders, nor explain by what authority OF law
Al 80 .h;s isrdln pai ,n,,, ,be 6pe hundred mil
- - .,;o, 40 aet;,,otnd h,- Tho Cincnnati
rl,-@,.o ,n hn oIseu%crp hoordcd-hoarded sole.
Iv hocouse msiness is pgralyZed. credit stopped
and onternrisc become ucrnicious under the
occnmuIatioc disasters threatened or accom-.
nIiehnd hv forced contraction-and we have,
20 the work of the first nineteen months Of
nrenaration for resumption. an actual destruc.
ton of one.tenth Of our currency, and with
drawal from business OF nearly one-third Of it.
II these things be done in the green tree,
what will be done in the dry An equal de
s;ruction and boarding will give us by resump-
ton day an actual destruction of Il fifth of our
currency, and leave in actual circulation but a
little over one-third Of the currency we had
atioat when the contraction screw was put in
operation
The power Of q nation to maintain paper
currency sufficient for It's business and re-
deemable in coin is necessarily dependent on
two conditions;
|. The amount of coin in the country. ms
must be greatly larger than the amount OF pa
per currency, because the statistics Of the chlei
nations show that but a small proportion OF
the coin in a countrv-less than oneiourth-
can ne controlled hv the banks or the govern
ment as T. redemption fund Thus Great Brit
ain with seven hundred millions of dollars in
the country can only maintain a redeemable
hank cirrnla.iop ofa6out two hundred and fifty
-, ;Ii;ons. ond France with twelve hundred
rniii;ons of dollars in coin according to Victor
pnnno,, in the Rerve des Deur Noades) has not
yct ielt ao thourb if has been for wears
u. ,p;,h p%nIJ And fellow citizens nearly
a. p%; ,a,, InI,,, rcrollect what sort of 10
~ ~ on i,D WHY 10y $50 ,,n ,nr with two
I' i". 'f nsnrr and
i.,nI.icu nJ wa om5NSy ,,,;,,irns of coin
W. H'ili''ieu aA" e,snS nv n,,,Ia LoiI
"a ui9 oo.'ntis ,n, @ r,,nr a;,,ht,, tbroo nil
~ ~ lcuccnl uiel p'i,.s'' o LILY haIi. n,,,
nous u spe.io' Iii, Ill o,.ad ''''' "''!
wien IL "as SeN,i",!y "an'o"' e.,..,
= me oticr cohultioh 70 succcssiul ,,' lesulIp
u9h Is 'he power 70 Keep Coii III l'to uoIn.i
All comiieIclai hI'lonS @ Mliol oM' 'eiy ,"i ~
y "oEo"o Always ha'e suspenueu "iu ol ,nu
lcesslty must suspeno specie PaSii,c pe."u.o
they can leItIh tlc 'oin ncIueT ~, S,n,a
tlon OF paper money No", hio ui'o. go
owes ana eNpehGS aoloau n'e siies a. IAN, INV, -. =.
aS any other nation on eal'n, anu are icuS, W VI
"Il "?Ie W ni"iitaIn s'eoio pa. Ni.n.o, W "a ~
our INDUSTRIES shalI nav "ccn permitted e W
ItSiNc any piTspe., mlien oui siea. ionI,s,
uep' sllall nav pcell i'iauc lioiilc uJo'' Miei
oGi oMii 'Iesrla ~; p,i omii
VIII ilo' n"PP'h VI, 'it' ~ uo"ioi S'%Sp -
iooseu liIih M uc ,no o"I y, 'r ,op, ~ .',o
sogS VI ,'le Hon |'.r ,;n a' ro
anu ho ool, anu uiie ''iiG ilo, ,i' ,,,' du
sIip';Hn W. i;n,r oenoi'' P'9''''' "'''''''
"iIelh'iiS uls"S'''
,,,,,, ,..,,,,,
MI oilcl man saSS i"t ,I,o.n ~ alU.
ere p"yliicIV - siiPiy u". r''' 'tTn'y II; y "us'
~ " pe iiaue equ"i ~ I'm Ill.,, -, p"I., :,
lllrou9nou.' - 1.u'ucu "'.o' ~ NM ~
appear tlaI Ile oliy ellcot VI 'iio ie'unlP.io .n
IA" - u ,i."h: P"'ol ,u". ~ tTi' m "'i' ,a.
tlle equSlHa'i1n oiI oG .''aii,cu ~ Nv o'e
way Now ! asserV llal icsu'lPtlon u. ~ nov Nv
necessary 10 opIdih qu"liHa'ion' anu 'lial tiie
resumption law is hG;, cctt.iily ;ne ,aSe , on
lllG ,elueey ~ li'rt nee t' ,Sca Sc
golu mas s.eaulIy iailcm rIoni iooo " @ ioo'
II ranged rom 10 !" .. i,el cei., premium
from l9'o 10 'lit ua,e vi tile,iesuilili Jaw /;
IL rahSeu rom 10 % cI cent premium am,
since tlc passage OI lIaS law, IL mas IdI9c'i