The daily gazette., 1878-10-17


could not help going by and winning.
ms heat as was the last two were also
fearfully jockeyed. Lou. b., was to win
the race, but when near the wire she
would always break.
The following were the horses that start
ed. -
A. R; Ladd, Philadelphia, b.
m. Lou b. 1O12o
H: psrr, Phila., b. g. Billy. 302i /
w. Weeks, Philadelphia, blk,
m. Maggie w. go 3dr
Time, 302, 2.52, 2.3O, $50, 2.54.
From the N. Y. Herald.
Resumption Day-And Then i?
1. In March, 1869, Congress adopted
the Pubic Credit Act" the last clause
of which is in these Words" And the
United States also solemnly pledges its
faith to make provision at the earliest
practical moment for ths redemption of
the United States notes in coin."
IL. In January 1875, Congressfulflled
TINS solemn pledge" by snacting that
on and after the 1st of January, 1879, the
Secretary of the Treasury shall redeem in
coin United States legal tender notes
then outstanding" and to enable him to
do this IL deliberately gave him authori-
W not only to use any surplus revenues,
put ITO issue, sell and dispose of at not
less than par in coin either of the descrip-
tons OF bonds of the United States" pre-
vlously authorized by law for other pur-
poses, being either FIVE, four and half
or four per cents, ito the extent neces-
sary to carry this act into full effect.
III. AT the last session Congress au-
thorized the coinage of silver dollars at
the rate of not less than two nor more
than four millions per month, and made
then full legal tender; and it also for
forbade the cancellation or retirement of
United States notes, and ordered that
they "be reissned, paid out again and
kept In circulation"
~. When, under the law, the Trea-
sury begins to redeem the legal tender
notes there will be in circulation three
hundred and fOrty-six millions Of them,
and the Treasury Will contain somewhere
about one hundred and eighty millions
of coin, of which one hundred and sixty
millions, In round figures will ba in gold
and the remainder in silver.
V. There will be at the same period
about three hundred and twenty millions
of national bank notes in circulation
redeemable at the pleasure of tho holders
in "lawful money" which will mean
after the LIST of January next either gold,
silver or greenbacks.
vi. On and after the 1st of January
United Stats notes will, we suppose, be
received for customs duties, because if
they were refused the bolders would only
be put to the trouble of getting them ex-
changed for coin at the Sub-TIeasury,
which would be useless clrcumlocution,
VII. The Silver act authorizes the
issue of certificates by the Treasury
against silver dollars in sums of ten dol
lars and upward. Whenever the silver
dollar becomes troublesome, therefore,
1t will doubtless go back into the Trea-
| sury, ,and the certificates will pass current
as an additional kind oflegal tender paper
| money until the Silver act is modified or
| repaired.
VIII. There is no limit of law to the
, amount of national bank currency which
may be issued.
These are the circumstances under
which the Treasury will begin to ere
deem" United States notes which must
be- presented at the Sub-Treasury in this
city in sums of fifty dollars or more
Fears are sometimes expressed that the
effort at resumption must break down,
and that the attempt will throw our fin
ances into disorder. We remark in the
first place, that the law gives tho Secre-
tary unlimited power to procure coin by
the sale of bonds 30 long as he can sell
five per cents at par for gold he can get
gold for redemption of the greenbacks.-
But it is Objected that as he is required
to reissue the notes he "redeemb," and,
as when they are reissued he maybe again
required to give coin tor them, this pro-
cess of''redemption," so called is endless.
The law certainly directs that the ere
deemed" notes shall be reissued but SO
long as the revenues balance the ex-
ha haa aIl
thority to give away the notes he will
with the best intentions find 1t impossible
to get them out.
The national banks now redeem in
greenbacks. They ought to know that
the burden of resumption must in the
end fall upon them; but so far they do
not appear to have adopted any fixed
policy. 1t is not probable that green
backs will be presented for redemption
while foreign exchanges are in our favor,
by private holders, but the banks will be
compelled to put themselves on coin
basis, and their readiest way to- do this
will be by collecting greenbadks, and
with them drawing gold out ofthe Treas
ury. They now hold between twenty
five and thirty millions of gold Of their
own and have probably seventy millions
of greenbacks under the law besides
The holders of national bank notes, being
absolutely secured under any circum-
stances, will not be likely to trouble the
banks for coin; there can be no panic of
bill holders, such as the country was La
BILE to under the old banking systems, be-
cause if National bank fails the Treas
ury redeems its notes in tull. But now
that it is seen that resumption is fixed
fact all prudent national banks must rs
rapidly as possible,put themselves on q
coin basis. Whenever they have achieved
this the country will have actually re-
sumed specie payments, but not until
then; and the demand on the Treasury
for coin in exchange for greenbacks will
come from the national banks in their
efforts to resume.
II we have traced the process of fresump-
ton correctly it appears that 1T involves
no further contraction of the CURRENCY Dy
the government, but coin expansion TO
the amount of the silver dollars coined;
that the operation of natural causes, de,
mand and supply, upon. the national
banks will, after resumption, expand or
contract the amount of currency as the
wants of business shall demand, That the
creenbacks redeemed must remain in the
Treasury, but will be replaced by an
eanal amount of coin put in circulation;
that if revival of business should offer
employment for more currency than is
now in circulation, which is highly i'm
probable, the tree banking law enables
the immediate supply of this demand
without further legislation; and that
while we should certainly be in a much
Eon,racu had mt for