Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1878-09-06

great bulk OF our exports are agricul-
tural; and the expectation OF our agrl
cultural products has been largely and
continuously on the increase since 1870
[ have had prepared at the Treasury
Department a table showing the value
of our exports of agricultural products
from 1870 to 1878, inclusive. This table
shows that in 1870 our exports amount
ed in round numbers to 1891 100000; in
1871 to 398, 100000; in 1872 to $407 ,0OO,-
900; in 1873 to $494, 100000; in 1874 to
$3.50, 100000 in 1873 to $480,000,000 in
1876 to $5l4,00O000; in 1877 to $5l8,-
100000; in 1878 to 1892, 100000 On the
other hand, many articles hitherto i'm
ported by us are now produced at home
while there are others that we can
spare, if we choose to do without them
Our gold and silver product for some
years has averaged $1,000, 600 annually
SO that if in the future our exports
shall only equal our imports, exclusive
OF gold and silver, say for a period OF
ten years, we conld add to our stock of
coin, if required, from $600,G00,000 to
$SO0,O00,00O, unless the production Of
the precious metals should largely de-
crease which is not likely. Our bonds
largely held abroad heretofore, have
been returning for the las; two or three
years; so that in future our interest
payments will be disbursed at home
chiefly. Thus, in any condition likely
to occur, our stock of specie will in
crease from year to year, without draw
ing from other countries.
On the 1st of August there were
&207 100000 of specie i'll the Treasury
and the Secretary Of the Treasury is
employing all our mints, to the full cx-
tent of their capacity, in coming both
gold and silver to the full capacity OF
the mints, which in the future will
amount to about S4,000,00O per month
indefinitely. The government is direct
ly responsible for the redemption Of the
greenback currency, amounting to S347 :
100000 The banks must, to some ex-
tent, at least, enlarge their boards of
coin, and must In great degree take
care OF their own circulation.
SHALL WE REPEAL THE RESUMPTION
ACT.
Under these circumstances, would it
be wise to repeal the resumption act?
Last year there seemed to be great
doubt of our ability to resume on the
day fixed. But the large increase of ex-
ports over imports, enabling us to retain
the whole product of gold and silver of
last year at home, and the remonetiza-
ton of silver, and its future utilization
have removed the difficulties that thus
seemed to be in our way. What would
be gained now by the repeal? The Sec
rctary has accumulated coin sufficiently
to begin resumption now, if the act did
not provide that it should begin on the
1st of January next. The simple repeal
of the act would not prevent his using
gold and silver as he now uses the
greenback currency; and by this use
they would undoubtedly be at par with
each other. The best evidence of oul
preparation for resumption is that pa
per money has been within one-half OF
one per cent. of coin continually fol
more than two months past; and as oul
exports from month to month are large
ly in excess of our imports, there is now
a constant accumulation Of coin in the
country.
The resumption act has been so modi-
fed that there can be no further con
traction Of greenbacks, and national
banking is still free, so that in that di-
rection there may be an expansion OF
paper money-though there is not like
ly be an unhealthy expansion. There
fore nothing could be gained now by re
pealing the resumption act, whatevel
may have been the apparent necessity
for its repeal heretofore. But those
who ask for repeal do so on the grounG
that there is not now a sufficient vol
ume of money to transact the business
of the country, and that the repea
would have the effect to enlarge the
volume. 1t seems to me that it is re
sumption, and not its repeal, which
would have that effect.
In all countries where paper money is
convertible into specie, the specie OF
that county becomes part of the avail
able cxchangeable money. Now it must
be borne in mind that the volume OF
greenbacks is stationary; that the ma
tional bank circulation is not likely tC
increase or diminish; nor is fractional
silver. But there will be an increase OF
coined silver dollars at the rate OF
$4,000,000 per month; and as the golC
bullion is not likely to be required for ex
portation, this will also be coined an(
enter into the circulation. 1t is etimat
ed that we now have at least 100000,
600 of specie in the country. Before
January lst, 1879, there will be adde(
to this, of coined money, at least $50,
100000, without taking into account the
specie imported, which to degree vii
also be used as money. Now it is safe
to assume that of the $350,000,000 O.
metallic money on the 1st of January
next, $2O0,0O0,000 will, in one form o.
another, be added to the volume. Sc
that at that time we will have 100000,
600 of circulating money-or Sl30,0OO,
600 more than we have had at any one
time within the last ten years. Is it no
clear, therefore, that if an increase o
the volume of money is desirable, thu
surest and speediest method of accom-
plishing this result is by means of spe
Gle payments?
Having shown that specie payments
can be maintained, that resumption vii
result in an increase and not diminu
tion of the volume of money,
ARE SPECIE PAYMENTS DESIRABLE?
1t is universally admitted that ma
tion having dealings with other nation
can conduct those dealings proftabl.
only by using as a medium of exchang
the money which is recognized in tn,
worlds commerce Therefore, during
the war and since, all our transaction
with other countries have been settle,
in coin. Our internal and external com
merce are so interviewer that both viii
be facilitated by the use of common
standard. We must deal with othe
countries. We must find there mar
ket for our large surplus production
We must buy of them tea, sugar, coffee
and like articles, which are not produce
in this country-at least not produces
here in quantities equal to the necessar
consumption.
Take for example our agriculture
products. These are always largely i
excess of consumption at home, and tn
surplus must be sold abroad. There
fore the price of these articles in tn
markets of the world, regulates the pric
not only of that exported, but also to
great extent of that sold at home. No,
when our wheat reaches Liverpool. it
price is fixed in coin. Of course it i