Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1878-03-28
RESUMPTION,

Last week Secretary Sherman ap-
peared before the Senate Finance
Committe, and gave his views on the
financial situa ton, and his reasons for
thinking it practical to resume on the
first of January next. His interview
with the committee was extended and
his statement of facts, as bear ng upon
the ns tional finances was interesting
and valuable. The length of the re
port published in the daily papers of
Thursday, prevents US from giving it
in full, and we content ourselves,
with giving its substance.
The Secretary says that since the
passage of the Resumption Act the
premium on gold has declined from 10
per cent. to one and fraction. Dur
ing this period the amount of green
backs outstanding has been reduced
from $3999, ,Q00,0QO to $349, 900, 600 and
the amount of bank notes from $685.
600 600 to 1921 100000 The balance OF
trade, an important element in the re-
sumption problem, is argely in our
favor, and is bringing TO US coin and
Uuited States bonds from Europe to
the amount of Sl60,000.000 year
The Treasury now holds about $50, 900,
900 of gold and silver and the banks
hold S3i, 100000. There is constant
accumulation OF specie in the vaults of
the Treasury and the banks, aggregat-
ing from $5,000,000 to $4,000, 900 a
month.
The Secretary begs Congress to let
the Resumption Act stand aud give
him a chance to demonstrate that he
can re-ume by the 1St of next January
There will be time enough, he says, to
repeal it when Congress meets next
! December, If its execution shall then
appear impracticable, BY next jana
ary he will increase his stock of specie
tn about Sl20, 600, 900, which he tn nix:
sum amply sufficient to meet al
demands for the resumption OF United
i States notes. As for the banks, they
have the privilege If redeeming theil
notes 10 either green backs or coin, and
as they are strongly in favor of resump
ton il is fair to presume that they can
look out for themselves. If Co1greS:
is willing to help the Secretary be asks
J from it two measures in aid of resump
J ton. First, he wants the privilege U
re-issuing greenbScks after the amount
outstanding shall be reduced below
$500, ,0G0, 900, which amount he believes
, can be kept in circulation after tn,
! Government resumes, on the basis o
the coin reserve he will then have OF
hand. This seems a very safe calcula
ton. The experience of solvent bank
in old specie-paying times, was that |
? was perfectly safe TO issue three dollar
Of paper for every dollar of coin il
: their vaults. The Government coult
undoubtedly make the proportion Q
} paper much larger, because peOpl
t have more confidence in the solvenc
2 of the Treasury than in that of an,
private corporation. The second meas
ure Mr.. Sherman recommends is I
make greenbacks receivable 70
customs dues after the first OF Octobe
2 next. He would have the Govern
! ment assume then that its notes wer
= already as go91 as gold. By ths
time the Treasury will have col
J enough to resume upon and can spar
z the customs revenues, and the accept
e ance of greenbacks for customs woulC
z make them ia demand for the onl
] purpose for which coin is now essential
/ aud to great extent diminished fo
= their redemption.
e The Silver Act, Mr.. Sherman says
e is both a hindrsnce and an aid to re
e sumption. 1t has stopped the sale {
J, the four per cent. bonds in Europe
( but as the bonds heretofore sold there
t which are now coming home in larg
t quantities. are eagerly taken by on
o own people, he thinks the scare wi
!, not last long, and that in a month G
8 two the funding operation can b
g begun again, and enough OF the fou
: per cents sold to provide all the eoi
the Treasury may need to naiutai
specie payments. The Silver La
= aids resumption by giving the Cover
ment the option to redeem in th