The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-05-08
THE RESUMPTION ACT.

That the resumption Of specie payments,
after long suspension is. in the abstract o
desirable thing, no sane man will deny but
that the government Of the United States
should under existing circumstances in this
country persist in it's attempt to resume
specie payments on the first Of January, 1879
| is proposition the heartlessness Of which is
eq,laled only by its absurdity.
| Horace Greeley, the unconscious tool of
New York capitalists was fond Of reterating
| that the way to resume is to resume, and
| Secretary Sherman, the cod-blooded Shyoek
Of the administration. Is doing his utmost to
enlist in support of his presidential aspira-
tions the money power Of the North and East
by endeavoring to carry out Greeeys sen
tentious but eenseless aphorsm.
In 1876 two years after its insidious and
Inder-handed attack upon the interests of
the people in the act demonstrating silver the
money power of the land lobbied through Con
gress the act providing for the resumption of
specie payments on January ], 1879. This
bitter pill, which seemed to threaten an
alarming contraction Of the currency. was
| sugar COATED with the provision that there
should be no limit to the establishment Of
national banks and that greenbacks should
be retired to the extent of only 80 per
cent Of the amount Of new national bank
notes authorized to be issued The advocates
Of speedy resumption triumphantly pointed
to this provision rs conclusive evidence that
they were not seeking to reduce the volume
of the currency. But what was the practical
effect of the bill2 As every one familiar with
ing nature of capital might have foresecn,
the one idea Of resumption in few years
dominated in the minds and dictated the
policy of the men and institutions that con-
trolled the vast bulk Of the circulating me
dunn of the country. Legal tenders wore Mt
that time Mt discount Of about IS per cent.
and these individuals and corporations. count
ing upon o certain gain from resumption Of IS
per cent in addition to what they might realize
from loans on collatprals began at once to
Withdraw az much currency as possible from
active industry and enterprises calculated to
develop the resources Of the land. and concen-
trated it Mt the money centres of the country,
where they have ever since employed it in
short loans on stocks and bonds, and fostered
speculation at the expense Of honest industry.
The evident plethora of currency in cities
like New York, Philadelphia and Boston Was
urged by the advocates Of resumption as an
unanswerable argument in favor of contrac-
ton Of the currency, as was also the fact that
not only were few new national banks
established but some of the existing
ones even retired their circulation
and surrendered their charters. This
reasoning sounded plausible enough and
actually succeeded In siIencing opposition TO
the res,lm ption act until the poison contained
in that pernicious enactment penetrated into
every artery of industry and paralyzed the
business of the whole country. Then the
masses of the people began to reason about
the matter, and they soon discovered that
the real cause of their distress lay in the fact
that the capitalists of the land, tempted by
the prospect Of certain gain Of fifteen per
cent in addition to snch profits as they might
derive from ordinary loans on COlaterals had
gradually withdrawn their money from every
enterprise involving the slightest risk or un-
certainty and left trade and industry to Ian
guish. In other words, that the resumption
act directly encouraged the boarding Of money
by the drones of society through the bonus
Of IS per cent which it provided for them at
the expense Of the toling millions. Hence
the fierce and determined demand of the
people for the repeal of that obnoxious law
a demand which has enlisted our earnest
sympathy and which no honest representa-
tive of the people can turn deaf ear to.
Delay in the passage Of this measure by
Congress may prove disastrous to all classes
of the people We have heretofore shown
how the forced resumption Of specie pay
ments in Great Britain from 1919 to 1926 al
most bankrupted and ruined the whole king
dom; how the holders of commodities and
property of all descriptions found their capt.
tai dim nished about SO per cent In the course
of few years, and how the universal dis
content and suffering engendered by these
calamities produced such mighty up
heaval among the people as TO
bring about a popular revolution that de
stroyed the power Of the moneyed classes
over the fortunes and liberties Of the people.
We hope that the money rings and bondhod-
ers Of this country will take warning from
this example and abandon their heartlpss I'M
dertaking to force the resumption of specie
payments before the country is prepared for
tan undertaking which, If successful, may
have the effect of goading the people to mad
ness violence and destruction.
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