The daily gazette., 1878-06-18
The Resumption Law.
DEBATE IN THE SENATE ON ITS
REPEAL, JUNE 13, 1878.
From, the Congressional Record.

to reply to but single point made by the
honorable Senator from Delaware. He
says that resumption is here; that it is a
fixed fact. simply desire to call the at
tention of the Senate to some important
facts. One is that there is at this time in
the United States of gold and silver,
| coined and uncoined, all told, less than
$3.50, 100000. OF that fifty million is
| fractional silver, which is not legal ten
| der for debt in sums exceeding So. We
have a population estimated at forty-five
million. There are six billion dollars
worth of products evolved annually from
the various forms of industry in the
United States; the exchanges of this
country run into untold billions. The
Indebtedness of the country is simply
enormous, greater than that of any other
country in the world. The business ac-
tivity is, under healthy and normal con-
ditions, greater than that of any other
country in the world.
| Yet the Senator from Delaware says
that we have resumed specie payment,
that resumption is here, based upon
5000, ,000, 900 of legal-tender coin. In 1861
there were three hundred millions of COIN
, ed gold and silver in the United States
The exchanges of the country since that
time, by the best authorities, have doubl-
ed. We had no more in 1850 of coin
than was necessary; and with doubled eX-
changes, with population amounting
then to thirty-five million and now forty
| five million, do we not require more
than S200,000,000 of coin to resume
on?
| What does resumption of specie pay
ments mean? 1t means that every dol
lar of debt will be demandable either in
coin or paper redeemable on demand in
coin. And yet for the vast amount of
paper necessary to be used for the vast
sum of the exchanges of the country; for
the whole business of the country to be
moved by money, there is less than $780,
| 100000 of coin at the present time. And
the Secretary of the Treasury in his esti-
mates does not contend that we will have
in the United States on the 1st day of
January next more than S235, 100000 of
coin. Can you resume specie payments
with S235, 100000 of coin? We can do it
but if we do, we shall crush every debtor
in the country; and he who holds the
money bags will find his wealth tive-fold
increased.
Mr.. President, favor specie resump-
ton whenever it is possible or practica-
BILE to resume specie payments; but
protest against fruitless effort because it
Twill ingulf the country in ruin, and that
the effort will be fruitless we have only
to refer to the facts of history and to the
facts that are exhibited to us in reference
to the Indebtedness, the business, to the
exchanges, and to the industries of this
country. Two hundred and thirty-five
million dollars which the Secretary OF
: the Treasury says will be in the country
will not be half enough.
| want specie resumption. | believe
. that gold and silver are the CONSTITUTE onal
currency. | agree with the Senator from
Delaware in that. During the war le-
gal-tender notes were issued. They
have been held by the Supreme Court
: constitutional. The court based the de-
cision upon the eXigencies of war. They
say the necessities of the country de-
manded their issuance. If the necessi-
ties of the country demanded their issu-
ance, the necessities of the country de-
mand that they shall remain until chang
ed conditions enable us without running
the country to adopt another financial
, policy.
We have not coin now OH which to
base n redeemable currency, and there is
, an annual drain from the country of one
hundred millions of coin to pay interest
on foreign debt, and by reason of it We
cannot add to our existing stock. Fol
forty years, and long before our public
debt was created, there was a constant
outflow of coin from the country. The
:. increase of our mine product in late
l years falls far short ofthe increase ofthis
= drain by reason of the public debt.
Il ,f
the Senator from Delaware, has been
accomplished. Has it been accomplish
ed? How? The Secretary of the Treas
ury admits that he has not the specie
5 how but hopes to have it by January tc
e resume on. He admits that he does moi
It hold it now, and he does not expect
a there will be in the country over $3.50,
" 100000 in January. If he should be a:
II successful as he can be and get every
e dollar of the $235, 100000, from wha
J, source can we expect to bring it up to til,
amount necessary to sustain specie pay
ments.
@ The balance of the export trade is ;
d little in our favor just now, and has beel
. for three years past; but notwlthstand
ing that the average annual excess or th'
5. export of coin from the country owe
=, imports has been between forty and fift,
surplus exports, where is it to come from
From what point, from what quarter ar
we to get more specie to add TO our pre-
sent insuffc cient stock in order to enable
us to maintain specie payments? w
r simply have not the coin, and if we TAX
statistical facts, which are so clear tha
he who runs my read, we cannot get II
n and if we could get it, there are betweei
e eight hundred and one thousand million
: of our bonds in foreign hands, and Secre
: tary Sherman, in his interview with thu
House committee referred to by the Sena
: : tor from Delaware, admits that it is IL
Is the power at any time of the foreigl
e holders of 500 100000 of our bonds t.
e bring them over and put them upon thu
G market and take the specie out of th'
d country and make us suspend specie pay
A lments, 1t we could reach specie pay
+ ments, we should do it by crushing on
~ the industries of the county. and coulC
l. even maintain it at that only by the per
{. mission of foreign holders of our bonds.
: The proposition Of the lat senator %of from IN
l.a.1.- 1,o.,, oonciImn1 IsliSSpnt from