The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-06-18
CONDITIONS AFFECTING TIE FU.
TUBE or BUSINESS,
The following is from the CONNER

tt"i ioNAc"t hpb M huNOCdAt VI dul pO-
litieal party. bat gives its views as the
condition Of the country warrants:
The second half Of the year will
open under conditions very different
from those that overshaloWed conf
dence "A few months age. To appreci-
ate at their full value the changes that
have occurred, il may be well 10 enum-
crate some OF the principal Of them.
j. The currency question has been
disposed of. Ii may be that there will
be further agitation Of the schemes for
increasing the Government issnes Of
paper and for abrogating the bank cir.
/ culation; but the country has had
enough Of this unsetting discussion
TO satisfy il for the present. and the
currency doctors will soon find that the
people are indisposed to make trial
of their nostrums. The only changes
that will be made in the currency laws
this session are. first, suspension Of
the process OF retiring greenbacks parj
pgsu with new issues of bank notes;
aud, next. a more explicit recognition
than the Resumption Act conveys that
United States Notes, when redeemed
after January ], 1879. shall be subject
| to reissue in the ordinary course of the
payments of the Government. The
effect OF this legislation will be to rem
der impossible any further contraction
OF the volume of legal tender notes
under the Resumption Act, to keep
tho outstanding amount Of those notes
stationary, and TO confine future ex-
| pansions or contractions of the paper
| circulation to the issues OF the nation
al banks. Both the Government and
bank issues will be maintained steadi.
| ly on a par with coin after resumption,
the Treasury notes through being at
all times exchanReable for coin, and the
bank notes through being convertible
| into greenbacks or coin, at the option
/ OF the redeemer. This settlement will
be very generally accepted as at least
good enough for fair trial. and as far
better than new experiments based on
extreme theories; and il may be safely
taken for granted that Congress will
not seriously entertain any fresh pro-
posals until the new conditions have
/ been fairly and patiently tested by ex-
| perience. The country may therefore
congratulate itself that the currency
bugbear, which has excited so much
alarm in the circles of capital, has been
finally disposed Of; with the possibly
important exception, however, that we
nave still 10 discover what may be the
working of the Silver Act.
q Rssunaptioo - assured uuder con-
dfions of exceptional strength. All
the attempts in Congress TO defeat the
restoration of the specie basis have
failed, and it is now certain beyond all
peradventure that, on the 1st Of Janu.
ary next, the Government will be ready
10 maintain the value Of its notes at
par in coin: which will then restore
the whole business Of the country to q
par basis. The Treasury has procured
the coin needful for resumption seven
months in Advance of the time con-
templated. II now holds Sl25, 900. 00C
Of coin properly belonging to the Gov
ernment and not subject TO the demand
Of depositors; besides which still fur.
ther accumulations are likely to be
made before the day Of resumption. -
This reserve must be regarded as abun-
| dantly ample for the maintenance of
specie payments, aud exceeds all mod
crate estimates as 10 the cum really
necessary. II has been accumulated
without 4 shadow Of derangement;
either to the foreign exchanges or to
the home money market; and thus all
been o6viafcd;. -anhid tie sEaseesRefisA
has been anticipated with so much
ioreboding OF stringency aud distrusi
and even panic will come and go not
only without ripple or disturbance
but with n positive accession OF conf
dence in all interests. This important
change from what was anticipated only
ak months ago constitutes gain IL
behalf Of the restoration Of business,
the value OF which it would not be
easy to over estimate. The beneht
however, is only partially appreciated
because the change has come gradual
lv; nor will its importance be fully un-
lerstood until We come TO realize what
Il is to be exempt from the perpetual
fluctuations in values that have, for
the last fifteen years, accompanied
deprecated currency.
3. The national credit has undergone
a very substantial and permanent inn
provement. The bad effects OF the
Silver Act upon the credit of the Gov
eminent, in foreign countries especial
ly, Immediately disappeared when the
Secretary OF the Treasury demonstrate
ed that the Government was determln-
ed 10 exercise Its power to enforce the
resumption OF specie payments; ano
the contamination OF the fifty millions
resumption loan was accepted as set
Ting that question beyond doubt
while the rapIdity with which that loal
has been marketed has demonstrated
how complete was the restoration o.
respect for the good faith OF the Gov
eminent. Since that negotiation, th'
rehux Of securities from Europe, whicl
had been proceeding at the rate OF ou'
hundred aud hfty millions n year, ha
completely stopped, and it appears b.
no means improbable that, at no yer.
distant day, the tide OF investmen
nav take an opposite turn. Thus eve'
the most serious blunders of legisla
, / ton bearing on the national finance
have been repaired, so far as regard
j their effects abroad; the determination
70 honestly honor our demand obliga
} tons having heen accepted by our foI
] | eiQn creditors as IN atonement To
) what was regarded by them as a quas
I | repudiatory act. To this extent, th
{ bad effects Of the Silver Act have bee
? neuturalized; which constitutes anoth
/ er change in the situation OF vast I'm
I? portance to the future Of business :
G For an Improvement on the credit OF
b.! nations government naturally carrie
7 along with il an increase OF conideno
o in the credit OF its various organizi
= tions, state, civic, corporate aud pr
: vate, aud thereby constItutes con
4 mercial resource helpful 10 the deve
G ocment Of the country.
4 A The process Of liquidation al
II pears to have progressed far beyon
:. ia elimination. During the fir
' unarter OF the year, failures we're fulI
i a. freauent as at any time since q
Il panic. and that fact produced mnC
y announcement; but. since then, the
= has been a very marked abatement
II suspensions Notwithstanding tho tenn
,e tations Afforded by the repeal OF 81
" bankrupt Act. and the opinion Is gan
irg ground that this diminutlon
h? fatlures will prove permanent. Shou
Is this hone be verified, II IS needless
l. indicate how materially that fact won
a contribute towards the revival OF CO
le fdence.
Of s. There has been marked rece
ne Improvement in the finances Of ma
8. of our corporate properties. Theear
ne mos of tho railroads show a steady
j. crease. and some OF them are on I
be noipt OF resuming disideuds viii
be have long suspended payments to tht
Il stockholders. Others that have he
mr. ,vorkad nnder receivers are couSuu n