The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1878-01-17
AMERICAN GOLD AND WHAT n
MUST PAY.

MuST EA1.
In the late discussion, il the
House of Representatives, of the bill
repeating the specie resumption law,
Hon. VIM. D. Kelley delivered a
speech which we wish the people ev-
ery-where might have the opportuni-
ty of reading. We subjoin a brief
extract which presents the difficulty
of resumption under existing cir
cumstances in a strong light. Those
unacquainted with the facts may be
surprised at the mountain of debt
piled up against us which may at
any time send down it's avalanche.fo r
our destruction. There is a grim
humor in Judge Kelley's account of
the Treasury gold, though the Judge,
who knows well how to be humorous
and is always eloquent, gives it as
sober fact. Speaking Of the obsta-
cles to resumption he said:
"The question before the Ameri-
can people is not between gold~and
the inconvertible paper of the Gov
eminent, which by its legal-tender
character is money. 1t is paper
money and bank credits, which, in
the absence Of a sufficient supply of
metallic money with which to con-
vert them, will continue to be ire
deemable. l have conversed conf
dentiaIly with many bankers, and
have not found one of them, when
speaking thus confidentially, who
did not admit hat though the Treas
ury may resume specie payments on
the lat of January, 1879, it cannot
maintain them q week. The made
quate supply of bullion on.which it
NAV resume will, some Of them have
said, be exhausted ON that day by
the holders of certificates of deposit
and banks which will have sent for
ward large amounts of notes for re-
demption, and the gold having thus
been transferred to the banks and
the Treasury having again suspend
ed, the time will have arrived for a
renewal OF profits on sales of gold by
those banHs that may have happened
to present their demands in time.
What the effect of a new suspension
by the Government would be onthe
price of gold, o. can predict as no
one is able to predict the duration of
the suspension.
Upon what demands do We pro-
pose to resume gold payments?
Over $500, 100000 of greenbseks;
over $500, 000, 900 Of bank notes. l
have here to continue the list Mr..
S. Dana Horizons work on Silver and
Gold, in which l find some things
from which to dissent and much to
commend; but the facts embodied in
which have been most carefully COM
piled. 1t gives on page A the debt
statement for September, 1876, when
the national debt was 50, 203, 902, 645.
The nominal amount of outstanding
State securities is given as about
1885, 00O, 900, of city securities, $543,-
600, 900, of railroad and canal bonds
about $2,170,000.
Gentlemen may say "why the
passing of this act does not mature
those obligations?" No, gentleman.
it does not; and I do not pretend to
assume that the conversion of all OF
even of a considerable percentage Of
them will be sought; but when you
remember that all these securities
are marketable in u market, it ma.
lures all Of them that they may be
held by foreigners who can send then
home, have them sold, and draw fol
the proceeds in gold. 1t puts oul
Government in the attitude of hold.
ing itself up as the reservoir of colo
from which allits creditors and those
of our people land they are to be
found in every civilized nation may
draw for gold when they need or de
sire it. The act does not make pay
able in gold the deposits in u ma
%tional, State, private and saving:
banks, which amount to thousand.
of millions. 1t puts up the gold-pay
ing basis all book-accounts, promis
sorry notes, and mortgage and judg
ments debts. 1t piles up such al
amount of debt as no nation has eve
undertaken to pay in money basec
r on a single metal. And with wka
do you propose to pay it: Gold
know. What gold have you? VIII,
five resolutions, ingeniously contriv
ed to extort information, brought II
the fact that in July of the long SEES
sion of the last Congress the Treas
ury had of real gold at its absolut
disposal $13, 900; for in til
amount Of gold named by the Treas
ury in monthly debt statements w
have bonds retired, but which hav
! not been Cancelled; we have cupon
) paid, but which have not gone int
r account Of coupons. The major pal
r of the gold reported as inthe Treas
ury is paper gold, against which pal
ties have claims, or paper which tn
1 Government has paid and not ye
: found time to carry into account an
: cancel.