The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1878-04-11
THURSDAY, APRIL ii, 1873.
PE,SIH PTTON.

II III q m 4 yf-N.
Tie conferences between secretary
Sherman and the financial committees Of
both houses Of congress have consider
able interest both for the student Of pol .
itieal economy and for him who disre-
CARDS theory but looks to the practical
effect of financial legislation. Secretary
Sherman is firm believer in the prac
ticability Of resumption at the time fixed
upon and only asks Congress to refrain
from adverse legislation. While he is
confident he i not positive, and admits
The possibility Of the governments be-
ing forced TO suspend payment but con-
sidcrs this contingency to be 50 remote
rs not to merit consideration.
The imaginary dangers which the
anti-resumptlonizts conjurod up In the
event Of the resumption laws going into
effect. are dispelItd by the common sense
argument Of the secretary. Kelley, In
his celebrated speect Of last winter, be-
ses the path which led to redemption
with so many perils that national disas
ter was certain in pursuing it. But
while union Of all possible uniavorable
circumstances might verify the correct
ness Of his prediction, the suppositon
chat such will arise is rather suggested
by fancy than supported by reason.
The maturing Of all debts, national.
municipal, corporate and private, in
short interval of time and the refusal Of
creditors to accept in payment anything
but specie would infalIibIy result in al
most universal bankruptcy. This argu-
ment is set forth with all the beauty Of
rhetoric and with all the force of elo-
quence by those who contend for the re-
peal of the resumption law. There is,
perhaps. not one creditor IN the union
who would refuse currency at par with
gold lust because it is net declared le-
cal tender by law After the date fixed
for resumption greenbacks may be re-
ceived in payment for any debt for which
they are legal tender to-day. They
10 not lose their character as money.
Resumption does not aim to divest them
Of that. If they be at par. or almost at
par with gold and no greater quantity IN
circulation than are needed in the course
Of trade, there will certainly be no
scramble TO have them exchanged for
gold Novelty viii Of course draw on
the fund provided for resumption. If
there is an excess of greenbacks in cir
culation over the requirements of trade
that excess will readily find its way to
the national treasury. But the people
Of the United States are by no means so
determined in their hostility to specie
payments as to be willing to do them
selves an injury to prove abortiye the
plans for resumption. The Secretary
thinks that the $12O,OOO,0O0 specie
which he is certain will be on hand at
the date fixed for resumption will be
amply sufficient to meet all the demands
made on the treasury for coin. Expert
ence amply demonstrates the soundnsss
OF this opinion. There are in circula-
ton, and in reserve by the national banks
$500, 600, 600 in greenbacks. The
amount held 10y the government for the
redemption of these outstanding notes is
relatively greater than the amount held
BY any bank in the United States for the
redemption Of its issue. No bank ever
held more than a sum equal TO 80 per
cent OF its circulation for redemption
purposes. The threat of the national
banks that they will pour into the treas
ury for redemption the $4,000, 600 re-
serve, was met by the counter menace,
more formidable because of the greater
power of the government, that the gov
eminent would in that event withdraw
It's deposits from the national banks, pre-
sent their notes for redemption and thus
bring into the treasury the gold which
in pursuance oftho policy indicated by the
national banks, would be drawn from it
This counter movement would operate to
keep the greenbacks in the vaults of the
national banks from embarrassing the
secretary in his efforts to return to specie
payments without dotriment to the In
terests Of the country.