The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-12-31
Resumption To-Morrow.

tomorrow. On the one hand, ample store OF
coin seems to have been provided against
the stress OF any probable contingencies.
On tho other, the national banks, which col
iectivoly figure among the largest creditors
OF the Treasury, have evinccd a resolute
purpose TO further, by wise forbearance and
jealous cooperation, the success OF the ex-
pertinent There is every ground to expect,
and we confidently hope, that this event
ful turning point in our financial history
will DO passed without shadow OF obstruc-
tion or a ripple OF disturbance.
just seventeen years were finished yester-
day since the banks Of the Northern States
suspended payments in specie and the Fed
eral Treasury was forced to follow their
example. During that interval we have
committed some fiscal errors, and we have
more than once wavered on the verge Of dis
nstrous, irreparablc blunders. Tho sixty
millions in demand notes Issued in 1861
being receivable for all dues including GUS
toms, were to the last almost as good as
gold; but when Secretary CHASE in Fcbru-
AIRY, 1862 put forth SlJO.O00,OOO in non-intcr-
est-bearing notes, declared to be legal
tender yet not receivable for customs, the
depreciation began forthwith. BY October
OF the same year these bills were worth only
sevcnty-two cents on the dollar, and sue
cecding issues of like tenor brought the
ruling price far lower until the minimum Of
value was reached in 1854 Even after the
close Of tae war In October, 1865 our 30
called legal tenders were offered at dis
count OF thirty per cent, while at the same
epoch our public debt had touched the max
imum u It's huge proportions.
The breadth OF the change which has
since been brought about may well DO re-
garded with considerable complaccncy. In
the first place, our lcgal-tcnder notes, be-
fore the date fixed for resumption, and by
the mere operation Of the laws OF trade,
have recovered their face value. In the
second place, $500 900 OF the interest
bearing debt have been paid-not shifted
from one species OF obligations to another
but forever stricken from the national
ledger. Moreover. the rate OF interest on
our bonds has been lowered from 60 to So
per cent. and thus by one means or another
our annual interest account has been re-
duced upward Of third, namely. from
4. $i4s OO0. 900 TO SOC. 100000. Taking into view
the cash now laid up in the treasury, we
have either paid, or have on hand the
means OF paying, one-quarter OF the vast in
debtedness accumulated In the years 1916
Meanwhile the taxpayers have rcapcd a
profit from these economies. In the year
which will close to-day, our national i'm
posts have been nearly $50 millions less
than they were in 1866. No such fiscal
triumph is recorded In the history OF ma
lions. Other States may have known better
how TO foster their credit, and have bor-
rowed on better terms but none have ever
gone so far toward the reimbursement Of
the lender. Planted on the ground OF such
achievements, We are justified in looking
forward to the era now beginning with
q steadfast faith.
Aside from the specific measures taken to
insure resumption. there are some general
considerations which should dispose US TO
take a cheerful view OF the situation. For
some months 1t has been plain that the tide
Of business prosperity, whose long and dis
Rstrous ebb commenced with the panic OF
October, 1873 had at last begun to turn.
Nor can It be- denied, although the reflection
Is n selfish one that our prospects are the
more propitious because the moment OF re-
covery is coincident with a time OF supreme
and perilous depression on the part OF some
other nations. As regards productive capaci-
ties we have now no rival, and our industrial
resources are far greater than they were
twenty years ago. We may not yet be in
position TO vie with British manufacturers
In foreign markets, but we have at least
succeeded to a very large extent in busting
them from our own. The impulse has died
away which gave such tremendous stimu-
lus TO English workshops through the de-
mands enRendcred by our prolonged and
Wlstoiul contest There are signs Of decline
IN the Industrial and commercial supremacy
Of Great Britain, while still more fragrant
and decisive symptoms Of prostration over
east the future OF tho German empire
France, indeed, is relatively prosperous, but
w many ways her situation Is less encour-
aging than our own. Tho burden OF taxation
resting on her people is already much more
0nerous than ours, while the national debt,
instead OF dwindllng, Ia steadily increasing,
and the budget Of Government expenses
shows deficit with almost every year. Not
wthstanding tho thrift OF her people, and
The cOnsummate abilities OF her public fnan-
tiers, France is too heavily weighted, and
This country may be expected to distance
her In the race. Nor can wo doubt that the
elastic energies OF the American people
would have asserted themselves two years
Ago, but for the dlsmay, msgiving, and
gloomy apprehension provoked by the cleo.
Ioral conspiracy. and the wrongful acces-
sion to Office Of men repudlatod at the polls.
II is In spite of the sinister influence Of
spurious Administration that the deirauded
nation has oOntrived 10 right ITSELF and
found at last the means OF rescue In Its
material resources and the traditions Of the
hthers.
These are not the only reasons why we
think that Jan. l, 1879. Is likely to usher In
an era Of renewed mercantile activity
throughout the United States. The opinion
may be fortified on other grounds. fanciful
perhaps at first sight, but which will prob
ably be found ~ liz deep about tho roots Of
human motive and accomplishment We arc
told by acnte observers that commercial
crises are periodic; that there Is tide In
business which usually takes about ten
years " rise and fall. In this credit cycle
The period m depression, according To