The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1878-09-03
A New Resumption Theory.

The science of finance affords ample
material for almost any kind of theory
which one may choose to construct and
no matter how contradictory such theo.
ries may be this does not prevent the
correctness OF each from being clearly
demonstrated. 1t Is q progressive sci
ence. The progress consisting in an ex
pert Of to-day tearing down the sym
metrical structures builded up by the ex-
pert Of yesterday.
Even a mere smatterer may construct
3 theory which will look plausible enough
until some awkward fact blunders against
It and topples it over. We have con-
structed one of that kind, and It under
takes nothing less than to prove that re-
sumption may be begun and maintained
with much less amount OF specie than
there is now In the Treasury, and that
too without contracting the circulation
Of paper issues to the extent of dollar
The proposition below, taken from
SHsRnAE's speech, and for that matter
from the speech or writings OF any re
sumptionist, furnishes the bedrock on
which our theory rests. Let it be well
examined, for II it be sound then no
financial theory can be sounder than
ours. We callit ours because although
1t has not yet been copyrighted, we warn
all tresspassers off the premises until we
can sell the right TO use 1t to Austria,
Russia, Turkey and other natiQns whose
paper issues are hunting owners at .
email fraction Of their face. s's
Here 1t Is, a very rock of Gibraltar
for impreguability:
"The whole burden now resting upon
the Government is to maintain resump
tion upon the amount of United States
notes, end this confessedly can be done
by coin reserve offrom thirty to forty
per cent, which we have on hand, while,
il the whole amount OF circulation was
In United States notes, no coin reserve
that could be reasonably secured and
maintained would be sufficient for the
purpose OF redemption.
"The bank notes are not 10 any sense
the notes of the Government. They are
the notes of private corporations amply
secured, redeemed by them, maintained
by them, or, II they fall to redeem them,
the security can at once be applied to
their redemption This expedient Of al
lowing portion OF the circulation to be
issued by private corporations enables US
to maintain In circulation nearly twice as
much paper money as could be maintain
ed at par in coin II issued directly by
the Government gss ~ s.
Now from this to resumption is easier
than falling Of log SO slippery you
can't stand on It. sea
Behold the ptocessi
One-half (about) Of the paper curren-
cy, being Ia National bank notes, re.
deemable in greenbacks, onlythe other
half needs to be provided for. This dis
poses Of one.half the trouble.
Now let there be an issue Of another
class Of notes-call them forconveni-
ence State bank notes-to the amount OF
one-half the greenbacks. These shall re-
tire an equal amount of greenbacks, SC
the circulation shall be kept at the same
point. These shall be redeemable in Ms
tional bank notes, 90 there will be no
need to supply coin for their redemp
tion. "This expedient' leaves but say
e225, 100000 Of greenbacks to provide
for. and according to Secretary SHERMAN
S75, 100000 in coin is amply suf1cien
for the purpose.
Again, let US have another issue equa
to half the remaining greenbacks, ell2,
soc, 900, OF another class-say county
bank notes-taking up an equal amount
of greenbacks, and redeemable In STATE
bank notes. No coin necessary for these
Now there is but s37, 500, 900 in coin ne
cessary for resumption. 80
Once more, set your printing press il
motion, and strike of still another clas
call these Township bank notes-equa
in amount to, and retiring, one-half th'
balance Of the greenbacks-s57,250,0 ,00
-these redeemable in county bank notes
and but SIS, $50, 900 in coin does the bu
siness beautifully.
Still sgain but what is the need 70
amplifyingi There are School Distric
notes and Road District notes and so OF
indefinitely, that may be added; and W
may say proudly, but we trust with be
coming modesty, that our New Theor.
Of Resumption can be made triumph
ant success with sixty.two and hal
cents coin In the treasury!!! and all pa
per money when run through the regula
channels will be convertible into coin q
the pleasure Of the holder, without con
tracing cents worth!!! !.
The happy owner Of Road Distric
note has only to demand Township
note, for which he demands County
note, With which he secures a State note
for which he readily obtains Nationa
note, for which the banker is. only TOT
| glad to give him greenback, and Sec
retary SHERMAN showers blessings on hi
head while he hands him over the coin |! !
After conceding to the Secretary c
the Treasury his full share of credit 70
furnishing the original crude idea frou
which this immortal Theory is evolved
may we not exclaim--if we do not SO
It too loudly-EUREKAp
wA hundred times it has been a
legged that the Supreme Court intimate
that it would declare unconstitution'
i any act of Con oraes anthor;1;re, tho ;aar