The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-01-31
THE RESUMPTION ACT.
Abstract Of the Remarks Of Hon Ignatius
Donnelly, Made in the Minnesota
Senate. Jan. ~, 1873.
REPEAL THE RESUMPTION ACT,

AT the hour Tor the special order the re6Olu-
ton of Senator Doran for the repeal of the re-
sumption act having arrived, the resolution was
read, and Senator Donnelly proceeded to speak
to it.
Mr.. Donnelly said, the question was not
are you in favor Of paper money being made
as valuable as gold:" 10 this every man, be he
Democrat, Republican or Greenbacker, would
answer, Eyes" The question was, are you in
favor of specie resumption by the methods
specified in the act of Congress Of January IA,
1875, under which we are now living. Mr.. D.
here read the law. By this it appears that about
$50, 600 900 of greenbacks are to be cancelled
and 800, OO0. 600 national bank notes issued in
their place. Why? Will the bank notes be any
safer! No. It is the fact that the government
is behind them that gives either any value.
Will they be any cheaper? No. The $50. OOO, 600
of greenbacks cost you nothing but the cost Of
printing them. You have also to pay the cost
of printing the national bank notes, and in adj
dition to that, you will have to pay gold inter
est on $50 OOO, 600 of United States bonds issued
to take the place of the cancelled greenbacks.
This at per cent. would be four million asnu-
ally for tie nert thirty or forty gears. Is this
right?
It is not necessary. The banks are already
receiving liberal rate of interest on their
capital.
1t is not safe to leave a question of such vast
Importance as the supply of the currency of
the nation, to a few corporations. If their ne
cessities demand it they will withdraw their
currency. This has already been done on a
large SCALE to the ruin of thousands of business
men. If there is any profit arising from the
creation Of paper money it should go to the
government, not to private corporations. Mr..
Donnelly here quoted from speech of Salmon
P. Chase, made durtng the war, in which he
showed that the greenbacks saved the nation,
paid and fed and clothed our vast armies and
navies, and that when they were issued all the
banks in the United States had suspended
specie payments, and that they wanted the
nation to carry on the war with their dlshon-
ored promises to pay. Chase said, NO; the
American nation is worth more than all of you
put together and he issued the greenbacks.
But it is claimed that it is not intended to
cancel the $500, 1000, 900 of greenbacks which by
the act of January, 1875, must be redeemed
with gold; that the government will issue them
again. How? Now they represent part of the
national debt = the non-interest paying
part. But if they are paid off with the pro-
ceeds of bonds issued in their place, how can
the government issue them again? What debt
will they represent! Every dollar OF the
national Indebtedness will then be expressed in
interest bearing bonds. The revenues of the
government are more than sufficient to cover
it's current expenses. But suppose they are
issued again will the government then create
$500. 600, 600 more bonds and sell them and
with the gold redeem the $500, 10000 Of green
backs again, and then issue them again: II SO
where is the process to end:
If our 1912. 600 900 of greenbacks wiped
out then we and our children will have to pay
annually for many years over fifteen million
dollars of interest, through taxation, on the
bonds issued to represent them; for the debt
must exist as bonds if it does not as green
backs. What have we then in return for the
al $4,000, 900 of taxation? Financial ruin.
Who has asked this thing: What State legis-
lature has memorialized Congress to destroy
the greenback! Not one. What offence
has the greenback committed! 1t is
rag money, says one. True; but is not the
national bank note rag money" too; and .
very expensive kind of rag money? Why is
there no clamor to wipe that out? Why does
Congress seek to increase the volume of that
paper, while it obliterates the greenbacks? 1T
is dishonest promise to pay says one, 1T
isn't redeemable.' Is the national bank note
redeemable9 Yes in greenback. Then one
is an irredeemable paper; and the other is a
paper redeemable In an lrredeemable paper,
Subtle distinction
But suppose it conceded that it would be q
good thing to destroy the grenbacks and sup
ply their place with $500, 0OO, 600 of gold, can
we get the gold: Here MIR. ID. read an extract
from a speech of Gov. Boutwell,, q. s. S., from
Massachusetts,. and ex-Secretary of the Treas
ury under Grant, made in the Senate in 1874,
in which he stated that there were but <6OO, OOO,
600 of specie in the nine great banks OF Europe,
and that it was impossible to draw even ~, !
600. 900 of gold from Europe to this country
without producing panic there. The Bank
of England. Gov. Il. stated had refused to let
United States bonds be sold in England unless
the government agreed to reinvcst the gold it
received in England and take securities in
place of it. When the Geneva award was made
giving this country $500, 900 for damages
incurred through Confederate ships, the Bank
of England interposed and prevented our gov
eminent from drawing the award in gold. We
were compelled to take our pay In United
States bonds.
Mr.. ID. said that it was prcpnstcrons To think
that ANYTHING less than an invading army could
take from the nine great banks of Europe one
half their total fund of gold and remove il to
this country. And If We got it here how long
would it be before il all went back in payment
of interest on state, national and railroad
bonds?
But, say the newspapers, paper money IS now
worth nearly much gold-there Is but I.
per cent difference between them. When We
say gold aad paper worth nearly the same
in Mali street. what does that mean Simply
that the goId-gam blers do rot dare To bet on a
higher price. Why Because the government:
stands behind them with twenty thirty mill
ions of dollars In gold ready to let it los.e at
! any moment and smash their plots. This i the
club that keeps vail street in order. Here Mr..
Doi3le1EF gave the history of TIE 52m1t-s
Black Friday. Ii was the result Of nh
derstandlng between Gould, Fisk. and Grant
| that tke government would not interfere by
selling gold but would let Gould ard Flss
pat up the price of gold. The Fesult Was, that
| they rushed it MP in few hours from I'D r.
| loo per cent until the government Was forced
to COM. iato the market and sell gold. and
thus break the back of the conspiracy. But
suppose Gould and Fisk had had the power "a
| gather together thirty fifty. or hundred mil
| hons of greenhacks and demand gold for
them. anu thus empty the treasury Of every
/ dollar it had on hand. where would gold have
| gone to- This right specie payments will.
thereafter. give the spectators As fast -
| the government accumuIases gold il will BE-
drawn out for greenbacks-
| But. saws some one. all We need IL S1U 00o. :
coo of specie to float $500 000 900 of paper: and
| they point to the experience of the banks
which. with one dollar of specie keep three OF
paper z:ioat But there is this difference: Every
| hank has interest IN uphnldIng every other
| hank, danger to means danger 10 all.
Hence they do not present each others notes
and demand specie. With the government il
| would be different Wall street has neithel
conscience nor patriotism For = margin oi
profit equal to of Per cent they would
| overthrow the nation. To say the least. ~
| would be completely At their mercy II tn
government owed ESQ.,. 100000 Of greenhacks
and had cleo 000. 0O0 to pay them with would
not such cattle a. Gould form cumhInzxions 4
get that gold and pu: up its price? It is skiing
too much Of human creduhfy 10 be ieve any
thing else-
Tu1n to France. The Preach psople hsvs