The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-04-14
FORCED RESUMPTION.


Some days ago John Sherman perfected ar.
rangements with New York syndicate fol
the exchange OF AZ per cent bonds with &C.
cruet interest for SO tt6, 800 Of gold, which he
assures the country will be all sufficient with
the coin now on hand and to come into the
treasury before January, 1879, to effect the
resumption Of specie payment. The terms
Of this contract are, as stated In yesterday S
dispatches to the DEMOCRAT, as follows:
Secretary Sherman has made arrange
ments with the representatives Of the per
per cent bonds at 81 OH and accrued inter-
est; "a Of per cent to be allowed for conn
missions and expenses. BY the terms Of the
contract the syndicate Is not compelled to
take more than $10,0O0,000 but no doubt is
felt that the whole amount will be taken.
This arrangement seems to please the re-
sumptionists no better than those who favor
| the repeal Of the resumption act, and we are
! told that they are manfesting considerable
indignation over Sherman's course, who, 1t Is
charged, was endeavoring by 1t to cut off all
further financial legislation at this session of
Congress.
We confess ourselves at a loss to understand
the reason Of this Indignation or to say exact
ly what further financial legislation" the re-
sumptionists expect unless 1t be the repeal of
the resumption act itself, which the country
has never yet been able to regard as anything
else than q piece OF silly bragadocio and
q measure 1t was never seriously
apprehended would be carried out. The mat
tor Is. however getting to be quite serious In
view Of the arrangements the Secretary has
perfected to accomplish its purposes, and
there is but one way to prevent this, and that
s by the repeal Of the act. The Secretary OF
the Treasury Is certainly obliged to make
what provisions he can, no matter at what
expense to the people and their business
affairs, to bring about resumption at the ap-
pointed time, so long as tie law commands it.
There are but two ways IN which the measure
can be brought about by force, and the Secre-
tary has only chosen one Of these ways,
and IL 1t is carried out, Congress
and not he will be responsible
for whatever financial distress may result
from 1t. Exactly how this resumption Is to be
kept up after it has been mmenced how the
notes taken up to-day are to be re-ssued to-
morrow and redeemed in gold again next day,
we are not told further than that the Secre-
maintained SO long as there is difference of
q fourth of one per cent between greenbacks
and gold. The Eastern papers themselves are
beginning to acknowledge the difficulties in
the way ola forced resumption, and upon this
subject the Tribune says: with the present
quantity of paper money atloat. resump-
ton would be a perilous undertaking
for all concerned. and on the first
serious reverse suspension would prob
ably again ensue; but the assurance of
moderate and steady reduction in the volume
Of the currency would establish prices, re-
store confidence and make the return to spe-
Gle payments comparatively easy"
As we have said, there are but two ways to
resume specie payment. One is by contract
ing the currency till it Is reduced to the
amount of gold in circulation or at the COM
mand Of the treasury, and the other Is to in
crease the supply of gold by sale Of govern
ment bonds, thus increasing the Indebtedness
Of thegovernmenta and the burdens of taxation.
This last course Sherman has chosen and he |
Is putting out bonds at al immense
discount of one and q half per cent, be-
sides accrued interest and half Of one per |
cent, allowed as commi ssons for negotia-
tions, and this, too, in the face Of his own
confession that resumption cannot be main
tanned 30 long as difference of a quarter OF
one per cent exists between greenbacks and
gold The sudden contraction of the cur
rency would produce such storm through
out the country that that measure had to be
abaptioned, but the one adopted Is not much
better. 1t Is all very favorable to the syndi-
cate to get hold Of government securities ut
the terms of the contract with John Sherman,
but what good the government or the people
are to derive from this sort Of fictitious re-
sumption we cannot see. Under these circum-
stances Congress should Immediately put an
end to John Sherman's negotiations, even be-
lore tho first ten millions of bonds are deliy-
ered If possible, by the repeal of the resump-
Jon act. The equalization of coin and cur
,ency that is now being gradually reached
will then continue under natural laws that
will eventually bring about resumption on a
permanent basis that can never be obtained
~ force.