Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1879-08-14

of both houses and the debates in con-
gress caused the senate to refuse to PASS
the bill for the repeal of the resumption
act, and finally prevented the passage of
any bill that would cripple that act, and
left the executive officer to pursue its
duty as prescribed therein. On April
II, 1878, the department was again able
to resume its policy of purchasing coin
by sale of Az per cent. bonds, and short
| ly afterwards to commence the sale of
per cents. for refunding purposes, and
this policy was steadily pursued TO the
end. During the process coin constantly
declined and the sale of tour per cent
bonds steadily increased. In 1873 we
sold $50,000,u00 four and half per
cent. bonds at a premium of one and
half per cent, and $12S, ,6S5, ,450 four per
cent. bonds at par. Ninety million dol
lars of the proceeds of bonds sold in
1877 and 1878 were held in coin as part
| of the resumption fund, and the balance
was applied to the payment of the six
per cent. twenty five bonds. AT the end
of 1878, and before congress had con-
vened, we had thus accumulated, includ-
ing surplus revenue, coin reserve of
$l3,000,000. Resumption
HAD PRACTICALLY COME
one month before the day fixed by law,
as quietly and TRANQUILITY as a vessel
would float from the river into the
ocean. Our notes were no longer at
discount. They were at par with coin.
The same money was paid to the laborer,
the farmer, the bondholder, and all as
good as the best coin issued from the
mint. On the first day of January, and
on every day since, both gold and silver
have been ready, and have been paid TO
every holder OF a greenback who de-
sired it. So complete was the success of
resumption that all the notes presented
for redemption since the first of Janu-
ary, and prior to the first of July, amount
to $7,976,69S, while gold coin has been
freely deposited in the treasury in ex-
change for United States notes The
total amount of gold coin and bullion in
the treasury ON the second day of Jan
uary, 1879, was $135, 1892, ,63942 On the
first day of this month, the amount of
silver dollars has increased from $16,-
697, 1888 in January to $29, 147,351 July 1.
RESULTS OF RESUMPTION.
Let us now see what have been the
legitimate results of resumption. Since
the first of January, and prior to the
first of July, 1879, we have paid about
$1,000,000 coin certificates with United
States notes, and have paid $110,501,-
109.93 United States bonds with United
States notes. OF the enormous sum of
called bonds paid by the treasury, so far
as is known. not dollar has been de
manded in coin, and thus by resumption
we have paid, and are paying daily, |
the five-twenty ten-forty bonds in cur
rency.
The annual saving in the interest
charge, effected by these refuning oper-
ations, since the first of January last, is
$S,810.46 and since the first of March,
1871. to the present time, S14, ,297,1s7.
Sometimes complaint has been made
that, during the process of refunding the
amount of interest bearing debt was tenn
porarily increased, and that interest was
paid on two sets of bonds at the same
time. This, from the nature of things,
was unavoidable under the provisions of
the funding act of 1870. By that act, be-
fore any bond can be redeemed, notice
must be given for the period of three
months. Before that notice must be
given, bonds have to be sold and the
money either collected or secured, and
this process necessarily involves the pay
ment of interest for three months, not
only upon the bonds sold, but upon those
to he redeemed. Advantage was taken
of this fact to unjustly arraign the de-
partment for matter beyond its control. |
A constant outcry was made that the in
terest-bearing
DEBT WAS BEING INCREASED.
The debt statement would necessarily
show that, during the three months, two
sets of bonds were outstanding, but it |
would show also that the money was in
the treasury, and this being deducted
would leave the balance Of the debt as
before. Thus, if you owe a thousand
dollars with the right to pay it at your
pleasure, aud borrow money for that pur-
pose, you will have two notes outstand-
ing at the same time until you can apply
the borrowed money to the payment of
the first note. The secretary then showed
how resumption had increased the pros
peritv of private business by diminish
ing the rate of interest and facilitating
inves ments. The state of New York
has, by law, reduced the rate of interest
in that state from Ito 6 per cent. The
city of Providence sold AZ per cent.
bonds at above par The state of Penn
sylvania sold $2,O00,000 per cent. bonds
at above par. The city of New York sold
per cent. bridgebonds at 156 76. Five
million dollars of Denver and Rio
Grande railway company Z per cent.
bonds were subscribed in two hours-the
first time for years that money has been
pledged for building railroad. All
securities have advanced since January
1st at the average rate of 10 per cent.
Mortgages at from to 10 per ceut. are
daily being reduced TO from 6 to s per
cent. Capital is again seeking invest
ment in any safe securities that offer.
OPPONENTS TO RESUMPTION.
Now let US examine the specific COM
plants of our fellow-citizens who have
been heretofore opposed to resumption
and to the entire financial policy of the
republican party. Ofwhat do they COM
plain? First, they said resumption
would contract the currency; that VIC
would have nothing but coin in circula-
ton. This | have shown to be entirely
delusive. The resumption act provided
for no contraction of the currency, but
United States notes were to be retired only
as greater amount of bank notes were
issued. The on ly contraction that has
occurred since the passage of the resump
tion act has been by the voluntary with
drawal by national banks of portion of
their circulation when they found it
could not be proftably employed in
business. Every act done under the re-
sumption act tended to increase rather
than diminish circulation; and now that
all this circulation is at par with gold,
the coin Itself becomes an important
factor in the volume of circulation, and |
swells the amount that is available for !
the transaction OF business.
We have