New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-07-24

ure Insisted that resumption was not only possible ou
easy that the accumulation OF coin would lower n'
price, improve the public credit increase the SAFE on
per cent bonds and thai when the fund should he sum
cien TO inspire confidence in tne ability TO resume re-
sumption would be tranquil and easy passaIge' VI,
nevcd that IL would lessen the burden of the public
debt and lower the rate OF interest not only 10 inc pun
| lie but 10 private individuals
SUCCESS OF RESUMPTION.
Let ms now examine which of these opposing opinions
has been proved to be by the test OF experience
The success OF resumption depended entirely upon the
ability OF the United States by the time fxed 10 arcu
muate in the Treasury amount OF coin suincen' ~
meet any demands likely to he made upon H. ehiS con-
could only be obtained by surplus revenue or oS 'he
sale Of United States bonds full authority Tor wch Wa"
given by the Resumption Act. In April, 1871 IL was
announced by the Administration that from the ISL VI
MAY the Treasury Department would accumulate co'"
al the rate OF S50OO000 month, and accordingly 'h"'
sum was set aside from the sale OF 4a per cent bonds UP
| TO the 1st Of July,
The very announcement of the purpose to resume
with definite plan Of resumption at once had reVV-
ing effect upon the public credit increasing the sae Vi
4la per cent bonds This induced the Treasury Depart
mcnt on the 23d day Of MAY, 1917 to Withdraw TIC
per cent bonds and on the 9th OF June, 1870 W p'
the per upon the market to be sofa at par III oo'
both for refundng and resumption purposes ms was
a critical experiment. the expediency Of which was
grayey doubted by many friends Of resumption but IL
proved a perfect This course was pursued uht
November the price OF coin constantly declining ana
bii speelilv passed the House of Representatives 70
repeal the Resumption Act This ana other pfoposeG
| measures affected seriously the puDhc cieui., a,"
stopped the sale OF bonds rs with clamp. an eAh ,h
nation Of financial problems by The committee, oon
houses and the debates IN Congress cHuseu lIe
refuse 10 pass the bill for tine repeal OF the kcsumpo
Act and finally prevented the passage OF any D n
would cripple that act and left te Executive "uhoii'
| to pursue It's duty as prescribed therein ,,. ..
On April H. 1879. the Department was again ape 10
resume ITS policy OF purchasing COIN 9y tne saie W ~
per cent bonds. and shortly aferward TO commence the
policy was steadily pursued TO the end During tee
process constantly declined ana the sale OF per
600 GOO 4l2 per cent bonds at premium OF % per
cent and 1913 6S5450 PEI cent bonds at par Nne,y
million dollas OF proceeds Of bonds SOLD III 1871
and SIS were held in coin part Of The resumption
fund.- aud the balance applied to the payment OF
ISIS and before Congress had convened we had thus
accumulated including surplus revenue com reserve
OF Sl3s 100000. Resumption had practically come one
month before the day fixed by law as quietly ana lf-
gully vessel would h0dt from the river INTO III, the
ocean. our notes were no longer ut n discount lhey
ne iaio4rr tbe farmer and tbe Doudhoder and all as
good as the best issued from the mint On The Isl
day January, and on every day since hot gO!d ana
sIypr have been ready and have been paid 10 every
holder OF a greenback desired II. SO complete
was the success OF resumption that All the notes pre-
scented for redemption since the LIST OF January tlu
prior 10 tie LIST OF July amount TO S7016.6Js, while
gold been freely deposited III the treasury IN
exchange Tor Uuitd states NOES. The total amount OF
god coin and bullion IN the Treasury The % day Of
January 1879 was S135,3S2 $50 A. On the ls day Of
this month inc amount OF such coin and bullion was
sl3543647I G2 and the amount OF silver dollars has
incrcased 516,G0731o in January 10 $2SIl7.35l
| Julyl.
The law provided for the redemption of United States
notes Ouy the Su-Irea7uTy at NeW-HOih, ana cap
uous critics who SAID that resumption was suen Oh,
jcccd that not redeemed In Other paris o!
the United states. But III fact resumption DID occur IN
all parts OF the United States; and III he lar NeSt ana
in California grocubacks rose TO ana are now al pre-
mum. To remove the complaints OF ie" persons, that
they could not &c. gold coin IN FGhddepha ana OhSfclI
les, the Treasury has SUI pied the demand Tor goa com
wherever II has arisen; but United States notes being
redccmabe IN com are so Hltl 10 a.
the uses OF life that, m practice they are preferred ey
erywAere, and now ia tull circulation and credit,
not only in every part VI the Ohled states p IN every
leading European city, ana III lAe ISLANDS oi The racine
RESUMPTION NOT AIDED BY CONGRESS.
No assistance whatever extended by Congress In
aid of resumption On the contrary 1t increased the
minimum OF United states notes. upon which resunp-
ton was to be maintained, from 33OOOOOOOO TO S346,-
6sl Ol6 1t reccnty required the redemption Of frac-
tonal coin as well United States notes. BY pending
measures of tue most dangerous character, and by
continual agitation, 1t greatly disturbed the public
credit and the task of the Department much more
difficult and It's much less. IL reduced the rev.
enue from tobacco TO the extent OF eight or
nine millions annually 1t largely increased the aggre-
gate Of appropriations
The annual appropriations for the fiscal years ending
lime so 1873 1879 and $780, exclusive Of appropria
tons for public debt and other permanent appropTa-
tons, were as rolIoWS'
lS70........................... l46,5J43J9 q
1880. 1OI'oOo0o4 w
appropriations, IT neither levied new taxes nor gave
Authority borrow money TO meet these extraordinary
demands but used the sinking fund which was spech-
cay set aside by law for the reduction Of the puDlc
debt; thus arrestlng the established Polley OI the
I'm the last session II appropriated S2G,S00O00 for
arrears pensions, debts due worthy class OF citizens,
for tins purpose the fund in tie Treasury provided by
law the redemption OF fractional currency leaving
Fortunately the increase OF revenue caused by resump
ton and reyving industries wilI, nope enable the
| IL
Of pensions by the 1st of January next, without any
other of the pnbc dept than that caused by
demands 10 largely due 10 econOmie5 effected collect
Ing the customs duties and other executive savings.
RESULTS OF RESUMPTION.
Let us now what have been the legitimate results
OF resumption.
Since the of January and prior to the LIST OF july
1879 we have paid about $l,OOOOOO com certificates
with United states notes, and have paid Sll9,jOl,
100 90 United States bonds with United States notes
or the enormous sum of called bonds paid by the Treas
ury so lar known, not dollar has been demanded
In coin and by resumption We have paid, and are
having daily the 500 and 1910 bonds in currency.
Prior TO definite preparations for resumption, 1t
impossible TO sell per cent bonds of the United States
at par IN coin. After such preparations we were able to
senln 1877, S75,OOO,O0O 4 per cents and in 1873,
SOS. 6S5 $50; but the moment that resumption
complete the sale Of bonds increased with unexpected
rapdty We sold IN the month Of January, 1870, $ljS
gO4 co. and ia the month OF February, S9O,101 $50
In the month of March the sales fell TO $2Os52lOO,
chiefly by reason Of fear that the enormous payments
required the reiundng act during the months Of
April and May would create "a disturbance in the
money market this fear having been dssDated, by
the ST OF April the sales rapidly resumed, and IN
four days they amounted to S73252300 enough 10
cover and pay of all the outstanding 90 bonds OF the
United States Thus tine first fruit OF resumption,
WITHIN one hundred days after It's coming we sold
S3431lO2504 per cent bonds, with which 10 pay an
sanIl amount OF per cent bonds securing saving OF
90 s62 205 year. Nor is tins al There were ont
standing at tBat time Sl94,56b,3CO per cent lO-lO
bonds redeemaDe at the pleasure Of the United states
10 nay OH bonds the Treasury Department offered
$3.50 900 900 per cent bonds az premium OF q Of
per cont The residue 10 be paid from the prOceeds