Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1879-08-07

on the 5th OF November, 1877. NY old
friend, Judge Kelly, OF Pennsylvania, ir
tue House OF Representatives, said:
But, gentlemen, the worst has no,
yet come II this act Is TO be maintained. Aud
tell you-sad you may book II to jeer and scof
me hfteeu months hence II II prove not 10 be
= true prcdicfion--,he suffering we have en-.
dured during the three years this law hs. been
10 existence, is like the chill which embellshes
while II blasts with featherri frost the leaves
and flowers of the tropical plants that surround
the homes OF our extreme Southern States,
compared with the arctic cold that builds up
The mountainous iceberg which chills the sum-
mer atmosphere of our coast as IL passes ne ar
I our shores"
have no desire to jcer or scof at a gen
tleman whom sincerely respect, although
near two years ago he gave US authority
70 DO so. II he proved 10 be a false prophet.
Mr.. Muldrow said. In the House OF Rep
fTeseutaiives, November i6, 1877
! The act gives the Secretary Of the Treasury
/ the power 10 sell bonis. 80 a. 10 obtain gold to
/ redeem the grceuhssks and n se,ional currency /;
/ but there Is no such provision In regard to the
national bank issues. The practical work king
Of the law will be the absorption aud retire
l ment Of the greeBbacks ami the issuance In
| their stead OF irredieemsiae national bank
aoies. No man with any financial saSncity
I can believe that the national banks will be able
I 20 redeem their circulating currency with coin
I in January, is.g."
| Mr.. Buckner. chairman of the Committee
I OF Banking and Currency. said on the 10th
l OF November. 1871:
II have no, been able to q nd oae man learned
I OF unieaTpej, capitalist or !sborer, merchant
. or iaTmer, who believes resumption possible or
+ practicable. Perhaps the Secretary OF the
/ Treasury is an exception"
might quote for days the warnings and
I evil prophecies OF our Democratic and
I Grccnback friends, but they have been so
recently made that II /, scarcely necessary.
( Ga the other hand. the supporters oi this
measure Insisted ,ha, resumption was not
only possible, but easy; that the accamu.
lstion of coin would lower It's price. In
prove the public credit, increase the sale
! OF per cent. bonds and that when the
lupd should be sufficient To inspire conn-
dence In the ability TO resume. resumption
would be traequll and easy passage, the
sure forerunner OF hopeful prosperity.
They also believed that II would lessen the
harden Of the public debt, aud lower the
rate Of interest not only 10 the public bot
to private individuals.
SUCCESS or RESUMPTION
Let Us now examine which OF these op-
posing opinions has been proved 20 De true
by the test OF experience.
rhc success OF resumption depended en-
tirrly upon the ability of the United States.
ny the time hxed, to accumulate in the
Treasury an amount OF coin sufficient to
meet any demands likely to be made upon
ti. Ihls com could only be oblained by
surpiu. revenue. or by the sale OF United
States bonds. Iull authority for which was
given by the resumption act In April,
1871. Il Sas announced by the Administra-
ton that from the lat OF May the Treasury
Department wonli accumulate coin n, the
rate Of e. go 90 n month, and accord
iugly that sum was set aside from Va. sale
at Ia per cent. bonds up To the l., of
jay.
The very announcement OF the purpose
10 resume. with = definite plan OF resump-
tioa, AZ once had a reyiy,ug effect upon
the public crcuit, increasing the sale OF
l-a per cent. bOads. rhi- Induced the
Treasury Department. 90 the 2jl day OF
May, ls1.. 10 withdraw The i-3 per cent.
bonds. aud on the oh Of June. 1877. to
place the per cents. upon the market TO
De Sold at par la coin. both Tor rchlndlng
aUd resumption purposes. Th. was a
critical experiment. the expediencv OF
which was erAveiy doubted by many friends
Of resumption, buI It proved perfect sue
cess. This course was pursued until No
yrmber, the price oi coin constantly de
clining. aud confidence steadily improv-
Ing, when Congress met and a bill speedily
passed the House of Representatives 10
repeal the resumption act This and other
proposed measures affected seriously the
public crecii, and stopped Ihe sale OF the
bonds as with Il clamp. An examination
of financial problems by the committees OF
both Houses, aud the debates In Congress
caused the senate to refuse to pass the
bill tor the repeal of the resumption act,
A ID. a
bill that would cripple that act, and left the
Executive authority 10 pursue its duty as
prescribed therein
On April IL, 1868, the Department vas
again able to resume It's policy OF plrchss-
lug coin by the sale OF IL per ceut. bonds
aud shortly Afterwards to commence the
sale OF per cents. for re!undIu. purposes,
and this policy was steadily pursued %
the end. During the process coin coD-
stanlly declined, and the sale of per cent.
bonds steadily increased. in 1873 we sold
so 300 900 IL per cent. bonds at prem
ium OF IL per cent. and sl2S, $50 40
per cent. boLds at par Ninety million
dollar. of the proceeds OF bond. sold u
1877 aud 1875 were held So coin as a part
OF the resumption fund, and the balance
was applL.si 10 the payment of per cent.
hve-txeniy bonds. At the end OF the year
1875. aud before Congress had convened,
We had thus accumulated, Including sur
plus revenue, coin reserve OF sl3S, ,OpU,-
90. Resumption had practically come
one month before the date fixed by law, as
quietly and traGquilly as a vessel would
float from the river Into the ocean. Our
notes were no longer at a discount. They
we're at par with coin. The same money
was paid 10 the labOrer, the farmer, and
the boudholder. and all as good as ,he hest
.E,, saa, he. E.x, A A
OF January. and on every day since, both
gold snd silver have been ready. and have
been paid 20 every holder Of = greenback
who desired IL. So complete WAS the sue
cess of resumption that all the notes pre-
sented for redemption since the ist OF Jan
uary and prior TO the lst Of July. amount
to 1876 o9o, 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 la the
Treasury on the "a day Of January, 1879,
was sl35 ,Ss2 ,639.i2. On the lst day OF this
month the amount Of such coin and bullion
was Sl35. .436, ,47Is2; and the amount OF
silver dollars has increased from Sl6.691,-
33s in January to S2S, ,l47. .35l July l.
The law provided for the redemption Of
United States notes only at the sub-treas-
ury at New York. and captious critics,
who SAID that resumption was 3 sham, OBJ
jected that notes were not redeemed In
other parts Of the United States. But, in
fact resumption did occur in all parts Of
the United States; and In the far west, and
In California, greenbacks rose to and are
now at a premium. TO remove the com
plants of few persons, that they could
not get gold coin 10 Philadelphia and other
cities the Treasury has supplied the de-
msnd for gold coin wherever 1t has arisen;
but United States notes being redeemable
in coin are so much more convenient tor
all the uses Of life that, in practice, they
are preferred everywhere, and are now in
full circulation and credit, not only in ev-
cry part OF the United States, but 10 every
leading European city, and in the islands
OF the Pacific ocean.
RESUMPTION not AIDED BY cOSGRESs.
No assistance Whatever was extended by
Congress Ia aid Of resumption. On the
contrary II increased the minimum OF
United States notes, upon which resump-
tiou was to be msintained, fFsm $500. .0O0,-
O0O In A346 Gal 0l6 IL receutlV REQUIRED