The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1879-08-28
Ghe 9 ailg Atsns.
RocxTsLAHD.. .rrIYro7.
The Credit of II.


/
G., Inc cool assurance with which Mr.
sherman approprlates all the credit of re.
sumption and the refunding business Is
one Oh the most singular features in these
remarkably successful experiments. The
resumption OF specie payments after a sus-
pension OF seventeen years, and the CONVEX.
sion OF large portion of the public deb,
bearing per cent. into a new debt hear
Ing only per cent. whereby 2 per cen.
on the sum converted is saved, are GER
talniy transactions which cannot be- dis
paraged, and the successful accom- plsh.
ment OF them is cause for pride and graf
ncatlon. But to say that the secretary nt
the treasury has brought them about. or
could have brought them abont bv his
own efforts, IS ridiculous. Even as agent
IN executing the laws of congress passed
several years before he came TO the head
OF the treasury department, and in direet-
ing the resources OF the country to the
WORK cut out for him, he would have fail
ed put for favoring conditions of most
remarkable character, The country began
10 drlft towards resumption immediately
after the collapse of 1873, when the pre-.
MUM on coin fell to.6 per cent, What ia
called resumption is the lifting of legal
tender notes to par with coin. The pro
cess began IN 1873, before the. RESUMPTION
act was passed, and, it is probable. il
would have been completed and legal.
tender notes brought to a level with coin
even If the resumption act had never been
passed and Mr.. Sherman never been made
secretary OF the treasury. The collanse of
1873 forced upon individuals and corno-
ratlons ali over the country the necessitv
OF making settlement of their debts
and this brought about resumption, or the
equalization of the legal tender debt with
coin.
As to the refunding operations. we have
to thank, not Mr.. Sherman, but the wide |
spread prostration of enterprise aud credit |
and the general bankruptcy of states. cor
porations and individuals for their success |
The refunding business consisted in con-
vertlng certain per cent. bonds which
were payable into per cents. Had moi
the country been filed with idle money
which could fad no profitable employment
In manufacturing, railroad building and
productive enterprises, this conversion
could not have been effected This idle
money could not be safely invested at /
per cent; 1t had to go Into the 4-per-cept.
ponds. or remain idle and reproductive. |
When the secretary of the treasury an
nounced that the per cent. bonds would |
cease to bear interest after certain date,
the holders of these securities Lad the
choice OF taking per cent. interest for
Their money or nothing at all. They could |
not invest it 10 manufacturing, for manu-
featuring was overdone, and thousands Of |
mills and industrial works were closed and |
idle. They could not invest it 10 farms
and other real estate, for farming shared /
the general depression aud unimproved |
real estate had no value. 1t was a case of |
per cent. or nothing-and this is what
the new bonds to be taken up with
such scramble by those who had idle
money TO dispose of,
Add to this the enormous crops with |
which the country has been blessed in the
last i've or sig years, aud which have
enabled it to Sell several hundred millions
more than II bought, and We have an ex-
Ct the ease with which The re-
SUMPTION aud rebuilding processes have
been Effected, ara no thatk~ Ia Mi Shcl-
n&0.