The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-07-24

desperation Of Wall street the money kings Europe 70
greenbaek for redemption and destrueton fast the
Senator Coke. in the United States Senate May H.
1878. said
Its better, Mr. President that bide our time and
across the pathway presumption The experiment must
end r s pd " yet ns Tns a
private and savings banks. with their of the
nsuheieney Of their and many of the national
banks m, mast fan from the same cause In the general
sneeumb Is simply question of time Tor this result
after tho st day of January next.
On the 10Th of November. 1877. my old friend
Judge Kelley. OF Pennsylvania. in the House of
Representatives, said:-
this act is to DO And tell youand you may
prove 10 DO prcdictionihe suffering we have
q & the hsS this law has been II sxs
with feathered frost the leaves and flowers of the tropical
States compared with the Arctic cold that builds up
phore OF our coast as 1t passes near our shores.
have desire to jeer or scott at gentleman
whom sincerely respect, although near two years
ago he gave us authority to do If he proved to be
u false prophet
Mr.. Muldrow said. in the House of representa-
tives. November III. 1S7T:-
The gives the Secretary of the Treasury power
sell bonds obtain gold redeem greenbacks
and fractional but there Is such provision in
Of the law will be the absorption and retiremen of the
believe that tho national banks will DO able redeem
their circulating currency with coin In January, 1879
Mr.. Buckner, chairman Of the Committee of Bank
i ISL -: .-N ' ''' paw 90 ''' -'' -0''-'''i'
learned capitalist or laborer merchant or farmer who be-
eyes resumption possible or practicable Perhaps the
l might quote for days the warnings and evil
prophecies OF democratic and greenback friends
but they have been recently made that it is scarcely
necessary. On the other hand. the supporters Of
this measure insisted that resumption WAS not only
possible but easy; that the accumulation of coin
would lower its price, improve the public credit in
crease the sale of 4 per cent bonds and that
when the fund should be sufficient TO inspire con-
fdence in the ability to resume resumption W luld
be tranquil and easy passage, the sure forernnner
OF hopeful prosperity. They also believed that it
would lessen the burden OF the public debt and lower
the rate OF interest not only to the public but to
private individuals.
SUCCESS OF RESUMPTION.
Let us now examine which of these opposing
opinions has been proved to be true by the test OF
experience
the ability OF the United States by the time fixed to
accumulate in the Treasury amount of coin suf-
fcient to meet any demands likely to be made upon
it. This coin could only be obtained by surplus
revenue by the sale of United States bonds full
authority for which was given by the Resumption
act. In April 1877, it was announced by the admin
istration that from May the Treasury Department
would accumulate coin ut the rate of $5.000,000
month. and accordingly that sum was set aside
from the sale of u per cent bonds up to July l.
The very announcement OF the purpose to resume,
with definite plan of resumption, at once had
elect the pubic credit, increasing the
sale of IA per cent bonds. This induced the Treas
ury Department the 23d day Of May, 1877. to
withdraw the Az per cent bonds. and. on the 9th
of June 1877. to place the per cents upon the
ket to be sold ut in con both tor refunding and
resumption purposes. This critical expert
ment the expediency Of which was gravely doubted
by many friends of resumption but it proved per-
feet success. This course pursued until No
vember, the price OF com constantly declining and
confidence steadily improving, when Congress met,
and bill speedily passed the House of Representa-
tives to repeal the Resumption act This and other
proposed measures affected seriously the public
credit and stopped the sale of bonds as with
clamp. An examination of financial problems by
the committees Of both Houses and the debates in
Congress caused the Senate to refuse to the bill
tor the repeal OF the Resumption act. and finally
prevented the passage Of any bill that would cripple
that act and left the Executive authority to pursue
its duty prescribed therein
On April IL. 1873, the department was again able
to resume its policy OF purchasing coin by the sale
meDce the sale Of per cents for refunding pur-
poses, and this policy was steadily pursued to the
end. During the process coin constantly declined
and the sale OF per bonds steadily increased
In 1878 sold $50. 100000 Az per cent bonds at
esnt bonds 81 ar Per Nnety a million
proceeds OF bonds sold in 1877 and 1878 held in
coin part Of the resumption fund and the balance
was applied to the payment of per cent ivetwenty
bonds. At the enc OF the year 1878 and before Con-
gress had convened we had thus accumulated includ-
ing surplus revenue coin OF $l3s, 600 900.
Resumption had practically come one month
before the day fixed by law quietly and TRANQUILITY
as vessel would float from the river into the
Our notes were no longer ut discount They
at par with coin. The same money was paid to the
laborer, the farmer and the bondholder. and all
good the best coin issued from the Mint. On the
LIST day OF january, ana ON every day since, both
gold and silver have been ready and have been paid
complete the OF resumption that all the
notes presented for redemption since the 1st OF
January, and prior to the LIST of july amount
S976GS while gold coin has been freely deposited
in the Treasury in exchange for United States notes.
The total amount of gold coin and bullion in the
Treasury on the I'd day of January 1879, was
xl35. 3Sl. 639 40 the first day this IN a
amount OF such coin and bullion Sl35 Ala co.
and the amount of silver dollars has increased from
$l6,697 1888 in January to SIS, Ia. 35i July l.
The law provided for the redemption of United
States notes only vt the Sub-Treasury at New York.
and captious critics. who said that resumption was
sham. objected that notes were not redeemed in
other parts of the United States But, III fact.
sumption did occur in all parts of the United States
and in the Far West and in California greenbacks
rose to and are now at premium. To remove the
complaints of few persons that they could not get
gold coin Philadelphia and other cities the Treas
ury has supplied the demand for god coin wherever
ii has arsen but United States notes being redeem
able in coin are so much ore for all the
uses of life that, in practice they preferred
everywhere. and are now in full circulation and
credit. not only in every part of the United Slates
but in leading European city and i'll the islands
OF the Pacific Ocean.
RESUMPTION NOT AIDED by CONGRESS.
No assistance whatever was extended by Congress-
in aid of resumption. On the contrary, II increased
the minimum of United States notes. upon which
resumption to be maintained from $500, 600 900
to s346 6s1 DIG 1t recently the redemption
of fractional coin well Az United States notes. by
pending measures of the most dangerous character
and by continual agitation it greatly disturbed the
public credit and IN Ide the task of the department
much more difficult and its means much less. It
reduced the revenue from taxes on tobacco to the
extent OF eight nine millions annually. II largely
increased the aggregate of appropriations.
The annual appropriations for the fiscal years end
ing June So 1878, 1879 and 1880 exclusive appro-
priations for public debt and other permanent ap-
preparations, were as foliows:-
1878. s114 069, 4S3 10
1909. liO,j0430o II
While Congress reduced the revenues and increased
appropriations it neither levied taxes gave
authority to borrow money to meet these cxtraor-
binary demands, but used the sir king fund which
was specifically set aside by law for the reduction of
the public debt; thus arrestng the established policy
Of the republican party OF yearly reducing the debt.
In the last session II appropriated S26 300, 900 for
arrears of pensons-debts due most worthy class of
citizens-but provided no means tor their payment.
1t applied for this purpose the fund in the Treasury
provided by law for the redemption of fractional
currency, leaving this form OF deb to be paid of
current revenue. Fortunately. the increase OF
nue. caused by resumption aud reviving industries
WILL hope enable the Treasury to pay every dollar
80