The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1879-07-31

the law will be the absorption and retiremen
of the greenbacks and the issuance in thei
stead of irredeemable national bank notes. N,
man with any financial sagacity can beliey
that the national banks will be able to redeem
| their circulating currency with coin in January
1879"
Mr. Buckner, Chairman of the Committee O
Banking and Currency, said on the 10Th of No
vember, 1877:
Il have not been able to find one man
! learned or unlearned, capitalist OR laborer
!, merchant or farmer, who believes resumption
! possible or practicable. Perhaps the Secretary
Of the Treasury is an exception .
Il might quote for days the warnings and evi
prophecies of our Democratic and Greenbacl
friends, but they have been so recently made
that 1t 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 woulc
lower its price, improve the public credit in
crease the sale of our 4-per-cent bonds; and
that, when the fund should be sufficient to in
spire confidence in the ability to resume, re-
sumption would be a tranquil and easy passage
the sure forerunner 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 success of resumption depended entirely
4 upon the ability of the United States, by the
| time fixed, to accumulate in the treasury an
| amount of coin sufh to meet any demands
likely to be made upon it This coin could
| only be obtained by surplus revenue, or by the
sale of United States bonds, full authority for
which was given by the Resumption act. In
tratlon that from the LIST of May the Treasury
Department would accumulate coin at the rate
of s., COO, 600 month, and accordingly thatsum
was set aside from the sale of 4L15-per-cent
bonds up to the 1st of July
II The very announcement of the purpose to
resume, with a definite plan of resumption, at
once had a reviving effect upon the public
credit, increasing the sale OF 4&-per-cent
bonds. This induced the Treasury Depart
ment on the 22d day of May, 1877, to withdraw
| the AZ percent. bonds, and on the 9th of June
1871 to place the per cents. upon the market
to be sold at par in coin, both for refunding
and resumption purposes. This was a critical
gravely doubted by many friends of resump-
ton, but it proved perfect success This
course was pursued until November, the price
OF coin 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 pass the bill for the repeal of the Re-
sumption act, and finally prevented the pass
age of any bill that would cripple that act, and
left the Executive authority to pursue its duty
as prescribed therein.
| On April IL, 1875 the department. was again
| able to resume It's policy of purchasing coin by
the sale 41a-per- cent bonds, and shortly after
! ward to commence the sale of 4 per cents. for
refunding purpo es, and this policy was stead
coin constantly declined, and the sale of per
cents. steadily increased. In 1878 we sold
5O,OO0, GOO 419-per cent bonds at premium
| of ~ per cent, and $12S, 6S5, $50 4-per-cent.
bonds at par. Ninety million dollars 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
6 per cent. $50 bonds At the end of the year
| 1873, and before Congress had convened, we
had thus accumulated, including surplus rev.
enue, coin reserve Of $13S, 100000. Resump-
tion had practically come one month before the
day fixed by law, as quietly and TRANQUILITY as
vessel would float from the river into the
| ocean. Our notes were nc longer at discount
| They were at par with coin. The same amount
was paid to the la borer, the farmer, the bond
holder and all as good as the best coin issued
from the mint. On the LIST 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 desired it. So complete was
| the success of resumption that all the notes
| presented for redemption since the LIST of Janu-
airy, and prior to the 1st of July, amount to
81 ,976 69S, while gold coin has been freely de-
| posted 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 $135, 49,, 639.42 On the LIST
| day Of this month the amount of such coin and
bullion was 1915, 436, 474. 81, and the amount OF
silver dollars has increased FROM SIG, 697 1888 in
January to 1928, 147, 551 July /.
| The law provided for the redemption of
| United States notes only at the sub-treasury at
New York, and captious critics, who said that re-
sumption was a sham, objected 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 premium. To remove the complaints
of few persons that they could not get gold
coin in Philadelphia and other cities, the treas
ury has supplied the demand for gold coin
wherever it has arisen; but the United States
notes being redeemable in coin, are so much
more convenient for all the uses of life that in
| practice they are preferred everywhere, and are
now in full circulation and credit not only in
every part of the United States but in every
leading European city, and in the islands of the
/ Pacific ocean.
! RESUMPTION NOT AIDED BY CONGRESS-
No assistance whatever was extended by Con-
gress in aid of resumption. On the contrary,
it increased the minimum of the United States
notes, upon which resumption was to be main
tanned, from $500 000 Coz to $346, 6Sl DIG It re-
Gently required the redemption of fractional
coin as well as United States notes. By pending
measures of the most dangerous character
and by continual agitation, it greatly disturbed
the public credit, and made the task of the de-
1 partment much more difficult and it's means
much less. 1t reduced the revenue from taxes
on tobacco to the extent of IS, O00, 00Oor
600 annually. 1t largely increased the aggre-
gate of appropriations. Aes
The annual appropriations for the fl seal years
ending June so, 1878, 1879 and 1880, exclusive
of appropriations for public debt and other
permanent appropriations, were as follows
1875. .S114 06a, 4S3 10 1879 $146. 3O4 300. 81
1880. ..... $161 EOS, 934.O0.
While Congress reduced the revenues and
increased appropriations itneither levied new
taxes nor gave authority to borrow money to
meet these extraordinary demands, but used the
sinking fund which was specifically set aside