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

In those speculative times the tonnage O
American vessels in foreign trade dWindlet
from 1873 1856 in $780, to 1878 5333 tons in 1878
Wherever we were brought in competition will
countries doing business upon specie basis
we were driven from competition, either on tn,
ocean or in workshops.
Railroads were built where they were no
needed, in advance of settlement; furnaces
were put up in excess of all possible peTman
emit demand, and er-productlon and over
trading occurred in all branches Of business.
! The balance of trade with foreign countries
had been for q series OF years steadily agains
us. From 1868 to 1878 the excess of imports
to 1878, 1864, 052. 607. ~ a.
| am not able to give you the amount Of pri-
vate and corporate Indebtedness contracted in
foreign countries during the years OF reckless
speculation, but it was probably equal to or in
excess of the balance of trade against US. We
then enjoyed the prosperity Of profliigate
while wasting his inheritance, or the happiness
of a drunkard while on spree.
1 The.panic of 1873 called halt, and, as by a
stroke, paralyzed all domestic industry, and
bankruptcy and ruin spread from corporations
to individuals, and property was unstable ex-
| cept at prices far below it's value.
1t is hardly worth while for US to enter into
the discussion of the causes of this calamity.
| Honest men would differ about it. Some at
| tribute it to the waste of the war. some to the
over production that followed the waste of the
war, some to i1redeemable paper money But,
| whatever may have been the cause, the calami-
| ty was admitted by all to be wide reaching and
lOng-continued. 1t affected foreign nations
much more severely than our own. Every ma
ton in Europe suffered as much or more than
the United States. The industries of Great
Britain were paralyzed. Our earlier recovery
from this stagnation is due to FOUR vast
territory aud undeveloped resources, and
the natural energy of young and vigorous
nation. # e.
aM "a s THE RESUMPTION ACT
When Congress met in December, 1873 it
undertook to find remedy for these evils, and
for a year we had discussions in Congress, in
the press, and among the people, as to how
best to relieve our distresses and restore our
industries to solid foundation. In the course
of this discussion the people naturally divided
On the one hand it was insisted that the true
remedy was to initiate the currency by large
increase of paper money, and, with that view
upon the market. On the other hand, it was
insisted that the only hope for relief was to
return to specie basis and to advance all
forms of currency to that standard. Ia
In January, 1875, and during the second ses-
sion of Congress- eighteen months after the
act was adopted by a majority of both branches
and approved by the President. This was
Republican measure, for though many Dem
ocrats favored resumption. yet party discipline
and the hope of party advantages induced every
one of them to vote against. the Resumption
act. This measure wasa very simple one, con-
tanning but two propositions was that
SILVER coin should be gradually issued for the
redemption of fractional currency, and the
other was that on Jan. l., 1879, the national
treasury shonld redeem,u in coin, any United
States notes that were presented. "a. Thisjact was
not to take effect in its material provisions,
until four years from the date of it's passage
Steps were taken by Secretary Bristow and
your distinguished townsman, Secretary Nor
rill, for the gradual replacement of fractional
currency by silver coin, but until the
spring of 1877 no material preparation was or
could well have been made for the redemption
OF United States notes, which continued to be
deprecated, being worth only 89to "a cents in
coin A widespread feeling prevailed that re-
sumption was impossible; that it would not
bring better times, and the country continued
to suffer the fortunes of the panic of 1878
During the whole of 1876 and 1877 the Re-
sumption act was made the subject of denun-
citation. The absurd Lotion was put forward
that it was the cause Of the hard times, though
no material action had been taken under it. and
the hard times came eighteen months before
the Resumption act passed All sorts of
prophecies were made of its failure. We were
told that the Resumption act was sham; that
it was intolerance to assumptions; that the at
tempt to accumulate coin would put up it's
price; that it would be worth $4,000 to be on
the right of the line on the day of resumption;
that resumption was impossible ; that it would
PROSTATE industry; that it would stop the sale
of bonds; that it would raise the rate of inter
est for the benefit of the bondholders shylocks,
and capitalists. "a & n aae
The Democratic party inits platform adopt
ed In st. Louis, IN 1875, while pretending to be
for resumption, denounced the Republican party
because it had made no preparation for it, but,
instead, had INSTRUCTED it bywasting our re-
sources and exhaustlng all surplus income !;
and because, while annually protesting to in
tend speedy return to specie payments, it had
annually enacted fresh hinderances thereto.
1t denounced the Resumption act of 1875, as
such hinderance, and demanded it's repeal
Mr.. Ewing, of Ohio, and Mr., Voorhees,, of In
diana, with others, made minority report, in
which they declared that the lawsfor the re-
sumption Of specie payments On the 1st of Jan
uary, 1879, having been enacted by the Repub-
lican party without deliberation IN Congress or
discussion before the people. and being so in
adequate to secure its object, was highly iniur1-
GUS to the business of The country, and ought
to be forthwith repealed.
Mr.. Iilden, in his letter of acceptance. in
dorsed this doctrone and at the same time, de-
clared himself for speedy returnato specie
payments, saying "The Government ought
not to speculate on it's own dishonor in order to
save. interest on its broken promises, which
it still compels private dealers to- accept at a
fictitious par" N s@s I@AlSsS Ia I'll
l will read some prophecies made by very
distinguished gentlemen in regard to the Re
sumption act a@E sA& a.
Gen. Ewing, in the House of Representatives,
Nov. 20, 1877, sald r,v
If we were wholly out of debt to Europe, if
our foreign commerce hoated under our own
flag, if there were no system of absenteeism
among our wealthy CLASSES depending their
wealth abroad, resumption in gold, or even
gold and silver, would be- i'm possible on our
present volume of paper currency for many
| years to come. x X X The national banks.
| the gold rings in New York, the desperadoes of
| Wall street, the money kim as of Europe, to
whom we are financially. enslayed then will
present the greenbacks for redemption and de-
| structiop as fast as the gold can be paid over
the counters of the treasury ~ I SJA1&
| Senator Coke, in the United States Senate,
| May IA, 1878, said: VII @P "a y,
! SIT ispbetter, Mr.. President, that we bide our
time and turn back from the frightful abyss of
ruin which yawns across the pathway to re-
sumption. The experiment, must, end in fail
ure, and must ingulf the country in q lower
deep of misery than it has yet fathomed. TIE
| b111ly tho 70 uot 10 &a,,,J