The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1879-09-11
been one of the beneficial results of the panic of
FALLACY OF INITIATION.


| volume OF the currency, Gen. Grant did author
ize the issue of $4,000, 900 of United States
notes that had been retired prior to 1868. This
action had not the slightest effect in alresting
| that panic, but tended rather to impair conf
| dence and cause the boarding of capital. Free
banking, also, was resorted to, and was one of
| the provisions of the Resumption act Under
That act, banking became as free as any other
| trade or occupation, and any amount of paper
money could be issued upon the security of
bonds deposited in the treasury But, although
this privilege was open to every one, scarcely
any banks were organized under it, and an
amount OF circulation greater than was issued
under this open privilege was freely surrendered
because 1t could not be used. Our Greenback
friends would have forced the issue of so large
an amount of irredeemable paper money as to
have lifted out of debt the greatest bankrupt in
the country. They pointed to the wrecks of
broken fortunes stranded along the great ocean
of business, and demanded business enough to
be put at1oat to raise them all into solvency.
1t IS scarcely necessary, at this late day of
the discussion, to point out the fallacy Of these
wild and reckless schemes of visionary enthusi-
asts, who would have flooded the whole coun-
try, destroyed all values and driven the nation
into universal bankruptcy, and compelled it to
return, through barter, to coin again. The
sober judgment of our people has SO often con-
demned this that it is scarcely necessary for me
to point out the inevitable effects Of such an
issue of paper money. Republicans as well as
Democrats shared in the deusions Of the time;
hut Az the discussion proceeded, and the pub
| lie Judgment was cleared the Republican party
did, as it has uniformly done for the last twenty
years, take the responsibility of proposing
definite measure to cure the evils under which
we were suffering. Eighteen months of failure
and disaster had proceeded before the Repub-
hcas could be so far united as to propose and
pass the Resumption act through both houses
Of G0nOrpSS. was 1pTnn60d as hn
edy for the panic. The final judgment of the
| Republican party was that the only proper
remedy was to base our currency on u coin
standard and issue no money in any form ex-
cept that which is redeemable in gold and silver
coin. This central idea had been uniformly
advocated by the leaders of the Democratic
party; but they, as on other questions, finding
the responsibility resting upon the Republi-
cans, and willing to make political capital out Of
any act, however meritorious, that the Repub-
hcans might pass voted against the Resumption
act and thus made a party measure of that
which should have been supported by every
body in the land.
SUCCESS OF RESUMPTION.
But the Republican party took the RESPONSE
bility of the measure, has borne it in the heat
and burden of controversy, and now proudly
points to it's successful execution as one of it's
greatest triumphs That act provided first,
simply for the gradual issue of silver coin to
take the place of fractional currency; and sec
ondly, that, on the LIST of January 1879, the
United States would redeem in coin any of its
notes that were presented at the sub-treasury
| in New York. This act gave full power and di-
recticns to the Secretary of the Treasury to
make suitable preparations for the execution
! of the law. 1t is seen that the Resumption act
did not take effect from its passage, except to
make banking free, and for the gradual substi-
! tuition of silver coin for fractional currency;
while it's main provision did not take effect I'M
| til an. 1, 1879, and no act was done under it
i until April, 1877. 1t was quite the fashion, for
a while, to say that the Resumption act was the
! cause OF the hard times; but Gen. Ewing is,
think the only man who really has pressed this
strange dogma-for strange dogma it is--that
would attribute the panic of 1873 to an act that
was not passed until January, 1875, and was
not even commenced to be put in force in a
definite way until April, 1877, and did not take
full effect until January, 1879
need not give you the historyof resumption
of the croaking and evil prophecies and
warnings of our Greenback and Democratic
friends of it's failure and evil effects. You can
| still hear their warnings in the air; and Gen.
| Ewing, especially, to whom the Resumption
act was like water to mad dog, advocated lite
repeal even in December, 1878, when it was
| practically executed. He could see nothing
fail, no bankrupt Spectator could run away,
but the Resumption act was the fatal cause.
gave the history of resumption briefly in a
speech | made in Portland, Ms, recently,
which has been circulated among you and l
will not, therefore. repeat this part of the story
| Sufficient to say that every step under the Re-
sumption act had tendency to produce easy
times and restore confidence; to reduce prices;
| to advance the value of our currency, and to
| lead us gently, slowly and surely to the specie
| standard. There was not a prophecy of evil
made, as to the progress OF resumption or its
success, that was not falsified When the time
came for resumption every dollar of paper was
equal to coin. The same amount of paper
money was outstanding as before, bat spirit
of trust and confidence took possession of all
classes OF people. Business revived, and pros
perlty again commenced.
THE REVIVAL OF INDUSTRY
Look now over our broad country and note
the contrast between our condition on the 18th
/ of January, 1875 when the Resumption act
passed, and on the 11th day of May, 10W, when
! preparations to resume commenced, and now
on the goth day of August, 1879, more than
seven months after we have resumed Be-
tween these dates the general rate of interest
on public indebtedness has been reduced % per
cent
The value OF exports of merchandise from
! the United States during the year ended June
30, 1875, was 1913, 442,7l1; during the year end
ed June 30, 1877, it was 5000 AIS, 220, and dur
AuR tllH year eIlueu y une oU, 1913, lG was SUU,-
433,2S5, showing an increase over 1875 of 1885,
99O574, and over 1877 of $1O7, 95S, Cos, or II 80
per cent The exports of merchandise during
the latter year were larger than during any
previous year in the history of our foreign
commerce. The excess of imports over ex-
ports of merchandise during the year ended
June 80, 1875, amounted t, $19, seq, 1885, during
the year ended June 80, 1877, the excess OF ex-
ports over imports amounted to 1851 1872 c94,
and during the year ended June 30, 1879, it
rose to 1924, $50, 8l0-sbowing an increase in
such excess of $l13, 1854, TIC, or more than rs
per cent, in two years
The imports of merchandise during the year
ended July 80, 1877, amounted to $451, 1923 1876,
and during the year ended June 80, 1879, to
$445, 776, 475-a decrease of $40, 65t, or l. %
per cent
The excess of exports of specie over imports
of specie during the year ended June 80 1877,
was $685., 1923; but during the year ended
june 80, 1879, the excess of exports of specie
was only S4,70l, AL
The exchanges in the Clearing House in New
York city, and in twenty-one principal cities in
the United States, for the seven months ended
July 81. 1878, amount to $16.61S 9S3, 1888, and
for the same period of 1879, $40, OBS. GAS 955-an
increase of 20.5 per cent