New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-07-24

tNai Through
principle, upon the Government that was defended
against their arms by millions Of our eonnuymen.
Maine that tbey will moi be diverted by divisions IA our
camp about money matters While our olo enen1 ~ NJ
vvlng the lost cause aud is sappng and mining the M"
tioIal Government
FINANCIAL. CONDITION IN 1873.
In the Fall OF 1873 there happened financial panic
ont OF which most economic questions upon whch
we are now divided naturally sprung. We must uhueI
stand the actual condition OF things when TINS occurred
order to discuss with intelligence the measures that
have been proposed and executed, and the questions
that still remain open for decision. Our money then
was paper money irredeemabe in coin and worth ABOUT
81 cents on the dollar. Tue amount outstanding was
larger than ever before Sometimes this has been aus
puted by counting at the close of the war ali
the compOuudinterest notes and 730 Treasury notes
These we're no current meney than the per cent
bonds into which they were converted Both bore IN
terest and were always above par In paper money ana
were held IA investments, not currency TIC amount
of paper money outstanding, excluding all interest
bearing notes, June 80, 1865, was $34722S $50 10
The amount the 30h OF June 1873 Just before inc
panic was $40 440 s63 o. while on the 3Oth OF june
1874 after the panic. 1t was S7S09isOSl H.
Again the rate of interest higher In 1873 thah
before or since Before the panic the body OF the Gov
eminent debt interest at per cent III go!oi ooi
raons in credit paid to 10 per cent; ana ihol
Enthusiastically in the wes-mOrtgaged their farms at
from 10 to IL per cent The current rate OF interest
may be said to have been 10 per cent.
The utmost recklessncss contracting debts was then
universal not only by individuals, but by cites coun-
ties towns, and all kinds Of private corporations II
was an era OF wild and reckless waste and imONuchce
In those speculative times the tonnage OF American
vessels in foreign trade dwinded from 2,379396 in
1860 TO 37S 533 tons in 1873 Wherever we were
brought In competition with countries dong BUSINESS
upon a specie basis, were driven from cTmpeti.ior
bniit here they we're not needed, I'm advance OF settle
nt, SiT,aces were mt up in excess of all possible
tIu4
ing occurred In ali branches OF bnsnts ue s ~
Of rde with foreign countries had been for series OF
wears cadIly against us. From 1868 TO 80 ne T
cess OF imports over exports was S
from 500 10 1873. S354 uJZoO'. am hot a1i
Won tng amount Of private aud corporate lut -
Contracted foreign countries d3rlhE me- c"Is ~
reckless speculation, nut u was pODdby eSHd 70 vi ~
excess Of the balance OF trade against us we en ~
flowed the prosperity Of a prohlsdte WIe WasllnE us
inheritance, or the happiness OF aTuhha'u "i4i' vi
spree. -. 700 .o,,od . holt and nc nv n stroke
parayzed al domestic industry ahu uahNIup1VS "i,
IN n spread from corporations 10 individuals ana prop
NJ hardly worth while for TO enter into the discus
sion OF the causes OF this calamity Honest men NOuu
some 10 tne oyerprOductiOu that followed the waste
OF IN war; some TO irredeenanle paper money bu
admitted by all 10 be undertaking end louEconthued.
il affected regn nations lnuch more more
mar tbc United States, The industries or Great Bllam
We're ,rlyz,d our EARLIER recovery from tins sagna-
non il due 10 our vast territory and undevelppeo re-
sources aud the natural energy OF young ana Vle-
oTous nation.
TIE RESUMPTION ACT.
When Congress met in December, 1873, It undertook
,oAnd remedy for these evils and for year We had
discussions In Congress, the press and among the
peoplc as 10 how best relieve distresses ana re-
store our industries TO solid foundation. In the course
of this discussion the people naturally dlHdeu On the
one hand II was Insisted that the remedy was to in
fate the currency by large increase Of paper money
and with that view twcnty-six millions Of dollars in
limited states notes were thrown upon the market on
the other hand il was insisted vat the 0y nope Ot re-
lief was 10 return to sPegs n2SlI' ana To au'"H'o d"
I'Iuaiv IS75 ana during the second session of
Cougress-e ghteen months after the panlc-the
measure known The Resumption Act was
ad'Uted by a majority Of both branches and ap-
moved nv The PRESIDENT. This was a Republic
can measure, for, though many Democrats n.
yored resumption, yet party discipline and the nope Of
party advauJage induced every one OF them 10 vote
against he Resumption Act. This measure was very
fha silver coin should he gradually issued tie
Gempton fractional currency and the other was that
on January 1879, The National Treasury should re-
deem in CON- any United States notes that were pre-
seuted. lbis act was not 70 take ecl' IN Us meil
provision, uul Ioui ears IO he ualo Va ~ passdhe'
stops were taken by Secretary Bstow, and your dis
tngWsheG IoWnsuh secieeS alUial, i' Ul tuo r"u i
replacement o. fractional currency Dl slNtf Colu, pul
until the spring 1877 material preparation vas or
could well nave made tor the redemption OF United
Siaic notes which continued 10 be deprecated, beng
worth only 50 20 % cents coin widespread feel
would not bring better times and the country cOntin-
ucd 10 suffer the fortunes OF the pane Ul 1870
THE ACT DENOUNCED.
Duriur the whole OF 1870 and 1877 the Resump-
j
absurd notion was put forward that it was the cause Of
the hard tines though no material action had been
taken under It, and the hard times came eighteen
months before the Resumption Act passed All sorts OF
rouhccirs were made of its failure We were told that
Inc Resumption Act was sham; that 1t hindrance
10 resumption; that the attempt TO accumulate coin
would put pits price; that it would be worth $780,
600 to be on the right Of the line on the day OF resump
zion; that resumption impossible; that 10 would
PROSTATE industry; that would stop me SAFE OF Dohus
fl,ar ipfgr ne ID
The bondhOldeis, shy locks, and capitalists -
Inc DC ~ MP pa ~ m q 70 be for resUmpti6n
denounced TIE Republican party because II had made
mo- reuaraton for IT, but instead, had OOstructed II by
wasting our resources and cxhaustug all surplus in,
cone ana because, while annually processing 70 intend
a speedy return 20 specie payments II naP annually en-
acted fresh nindances thereto ~ denounced tue Re
sumption Act oil 1879 as such ahudraucc ana demanded
MIR Ewing. Of Ohio. and Mr. voorhees,, OF Indiana,
with Others, made minority report IN when they de-
carcd that he law for the resumption OF specie pay
euts on the Isl January, 1879, having been enacted
nv tie Keplbhcan party without deh0eratlon III Con-
ress discussion before the people ana neH SO made
0uatc To its object was highly Injurious 10 the
business OF the country and ought 70 be iorh"Hh re-
Mr. Tiiden in his letter acceptance, Endorsed this
speedy TO specie payments, saying; The GOV
eminent Ougnt not TO speculate on us own dsLonor III
order to save its broken promises, winch
stn cOmpels private dealers TO accept at fictitious
par" .....,,-
Twill read some OF the prophecies made by very dis
tinguiscd gentlemen in regard the Resumption Act
General Ewing in the House of Representatives, No
veTnber %, 1877. said:
five were wholly ont Of debt 10 Europe. II our foreign
commerce hOated under d <, II there were no
system OF aosenteesm among our wealthy classes, e1-
yendug their wealth abroad resumption Ia POd,Or even
0ld and silver would be impossible on our present vol
ume OF paper currency TOR many years TO come.
The National banks, the importers, the O4drnsa IN New
YOrk The despeTadOes OF Wall Street. tie money kings OF
Europe To whom are financially enslayed they VIII
present tie reeubaCks FOR redemption and destruction
as fast gold can be paid over the counters OF the
Treasury.
Senator Coke, in the United states Senate, May Ia
1878 said:
Ills better Mr. President, that we bidc tine and