Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-08-01
From the New York Tribune
The A IL & of Finance.
H..
TnE LEGAL TENpER.

| Every lcga-tender bears on its face these
words '''The United States will pay to bear
er" One Dollar. or more. That is promise
of the people. In resumption they keep
ing that promise. The bit of paper is a note,
| and resumption is its payment. The people
| pay because years ago they borrowed from in
dividuals gold, or its equivalent in bread or
| bacon, clothing or shoes, tents or medicines,
| IRON lead or powder, or other things for the
defence of the nation If the original lender
| sold the note, another person advanced to him
| the value due. having faith that the people
| would yet repay in full. SO the note passed
from hand to hand at each transfer some new
| person accepting the claim against the people
| in place of the property or value paii o> or to
| the previous holder. II passed because the
| people had declared, by formal act of their
| Congress during the war that they would pay
what they had borrowed In the act of
| March, 1863, they rcpcatedthe solemn pledge
of the public faith, though not ready to begin
oaying or to fix n day. In the Resumption
Act of January, 1875, they fixed day, and
! gave formal pledge that after January /.
| 1879, the United States would redeem any of
its notes if presented in sans of not less than
$50 at the treasury in this city. When re-
sumption came, the people began to pay back
those who had trusted their promises. Re-
| demption Of note at the treasury is really Il
payment for the food, clothing and arms sent
to the soldiers who ceased fighting fourteen
years ago. Behind each note there is a most
sacred debt. Refusal to meet it would be
shameless and foolish.
Less than year ago, leading bankers said
they would give S50, 900 to have the head Of
the line at the treasury doors on the day of re-
sumption. Because the government had in
hand less cash than it owed, they thought its
store would be quickly drawn out. But be-
fore the day came, the government had made
| its notes so good that few holders wished to
! be paid. In four months from January |. only
| 81, l25,5l2 in notes was handed in for paw
ment, while S4,l94, lS5 in coin was deposited
at the same office in exchange for notes taken
out. For four months the desire to obtain
notes for use instead of gold was quite as great
as the desire to get gold in payment for notes
| held. Yet if payment of one note had been
refused, the deposit of gold would have ceased
instantly, the demand for payment would at
ouce have grown beyond all limit, and the
| notes would have sold for less than the gold
due thereon The few who wanted the gold for
notes have been able to get it, and that fact
alone has made all the notes as good rs gold to
every holder. Only because the government
began to pay as itpromised, have so few holders
asked to be paid. Only for that reason have
so many holders of coin been glad to lend it
notes even more useful than the coin itself
Resumption is merely common sense and
common honesty applied to tbs debts of a
people. 1t means simply good notes instead
of bad-notes that men are glad to keep, in
stead of notes that men are anxious to get
paid.
Jones and Smith, two farmers, lost their
houses and barns by fire, with their grain and
| hay, their implements and many cattle. They
had to borrow money, materials and help to
rebuild houses and barns to buy implements
and cattle on credit, and even to borrow food
through the long winter, and grain for seed.
In due time new crops gave them some means
of payment. Jones began at once to repay,
with the interest agreed, whatever he had
borrowed. But because he was ready to pay
others were ready to trust. If some took
back the borrowed grain, others, not needing
| it then left it to be repaid on demand. If
| some received their money for things sold or
work done, others preferred to take notes
with interest. If he wanted more money,
many were ready to lend, for he kept his hon
or bright and his credit good. That was re-
sumption; every creditor was satisfied But
Smith, though equally able to pay, held back.
His creditors must wait, he said, until he
could spare enough to pay all alike. His
| promises, he insisted, ought to be as good as
cash to anybody. Presently neighbor
needed wheat or money instead of a promise,
but asked in vain. Then every creditor
pressed holly for payment Men began to
doubt, and would lend no more. Notes were
offered in settlement, but were taken only
| at ruinous rates. So he went from bad to
worse. One poor crop made an end of it,
| the Sheriff seized his land, and Smith went
| up and down railing at the "money-sharks"
the "gold-bugs," and the "bloated bondhold-
ers."
If the people pay in good faith As soon as
they can and as far as they can, their notes be-
come good, and holders are glad to keep them.
Resumption does not abolish United States
notes. 1t was an absurd notion that resump-
ton was scheme of the 'gold bugs" to
force everybody to get actual coin for pay
ments. Every creditor is content with pa
| per that is as good as gold. In no way un-
| der the sun was it possible to get gold enough
to take the place of all our paper. But it
was possible, and has been infinitely cheaper
than any other way of escape from our troub-
les, to make all our paper as good as gold.
| Great Britain keeps paper notes in use, be-
cause it pays gold on demand. France uses
notes as generally as ever, because it has re-
sumed specie payments. Before the war this
country had paper notes in general use, with
out any act making them legal-tender, for
any man could get gold for notes at will A
great VOlutne OF notes now remains IN use,
not in spite of resumption, but because of it
because every man can get his notes paid
if he wishes. Hence no contraction of the
paper currency is caused. Everybody pre-
fers to use notes, if they are good, instead of
| coin. If people should wish to use coin in
stead of notes, there wonld be no contraction
of the currency; in place of every note re-
turned to the Treasury, coin would go into
use. The difference between resumption and
suspension or bankruptcy is not at all in the
quantity of notes afoat, but in the quality.
Suspension makes them bad, for the holder
of a note knows that he can get for it only
what some one else may be obliged to give.
Resumption makes them good, and gives the
people currency which cheats no man, be-
cause every holder knows that he can always
get the gold for his notes If he wants it,
Secretary Sherman's Speech.
From the Gardiner Home Journal.
We wish evey one of our readers would
take the trouble to read Secretary Sherman's