Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1879-06-14
RESUMPTION AND FOUR PER
CENTS.

/ .
CENTS.
The Republican party seems to
be weakening on Grant, and some
of its most potent elements crystal
izing around the name of Sherman.
The success OF resumption is to be
the breeze to fill his sails, as the de-
mand for "a strong Government"
was to have waited Grant into a
renewal of power. 1t is worth
while therefore to say few words
about resumption and its causes and
effects.
The one agency by which resump-
ton became possible was the capa-
bility of the treasury to dispose of
an unlimited amount of four per
cent. bonds; in other words, to raise
money at a cheaper rate Of interest
than ever before. To this capability |
the two parties both contributed
the Republican party by completely |
destroying the business of the coun-
try, and the Democratic party by
restoring confidence in the perma-
hence of the Government. Public
attention has not been sufficiently
called to these two positions, nor
can they be adequately calculated
in a single article; but something
may be- done even in our at present
restricted columns to place them
before the public.
Among sound political economists
low rate of interest for Govern
ment securities has been never con-
sidered an indication of national
prosperity. In ante-bellum days,
when England was borrowing
money of its subjects at 81 per cent.
and the American Government
paying per cent, though its credit
was unquestioned, nobody pretend
ed that England was more prosper
Gus than America, that the great
body of Englishmen were better off
than their American descendants,
but the real reason of the difference
was the greater activity OF business
in America than i'm England. The
unlimited extent of those fields for
the investment of capital which the
vet INFESTED resources of the coun-
try supplied. Men were unwilling
to invest in Government securities,
not because they distrusted the sta
bility of the Government, but be-
cause they could do better with
their money; they would not lend
their money to the Government at
four per cent. when in almost any
department of business they could
make eight, ten and twelve per
cent.
English statesmen well know that
when there is a depression in man.
ufacturing and commercial indus
try there is at once a rush for con-
sOLs, which rise in the market at
such times. Capital must be in
vested in some way or other, and if
business becomes difficult or impOs-
sible, money is locked up in Gov
eminent funds, and again, when
business revives, there is a DISPOSE
ton to sell out these funds for the
purpose of making more profitable
Investments, and the demand for
the Government securities proper
tionately falls off.
Exactly that state of things has
been witnessed in this country in
recent times. No one can be ignor-
ant of the depressed state of bust
ness in all departments which has
for long time brooded over this
country. This was the work of the
recently dominant Republican par
ty-by their oppressive imports on
our commercial and shipping in
terests and by their arbitrary
contraction of the currency
they annihilated all other fields
for the investment of capital, except
the purchase of Government bonds.
On the other hand, what the Dem
ocrats did towards it was to restore
mems faith in the stability of gov
eminent. So long as Legislatures
elected by the people were elected
from capitols by military officers
so long as elections were held with
cannon pointed on the city and its
people; so long as nOn-elected
President was inaugurated under
range of artillery and small arms,
public tumults, Instruction and
revolution were constantly antici-
pated, and a Government surround
ed by such anticipatiOns does not
readily sell its bonds, but when the
Democratic party gradually became
predominant in both houses of Con-
gress, men gradually opened their
eyes to the fact that the reign OF
terror was over; confidence returned,
and all other fields for the invest
ment of capital having been ami
Inflated by the contraction policy
and the present enormous tariff on
imports, John Sherman's four per
cents came into play; they were
thought a safe investment, and
there was no other, safe or unsafe.
This is the true history of the four
per cent. bonds and of the resump-
ton which they rendered possible.
Readers can judge which party has
the most reason to be satisfied with
its share i'm bringing it all about.
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FALSE AND TRUE ISSUES.