Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-07-24

tHc SAFE ot per cents. LOT TeIunulnS pur-
poses, and this policy steadily pursued to
the end. During the process coin constantly
declined and the sale of per cent. bonds
steadily increased. In 1873 we sold $50, 900
600 - per cent. bonds at a premium of
l2 per cent, and SIPS, GS5, 100
per cent. bonds at par. Ninety million
dollars of the proceeds Of bonds sold in 1871
and 1873 were held in coin as II part of the
resumption fund.- and the balance was applied
to the payment of Il per cent. tve-twenty
bonds At the end OF the year 1873, and be-
fore Congress had convened, we had thus ac-
cumulatcd, including surplus revenue, a coin
reserve of Sl3s, ,0OO,0 900. Resumption had
practically come one month before the day
fixed by law, as quietly and TRANQUILITY as a
vessel would float from the river into the
ocean. Our notes were no longer at dis
count. They were at par with coin. The
same money was paid to the laborer, the
farmcv. and the bondholder, and all as good
as the best coin issued from the mint. On
the LIST day Of January, and on every day
since, both gold and silver have been ready,
and have been paid to every holder of Il
greenback who desired it, So complete was
the success of resumption that all the notes
presented for redemption since the lst Janu-
ary. and prior to the lst of July amount TO
S1.916, ,69S, while gold coin has been freely
deposited in the Treasury in exchange for
nited States notes. The total amount of
gold coin and bullion in the Treaaury on Tie
I'd day of January. 1879, was Sl35, ,3S2 $3.50. A..
On the first day of this month the amount
of such coin and bullion was Sl35. i36, IA 81 :;
and the amount of silver dollars has increased
from SIG, ,G97 1893 in January to S2s, l41 ,35l
July |.
The law provided for the redemption of
United States notes only at the sub-treasury
at New York. and captions critics. who said
that resumption was a sham, objected that
notes were not redeemed in other parts of the
United States. But, in fact, resumption did
occur in all parts of the United States; and
in the far West, and in California. green
backs rose to and are now at premium. To
remove the complaints of few persons, that
they could not get gold coin in Phladcl-
phia and other cities the Treasury has sup
piled the demand for gold coin wherever it
has arisen. but United States notes being re-
deemable in coin are much more conven-
lent for all the uses of life that, in practice,
they are preferred everywhere. and are now
in full circulation and credit, not only in
every part of the United States. but in
every leading European city, and in the
islands of the Pacific ocean.
REsUMPrIoN Nor AIDED by CONGRESS-.
Noassistance whatever was extended by Con-
grcss in aid of resumption. On the contrary,
it increased the minimum of United States
notes. upon which resumption was to he
maintained. from $500. .OOO. 900 to S3i6 6Sl =
0l6. 1t recently required the redemption of
fractional coin AS well as United States notes
BY pending measures of the most dangerous
character. and by continual agitation. il great
~ disturbed the public credit. and made the
task of the Department much more difficult
and its means much less. Ii reduced the rev.
enue from taxes on tobacco to the extent of
eight or nine millions annually. 1t largely
increased the aggregate of appropriations.
The annual appropriations for the fiscal
years ending June 30. 1878 1879 and 1850,
exclusive of appropriations for public debt
and other permanent appropriations were as
follows: ..
1873 Sll4.069 Asa. l3.
1879 l46 .30i 800. u.
1850 l6l sos, ,934 90.
While Congress reduced the revenues and
increased appropriations, it neither levied
new taxes nor gave authority to borrow money
to meet these extraordinary demands. but
used the snking-fund which was specifically
set aside by law for the reduction of the pub
lie debt thus arresting the established poll
cy of the republican party of yearly reducing
the debt.
In the last session it appropriated S26, 500,
900 for arrears of pensions, debts due a most
worthy class of citizens, but provided no
means for their payment 1t applied for this
purpose the fund in the Treasury provide | by
law for the redemption of fractional currcn-
cv, leaving this form of debt to be paid out
of current revenue. Fortunately. the in
crease of revenue caused by resumption and
revivng industries will. hope, enable the
Treasury to pay every dollar appropriated
for arrears of pensions by the lst of January
next, without any other increase of the pub
lie debt than that caused by the temporary
application of the fund for the redemption of
fractional currency. The ability to pay these
demands is largely due to economies effected
in collecting the customs duties and other ex-
ecutive savings.
Results OF RESUMPTION.
Let us now see what have been the legiti-
mate results Of resumption.
Since the lst of January, and prior to the
lst of July 1879. we have paid about 81,
900, 900 coin certificates with United States
notes, and have paid Sll9, 5Ol, 1923 United
States bonds with United States notes OF
the enormous sum of called bonds paid by
the Treasury. so far as is known. not dol
lar has been demanded in coin, and thus by
resumption we have paid, and are paving dai
ly, the fve-twenty and tcn-forty bonds in
currency,
Prior to definite preparations for resump
tion, it was impossible to sell per cent
bonds of the United States at par in coin
After such preparations we were able to sell il
1877, S15.O00000 four per cents, and in 1878
SIPS ,6s5, ,450; but the moment that resump
ton was complete the sale of bonds increased