Year: 1878

Secretary Sherman's success in negotiating
the sale of S5O,00O,OO0 of bonds for gold
puts beyond all doubt his ability to resume
specie payments on the first day Of January
next unless his course is stayed by Congress.
By this arrangement the United States Treas
ury will hold at the close Of this year about
$2OO,OOO,OO0 Of gold against little over
S3O0,0OO,000 of demand notes-a sum fully
equal to all the demands that will in the nat
ural course Of events be made upon 1t. But
few of the notes probably will be presented
for redemption. 1t would be we'll for us il at
least hundred millions could be redeemed
and that amount Of gold 60 into the circula-
tion of the country. There is probably out
side OF the Treasury vaults S50,00O,0O Of
gold held by US. The more of this sum that
is put to use the better for US. But it can
only come into use by the withdrawal Of the
redundant paper currency. It is hoped that
the Secretary will not consider it his duty to
reissue any Of the redeemed demand notes !;
for if they are destroyed 80 much of the
debt will be finally paid and so many of the
genuine metallic dollars will take their place.
Then, for the first time In eighteen years we
shall have an elastic currency always suf1-
cient for the demands Of trade and always
ready at call when the buyers make their
spring and fall purchases. Then the cur
rency will accommodate itself to our needs.
When we want gold we can ship our grain
and other commodities to Europe and get
gold. When we stand in greater need of
other commoditie, we can send our gold
abroad in exchange for those commodities,
sure that it will come back to us whenever
we have the equivalent to give for it.


AS soon as resumption is fully achieved we
may look for revival Of industry; for conf.
dence will be restored. Men will know that
their contracts will be fulfilled in tho same
values in which they are made. The man
who incurs debt will no longer be required
to discharge that debt In dollars which it
takes him twice as long to earn. The man
who lends money will do so with the assur-
ance that he will receive full equivalent
when the debt is paid. That is what re-
sumption means. There will no longer exist
the terrible hardship which at first befell
creditors and is now felt by debtors. There
will no longer be hesitancy in making con-
tracts or entering into new enterprises conse-
quent upon the use of a currency of fuctuat-
ing value. And in order to achieve this de.
srable result no further great hardship need
be endured. Everything is now except In
name measured by specie standard. The
shrinkage Of values has virtually reached its
limit. The further fall of twelve cents on
hundred dollars will be felt by no one.


The only obstacle that can be placed in the
way of our return to the true measure ol
value and the currency Of the world and oul
permanent hold upon them is the interfer-
ence of Congress with the plans of the Secre.
tary or the rejection by 1t of the measures he
is now carrying out. From the present Con-
gress 1t is believed ne further bad measures
may be feared. The Treasury Department
will be permitted to 60 on in the course it has
marked out. But the coming Congress may
be able to undo the good work of the Secre.
tary. The only sure prevention of that evil
is to choose Congress committed to hard
money. The friends Of an honest currency
must see to it that their Representatives are
men acquainted with the financial question
and competent to deal with it in broad and
enlightened spirit.