Year: 1878

sENATOK GOKDEN ON REsUMP.


TION.


Senator Gordon, of Georgia, recent
ly in the Senate uttered one of the
most mastery denunciations of the
Republican policy of contraction and
resumption ever heard in that body.
! We think we cannot fill the same
amount of space in this paper better
than to give the following synopsis Of
| it:


! Mr.. Gordon addressed the Senate,
starting out on the proposition that
"Ill-adyised legislation is the prime
| cause of our financial depression 10.
day." He said that during the last
ten years party considerations had
made our financial legislation of
most frightiul character. After the
war, as late as 1868, the North was in
most prosperous condition, and the
South was rapidly recovering from it's
enormous losses during the war. lie
painted picture of general pr0speli-
ty, as was seen before the destructive
policy of contraction began, and
charged that all the disaster that fol-
lowed was due to the unwlse legisla-
ton in that directions He character
lied the act of 1866, providing for the
retirement of legal tender notes, as the
first screw into the coffin of many an
industry, and said it was in obedience
further retirement of notes was repeal
ed in 1868 by unanimous vote in the
House and but four negative votes in
the Senate, This defeat in a combat
not, checked the contractionists. The
next turn in the screw was the demon
citation of silver. The next was 10
pass a general resumption law at a fix
ed date. This law, with captivating
title of specie payments and free bank
ing, was calculated that there should
be no expansion of the currency. That
law -Aas-bee.. productive of greater





on the statute books; not by the de-
struction of the notes, but by driving
them from circulation and leading to
their boarding in anticipation of re-
sumption. The whole policy of the
contractionists has been to build q
structure upon an insufficient base of
gold, to accomplish which, the indus
tries, the currency and every element
of prosperity were compressed to cor.
respond with the narrow base. Sena-
tors discuss the finances as though the
credit of the Government was the on
ly consideration. That was an impor-
tant thing, but the interest of every
house, every man, ami every child
born under the flag was involved, and
the interests of millions yet unborn,
The effect of contraction in this country
has been the same as in England. Eng
land contracted one-half, and at once
wages, land, cotton, and all else fell
one-half, and ruin ensued which last
ed for generation. Across the cham
mel, France, occupying far less fay
orable position, emerging from an un-
successful war, has established finan-
prosperity unexampled in the history
of the world, by a reverse policy.
France, when her war closed, instead
of decreasing, increased her currency,
Lot
ton, thereby keeping alive all her
productive industries. If the example
of France was not enough, turn to It.
ally, who, after pursuing policy of
contraction, came near total prostra-
tioD, reversed her policy and expand.
ed her currency. when magical
change came over her, and her indus
tries at once sprang up. The example
of two kingdoms and two republics
stood before US under opposite poli-
cies. The result of the experiment of
contraction was forseen and foretold
in both England and the United States,
and every prophecy then mrde has
been fulfilled and more than fulfilled.


Mr.. Gordon compared the contrac-
tionists to general who would move
directly to front attack, sacrificing
his army, rather than by longer route
secure the capture of the citadel and
save his army. He thought there were
times when tactics might be sacrific.
ed to success, and could not see why
a man could not as we'll be "saved by
experience as be damned by records"
He held that he had established the
truth of the assertion with which he
sat out, that legislation and legislation
alone had been the cause, and the only
cause, of the terrible and unfathOma-
BILE woe which had overspread the
country. If that be SO, if there Is q
shadow of belief that it is so, shall we
60, in the face of the revelations of
and experience, plunging the country
in deeper distress with a policy which
can only be enforced in universal des-
pair? He believed the day was near
at hand when the truth that contrac-
ton had marked nothing but ruin,
would be admitted by all classes and
by all sections. He did not believe
the Secretary of the Treasury could,
without great hazard to the credit of
theGovernment or the interests of the
people sustain specie payment. He
would have a provisO that, under no
circumstances, should there be con-