Year: 1879




had declared, by formal act of their Con-


gress during the war, that they would
pay what they had borrowed. In the
Act of March, 1869, they repeated the
solemn pledge of the public faith, though
not ready TO begin paying or to fix day.
In the Resumption Act of January, 1875,
they fixed a day, and gave solemn
pledge that after January |, 1879, the
United States would redeem any of its
notes, if presented in sums of not less
than $50, at the Treasury in this city.
When resumption came, the people be-
gan to pay back those who had trusted
their promises Redemption of note
at the Treasury is really a 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 1t
would be shameless and foolish.


Less than a year ago, leading bankers
said they would give $4,000 to have
the head of the line at the Treasury
doors on the day Of resumption. Be
cause the Government had in hand less
cash than it owed, they thought its store
would be quickly drawn ont. 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 S4,l25,5l2 in notes
was handed in for payment, while 81
194,lSj in coin was deposited at the
same Office in exchange for notes taken
out. For four months, the desire to OBJ
tain notes for use instead of gold was
quite as great as the desire 10 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 once 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 as gold to every holder.
Only because the Government began 10
pay as it promised, have so few holders
asked to be paid. Only for that reason
have so many holders of coin been glad
to lend it to the Government for notes,
and found the notes more useful than the
coin itself Resumption is merely COM
mon sense and common honesty applied
to the debts of a people. 1t means
simply good notes instead Of bad,-noteS
that men are glad 10 keep, instead 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. Ii some re-
ceived their money for things sold OF
work done, others preferred to take notes
with interest. If he wanted more money,
many were ready to lend. for he kept
his honor bright and his credit good.
Tha. was resumption; 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 need
ed wheat or money instead OF promise,
but asked in vain. Then every creditor
pressed hotly 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 bond-holders. -


If the people pay in good faith, as
soon as they can and as far as they can'
their notes become good. and holders are
glad to keep them. Resumption does
not abolish United States notes. It
was an absurd notion that resumption
was a scheme of the gold bugs to
force everybody to get actual com tor
payments. Every creditor is content with
paper that is as good as gold. In no
way under 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 troubles, to make
all our paper as good as gold. Great
Britain keeps paper notes in use, because
it pays gold on demand. France uses
notes as generally as ever because it has
resumed specie payments. Before the
war this country had paper notes in gen
eral use, without any act making them
legal-tender, for any man could get gold
for notes at will. A great volume OF
notes now remains in use, not in spite
of resumption but because of it-be-
cause every man can get his notes paid
if he wishes. Hence no contraction of
the paper currency IS caused. Everybody
prefers to use notes, if they are good, in
stead of coin. If people should wish to
use coin instead of notes, there would be
no currency; in place of every note re-