Year: 1876

In view of the demand in its plat
form for the repeal of the act provid-
ing for the resumption of specie
payments in 1879 the Democratic party will
find it impossible to persuade the people that
it favors return to the use of the currency
of the world and to sound financial system.
The assertion by the Democrats that they
ask the repeal because they believe the bill of
no effect as assisting resumption is false pre-
tence. Did they believe that. they would
make the attempt to strengthen the bill by
supplying legislation necessary to carry out
the pledge contained in it; but resolution


offered by Mr.. Hale setting forth the duty of
Congress to provide such legislation was
voted down by the Democrats in the House
almost at the opening of the session. Thus
they refused to take advantage of an opportu-
nifty to remove anything in the act which


hindered resumption and to make amend
ments which would facilitate that object.
Again. on the Sth of February, Mr.. Kasson
introduced resolutions declaring that Con-
gress could not issue legal-tender notes in
time of peace and that all legislation ought to
be framed to bring about resumption and not
imitation. Upon these resolutions the Dem.
ocrats refused to permit the House to vote,
and put them out Of consideration by refer
ring them to Democratic committee which
hys not, to this day, reported upon them.
This action is conclusive proof of the falsity
of the Democratic pretense that the act is
opposed because it is an obstacle to resump.
ton. On the contrary it is objected to be-
cause it pledges the nation to return at a
fixed date to the use of specie currency.


But the utterance of the Democrats in
their national platform in declaring against
contraction conclusively shows that they
have no desire to put the currency of the
country upon specie basis. The historical
conditions of beginning and maintaining spe-
Gle payments are well known. The whole
history of the currency in this country and in
England shows that there must be a large
liquidation and destruction of paper currency
before resumption can be undertaken, that
the paper currency must be reduced far be-
low even its average amount before it can be
sustained at par with gold. In 1928 the
Bank OF England had to reduce its circula-
ton one-third before it could resume. In
this country in 1912 resumption could not be
brought about until our paper was reduced
to one third of its amount in 1887 when sus-
pension took place. Even in the brief sus-
pension of 1857 the bank circulation was re-
duced over one-fourth before resumption was
attempted. 1t is absolutely necessary that
the currency should be reduced far within
even its normal volume before resumption
can take place and that there should be from
now on continuous payment of the legal
tender notes. At present we have 800, ,000,-
600 of currency. five times what we had be-
fore the war, and more than twice as much
as we need now. We cannot resume until
we have reduced this currency greatly; and
yet against contraction Democrats loudly cry
out. At this time contraction is easier than
it will ever be again. The present contrae-
ton of business greatly facilitates contraction
of currency, and the idle masses of green
backs can be retired very rapidly and without
injury to business. By opposing contraction,
the only fitting preparation for specie pay
ments, at this.favorable time, the Democrats
clearly show that they are opposed to early
resumption and an honest currency.