Year: 1875

Resumption.


The result of the late elections have pretty
well settled the fate Of the project of an infa-
tion of the currency. and that project will
probably be abandoned as hopeless. But
while its supporters have ceased from active
advocacy of it they do not relent in their hos
tility to contraction. Not few of them pro-
fess to favor resumption of specie payments,
but they all oppose the only practical meas
ure leading to that resumption. They are all
seeking some way for the nation to rid itself
OF its obligations without paying them. They
all claim that the present volnme of currency
is none too large for the business wants of the
country, and that a contraction of it would
embarrass industry and trade. To the sup
port of this claim no arguments of great
weight are brought. The anti.contractionists
content themselves with saying in many
ways that the country is growing richer, and
that to facilitate the exchange of its constant.
ly increasing products a larger quantity of
the medium of exchange is called for. Just
now an increase of wealth is certainly not ap-
parent. But allowing that we are growing
richer it does not follow that an increase of
currency is necessary. The cheque and
clearing system now in vogue, and the great
extension of banking facilities renders a
diminution rather than an expansion of the
common medium of exchange desirable.
Trade, so far as large operations are con-
cerned, has become in great measure re-
fined and perfected system of barter, and lit
tie money actually passes from hand to hand
in many of its transactions. The country is
now ripe for contraction, for the volume Of
currency evidently exceeds our needs. Even
the expansionists, unwittingly, acknowledge
this. One of their most frequently repeated
assertions is that the Treasury cannot redeem
its legaltender notes because they would
come in for redemption so fast that the stock
of coin would soon be exhausted-that is, the
people would contract the currency TO very
great amount if they only had the opport uni
t..


1t is quite evident however that the m ajori-
ty of the people favor resumption at the ear
liest practical moment, and that in their
view the only way to resumption is through
contraction. There is too much paper money
in circulation, and the only way we can i'm
prove its value is to reduce its amo unit. A
return must be made to healthful system of
values, and we must 60 back to the use of
the acknowledged medium of exchange and
standard of value OF the whole civilized
world. There will be no trouble about the
supply of gold. 1t will come where there is
demand for it, and as soon as it pays better
to keep it in this country than to export it
the metal will remain with us. We should
free ourselves as soon as possible from cost
ly system of doing business with a currency
whose value is never the same for halliday
at time. 1t is well understood now that
the next Republican national platform will
contain assumption plank, and thatt the party
aEa tho administration hold th sracoiSos oa.aa,aAi.
ted to resumption policy this winter. The
measures to be brought to the attention of
Congress will doubtless look to retrenchment
in the public expenditures, the accumulation
of gold and the funding of the greenbacks.
What class of bonds may be chosen for ex.
change for greenbacks has yet to be decided.
The five per cents. are slightly above par,
and are steadily increasing in value. For
these reasons the four-and-a-half or even four
per cents. may be adopted as the redeeming
medium. Whether ground will be taken for
the repeal of the legal tender ac remains to
be seen. Such an attempt wo uld afford in
finite amusement because Of the spectacle
which would be exhibited by those Demo
Gratis who have always declaimed vehemently
against the act. If its repeal were nade an
administration measure they would at once
become the strongest advocates of its contin-
uance. Their situation is not pleasant one
at the best, for if measures for speedy re-
sumption are not carried through the next
Congress, the responsibility will be mainly
with them.