Year: 1870




namely, when and how Isl resumption or spe,io ~
nv the Treasury and the banks 10 be brought ABOUT
NAV be taken for granted that everybody no"
resumption as desirable in ITSELF and as ohy q''0'
Of method and time. We hear no more OF letheI' "o,
or wood answering for money stamped with the sea-
OF the United States, Just ~ well rs gold OF hNer anu
II probable that even Cen Butler tenacious as ne 49,
has abandoned his ingenious scheme OF making green
backs and bonds ntroconvertble 10 all eternity but
never payable with the general conviction OF the I'M
porance and desrabity OF resumption there are now
ever many opinions tO when and how II shouid take
place The lealone policy may be said 20 have the most
adhercnts. These say, We have had eood dea u
financial cgsaton OF late, and we want time Tor the
effect of IL 10 develop so FAR all is going well, anu the
premium on gold is constantly working down but let US
have peace until the country digest what we have
already given n. Besides we shall very hkey get ITO
specie payments without! egslacn blythe mere decline
OF gold.


In answer to this the who hold positive opinions
say: However near the value Of gold and currency may
Approximate they will be Interchangeable unt Con
gress makes them So for the people will have no conn
dence that the steps gained may not be lost by some
combination OF specuatOrs therefore, AZ the premium
is likely to be at any time forced up without warning
the country reaps little benefit from the low rate now
prevailing all prices being based upon the extreme upper
limit which there is any danger OF the premium going
II could what we have gained, and make u
perfectly certain that gold would not go above no. we
could afford wait another year before taking any posi-
tive action.


When We come 10 examine the different methods Of
resumption proposed In Congress, md the number
not large it two years ago. most OF the
crudes and absurdies that characterized thought in
this direction having disappeared that all the schemes
broached may be said to possess some sensible fea


ures Senator Sumner proposes to first stop the fabrca
ton Of any greenbacks and fractional currency,
then to retire gradually the fractional currency so as TO
get rid OF it within year. and 10 commence at once re-
tanning in the Treasury the gold interest due the banks
on the bonds deposited security for their circulation


in order to make gold for them to resume upon
The actual resumption by both the Government and the
banks he would have take place some time in 1872.
Senator Cole would have greenbaoks receivable at par
for all duties on imports after June 80, 1871 which, he
thinks would make them worth much as gold, and
make resumption mere matter OF FORM This plan in
modified FORM is proposed by Mr. Ingerso in the House.
and is understood to have Gen Schencks Endorsement
The House idea is to begin by receiving onetenth OF
customs dues in greenbacks and TO increase the amount
from month to month and the same idea was fore
shadowed by Senator Trumbul in speech last Fall.


Senator Sherman Chairman Of the Finance Committee.
objects propositions for diminishing the gold rev.
OF the Government, violation OF the loan laws,
which pledged the receipts from customs for the pay
ment OF the principal and interest Of the public debt IL
deprived Of its certain gold revenue from duties on i'm
ports, he thinks the Government might find itself com
PEELED to buy gold in which its credit would be
seriously impaired. Gen. Garfield believes that larger
share Of the burden OF resumption should be
shifted from the Treasury Vito the national banks,
as a preliminary step. There are now s4OO,0OOOOO
of greenback circulation and about S3O00oO Of bank
circulation. He would gradually extend the banking
system and contract the greenback currency by cancel
ing every month a certain amount OF the latter and
issuing equal amount OF bank providing there
should be demand for It, and to keep up the process
until the Government gets entirely out OF the business OF
bankng the redemption of the greenhacks TO take place
upon gradual scale, increasing one per cent month
until they brought up to par Senator Summers plan
OF creating a gold hoard for the banks, Gen. Garfield
! would have put in operation at the same time.


The old idea OF creating plethora Of gold in the coun
try by placing the Tariff high as 10 prevent the pur
chase Of goods abroad has still some adherents, but
their number is small. Tho contraction plan has also
advocates Contraction it is proposed 10 accom-
psh in of two ways-hrst by authorizing the funding
Of greenbacks in five per cent bonds, and cancelng
them when funded and second by redeeming in gold
at par a certain amount Of greenbacks per month and
destroying them, which is perhaps, the simplest Of all
plans. The general impression prevailing among we'll


informed here Is that there will be no legislation
this session. hooking TO resumption partly for want
OF time, but chiefly because opinion III Congress s not
! yet ripe enough for action.