Year: 1876

AA0 AhoA1O HcdoulcS PIOpoStu ny the
Democrats in the House while differing in
details have this feature in common: they
propose the repeal of the resumption act.
They all profess to prepare for resumption by
the accumulation of gold; but they nowhere
name date for resuming specie payments,
leaving that question to the caprice of Con-
crosses and Secretaries. Accumulation of
gold is step to resumption, and so far these
Democratic measures are correct-correct
but superfuous. The Secretary OF the Treas
ury already has the power, and is now exer-
cising it, to hoard gold. By the sale of bonds
he can accumulate as much coin at least as
he is required by the bills of the Democratic
Congressren to put aside. The bills give
him no new power, impose no new duty,
provide for no greater. revenue. Indeed they
are drag weight to him rather than spur.
He now feels it his duty TO collect enough
gold in the treasury vaults to meet redemp-
ton in 1879. They give him an indefinite
number of years for preparation. He can
take thirty years if he wishes. Certainly
they do not stay his hands by repeating the
pledge of the act of 1875. That repeal, con-
fession that the United States is either unable
or unwilling to begin the payments of its dis
honored notes on the date it has fixed, will
not strengthen the credit of the country, nor
facilitate the sale of bonds by which gold is
to be accumulated. Nor is the provision re-
quiring the banks to retain certain amount
in coin of any great practical value. Notice
has already been given to them that they
must make provision for resumption in 1879.
The new bills withdraw that notice, inform
the banks that they need take no steps for
resumption in three years, that they may
neglect their precautions, and at the same
time give them no new power 10 get coin.
No power is given that the act of 1875 did
not give. The only new thing done is to
withdraw the notice to all concerned to regu-
late their affairs in view of the change to be
made in the circulating medium by resump-
tion. All these bills are in effect notices that
resumption is indefinitely postponed.


The accumulation of gold is a necessary
step to resumption, but not the only step re-
quired. Resumption by that method alone
is slow and costly. 1t requires the treasury
to acquire and hold vast stock of gold
sufficient for any contingency which may
arise, TO meet any demand which can posi-
bly, be made upon it. The truth is contrac-
tion must go hand in hand with the accumu-
lation of gold in order to bring about resump-
tion speedily and easily. The present cur
rency is redundant, and specie payments can
not be maintained until its volume is materi-
ally reduced. Substituting gold for portion
of the paper currency now in use will not re-
duce its volume. There will still be too
much currency. The gold portion, in accord
ance with the established laws of exchange,
will take wings to itself and fly abroad, while
the paper portion, which cannot be exported,
will remain at home, undminished in vol
ume. The expectation of gold will continue
until the currency shrinks to its normal linn
its. But if the currency be no larger than
the needs of legitimate trade require, gold
and paper will circulate side by side in safe
and proper proportion. Hence the necessity
for the contraction of the redundant paper
currency. The matter will be helped little
by substituting gold for portion of the pa
per. The redundancy is as evident as before,
and contraction will be effected. much to our
loss, by the operation of the natural laws oi
finance, by the withdrawal of gold from the
country until the currency is reduced to mod
crate volume. We must contract the volume
of the circulating medium by the withdrawal
OF either:paper or gold. 1t would be Ia
mentable conclusion to have the great sums
OF gold which the treasury is to accumulate
through long years and by much labor, flow
out of the country as fast as they are paid out
from the treasury vaults.


Objection may be made that the resump-
tion act of 1875 does not provide for contrac-
tion. Then make to it the necessary amend
ments, but do not do away with the only fea-
ture of it that is of great value, do not pass a
bill preserving all the weak provisions of that
act and repeating the only strong one. Re
duce steadily the volume of greenbacks until
there is demand for gold to swell the con-
tracted circulating medium. Then specie
payments will come easily, and without the
necessity of vast accumulation of gold in
the treasury vaults. But this course does not
meet with the approval of the Democratic
congressman. The aim of Democratic
Craftsmanship" seems to be now as hereto
fore to break every contract which the gov