OCR Text |
Show THE FINANCIAL SITUATION, There are many indications which poiut to the repeal of the specie resumption re-sumption act of the last session of congress by the democratic bouse o( representatives. The failure ot the measure to bring about satf&ctnry results upon our business interests, and the fact that the general depression depres-sion which has existed since the panio of 1873 does not seem to have yet reached its lowest point, appears to be generally acknowledged. The principal argument employed by the friends of the resumption act of 1S75 was that a day fixed for resumption, all business would accommodate itself to the coming event, and its good effects would at once be experienced in the decrease of the gold premium and the improvement of commercial and industrial affairs generally. Unfortunately Un-fortunately this expectation has not been realized. The gold premium has not materially decrnased; on the contrary it has increased and rules higher than it did during a great part of the year 1S75, and all descriptions of business have reached nearly a stand-still. Failures are continually on the increase, and confidence in tho financial revival appears more distant dis-tant and visionary than a year ago. The Chicago inter Uccan says: "Never has there been a moro rapid and sweeping change ot front in political politi-cal affairs than tho ch&ngo in ibe Ifcst few months oa tho question of specie resumption resump-tion in 170. Both republicans and democrats now acknewledgo that resumption re-sumption id ISTy is impracticable. Of course the next question is, what shall bo done with it'.' Shall it be repealed, or am-iridedsj as to appoint some other day moro distant than Jan. 1, lb'"9. Wo think, however, that the advocates of fa is latter course will diminish whenever when-ever they coma to consider iht tho ap-pointment ap-pointment of any specinc day when tee ihango shall bo mido from legal tender notes to gold as the money ol account. rill ba only an appointment f r a crisis. If wo ever reach a specib baiis without ft psnic it must bo by some plan that : will avoid the appointment of any specific speci-fic time tor tho chtDgo. As the house of representatives holds the power to initiate financial legislation, we must look to that source for any change of policy. The democratic congressional caucus are investigating the Bubjcct, and it is said have agreed upon the following compromise platform: 1. The repeal of th ro-callei resumption resump-tion act of January, 1S76. 2. The creation of a "gold sinking fund," r accumulation in the treasury, to be hiJd with a view to resumption. 3. Non-action in relation to the national na-tional banks, savo to retuie to recharler them. The Chicago Tribune, (republican) which haa been a very earnest advo cate of early specie resumption, now favors the first item abyve quoted, but instead of a '.'gold sinking fund," recommends the issue of a 3$ or 4 per cent, interconvertible government govern-ment bond, tho bond to be a legal tender, as well as tbe currency for all debts that may have been contracted before a day named. Tho St. Louis Globe-Democrat is very sorry indeed that the Chicago Trilune "has fallen into the lallacy of attempting to resumo specie payments pay-ments without specie, and is bo appal ltd by the costliness of losiDg the ordinary interest upon gold, that it rushes to the interconvertible bond as a preferable substitute." A committee of fanners of Illinois have adopted a platform of this character, char-acter, for the approaching campaign in that state: Down with the. Wiki. Greenbacks in placo of bank nte, the same to bo tendi-r fjr all debU, fxct'pt government govern-ment btnds eiprosly payable in g'!d. )'.pwl uf tho Mierman ro-ump'.ion acl, itiiiriMntcly and unconditionally, A tilT lur ravonu-j only. The New York board of trade has memoraliif-dCOIli;rt3i3 for tue r(.pea of tho specie resumption net, and tho issue of fcjO.Ouu.otjQ ol United .States bouds bearing interest at tho rate of 1 3.G.J-1IX) per cent, per annum, or some lower rut", convertible, at the pleasure- of the holder, into legal tender ten-der notes, provided, however, that tho maximum of legal tender notes outstanding shall, at no time exceed tho present authorized isnue. In the meantime, greenback: clubs are increasing all over tho country, one having been recently organized in the very heart of California the golden slate. The Denver Xeics gives the following as a reason for the general gen-eral abandonment of tho resumption theory at tiiis time. Tli9 countrv has been long suffering from llu liriflncidl depression produced by tho panic ot lSTt, 'hat any eh an go seems for tho better. If we are reduced to such sore straits uiHer a contracted curronny, tho tin-nciorfl reason, let the currency bo expanded. Wo cannot be wore oil', and the chance aro that wo may bo better, Under the prrant system, sys-tem, thvy claim, no where may relief be loosed lor. Kxperieuco hns provi d this. It is now nearly three years since the cause that produced th;o e fleets ran its terrib'e cart-yr, and yet its e fleets remain. re-main. An ond was looked lor thorn in thespring trado of 187-1, but tho spring llowers ot'tba-. year blossomed and faded and fliil tho good timo that was coming failed to come. Then it was tho harvest uf 1K7-I that whs to be tho coruin panacea pana-cea for the flnanciil woes that tho country coun-try had fillen heir to, but tho harvest proved as poworle3 for good as pills compounded on tin aim ilia similihus Principle. It was the sanio in 1S75. "irst the spring, and then the fall was to bring relief, and neither did it. Ii follows fol-lows then, as a matter of course, that 1870 will equally bring no relief unless a new dopnnure is taken in tho country's financial pthcy. The action of tho political parties in their forthcoming conventions will be framed largely upon tho financial question, and the views of candidates upon this subject will have to be closely considered. It is likely that neither of the conventions will pronounce pro-nounce for resumption on any fixed day in the future; but there will be some nice adaptation of language by the platform-makers to dodge the actual question, in order to satisfy both hard and soft-money men. The financial legislation of congress, whatever it may be, will have a large effect upon the election of a president. The present outlook is that ,tho soft money advocates are gaining strength, especially in the democratic party, and that the convention will be managed in that interest. |