Rensselaer Union, Volume 12, Number 2, Rensselaer, Jasper County, 25 September 1879 — What Resumption is Doing. [ARTICLE]

What Resumption is Doing.

No one would have believed, two month&ago, that the practical value of resumption could be so comEletely proved this fall as it has een already. Strong evidence of the usefulness of specie resumption Has been prcvioosly given, and it was expected, that the tall, move-

ment would give still stronger, but no one imagined that a drain of currency from the New York banks would arise of such magnitude as to take from them $6,000,000 in a single week, nor was it believed that $8,800,000 iu gold could be rereived from Europe at this port in the same week to fortify the market against a continuance of the strain. The general failure of crops in En- i rope not only causes the unprecedented test of tii# stretch of the banks, but, through the simple methods which specie payments open to na, provides adequate relief. The situation will repay careful stndy, not merely with a view to wise guidance of piactical operaatious, but as a revelation of economic truth for the instruction of statesmen and voters. The banks ot New York lost $607,800 in legaltenders last week. Within six weeks they have lost $18,174,000, aard this has been only a part of the outflow of currency to the interior. For the sub-treasury has also paid out, since Saturday, August 2, $4,890,011,21 in currency more than rt has received. This date ed because it coincides with that of the bank statement, six weeks ago, and because the comparison thus shows that all the currency paid into the treasury by the banks in answer to the large drafts from the 2d to the 11th, and nearly the whole of the $6,000,000 drawn from them on the Ist of August, have been returned to them, though in exchange for gold which the banks have obtained from abroad. For the banks have gained £224,500 in specie during six weeks, while the treasury has gained $13,409,000. Since the bank statement of Saturday, August 2, the banks have sent into the interior, therefore, $23,064,011 in legal-tenders, and othe r items of the statement indicate that the amount ot bank notes sent out during the same period has been about $1,000,000 in excess of of receipts. And yet, notwithstanding a drain greater already, by about $5,000,000 than the entire outflow from the banks last fall, the reserve has not Icon reduced below the point of safety, and the loans of the banks are now only $10,319,700 less than they were August 2. The extraordinary drain has been due, in the main at least, to the extraordinary demand for American grain and other products in Europe. But that demand has also brought hither the gold to pay for the gfair., and, thanks to resumption, the coin and bullion become almost instantly available as part of our currency. —New York Tribune.