, 1873-11-22
Of tlohe s'prairio aohoonorB'' often in tralnn of
o score or more.
It bohooyoa Chicago mt to DO bohind st. Louis
in kooping paco with This " troat Of plonoerr,,'
D. g, DnooxB.
THE FINANCIAL PROBLEM.

Views OF Senator sllcrman-.LcgiaIa-
tive Action Which 1To E'rnposes..
Necessity for specie ueesuinptlon,
ind H1ow to Esring 1t About. ~
Washington <Sou. 1o} ce.rrspondtncs ~ thu sets Fort
. 3f,nes.
sei,ator Sherman, Chairman Of tho Bonate
few days in this city. and to-day gave tus to q corTe.
apoudont Of the 1tmes M explanation OF lis
ylors on tho subject Of tho financial legislation
lkoly to como bofore CongroHa These yiows
are In substance az follown:
Mr.. Sherman Ia In favor Of q Law which will
authorize d convertible por cont United stateu
bond with the right. in tho Government to an
sslternative rodomptton either in coin or bonds.
at 365 por cont which has boon suggested by
Gan. Spinner aud others, ia too low. The prac-
tca failure to negotiate tho Unitod Statoa bonds
IN Europe ut and ~ por cont would seom to
eloae tho, argument as to tho proprioty or at-
tompt to issue bond III this country At 9.o5.
The average ratio Of comnlurcialintoroat through
out tho country Ii 8 -por cont, aud no bond can
20 t,,1 i1sued' or haH boon iaaaod ct lower rate
loan vas negotiated in Europe at s per .oont,
antaoze nio' gt.toa nov ~ bGnd to 6s Hsqed tho
which should mark the progress to specie pay-
menta BY providing for provisional redemntinn.
should bo In iaolf 50 intrinscay valuable that It
vsue vGas would % nos BY N nnd 5 e ge Such
3.o5, but probably would bo by rate Of nor
cont. Mi: Sherman believes that If as long aeo
| - 1868, nhen tue aubtect was first proposed.
Congress had authorized United statcs notes to
be received for per cent bonds ut par, We should
| have long Binco been at specie pnymcnsg mis-
notes, when received, could DO paid OUT again to
moot current o1ponsos and for the purchase Of
bonds. II would bo similar reissue Of notea
to that which is praotced by tho Bank Of
England, our circulation bolng fixed Ut four
hundred millions. In this way, when our s 5per
= bonds ws,S sgsso worth Par in e 70 sho
orcdis Of tho country would havo brought cur
ronoy to q par with gold, exactly as it has
brought all forms of bonds to par, and even
bo contracted would depend entirely upon the
amount Of currency necessary to conduct tho
busineas OF tho country. It seems certain in
Wow Of tho commercial condition ct the country,
s4oooooooo, could DO maintained III circulation
on specie standard. In yiow Of tho large TO-
eoryoB that are needed by tho banks, and OF tho
gold reserve re Of tho Treasury, and oi tue conf
mont, it is improbable that, wien the curronoy
should hare been brought to par through tho
advance OF this new convertible bond any con-
eidorable sum, except in possibe case Of panic.
would be presented for redemption.
!, B1r. Sherman is confident that such q plan
would secure tho elasticity Of tho currency
which has 60 long boen desired, and would pro-
yido for spoeio payments, without commercial
|
Mr. Sherman aro practically tho samo as they
were last winter. Ha consttora that the restora-
, tion OF tho currency to specie standard is
; tho most important subject for Congressional
y y TINT such Legislation would now be both timely
md practicable. Tho logal-tendor notes have
: neyer been 80 nearly at par With gold as now.
It ia essential to the business prosperity Of the
place our currency upon the solid basis OF the
Forld'B money, and redeem our national obligs-
tions. It Is timo to remove from bualness tranB-
upon iluotunting standard Of valuos. Tho dol
lar must be what 1t iB promised to b. of twenty
five and lve.tenths ggammes Of standard gold,
q, nine-tenths fine. 70 tho cost Of everything that
u wo buy abroad is added tho depreciation Of our
Y risk. Tho loss by exchange on all sales abroad
! Is also very great. Wo should seek to rid our
!. selves Of tho folly Of paying in gold aud roceiv-
made ma flo1to Until specie resumption s1 becomes @
Q possible since the suspension Of epecie pay
6 mcnta suaponds all redemptions Of papor money.
!, So long United States notes are irrodoomablo
o National Banking notes must bo irrcdoe,nable.
10 Tho National Banks have now no object to ae-
cure the return OF thoir notes, and both tho
United statos and the National Banks have tue
advantage Of d forced loan from, tho people,
, without inte{eat. and without tho burden of re-
= domption, Tho reserves Of the National Banks.
4 | for al purposes OF redemption, aro q pure 1c-
q tion. The public debt Of the United States, in
2 the form OF United statos uotoB, should be
% mado as valuable as the gold which it promises
to pay.
In connection With this plan Mr.. Sherman
l. proposes no contraction Of tho currency. ln-
: decd, no would scom to waive tho lseal di1or-
}" ence OF opinion which has existed IN tho Senate
1t Committoo on Finance with regard to tho
: amount Of outstanding legal-tondor notoa and,
70 in connection with the Law authorizing tho issue
y Of this now per cont convertible bond, he
+ would declare that the amount Of tho legal
lar
2, 900 0oo Ho would mako IT lawful FOR tho Score
r. tary of tho Treasury to issue tho aocalled s4f
Z 00o000 logaltonder roservo, but would leave it
10 On the subject Of tho s44,000,000 roaeryc,
10 Mr.. Sherman still maintains tliat the opinion Of
y tho majority Of tho Sonhto Committee on Fl
o. nanco last winter rhich declared that the rlgt
% tonablo position. Upon being Questioned COZ con-
u corning tho rocent drafts upon the roscrVe Sen
9, ator Sherman stated TINT tho Saorotary OF the
r Of tho CURRENCY, The s44,ooo,000 have been
n: n: withdrawn aud cancelled, and cannot,. conHe-
ea quontly, bo roiBsued. But doubtless tho secto-
ID tint tho upitod States Goyern11nent oweB any
in certain sum of money II ho has not in his vaults
% tho moans to pay curront obligations And, n
sH this light the issue Of any portion Of the s43
to the draft necessary might be, explained undel
mt tho general power OF tho Secretary Of tho Treas
RI, ury 10 issue certificates Of indebtedness. l'u
gu this hypothesis tho certificates, or mono,
issued, diffor in no manner from othcr green
bncks aud cannot ba recalled, except by rodomp
:as ton III coin.
,sc hlr. Sherman states that a considerable mum
lo bor Of officers Of prominent benks With WHOM
th ho has conyeraed haYe indicated Willingness tt
u, gotiro tloir notes, and giyo up thotr crcnatoll
as thus Withdrawing their bonds. II there ls to bt
s., no approach to specie payments, aud the cn1on
81 cy ia to remain permanently irredoenahle, there
.as ia Mr.. Bhornlnn thinks, no reason why 81 tn
Ia, I currency should not be Issued by the Unitet
100 States, and no reason why any Of it should b
M issued by. banks.
- There Ia no reason for tho existence of bank
ed Of ISSUE when redemption in coin is not con
ns tomp]atod. Thore IL no reason why bank
al should enjoy tho profit Of circulating notes
on thoy do not hayo tho burden Of lodeonini
~ them.
~ ~ Mr.. Sherman, during his recent visit IN th
~ Wpgt, discovered thut n1any psom!ncnt mel