The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-18

raScallty but q "plaln business tranSactlOn.
Senator Sherman ON Specie Payments
The chairman of the Senate Committee on
Finance, Mr.. Sherman, has reported bill
from the committee, as a substitute for the
Buckingham bill, to facilitate specie pay
ments and to regulate the currency. The
Senator made an elaborate and well-consid-
cred speech on the occasion. The bill pro-
vides for the return to specie payments on the
LIST of next January. The Secretary of the
Treasury is authorized AND required to pay on
demand from that date, at the Office Of the
Assistant Treasurer in New York, to
any holder of United States notes
to the amount of one thousand dol
lars or any multiple thereof, in e1-
change for such notes, an equal amount Of
the gold coin of the United States, or, in lieu
of coin, he may at his option issue in ex-
change for said notes an equal amount Of
coupon or registered bonds Of the United
States, in such form as he may prescribe and
of denominations Of fifty dollars or some null
tiple Of that sum, redeemable in coin of the
present standard value at the pleasure of the
United States, after ten years from the date
of their issue, and bearing coin interest at
five per cent per annum; and the Secretary of
the Treasury may reissue the United States
notes so received, or, if they are cancelled,
may issue United States notes to the same
amount, either to purchase or redeem the pub
lie debt or to meet the current payments foH
the public services. This is remarkable and
novel plan Of reaching specie payments.
First of all, no sum less than a thousand
dollars in United States notes, or greenbacks,
will be received at the Treasury, and, next,
the Treasury Department can, at its option,
either redeem these notes in coin or in bonds
bearing five per cent interest. Where are the
specie for their notes? Then, if the Treasury
has not the coin or should not choose to use
it, it can take up the notes with bonds. We
do not see any guarantee of specie payments
in this. The great object is to get rid Of the
legal tenders, the best currency of the coun-
try. This is the old hobby of Mr.. Sherman
and the school of fnanciers to which he be-
longs. But, strange to say, the Secretary Of
the Treasury is to have the power of reissuing
the redeemed greenbacks. Here is seesaw
of incongruities puzzling enough. There is
little prospect of returning to permanent
specie basis under such a system.
But the main object seems to be to relieve
the national banks from the necessity of keep
ing legal tender reserve. The second sec
ton of the bill provides that from and after
the LIST of next July the law limiting the
aggregate circulation of the national banks is
repealed, and all banks hereafter organized
shall deposit as security for their circulating
notes. bonds issued under the authority of this
act. Then, all banks that shall redeem their
circulating notes either in coin or legal tenders
shall be exempt from the requirements under
existing laws as to holding reserve Of lawful
money. That is to say, there is to be no limit
TO national bank circulation, and the banks
are to have the benefit Of depositing bonds, on
which they will draw interest, instead Of hold
ing the legal tender reserve, which is dead
capital. This is another boon to the banks.
which are already 30 highly favored by the
government at the expense Of the people. The
whole scheme is crude, complicated and i'm
practicable. We have no idea that the Treas
ury Department under it can force or main
tain specie payments itself, and there is not
the least probability that the banks can be
forced to redeem their notes in coin. Tho
government even does not impose the obliga-
ton on itself of paying coin for its legal
tender notes when offered in sums of not Less
than thousand dollars and we do not see
either how the Rreenbacks are TO DO brought