The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-08-21


cStcd in the public welfare to NIL all p'ibilc
offices. LEWIS T.. 1iM:IlE.
.lmciia county, Va. August IS, 1877.
|
Secretary Sherman Explains His
Financial Policy.
MaxsrIELp, ONO, August 1I.-Sccrctary
Sherman. who is spending fcw DAYS ut ms
home. in this city. addressed large assem-
bly, OF his fcllow-ctiZens this evening upon
the general policy Of President llayc>'S all
miniStration. He spoke substantially a fol-
lows on one question
TIE QUESTION OF SPEClE-rAYMENT'
What Go YOU mean by this phrase: Is il
that we are TO have no paper money Ill cir
cuation? II so, am Is much opposed TO
il as any OF YOU. l. it that we are TO retire
our grecnback circulation II so. am OPP
posed to it, and have often 50 said. What
/ mean by spccic-paymcnts il simply that
Dapcr money ought to be made equal TO
coin, so that when You receive II it VIII buy
as much beef. corn, or clothing rs coin. y
deprecialvc paper money cheats and robS
every man who receives it OF Il portion OF
the reward of his labor or production, and
in all times it has been treated by statesmen
as one OF the greatest evils that ever hcfcll
4 peopc. There are times when such
meney i unavoidable, rs durin" war
or treat public calamity: but it has
ALWAYS been the anxious care OF statesmen
TO return again to the solid standard OF coin.
Therefore it is that spccic-paymcnts, or n
Specie standard, is pressed by the great body
OF intelligent men who study these questions
Is an Indispensable prerequisite for steady
business and good times. Now. most OF YOU
will agree to all this. and will onlv differ rs
to the mode, or time and manner. Gold
and silver, or coined money. hay" been
proven by all human experience to be tic
best possible standards OF value. and paper
money is simply Il promise II pay such
coined money, and should be made ard kept
equal to coined money, hv being convertible
on demand. Now. the question Is rs Ia The
time and mode ~ whic! this ma?
he broaeht about. and on titS sub
ject no iIEln ShoId be daGmatic or
stand without yielding; upon Il plan
OF his own. but should be willing
10 Give and take, securing the best cNpc-
dcnt that public opinion will allow 10 he
adopted. The purpose ana Obligation to
bring our paper money to the standard OF
coin have been over and over again an
nounced by acts OF Congress and b. plat
forms OF the great political parties OF the
country. The Secretary OF the Treasury *
tain the redemption oil all United States
notes presented ut the Treasury on and
after July. 1879; and for that purpose he Is
authorized to use all the surplus revenue.
and TO sell bonds OF the United States bear
iur four, four and one half, and five per
cent. interest 1T par in coin. it i this law.
called
TIE RESUMPTION ACT.
now so much discussed in the papers. that
imDoScs upon the office hold most difficult
and important duties, and without replying
TO any attacks made upon ME, am anxious
to convey to you personally what | have
done and must do in obedience to the pro-
visions OF this act. IT j. said the law is de-
iective, but If the great object and policy
OF the law is right the machinery OF the
law could easily be changed by Congress.
That resumption can he secured and ought
10 be secured under the law, ii will be my
purpose TO show you, and ! shall not hest
tate to point out such defects in the law
rs have occurred to me in its execution.
There are two modes OF resumption
either TO diminish the amount OF notes
to be redeemed, which is commonly call
ed Il contraction OF the currency, or by
the accumulation OF coin in the Treasury
to enable the Secretary to maintain reslrmp-
ton. The one practical defect in the law
is that the Secretary is not at liberty to sell
bonds OF the United States Tor United States
notes, but must sell them for coin. As coin
is not in circulation among he people, he is
practically prohibited from selling bonds to
the people except by an evasion OF the law
or through private parties. Bonds are in
demand, and can readily be sold ut par in
coin. and still easier, at par or ut 4 premium,
in United States notes. The process OF
selling for United States notes need not go
far before the mere fact that they are re-
ceiyable for bonds would bring them up to
par in coin, and that is Spccic.paymcnts.
But Congress refused to grant this author
ity because it would contract the cur
rency. To avoid contraction it provided
that national-bank notes may be issued
without limit as to amount, and that
when issued United States notes might
be retired to the extent OF four 1ifths
OF the bank notes issued. This was the only
provision for rcdceming United States notes
that Congress made or would make, and
this it was supposed would reduce the United
States notes to S300,000,000 before January
|, 1879 The actual experiment only proves
the folly OF the cry we had for more money.
The result was that under free banking the
issue OF circulation has been far less than
was expected, and therefore the reduction
OF the United States notes was less. Still
there was some reduction. GreenbackS
have been retired under the act OF january,
1875, to this time to the amount OF 2,905,-
700, and near S29,000,000 OF circulation
were issued to national banks. Since the
1st OF March last the reduction Of United
States notes has been So, 145, 2G4, and the re-
duction was preceded by new circulation
issued to banks amounting to near $1,000, 900.
This is the only reduction OF the currency
made by the United States. The national
banks are ct liberty TO retire their cur
rency rs well as to increase it, and
this has been done by them since JAM
uary /, 1915, to the amount OF $50, 624.Gl
But the reduction was guided by The in
terests OF the banks. There are now depo-
sited in the Treasury, by private corpora
tionS, banks, and individuals, S3i, 10000 OF
United States notes. or this there were de-
posted by national banks S44, 450,0 900, and
they have on the cash reserve held by them
$40, 900 more than the amount required
by law, clearly showing that there is no
want OF currency when demanded for the
requirements OF business. Since January
l, 1877, the United States has issued S34.-
236, 600 of silver coin, and redeemed with
that 81, $3.50, 900 Of fractional currency, and
also holds SS,160,S5S OF United States notes
for redemption OF fractional currency still
outstanding. In this there is simply sub
stitute of coin for fractional currency. 1t
was an error to make the retirement OF the
United States notes to depend upon the
| Issue of hank notes The two Ind M rela.