The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1877-12-06
THE TREASURY DEPARTMENT.
Synopsis of the Annual Report of SeeYe-
tary sherman.

The annual report of Secretary Sherman is
voluminous paper, and We have only room
for brief condensation of the arguments and
statements. The Secretary says the total ord-
nary receipts Of the year ending June So 1877,
were $269, 000, $500; expenditures s23s, $780,
0O6.e S, leaving surplus revenue of $50, 340,-
577.69. The net decrease Of revenue as oom-
pared with last year, was $18, 4S1, 1876. 81 There
was an Increase, however, In internal revenue,
on whisky and tobacco.
The first recommendation calculated to arrest
attention is to the effect that Congress ought to
supplement, by appropriate legislation or joint
| resolution, the Secretary's own assurance that
the bonds will be paid, interest and principal.
in gold coin, and not simply in coin. The next
suggestion is that he be authorized TO sell
bonds either for coin or for it's equivalent in
United States notes, for the greater convenience
a distance from any place where gold coin Is to
be found for sale.
In regard to resumption, the Secretary Is
positive that no new legislation is required.
He virtually pledges himself 30 make green
backs worth their face inside Of thirteen
months if left alone. He does not propose to
retire from circulation the greenbaoka, except
20 much as may be in excess of $500, 900, 600.
He estimates that 800, 900, 900 in gold will be
coin enough to keep that much paper money at
par.
The Secretary sets forth the advantages Of
the national-bank system, which we pass by
Upon the subject of savings banks the Secre-
tary saws:
"The attention of Congress il called TO the
great value to our fellow-c citizens Of the ORGAN
ization of some plan Tor the collection, safe
keeping and profitable employment Of small
deposits by tho people. How fer this can be
done without trencning upon the proper func-
tons OF the State Governments is question of
difficulty; yet it is important to secure, if pos
slble, general system throughout the United
States. This can hardly be effected by the Or
ganizatlon of multitude of savings banks, de-
pending upon the fidelity, integrity and skill of
their officers, but the beneficial object of such
banks night be secured by authorizing the de-
post OF small sums with any postal money
Or Ter office in the United States, and the issue
| of Government certificates convertible on de-
mand of the holder into 4per-cent. bonds of
the United States Of such character, descrip-
ton and amount as will enable and induce pru-
dent persons to convert their earnings into
public security of stable value The money
| thus received could be employedin the redemp-
ton Of outstanding bonds bearing higher rate
of interest. By some such system it is believed
that the great body of our public debt. reduced
to its smallest possible burden, could be dis
tributed among our own people. With a slight
suit would be secured"
Several of the subjects discussed relate to
the mere mechanism of the Treasury Depart
ment, or to matters Of comparatively trivial
Importance. The only remaining subject Of
special interest and vital to the general well
fare comes under the head of coins and coin
age. as the law now stands silver coin for
fractional currency shall be issued to an
amount not exceeding $40. OOO 600 for an equal
Amount of LIT 6orn nd Eho
gate Of such fractional silver outstanding
shall not exceed $50,000,000. The Secretary
recommends the removal of the restriction
upon the amount of the legal tender that may
be exchanged for such silver, believing that
the law Of supply and demand oan be trust
ed to regulate the matter. Trade dollars to
the amount of $50, 710, 400 have been coined.
In the exercise of his lawful discretion
in the premises, the Secretary of the
Treasury has ordered the suspension Of the
coinage of that anomalous piece Of money and
In case another silver dollar is authorized he
suggests that the trade dollar be discontinued.
Having disposed of the preliminary matters of
coinage, the Secretary enters upon an elaborate
discussion OF the question of remonetzing sill
yer. Upon this subject he says
"The question of the issue of silver dollar
for circulation as money has been much dis
cussed and carefully examined by commits
zion organized by Congress, which has recon-
mended the coinage of the old silver dollar.
With such Legislative provision as will maintain
its current value at par with gold. its issue is
respectfully recommended. A gold coin of the
denomination of one dollar is too small for
convenient circulation while such coin in
silver would be convenient for q multitude of
daily transactions, and is in q form to satisfy
the natural instinct of boarding.
"Of the metals, silver is of most general use
for coinage 1t is part of every system of
coinage. even in countries where gold is the
sole legal standard. It best measures the
weight and bulk, is not convenient
medium in the larger exchanges of
commerce. Its production is remarkably steady
in amount. The relative market value
of silver and gold is far more stable than that
Of any other two oommodities-still it does
vary. 1t is not in the power of human law to
prevent the variation. This inherent difficulty
has compelled all nations to adopt one or the
other as the sole standard of value, or to au-
thorlze an alternative standard of either or to
coin both metals at an arbitrary standard, and |
to maintain one at par with the other by limit |
ing its amount and lega[tender quality, and re-
ceiving or redeeming it at par with the other
"The Importance of gold as the standard of |
value is conceded by all. Since 1884 it has |
been practically the sole coin standard of the |
United States. and since 1916 has been the sole |
standard of Great Britain. Germany has re- |
Gently adopted the same standard. France |
and other Latin nations have suspended the |
coinage of silver, and, it is supposed, will |
gradually either adopt the sole standard of |
gold or provide for the oonvertibility of silver
coin, on the demand of the holder, into gold |
coin.
"In the United States, several experiments |
have been made with the view of retaining |
both gold and silver in circulation. The Sec |
Ond Congress undertook to establish ratio of |
fifteen of silver to one of gold, with free coin
age of both metals. BY this ratio gold was
undervalued, as one ounce of gold was worth |
more in the markets of the world than fifteen |
ounces of silver and gold, therefore, was ex-
ported. To correct this. In 1887, the ratio was |
fixed at sixteen to one, but sixteen ounces of |
silver were worth in the market more than one |
ounce of gold, SO that silver was demonetzed |
cit is urged that the free coinage of silver |
in the United States will restore its market |
value to that of gold. Market value is fixed |
by the world, and not by the United States
alone, and is affected by the whole mass of |
silver in the world. AS the enormous andcon-