The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1877-12-07

TRY sherRsa.
Tho annual report Of Secretary Sherman 10
vsanminous paper, and We have only room
for brief condensation Of the arguments and
statoDents. The Secretary says the total ord-
nary receipts Of the year ending June 50. 1877,
were eS60, 900, $500; expenditures, e2SS, ESQ.,
00e 81, leaving . surplus revenue Of eso,s40,-
5y7.es. The net decrease OF revenue. a. COM
pared With last year, Was e18, AL .4265l. There
was an increase, however, in internal revenue,
on whisAy and tobacco.
The 6rst recommends don calculated 10 arrest
attention il to the effect that Congress ought TO
mpplenent, by appropriate legislation or joint
| resolution the Secretary's own assurance that
the bonds viii be paid, interest and principal,
in gold coin, and not simply in coin. The next
suggestion is that he be authorized 70 sell
bonds either for coin or for its equivalent in
United States notee, for the greater convenience
Of the general public, especially those living at
. 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 to make green
backs worth their face inside OF thirteen
months il left alone. He does not propose to
retire from circulation the greenbacks except
no much a. may be in excess OF $780, 0O0, 600.
He estimates that 800, 000, 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 citizens Of the organ
iZation OF some plan for the collection safe
keeping and profitable employment Of small
deposits by tho people. How fer this can be
done without trenching upon the proper func-
tons OF the State Governments is question of
difficulty; yet il il important to secure if pos
sible, general system throughout the United
States. This can hardly be effected by the or
ganization of multitude of savings banks. de-
pending upon the fidelity, integrity and skill of
their officers. but tho beneficial object of such
banks might 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. dcscriu-
ton and amount as viii enable and iuduao DIu-
dent persons 10 convert their earnings into %
public security Of stable value The money
thus received could be employed in he rcdenp.
ton o. outstanding bonds bearing a lu CHER rate
Of interest. BY some such system ills believed
that tho great body Of cur public debt, reduced
TO its smallest possible burden, could he dis
trbuted among our own people. With n slight
modification of existing laws this beneficial re-
suit would be secured"
Several Of the subjects discussed relate 70
the mere mechanism Of the Treasury Depart
ment, or 10 matters Of comparatively trivial
importance. Tho only remaining subject of
special interest and vital 10 the general well
fare comes under the head OF coins and coin
age. A. the law now stands, silver coin for
fractional currency shall be issued 20 an
amount not exceeding SO. 000 coo for an equal
amount of legalteuder notes. and the aggye-
gate Of such fractional silver outstanding
shall not exceed $50, 900 600. The Secretary
recommends the removal Of the restriction
upon the amount of the legal tender that NAV
be exchanged for such silver. believing that
the law Of supply and demand can be trust
ed 20 regulate the matter. Trade dollars To
the amount of $50, ITO, 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 remonctiZing ST.
yer. Upon this subject he says /;
The question Of the issue OF q silver dollar
for circulation as money hes been much dis
cussed and carefully examined by a commits
sion organized by Congress, which has recon-
mended the coinage of TIE old silver dollar.
With such Legislative provision as will maintain
its current value at par with gold. its issue Is
respectfully recommended. 4 gold coin Of the
denomination OF one dollar is too small for
convenient circulation, while such coin in
silver would be convenient for a multitude of
daily transactions, and is in form to satisfy
the natural instinct Of boarding.
"Of the metals, silver is of most general use
for coinage. 1t is a part Of every system Of
coinage, even in countries where gold is the
sole legal standard. It best measures the
aFatH g.
weight and bulk, is not convenient
medium in the larger exchanges of
commerce. Ito production is remarkably steady
in amount. The relative market value
of silver aud gold is far more stable than that
of any other two cOmmodities-still it does
vary. II Is not in the power OF human law to
prevent the variation. This inherent difficulty
has compelled all nations 20 adopt one or the
other as the sole standard Of value. CT 60 au-
thpriHe Gu q terna i've standard OF either or To
com both metals at an arbitrary standard. and
to maintain one at par with the other by limit
ing its amount and legal tondor quality, aud re-
celvuS or redeeming II at par with the other.
"The Importance of gold as the standard of
value Is conceded by all. Since 1884 1t has
been practically the sole coin standard Of the
United States. and since 1915 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, il is supposed. will |
gradually either adopt the sole standard of |
gold or provide for the convertibility Of silver
coin, on the demand Of the holder, into gold
coin.
Sin 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
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. III 1897. the ratio was
fixed of sixteen to one, but sixteen ounces OF
silver were worth in the market more than one
ounce of gold, 30 that silver was demonet zed.
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 tue world, ard not by the United States
alone, and Is affected 10y the whole mass of
silver in the world. A. the enormous and'con-
tnuous demand for silver in Asia has not pre-
vented the fatl In silver, it is not likely that
the limited demand for silver coin i'm this
country, where paper money il now and will be
the chief medium of exchange, will cause
any considerable advance in its value. This
advance. II any, will be secured bv the demand
for silver bullion for coin 10 be issued bv and
for the United States as well as if il were is
sued for the benefit OF the holder of the hul-
ion. If the financial condition of ol,r c,,,utr,,