The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-06-09
Ways and Means OF Specie Fay
ments.

put at his disposal by the act OF January H.
1875, nor that he will do SO unless Congress
shall provide other methods 1t is better
to reach sound currency by means which
are clumsy and costly than not to reach it
at all There is conclusive evidence that
Secretary Sherman does not consider the
method prescribed by the act OF 1879
as the most desirable. He proposed
at tho last session o bill author
izing the funding of greenbacks IN
long bond bearing . moderate rate
of interest. with the avowed object OF
retiring the surplus greenbacks and dlmln-
ishing the demands for gold which Will be
made on the Treasury at the date fixed Tor
resumption. Such y measure is IN accord
ance with the plainest principles Of bust
ness prudence and common sense Why
should the Treasury accumulate reserve
of two hundred millions OF gold to be paid
out "at one fell swoop" in the first days of
January. 1879, when all that trouble and
turmoil might easily be dispensed with by
so simple an expeiient as funding the re-
dundant legal tender notes2 1t would dis
turb all the gold markets Of the world with
out any compensating advantage during the
process of unnecessary accumulation, and
then disturb them again by great inunda-
ton OF gold when the dam was removed 1t
would be much better to gradually bring
the greenbacks to par by reducing their
amount and thereby save the necessity for
boarding up more gold than may be neces-
sary for maintaining the currency at the
specie level when it shall have been
brought to that level by cheaper methods.
Such an act as was proposed by Mr.. Sher-
man in the Senate last winter is about all
that is necessary for safely bringing about
specie payments without any sudden shock
to business or perceptible disturbance Of
the gold market or obstruction from foreign
fnanciers.
And yet resumption in 1879 is undoubt-
eddy practicable without new legislation.
The fact that it is practicable, and that this
administration is determined to force it by
the means in its power if other means are
not provided, may bring Congress to con-
sent to the previous funding of q considera-
BILE amount Of greenbacks. The present
law may be made, in resolute hands,
potent instrument for extorting from re-
luctant Congress method Of resumption
which will bear less heavily on the business
interests of the country. When Congress
finds that the administration is infexibly
determined to resume in 1879 it will proba-
bly, consent to smooth the way to result
which it would be vain to resist. Ever
since the passage Of the act OF 1875 the
infationists have hoped and the rcsump-
tionists feared that the act would be re-
pealed before the date fixed for specie pay
1nents The nurses Of the rag baby had no
expectation of repeal during the admins
tration of General Grant, who certainly
would have vetoed bill for that purpose !;
but they hoped that by putting off all
measures Of preparation his successor
might be brought to think that it was too
late to keep the pledge and consent to q
law putting off the day. But it happens
that Mr.. Hayes is as stiff and infexible a
champion of resumption as was General
Grant, and that the veto Of o repeating act
would be not less prompt and sure under
been under the last. Congress will, there
fore, be reduced to this dilemma-ei to
accept resumption in 1879 by hard, bung-
ling method, or to provide an easier and
simpler method Specie payments we are
to have at that date in any event, and it is
for Congress to decide whether it prefers re-
sumption under the law Of 1876, which can
not be repealed over President Hayes veto,
or under new law which will attain the
same end with less trouble to the Treasury
and less Inconvenience to the public.
The act of 1875 provides only two re-
sources for redeeming the legal tender notes
which may be outstanding in 1879. One of
these is the surplus revenue of the govern
ment not otherwise appropriated. This
amounts to little practically, be-
cause there is no considerable surplus
As Secretary Morrill, said in his annual
report to Congress in December lit is
not deemed ut all probable that any
! considerable sum not otherwise appro-
priated could be devoted to this end" The
other resource, and the only substantial
one available, is Ito quote the language OF
the law) ito issue, sell and dispose Of at
not less than par in coin, either of the de-
scriptions of bonds Of the United States
described in the act Of July II, 1870, to the
extent necessary to carry this act into full
effect" At the time this act was passed
none Of these bonds could have been sold
at par, and had that condition of things
continued the resumption provided for
would be nullty. This is what
the infationists, who voted for the
law, expected and intended and
| President Grant, who signed the bill,
evidently thought of no value as a resump-
ton measure, unless Congress could be per.
| suaded to increase by further legislation the