New-York tribune., 1877-05-15
WASHINGTON.
RESUMPTION PREPARATIONS
Mr. sHERMAS's FIRST SALE OF BONDS 70 ACCUMU-
LATE GOLD-HIS INTENTIONS.
IBY TELEGRAPH THE TRIBUNE

BY TELEGRAPH TO THE TRIBUNE.I
WAsHINGToN, May 14.-Secretary Sherman
is not ready all the det s of his plans
Of preparation for resumption under the act Of Jan H.
1873 and of the coniectures already published
probably very wide Of the marx. The sale Of 4l2 per
cent bonds at for gold effected last week was made
by authority Of that clause Of the Resumption act which
provides that enable the Secretary OF the Treasury
to prepare and provide for the redemption In this act
authorized or required he is authorized to issue,
SELL and dispose Of at than par in coin either of
the descriptions OF United States bonds described in the
act II Congress approved July II, 1870, to the
extent necessary to carry this act into effect and to use
the proceeds thereof for the purposes aforesaid" Sccrc
tary sherman has simply announced that the fl2 per
cent bonds, the sale of which he is negotiating viii he
paid for in coin during May and june and that the coin
will soon afterward be sold for currency.
The question arises what is to be done with that
currency The Secretary Of the Treasury has author
y under the act OF Jan. II, 1872 any other act OF
Congress- TO cancel and destroy currency thus OBJ
tanned. The redemption and destruction Of treasury
notes simultaneously with the issue Of additional Ma
tona bank circulation is authorized to continue until
the whole amount OF greenbacks outstanding is $780,
100000 The act does not, in terms, forbid tic redcmp
ton and cancellation of legal-tender notes under
other circumstances, yet it is wen understood
that MOI such redemption was contemplated
by Congress before January /, 1879 and that the act
would not have passed had it been supposed that the
clause authorizing the sale Of bonds contemplated
simultaneous retirement OF egal-tcnder notes. II has
been objected that the boarding Of legicnder notes
and the acquiring of large cgaltender balance IN the
Treasury 10y the sale of bonds is dangerous operation;
that the fund thus created VIII be regarded re-
:" that when the money market Incomes active
there will be great camor TO have the reserve issued
and that in the end the notes thus accumulated viii be
paid out, thus becoming To a except sprcrriive
interests it is fc1re that the experience
OF the country win ne TiAoOoo'V serve accumu-
lated by Secretary NcCuIluca will b. repeated.
Secretary Sherman may he trusted not 20 repeat any
buudcr tui-. Although t" lauguIsc Of the act
under which Secretary McCulo,h retired S4.0DOO}O OF
United statrS n2lyN E' n@' hleqi'oc an1 'ir arl"n
thos notes 'efenGci by many leading rnrn ,n the
The Senate denounced 10 in tr strongest terms hc rouI
comuaud. Re has never admitted ihr th" Troa,ujY
Department had any authority .hlryc: Tor ire reissue
OF those notes Furthermore IN" Iesd.-c'h'r h"e'
which Mr.. Sherman now proposes Ia accumulate c!i-
baancc ana cannot under The law be used
for any purposc 'p that Of redemption. or the prepa
under the act OF J1 H. 1870 or any other act u Con
grcSs 10 dispose Of any OF th" bond' autaor1t ~ the
act uf 1870 except fr two purpJS--. The first ~ hcs"
is the reminding Of outstanding obi cations now drawing
OF the Resumption act f. to cntbl" M" Secretary ~
g.. ~ Iutf.d stlti- ernl-irndrr notes T.n currency
or the coin obtained by the sale Of bonds under ls au
tiurity devoted exclusively "a the purposes ~
resumption AID cannot under any crcum>ja bc used
for any other prppsc To pay this currency out again
except for gold 10 b, used or the redemption OF United
States notes, would therefore be PLAN vocation OF the
While therefore Secretary Sherman makes official
announcement of the mdurr iu which he VIII trcd the
fund obtained by the sIlc OF AZ cent bonds IL Is
plain that 10 cannot be used for the oId nary purposes of
the Government, nor indeed IN any other WAY thih "f
the final redemption Of lesaendcr notes. II cannot be
considered reserve and II cannot bc pad ont Tor
ordinary except by order Of Congress; aud any
directing ts would undoubtedly be vetoed by
tnc President. conjecture that Mr. sherman may pos
sbly decide that hc has authority TO mold legalcuder
notes a special fund for the tctcmptun pt fractional
currency which viii in all probability never Be presented
because il is out or lost aud that in this way D."
may accumulate a fund Yinb ~ the end may be used IN
bringing about specie payments is altogether erroneous
The Secretary the Treasury already on hand for
tins purpose about $9,uuuGOo Of currency which mas
uecn set aside rs special i and IL is not AT all prob
aplc that OF the lrg1l notes obtained by the
Gallo nL humLl. VIII n. aLG-l % t.L. LL.AI.