Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-12-04


labor Of collections both to the treasury and
the banks.
Every step IN these preparations for resump-
ton has been ccOmpanied with increased bust
ness and confidence. The accumulation of
coin, instead of increasing its price, as was
feared by many, has steadily reduced it premi-
um in the market. The depressing and ruin
GUS losses that followed the panic of 1873 mad
not diminished in 1875, when the resumption
act passed; but every measure taken in the ex-
ecutlon or enforcement of this act has tended
| to Tighten these losses and to reduce the premi-
UNI on coin. so that now it is merely nominal.
The present condition of our trade, industry
and commerce, hereafter more fully stated, our
ample reserves, and the general confidence in
splred IN our financial condition seem to iusti-
~ the oplnlen that we are prepared to COM
mence and maintain resumption from and af-
ter r, the 1st day of January, A. D. 1879.
The means and manner of doing this are left
largely to the discretion of the secretary, but,
from the nature of the duty imposed, he must
restore coin and bullion, when withdrawn in
the process OF redemption, either by the sale of
ponds, or the use of the surplus revenue, or of
the notes redeemed from time to time.
The power to sell any of the bonds described
before resumption. Though il may not be
often used, it is essential to enable this de-
partment to meet emergencies. By its exer-
else 1t is anticipated that the treasury at any
time can readily obtain coin to reinforce the
reserve already accumulated. United States
notes must, however. be the chief means under
existing law with which the department must
restore coin and bullion when withdrawn in
process OF redemption. The notes, when re-
deemed, must necessarily accumulate in the
treasury until their superior use and conven-
ence for circulation enables the department to
exchange them at par for coin or bullion.
The act of May 81, 1878, already referred TO-
provides that when United States notes are re-
deemed or received in the treasury under any
law, from any source whatever, and shall be-
long to the United States, they shall not be re-
tired, cancelled, or destroyed, but shall be re-
issued and paid out again and kept in circula-
ton.
The power to reissue United States notes was
| conferred by section 3,579, revised statutes.
and was not limited by the resumption act AS
this, however, was questioned, Congress wisely
removed the doubt.
Notes redeemed are like other notes received
into the treasury. Payments of them can be
made by law or for the purchase Of bullion, or
Tor the refunding of the public debt.
The current receipts from revenue are suffi-
| clent to meet the current expenditures as we'll
as the accruing interest ON the public debt
Authority is conferred by the refunding act to
redeem six per cent. bonds as they become re-
deemable, by the proceeds of the sale of bonds
bearing lower rate of interest. The United
States notes redeemed under the resumption
act are, therefore, the principal means pro-
vlded for the purchase of bullion or coin with
which to maintain resumption, but should
only be paid out when they can be used to re-
place an equal amount of coin withdrawn from
the resumption fund. They may, it is true, be
used for current purposes like other money.
but when so used their place is filled by money
received from taxes or other sources of rev.
enue.
In daily business, no distinction need be
MADE between moneys from whatever source re-
celved, but they may properly be applied to any
of the purposes authorized by law. No doubt
coin liabilities such as interest or principal of
the public debt, will be ordinarily paid and
willingly received in United States notes, but,
when demanded, such payments will be made
in coin; and United States notes and coin will
be used in the purchase of bullion. This
method has already been adopted in Colorado
and North Carolina, and arrangements are be-
ing perfected to purchase bullion in this way
| IN all the mining egions of the United States
BY the act approved June s. 1878, the secre-
tary OF the treasury is authorized to constitute
any superintendent of a mint or assayer of any
assay Office assistant treasurer Of the United
States to receive gold coin or bullion on de-
post. By the legislative appropriation bill ap-
proved July 10, 1875 the secretary of the treas
ury is authorized to issue coin-certifcates in
payment to depositors of bullion at the several
minis and assay offices of the United States.
These provisions, intended to secure to the pro.
ducers OF bullion more speedy payment, will
necessarily bring into the minis and treasury
the great body of the precious metals mined in
the United States and will tend greatly to the
easy and steady supply of bullion for coinage
United States notes, when at par with coin,
will be readily received for bullion instead of
coin-certifcates and with great advantage and
convenience to the producers.
Deposits of coin in the treasury will no
doubt continue to be made after the LIST of
January, as heretofore. Both gold and silver
coin, from its weight and bulk, will naturally
seek such safe deposit, while notes redeemable
IN coin, from their superior convenience, will
be circulated instead. After resumption the
distinction between coin and United States
notes should be- as far as practicable, aban-
doned IN the current affairs of the government;
and therefore no coin certificates should be is
| sued except where expressly required by the
provisions of law, as in the case of silver-cer-
tificates. The gold certificates hitherto issued
by virtue of the discretion conferred upon the
| secretary will not be issued after the LIST of
January next. The necessity for them during
| suspension of specie payments is obvious,
| but no longer exists when by law every United
States note is, in effect, coin-certiGcate The
only purpose that could be subserved by their
issue hereafter would be to enable persons to
| convert their notes into coin-certifcates, and
thus contract the currency and hoard gold in
the vaults of the treasury without the incon-
venience risk of it's custody For convent
ence United States notes of the same denomi-
nation as the larger coin-certifcates will be
issued.
By existing law customs duties and the in
terest of the public debt are payable in coin,
and a portion of the duties was specifically
pledged as special fund for the payment Of
the interest, thus making one provision de-
pendent upon the other. As we cannot, with
due regard to the public honor, repeal the obi
CATION to pay coin, we ought not to impair or
repeal the means provided to procure coin
When, happily, our notes equal to coin,
they will be accepted as coin, both by the pub
lie creditor and by the government; but this
acceptance should be left to the option of the
| respective parties, and the legal right on both
sides to demand coin should be preserved in
violate.
The secretary is of the opinion that change
OF the law is not necessary to authorize this
department to receive United States notes for
customs duties on and after the LIST day of
January, 1879, while they are redeemable and
are redeemed on demand in coin. After re-
sumption 1t would seem a useless inconveni-
ence to require payment of such duties in coin
rather than in United States notes. The re-
sumption act by clear implication, so far
modifes previous laws as to permit payments
In United States notes as we'll as in coin. The
provision for coin payments was made in the
midst of war when the notes were
deprecated and the public necessities
required an assured revenue in
coin to support the public credit. This alone
justified the refusal by the government to take
its own notes for the taxes levied by it. 1t has
now definitely assumed to pay these notes in
coin, and this necessarily implies the receipt of
these notes as coin. To refuse them is only to
invite their presentation for coin. Any other
construction would require the notes to be pre-
sented to the assistant treasurer in New York
for coin, and if used in the purchase of bonds.
to be returned to the same officer, or, if used
for the payment of customs duties, to be car
RED to the collector of customs, who must daily