New-York tribune., 1878-11-25

and the committee. lie SAID Inc Chi'eu
Estates will maintain its notes at par In coin
"In all parts of the United States, and VIII do
$50 by the redemption of such notes as are pre-
"sented to the Assistant Treasurer at New 1 orh'
"and by the receipt of United States hotes
9" for both customs duties and bonds. thhk
"this can be done without a change OF the
claw. but as to this Congress must be the
"iudge. The Treasury will treat United
Estates notes and coins as an exact equiv
"aent in all transactions with the Govern
"ment. and then all business everywhere III
"the United States will adapt itself TO the
"same standard" In these sentences MI
Sherman certainly covers nearly every polht
of inquiry that has been raised IN business clr-
cles. II the natural Interpretation be gwen 10
his words the three kinds of legal-tender now
provided by law will be treated as absolutely
equivalent in value, provided congress
does not interrupt by further leglslanon'
1t is to be observed that, prior to the SEN
tences quoted already, the Secretary had also
said "The difficulties suggested by the Bal
"hmore banks could he met by either OF
several expedicnts: FIRST, This Department
"can now. by express provision OF laW' seh
cor exchange coin for grccnbacks. lhis
"has been done for years at Boston,
Baltimore, Chicago, and other leading ports,
"at the same premium for gold as the market
crate Mt New-YOrk. This could be continued
" after January l, when at New-York the rate
" will be par, and therefore the same else
"where."
We think Secretary Sherman meant to say
and from the tenor of his other remarks must
be understood az saying, This TH be CON
"tinucd after January l." If any person
wishes to buy gold, at any of the principal
ports. and the Treasury declines to sell gold for
legal-tcnderS within ordinary and reasonable
limits, 1t Will certainly establish there a pre-
MUM on gold and VIII not treat United
States notes and coin rs IN exact equiva-
"lcnt" But if any person wants TO
buy more gold than the Government
has at any point, whether his object
be 70 embaTrass the Government or not the
Treasury cannot be considered rs refusing
to redeem its notes, because 1t holds itself
ready to redeem only at the place appointed
by law for redemption. The only sng-
gcStOn that seems necessary at tins
point is that the Treasury certainly should
not confnc its free sales or exchanges
of gold to a few cities. II would be
most unwisc to forget that certain demand
for curiosity or for boarding will appear, rs
soon rs gold payments begin. To treat that
demand as one 10 be thwarlcd If possible
would be an absurd mistake. As well might
an engineer refuse to let water into the I'm
ishcd canal, because little Of it would be
absorbed by the porous earth.
The dcsIc OF individual, to get possession
of gold lsAcr than lcgal-teudcrs is precisely
the thing which the Government has to over
come before resumption viii be complete. II
can hc overcome only by pouring ont the
gold until nobody cares TO take any
more of it. The Government has an
more freely ii satisfies the natural desire
the less that desire will prove to be. Specu-
lation in gold will be- fomcntcd by any hcsi-
tation in satisfying this natural desire. or
itself. that desire would not take more than
a very few millions of gold for its full sat
iSfactiOn; but if It IL so far denied
that IT causes and is in turn stimulated by
n speculative demand, it might absorb more
than can be spared. For this reason the
more extensively the Treasury facilitates an
exchange of grccnbaclis for gold on the part
or any who wish to hold the precious metal
the more surely and quickly it Will put an end
to any speculation for the defeat Of resump-
ton.
Unless Congress decides otherwise, the Treas
urv will receive lcgal-tcndcrs for customs
duties and for bonds after January |, pre-
ciscly as 1t has received gold notes. and this
provision alone will suffice to remove the diff
cultics which the Baltimore bankers appre-
hendeG. 1t does not appear that they
were indisDOsed to concur with the
bankers of New York in respect to
the treatment of silver. Nor can any serious
Inconvenience arise at present, rs long as the
coinage is limited and the Treasury does not
force anybody to take silver who prefers gold.
The danger against which the banks have to
provide is that tho limitation of coinage may
be removed, or the Issue of silver
certificates for all silver deposited at
the Mint may be authorized. If
Congress does not interfere, and if the
Secretary of the Treasury does not hesitate to
act upon the Interpretation of the laws which
he has given to the Baltimore Committee the
work of resumption will be accomplished with
ont apy further difficulty.