New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-28
1FrtL-TEyDERS FOR CUSTOMS


A very important feature of Secretary Sher
mans plans, as stated in his interview with
the Senate Committee on Finance, was briefly
and imperfectly given in the condensed report
published last week. The officially printed
pamphlet, which, it is understood. was exam-
med and approved by the Secretary before
publication, makes much more clear his rea
sons for believing that the receipt of legal
tenders for customs duties after the 1st of
October next would not be a disregard of
public obligations. AS this portion of his
statement has elected much criticism, and yet
cannot be fairly Judged without a clear un-
Outstanding of the reasons given, it Is worth
while to present them a little more fully, as
submitted by the Secretary himself
The basis of his reasoning is that the du-
ties are now paid to the Government. and the
interest on the public debt is paid by the Gov
ernment, mainly in form of paper money
namely, coin certificates. This is done because
the certificates can be more easily, cheaply
and safely handled than the coin. They are.
therefore, preferred by those who receive
gold from the Treasury, and used by those
who pay gold to the Treasury. The ecretary
produced letter from Mr.. Gfllan, the
treasurer, showing that "all interest on SiO7,
"s42, $50 registered principal of the funded
(" loan is now paid by coin checks" and that on
other registered and coupon bonds, "as far as
"the denominations of gold certificates will
"permit-the lowest being S1OO-paymcnts of
"interest are made at the principal offices in
I" gold certificates. Should denominations con-
"yenient for the purpose be issued, very little
"actual coin would be used in making the in
"terest payments" AS this results from the
choice of the persons receiving interest, it is
reasoned that note of the Government known
to be as good as gold. and redeemable in gold
on demand, would in like manner be by
nearly all preferred to the actual coin. both
in coin payments and coin receipts.
II is MIR. Sherman's idea that the green
back, as soon as resumption takes place, will
be the same as a coin certificate, and VIII,
therefore, be preferred by nearly all who have
coin dealings, precisely as the certificates are
now preferred. Therein he obviously puts out
of the question the possible apprehension that
RESUMPTION, though once commenced, might
not be long maintained. If that apprehension
should exist TO any extent III the minds OF
men. the legal tender would not be to them,
as the coin certificates now are, certain rep
resentative of gold actually held, and surely
payable on demand. But the Secretary says:
I never would receive tho greenback for customs
duties until knew IL good coin. and wonld
be willing 10 tho risk OF anticipating that for three
months II that would help the matter
would assume the LIST OF October next that our notes
were as good as gold silver and would receive them
as such. would show my confidence by dong 1t
beforehand The Secretary has the legal right 10
prepay TO anticipate payment OF the interest on the
public debt, year II the note Is the prac'oal equiv
alent Of CON- 1t will be received coin for interest," and
we should take 1t coin for duties II wo lose fraction
OF one per cent II is small matter think an act OF
courage OF that kind would be very beneficial.
In answer to many questions. the Secretary
further explained that he would continue to
pay the interest in coin, and that the act OF
receiving legal-tenders as coin would be in no
sense violation of pledges to public creditors,
as the receipt of coin certificates is not. The