The New York herald., 1878-12-03

family of nations should not adopt standard OF less
intrinsic value than other commercial nations. Alike
Interested in silver and gold the great producing
country of both it should coin them at such ratio
and on such conditions will secure the largest use
and circulation of both metals without dispacing
either. Gold must necessarily be the standard OF
value in great its greater relative
value, but it not capable OF the division required
for small transactions. while silver is Indispensable
for multitude of daily wants and is too bulky for
Use in the larger transactions of business, and the
cost OF its transportation for long distances would
greatly increase the present rates OF exchange. 1t
would therefore. seem to be the best policy for the
present to limit the aggregate issue Of silver dol
lars, based on the ratio OF sixteen to one. to such
sums clearly be maintained at par with gold,
until the price Of silver in the market shall assume
definite ratio to gold. when that ratio should be
adopted and our coins made to conform to it; and
the scretily respectfully recommends that he be
authorized to discontinue the coinage OF the silver
dollar when the amount outstanding shall exceed
S50,oO10O0.
meantime. in the execution OF the law as 1t now
stands he will feel it to be his duty to redeem all
United States notes presented and after January l.
next at the Office of the Assistant Treasurer OF the
United States in the city of Ncw York In sums OF not
less than $780, with either gold silver con as de-
sired by the holder reserving the legal option Of
the governments and to pay out United states notes
FOR all other demands on the Treasury except when
coin is demanded coin liabilities. 1t is his duty as
executive officer to frankly state his opinions so
that II he is in Congress may prescribe such
policy as is best for the public interests
FUNDING.
The amount of four per cent bonds sold during the
present year. prior to November 23 s $loo,2IO9W.
Of which S9t, 500 were sold under the refnnding
act approved July IL, 1870. Six per cent bonds COM
monty known as tiyetwenties, to an equal amount,
have been redeemed, VIZ be redeemed a. calls ma
ture This beneficial process greatly retarded by
the requirement of the law that subscriptions must
be paid III coin. the Inconvenience of obtaining
which to the great body of the people outside Of the
large cities, deferred many sales.
The three months public notice required by the
fourth section of the rcfnding act to be given to tho
holders Of the fvewenty bonds 10 be redeemed neces-
sary involves loss to the government by the pay
ment of double interest during that time The notice
should not be given until subscriptions made
are reasonably certain to bc made. When they are
made and the money is paid into the Treasury,
whether s kept there idle during the three months
deposited with national banks under existing
law, the government not only pays interest both
classes OF bonds during the ninety days. but. If the
sales are large the hoardin large may disturb
the market. Under existing law this is unavoidable
and to mitigate it the Secretary deemed it cxpedient
during the las. to make calls in anticipation OF
subscriptions but this, though legal might i'll case
OF failure OF subscriptions, embarrass the govern
mcnt III paying called bonds. The long notice re-
Qured by law not necessary III the interest OF the
holder OF tho bonds: for as the calls are made by
public notice and the bonds indicated and speci
fed by class date and number in the order Of their
numbers and issue, he by ordinary diligence can
know beforehand when his bonds in due course will
probably be called, and will not be taken by sur
prise. t84 Na.r 4N
The Secretary therefore recommends that the
tce to be given for called bonds be- at his discrc
ton not less than ten days nor more than three
months In this way he will be able largely to avoid
the payment of double interest ds well the tenn
porary contraction OF the currency and may nx the
the called bonds becomes due and payable.
The Secretary then refers to the desire Of the de-
forts made in tnat direction. The popular losn Of
1877, open to all alike by public advertisement, alb
sorbed sf5OovUOp OF four per cent bonds. and during
the present these bonds have been sold in tie
manner.
1t is suggested that the department be authorized
to issue certificates of deposit of the United states OF
the denomination Of So bearing interest the rate
OF 3.65 per cent per annlIn and convertible ut any
time within year after their issue into the four
hgs1 hrt y.d tofr1 Iipun ~ and
to be issued only exchange for United States
sent to the Treasury by mali or otherwise. e4ffF
The monetary transactions Ut the governments are
then alluded by the Secretary the full details of
which appear in the Trcasurer's report already pub
Lshed.
THE NATIONAL BANKS
Secretary Sherman then refers to the report of the
Comptroller OF the Currency, also heretofore pub
lishe., as presenting full and interesting information
as to the national banks The advantages of tho sys-
tenn over any other before existing in this country
and possible only with national system are
Frst--The security of the bill holder from loss
through failure of tho bank.
Secoi-1he rapidity and certainty of the detection
the notes engraved. printed and redeemed ut the
Treasury Department. is t
Th,rd-Th. frequent and careful examination Of the
banks and the publication of the detailed statements
OF their condition. t
fourA-Uaiforlnity and free circulation of the
notes throughout the United States. without respect
to the place OF their issue.
FiHh-The admirable provisions by which falling
banks are placed in liquidsson and their assets
-
creditors
COINS AND COINAGE.
The annual report OF the Director OF the Mint cx-
hibits in detail the operations of the several mint
and assay Offices, and also presents interesting nfor
nation relative TO tne production u gold anu silver
aud silver coin and bullion in the country the de-
probation of silver, the position OF the American
trade dollar in the Oriental trade and other subjects
connected directly or indirectly with the coinage.
The value OF the gold coinage executed
during the last hscs, year $52. 79se $50
or standard silver dollars. s............. s.5735O0
Ot fractlonal silver coin. S.Si9.3l5
And Of minor coin. n........................ ~, 6y4
A total coinage Observation-Disclosures Of ss1 l30 400
IN addition to the coinage nnc aud impaired bars
prepared for depositors in the amount OF
Sl250a26 - in gold and xll ,S53 So 81 in silver.
lt from the proven capacity OF the several
mnts. that coinage facilities ample for all
purposes. The present production of bullion from
the mines OF THE United States appears to approxi-
mate slo.oVoO0o III value. All the gold bullion pro-
duced ia the country contains less silver and
the greater portion OF tine silver bullion from our
mines contains percentage Of gold making it DIM
cult to determine wIth accurac. the proportion Of
each. II IL SAFE. however. to state that the produc
ton or the two metals. calculated ut their coming
rates, is nearly equal.
Duritss or IMPORTS.
Til. enlba-ras-nents alluded 10 in tho last annual
report IN regard to the collection OF dutic. sugar
have ceased Seizures have bccn made Ut csrgoes
sugar claimed be artifcaly colored for the pur
pose of reducing the duties ut the Custom House,
nd suit involving OF these cases was tried at
baltimore great expense to the government aud
10 the importers, aud recently concluded. the
verdict being that the sugars were artincially
cclored after the process Of manufacture COM
petcd but that II not proven that the
importer Of the sugars had knowledge thereof ut
the time OF making entry. Though the claim of the
government that the sugars had bce articially col
ored for the purpose oi dcfrautiing the revenue IL
maintained. is poweress, under the aninoicty act
June .2. 1874 20 enforce fines penalties and for
FIXTURES against PERSONS property. unless til, is
proof of guilty knowledge o. fraud.
THE HAWAIIAN
fie affsrt Nff fstny aoI
TO operations Of the reciprocity treaty between
Hawaii and tine United states, concluded January 30,
ls,5 The value of goods shipped from the United
states 10 Hawaii for the year ended December 81,
Is75 he year before the treaty went into opcration
wxs........:..,... SYf7 2tD
And for the year ended December 81 lSi1.. sG2 ot5
Excess in 1877 over 1875. $sl5.545
The dutics surrendered by virtue of the
treaty goods imported into the United :
States for the Year ended December 81,
Is11 wcrc. !. =. sal 2lli