National Republican., 1878-12-03

nH0 not OlUlnI3ntu III 1000 Wnoh tuo TtsuTnD-
tion act passed; but every measure taken In
the execution or enforcement Of this act has
tended TO tighten these losses and to reduce
the premium on coin, so that now 1t Is merely
nominal. Tho present condition of our trade,
industry, aud commerce, hereafter more fully
stated, our ample reserves aud tho general
confidence inspired in our financial condition
seem to justify the opinion that we are pre-.
pared to commence and maintain resumption
from and after the 1st day Of January, A. ID.
1879.
The means aud 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 with
drawn In the process Of redemption, either by
the sale Of bonds or the use of ths surplus rov.
enue, or Of the notes redeemed from timo to
time.
The power to sell any Of the bonds described
In the refunding act continues after as well rs
before resumption. Though u may not be
often used II Is essential to enable this Depart
ment to meet emergencies. by It's exercise It
Is anticipated that tho Treasury at any Nmo
can readily obtain coin TO reinforce the reserve
already accumulated. United States notes.
must, however, be the chief means under OK
isting law with which tho Department must
restore coin and bullion when withdrawn Ia
process Of redemption. The notes, when re.
deemed, must necessarily accumulate In the
uHtll tntlT supcftOf use anu COIL
venteucc for circulation enables the Depart
ment to exchange them at par for coin or bul.
lion.
Tho act Of May ~. 1873. 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 rc
tired, cancelled. or destroyed, but shall be
rcissued and paid out again and kept in circu.
lation.
The power to reissue United States notes was
conferred by section 1913, Revised Statutes
and was not limited by the resumption act. As
this, however, was Questioned, Congress wise.
ly removed the doubt.
Notes redeemed arc like other notes re.
ceived into the Treasury. Payments OF them
eau be made only IN consequence Of appropria
tions made by law, OF for the purchase of bul-
lion, or for the rrfuLding of the public debt.
The current receipts from revenue are suii.
cicnt to meet the current expenditures Us well
as the accruing interest on tho plblic debt.
Authority is conferred by the rofuniing act to
redeem per cent bonds rs they become rr.
deemable by the proceeds Of tho sale Of bonds
bearing - lower rate OF interest. The United
States notes redeemed under tho resumption
act are, therefore, the principal means pro.
vidcd for the purchase of bullion OF coin with
whici, To maintain resumption, but should only
| be paid out when they can bo used TO replace
| an equal amount of coin withdrawn from tho
resumption fund. They may, II Is true, be used
for current purposes like other money, but
when 50 used their place Is flled by mouey re-
ceived from taxrs or other sources of revenue.
| In daily business no distinction need be
| made between moneys from whatever sDHr1e
| received, but they may properly be applied 10
| any of the purposes authorized by law. No
| doubt coin liabilities, such rs interest or prin
| cipal of the public debt, will be ordinarily paid
aud willingly received In United Stites 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 Colo
RADIO and North Carolina, and arrangements
are being perfected to purchase bullion in this
way in all the mining regions of tho United
States.
By the act approved June 8. 1873, the Sec
retary Of the Treasury Is authorized to con-
| stitute any superintendent of a mint or as
| sayer OF any assay office an assistant treasurer
OF the United States to receive gold coin or
bullion on deposit. BY the legislative appro-
| priation bill approved July TO- 1873. the Secre-
tary of the Treasury Is authorized to issue
| coin certificates in payment to depositOrs oi
bullion at the several mints and assay offices
of the United States. These provisions, in
| tended to secure TO the producers 81 bullion
more speedy payments, will necessarily bring
into the mnts aud Treasury the great body OF
| tue precious metals InGu III tue 1 nltCu
aud will tend greatly 10 tho cay and steady
supply Of bullion for coinage. United States
notes, when at par with coin, will be readily
! received for bullion Instead of coin certificates
| and with great advantage and convenience to
the producers.
Deposits Of coin In the Treasury will, no
doubt, continue to DO made alter the lst oil
January us heretofore. Both gold and silver
| coin, from It's weight and bulk, will naturally y
| sock slTIt "A 4lt lRFDsit Nliln nQLps rnlppula-
| bic in coin, from thcir superior convenience,
| will be circulated instead. After resumption
tho distinction between coin and United
States notes should be, as far rs praatiCabe,
| abandoned in the current Affairs oil the Gov
CrnmGnt, aud therefore no coin certificates
| should be issued except where expressly re-
| quircd by tho provisions of law rs in tho ease
Of silver certificates. The gold certificates
hitherto issued by virtue Of the discretion
| conferred upon the Secretary will not be issued
| after the lst Of January next. The necessity
| for them during q suspension of specie pay
| meuts is obvious, but no longer exists when
| by law every United States note Is in effect
II coin certificate The only purpose that could
be subscrvud by their issue hereafter would be
to enable persons to convert their notes into
coin certificates, and thus contract the cur.
| TuUcy and hoard gold In tho vaults of tho
| Treasury without the inconvenience or risk Of
its custody. For convenience United States
| notes Ol tHe same DECENTRALIZATION ~ tOe larger
coin certificates will be issued.
by existing law customs duties aud the in
tercst of the public debt are payable in coin
and u portion Of the duties was specifically
pledged rs u special fund for the payment oil
the interest, thus making one provision depend
cut upon the other. As we cannot, with due
regard 10 the public homOr, repeal the obliga
ton 10 pay coin, we ought not to impair or rc
peal the means provided toprucuro coin. When
happily, our notes arc equal To coin, they viii
be accepted as coin, both by the public creditor
and by tho Government; but this acceptance
should be left to the option of the respectiv,
parties, and the legal right on both sides t
demand coin should he preserved inviOlnte.
The Secretary IS Of the opinion that a chang
of the law Is not necessary to authOri21 th
Department to receive United States notes fol
customs duties on aud after the lst day Of Jau
uury, 1879, while they are redeeniable aud ar
redeemed on demand IN coin. After rcsump
ton II would seem u useless Inconvenience Il
require payment Of such duties In coin rathe
than in United States notes. The resumption
act, by clear implication, 50 far modiies pre-
vious laws US to permit payments in Unite'
States notes rs well rs In coin. Tho proviso
for coin payments was made in the midst q
war when the notes were deprecated and tn
public necessities required an assured ruvcpu
IN coin to support tho public credit This alOn
| iustinrl tlp refusal by the (iuyeIDuUnt [