The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1878-11-29
SHERMAN ON REDEMPTION.
The Questions prOpOunded to him by the
Baltimore Bankers and his
answers theratn.


WASHINGTON, November ga com
mittee of the associated banks of Balti-
more, appointed to consider and report
upon action expedient by the Baltimore
barnks, are expressing their sympathy
with, and cooperation in, resumption,
by the government, of specie payment on
the first of January, had an Interview
with the Hon. Secretary of the treasury
and submitted a series of questions. The
chairman said the questions were sug-
gested in consequence of the law provid-
ing that redemption shall take place in
New York. The following questions
were prepared and submitted:
FIRsT.-Are United States legal tender
notes to be received at the Baltimore Gus
tom house on and after January list,
1879, in payment of custom duties at
! their face value?
SRCOND.-WilI United States legal ten
der notes be received ON and after jan
uary LIST, 1879, at their face value, in pur,
chase of Z. 8. bonds from the treasurer ?
THIRD.-Will United States legal ten
der notes be redeemed in goM at the of
flee of the U. S. assistant treasurer in
Baltimore on and after January 1st, 1879 ?
FOURTH.-Will standard silver dollars
be issued in exchange for greenbacks in
Baltimore on and after January list.
1879, and contrary wise, that is will
greenbacks be issued for standard silver
dollars?
FIFTH-Will there be an issue of GER
tificates of deposit of silver with the as
sistant treasurer of the United States at
| Baltimore, and will these certificates be
treated as silver coin in payment of Gus
| tom duties and other Indebtedness to the
government
SIxTH.-Will the government after
January LIST, 1879, continue the issuance
of certificates of deposit of legal tender
notes commonly known as clearing house
certificates?
SECRETARY SHERMAN REPLIED:
81 inferred, gentlemen, from the ap.
pointment you made with me, that some
such questions as you now propose
would be submitted to me, but as the
law requires me, officially, to report to
congress, in little more than week
upon the very topics you suggest, ii
would be manifestly improper for me to
now discuss them in such detail as
frankness would require, but 1 NAV saw
few things which will substantially an
swer the object of this interview. 1t is
true that actual redemption is confined
by law to the Office of the assistant treas
urer at New York. This is a wise pro
vision, for it would be inexpedient to
scatter redemption funds SO that they
would not be readily available.
REDEMPTION IN NEW YORK,
the chief commercial city of the country
establishes the equality of the United
States notes with coin, and this is
the main thing, and carries with it their
equality in all parts of the Unithd States
The difficulties suggested by the Balti-
more banks could be met by either of the
several expedients:
FIRsT.-This department can now, by
express provision of the law, sell or ex.
change coin for greenbacks. This has
been done for years at Boston, Balti.
more, Chicago, and other leading points,
at the same premium for gold as the
market rate at New York. This could
be continued after January LIST, when, at
New York, the rate will be par, and
therefore the same elsewhere.
SECOND.-United States notes being al
par with coin, can, I think, under the ex-
isting law, be received for custom du-
ties, and this is the only purpose for
which coin is required by law to be
paid to the government by citizen, and
it is the purpose for which it is usu-
ally desired. If there is any doubt up
on this point, congress may expressly
authorize it.
THIRD-If United States notes are ia
ken for duties on New York they must
be taken for duties in every part of the
| United States. Otherwise an unconsti-
tutional preference would be made in
favor of one port over other ports in the
United States.
FoURTH-After resumption, United
Safes notes must be held and maintain.
ed at par for all purposes in all parts of
the United States. They can be trans
ported easily and specify, while coin
cannot be so readily and cheaply moved.
1t would seem that if we secure ALSO
lutely the convertibility of United States
notes into coin at the chief commercial
city, we practically secure the same con-
vertibility at every other place in the
United States Exchange is usually in
favor of New York but temporary pre-
MUM elsewhere will be insignificant
and cannot exceed the small cost of
transportation of United States notes to
New York-that may OCCUR, and has oc-
CURED when specie payments were the
rule everywhere, and is less likely TO
occur now, when we have a uniform
paper circulation, current IN all parts of
the United States.
My general answer, therefore, to you
| is, that the United States will maintain
i its notes at par in coin in all parts of the
United States and will do SO by the re-
demption of such notes as are presented
TO the assistant treasurer at New York,
and by the receipt of the United States
notes for both custom duties and bonds.
l think this can be done without a
change of law, but as to this, congress
must be the judge. The treasury will
/ treat United States notes and coin as an
exact equivalent in all transactions with
the government, and all business every
where IN the United States viii adapt
itself to the same standard. Having
stated this much do not think that
ought to 60 any further, and perhaps in
nv desire to be frank with you ] may
have broaehed questions that should
await the opening Of congress.