The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1878-11-28
SHERMAN ON REDEMPTION.
THE QUESTIONS PRoPoUNDED TO HIN BY
THE BALTIMORE BANKERs AND HIS An

THE QUESTIONS PRoPoUSDED To HIM BY
THE BALTIMORE BANKERs AND HIS An
swERs THERETO.
WASHINGTON, November pa COM
| mittee Of the associated banks OF Baltimore,
appointed to consider and report upon &C.
ton expedient BY the Baltimore banks, are
expressing their sympathy with, and CO.
operation in, resumption, by the govern
ment, OF specie payment on the first OF JAN
uary, had an interview with the
SECRETARY OF THE TREASURY
and submitted a series of questions. The
chairman said the questions were suggested
in consequence of the law providing that
| redemption shall take place in New York.
The following questions were prepared AID
submitted
FIRsT.-Are United States legal tender
notes to be received at the Baltimore Gus
tom House on and after January lst, 1879,
in payment OF custom duties a, their face
value?
SEcoND.-Will United States legal tender
notes be received on and after January lst,
1879, at their face value in purchase OF u.
s. bonds from the Treasurer?
THIRD.-Will United States legal tender
notes be redeemed in gold at the office of
the L. S. assistant treasurer in Baltimore
on after January LIST, 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.-WilI there be an issue Of certii-
Gates of deposit of silver with the assistant
treasurer of the United States at Baltimore,
and will these certificates be treated as sill
yer coin in payment of custom duties and
other Indebtedness to the government?
SIxTH-Will the government after JAN
uary LIST, 1879, continue the issuance Of cer-
tifcates of deposit of legal tender notes
commonly known as clearing house certifi-
Gates
SECRETARY SHERMAN REPLIED,
81 inferred, gentlemen, from the appoint
ment you made with me that some such
questions az you now propose would be sub
mitted to me, but as the law requires me,
officially, to report to Congress in little
more than a week, upon the very topics
you suggest, it would be manifestly improper
for me to now dis uss them in such detail
as frankness would require, but | may say
wer the object of this interview 1t is true
to the Office of the Assistant Treasurer at
would be inexpedient to scatter redemp-
available.
REDEMPTION IN NEW YORK,
the chief commercial city of the country,
establishes the equality of United States
notes with coin, and this is the main thing,
and carries with it their equality in all
parts OF the United States. The difficulties
suggested by the Baltimore banks could be
met by either ef the several expedients:
FIRST, This department can now, by ex-
press provision of the law, sell or exchange
coin for greenbacks. This has been done
tor years at Boston, Baltimore, Chicago,
and other leading points, at the same pre-
MUM for gold as the market rate at New
York. This could be continued after JAN
uary 1st, when, at New York, the rate will
be par, and therefore the same else-
where.
SECoND-United States notes being at par
with coin, can, i think, under the existing
law, be received for customs duties, and
this ia the only purpose for which coin is
required by law to be paid TO the govern
ment by citizen, and it is the purpose for
which 1t is usually desired. If there is any
doubt upon this point, Congress may e1-
pressly authorize it.
THIRD-If United States notes are taken
for duties on New York they must be taken
for duties In every part of the United
States. Otherwise an unconstitutional
preference would be made in favor of one
port over other ports in the United
States.
FOURTH After resumption, United |
States notes must be held and maintained |
at par for all purposes in all parts of the |
United States. They can be transported |
easily and speedily, while coin cannot he
so readily and cheaply moved. 1t would |
seem that if We. secure absolutely the con- |
vertibility Of United States notes into coin
at the chief commercial city, We practically |
secure the same convertibiltiy at every |
other place in the United States. Exchange |
is unusually in favor of New York but
temporary premium elsewhere will be in
significant and cannot exceed the email |
cost OF transportation of United States notes
to New York-that may occur, and has
when specie payments were the
rule everywhere, and is less likely to occur
now, when we have uniform paper circu-
lation, current in all parts of the United
States.
Ny general answer, therefor, to you il,
hat the United States will maintain its
rates at par in coin in all parts of the Uni
ed States and will do so by the redemp-
ion of such rates as are presented to the
Assistant Treasurer at New York, and by
he receipt of the United States rates for
10Th custom duties and bonds. | think
his can be done without change of law,
,uts AS to this, Congress must be the judge.
The Treasury will treat United States rates
Ind coin as an exact equivalent in all
with the Government, and
Ill business everywhere in the United
states will adopt itself to the same stand
nd. Having stated this much l do not
hiDk that ought to 20 any further, and
'erhaps in my desire to be frank with you
may have brooched questions that shonld
va,t tho oneuinU of CnnoresS |