Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1878-12-05
THE FINANCES.

AWFUL IMPORT or SECRETfHl' SHERMAN.
The annual report of the Secretary of the
Treasury upon the state of the finances of the
country is an unusually lengthy document
Upon the subject of spec,e resumption the Sec
rotary says:
The important duty imposed this department
by the Resumption act. approved Jan. II. 1870. has
been steadily pursued during the past year. The
plain of the act is to to all interests
and all Glasses the benefits Of sound currency,
deemable in CON- with the least possible disturb
ance OF existing rights and contracts Three OF It's
provisions have been substantially carried into
ecuE.on by the gradual substitution OF fractional
coin for fractional currency by the free coinage OF
gold end by free banking There remains only the
completion of PREPARATIONS for resumption in coin
on thu s' day OF January 1879. andits maintenance
thereafter upon thu basis of existing law.
At the date of my annual report 10 Congress IN
December. 1877. il was deemed necessary as
preparation for resumption. accumulate in the
treasure coin of at least ~ per cent of
United states notes outstanding. AT that time 1t
anticipated that. under the provisions of the
Resumption act, the volume of United States notes
would be reduced to $500 0DOu0e by the lst OF Jan
uary. 1873 thereafter. and that reserve in
coin of Si20 900 900 would then b. sufficient. Con
gress however, in view of the strcng popular feel
ing against contraction Of the currency, by the
act approved May 81 1915 iorbac$r the retirement
of any United States notes after that date leaving
the amount in circulation S3i6.tioi0l6. Upon the
principle ot safety upon which The department
acting. that 40 per cent ~ coin the smallest
upon which resumption Sooid pridentiy be
commenced. II became necessary 50 increase the
coin restrve 10 SissUV.0U0.
AT the closc Of the year 1877 tbs coin rServe in
excess of coin liabilities, amounted ~ 500, 16.r5 81
of which SiJc00.cG0 were obtained by TIN sale of
4l per coat. and $4,000, 600 by the sale of per
cent. bonds the residue being surplus revenue
subsequently,. on the nth day OF April. 1878 the
Secretary entered into contract with certain bank
in New York and London--the parties to the
previous eonfrsct of June 9. 1877. already commu
nicated 10 Congrrtsfor the sale Of $4,000 900 ~
per cent bonds for resumption purposes. The
bonds we've sold at premium OF III per cent. and
accrued Enterest. lsss commission Of = OF per
cent. TIE ronfract has been fusflled. and the
ury in geld. The So 500. 900 coin paid on the Hall
fax 1wara have been replaced by the sale of that
amount Of per cent bonds sold for resumption
purposes. making the aggregate amount OF bonds
sold for these purposes $40 500 900, of which St5
CoJooJ Az per cent. bonds, and 10000 600 4
Per cent bonds To this has been added the snr
;evs revenue from time to tine. The amount OF
coin hald in the treasury on the 23d
day of November last, N III
coin sufficient to pay all accrued coin
liabilities was et4l SSS loo and constitutes the
coin reserve prepared tor resumption purposes
This will be diminished somewhat on the LIST
of January next by reason OF the large amount of
interest accruing that day In OF the coin
revenue received meanwhile.
The Secretary then briefly recitcs some of the
leading steps taken in anticipation of resump-
ton, and suggests that, for the purpose of main
tanning it. the power to sell bonds conferred by
the Reminding act will continue after resump-
ton. He further says
After resumption. the distinction between coin and
United States notes should be, as far as prac-
ticable. abandoned in tho current affairs Of the
Government: and, therefore, no coin certificates
should be issued except where expressly requie'
by the provisions Of law, as ~ the Ease
of silver certificates. The gold certificates
hitherto issued by virtue of the discretion con-
ferred upon the Secretary will not be issued after
the LIST Of January next The necessity Tor them
during a suspension of specie payments is OBVIOUS,
but no longer exists when NY law every Chiteo
States note is. in effect, coip ceIuhcae. Inc "is
purpose that could be subsefrcd by their issue mere
after would be enable PERSONS to convert their
notes into coin certificates. and inns cohtract ''o
currency aud hoard gold IN the vaults OF the treas
,,rv without the Inconvenience risk of lis Gus
to,iy For convenience United States notes OF me
same denomination as the larger coin ccriincatcs
will be issued. .,..s.
BY existing law customs duties ana 'hc inicIcs'
of the public debt are payable IN COM ana Por-
ton of The duties was spccihcaily pieaaeu a. a
spccla fund for tho payment "f the interest mus
making ono provision dependent upon thc other.
AS we cannot with due regard 10 the p"biic honor,
repeal the obligation 10 pay com we onsh' 40. ~
impair REPEAL the means prov''eu - psov a;'
coin. When happily our notes are eIua, 10 COIL o,..
they will be accepted as roin pom Wy ihe puu,ie
creditor and by tho Government. pu, .his aecsl,
anre should he left to the option OF the Respective
parties and the legal right OH boh stdes 20 oeinahu
r,in sbouId h. preserved inYiolatc.