The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1878-12-05
THE FXN1NCES.

ANNUAL REPORT OF SECRETARY 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 specie resumption the Sec
rotary says:
The important duty imposed on this department
by the resumption act, approved Jan. II. 1875, has
been steadily pursued during the past year The
plain purpose of the act is to secure to all interests
and all classes the benefits of sound currency re-
deemable in coin. with the least possible disturb
anCe of existing rights and contracts Three of it's
provisions have been substantially carried into ex
eCuhOn by the gradual substitution Of fractional
coin for fractional currency by the free coinage Of
gold and by free banking. There remains only the
completion Of preparations for resumption in coin
on the LIST day of January 1879 and it's maintenance
thereafter upon the basis of existing law.
at the date of my annual report to Congress in
December, 1877, it was deemed necessary, as
preparation for resumption, to accumulate in the
treasury coin reserve OF at least 90 per cent of
United States notes outstanding. At that time it
was anticipated that, under the provisions of the
Resumption act the volume of United States notes
would be reduced to $500 600 600 by the 1st OF Jan
uary, 1873, thereafter and that reserve in
coin Of $4,000 1000 would then be sufficient Con
gress, however. III view OF the strong popular feel
ing against a contraction OF the currency. by the
act approved May ~ 1879 forbade the retirement
of any United States notes after that date leaving
the amount i'll circulation .661 01G. Upon the
department
acting, that ~ per Cent. of coin was the smallest
reserve upon which resumption could prudently be
commenced, IL became necessary to increase the
coin reserve to eco.
At the close of the year 1877 this coin reserve in
excess OF coin liabilities, amounted to SOB h16 $50 g6
Of which $i5,G0U,C eco obtained by the sale of
az por cent, and SIS 000C00 by the sale Of per
cent. bonds the residue being surplus revenue
Subsequently. on the 18th day of Apwl 1913 tbe
Secretary entered into contract with certain bank
ers in New York and London-the parties to the
previous contract of June 9, 1877. already comm
nc&ted to CongresSfor the sale of $50 900 900 40
per cont. bonds for resumption PURPOSES The
bonds We're sold at premium of ~ per cant and
accrued interest, less commission of u of / per
cent. The contract has been fulfilled, and the net
proceeds SOU CO. have been paid into the treas
ury in gold. The $500, 900 coin paid on the Hall
fax award 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 $5, 800 900, of which $685.
O00G00 were ~ per cent bonds, and $50 800 GOO 4
per cent. bonds. To this has been added the snr-
plus revenue from time to time. The amount of
coin held in the treasury on the 23d
day of November last, in excess Of
coin sufficient to pay all accrued coin
liabilities, $14l .SSS 100, and constitutes the
coin reserve prepared for resumption purposes.
This sum will be diminished somewhat on the 1st
of January next by reason of the large amount of
interest accruing that day in of the coin
revenue received meanwhile.
In anticipation of resumption, and in view of the
fact that the redemption of United States notes is
mandatory only at the office of the Assistant Treas
urer in the city of New York it was deemed impor-
tant to secure the cooperation of the associated
banks Of that city In the ready collection of drafts
on those banks and in the payment of treasury
drafts held by them. satisfactory arrangement
mas been made by which all drafts on the banks
helo by the treasury to be paid at the Clearing
house, ana all drafts on the treasury held by them
are to be paid to the Clearing House at the office of
the Assistant Treasurer in United States notes. and
after the LIST OF January United States notes are to
be received by them as coin. This will greatly
lessen the risk and labor of collections both to the
treasury and the banks.
Every step in these preparations for resumption
has been accompanied with increased business and
confidence The accumulation of coin instead of
increasing its price, as was feared by many, has
steadily reduced its premium in the market. The
depressing and ruinous losses that followed the
panic of 1878 had not diminished in 1875 when the
Resumption act passed; but every measure taken
in the execution or enforcement of this act has
tended to Tighten these losses and to reduce the
MUM on coin, so that now it is merely nominal.
The present condition of trade industry and
commerce, hereafter fully stated our ample
reserves and the general confidence inspired in our
financial condition, seem to justify the opinion that
we are prepared to commence and maintain re-
sumption from and after the first day of January,
A. d. 1879.
The means and 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 withdrawn in the process of
redemption, either by the sale of bonds, or theause
OF the surplus revenue, or of the notes redeemed
from time TO time.