New-York tribune., 1878-03-19
WdITING on THE SECRETARY.

His discretionary power is very great. Ills
action may hasten or check sales of bonds;
may raise or lower rates of exchange and the
price of gold may increase or decrease ex-
ports of gold on one hand, or of produce on
the other; may insure resumption, if he is
unimpedcd by further legislation, or may pre-
vent 1t. He can contract the legal-tender cir
culation rapidly and largely, as wo have
shown, or he can let it alone until the ap-
pointed day arrives for resumption. He can
greatly injure or powerfully sustain the public
credit.
The first intelligent exposition Of his present
intentions, given by our Washington cOrre-
spondent Oh Saturday, elicits some censure and
some commendation. Critics, however, do not
seem to have well considered the position OF
the Secretary He is bound to interpret all acts
as far as possible in harmony with each other,
and has no right so to cOnstrue the Silver Act
as to defeat the Resumption Act, or other pre-
vious legislation. Complaint is made because
he does not pay out silver dollars, as he did sub
sidiary COINS in exchange for legal-tenders. But
the subsidiary coins were not receivable for GUS
toms, and the issue OF coin dollars IN ex-
change for greenbacks would virtually make
the greenbacks receivable for Customs which
the laws, as they now exist, do nOt.permit.
Again, he is much blamed by some, who
seem to have the interests of bonanza specu-
lators near at heart, because he has not bought
from American producers as much as they ex-
pected, while it is reported that considerable
shipments of silver were made from England
last week on account of American purchases.
But the silver producers are able to combine
as well as the coal producers, and they have
so combined that the price of silver Is
relatively higher in San Francisco than in
New-York, and in New-York than in London.
Under any other than an artificial condition
of the market the range of prices would be
exactly the reverse. 1t is the duty of the Sec
retary to purchase, not in the highest but in
the lowest market. and if bonanza operators
make "corner," it is not only his right but
his duty to order silver from England, or
from Germany. As he has enough on hand
for all present needs he cannot be forced to
pay any price that spectators may demand
The pith of all criticism of this nature is
that the Secretary of the Treasury does not so
act as to enable somebody to get silver in
stead of, or at the value of grecnbacks and
then sell it at the value of gold. AS the silver
can be used instead of gold for payment of
duties, it would be a papable wrong if he
should, without necessity or requirement of
law, so use it as to cause It's depreciation. As
long as he issues no silver coin excepting rs
token or representative of gold, and the issue
is so small that every dollar thus put into cir
culation can be Immediately taken up in the
payment of duties. the depreciation cannot be
n,n1l Ac ho nut
silver coin only for the purchase of
bullion, or in exchange for gold coin,
the amount thus thrown into circulation can
be all employed each month in the payment
of duties, and yet the gold receipts of the
Treasury will not fall below the amount
needed for interest on the public debt. Thus
the customs receipts during the last fiscal
year were $780, $50, ,493, but the amount now
required for interest on the public debt is
500, ,537, ,2S3 yearly. This leaves a coin bal
ance of over $3S, 100000, and if the Treas
ury should coin the full limit allowed by law,
namely, $4.O0O,O00 per month, and should
receive back for customs every dollar thus
coined, the amount could not reach $3S, ,000,-
900 by January 1, the date fixed for resump-
ton, so that the remaining customs receipts,
necessarily in gold, would suffice to meet in
tcrest
According to the latest expOsltiOns Of his
purpose, the Secretary will not pay ont silver
in place of legal-tenders for the ordinary ex-
penses of the Government, until he is pre-
pared to pay all such expenses in silver. The
reasoning that 1t is not just to pay some
creditors in paper, while others receivo,a coin
for the present worth more in the market,
must comm end itself to the public sense of
fairness, but il is also important that the pay
ment of ordinary expenses in silver would in
yolye a sharp contraction Of currency, as
long as preipium on gold still causes the
silver paid oGt to be returned to the treasury
through the Custom Houses. This would
possibly cause disturbance, but certainly pO-
hticol opp~.itioI, and both are easily avoided
by postponing payments of that character AS
for payment of interest silver, that would
only increase enormously the sales Of bonds,
which are even now so Irge as to cause ap-
prehension for the future. 1t is the plain
duty Of the Secretary so to act as to sustain
and strengthen the credit Of the Nation at
this time. He would be more likely to pros
trate it IL he should either commence payment
of interest, or allow it to be supposed that he
expected presently to pay interest, In coin
which is worth to foreign holders much less
than gold.
Mr.. Sherman has acted very prudently and
wisely thus far, and his intentions as doubt
less correctly stated by our correspondent,