Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-12-04
RESUMPTION OF SPECIE PAYMENTS.

RESUMPTION OF SPECIE PAYMENTS.
The important duty imposed on this depart
menu by the resumption act, approved Jan. IA,
1875, has been steadily pursued during the mast
year. The plain purpose of the act is to secure
to all interests and all classes the benefits of
sound currency, redeemable in coin. with the
least possible disturbance of existing rights
and contracts. Three of its provisions have
been substantially carried into execution bv
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 ex-
listing law.
At the date of my annual report to CONGRESS-
IN December, 1877, it was deemed necessary as a
preparation Tor resumption to accumulate
IN the treasury coin reserve of at least 30
per cent. of the amount of United States notes
outstanding. At that time it was anticipated
that under the provisions of the resumntion
act the volume of United States notes would
be reduced to $500,000,OOO by the LIST day of
January; 1879, soon thereafter, and that a
reserve in coin of 100000, 900 would then he
sufficient. Congress, however, in view of the
strong popular feeling against contraction of
the currency by the act approved May 81. 1878.
notes after that date, leaving the amount in
circulation 1916, 6sl, DIG. Upon the principle
OF safety upon which the department was act
ing, that ~ per cent. of coin was the smallest
reserve upon which resumption could prudent
~ pe commenced, 1T became necessary to in.
crease the coin reserve 70 $138. 900 600.
At the close of the year 1877 this coin re-
serve, IN excess of coin liabilities, amounted to
s65, Ol6 050:96 of which $15,0OOOO0 were OBJ
tanned by the sale of ~ per cent. and S25
100000 by the sale Of per cent. bonds. the
residue being surplus revenue. Subsequently,
on the 18th day of April, 1878, the secretary
entered into contract with certain bankers in
New York and London-the parties to the pre-
vlous contract Of June 9th, 1877, already COM
inundated to Congress-for the sale of $50
OOO,OOO ~ per cent. bonds for resumption
purposes. The bonds were sold at a premium
OF ~ per cent. and accrued interest less
COMMISSION OF one-half of per cent The
ceeds, $50, 100000, have been paid into the
treasury in gold coin. The $5, SOC, 900 coin
paid on the Halifax award have been replaced
by the sale OF that amount Of per cent. bonds
sold for redemption purposes, making the ag-
gregate amount of bonds sold for these pur-
p poses S95, 1000 900, of which $65, 100000 were
~ per cent. bonds, and $3.50, 500, 600 per cent.
bonds. To this has been added the surplus
revenue from time to time. The amount of
coin held IN the treasury on the 23d day of No
Vember last, in excess of coin sufficient to paw
all accrued coin liabilities, was $141, 1888, 100.
anu constitutes the coin reserve prepared for
resumption purposes. This sum will be d.
minished somewhat on the LIST of January next
by reason of the large amount of interest &C
cruing on that day in excess of the coin reye-
nue. receivable meanwhile.
In anticipation of resumption and in view
of the fact hat the redemption Of United States
notes is mandatory only at the Office of the as
sistant treasurer in the city of New York. it
was deemed important to secure the co-opera-
ton 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. A satisfactory arrangement has been
made by which all drafts on the banks held bv
the treasury are to be paid at the clearing