Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1878-11-25
SHERMAN'S SCHEME
OF RESUMPTION IN NEW YORK ONLY.
Playing Into the Hands Of the Gold
Brokers-He will Ask Congress
for Further Legislation to
Help Him Through.

WASHINGTON, November ga com
nrittee OF associated bankers OF Baltl
more, appointed to consider and report
upon the action expedient by the Balti'
more banks, expressing their sympathy
with and cooperation in resumption by
the Government of specie payments on
the lst of January, had an interview to
day 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 the redemption shall
take place in New York. The Secretary
in his reply said it would seem that il
we secure absolutely the convcrtibility
OF United States notes into coin at the
chief commercial city, We practically
secure the same convertibility at every
other place in the United States.
The questions prepared and submit
ted are:
l. Are United States legal tender
notes to be received at the Baltimore
Custom House on and after January l.,
1879, in payment Of customs duties at
their face value?
.. Will United States legal tenders be
received on and after January ], 1879,
at their face value in the purchase OF
United States bonds from the Treasurer?
;. Will United States legal tender
notes be redeemed in gold at the office
Of the United States Assistant Treasurer
in Baltimore ON and after January l.,
1879?
1. Will standard silver dollars be
issued in exchange for greenbacks in
Baltimore on and after January l, 1879,
and contrariwise? That is, will green
backs be issued for standard silver dol
lars?
;. Will there be an issue OF certiti-
Gates OF deposit OF silver with the As
sistant Treasurer OF the United States
at Baltimore, and will these certificates
be treated as silver coin in the payment
OF customs, duties and other indebted
ness to the government?
6. Will the government, after Janu-
arv |, 1879, continue the issuance Of
deposit OF legal-tonder notes, commonly
known as clearing house certificates?
Secretary Sherman replied: | in
ferred, gentlemen, from the appointment
YOU made with me, that some such
questions as you now propose would be
to me; but rs the law re-
quires me to officially report to Congress
in little more than week upon the
very topics you suggest, 1t would be
improper Tor me to now dis
cuss them in such detail as franknesS
would require. ! may say few things
which will substantially answer the OBJ
iect OF this interview. 1t is true that
actual redemption is confined by law to
the office of the Assistant Treasurer at
New York. This is 4 wise provision,
for it would be inexpedient to scatter
the redemption fund SO that it would
not bc readily available. Redemption
i'm 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 suggest
ed bv the Baltimore banks could he met
bv either of several eXpedients.
|. This Department can now, by ex-
press provision of law, sell or exchange
coin for yroenbacks. This has been done
for wears ut Boston, Baltimore, Chicago,
and other leading ports, at the same
premium for gold as the market at New
York. This could be continued after
January LIST, when at New York the
rate will be par, and, therefore, the same
elsewhere.
>. United States notes, being at parity
with coin, can, think, under existing
law, be received for customs duties, and
this is the only purpose for which com
is required by law to be paid to the Gov
ernment by citizen, and it is u purpose
for which it is usually desired. If there
is any doubt upon this point Congress
may expressly authorize it.
s. Ii United States notes are taken for
duties in New York, they must be taken
for duties i'll every port in the United
States. otherwise an unconstitutional
would he made in favor OF
one port over other ports in the United
States.
T. After resumption United States
notes must he held and maintained AT
par for all purposes in all parts of the
tinted States. They can lie transported
easily and readily, while coin cannot
be 81 cheaply moved, and it would seem
that. ii We secure absolutely the con-
yertibility of United States notes into
coin at the chief commercial city, We
secure the same converti-
hilty at every other place in the United
States. Exchange is usually in favor OF
New York. but the temporary premium
elsewhere will be insignificant, and can
not exceed the small cost of transport
inr United States notes tn New York.
That NAV and has occurred when specie
rayments were the rule everywhere.
and is less likely To occur now, when
We have a uniform paper circulation
in all parts OF the tnited states.
NV general answer, therefore, 10 you
is, that the United States Will MAINTAIN
lis notes at par in coin in all parts OF
the United States, and will do so by the
redemption of such notes as are present
ed To the Assistant Treasurer at New
York and 10y the receipt OF United
States notes for both customs duties
and bonds. | think this can he done
without change of the law. But, as to
this, Congress must I've the judge. The
Treasury will treat United States notes
and coin rs an exact equivalent in all
transactions with the Government, and
then all business everywhere in the
United States will adapt itself TO the
same standard. Having stated this
much. | do not think that ought to 20
further. and. perhaps, in my desire to
be frank with YOU, may have broached
questions that should await the opening
OF Congress.
iy,G GaHf0rnfa