New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-09-18

THE TREASURY Plan.
Secretary Sherman has authorized free pay
ments of standard silver dollars for ordinary
expenses of the Government Discussing
agents and paymasters are requested to pro-
"cure standard silver dollars, where prach-
"cable, for disbursement :" Assistant-Treas-
urers and National bank repositories are in
structed to furnish the coin to disbursing
officers, manufacturing and other establish
ments, and other banks and bankers for dlstrl-
button This is only another mode of exchang-
ing silver for legal-tendcrs-less direct, less
sure and less rapid than the one proposed
in the shOrt-lvcd orders of the Sd and Ith
instant, but calculated TO reach the
same end. If Mr.. Sherman or other
members of the Cabinet think that this mode
is legal, while the other was illegal, we only
wish that the way supposed to be legal had
been chosen in the first place The order of
the 18th was everywhere hailed by Mr.. Sher-
mans friends and supporters as most impOr-
tant step toward resumption. Its sudden Ie-
versal has so greatly stimulated and encour-
aged the enemies of the public faith and of
sound currency that II would have been far
better if no such order had ever been issued.
After this most unfortunate pei Torrance, the
new order will do much less good, financially
or politically, than it might have done If is
sued at the outset.
Mr. Sherman is represented by one set OF
correspondents as surprised and indignant be
cause his right-abOut-face movement was in
terpreted as due to change Of purpose. At
the same time, another set of correspondents
represent him as conceding 10 Greenback ia
natics a great part of their demands, as
opposed to the National banking system, and
as appealing for sympathy to enemies Of the
RESUMPTION Act, on the ground that, though
obliged to execute that law, he does not think
it wise, and is not responsible for it. The best
and the only sufficient answer TO these con-
Trajectory statements will be found in
Mr.. Sherman's acts, and the new order in
regard to silver certainly does not justify
the belief that he is surrendering TO
the inhatiOnists Nevertheless, Secretary
Sherman has been misrepresented, if at all,
by his own orders. If his course is misunder-
stood, he should remember that 1t does not
seem TO have been clearly understood by him
self, if his orders since September l are a
test. If in any respect he lacks the entire
and unreseryed confidence of the friends of
resumption, it is because he has seemed, from
his acts aud reported conversations, to court
the approval of the enemies Of resumption.
The answer which he makes by ordering the
free disbursement of silver will be effective
in proportion rs that course is effective; if it
brings prompt equalization of notes and gold,
little fault will be found as to the method.
This is no time for mncing words. There
are two parties in this country. One wants
specie resumption, speedy and permanent;
the other wants to defeat resumption. Both
know that all the coin in the country and all
the notes in the country cannot circulate at
the same time as currency. If both are 10
circulate together at ALL the aggregate volume
may be much larger than the present volume
of notes-so that expansion aud not contrac-
ton will result-but it cannot possibly bo as
large as the present volume Of notes and coin
both. Some part of the notes will
have to get out of the way, in
order to have larger amount of coin
substituted for them. Friends of resumption
knowing this, want to see the Government
begin to take out of the way enough of the
notes to make room for expansion by the free
circulation of coin. Enemies of resumption
with equal reason, want to browbeat or cOerce
the Secretary to attempt to force coin into
circulation without any withdrawal of notes.
! knowing that resumption must then fail.
! Whenever Mr.. Sherman proposes to substitute
coin for notes in circulation, and notes for coin
| in the reserves held by the Treasury, every
friend of resumption knows that he
is on the right track. When he revokes
such an order, every foe Of resump-
ton rejoices. The cry about " contraction
is inane and silly; substitution of coin for pa
per dollars does not contract the volume of
the currency, but, whenever carried far enough
to draw the whole body of coin into use, will
greatly expand the currency.
! Secretary Sherman's latest order is step in
the right direction. For the silver dollars paid
out will leave a corresponding amount of pa
per dollars remaining in the Treasury. That
effects the substitution of coin for paper.
Then the silver will flow back instead of gold
| for duties. as long as any premium remains
on gold. That will effect the substitution of
gold for paper. At the same time, notes
will continue to go into the Treasury for in
ternal taxes as long as premium on gold
draws silver into custom-houses. Thus there
will soon be fewer notes and more gold in