The New Orleans daily Democrat., 1878-11-24
SPECIE RESUMPTION.
ANSWER or SECRETARY SHERMAN TO
THE QUESTIONS OF a RAhTH-
MORE HREHEe4 ATHnN

| ASs&Es NEhH1sT AREbMs
| EEOw asPeenbRcks May he Exchanged fnr
| Coln After January n, Aag0-The Fay
| ment of Customs, gsutBes and Wonas
| WASHINGTON, Nov. 23--A delegation of
| Baltimore bankers called upon Secretary
| Sherman this morning and submitted the
following questions to him:
| |. Are United States legal notes TO be re-
| ceived at the Baltimore Custom House on
and after January [, 1879, in payment Of Gus
toms duties at their face value
2. VIII United States legal tenders be re-
! cceived on and after January |, 1879, at their
face value in the purchase Of United States
bonds from the treasury
3.-WiH United States legal tenders be re-
deemed In gold at the office Of the United
States. assistant treasurer In Baltimore, on
| and after January |, 1879 7
| 4. Will the standard silver dollar be Is
sued IN exchange for greenbacks in Baltimore
| on and after January /, 187o and contrari-
| wise-that Is, will greenbacks be issued for
| the standard silver dollar?
| 5. Will there be An issue Of certificates for
| the deposit. OF silver with the Assistant
Treasurer Of the United States at Baltimore,
! and will these certificates be treated as silver
coin In payment Of customs duties and other
Indebtedness to the government
g. Will the government after January |,
1879, continue the issue Of certificates Of de-
pnsits of legal tenders, commonly Known as
clearing house certificates?
Or course. Mr.. Secretary. these questions
are suggested In consequence OF the law pro-
viding that redemption shall take place in
New York. 1t Is not, perhaps, limited to
New York but still that city Is named as the
place Of redemption, and Baltimore ,anknrs
therefore, have been very much at loss to
know how to act aud what will be the effect
provided other points than New York were
excluded. This is very important, in view Of
the necessity Of keeping gold accounts { II
customs duties with many Of our leading i'm
porting houses
Secretary-I Inferred gentlemen. from tho
appointment you made with me that some
such 9'ostion as you now propose would be-
submitted to me. but rs the law requires me-
officially to report to Congress in little moro
than q week upon tho very topics YOU slIg-
gest 1t would be manfestly improper to now
discuss them in such detail as franknnss
would require: but may say few things
which substantially answers the subject Of
this interview. 1t is ttu0 that actual redemp-
ton is confined by law TO the office Of the AS
sIstaut Treasurer at New York This is q
wise provision, for it would be inexpedient to
scatter the redemption fund SO that it would
not be readily available for redemption in
New York. the chief commercial city Of the
country. This is the main thing and car
ries with it equality in all parts Of the United
States.
The difficulties suggested by the Baltimore
banks could be met by either Of the several
eXpedients:
l. This department can now, by express
greenbacks. This has been done for years.
At New York, Boston, Baltimore Chicago
nnd other leading points 1t is ct premium
for gold at the market rate at New York.
This could be continued after January l. when
at New York the rate will be par, and there
fore the same elsewhere.
Z. United States notes being at par. coin
can, I think, under the law be received for
customs duties, and this is the only purpose
for which coin can be required by law to be
paid to the United States government by the
citizen, and it ls the purpose for which it is
usually desired If there is any doubt on this
3. If the United States notes are taken
for duties in New York, they must be taken
for duties in every part Of the United States
Otherwise unconstitutional preference would
be made Of one port over other ports In the
United States.
4 After resumption United States notes
must be hold and maintained at par for all
purposes in oil parts OF the United States. |
They can be transported easily and speedily, |
while coin can't be SO readily and cheaply
moved.
It would SEEM II VIC secure absolutely The
convertibity Of United States notes into |
coin at the chief commercial cities, We pract- |
cally secure the same conyertibility at every
other place In the United States. Exchange
Is usually In favor Of New York, but the tempo |
rary premium elsewhere will be insignificant
and cannot exceed the small cost Of trans
porting United States notes to New York |
nat may anu nt3S occurred When specie pay |
1nentS were the rule ever rywhere. and Is less |
likely to occur now, when We have q uniform |
paper circulation current in all parts Of the
United States.
My general answer, therefore. to you Is that |
the United States will maintain IFS notes at |
par in coin In all parts Of the United States, |
and will do SO by the redemption Of such |
notes as are presented to the Assistant Treas |
urer ut New York. and by receipt Of United
States notes for both customs duties and
bonds, | think this ran he done without |
q change IN the law, but as to this Congress
must be the Judge. The treasury will treat
United States notes and coin as an exact
equivalent In all transactions with the gov |
ernment, and then ell business everywhere in |
the United States will adapt itself to the same
Having said this much, don't |
think ought to go further, and perhaps, in
my desire to be frank with you, / may have
broached questions that should await the
opening Of Congress.