The New York herald., 1878-11-24
RES L MPTION.
Secretary Sherman's Explanations to
Baltimore Bankers.
REDEMPTION In NEW YORK CITY.
Gresnbacks Taken for Duties and 10
Payment for Bonds.
EQUALITY OF NOTES AND COIN

wAsHINGToS. Nov. 49, 1873.
Secretary Sherman this afternoon gave audience to
q committee of Baltimore inanciers, with whom the
subject of resumption was discussed. This
mite consisted OF Messrs W. W. Taylor. president OF
the National Union Bank; Mr. John Lauren Norris.
president of the First National Bank and Mr. B. A.
Nickers president OF the Marine State Bank During
the interview which private, it was agreed that
the Secretary should order his private secretary TO
write the substance thereof be submitted to the
visiting bank at halt past two P. NJ, and. when
approved by them lie made public The following.
them is the roport of the interview between the dele
CATION and the Secretary
a QUESTIONS FOR THE SECRETARY.
Mr.. Taylor said Mr. Secretary, q meeting ot
the ocated banks Of Baltimore. convened Tues
day last committee composed of Messrs Norris.
Taylor and vi,kcrs, was appointed to consider and
report at adjourned meeting what action is expe-
dent to he adopted by the Baltimore banks and ex-
pressing their sympathy with and cooperation in the
resumption by the government of specie payments on
the lst of january next. In pursuance OF this
duty have deemed it necessary to ask for
this interview with you and hope to elicit
from you such definite information the subject as
will enable and the banks generally to act dis.
creetly and undcrstandngly. We have. therefore,
to submit to you:-
Fira-..re United States legal tender notes to be
received at the Baltimore custom House and after
January !, 1879. in payment OF customs duties al
y.coai-wi United States legal tenders be received
and after January 1872 At their face value in ths
purchase OF United states bonds from the Treasury?
Thiyd-Wil United States legal tender notes be
deemed i'll gold at the office of the United States
Treasurer in Baltimore and after January l, 1881
Eourth-Will standard silver dollars be issued in
exchange for greenbacks in Baltimore on and after
January 1872 and eontrariwise; that is will green
backs be issued for the standard silver dollars!
EIfh-Wi 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 silver coin in payment OF customs
duties and other indebtedness to the government?
SirN-Wi the government after January !. 1879.
the of certificates of deposit of legal
tender notes. commonly known as clearing house GER
tihcates !!
OF course Mr. Secretary, these questions sug-
gested in consequences of the law providing that
demption shall take place in New York. II is not
perhaps limited to New York but still that city is
named the place redemption. and the Baltimore
banks therefore. have been very much at loss to
know how to act and what might be the effect pro-
vided other points than New York We're excluded.
This is especially important in view of the necessity
of keeping gold accounts for customs duties with
many of our leading importing houses"
RESUMPTION
The SecretaryI inferred. gentlemen. from the ap-
poIntmcnt you with lnc tnAt some sucn qucS.
tions you propose would be submitted to me.
but the law requires officially to report to Con-
grcss in a little more than week upon the very
| topics you suggest it would be manifestly
! improper for me to now discuss them in
| such detaill as frankness would require But
| l may say few things which will
substantially the object of this interview II
is that actual redemption is confined. by the law.
to the Office of the Assistant Treasurer at New York.
This wise provision, for it would be incxpedient
to scatter the redemption fund so that it would not
be readily available Redemption in New York. the
chief commercial city of the country establishes tha
equality of the United States notes with coin, and
this is the main thing. and carries with it their equal
ity in all parts of the United States The difficulties
suggested by the Baltimore banks could be met
by either of several cxpedents.
Fyst-Ths department now by express pro
vision of law sell or exchange coin for grcenbacks
This has been done for years at Boston, Baltimore
Chicago and other leading ports at the premium
for gold the market rate ut New York. This could
be continued after January l. when at New York the
rate will be at par and therefore. the same elsewhere
SecorUi-United States notes. being at parity with
coin can, l think. under existing law. be received
for customs duties and this is the only purpose for
which coin required by law to be paid to the
ornment by citizen and it is the purpose for which
IL is usually desired II there is any doubt upon this
point Congress may expressly authorize it,
Third-If United States notes are taken for duties in
New York they must be taken for duties in every
port of the United States. otherwise unconstitu-
tonal preference would be made in favor of port
over other ports in the United States.
foarth--Aftcr resumption United states notes must
bo held and maintained ut par for all purposes in all
parts of the United They be transported
easily and speedily. while coin cannot be readily
and cheaply moved II would seem that IL We secure
absolutely the convcrtiblity OF United States notes
into coin chief commercial city practically
secure the same convertbility at every other
place in the United States Exchange is
usually in favor of New York, but tenn
porary premium elsewhere will be insignificant and
cannot excccd the small Of transporting United
states notes to New York. That may and has
Cured when specie payments were the rule every
where and is less likely to when hayo
n uniform paper circulation current in al parts Of
the United states
ABSOLUTE EQUALITY or cofx AND aREESBAcKs.
NV general answer, Therefore. ~ you is that the
United states will maintain its notes at par in coin in
all parts of the United states. aud will do by tha
redemption of such notes presented to the AS
stant Treasu at New York and by the receipt Of
United states notes botn duties and bonds.
I think this can be done without change of the law.
but as TO this Congress must be the judge. Tho
Treasury will treat United States notes and coin
exact equivalent in all transactions with the govern
ment and then all business cvcrywhc in the United
States will adapt itself to the standard Having
stated this much do not think that ought to go
further and perhaps. in my beside to be frank with
you, I may have broached questions that should
await the opening of Congress.