The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-12-17
FINANCES.
Repes; OF the Secretary os the Treas
ury for the Wear 1879.

ment Of the annual report OF Secretar,
sherman on the state Of the finances
as delivered to the house on Monday
The ordinary revenues from al
sources for the fiscal year ending June
80, 1878, were 1857, 76s, ,S7s.70 The
ordinary expenditures for the same pc
riod were S23G, ,96l, 1876. so, leaving .
surplus revenue of $40, 799, ,55I. 90
which was applied as follows: Re
demption OF United States notes, etc.
Sl3, ll9, S25.33 redemption OF fraction.
al eurrancy 80, S55, ,36S57, redemption
of & per cent bonds for the sinking
fund, S73, $4,000. to increase cash bal
ance in treasury 1890. 40s.00. The
amount due the sinking fund for the
year was S}5. 400, 00l so. leaving def.
cheney OF Sl4, ,G29, 4l9. 90. As compared
with the Previous fiscal year the re.
ceipts have decreased gil ,9sl, 797. 90.
This is due TO the falling on in the re.
ceipts from the internal revenue. The
decrease of expenditures 81 ,695, $50 l3.
The actual and estimated revenue foI
the fiscal year 1873, will be as follows
For the quarter ending September 30th
1873, (actuaD S73, 800, ,723 AZ; for the
remaining three quarters of the year
ltestimated) Sl9l, 100. .276.57. Expendi-
tures first quarter. S73. .34i. .573.27; last
three quarters. Sl66, 755, i26. 73, leaving
a balance of S2s, 100000 applicable to
the sinking fund
RESUMPTION OF srECE PAYMENTS.
The report reviews the progress to-
wards resumption, and states that on
November 23d, the amount of coin
held in the treasury, in excess of coin
sufficient 10 pay all accrued coin liabil-
tiles, was Sal ,SSS. 100.
In anticipation OF resumption and in
view of the fact that the redemption OF
/ United States notes, is mandatory only
I at the Office OF the assistant treasurer
ia the city OF New York, satisfactory
/ agreement has been made, by which all
/ drafts OH the banks held 10y the treasu.
ry, are TO be paid at the clearing house
/ Every step in these preparations for
resumption has been accompanied with
\ increased business and confidence
/ The accumulation of coin, instead Of
I increasing its price az feared by many,
\ has steadily reduced it premium 10 the
]
| execution or enforcement of the act,
has tended 60 reduce the premium on
coin. The present condition of trade,
! industry and commerce, and tho gen
eral confidence inspired in the financial
/ condition, justifies the opinion "thst
we are prepared TO commence aud
maintain resumption fiom and after
the Grst day of January, 1879.
Deposits Of coin in the treasury will,
no doubt, continue 10 be made after
the lst OF January, as heretofore. Both
gold and silver coin, from its weight
and hnlk, will naturally seek such a
safe deposit, while notes Iedeemable in
coin, from their superior convenience,
viii he circulated instead. After re.
sumption the distinction between coin
and United States notes should be, as
far as practicable, abandoned in the
cnrrent affairs Of the government, and
therefore no coin certificates should be
issued except where expressly required
by the provisions of law, as in the case
II silver certificates. The gold certif-
Gates hitherto issued by virtue of the
discretion conferred upon the secretary
will not he issued after the lst OF Jan.
nary. The necessity for them during
suspension OF specie payments IS OBJ
vious, but no longer exists when by
law every United States note is, in
effect a coin certificate. The only
purpose that could be subseryed by
their issue hereafter would be- TO ona-
BILE persons 20 convert their notes into
coin certificates, and thus contract the
currency and hoard gold in the vaults
or the treasury, without the inconven.
fence or risk Of its custody. For con.
venience United States notes OF the
same denomination as the larger coin
certificates will be issued.
The secretary is Of the opinion that
a change Of the law is not necessary 10
authorize this department TO receive
United States notes for customs duties
on and after the lst day of January,
1879, while they are redeemable and
are not redeemed on demand in coin.
After redemption u would seem use
less inconvenience TO require payment
II such duties in coin rather than in
United States notes. The resumption
act. by clear implication, so far modi.
hes preyious laws az 10 permit pay
ments IN United States notes as well as
IN coin. The provision for coin pay
ments was made in the midst Of war
when notes were deprecated and the
public necessities required an assured
revenue in coin to support the public
credit. This alone justified the refusal
by the government to take its own
notes for the taxes levied by IT, II has
now definitely assumed 10 pay these
notes ia coin, aud this necessarily i'm
plies the receipt Of these notes as coin.
TO refuse them is only 10 invite their
presentation for coin.
Heretofore, the treasury, in the dis
/ bursement Of currency, has paid ont
/ bills Of any denomination desired. In
this way the number Of bills of q less
I denomination than five dollars is de-
] terminod by the demand for them.
Such would appear 10 be the true poll
cy after the lst OF January. 1t has
been urged that, with a view TO place
in circulation silver coins, no bills Of
less than five dollars should be issued.
IL would seem to be more Just and ex-
| pedient not TO force any form OF money
upon public creditor, but to give him
/ the option of the kind and denomina-
/ ton. The convenience Of the public,
IN this respect, should be consulted.
When the resumption act passed.
gold was the only coin which by law
was a legal tender in payment Of all
debts. That act contemplated resump-
ton in gold coin only. No silver coin
OF full legal tender could then be law.
fully issued. The only silver coin pro-
vided was fractional coin, which was a
legal tender for Ave dollars only. The
act approved February 2s, 1875, made
a very important change in our coinage
system. The silver dollar provided
for was made a legal tender for all
debts, public and private, except where
otherwise expressly stipulated in the
contract.
The law itself clearly shows that the
silver dollar was not 10 supercede the
gold dollar; nor did congress propose
TO adopt the single standard of silver.
but only 20 create a bimetallic stand.
ard OF silver and gold Of equal value
aud purchasing power. Cong ess,
therefore, limited the amount Of silver
dollars 90 be coined 10 not less than
two millions nor more than four mil.
lions pei month, but did pot limit the
aggregate amount nor the period OF
time during which this image should
continue. The market value of the sil.
yer dollar At the date of the passage Of
the act was 93f csrts ia gold coin.
Now IL is about So cents in gold coin.
The afnount Of euch coin that rao