Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-05-18
THE QUESTION OF RESUMPTION.
Ii Is An Assured Fact.

An act of Congress fixes the date OF resump-
ton by the U. s. government to be January
lst, 1879. A bill to repeal that act has passed
the House of Representatives by very large
majority. The Senate evinces no decided de-
termination to concur In the action of the
House. II that body should pass the BILL it
would, it is believed, be vetoed BY the PreSi-
dent, and 1t is regarded as among the impOS-
passed over the veto. 1t may, therefore, be
taken for granted that on the first of next
January the government will stand announced
as willing and ready to redeem its obligations
IN com. 1t IS question of interest as to its
ability to do 50. Secretary Sherman says he
can, and the belief in his ability is becoming
more general every day.
THE FACTS AND FIGURES.
Leaving aside the many theories on the sub
iect, there are some points and facts which
give practical conception of the question OF
six hundred and ffty-siX millions of paper cur
rency, of which amount about three hundred
and forty four millions are greenbacks and
bank notes. For the greenbackS, the govern
nent is, of course, directly responsible. This
amount now OutStanding-abOut three hun
monthly by the. Treasury department. under
the act authorizing the Secretary to retire in
legal tenders eighty per cent OF. all ma
iiona bank notes put in circulation dur
OF greenbacks retired last month was
about 81, ,126,0OO As these retirements are
monthly, it is evident that by the first of Jaun-
airy next the, amount of greenbacks out
hundred and forty millions. From this
amount there is about sixty millions now in
to be wsfh et out or be
sixty million there will be about three hundred
million OF greenbackS which il presented will
nave to be redeemed after the first day of next
amount; figures carefully compiled by the
treasury department based upon the actual
returns from the assistant treasurers, deposi-
tarles and superintendents of mints and assay
OlhceS SHOW that tile secretary, on the first of
this month, had on hand coin. incluling the
standard silver dollar, absolutely available for
resumption purposes, sos, ,594 ,293.45. This
amount includes fifteen millions of the syn
Since then the syndicate has taken the
remaining thlrty,hve million provided by the
us $l$3, s., 29345, with which to redeem the
SAI.O0,OO0 MISUNDERSTANDING the sixty mil
lions held IN the Treasury which cannot be
touched or, in other words, to redeem
SE>IOU,W0 The syndicate is willing to take
the remaining fifty millions of the AZ per
cents, and it only yremains for the Secretaryto
say whether he will dispose of them. He may
cents. instead. At any rate, it is evident that
there can be nothing in the way of his having
III the Treasury next January the amount of
save 0T na@S sat 5e M Rat s to
1t is evident that he can without any difficulty
redeem his then outstanding $2S7,0OO,OO0 in
greenbackS.
ESTIMATED AMOUNT TO BE REDEEMED
The Secretary does not anticipate that he
VIII be called upon 10 redeem more than
SlO2,O0,COO, but is securing coin to meet any
emergency. 1t Is thought that greenbacks
being redeemed in gold or silver will be pre-
ferabe to the bulky coin to the majority of
people. An evidence OF this is already found
in the treatment the standard silver dollar has
met even from its best friends. The novelty
has worn of and they refuse to part with their
greenbacks for it. It was hoped to get the coin
into general circulation by paying it out for
OF greenbacks taken in exchange there
fore, but it is only sought for BY
those who wish to evade the Slight
premium on gold by its use in paying customs
revenue taxes in gold, the preference by par
ties to whom the government owes gold to
take in lieu thereof greenbacks. even to large
amounts, have been frequent during the last
two months, as TIE STAR has noted, and are
still of almost daily occurrence.
The premium on gold has fallen TO frac-
before the resumption date. The only thing
that keeps it above par is more than likely The
fact that customs duties are payable alone in
this coin: and the chances are that ;ihe pas
sage (Which is almost aSSured) of the bill max
ing greenbacks receivable for such duties will
cause that slight premium To disappear.
Our imports are larger than our exports, and
the balance of trade is in our favor. The
yearly gold payments by the government for
interest on bonds, is about 100000 900, which is
more than covered by the receipts from Gus
TOMS which are not calculated for use in re-
sumption. Taking all these facts into consid-
Grafton, aud assuming that there will not be
European drain OH the American gold mar
ket-Which there is no apparent reason to sup
pose Will take place-lt seems clear that pGaC
teal resumption by the government itself on
the date fixed is assured.
THE NATIONAL BANKS
will also have to resume. That they are pre-
ynll
Their total circulation is about s299 24o, AS :;
DEPOSITS dep 1861 5.3,5a IL: making the total liabi
sources, including the five per cent. redemp
ton fund in the Treasury, as required by law
are about $3.50, ,201 ,055. On january |, 1879 the
banks will be required to pay depOSitors upon
their paper was presented and all their de-
posits demanded Immediately after that date,
they could not furnish either gold or green
hacks to half the amount of their liabili-
so called upon; All banking IS based upon
the idea that larger amount Of
than the money which is to be redeemed.
The balance of credits would pay off a good
deal OF the deposits, and experience has here.
tOfore shown that certain amount of money
on band with good line of discounts for its
support, is sufficient. Every dollar of their
notes is secured by United States bonds to an
al than
are of ready sale, and can in the ordinary
course OF business be easily converted into
any kind of money.
In banks other than national there are de.
pOSitS Of some 81 800 Goo coo. These are private
and individual banks, however, and their liza
bllltleS not In any way connected with tue
government.
IN THE TEMPORARY ABSENCE of the Commits
siOner of the General Land Office, who has
gone to New York for few days. Major Nor
decai MObley, principal clerk of public lands,
has been designated by the President as act
ing commissioner.
LEM WEEDEN PARDONED.-The President
has pardOned Lem Weeden, convicted in ne
Criminal Court OF this District on the 18th of
March, 1877, for assault on Charlie Goodman
with intent to kill, and sentenced to five years
in jail. He has been in jail about fourteen
months since his sentence, but previous to
that had been imprisoned for some time
His pardon was very strongly recommended
by District Attorney Wells and Judge Nc
Arthur, who presided at the trial.
WHY THE CALF WAS KILLED.-Mrs. Freeh
mann, OF Gasconade county, Mo-, while plant
ing corn placed basket containing $40 in
greenbacks by the side of the field. A calf
intent on financial pursuits, retired the green
backs by swallowing them. 1t was immeti-
ately butchered, and The fraomeEits recovered
'front.' the stomach were today received at the
treasury. Being found all right check was
returned Tor the full amount. That Is the wav
the greenback theory of that calf affected the