The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-21
secretary sherman,. views.


The statements made by the Secretary of
the Treasury on Tuesday to the Finance
Committee of the Senate were deemed SO
important that report was not allowed to
be published until the Secretary should
have an opportunity for revising it. 1t is
now sent forth to the country with his
sanction. and although it fills much space
it is worth the perusal of all who take an
interest in the monetary and financial stu
alton. Secretary Sherman thinks that he
can utilize the new Silver law and make it a
valuable aid to resumption of specie pay
ments, but he deprecates further legisla-
ton.
He strongly opposes the repeal or modifi-
cation OF the Resumption law, seeing his
way to execute it with success if Congress
will not embarrass him. The gold premium
is SO small that there remains but short
and easy step to resumption, especially If
he is permitted to strengthen his gold re-
serve by the addition of the greater part of
the new silver coin which may be turned
out from the minis previous to January l,
the date fixed by law for specie payments.
If the premium on gold shall not have dis
appeared previous to that date the silver
payments which he will then be able to
make in exchange for greenbacks will bring
our paper currency to par before the stock
of silver in the Treasury is exhausted.
There will then be no temptation to make
run on the Treasury for coin unless there
should be an adverse foreign balance.
According to the views Of Secretary Sher-
man the success of this experiment requires
that the greenbacks remaining in circula-
ton shall continue to be legal tender
It is not probable that their amount will
be reduced below three hundred millions
and they will be just as good as gold for all
domestic transactions, serving the same
purpose here that Bank of England notes
do in Great Britain, which are legal ten
der everywhere except at the bank itself.
The retention Of the legal tender notes
with their present functions will dispense
with coin for all the ordinary purposes of
internal trade and be practically equiva-
lent to three hundred millions Of coin. It
may be wise to retire them at some future
period, but not while we are going through
the critical experiment of resumption.
This part of Mr.. Sherman's views will be
accepted without opposition.
The great controverted point relates to
the issue of silver certificates on deposits of
silver bullion. If issued on the mere mar
ket value of the bullion they would not be
utterly pernicious, but even then they
would be highly Objectionable. The GUS
toms duties would be paid in the silver
certificates, but the government could not
use them for paying the interest on the
public debt. This would cause em-
barrasHment to the Treasury The interest
on the bonds cannot be paid in certificates,
but only in coin, which the government
would have difficulty in procuring. To be
sure the deposited bullion could in time be
converted into coin; but the necessity of
maintaining the credit Of the government
by prompt payments of interest as it falls
due could not await the tardy operations Of
the minis. Another fatal objection to the
issue Of certificates on the deposit of silver
bullion is that it would deprive the govern
ment Of the profits of the coinage unless the
certificates were issued on the market value
of the silver, and the advocates of the
measure do not desire it if it is to be at
tended with that limitation.