The daily gazette., 1878-04-13
From The N. Y. Herald.
Specie Resumption.

Vo ao now aDie 10 estimate, with q
close approach to accuracy, the resour-
LIST of January next. The conditions of
the new loan are the immediate payment
OF Sl0,O0O,000, and then $4,000 O1l ner
month until the total of $50 ,0OO. 900 shall
have been paid. The Treasury has al
ready S90,0O0,000 of coin and bullion
available for resumption; and as silver is
to be coined at the rate of 81 600, 900 per
month 1t will have S32,000,00O of silver
at the date of resumption. The coin re-
serve OF the Treasury will therefore con-
slst, on the list of January, of these.
sums:-
Present available coin. ....... 500, ,OOO, 900
proceeds OF the new loan...... 10000, 600
silver coin. ................... 80, ,OOO, 900
Iotal.... ............ ....S172, ,0O0, 900
Secretary Sherman's estimate of the
available com now in the Treasury at
S9O, 900 600 is not excessive, although the
amount against which there are no de-
mands is only S7l 900, 600. He stated in
his conference with the Finance Com
mittee OF the Senate that there il a con-
stant average balance of so. .OOO. 900 of
"outstanding drafts and the called bonds
and interest due, and unpaid though
due" lie may rs safely count on this as
Dank does on the average amount of
lts uncailed-for deposits. There is also
constantly in the Treasury an average of
| about S5,O00,000 for gold certificates,
some part of which will be practically
aval allable for resumption if he chooses to
use 1t for that purpose, because the law
authorizes hin to issue gold certificates
| twenty per cent in excess of the deposi-
ted gold-a privilege, however, of which
the Treasury has never yet availed itself.
These explanations, which we reproduce
from Secretary Sherman's interview with
the Senate committee, make it apparent
| that the foregoing table does not over
| estimate, but underestimates, the coin
| reserve which will be in the Treasury on
| The LIST of January next With S172,000,-
600 of coin, and no obligation to use it
Tor any other purpose than the redemp-
tlon of the then outstanding greenbacks,
| there is hardly possibility that the ex-
| pertinent of resumption can miscarry.
If the position of the greenbacks in the
general circulation were similar to that
OF bank notes the expected reserve
would no doubt be inadequate. But the
Resumption act of 1875, which Mr.. Sher-
man is preparing to execute, explicitly
| contemplates the retention of $500, 900 900
of greenbacks in circulation, with their
legal tender function unimpaired. This
makes them precisely rs good as coin
for all domestic uses. The national banks
can keep their reserves in item as a
substitute for gold. They will be just as
good for redeeming bank notes, paying
bank depositors, meeting clearing house
balances and discharging private de bts
as gold itself would be. The continued
retention of their legal tender quality
will permit large economy in the use Of
the precious metals. Without this re
sorce every bank would have to keep 6
reserve in coin equal to its present lega
reserve in greenbacks. But inasmuch a.
$500, 100000 of the greenbacks are to bt
retained in use, with their legal tender
quality unimpaired, they dispense the
national banks from maintaining thu
usual specie reserve, and will perform
the same office as coin in the domesti,
transactions of the country. They will
do duty as a substitute for $500, 600 900 o
Ispecie. Being at par with coin after re
sumption by the government, they will
be received for duties at the custom
houses, and equally with gold and sIlve
will be adequate for every monetar.
function except the payment of foreigl
balances. With this great economy II
the use of the precious metals the coil
reserve of the government on the 1st .
January will be ample.