Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-11-25
THE BALTIHORE BANKERS IND SEC
RETARY SHERMAN

|
rotary and Categorically Answered by
| Him as to the Operation of the Resump.
ton Law-U. S. Notes to be Maintained al
Par in all Parts of the Country.
| WASHINGTON, Nov. 23.-A committee of the
associated banks of Baltimore, appointed to
consider and report upon the action expedient
by the baltimore banks, expressing their
sympathy with and cooperation in resumption
by the government of specie payments the first
of January, had an interview to-day with the
! secretary Of the treasury, and submitted series
OF questions. The chairman said the questions
were suggested in consequence of the law pro-
vlding that resumption shall take place in New
York, and are:
First-Are United States legal tender notes
to be received at the Baltimore custom house
on and after Jan. LIST. 1879, in payment Of Gus
tom duties at their full volle?
Second-Will United States legal tenders be
received on and after January LIST, 1879, at their
full value in the purchase Of United States
bonds from the treaaurer?
Third-Will United States legal tender notes
be redeemed i'll gold at the Office of the United
States assistant treasurer in Baltimore on and
after Jan. LIST, 1879?
Fourth-Will standard silver dollars be is
sued IN exchange for greenbacks in Baltimore
on and after Jan. LIST, 1879 and contrawise
That is, will greenbacks be issued for standard
silver dollars?
Fifth-WiIl there be an issue of certificates
of deposit of silver with the assistant treasurer
OF the United States at Baltimore, and will
these certificates DO treated as silver coin in
payment of customs duties and other indebted
ness to the government?
Sixth-Will the government, after Jan. LIST,
1879, continue the issuance of certificates of
deposit OF legal tender notes, commonly known
as clearing house certificates.
Secretary Sherman replied: X inferred,
gentlemen, from the appointment you made
with me, that some such questions you now
propose would be submitted to me, bat as the
law requires me officially to report to Congress
in little more than week upon the very
topics you suggest, it would be manifestly i'm
proper for me to now discuss in snch detail as
frankness would require. But may say a few
things which will subst ..atially answer the OBJ
ject of this interview. 1t is true that actual
redemption is confined by law to the office of
the assistant treasurer at New York. This is a
wise provision, for it would be inexpedient to
scatter the redemption fund so that it would
not be ready and available. Redemption
in New York, the chief commercial city of the
country, established the equality of its notes
with coin, and this is the main thing, and car
ries with it their equality in all ports of the
United States. The difficulties suggested by
the Baltimore banks could be met BY either of
several expedents.
First-This department can now by express
provision of law sell or exchange coin for
greenbacks. This has been done for years at
Boston, Baltimore, Chicago and other leading
ports at the same premium for gold > the mar.
ket rate at New York. This could be continued
after January 1st, when at New York the rate
will be par and therefore the same as else
where.
second-United States notes being at par
with coin can, I think, under the existing law
ha for 1ofo 1ntjo ~,
only purpose for which coin is required by law
to be paid to the government by citizen, and
it is the purpose for which it is equally desired
Ii there is any doubt upon this point, Congress
may especially authorize it.
Third-If United States notes are taken for
d uties in New York they must be taken for
d uties IN every part of the United States,
otherwise an unconstitutional preference would
be made in favor of one part over other parts in
the United States.
Fourth-After resumption United States
notes must be held and maintained at par for
all purposes in all parts of the United States
They can be transported easily and speedily
while coin cannot be so readily and cheaply
moved. 1t would seem that we secure abso-
lutely the convertibility Of United States notes
into at the chief commercial city, we practical
ly secure the same convertibility at every other
place in the United States. Exchange is usually
in favor of New York, but the Temporary
cannot and will not exceed the small cost of
transporting United States notes to New
York that may and has occurred when
specie payments were the rule everywhere and
is less likely to occur now when we have a uni
form paper circulation current in all parts of
the United States.
My general answer, therefore, to you is, that
the United States will maintain it's notes at par
in all parts Of the United States, and will do so
by the redemption of such notes as are pre-
scented to the assistant treasurer at New York,
and by the receipt of United States notes for
both custom duties and bonds. think this
can be done without change of law, but as to
this Congress must be the judge. Having
treasury United States notes and coin as next
equivalent in all transactions with the govern
ment, and then all business everywhere in the
United States will adapt itself to some standard.
do not think that ought to go further, and
perhaps, in my desire to be frank with you, I
may have preached questions that should
await the opening of Congress.