Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-12-01
Excluding the sinking fund. the estimated
expenditures will be $23s, 1863, 1857, showing
q surplus of $40, 73O, 86l.33.


surplus of $40, 73O, 86l.33.
SINKING FUND.
The secretary calls the attention of Congress,
1862, and July IA, 1870, requiring the pur-
chase or payment of one per centum of the en-
tire debt of the United States within each ifs
cal year after the lat day of July, 1862, to be
set apart as sinking fund, and the interest in
like manner to be applied to the purchase OF
payment of the public debt, as the secretary of
the treasury may, from time to time direct. ,
The secretary says 1T has been impossible to
comply with this, owing to loss of revenue"
but urges legislation for more revenue stating
thus $39, $685. 225. 72 will be required next year.
With view to promote economy the secre-
tary ventures to suggest, for the consideration
Of the respective Houses, permanent organiza-
ton of an appropriation committee for each
House, who shall have leave to sit during the
recess, with power to send for persons and pa
pers, and to examine all expenditures of the
government; that rules be adopted by the re-
spective Houses limiting appropriation bills to
items of appropriation and excluding legisla-
tive provisions; that all appropriations, ex-
cept for the interest of the public debt, be
limited to a period not exceeding two years.
and that their expenditure be strictly confined
to the period of time for which they are ap-
propriated; and that all permanent and indef-
mite appropriations, made more than four
years ago, except that for the public debt, be
repealed.
RESUMPTION OF SPECIE PAYMENTS.
At the date of nay last annual report, De-
cember 2, 1878, the preparation for the resump-
ton of specie payments, provided for by the
stantially completed. On the first day of
January, 1879, the day fixed for the resumption
of specie payments. the reserve of coin, over
and above all matured liabilities. was $780,
sos, 80450.
Previous to that time in view of resumption,
United States notes and coin were freely re-
ceived and paid in private business az equiva-
Tents. Actual resumption commenced at the
time fixed BY law, without any material de-
mand for coin and without disturbance to
public or private business. No distinction has
been made since that time between coin and
United States notes in the collection of duties
or In the payment of the principal or interest
of the public debt. The great body of coin
indebtedness has been paid in United States
notes at the request of creditors. The total
amount of United States notes presented for
redemption, from January l to November l.,
1879, was $l1 ,256, CTS. But little coin has been
demanded on the coin liabilities of the govern
ment during the same period, though the
amount accruing exceeded $500, 100000. Mean
time coin was freely paid into the treasury and
gold bullion was deposited in the assay Office
and paid for in United States notes. The ag-
SIeSdLe SOlU RuO Silver COLI anu DQlllOQ In the
treasury increased, during that period, from
$l67, $685. 734. 10 to $685. lSS, ~, and the net
balance available for resumption increased
from $1s3, SOC, 804. so to 1852, Isl, 155.4s.
In accordance with the position taken in the
last annual report, United States notes have
been received, since January l, last: in pay
ment of duties on imports. =.
To meet the local demand for coin, in places
other than New York city, persons applying
have been paid silver coin for United States
notes. the coin being delivered to them on es-
tablished' express lines free Of expense; and
for some time gold and silver coin has been
freely paid out at the several sub-tressuries
upon current obligations of the government.
There has been, however, but little demand for
coin, and United States notes and the circu-
| lating notes of national banks have been re-
ceived and paid out at par with coin in all bus
mess transactions, public or private. in all
parts of the country.
The specie standard, thus happily secured,
has given an impetus to all kinds of business.
Many industries, greatly depressed since the
panic of 1873, have revived while increased
| activity has been shown in all branches of pro-
duction, trade and commerce. Every prepare
ton for resumption was accompanied with in
creased business and confidence, and its con-
summation has been followed by revival of
productive industry unexampled in our previ-
GUS history.
The secretary is of the opinion that the pro-
visions of existing laws are ample to enable the
department to maintain resumption even upon
the present volume Of United States notes.
In view, however, of the large inflow of gold
into the country and the high price of public
securities, it would seem to be favorable time
to invest portion of the sinking fund in
United States notes, to be retired and can
celled, and in this Why gradually to reduce the
maximum of such notes to the sum of $780,
| OOO 900, the amount fixed by the resumption
act.
The secretary respectfully calls the attention
of Congress to the question whether United
States notes ought still to be legal tender in
the payment of debts. The power Of Congress to
make them such was asserted by Congress dur
| ing the war, and was upheld by the supreme
court. The power to release them in time of
peace, after they are once redeemed, is still
| contested in that court. Prior to 1862, only
gold and silver were legal tender. Bullion
! was deposited by private individuals in the
mints and coined in convenient forms and de-
| signs, indicating weight and fneness. Paper
money is promise to pay such coin. No con-
stitutional objection is raised against the issue
| of notes not bearing interest to be used as
| part of the circulating medium. The chief
| objection to the emission of paper money by
the government grows out of the legal tender
clause, for without this the United States note
would be measured by it's convenience in use,
its safety, and its prompt redemption. In wnr,
and during grave public exigency, other con-
siderations may properly prevail; but it would
seem that during peace, and, especially,
during times of prosperity and surplus rev.
enue, the promissory note of the United States
ought to stand like any other promissory note. 1t
should be current money only by being prompt
ly redeemed in coin on demand. The note of the
United States is now received for all public
dues, it is carefully limited in amount, it is
promptly redeemed on demand, and ample re-
serves in coin are provided to give confidence
- E. al
these conditions maintained the United States
note will be readily received and paid on
all demands. While they are maintained, the
legaltender clause gives no additional credit
or sanction to the notes, but tends to impair
confidence and to create fears of over-issue. It
would seem, therefore, that now and during
the maintenance of resumption, it is useless
and Objectionable assertion of power. which
Congress might now repeal on the ground of
expediency alone. When it is considered that
its constitutionality is seriously contested, and
that from its nature it is subject to grave
abuse, it would now appear to be wise to with
draw the exercise Of such poweAAeaving 1t in
reserve to be again resorted to in such period
of war or grave emergency as existed in 1852
The government derives an advantage in cir
culating its notes without interest, and the peo-
pie prefer such notes to coin, as money, for
their convenience in use and their certain re-
demption in coin on demand. This mutual
advantage may be secured without the exercise
of questionable power; nor need any inconve-
nience arise from the repeal of the legal-tender
clause as to future contracts. Contracting par
ties may either stipulate for gold or silver coin
or current money. In the absence of an ex-
press stipulation for coin the reasonable pre-
sumption wonld exist that the parties contem-
plated payment in current money, and such
presumption might properly be declared by
law and the contract enforced accordingly.
The secretary, therefore, respectfully sub
mits to Congress whether tho legal-tender
clause should not now be repealed As to ell fu-
ture contracts, and parties be left to stipulate
the mode Of payment. United States notes
should still be receivable for all dues to the
government, they should be promptly redeem
ed on demand, and ample provision made to
secure such redemption.
COINS AND COINAGE.
The operations Of the minis and assay offices
during the year, and their condition at the
present time, are exhibited in the report of
the director of the mint.
The report also contains recommendations
for increasing the effectiveness of that branch
of the service and furnishes information rela-
tive tn the amopnt IF sDecio in the conntrv