New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-11-29
sEcgET1BY SHERMANS REPORT

The report of the Secretary of the Treasury,
which is given in full to-day in special dis
patch from Washington TO THE TRIBUNE, is
the first Mr.. Sherman has issued since specie
payments became an accomplished fact.
and the country glided without tremOr into
the steady grooves of currency redeemable
in coin. The Secretary's report is naturally
occupied with some account of this benefcent
achievement, which long since became famil-
lar and pleasant history. 1t was by an easy
stage that he was led. in discussing this sub
ject, into tull statement of the advantages
the country derives from the National Banks,
without whose aid specie payment would
have been impossible. The Secretary truly
says that the results attained under the Ma
tiona Banking system could not have been
reached under any other system. The record OF
sixteen wears shows that, in the security of the
I noteholder and the GaIversal credit given to
the notes, and in many other ways. the Ma
tional system is SO thoroughly satisfactory
that it may justly appeal to the goodwill OF
Congress. These words arc addressed to
Congress whose political majority has inten-
tons upon the system which are Tar from
honorable, and Secretary Sherman. by wise
word spoken in time. may have done some
thing to defeat Democratic plots.
In treating the vexed question of the
retirement of United States notes, the
Secretary makes the recommendation that
the resumption fund he specifically de-
fined by law and sci apart for the
redemption of United States mates. and that
the notes redeemed shall only nc issued
in exchange for or in purchase of coin or
bullion. He is of the opinion that the pro-
visions of existing law sufficient to NAM
tain resumption, even with the present vol
ume of United States notes but the Secre-
tary thinks that the power TO sell bonds for
redemption purposes should be preserved,
though it could be exercised only in emergen-
cies. The prevailing high prices for pubic Sc
curities and the general feeling of confidence
lead to the suggestion that the present would be
an excellent time to invest portion of the
sinking fund in United States notes. and re-
tire and cancel them, thus reducing the max
imum of the amount in circulation to
$500. 600, 900, the figure fixed by the Re-
sumption Act.
One question of wide importance is raised
by the suggestion made in the report whether
the legal-tender quality should still be con-
fcrred upon United States notes. While the
power to issue these notes in ii ne of war has
been upheld 10y the Supreme Court, the
right to reissue them in time Of peace
is still contested, aud the Secretary seems to
be of the opinion, though no direct recon-
mendation is made to that effect, that the
legal-tender clause should be repealed.
There are many other matters OF great in
terest contained in this report which must he
discussed hereafter. The Secretary estimates
| that with the ordinary receipts reaching
S2SS, zoo, 600 dur1ng the fiscal year, and the
binary expenditures reaching 1918 900. 000, the
| Government will be able, unless Congress makes
appropriations in too lavish spirit, to balance
its books But if it should appcarthat there is 10
be deficit, either because OF falling off in the
revenue or because of excessive appropria-
tions, duty may be laid upon tea and coffee,
and an internal tax upon opium. In the ex
penses of collecting the customs revenue, the
Secretary shows saving OF nearly 81 ,OOO.OOO
| in the past two years, and reports a marked
| improvement also in the actual returns from
customs. There is striking suggestion that
| economy might be promoted if there was
permanent appropriations committee of both
| houses, having power to sit during the recess,
etc. There are recommendations also respect
| ing remedies for the prevalence of underval-
uations. concerning the best methods Of re-
viying American shipping, and upon many
other topics of grave Importance.
The report is clear, able and satisfactory
though there will be necessarily differences of
opinion upon some of its recommendations
1t will commend itself to the favorable con-
sideration of Congress and the country.