New-York tribune., 1879-01-01

SILVER CIRCULAR so QCICKLY-THE DEPART
MEM OFFICERS PERFECTLY CONFIDENT OF RE-
SUMPTION.
iBY TELEGRAPH To THE TRIDUSE
WASHINGTON, Dec. 31.-Treasury officials said
today that they anticipated no trouble about re-
sumption If the banks able to 60 through with
the first days business without being troubled
by demands for gold. After tomorrow all de-
mands for gold, by the arrangement proposed by
the New-York Clearing House Association can bo
met with legal-tenders; but it has occurred to the
Treasury authorities that demands might be made
10 force payments i'll gold tomorrow from banks
which might have neglected to provide an adequate
amount of gold coin for that purpose. The Rubicon
was passed. however, they say, with the close OF to-
DAVIS busness and the progress OF resumption, they
say, viii be easy
The different steps taken by the Treasury in the
process of preparation for specie resumption have
heen announced in FIVE different circulars, begin
ming with the first silver dollar circular issued
early in September. That circular is almost
identical in terms with the last silver dollar
circular, and with tho one which will be
=. issued under date Of January l, tomorrow,
being Department Circular No. for the New-iear
This circular authorized the shipping of silver dol
lars IN sums of 81 600 and its multples TO any per-
son within reach Of SubTrcasuries, designated de-
positores OF National banks. 1t was first issued
early in September and withdrawn the second day
after it had been promulgated.
The reason for this withdrawal has never been
fully given by the Secretary. The public eXplana-
ton was that after more mature reflection 1t mad
been decided that the law did not warrant the be-
ginning OF resumption Ill silver or gold coin be-
fore the date fixed in the Resumption Act.
January /. 1879. Grave legal opinions were
delivered on this subject and a letter was
furnished to the Secretary of the Treas
Al. fnptb
these views. But there always was a conviction
in financial circles that doubtfuness as to thc
legality of the measure not after all, the real
reason for the recall of that circular. The Secre-
tary of the Treasury is too careful man not to have
discovered all the legal points involved III the
matter before the prOmulgatiOn of the order rs
well as afterward. Indeed, the first question TO
have been decided before the issuing OF the first
silver dollar circular was determined upon would
naturally have been whether or not such step was
legal There is no doubt felt by financial men that
it was entirely within the province of the Secretary
Of the Treasury, under the general powers with
which he is clothed to prepare for resumption to
have issued the silver dollars as at first suggested
Another reason that was assigned for the with
drawal of the order was that Secretary Sherman
was told by prominent Republican politicians that
1t would be an uuwise political policy IN the midst
Of the campaign to begin resumption. or
TO do anything that would attract public
attention to the question, especially to excite
the opposition of the GreenbaekeTs, OF to give them
nnew text for opposition to the financial policy of
the Administration There is doubt that such
reasons we're suggested to the Secretary of the
Treasury, but that they were not the determining
reason for the withdrawal Of the order.
That reason was this (aud the fact has never be-
fore been publicly announced 1t happened at the
time thatthis silver dollar circular was issued carly
In September that the National Bank Syndicate
engaged in converting q per cent bonds INTO per
cents owed the Government T5O.OOO,OOO III CON-
q pcr cent bonds 10 that amount having been
called Under the operations Of that circular 1t
was believed at the Treasury that the Syndicate
would have been able to pay that $4,000, 900 com
10 the Government III silver dollars. This would
have absorbed every silver dollar that was coined,
would have exhausted silver dollar certificates to
the full amount aud would have left the Treasury
without any gold receipts with which TO redeem the
gold bonds as they should he presented. In other
words, at the very frst step in resumption
the Treasury would have crippled itself, or have
seriously embarrassed fiscal
oprrations. This fact was discovered the day after
The SILVER dollar circular had been issued and it
was determined to withdraw the circular, and to
subject the Department to the criticism of vacilla-
tian rather than to run the risk which would have
been incurred by placing it within the power OF the
Svndicate at that time to cancel Its obligations Of
S5O,OOOOO0 in silver dollars ar silver certificates.
The second step in resumptionwas the circular
of September 13 1875 which named certain Ma
tlona banks or repositories diSbursing agents of
standard silver dollars, with the limitation that
the coin should be put into circulation through pub
lie disbursing officers, manufacturing and other es-
tablishments and elsewhere where it was
10 be used as current money. The object
at or IN l.
Yer dollars from accumuahng III Wall street,
and TO prevent the Syndicate or importers from
absorbing them TO the embarrassment OF the Treas
ury. Under this circular very few silver dollars
were put IN lrculatlOn.
The third step was the circular Of December Ii,
declaring that after January l no distinction
would be made in Treasury accounts be-
tween com and paper, and that coupons
and Treasury checks would be paid in
coin or notes III New-YOrk. Tins circular
was intended to announce pubilcly the fact that
resumption would take effect and also to throw an
additional barrier about the Treasury gold by re-
UuiTing the ordinary checks and coupons 10 be pad
through NewYOrk, in order that the gold resources
might not be weakened by being distributed at
remote points.
The fourth step was the circular Of Decem-
Der q, anthoring customs officers TO re-
ceNe United States notes and silver dollars
Ss we'll as gold coin for duties imports and 10
deposit the same with the Treasurer Sub-Ireas-
lrer, 10 be redeemed from time TO time IN coin on
vice may demand. No other steps have been OF
will be taken.
The Secretary of the Treasury rests the success of
resumption upon the preparations which he has
made for it and upon these orders.
THE COVETED ACRES OF THE INDIANS.
INTERESTING POINTS ABOUT THE WAY THE con-
GREssIONAL INVESTIGATION WAS MADE LAST
sUMMER-A FRESH ATTACK BY LAND GRANT
ROADS.