Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-01-04
RESUMPTION.
The Beginning of the Neav Era--The Nation
at Banks.


The Beginning of the Neav Era-- The Natio,a-
al Banks.
Washington Special (Jan. y to Chicago Times. |
Tomorrow is the day for formal specie
resumption. One of the important meas
ures to be inaugurated by the treasury de-
partment tomorrow will be the receipt of
legal tender notes for customs duties. This
does away WITH the principal objection that
resumption was to take place at only one
point When it was known that New York
was to be the only city where resumption
was to be practically carried out, merchants
of other places began to get frightened.
They would, they thought, by law still have
to
PAY THEIR CUSTOMS IN GOLD,
and consequently thought that the demand
for gold for this purpose would keep that
coin a little above greenbacks, when they
could not get gold for their legal tenders i'm
mediately. The secretary of the treasury
has, however, taken the matter in his own
hands, and has directed collectors of customs
to receive legal-tenders for duties. 1t is
claimed by some that he violates the law
in so doing, and that ne violates the Lavish
directing that all customs duties shall be
paid in coin. The secretary has, however,
made provision for this law in this way:
Collectors of customs will receive legal ten
ders for duties; the amount received by them
Will be turned into the treasury and collect
crs will be credited not with having forward
ed so many legal tenders, but so much gold
That is, collectors will send forward legal
tender notes which they receive for duties,
and the treasury will simply redeem them
by placing like sum of gold to the collect
or's credit. Another circular, which goes
into effect tomorrow, provides that
STANDARD SILVER DOLLARS
will be sent free of transportation, in sums
of $1,000 and upward to $4,000, to any
person, upon his placing in United States
depository a like sum of greenbacks. This
circular will give the first opportunity of
truly testing whether the people will take
silver dollars.
With resumption will appear the new
$4,000 and $4,000 notes. just printed.
These notes are for convenience, and will
take the place of the coin certificates, the
Issuance of which has already been stopped.
THE NATIONAL BANKS
are, according to Comptroller. Knox, ready to
resume. The amount of gold held by them
aggregates $4O,OOO,OOO. Their circulation
is so scattered around the whole country that
a run would be hardly possible, and $4O,-
100000 is amply sufficient. If it is not
sufficient the banks can call on the govern
ment to redeem legal tender reserve which
they have on hand, and thus get more. Each
bank is required to keep in reserve certain
amount of United States legal tenders This
amount varies according to the locality of
the bank. An amount equal to 25 per cent.
of its circulation is the lowest legal tender
reserve that any bank has on hand. From
this it goes upward. The notes redeemed by
the government will not be destroyed. The
ACT of May 81, 1878, which Congress passed
only because it overestimated the greenback
strength in the country, provides that sit
shall not be lawful for the secretary of the
treasury or any officer under him to cancel
or retire any more United States legal tender
notes, and whenever any of said notes may
be redeemed or may be received into the
treasury. under any laws, they shall not be
retired, clncel'ed, or destroyed, but they shall
be reserved and paid out again, and kept in
circulation" The secretary can only pay
them out for current obligations of the gov
eEuuout. IuBG IL Wnero The Splf1G OF the
law above quoted is defeated. Notes re-
deemed will not be destroyed, but they will
be paid out only for current expenses and
disbursements of the government. The out
standing redeemable circulation of the treas
ury is, in round numbers, about $346, OOO,-
600.
GOLD HELD By THE TREASURY
is fully equal to 40 per cent. of that amount.
Every one, from the secretary down, is CON
fdent that this sum is fully sufficient to
maintain the equality of gold and greenbacks.
There is going to be no rush for the gold.
The fever will take out, it is estimated,
about $5O,OO0,OOO. The treasury would pre-
fer to have as much as that in circulation,
believing it will best sustain specie payments.
Secretary Sherman has immense power in
his hands to maintain himself. He will, as
the condition of the finances dictates, put
out more gold and hold legal tenders, or put
ut,more legal tenders and guard the gold.
Playing one against the other he will have a
great advantage, and can, it seems probable,
SO regulate his movements that the two
forms of currency will be kept at an