Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-01-01
OIR NEE FININCIIL DEPIRTCR
Txcsysnsvtien of specie Payments.

payments. Since tilat GATE Until ABOUT TWO
weeks ago gold has been worth more in the
market than the L. s. legal tender notes. At
ore tiIne-in ls65-our public credit was so low
that one dollar in gold was worth s2S5 in l. s.
notes In 1919 an act known as the reSumption
act was passed by Congress. The repeal or
postponement OF this law which directs that the
Treasury shall resume specie payments to-day
has frequently been agitated without results
New Year day being legal holiday the work
iDgS OF the act are OF course suspended until TO-
morrow. when they viii have fun effect During
the last two years Secretary sherman, who ia
the Senate framed the bill and secured its pass
age, has been making preparations TO meet the
requirements OF the resumption act That his
work has every promise of success there have
Eeen many unmfStakable evidences The far
OF gold to par and the general CONFIDENCE
Throughout the country in the management OF
the Treasury department are some 0f those
evidences. Within the past few months thn
only fear that resumption would not be success
1ul has been connected with gold SpaculationS
IL was thought and reported that
SPECTATORS MIGHT GET Up . CoyRJN.T1oN
ana py purchasing and Scraping together all
the greenbackS, coupons on gold bearing bonds
ana com checks possible, throw them at the
nead or some assistant treasurer and demand
the gQd Tor them. With the gold distributed az
various points such combination could secure
aSUIhcient amount OF paper calling for gold 20
exceed the amount that might be held by any
ore sup-treasury. AS soon as the government
was unable to meet every demand of course
gold would go mp and the government be dis
gTaced. To defeat such an attempt as this the
depaltine concluded upon two steps, One 10
take advantage OF the resumption act which
say s That on and after the ISt OF January, 1879,
the assistant treasurer at New York SAalI re
deem IN coin all legal tender note presented
for such redemption in sums OF S50 and uD-
wards The advantage to be taken of the act
lies in the fact that resumption viii be inaugu,
rated tomorrow only at the assistant treasury
n New York. This
PREVENTS THE DISTRIBUTION OF TIE TREASCRY's
GOLD,
N
should be resumed at all the Sub-trtasurieS anC
at tie Treasury here. The'amount OF gold COL
Iected IN the sub-treasury vaults at New York
amounts TO the Immense sum OF one hundred
mliiloilS OF dollars. For any combination to be
formed that could call on the Treasury for this
amount OF coin would seem 10 be almost imp05-
Slbe. The second precautiOn against any at
tempt to break down resumption Is that on aud
after tomorrow the Treasury will pay matured
coupons and registered checks In gold only at
New ! ork. Presentation of such Obliga ions
for payment elsewhere Will be met with the
offer OF legal tenders or coin checks on the as
sStant treasurer at New York. No demand for
gold for interest will be met elsewhere than in
New York. By not commencing resumption
outside of New York and not paying interest in
gold at any other point and having Sloo,0G0,000
in gold at New York. it IS evident tnat any gold
speculation that could be effective would have
TO be 50 gigantic as TO make its formation almost
outSlt the range OF possibility.
ANOTHER IMPORTANT MEASURE
TO be inaugurated by the Treasury department
tomorrow will be the receipt OF legal-tender
notes for customs duties This does away with
| tie principal objection to resumption 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, the merchants OF
| other places began 10 get frightened. They
| would, tLey thought, by law still have to pay
| their customs duties in gold, and consequently
| thought that the demand for gold for this pur-
! pose would keep that coin a little above green
! backs when they could not get the gold for
! their legal tenders Immediately. The Secretary
| OF the Treasury has, however, taken the matter
hfc hn,.1 INog-
| OF customs to receive legal-tenderS for duties.
| 1t is claimed by some that he violates the law
in so doing: that he violates the law directing
that all customs duties shall be paid In c0in The
| secretary has, however, made provision for
| ibis. The law will be satisfied in this way: Col
lectoiS OF customs Will receive legaltenderS for
duties. The amount received by them will be
| EufneG into the Treasury. and the collectors
| will be credited not with having forwarded so
many legal tenders. but so much gold. That is,
| the collector will send forward the legal-tender
notes which he receives for duties, and the
Treasury viii simply redeem them by placing a
| like sum of gold to the collectors credit.
ON AND AFTER TOMORROW IN THE TREASURY
| ACCOUNTS
| all distinction between gold, silver and legal
tenders WI be abolished: Tney will all be
| treated as "iawful money" In this connection,
| subscriptions to government bonds can be
made in notes. The only loan now being placed
in the four per cent A circular OF the depart
| ment going into effect to-day, announces that
| hereafter any one taking these bonds can pay
1or them in legal tenders. The practical effect
OF this will be the calling in more rapidly OF the
| SIX per cent. 1iye-twenty bonds. The proceeds
OF the sale OF four per cents. is used TO call in
| The fiye-twenty skies; and notes being received
for four per cents. the subscriptions will be
| greatly increased.
| 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
multtples to $4,000 to any person upon his
placing al L. S. depository like sum OF
greenbacks This circular viii give, the first
! opportunity OF truly testing whether the people
! VIII take the silver dollar. Hitherto the re-
strictions upon the issue OF silver have been
| such as to discourage to some extent, its circu-
| lation among the people. 1t would seem that
| tie coin Will go out readily from the large
| number OF orders already at the Treasury to be
| lilled under the conditions of the circular to
| morrow.
NEW NOTES
Win resumption Will appear the new 5000
and s., GOO notes just printed. These notes are
| or convenience, and VIII take the place OF tie
| coin certificate, the issuance OF which has
already been stopped.
THE NATIONAL BANKS
are. according TO Comptroller Knox ready TO
resume. Many OF them have reduced heir cir
culatiOn, and all of them have been gathering
gold. The amount OF gold held by them aggre.
gates 80, coo. This amount would seem tn
be all that would be necessary to meet the
demand for the resumption of their notes
Their circulation is so scattered around the
whole country that run would be hardly nos
spe. The s40,000,000 is amply sufficient to
ailay the gold fever and satisfy that class of
People Wll4 want 10 I'LL the traditional stocking
with gold. Ii it is not sufficient the banks can
call On the government TO redeem the LEGAL
tender reserve which they have on hand and
thus get more gold. Each bank is required to
keep IN reserve a certain amount of L. S legal
tenders This amount varies according TO fhe
locality or the bank. An amount e6ual To
twenty-five per cent. of its circulation is the
lowest legal tender reserve that any bank has
On hand. From this it goes upwards.
WHAT is TO BE DONE WITH THE Notes RE-
DEEMED.
Ihe notes redeemed by the governments will
not be destroyed. The act of MAY 3lst. ISIS
which Congress passed only because if over
estimated the greenback strength i'm the conn
try, provides that 'it shall not be lawful for the
secretary OF the Treasury or any officer under
nm TO cancel or retire any more of the q. s
legal tender notes; and whenever any of said
notes may be redeemed or may be received into
the treasury under any laws, and Shall belOng
TO the United states, they shall not be retired
Cancelled or destroyed, but they shall be re-
issued ard paid out again and kept in circula-
ton" Any one who thinks that the Secretary
OF the Treasury is going to stand on the Treas
ury steps and bundle out legal tenders as fast
as they are redeemed is greatly mistaken The
secretary can only pay them out for current
0bllgat1ons of the government. That is where
the spirit OF the law above quoted fIom is de-
1eated. The notes redeemed will not be de-
stroyed, but they will be paid out only for the