New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-12-02
LOCAL MISCELLANY.
VIEWS ON THE PRESIDENTS MESSAGE.

VIEWS ON THE PRESIDENTS MESSAGE.
op,x.oxs IN NEUTRALITY-SUSPICIOUS. WITH
.e SECRETARY sHERMAN's REPORT.
Prominent bankers yesterday spoke warmly IN
praise of the financial recommendations In the Pres
,dens Message. The clause that called forth their
heartiest approval that in which the retirement
of the legal-tender notes was advocated. Ihey
ponted out differences between the report of the
Secretary of the Treasury and the residents Mes
sage which reflected, they said, great credit upon
the latter document. While bankers OF one nina
upon the main question OF the canceia-
tion of the legal-t tender notes. great diver
.sity of opinion was found TO exist
among them as to the proper time and method OF
securing the desired result. One wished the notes
funded immediately into bonds bearing low rate
of interest; another advocated retiring them by
fixed amounts annually while Others doubted the
expediency, at this hme OF agitating the matter.
One prominent nancier declared that the PRESIDENT
was n sounder financier than his Secretary OF the
Treasury.
"Wbile the Secretary is content" he sa,d, - TO
suggest that the notes should he deprived Oh their
iegai.tender quality. the President urges thei
speedy retirement, and declares il his firm convc-
ton that the issue of ega-tender paper money, ex-
cept in extreme emergency. Is unconstitutional rs
well as violation Of sound financial principles
The question of their consttutionaIty is now pend
ing IN q suit before the United States Supreme
Court. Ii rs within the power oil the Government 10
secure from that tribunal speedy decison OF 10
post pone II. The Court may not touch, IN It's oph-
lon the question of the Constitutional right OF tue
Government to issue paper money. hope MS de-
cison will comprehend the entire question and put
an end to these mschievous doct 'incs. The ennis
sion of paper money, If promissory notes, ~ not
power conferred by the Federal Constitution. The
issue of these notes war measure, rendered
necessary perhaps by the peril OF the Nation. But
their reissue in time of peace was not comtempiated
by the trainers of the law and IS plainly nnconsll-
al haya hafn
and. when redeemed, DESTROYED 49,
As 10 the method he concluded, Il am not
particular / think, however, that they could De
funded at a rate of interest not to high TO make
the contraction spasmodc. nor too low 10 defeat inc
purpose N..;o.,pon,
expressed the opinion that the notes could he can
celled at the rate of S5,O0O.OOO month Tor the
first seven months of each year until the whole
tiOnn ne said, the country could not pear witnout
danger 10 its commercial interests Ii Is OF niue
consequence how long 1t would take To retire the
whole amount if the policy of the Government were
defined and steady. The place of the notes would
lie supplied, according TO the requirements OF trade.
Nv the National Bank currency which possesses the
necessary elasticity The Secretary proposes 70 de-
prIve the notes of their legal-tender quality What
then will they be They will have lost their re-
deeminc power and will be little lower than the
bank notes. To carry into effect law repeating
the legal-tender clause, the notes now outstanding
would have to be recalled and IN their place new
notes issued. The present notes are legal tender
and only notes could be deprived o, that quail,
tv. liz would De better lnat tntN suOuiu pc ictucu
aud cancelled"
President sherman, Of the Mechanics National
Bank, was Of the opinion that the time was unta-
vorable for discussion of the subject. The banks
have no legal-t tender notes worth mention he SAID
land am a little doubtful when they may have
again. The Western farmers appear TO have pock-
efed the most of them and as they think they are
Good enough money for them, il is not impossible
they NAV conclude to keep them. The absorbing
power of the people of this country is something
Wonderful At anv rate the New-lOrk banks may
be said Ia hold no iegaltender notes. On this ac-
count doubt the expediency of agitating the ques
ton just at this time.
II dread more the conflict that is likely to arise
npon the silver question. The Government has no
disnosition TO force silver upon the banks until 1t
shall be compelled to do so, but that time may
not be far off although matters look little better
than they did few weeks ago. III things come
TO that pass when shall be forced to take the
Daddy Dollar" do not see how the difficulty
can be averted. The banks Will gain nothing by IN
ssting upon their Clearing House rules, Tor the
Government may withdraw, and then the Sub
Treasury may pay its drafts in any coin Is chooses
Silver will be the only medium OF exchange, Tor
gold will have been exhausted" -
Another bank officer SAID that Congress would
not NEEDLE with these questions at this session.
Pooh y he exclaimed,"" President making is the
only business before Congress- and Secretary Sher-
man understands that well enough. He had TO re-
fer to these questions in his report of course nut
he only touches them dantiiy he is himself a can
ddate for the office. He does not expect Congress
10 act upon financial matters when 1t has more
agreeable task"