The New York herald., 1879-12-13
Secretary sherman's Plan for Stable
National Currency.

The interesting conversation Win MT.
sherman which we printed yesterday de-
serves the maturest reflection and consider
alton of the country. 1t is apparent that
the Secretary has digested his views into
system with such regular adjustment OF
mutually supporting parts as gives 1t at
least the merit of symmetry, if not OF per-
feet solidity. Whether structure on MS
plan would be built for permanence' as
he intends and believes, or would De
only useful stage and resting place In the
progress of the country toward something
better, is a question which we need not go
into at present. 1t suffices for immediate
practical aims that it would be long stride
in the right direction. We think 1t fair TO
Mr.. Sherman and consistent with our pub
lie duty to explain his plan as viewed on
its favorable side. We desire to see it taken
up by Congress and put through the ordeal
of debate. If it has weak points an able de-
bate will disclose them. That it has strong
points-some very strong points-we
are constrained to concede. and at present
the only weighty question in respect to it
is whether Mr.. Sherman's proposed system
should be permanent or temporary. But
this is question of no real present impor-
tance unless the temporary adoption of the
plan would obstruct transition to the
ultimate ideal system which many of US
think would be better. In our judgment
instead of obstructing progress to such a
system it would facilitate it if time
and experience should convince the coun-
try that further changes were necessary.
We concede that Mr.. Sherman's plan is
valuable SO far as it goes, and are content
to waive and postpone the question of its
permanence, recognizing the truth that in
all such matters experience is the safest
guide, and that sudden and sweeping
changes in thing so delicate as the cur
rency should not be made except on the
strongest grounds of necessity.
The more fully Secretary Sherman's plan
is examined the more apparent it will be-
come that its adoption would accomplish
great amount of good with the least posi-
BILE innovation. Like the transition to
specie payments at the beginning of the
year, the change would scarcely be per-
ceived in any of the walks of business, and
yet, like the resumption of specie pay
ments, it would be followed by conse-
quences so salutary as to silence opposition.
The change would be imperceptible, because
it would not affect the value of the United
States notes, and would leave them still
in circulation. They are as good as gold
now, not because they are legal tender,
but because gold can always be had for
them by asking for it. They will continue
as good as gold after they are divested of
the legal tender function for the same rea-
son. That anybody should resist q change
which would be in all respects so safe illus
trates the strength of unreasoning preju-
dice. If the question can be put through
the ordeal of thorough debate in Congress
it will be found that the advocates of legal
tender have not q leg to stand on.
We desire to call attention to the claims
of Mr.. Sherman's policy as a system. It
must be admitted that as a system or re-
lated framework it is comprehensive. 1t
includes every part of existing currency
and arranges them all in defined relations
and due subordination. In the metallic
altern place tor silver. In the paper part
there is place for United States notes as
regulator and place for bank notes as the
flexible or elastic part of the currency capa-
BILE Of ready expansion or contraction
in accommodation to the ever varying
wants Of business. It contemplates q
mutual adjustment between coin and notes
for keeping the notes always at par with
coin and making the supply of coin always
adequate both for the exigencies Of foreign
trade and for reducing the volume of paper
when it becomes excessive. A system thus
constructed with q sort of architectural
symmetry and composed of mutually sup
author, to be judged as a whole but apart
from it's merits in this view and indepen-
dent of its elaborate adjustments we in
sist on the value of that separate and
fundamental feature which contemplates
the withdrawal of the legal tender function
from the greenbacks. This is safe, wise
and necessary, with or without Mr.. Sher-
mans proposed adjuncts.
But there is great deal to be said for
his system as a mutually related whole. 1t
is not the project of theoretical or vision
ary adventurer in the realms of finance.
Mr.. Sherman, who was for nearly twenty
years the chairman OF the Senate Committee
on Finance before he became Secretary of
the Treasury, has riper experience in
questions of this kind and has had larger
opportunities of intercourse with practical
business men of every grade than any
other statesman. BY the cast of his mind
he is not theorist, but "a man of affairs,
and, what is not less important in his re-
sponsible position, he is rs good judge of
the tendencies of public opinion as he is
of financial consequences. The deliberate
views of man thus equipped are entitled