The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1880-02-20
SHERMAN.
His Replies to the Senate Finance Commit

His Replies to the Senate Finance Commit
tee. Y
WASHINGTON, Feb. ~
The statement of Secretary Sherman to ue
Senate Finance Committee in secret session has
been printed from the stenographer's notes.
The following i've questions were asked:
l. What reason, if any, is there for refusing
TO pass bill authorizing the receipt OF legal
tenders for customs dutesy
2. Why should not the Gade-dollar be con-
verted INTO standard dOllary
3 What has been the cost of converting the
interest bearing debt as il stood July II, 1870,
to what il is now, including double interest?
4 TIe effect OF the abolition of the legal
tender quality OF gIeenbacks upon the paper
currency.
5. The necessity for sinking fund, and how
il is managed.
Secretary Sherman's answers are contained
in quite large pamphlet, OF which the follow>
ing il a brief summary:
To the first inquiry Secretary Sherman, i'll
substance, answers: The United States, by act
of Feb %, 1860, provided that the duties OH
imported goods shall be paid in coin, and that
CON shall be reserved as d special fund for the
payment OF interest on the public debt and the
notes OF the United Sta'es. 1hei is no objec-
ton to receiving legal tenders for customs so
long AZ legal tenders remain at par The de-
partment can keep up this practice only as
long az parties holding interest obiiga-
tons are willing 10 accept the same notss
in payment therefor. Ii from any cause
| the legal tenders should depreciate be-
low coin, the Government would be required
| to pay the interest on the public debt in com,
| and ii customs dues were payable III legal
| tender notes the treasury would have no gold
! SUP ply. Referring to the statement in the an
nual report of Dece mber, 1878, that or the LIST
of January he would receive United States
notes for customs dues, Secretary Sherman
says he now concludes that it would be better
| to leave the law as it is, leaving the Govern
ment the right to demand payment Ill coin
! for customs dues, and the individual the
authority to demand coin for interest of
the public debt. In other words, he thinks
! that to pass law authorizing The receipt
of legal tenders for customs would be to sub
stitute for fixed contract between the Gov
! ernment and The holder of its obligations a
mere order of the Treasury Department. He
would have no objection TO law with this
provision: AS long as treasury notes are re-
| deemablc into coin at the sub-treasury in New
| York" The Attorney General, 1t appears has
| expressed the opinion that the treasury Itch
| ncally could treat the note as a coin certificate.
| The legal-tender notes are now only received
| in the nature of a coin certificate. Inas-
much az Congress has not dis3ented to this
construction of the law, Secretary Sherman
considers that he has right to
continue to receive the legal tenders for coin.
Secretary Sherman thinks law passed in the
following form would remove the objection:
G. That to receive legal-tenders for customs
dues would violate obligations to creditors.
| Notes thus received will in every instance be
deposited with the Treasurer or As .i-tant
Treasurer of the United States, as are other
collections OF such du ies, TO be redeemed from
time to time in coin on Gov. rLment account as
! the convenience of the service may demand"
In response To the question why the trade
| dollar should not be converted into q standard
silver dollar, Secretary Sherman said "Ihereis
noobjectioD, in my mind, to provide for exchange
of the trade dollar for the standard silver dol
lar. The only point is whether the trade dollar
shall be treated bullion or a coined dollar
| of the United States. Now l am clearly of
! the opinion that il ought 10 he treated as so
much bullion Issued at the expense of the mer-
chants for their convenience and benefit and
| without profit to the United States and there
fore, not entitled to any preference over other
! bullion; and we might cay not SO much, be-
cause ii was issued TO private parties for their
| benefit and at their cost, but stamped by the
United States merely to enable the coins to be
used to better advantage in foreign market.
/ have not therefore, any objection to the
! bill, If you allow the United States to pay the
same for these trade dollars as for other
bullion"
As an answer TO the question "What effect
the legal-tender quality of the greenbacks will
have on our paper currency" Secretary Sher-
report
The expense of refunding $500, COO, 600 of j.
percent. bonds was 90, 100000
Mr.. Sherman's answer to the inquiry as to
the sinking fund contained nothing new on the
silver question. He referred The committee to
his interview with the House Commerce Com
mitee last year.