, 1880-03-21

States and the New York Clearing House. The
Secretary replied in general that the Attorney
Gcucral had decided that there was no Ia"
against 1t, hut that one Of the conditions OF the
Clearing House Association, of which the dov-
ern1uent WIS member, is that silver dollars
shall be received for deposit only after
specially contracting to withdraw the same in
kind. Art. s also prohibits the payment
OF balances at the Clearing House in silver cer-
rifcates or silver dollars, except as subsidiary
Coins in small sums under SO This relation
ship Mr.. Warner, who acted as Chairman, char
acterizcs as
rAKTyERSuIP
on the part Of the Government and this Associa-
lion for the Reputation Of silver as money, rs
they SGT their own rules above the Lcgal-Teuder
law Of the Euitcd States The Secretary was
asked whether the Treasury has the right to
make any arrangement to enter into partner
ship with an association which sets at defiance
The laws Of the United States relating to
the legal-tende Mr. Sherman In reply said he
thought he had the right to make such an ar
ranEemeut, and to exercise the option OF pay
ing notes or gold in lieu of silver, and that was
no; a surrender of the Governments option
The order issued By the Department On the sth
Of October last, providing for the payment Of
current obligations Of the Government by 10
per cent in silver coin and 10 per
lppy TO the cleartng-Mtouse, and that it
ION. ton even :e,' though @ The the ciearins.Hoase
persisted in its rules prohibiting silver from cir
rulation. Still the Secretary oxp.sssed the de-
thai provision, after saying that fhe Treasury
Department. had done al II could Ito put silver
u circulation: H. ndtnttted, I'D, m however, in Part,
from paying out SILVER i'll order thereby, by
limiting its quantity, to
PRESERVE ITS EQCIvALESCY WITH GOLD.
fhe Secretary expressed the opinion that "as
sure Us the sun shines and grass grows," If VIC
continue. to coin silver nj. the rate Of
Two millions . month. and pay it out,
IL wll fo5ee TS;d out Of the ennt Ms shsr
l1nuse is u benefit to the Treasury: ...
Treasurer Gilhllan. in his annual report says:
ship inurrs 70 the ,ene1it Of thaClenring- House
and banks, and unless q change in the rules is
made permitting the payment Of all or a GER
conc desirable TOR the Treasury to withdraw
from a relution which locks over *e},V COO
Of }a~ql 9ar money in il '9a IT,
point Of the greatest public disbursement All
checks in payment of called bonds and in pay
nent Of foreign gold are nov made In gold. The
decrease Of notes in the Treasury continues
however, and will keep on until the limitation or
cessation Of the present silver dollar coinage"
noah the the Sec5e1nry aa and fh 1h Ieasnrsr Ire * K
the extE7t Session prtsvi1iny for the redemption
of subsidiary silver in lawful money Ut the SUBJ
Treasury In New York,
TO COLLECT In THE TREASURY,
instead Of being returned to the country tn be |
Used where it is needed. and that account of |
this accumulation there ensues scarcity Of |
small silver coins They IRE willing either that
so1nc provision lie made to facilitate the return
Of subsidiary coin SO redeemed into the circulu-
ton. t,r that the law providing for its redcmp-
ton be repealed. in which case the Secretary
said he saw no objection to make the subsidiary
coins If full weight us fractional parts OF q |
dollair He further advised that if the coinage
Of the silver dollar Is to be continued its bullion
valnc he made equal to the bullion value Of the |
guild dollar. lie fnyors cooperation between the
different countries for the establishment Of |
rutio between the two metAls.