National Republican., 1880-10-28
Iho treasury and currency Exchange.

The complaint made by The New York Herald
that Secretary Sherman had refused TO furnish
currency 20 New Orleans seems 10 DO uulounded.
In no case Is tho government expected or required
to slip currency at The public expense from emo
point to another ior the accommodation Of amy
section Of the country hut when It has accumula.
tious beyond It's needs for GisbIucmcut In any
locality Il has sometimes permitted the money 10
be luid out ili that locality 10 persons WHO Uuld
fast place at leGst an equivalent amount in tho
whore needed.
In Tho case mentioned by the J!,rcid however,
II happens the secretary hud not refused the ie-
quest as stated but, On The contrary having more
money in New OrCaHs than needed for dislursc.
nlent there, lie has sold within mOIth IN New
York nearly s3,O5OOc0 exchange On N.w Orleans at
the current ratio Of premium, anh delivered Tho
amount at once In New Orleans upon tccgraphic
orders, thus placing the money IN New York. whore
needed without expense. lie wishes 10 To lie dis
tmCly understood however that this avUummo-
daOn was Afforded only because II wa. clearly In
the interest of lhe government to grant IT. that hu
could not, under amy other circumstances, Le jus
tilted In taking such action, and IN this connection
calls attention to lettor from The department "
! the president OF the chamber OF commerce. south
| Carolina, dated OCtoDsr ., 1878. printed In tho
finance report for that year In which is set forth
tho position Of the department In reference to max.
Ing transfers OF tAis character as follows:
TREASURY DEPARTMENT,
OCroBEH 2, 1874 I
Samuel Y, nlppe, esq, Freeidca! chamber Of Com.
| have tho honor to acknowledge The receipt OF
the memorial Of the Charleston. 5. c.. chamber OF
commerce, addressed TO the president OF The United
States and referred to this department which ailer
rccitlng tie present stringoucy IN the money
market and the difficulty of obtaining currency. re.
quests that the sum Of 500 600 bp placed aud main
uined on deposit with tho assistant treasurer at
Charleston, TO be used by him In the purchase OF
New York exchange from the banks"
To comply with the request, 1t would DO neccs-
sary for the treasury department 10 send currency
by express to Charleston, from time to time andt
buy with 1t exchange on New York IN competition
with private bankers.
should this request be granted, q hundred other
placed IN the country might, with equal propriety,
ask tor the same relief, and If such requests weip
mparlially granted tho department would 6ud
Itself engaged in an extensive exchange busipssa,
fixing and regulating the rate ofexchange between
different places In the country, and the pubic
money, raised by taxation only for the purpose Of
carrying on the government, would bo employed
10 very large amount In 0 business which con,
grsss has not given the secretary of tho treasury
any authority to engage in.
With due regard 10 the proper management Of
the treasury department Within the provisions of
law, have felt II to be my duty to decline all Smi-
lar propositions from other places, and your re-
quest must therefore receive the same RESPONSE
have the honor to be. very respectfully. yours.
WILLIAM 4. RICHARDSON.
Secretary of the Treasury.