The Portland daily press., 1880-12-07

permit limited discretion to sell the securi-
ties most favIable TO the government With
the authority thus recommended 1t 10 beloved
that tho department can within year redeem
standing, and thus redaos the interest Of tho
public debt S120O0,00o per annum
and thus leave the debt In form
most favorable for gradual payment by the ap-
plicatton OF the sinking fund without cost or
premium.
Nothing has occurred since my last annual
report to disturb or embarrass the easy main
tenance OF specie payments. United States
notes are readily taken at par with coin in all
parts OF this country and in the CHEZ CONNER
cial marts of the world The balance of coin
in the Treasury available for their redemption
on the first day OF November last was S141,-
So! ,013.61, and the average during the year has
not materially varied from that sum. The only
noticeable change in the reserve is the gradual
increase OF silver coin caused by the coinage of
the silver dollar aud the redemption of frac-
tional silver coin, more fully stated herein
after.
The amount Of notes presented for redemp-
ton for one year prior to Nov. 1, 1880. was
$706,658. The amount of coin or bullion de-
posted in the treasury, assay office and the
67. These deposits have usually been paid for
in coin, through the clearing house, but at
times, when the currency in the treasury
would allow, and at the request of the deposit
tors, they have been paid for in United States
notes aud silver certificates. Gold coin now
enters largely into general circulation. OF the
revenue from customs collected in New
York for one year ending Nov. 1, 1880. 81 ,475
per cent. was paid in gold coin, .O0,125 per
cent. In silver coin, 81 0S7 in silver certificates
and III 312 mar In limited 2tatoe
While no distinction as to value ia made be-
tween coin and notes in business transactions,
marked preference Is shown for notes, owing
to their superior convenience in counting and
Carrying. Many Of the current payments from
the treasury are necessarily made IN coin, and
much OF the funds held for the redemption of
national bank notes and notes of banks that
have failed or suspended is in coin. The total
coin in the treasury at the close of business
Nov. l, was $21S,710,154, OF which S141 ,59.-
013.61 constituted the reserve fund for the re-
demption of United States notes, as above
stated.
All the requirements of the resumption act
have thus far been executed, and and its wis.,
dom has been fully demonstrated. 1t only re-
mains to inquire whether any further measures
are necessary or expedient to secure the MAIN
tenance OF resumDtion. The Secretary ex-
presses the utmost confidence that without new
legislation the entire amount of United States
notes now authorized and outstanding can be
easily maintained at par in coin even II the
present favorable financial condition should
change; but, In order to accomplish this, the
coin reserve must be kept unimpaired except
by such payments as may be made from 1t in
redemption Of notes. Notes redeemed should
be temporarily held in place Of the coin paid
out, especially II it appears that the call for
coin is greater i'll amount than the coin coming
in dua course into the Treasury or the mints.
Ordinarily the superior convenience OF notes
will, as at present, make greater demand for
them than for coin; but in case or an adverse
balance OF trade or q sudden panic, or other
unforeseen circumstances, the ample reserve of
| coin on hand becomes the sure safeguard of re-
sumption, dispelling not only imaginary fears,
but meeting anv demand for coin that is likely
to arise. In supreme emergency, the power
Granted to sell bonds will supply any possible
| deficiency.
1t is suggested that Congress might def ne
and set ap art the coin reserve as special fund
| for resumption purposes. The general availa-
| Bile balance is now treated as such fund, but,
AS this balance may, at the discretion of the
Secretary of the Treasury, be unduly drawn
| upon for the purchase or payment Of bonds, it
| would appear advisable that Congre prescribe
the maximum and minimum of the fund.
United States notes are now, in form, securi-
| ty, and convenience. the hest circulating medi-
um known. The objection is made that they
| are issued by the government, and that it Is
| not the business of the government to furnish
paper money, but only to coin mouey. The
| answer is, that the government had to borrow
money, and is still in debt. The United States
note, to the extent that it is willingly taken by
the people, and can, beyond question, be MAIN
| tanned at par in coin, is the least burdensome
form Of debt. The loss of interest in maintain
| ing the resumption fund. and the cost of print
ing and engraving the present amount of Uni
ted States notes, s less than One-half the inter-
est on an equal sum Of four per cent bonds.
The public thus saves over seven million dol
lars of annual interest. and secures safe and
convenient medium of exchange and has the
assurance that sufficient reserve in coin will
be retained in the Treasury beyond the tempta-
tiOn of diminution, such as always attends re.
serves held by banks.
Another objection to the issue Of United
States notes is, that they are made legal
tender in the payments OF debts. The ques-
tion Of the constitutional power of Congress to
IN Ike them such, is one for another branch OF
the government. The Secretary of the
Treasury is still Of the opinion that this
quality Of legal-teuder does not add to the
usefulness, safety, or circulation Of United
States n ties. So far as 1t excites distrust and
opposition to this form OF circulating notes it is
detriment. The fear that withdrawal of
this attribute will contract the currency Is as
delusive as was the fear that resumption
would have like effect. The notes would
still be received and paid out by the govern
ment, aud, like bank-notes, would not ba re-
fused in payment for debts while they were
redeemable and promptly redeemed in coin on
presentation. As the quality of legal-tender
was attached to these notes when first issued,
and was then essential to their value ana Cir
culation, the public mind is sensitive when any
proposition Is made that by possibility might
impair their value, but it is their redemption
in coin that makes them now equal TO coin
and OF ready circulation in all the marts of the
world. While this is maintained it becomes
comparatively immateral whether they are
legal-tender or not, and if by the action Of
Congress or the courts they are deprived of
this quality they will still be the favorite
money Of the people.
Another objection to United States notes
is, that the amount of the issue may be en-
larged by Congress, and that this power is
liable to abuse. This objection may be made
10 all the great essential powers of the govern
ment. A sufficient answer is that since their
first issue, they have been carefully limited in
amount, and invested with every quality to
improve their value and circulation. Every
effort to increase the amount, made during
period of great depression, failed. Now that
they are redeemable in coin there is no tempta.
tion for over-issue.
These objections will, no doubt, In due
time receive the careful consideration of Con-
gress. and any practical difficulties in MAIN
tanning resumption will be met by new legisla-
tion. But the Secretary ventures to express
the opinion that the present system of cur
rency, the substantial features of which are
limited amount of United States notes, with
or without the legaltender quality,) promptly
redeemable 10 coin, with ample reserves in
coin with bonds, supplemented by the circula-
ting notes Of national banks issued upon condi
tions that guarantee their absolute security and
prompt redemption, and all based on coin of
equal value, generally distributed throughout
the country. is the best system ever devised,
and more free from objection than any other,
combining the only safe standard with conven-
ience for circulation and security and equality
OF value.
STANDARD SILVER DOLLAR.
In compliance with the provisions of the act
OF Feb. 28, 1878, during the last fiscal year "a
262 2571.3S standard ounces of silver bullion,
costing $2a,972, ,16l.S1, ian average of S2,0Sl,.
013.48 per monthly were purchased, Of which
2OO5 ,566 Al ounces were coined into q 1888 $50
standard dollars. The total coinage OF stand
ard silver dollars since the passage of the act,
up to Nov. l, 1880. has been $72,847 .75O q.
which date VAT 0S4. .45O were In the Treasury.
OF the latter amount $19.780,241 were repre-
sented by outstanding silver certificates, the
amount in actual circulation at that date being
S25, ,763, ,291.
Since the passape of that act the nonortroor+