Year: 1878




Among the comparatively few Congressman who
have SO far got Washington the impression Is
general that the currency question viii be the main
subject of debate during the short session Such
inaationists as Ewing and Voorhees, are said
TO be moving Washington in quite
furious spirit determined To make noise, seeing as
everybody else Sees that they cannot make trouble


Ii is probable the Message and Secretary Sher
man $ report will contain no recommendations the
currency queston-none, at least asking for immed
ate action The result of the Monetary Conference
will be reported. and the difficulty OF cir
rulating the silver dollar, except
subsidiary coin, pointed OUT but that is believed to
be substantially all unless there should be sugges
tion TO make the silver small change reteemable in
sums of 500 at the sub-Treasury in New York or at
the Mint in Philadelphia and to increase the silver
in the dollar 10 a dollars worth. In ad-
ministration circles it is not believed that
the amount of silver dollars now coined,
SIS, s,250oOo the 1st of November, the amount
that will be coined during the coming year, will be
troublesome, and there is disposition among
sound nanciers to hold that legislation to make the
dollars redcemable exchangeable at the Treasury,
though advisable by and by. is not necessary now
and might be regarded unadvisable. because
it would add slightly to the volume of currency sub
ject to be redeemed in gold.


RESUMPTION UNDER THE LAW.


Close examination of the whole body Of laws
arding the currency shows that, faithfully executed
they and will be- they on the whole present no
obstacle to resumption, but i'll some unexpected ways
give important help to this object. An old law for
instance. allows the Treasury to buy gold bullion to
any amount, az the time that act
OF the last session requires the Secretary
to keep in circulation the whole volume Of green
backs far a. he There of course but three
ways in which money go out the Treasury-frst
in payment on specific appropriations by Congress
that is to for current expenses; second, in pay
ment Of the interest the debt and lastly for the
purchase Of bullion, gold and syer-the latter to
extent limited by Law, but the gold to unlimited
tent Mr. Ewing understood to have held that green
backs could also be paid ont to redeem bonds but he
in that case unaware of the law which requires
the Secretary to redeem bonds only with the proceeds
OF the sales of other bonds bearing lower in
terest.


The law therefore, which requires the Secretary to
keep the whole present volume Of greenbacks in
eirrulstion could ne$ be carried out. the in
come of the government being equal to its
expenditure greater il it not for the other
Law allowing him to buy gold in any quantity. But
the two laws together give him substantially the
troll it is believed. Of the whole gold product of this
country. which amounts to about $50 900 a year
and TO acquire any part Of which he can and fact
under the law must. use the greenbacks which will
come into his hands when the resumption begins.


DEMAND GOLD.


1t is the belief of experts that the immediate de-
rand the Treasury for gold after the 1st Of January
will take out about ss00 1000: but no one will
to hoard gold. and it is not . convenient
article store in considerable amounts few New
York banks even having secure vault room for q
single million Of gold it probable tina. the greater
part Of the gold that be drawn out on the first
icmand will find its way back into the Sub Treasury
vaults in New York. and New York is always the
contre OF the exchange Of the country. and the Law
makes the grecnbacks redeemahe there, the natural
course Of events it is thought will leave the of
the gold there subject to draft OF course, but not
drawn upon to any great strainng extent because
the expense and risks of carriage viii be great.


II is reported BY Of the Presidents friends
that he viii suggest to Congress TO increase the
amount Of silver in the dollar bring it up
par, to make it worth dollar; but IL is more prob
able that this is the only way to IN AXE silver gener
Ally current and useful but not with any expectation
that the present Congress will order it to be DONE


WAR THE NATIONAL BANKS.


Meantime IL is taken for granted that Of tho
first movements when the session opens will be
determined attack the national banks. It will be
, remembered that Mr. Buckner of Missouri chairman
OF the Banking and Currency Committee during the
last session drew and reported bill destroying the
banks and substituting Treasury for their notes.
But he net able then to get this bill through
the House. and the chances OF tire passage of such
measure somewhat less now than they were last
year. because good many Of the democrats have been
sobercd by the November elections. Nevertheless
there is doubt that attempt will be made
ard II will have the support OF several
classes of members. First, of the ipfationsts and
Ucenbackers. who include among them . certain
smaIl number Of thiniy vanished repudiationists;
second, OF the scheincrs for extensive and costly
brnal improvements. who want unlimited green
backs for their purposes and lastly, OF o number N
Southern members, who want to rc-estabIish
their State banks, and some Of whom are
not, or rather do not profess to bo. inhatonists.
The argument Of these Southern members is that
while national banks must base their currency on
United states bonds II they had state banks they
would base teir issucs not only on State bonds but
real estate and crops. and thus make things lively
In thor section. Some OF them honestly believe that
this would be good thing 90 do. Others, who are
toss ignorant, very VOL that this would bc only
tho widest and most runous kind of pamb bling But
It Is among the possibilities that a considerable
southern vote can be got for bill destroying The
National banks on this ground and for This purpose
How large small this vote viii lie is as yet uncer-
tain, because II is possible that ,he South-
crn members will turn out 10 be more
sensible and conservative this session than they
promised 70 bc last session Last sprng the southern
mon thought IL good stroke Of policy 70 join hands
with the West against the East. This was the pro-
rranime on which their fall platforms made and
on which they carried their canvass. and the
they examine the resnit Of tho fall elections the
some at least OF them that they led into
huge blunder.


nFspoSsInrLITrs or THE SOUTH.


Al The same time the tone OF the Eastern democrats
has become decided They urge upon their
southern friends tlist-First, the majority OF the
democrats In The House from the South: that
therefore the Southern control the action Of
House and the policy the party thcre that this
grave responsibility, which ought to lead them 10
act with dcbcrstion and in pursuance Of a clearly
defined policy. and that the Southern men cai IL