Year: 1877




BAcK--RErIREMEST or THE SMALL BnIs-MR
| sHKRMANs SILVER VIEWS.


lBr TELEGRAPH TO rHE rRTBUsEi


WASHINGTON, June l0.-The financial SITUATION
exhibits new phases which are of the most important
character The discovery that 1t Is within the power
of few National banks to bring down the volume
of ereenbacks within few weeks or months to
the $500 600 600 limit fixed by the Resumption act
and that one bank has actually begun the process Is


feature of great significance 1t Is scarcely probable
that 80 peculiar an operation that of bank sur
rendering its circulation and applying the next day
for reissue is undertaken without the assent OF the
Treasury authorities and now that II has once been
begun and mas been decided TO have the sanction OF
law there can be no doubt but that II will rapidly
nroceed For every 81 90 of bank currency Issued
the Resumption act requires the cancellation OF $50
of preenbacks Ii takes no account OF the SURRENDER
of bank circulation, so that the fact that u DAM
had deposited on day before the ldentcal amount
of currency newly issued TO it would not restrain
the Treasury from retiring the 50 per cent In green
backs. Secretary Sherman's desire TO bHng the
greenback circulation down to the limit hAed Dy
Congress is well known and 1t now seems certain
that the laws give him the power and the machinery
TO accomplish this end within very snort space oI
time probably before the meeting Of Congress


A second feature of considerable interest devel-



the smau notes. One and two dollar bills are now
getting so scarce in all monetary centers that trades
men remark their absence from circulation. ana
compIain of difficulty in making change. The op-
erations of the mnts will soon obviate tins DIM
Guilty. however. Fifty-cent pieces are already fast
taking the place of small bills, and peoples pockets
begin to be heavy with the large silver


Secretary shermau's view. expressed by him
in his Marietta speech. in the last campagn' and
frequently repeated in conversation oi Late IL that
the silver dollar should be made a legal tender ior
all currency contracts but should only be issued Dy
the Government in exchange fOr United states notes
and fractional currency. This be believes is the
safe middle ground between the extreme opinions
entertained by the Western silver men and the
timid views OF Eastern capitalists. lie thinks
it is the platform on which the Republican party
ourbt 10 stand and upon which It can VIII IN the
coming canvass in Ohio. The policy proposed Is
wholly different from that advocated ~ strenuousiy
i'm the West silver. it is claimed, would be equal
IN value 10 legal-tender notes. because II could only
be obtained in exchange for such notes, and no one
who did not value the coin highly as the paper
would offer TO surrender the latter to obtain the Tor
mer There could be redundance OF silver IN CIR
culation because there is no law under which silver
can be paid out by the Government except
in exchange for notes and fractional currency.
What tine Western agitators insist upon ls
that silver coin shalt be made full
legal tender and shall be issued IN exchange Tor
bulliop. This would enable the Nevada Silver Mine
owners to convert their product into legal-tender
dollars on presentation of the bullion at any mint,
and would produce a glut Of silver and be an in
superable obstacle TO gold resumption. Secretary
sherman holds that a law making the silver dollar
of 412I grains legal lender for all currency con-
tracts will be "A decided help To resumption, because
for every dollar Of silver issued grecnback must be
retired from circulation. About SlOO,OOOOOO OF
silver will be needed for change, and the
amount that will 20 into circulation III excess OF
the requrements of trade for subsidiary coinage
will not il is estimated, exceed twenty or thirty
millions The Secretary's opinion appears 10 DE that
all friends of resumption should stand together III
favor of tins partial reconciliation of the silver
dollar in order to resist the schemes Of the Western
silver bullion infatlonists.


In Justice to Secretary Sherman II should be said
that his attitude in favor of tho partial remonetza-
tion of silver has not been assumed since he entered
the Cabinet Last Winter ne introduced III the sen
ate a substitute for the Bland Silver bill embodying
the same propositions ne now advocates.


tits believed that the visit of Stanley Matthews,
who arrived tonight. and who IL at the White
House is for the purpose Of consultation as to the
money plank to he adopted by the Ohio Republi-
cans. and that Mr.. Shcrnau'5 proposition will be
the one that will be agreed upon.


Gov. Cullom of Illinois, who recently vetoed the
silver bill in that state is here. He says the people
ont West have craze upon the silver question: but
will recover when they better understand the rela-
tion of silver to the question Of resumption.