Year: 1877

PAYABLE IN GOLD OR sILYER-MR. SHERMAN IN


FAVOR OF SILVER AS A TENDER.


IBV TELEGRAPH THE TRIBUNE1


WASHINGTON. June S.-Secretary Sherman has
been advised that under the financial legislation
since the war, there at least dozen methods by
which he can hold or lock up legal tenders without
destroying them. OF these methods two only have
been generally discussed in the consideration of the
present financial policy. One is the so per cent can
collation. clause applicable to the issue of National
bank circulation; the other is the boarding of
groenbacks purchased with gold derived from the
sales of bonds. One of the most important discov
cries, having a possible bearing upon the
policy of tho Treasury Department. is that
legal tenders can be used for the pur
poses of the sinking fund. An examination of
the Sinking Fund act shows that the language of it
does not necessarily require money set apart for that
fund to be devoted TO the redemption of the bonded
debt. The law refers to obligations Of the United
States which, of course, include nOn-interest-bear-
ing legal tenders. 1t is claimed that the thirty mil
lions of the sinking fund can annually be locked up
in legal tenders and retired without power to
reissue In the items Of the sinking fund and frac-
tional currency laws forty y-eight millions of legal
tender can be retired annually without the power to
reissue except by special legislation. There is no
authority for saying that Secretary Sherman con-
templates acting on such construction of the law
but it is certain that some Of the most jealous
friends of the present policy of the Treasury are
pressing ia upon him.


1t is stated on what appears to be good authority
that there are now S96,OOO,OOO of legal tenders
locked up in the Treasury in various funds, while
the debt statement accounts in detail have only
$l6,000,000.


II is now learned that, whilo Secretary Sherman
lou ,1nf tha of
one and twodollar notes. the printing of such notes
has ceased and the sub-treasurics have received in
structions which they construe as a prohibition on
paying out any notes of less denominations than
five dollars The retirement of small notes can now
be regarded as a feature of the present financial
policy, and the purpose is no doubt to pave the way
to resumption.


prominent member of the Syndicate has made
the discovery that the new and AZ per cent bonds
are reGeemable in silver, well as gold. The act
authorizing their issue provides for the payment in
the gold silver com of the United States, and
these words are printed on the face of the bonds
According to the claims Of the silver men the bonds
may be redeemed at maturity, without further legls-
laton in silver coin OF the standard weight or fine
ness described by the act OF 1870. As that law is
now repealed. however, new legislation would be re-
quired to coin a dollar of the standard existing at
the time it passed.


Mr. Sherman expressed opinions on the silver
question to-day that will be n genuine surprise to
people who have been confidently counting upon
hlm to influence the Administration to adhere rgGly
to the gold standard He said that the newspapers
in representing him as opposed to the reconciliation
of silver do not state his position correctly. He is in
favor of making silver a legal tender for all pur-
poses for which United States notes are now legal
tender but he is opposed to legislation legalizing
the use of silver in payments of customs dnics or
for any other purposes for which greenbacks may
not now be lawfully employed. The Secretary said
that he has not changed his views this subject in
any respect, but that his opinions are the same as
were ay0wed in his speech the financial question
delivered at Marietta, Ohio, during the late Presi-
Dental campaign. Upon the doctrines then an
nounced he now stands They are, he said IN har-
mony with his action in the Senate.


4 National bank in New-York Of large circulation
has three times within a few weeks gone through
the following operations with the Treasury: II has
delivered its circulation one day and received ITS
bond and the next it has presented its bond and
asked 10 increase its circulation The Secretary has
been obliged each time 10 cancel 50 per cent OF the
amount in greenbacks. The operations were on
very considerable scale, ~ ,0O00 900 in bonds each
time An attempt ~ beng made 10 induce Other
banks to ioin in such efforts to make legdl-enders
scarce.