Year: 1878

has been so misrepresented that they
have thought it necessary to seek a
new party as relief for the hard
times, But these people will come in
time to understand the true situation
and they will, believe, renew their
alliance to the Republican party.


There are some points, Mr.. Sherman
that, | have never clearly understood
in your policy. Why, for instance,
do you consider national bank notes
to be better as form of currency
rency issued directly by the govern
ment will be superior, and more
economical than national bank notes;
but at present there are some obstacles
in the road. When the national
banks were first organized it was as
substitute for the wildcat banks of
the time.


No one doubts that the national
banks are infinitely superior to state
banks; and yet here is a large and
growing demand in the south for the
re-establishment of state banks, but
there is another reason why we can
not very we'll do without nationtl
bank notes. When came into Office
| found the resumption law upon the
statute books. The time was near at
hand for it's cousummation. No
preparation had been made by prede-
cessors, in office, and it devolved upon
me to execute that law without dis
cnssing the wisdom of the law.
There it was. If it caused hardship,
and I don't believe it caused any
hardship, it was the panic of 1873
which caused the hardship, it would
cause less hardship to go ahead and
carry it to successful issue than to
go back. Moreover I was allowed
no discretion in the matter. My duty
was work Of difficulty, but may
say it is now practically accomplish.
ed. There are $'46, 100000 of legal.
tender notes to lookout for. have
made provisions for them, and the
resumption of specie payments may
be regarded as certain before January
lst next. But suppose that instead Of
having only legal-tender notes to pro-
vide for, the law had contemplated
the coin redemption by the govern.
ment of the national bank notcc.
There would then have been about
SIX hundred million dollars, and with
the coin resources of this country
am satisfied that resumption would
have been impossible.


Supposing resumption to be an &C.
complished fact. Mr.. Secretary, and
the country settled down to specie
standard, do you think the time will
come when national bank notes NAV
be dispensed with! That is quite
possible. There being no longer any
necessity for them they will be legis-
lated out of existence. have stated
repeatedly in my speeches that when
1t comes to question between legal.
tender notes and national bank notes,
than government legal tenderi


do not. On the contrary, a cur.
| am in favor of legal tenders all the
time, but that is a question for the
future. It's consideration now wonld
only hamper resumption.l


The question will naturally arise,
what is resumption worth when it
applies only to one half the paper
money OF the country. What is the
use of the nation resuming specie
payments il the banks do not.


But the whole question lies lin a
nut shell:--if national banks are
worth as much as greenbacks and
greenbacks are at par, would not
greenbacks issued in lieu Of those ma.
tional bank notes also be at par.
If a greenback dollar is worth az
much as a gold dollar before resump-
ton what IS the use Of resumingi :
Will it add anything more to its val.
ue!


1t is equality Of value the people
want not convertibility into CONT