Year: 1878

Secretary Sherman's interviews with leading
bankers result in general understanding that
he may at any time begin to pay out coin for the
ordinary obligations of the Government. This
course has been repeatedly mentioned by The
TRIBUNE as one of the most effective means
he could use to promote resumption. 1t is
quite true, as Mr.. Sherman says, that he
will thus diminish the pressure for gold with
which to pay customs duties. lnasmuch as
legal-tenders will continue to be paid into the
Treasury for taxes, so long as there is any
premium on gold, however small, the result
must be the virtual redemption OF legal
tenders, and their withdrawal from circua-
ton, TO an amount equal to the coin paid out
for ordinary expenses. Actual resumption be-
gins whenever the Treasury pays out its coin
and takes in It's promises


Secretary Shcrman's power as we have con-
stantly insisted, is ample and indisputable.
The law now creates three kinds of money,
either of which is a legal-tender IN payment
of all dues except coin bonds and interest
thereon There is not a line in any law which
restrains the Secretary from paying out gold
or silver coin in the discharge of the ordinary
indebtedness for which notes are usually
paid. The Secretary can, therefore, use his
own discretion az to the amount of coin or OF
notes which he will pay out within given
time, and he can thereby regulate, as he may
find most expedient, the rapidly OF
redemption. Until January l, this power to
regulate the rapidity of redemption will rest
exclusively with him after that date, it will
rest exclusively with nOte-holders to say how
rapidly the notes shall be presented for pay
ment. Hence we have held it of impOr-
| tance that, prior to January /, and while the
whole power yet rests with the Secretary, he
| should so use it that no notes whatever would
he presented for payment after January 1. If
he paws out gold so freely that nobody wants
| If in preference to notes, the premium will
vanish. and the chance of large demand for
coin after January l viii be removed.


| Heartily commenting the adoption of a wise
! course in this respect, we nevertheless suggest
that the silver coin will be vastly more use
| full in the Treasury than anywhere else, 80
! long as the present supply of small notes con-
| tinues in circulation. II will be found i'm
nosslble, as it has been thus far, to keep any
| considerable amount of silver coins in clrcu-
lation. because the small notes completely fill
the place which such coins might occupy.
Consequently, the coin will flow back to the
Treasury. as it has done thus far. OF
course. it is true that payments of silver
| OF of gold coin will equally affect the
supply for customs payments, and equally
accomplish the Withdrawal of legal-tenders
/ But payments of silver coin by the Treasury
will not have the same effect in convincing
| the public that the Government considers its
notes as good as gold. Everybody knows
| that they are worth more than silver. What
| is needed is TO prove that the Government nc
longer deems gold worth more than its notes
| Free payments of gold will accomplish this


The silver will be particularly useful az a re-


serve, to be employed if any knot Of specula-
| tors undertake to crowd the Treasury in JAM


uary next. Until then, the less used in ordi-


nary payments the better.


This, of course, is on the supposition that


the Treasury still finds it InexpedieDt to with
| draw small notes from use. If part of the
| 81 and So bills can be quietly gathered in


and held by the Treasury in its balances,
there will be created some room for the use
of silver coins. In that case, payments OF
silver would be of service if limited to the
amount Of small notes thus Withdrawn. The
public, however, will have increased confidence
in the good judgment of the Secretary when
he sgnalizes the complete success Of
his plans by beginning gold payments
and thus commencing actual redemption.
There will be little disposition to carp about
the details. He has done so much and SO we'll
that the country will have little fear as to his
Judgment in respect to further measures. He
knows that complete success ia within his