Year: 1879

difficulties.


Important Interview with Secretary


sherman.


The conversation with Mr.. Sherman re-
ported in our Washington correspondence
will arrest attention. 1t will be seen that
his official recommendation of repeal of
the legal tender clause was the fruit
of mature reflection and expressed his
deliberate judgment He holds his
opinion with all the frmness with
which he is capable of adhering to
any settled conviction, and he has no
doubt that the force of truth will bring
Congress and the country to accept his
views when the subject shall have been
adequately discussed.


Secretary Sherman thinks that his pro-
posed repeal of the legal tender function Of
the notes, instead Of being premature now,
has been too long delayed. 1t ought to have
been concident, inpoint of time, with the re-
sumption OF specie payments. Legal tender
adds nothing to the credit and reception of
the notes when they are exchangeable for
coin and when the promise of unremitted
redemption is fortified by an accumulated
reserve Of the amplest dimensions. No
fnancier is acute or ingenious enough to
state any reason why the notes divested of
the legal tender quality would not ejust as
valuable as gold certificates, which are not
legal tender. They will be the precise equiv
alent of gold certificates SO long as the gov
ernment has in possession an ample store
of coin for redeeming oil that are offered.


Mr.. Sherman does not desire the retire.
ment of the Treasury notes. but thinks
they should be continued in circulation as
forming useful part Of our paper cur
rency. Under existing circumstances
we do not think it wise to en-
barrass the discussion and obstruct prog
ress in the right direction by controversy
on that point. That part of the question
oan safely be postponed. The Secretary
is SO clearly right on the perfect safety and
great Importance Of repeating the legal
tender clause that all friends of n sound
currency should rally around him and con-
centrate their efforts to sustain him
in his policy. On the point which
he selects as fundamental his arguments
are so clear and cogent that it is great ad-
vantage to have them presented in their
naked and massive simplicity, free from
ENHANCEMENT with doubtful questions.
By attempting too much we should
be in danger of accomplishing nothing.
When the discussion is placed on the
ground to which Secretary Sherman
narrows it the opponents of his
policy are left without q shred Of
reasonable or even plausible argument.
Contraction Of the currency-their great
bugbear-there will be none; the credit of
the notes will not be impaired; there will
not be ripple on the surface of busi-
ness when Congress enacts such law
as Mr.. Sherman recommends. If ten
million dollars Of the legal tender
notes were to be excepted from
the repeal there is not o bank or
capitalist in the country that would be
willing to pay the ten-thousandth part of
one per cent premium for the notes that
remained legal tender. They would be
merely at par with gold. like all the other
United States notes, which would be equally
redeemable in gold. What is the legal
tender function worth when nobody would
value it at the thousandth part of q mill on
dollar?


Mr.. Sherman would have the national
banks redeem their circulation and pay
their depositors in United States notes the
same as at present There can be no ques-
ton that it is competent for Congress to
allow them that privilege. The. system
would be similar to that of England,
where all the joint stock and pri-
vate banks discharge their obligations
in Bank of England notes, which are re-
deemable in gold at the bank. Mr.. Sher-
mans plan would conform to the English
system in another respect--it would main
tain one great reservoir of gold for the
whole country, which is the surest method
of economizing the use of gold. 1t would
strengthen the gold reserve of the country by
concentration, forestalling attempts to
break it down in detail by run on sepa-
rate banks, which would impair confidence
in the rest, and tend to force them all into
suspension. Secretary Sherman's measure
is the best that has any chance Of success,
and it is expedient to drop all minor dis
putes and give him an earnest, vigorous
and united support.


Friday Luck.


poaaaoe from Viroil's ssGeoruics" ia