Year: 1878

his plans, so remarkably successful TINS far,
can accomplish for the country all that he has
expected, if he is left free and undlsturDed.
Some chronic and rabid infatiOnists still growi.
But the prevailing impression is decidedly
favorable.


We do Secretary Sherman the credit OF pre-
sumng that he has not overlooked the financial
difficulties still to be overcome. Some OF these
indeed, it is evident, from his recent state
ments. he sees. The critics who fancy that he
does not know the difference between actual
RESUMPTION and a mere equalization in market
value of gold and greenbacks will be entirely
undeceived, we take it for granted, In que
time. Evidently. it was necessary first 10
secure that equalization, and to MAINTAIN IL
sufficiently long to make free circulation OF
gold practicable. In proportion as the business
world becomes familiar with the practical
equalization and confident in its permanence
gold will cease to be boarded or held on spc-
cial deposit, and will flow more freely into use
as part of the circulation and OF bank reserves,
and in this respect it is an important success
that the price of gold has been held for TWO
full weeks within fluctuations OF "s OF one per
cent, the premium at no time exceeding very
common rate of exchange between this and
other cities. With every week of such prices
of gold, the position of Mr.. Sherman is greatly
strengthened.


II will become necessary for him, at some
time prior to the 1st of January, to make
room in some way for the gold which VIII
cease to be merchandise and will become cur
rency with resumption. The coin in circula-
ton in the Pacific States will not be disturbed,
of course; the boards in the Treasury and the
banks will naturally increase as resumption
draws near; and the more active business
which strong confidence as to the future may
be expected to bring in the Fall, Will natu-
rally draw into use an increased amount OF
currency without any unnatural initiation of
prices. Nevertheless, that increase cannot be
expected to be, and ought not to he, very
large, and, in order to safely add to the cur
rency the gold now held as merchandise,
there must of necessity be some corresponding
withdrawal of legal-tenders from immediate
use. Secretary Sherman has at command sew
eral methods by which this withdrawal may
be effected. His suggestion that lega-tenders
should be received for Customs duties would
meet that need, unless Congress should so
unreasonably swell tho expenditures OF
tho Government. by other measures like
the River and Harbor Bill as to prevent the
accumulation of any surplus. sales of bonds
for legal-tenders would reach the same end.
1t is a very remarkable thing that one OF the
ablest hard-money journals conceives that 1t
would be quite unfortunate if, in his transac-
tions with the Syndicate, the Secretary should
virtually receive and hold until the 1st of jan
uary, in place of coin, the greenbacks which
are then to be redecmabe in coin. AS the
Withdrawal of legal-tenders, by this or any
other process, will tend to make room for the
necessary addition of coin to the currency, 1t
can hardly be considered good sense for him to
miss opportuntics Of eflectng such change
in part before the day Of resumption comes.
But 1t is enough to point out few of many
methods by which, without further legislation,
the Secretary can overcome this difficulty
The fact that the existing volume of paper
now floats so nearly at par in coin indicates
that no great change in its volume will be
necessary, excepting to make room for such
gold coin as may gradually flow from vaults
and hiding places, and come into full use as
currCucy.