Democratic Sentinel, Volume 1, Number 43, Rensselaer, Jasper County, 7 December 1877 — THE TREASURY DEPARTMENT. [ARTICLE]

THE TREASURY DEPARTMENT.

Synopsis of the Annual Report or Secretary Sherman. The annual report of Secretary Sherman in a voluminous paper, and we have only room for a brief condensation of the arguments and statements. The Secretary says the total ordinary receipts of the year endiDg June 30, 1877, were $269,000,586.62; expenditures, $238,660,008.93, leaving a surplus revenue of $30,340,"577.69. The not decrease of revenue, as compared with last year, was $18,481,425.54. There was an increase! however, in internal revenue, on whisky and tobacco. The first recommend >tion calculated to arrest attention is to the effect that Congress ought to supplement, by appropriate legislation or joint resolution, the Secretary’s own assurance that the bonds will he pa*d, interest and principal, in gold coin, and not simply in coin. The next suggestion is that he be authorized to sell bonds either for coin or for its equivalent in Unit/ d States noto», for the greater convenience of the general public, especially those living at a di-lance fr in any place where gold coin is to bo found for Hale. In regard to resumption, the Secretary is po-itivo that no new legi-lation is required. Ho virtually pledges himself to make greenbacks worth their face inside of thirteen months if left alone. He do3B not propose to retire from circulation the greenbacks, except so much as may be irAexceßs of $300,000,000. He estimates that $100,000,000 in gold will be coin enough to keep that much paper money at par. The Secretary sets forth the advantages of the national-hank system, which we pass by. Upon the subject of savings banks tho Secretary savs: “Tho attention of Congress is called to the great value to our fellow-citizens of the organization of some plan for the collection, safekeeping and profitable employment of small deposits by tho people. How far this can be done without trenching upon the proper functions of the State Governments is a question of difficulty ; yet it is important to secure, if possible, a general system throughout tho United States. This can hardly be effected by the organization of a multitude of savings banks, depending upon tho fidelity, integrity and skill of their < Jficers, but tho beneficial object of such banks might bo secured by authorizing the deposit of small sums with any postal moneyor ier office in tho United States, and the issue of Government certificates, convertible on demand of the holder into 4-per-cent fl bonds of the United States of such character, description and amount as will enable and induce prudent persons to convert their earnings into a public security of .itable value. The money thus received could ho employed in the redemption of outstanding bonds bearing a higher rate of interest. Jiy some such system it is'believed that the groat body of our public debt, reduced its smallest possible burden, could be distributed among our own people. With a. slight modification of existing laws this beneficial roeult would be secured.”

Several of the subjects discussed relate to the mere mechanism of tho Treasury Department, or to matters of comparatively trivial importance. The only remaining subject of special interest and vital to the general welfare comes under tho head of coins and coinage. As the law now stands, silver coin for fractional currency shall ho issued to an amount not exceeding $10,000,000 for an equal amount of legal-tender notes, and the aggregate of such fractional silver outstanding shall not exceed $50,000,000. Tho Secretary recommends the removal of the restriction upon the amount of tho legal tender that may bo exchanged for such silver, believing that the law of supply and demand can be trusted to regulate the matter. Trade dollars to the amount of $31,710,400 have been coined. In the exercise of his lawful discretion in tho promises, the Secretary of the Treasury lias ordered the suspension of the coinage of that anomalous pieco of money, and in case another silver dollar is authorized he suggests that tho trade dollar be discontinued. Having disposed of the preliminary matters of coinage, the Srcroiary enters upon an elaborate discussion of the question of remonetizing silver. Upon this subject ho Hays ; “ The question of tho issue of a silver dollar for circulation as money has been much discus od and carefully examined by a commission organized hy Congress, which has recommended the coinage of the old silver dollar. Wiili such legislative provision as will maintain its current value at par with gold, its issuo is respectfully recommended. A gold coin of the denomiuatiou of one dollar is too small for convenient circulation, while such a coin in silver would he convenient for a multitude of daily transactions, and is in a form to satisfy the natural instinct of hoarding.

“ Of the metals, silver in of most general use for coinage. It is a part of every system of coinage, even in countries where gold is the sole legal standard. It best measures the common wants of life, hut, from its weight and hulk, is not a convenient medium in the larger exchanges of , commerce. Its production is remarkably steady in amount. The relative market value of silver and gold is far more stable than that of any other two commodities—still it does vary. It is not in the power of human law to pri vent the variation. This inherent difficulty has compelled'alt nations to adopt oue or the other as the sole standard of value, or to authorize an a tentative standard of either, or to coin both metals at ati arbitrary standard, and to maintain one at par with the other by. limiting its amount and legal-tender quality, and receiving or redeeming it at par with the other. “ Tlic importance of gold as the standard of va'uo is conceded by all. Since 1834 it lias been practically the solo coin standard of the United States, and since 1815 has been the sole standard of Great Uritaiu. Germany has recently adopted the same standard. France and other Latin nations have suspended the coinage of silver, and, it is supposed, will gradually either adopt the sole standard or gold or provide for the convertibility of silver coin, on tlic demand of the holder, into gold coin. “In the United States, several experiments have been mado with the view of retaining both gold and silver in circulation. The Second Congress undertook to establish a ratio of fifteen of silver to one of gold, with free coinage of both metals. By this ratio gold was undervalued, as one ounce of gold was worth more in the markets of the world than fffteen ounces of silver, and gold, therefore was exported. To correot this, in 1837, the ratio was fixed at sixteen to one, hut sixteen dunces of Giver were worth in the market more than one ounce of gold, so that silver was demonetized ‘ It is urged that the free coinage of silver in the United States will restore its market value to that of gold. Market value is fixed by the world, and not by the United States alone, and is affected by the whole mass of silver in the world. As the enormous and cont’nuous demand for silver in Asia has not prevented the fall in silver, it is not likely that the limited demand for silver coin in this country, where paper money is now and will be the chief medium of exchange, will causo any considerable advance in its value This advance, if any, will be socured bv the demand for silver bullion for coin to be issued by and for the United States, as w$U as if it wore issued for the benefit of the holder of the bullion. If tho financial condition of our countrv is so grievous that we must at every hazard have a cheaper dollar, in order to lessen the burden of debts already contracted, it is far better, rather than to adopt the single standard of silver, to boldly reduce the number of grains in the gold foliar, or to aofmdon and retrace all efforts to make United States notes equal to coin. Either expedicnt will do greater harm to the public at laige than any possible benefit to the debtors, the „ul, e c 2 lnage °f silver will also impair act ft made °, f the c «stoms duties, by the far adhered to, of coUectine thL P<^ C f thaS irold coin has henn *2 those duties in ing and advancing the public* ere iff ° f u P hol ?‘ intr it possible to lessen the hnS 1, by the process of refunding urden of mt€ rest “ Tile (secretary behevesthaf „n . ficial results hoped for from a ikl P l .® bcne : silver coin can be secured bv issuing go** 16 ° f in pursuance of the general poUcy ß o f h jlf°»M of 1863 in exchange for UniFoi notes oou ed from bullion purchased in the S market by the United States, and maintaining it by redemption, or otherwise, at par with gold coin. It could be made a legal tender for such sums and on suoh contracts as would secouhi n lfc U ], e mo ? t general e mulation. It note, easi , l T re<J eemed in United States dema dwi f ßold 22 ,n ’ and onl y reissued when aema ded for public oonvenienoe.”

nm iur Jf au mcrease of 963 in the Stetes dul in the United States during the last fiscal year. There the- non * , asfcers receiving less b«B7 WWM»,