Democratic Sentinel, Volume 4, Number 3, Rensselaer, Jasper County, 27 February 1880 — SHERMAN. [ARTICLE]

SHERMAN.

His Replies to tlie Senate Finance Committee. Washington, Feb. 18. The statement of Secretary Sherman to the Senate Finance Committeo in secret session lias been printed from the stenographer’s norep. The following five questions were asked: 1. What reason, if any, is there for refusing to piss a bill authorizing the receipt of legal tenders for customs dutiesV 2. Why should not tho trade-dollar be converted into a standard dollar? 3 What has been the cost of converting the interest-tearing debt, as it s ood July 14, 1870, to what it is now, including double interest? 4. The effect of the abolition of the Jegaltender quality of greenbacks upon the paper currency. 5. Ihe necessity for a sinking-fund, and how it is managed. Secretary Sherman’s answers are contained in quite a iarge pamphlet, of which the foil ,w----ing io a briof nummary : To the first inquiry Secretary Sherman, in substance, answers: The United States, by act of Fel). 25, 180 ), provided that the duties cn imported goods shall be paid in coiD, aud that coin shall be reserved as a special fund for the payment of interest on the public debt and llie notes of the United Sta es. There is no obj ction to receiving legal tenders for customs so long as legal tenders remain at par. The department can keep up this practice only as long as parties holding interest obligations are willing to accept the same not s in payment therefor. If from any cause the legal tenders eiiould dept e< iite below coin, the Government would be required to pay the interest on the public,debt in coin, and if customs dues were payable in legaltender notes tho treasury would have no gold supply. Referring to tho statement in the annual report of December, 1878, that on tho Ist of Jammy he would reco ve United Slates notes for customs dues, Secret try Sherman says he now concludes that it would be better to leave the law as it is, 1 -aving the Government the right to demand payment in coin for customs dues, aud tlie individual the authority to demand coi i for interest of the public debt. In other words, he thinks that to pass a law authorizing ilio receipt of legal tenders for customs would bo to substitute for a fixed contract between the Government. and the holder of its obligations a mere order of tbe Treasury Department. He would have no objection to a law wi’h this provision: “As long as treasury notes are redeemable into coin at the sub-treasury in New York.” The Attorney G.-neral, it appears, lias expressed tbe opinion that the treasury t clinically could treat the note as a coin cirt fisate. The legal-tender notes are now only received in tl-.o naturo of a coin certificate. Inasmuch as Congress has not dissen’ed to this constructon of the law, Secretary Sherman consideis that he has a right to continue to receive tho legal lenders for coin. Secretary Sherman thinks a law passed in the following form would remove the objection: “That to receive legal-tenders for cu-toms dues would violate obligations to creditors. Notes thus received will in every instance be d-posited with the Treasurer or As-istant livasuter of the United Stales, as are other collections of such d ivies, to be redeemed from time to time in coin on Government account as the convenience of the service may demand.” In response to tbe question why the trade dollar should not be converted into a standard silvi r dollar, Secretary Sherman said: “There is no objection, in my mind, to provide for exchange of the trade dollar for the standard silver dollar. The only point is whether the trade dollar shall be treated as bullion or as a coined dollar of the United Slates. Now I am clearly of the opinion that it ought to be treated as so much bullion issued at the expense of the merchants for their convenience aDd benefit, and without profit to the United States, and, therefore, not entitled to any preference over other bullion; and we might say not so much, because it was issued to private parties for their benefit and at their cost, but stamped by the United States merely to enable the coins to be used to better advantage in a foreign market. I have not, therefore, any objection to the bill, if you allow tne United States to pay the same for these trade dollars as for other bullion.”

As an answer to the question “ What effect the legal-tender quality of the greenbacks will have on our paper currency ?” Secretary Sherman refers the committee to liis last aunual report. The expense of refunding $500,000,000’0f 5-per-cent, bonds was $2,500,000. Mr. Sherman’s answer to tho inquiry as to the sinking fund contained nothing new on the silver question. He referred the committee to his interview with the House Commerce Cora mittee last year.