avoid their deposit for silver certificates. Officers receiving
deposits of currency were expected, as far as practicable, to see
that the silver dollars were put in circulation. Shipments, however,
were to be made only to points in the United States reached through
the established express lines by continuous railway or steamboat
communication.

I regarded this as practically the resumption of specie payments
in silver dollars, but the chief object aimed at was to secure a
general distribution of these dollars throughout the United States,
to the extent of the demand for them, without forcing them into
circulation.

General Hillhouse recommended the payment of silver for all purposes,
not only for circulation, but for the payment of bonds and customs
duties. This I fully considered, but thought it best for the
present to get into ordinary circulation among the people, in points
remote from the ports of entry, as much silver coin as practicable,
before offering it freely in cities where it would be immediately
used for customs duties. I said: "If, within a month or so, we
are able to reduce our stock of silver to five or six millions, I
should not hesitate a moment to offer it then freely in New York
and elsewhere, and run the risk of doing without gold revenue for
awhile."

On September 7 I issued the following order:

"Treasury Department, September 7, 1878.
"Hon. James Gilfillan, Treasurer of the United States.

"Sir:--On and after the 16th day of this month you are authorized,
at the treasury in Washington, and at the several sub-treasuries
in the United States, to exchange standard silver dollars for United
States notes.

"Very respectfully,
"John Sherman, Secretary."

The question was raised in the public prints, and in the department,
whether I had legal authority, under the existing laws, to pay
silver dollars in exchange for United States notes before the 1st
of January. It was plausibly urged that the payment of this coin
in advance of the time fixed for resumption was the exercise of
authority not authorized by law. I, therefore, on the 13th day of
September, three days before the previous order would take effect,
directed the treasurer of the United States as follows:

"Treasury Department, September 13, 1878.
"Hon. James Gilfillan, Treasurer United States.

"Sir:--Some question has been made whether the issue of silver
dollars in exchange for United States notes, before January