The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-03-27

coin in the treasury, over and above all de-
maud and Liabilities, is 81, 775, $50.
Senator Jones-Could the amount of sub
sidiary coin which you speak of as being on
hand be counted as in any way assisting re-
sumption?
Secretary Sherman think so, because it
is exchanged for United States notes or
fractional currency, and can be paid out for
current debts.
Senator Jones-I thought you could only
exchange it for fractional currency
Secretary Sherman-Probablv there is
enough silver coin on hand TO redeem all the
balance of fractional currency. 's
The Chairman-rhat is, the secretary
thinks some fractional currency has been
lost.
Secretary Sherman-Now, in regard to an
other point pertinent to your question, we
haYe, in the process OF preparation for
resumption, reduced the volume of United
are familiar to YOU. The amount was $685.
100000 at the time of the passage OF the
resumption act and the amount now is
$34S, els, 024. Again, the amount of out
standing bank notes has been reduced. On
December 81, 1915, the amount was S346,
40 756; on December 81, 1877, it was $321,-
6T2 sos, and on February %, 1873 the amount
of bank notes outstanding was 1921, $50 991;
but the amount of bank notes of banks in
existence not in process of liquidation
was $299, $40, AS the difference between
these two sums being the notes of banks in
process of liquidation. Although the notes
are in circulation, vet an equal amount of
greenbacks are in the treasury as special
deposit to redeem them.
Senator Kernan-They make part of the
$34S 0O0, 600 legal tender notes?
Secretary Sherman-Yes; as many of the
legal tender notes are held In the treasury
as there are bank notes in process of redemp-
ton.
Senator Ferry-Then really there should
be but $299, 900, 600 of national bank notes
outstanding.
Secretary Sherman-If you count the
whole greenbacksas outstanding there would
be $299, 900 900 national bank notes. Then 1T
must be remembered that United States
notes have been in circulation since 1862.
and bank notes since 1864, and that large
sums are lost or destroyed. This diminishes
to some extent the amount outstanding how
much, l don't know. You can judge as
we'll as /.
A statement was here produced showing
by months the issue of silver coin and the
reduction of fractional currency under the
{ act of April 10, 1876, from April 90 1876, to
February o. 1873, the amount of fractional
currency redeemed being S24, 31S, 039 and
/ the total silver payments S3S, 479 30S. The
/ total amount of fractional currency notes
outstanding on the 10th inst was 81 100, us.
| The average monthly reduction of the out
standing fractional currency, estimated upon
I the basis of the redemption of the past four
months, is $4,000.
Senator Jones-How many millions, then,
I of legal tenders do you estimate as being in
/ circulation now outside of what you hold to
/ redeem the notes of banks IN process of
I liquidation?
Secretary Sherman-I should think $780,
100000. Deducting those that have been
q 1.o-f a nd ko11
stanking bank notes, make the aggregate of
bank notes and greenbacks at about $685.
Z 600. 900. To repeat the general result of our
preparations for resumption. we have
already practically abolished me premium
on gold; we have reduced the amount
I of United States notes and the amount
of national bank notes outstanding. We
have paid of, practically, the fractional cur
rency, and now we have very remarkable
circumstance in our favor. The balance of
trade is in our favor to the amount OF $780,
600. 600 year, bringing silver and gold and
bonds back TO the United States. In the last
three years the balance. of trade in our favor
/ is S414, 034, 666 L bring you this statement
because thought you might deem it impor-
tant to have the exact figures about the state
of our trade. The table showing the details
leave with you.
To number of questions asked Secretary
Sherman replied: We have got both gold
and silver from England, but we must do il
as Lincoln said, unbeknOwn to them. II
must come by the natural currents of trade.
To attempt to bring by any artificial move
ment large sum OF gold 10 this country would
be to create alarm. All last summer and fall
the accumulation was from s.. 900 600 to
$4,000, 600 each month. Some of that came
from our own mines, and some OF it from
abroad, but we accumulated it without any
possible Hjury to anybody. Now, in a gen
lrol IN OnQctInn / do
my opinion officially and personally, thai
for the reasons have given we resume
on the LIST of.January next under the basis
of the existing law.
The Chairman-What effect has the silver
bill had, or is likely to have, on resump
ton?
Secretary Sherman-I do not want to tread
on delicate ground. In answering that ques
ton, Mr.. Chairman, shall have to confess
that l have been mistaken myself as TO The
silyer bill. l have watched its operation
very closely. / think the silver bill has had
some adverse effects, and 1t has had some
favorable effects on the question of resump-
ton, perhaps. The best way for me to pro.
coed would be to state the adverse effects
first. IL has undoubtedly stopped refundinl
operations. Since the agitation OF the silver
question / have not been able largely to sell
bonds, although have made every effort tC
do so.
Senator JODeS-At what date was the las
bond sold?
Secretary Sherman-We are selling bond!
sll the time.
Senator Jones-I mean the refunding o.
the bonds into per cents.
Secretary Sherman-The 10th of October
was the time when the last of the popular
loan was paid for, and we had then a cal
ready TO issue $4,000, 600, and associates a,
they had arlght to do, withdrew the call
The sales from the last of September, 1876
to the 18Th of October, we're about 1915. 600 600
We sold 5000, 900, 900 ~ per cents, and ther
we sold 600 in A Il per cent. bonds.
Senator Allison-About year and clever
months.
Secretary Sherman-Since October last We
have sold 100000, and perhaps now the
sales have gone up to between 81, 900, 900 anc
S., 600 of the four per cent. bonds Now
another adverse effect the silver bill has hac
is to stop the accumulation of coin. Since
the LIST of January We . have accumulated M
coin except for coin certificates, except the
balance of revenue over expenditure, the
revenues in coin being more than enough Il
pay the interest of the debt and coin liabili
ties. Another effect that the silver bill ha
had is Ia cauSe the return of Our bond,