The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-03-28

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maintained more easily upon double
standard than upon single standard.
The bulky character ofsilver would pre-
vent payments in it, while gold, being
more portable, would be more freely de-
manded, and think resumption can be
maintained with less amount Of silver
than of gold alone.
Senator Bayard-You are speaking OF
resumption upon the basis of silver, or
silver and goldP
Secretary herman-Yes, sir; / think
IL can be maintained better upon BIZ
metallic or alternative standard than
upon a single one, and with less accumu-
lation of gold. In this way the remon-
etization of silver would rather aid re-
sumption. The bonds that have been re-
turned from Europe have been readily
absorbed, remarkably 30. The recent
returns in New York show the amount
of bonds absorbed in this country is any
way q million and quarter day. This
shows the confidence of the people in
our securities, and their rapid absorp
ton will tend to check the European
scare.
Senator Voorhees-That shows, Mr..
Secretary, that this cry of alarm in New
York was unfounded, then; that capital
seeks our bonds when this bi-metallic
basis is declaredP
Secretary Sherman-Yes; many cir
CumstanCes favor this. The demand for
bonds extends to the West and to the
banks. have no doubt we can sell four
and a half per cents, and think within
month we can sell all we want for four
per cent bonds to carry out the resump-
ton laws, for / would not accumulate
more than $5.000000 month, and that
largely in silver and gold bullion, There
is no special necessity to force the bond
market in order to maintain resumption.
We now have from $7l 100000 to SOL 600.
600 on hand, and every one can measure
how much more will be necessary to
maintain resumption. Ifthesale of bonds
was ever 80 free l would not accumulate
more than $5000000 a month of both
metals, and all sales beyond that should
be applied for refunding 6 per cent bonds
Senator Allison-Do you think you can
add largely TO the stock of coin in this
country by your process of adding to
your reserves $5.000000 per month? That
is to say, will you accumulate from other
countries, or simply draw into the Treas
ury the accumulation already existing in
our own country?
Secretary Sherman-I am glad you
mentioned that point. Although since
Jan. lst, last, we have accumulated no
coin the Treasury, the amount we had
prior to that accumulated per month
since then has gone into the banks. The
banks have already accumulated more
than S5.0O0000 in gold since Jan. lst.
Senator Morrill--They have increased
their reserve by the amount of So 600 600
gold per month?
Secretary Sherman-Here is a state
ment which shows the aggregate amount
of specie held by the banks of the Usi-
ted States during the several periods
therein mentioned. Now, in the United
States there haye been no statements Of
National Banks since December last; but
they have in the city of New York a
weekly statement of the Clearing house.
This shows the amount at the beginning
of every week from Jan. g. 1878 On
that day the amount was S2l SS4.l0O
That has increased in amount until
March l6, 1878, when ;treached $3455l-
600, difference of about $l9 600 600,
which is Just about So 600 600 per month
increase; so that this accumulation ofcoin
has gone on at the banks since it stopped
in the Treasury.
The Chairman-What effect would
repeal of the Ret umption Act have upon
the relations Of the currency, legal ten
ders and our coin, gold and silver2
Would not repeal of the Resumption
Act cause fall ofpaper below gold and
silverP
Secretary Sherman-I think a repeal
of the Resumption Act would at once
cause a widening between coin and pa
per money, depending entirely upon the
confidence the people at large would
have in the ultimate redemption of pa
per; but don't want to enter upon this
delicate question.
Among other questions asked was the
following by Senator Ferry: You state
that with $40, 100000 gold reserve you
would be willing to hold $500, 10000 as
part of the currency, and meet resump-
ton on that basis. Now, | desire to ask
if, with contraction as it is going on, it
would be any obstacle to resumption
even ifthe outstanding circulation should
be $320,0O0,000 on the lst of January
next?
Secretary Sherman-I think the $20,.
100000 would be provided for by the in
crease Of bank notes.
Senator Ferry-Without any direction
of further contraction than under the
present Resumption Act?
Secretary Sherman-The present Re-
sumption Act would be sufficient l
would not by myself provide for and di-
rect the contraction of the currency ex.
Cept what is done under the act.
The Chairman - Don't you believe
there will be an expansion come upon
us naturally, or by the action of the
Treasury Department, on the lst Of Jam
uary? Will there not be more money
in actual circulation after that period2
Secretary Sherman-I think and hope
so.
Senator Ferry-Would not that pro-
duce healthier condition?
Secretary Sherman-Yes, sir.
Senator Bayard-What would be the
effect, in your opinion, of declaration
that $300,000,00O of Treasury notes might
be issued as minimum and as maxi
mum, to be supported by retention by
law of $100,000,000 of gold in the Treas.
ury
Secretary Shenandoah would be
beneficial, because l think the fear about
that $3OO,OOO,00O would be overcome.
Senator Kernan-And your opinion is
that the authority to reissue legal tender
notes should he expressly given by law ?
Secretary Sherman-I think that au-
thority to reissue, unquestioned and uu.
doubted, would take away the fears of
all classes of people. First, those in ia.
vor of initiation, who do not want the
greenback destroyed; then in the Eastern
States, where they think we ought to re-