Daily globe., 1878-03-21
w WRECKING JOHN.
HE DOTH HIS FIN1NCIAL TALE UN-
FOLD.

HE DOTH HIS FININCIAL TALE UN-
FOLD.
The Statement Which John sherman Read
the Senate Committec-He Wants to
Smash What is Left of the Country and
Resume in July-He Comedies He Was
Mistaken About Silver-After Everybody
is Ruined Perhaps He Will Concede He is
Wrong on Kesumption--Thc Screed of IL
Financial Pirate.
WASHINGTON, March 2O-At the interview Of
the committee on finance with the secretary of
the treasury in regard to repeal of the resump-
tion act on the 10Th inst, the chairman said:
Mr.. Secretary, have jotted down few gen
cral questions and some in detail which i pro-
pose to ask you, and suppose that other mem
bers of the committee may have questions
which they may desire to ask at q later period.
But will ask some general questions in order
that you may make statement if you choose,
with more freedom than you can by going into
smaller details at the commencement.
First--Ought the resumption act, in your
opinion, be repealed, and if not, why not?
y
say, is very general, and it is rather a legisla-
tive than an executive question. But I have
no objection to answering it. | think that the
resumption act ought not to be repealed; that
1t was declaration Of public policy com
menced with the act of February; 1862, re-
pealed by Congress several times notably in
1866, notably again in 1869, and again, by the
passage of the resum ption act, that we would as
soon practicable redeem any United States
notes which were presented for redemption in
gold and silver coin; that is the declared pub
lie policy of this country, and it ought to be
adhered to, and am fully
convinced that we are able to do what we have
so often promised to do. Beside this, several
States have by their legislation. Indicated a
purpose to conform their laws to ours
Senator Bayard-Which States besides New
York?
Secretary Sherman-Well, Massachusetts,, to
some limited extent. But I don't know how
far, and many corporations and many indiyid-
uals have made their contracts upon the basis
of resumption in 1879. The whole country has
settled down to the conviction that we can re-
sumo, and that business has adopted itself and
contracts have been made with that view. So
far as any suffering from resumption or prepa-
ration for resumption is concerned, we
have already suffered, and now to go
backwards would be only to invite suffering
again. 1t strikes me, therefore, that it is bet
ter to go ahead and that to release the policy Of
resumption now would separate the metals
from our currency and we would have to go
through the same trouble again. 1t would be
an evidence of national weakness. The strug-
gle between metallic money as the basis of
paper money and irredemable paper money,
must be made sometime and 1 think
we had better complete it now. There
tore, L say in regard to your
question, although it is legislative question
for you gentlemen to answer and not for me,
think we ought to adhere to the policy Of re-
sumption and complete it.
The Chairman-Do you think resumption is
practicable under the present law. You have
partially anticipated that question, but still /
ask it..
Secretary sherman--That is a questlon very
much of figures, and supposing that L would
have to answer, have brought quite number
of documents here which will give you and
they will speak better than l can.
The best evidence that we are able to resume
the first Of July next, is the progress that has
already been made. When the resumption act
passed, the premium on gold about 1015
per cent. Since that time it has beed reduced
to nominal rate. 1t is now a little over one
cent Since that time we have accumulated
in preparation for resumption, a large sum of
gold. l have taken some pains to get the
figures, which l will give you now. They are
accurate, so that you may have the exact con-
dition of the treasury. This is the statement
OF the treasury, made yesterday:
TREASURY UNITED STATES ! -
J
SIR: In accordance with your request, have
the honor to state the amount in gold and sill
yer in the treasury on the 28th ult., the date Of
the last debt statement, which is as follows,
namely:
Gold coin. ....................... SILT, ,151 ,455
Gold bullion. NEUTRALITY-SUSPICIOUS.. 1887 300
Total. Observation-Disclosures. 1926, ,O88.755
Less amount to credit of disburs-
ing officers and outstanding
checks. .................. SCI, 1873, 62e
Gold certificates actually Outstand-
ing 44,5ss, SOC
Called bonds and interest. ....... 6,818 ST.
Interest due and unpaid ......... 4,909.705
Total. Observation-Disclosures. $62.416,5 sos
Available gold coin and bullion. $62 672, ,24t
Available silver coin, fractional. 5,972 69s
Available silver bullion. ......... 3,13O,7
Total available gold and silver.... Tits, ,S6(
Amount of gold coin in treasury. III ,45t
Amount of gold bullion. .......... 1887, 800
Making an aggregate Of gold coin and golc
bullion, 1924, ,0SS, 755.
This is, however, subject to q deduction o.
the following items
misunderstanding checks to officers, $3.50,
626. Although that is really money in tn,
treasury, yet it is drawn for and not paid.
The Chairman-Doesn' that always happen
Secretary Sherman--It always happens that
some money IS drawn upon and not paid, anC
this item is also large.
Senator Bayard-You spoke Of gold bulliol
that is the property of individuals. Is itnow
Secretary Sherman-Au that is government
property.
Senator Bayard--Where does the government
get bullion.
Secretary Sherman--We buy it, OF receive
on deposit or melt foreign coin into bulliol
and coin it as needed. We receive it just lik
gold coin, but not much of it in comparison
with the coin received.
Second, Then there coin certificates ont
standing $44, ,498, 500 for gold deposited b
banks and individuals.
Third, Called bonds and interest sc, Bis, ,677
that amount is always large, and has reache
eighteen millions.
Fourth, interest due and unpaid 50 ,909, ,7O5
That makes $62, 1876, 500 gold subject to de
leaving available gold coin and bullion, agains
which there is no demand a liability of $62
662,246. There is silver fractional coin SIS, ,972,
1876, Silver bullion, So, ,130,716.
can say, though, if this statement wa
made up to date the silver bullion would be
good deal larger. We have bought lately. Th
total available gold and silver over and abov
demand liabilities is 81, ,177,5 586.
Of the items that counted here and dt
Quoted from gold about $2O,OOO,0OO are prat
tically available for resumption, because th
outstanding drafts and called bonds an
interest due and unpaid, although due vet
The amount actually in the treasury is gene1
ally about the same. 1t is remarkable tina
much money is left after
is due. Bonds that are due an
not presented, and interest that is due fc
years, are left in government custody withou
being drawn. OF the amount of gold certif
Gates issued, the law authorizes 20 per CEN
more certificates to be issued than the amour
of gold, gold bullion deposited althoug
that power has never been exercised, at least nc
within my recollection, not certainly With
nv term,