Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1878-04-10
snER MAN ON REsuMprlow.

retary Sherman, to-day, before the
House Committee, insisted that the
government was in as good and per-
haps better condition for resumption
as the Bank Of England.
Ewing interrupted - to where he
intended to get the necessary millions
of gold.
The Secretary said it might pre-
vent his lulfilling his plans to expose
them thoroughly, but he would get
the money chiefly from tho sale Of
bonds. Not much would come from
the surplus revenue. He expected
$50, ,O0O, 600 in gold by the sale Of
bonds, but as to the kind of bonds he
would sell he must exercise his own
discretion, and he was responsible
therefor. He relied chiefly ON home
sales. He did not want to go abroad
for gold, but desired to keep gold
and silver here, and then he would
have more than he wanted. He
would issue silver dollsrs only in ex-
change for coin or to pay coin liabil-
tiles and for bullion, which he could
buy at par in gold without any loss
after the first 81, ,OOO, 900 is purchased,
for which the silver bill approprist-
ed. He would buy all the rest Of the
bullion with silver coin, which he
hoped would circulate largely. The
treasury must hold silver at par with
gold until it had enough to buy ev-
erything with it, or until legal ten
ders are at par. Silver, being receiv-
able for duties, would come into the
treasury, but be could not say when
he would begin paying it out for cur
rent expenses or for principal of debt,
as that would be regulated by the
status of the three kinds Of money.
In answer to Ewing the Secretary
made long argument to show that
it was right and proper, and that all
Secretaries had observed the plan Of
paying first tho current expenses Of
the government before providing for
the sinking fund. This had caused q
deficiency In the sinking fund for
which Congress was responsible, as
it had not made sufficient appropria-
tions to meet all expenses, and the de-
ficiency would continue, unless, as he
desired, but did not anticipate, Con-
gress should levy tax ON tea and
coffee.
The Secretary said the drain Of
gold from the treasury was most inn
probable after resumption. The on
ly liabilities then would be $780, OOO,-
600. There would be $l20, ,O00, 600 to
meet it. OF course this would not
liquidste the claims, but it would be
impossible to gather together such
large mass Of notes a. to exhaust the
the treasury or to make continuous
drain upon it, and the very effort to
do so would enhance the value Of
United States notes. A drain Of @6,-
100000 to so, 100000 would likely
bring them to o par with gold and
then there would be no object in
driving them out. II they remained
one-fOurth per cent. above gold the
treasury would be broken pretty
quick.
In answering Ewing he said he did
not think it possible that . necessity
would arise to check the drain from
foreign creditors, but il it did he
would resort to such means ~ other
countries had resorted to, temporary
suspension. That was question for
Congress.
Phlllips-Then do you think the
Secretary of the Treasury has power
to suspend specie payment?
Secretary Sherman-No, cir. But
if demands were made upon the
Treasury which the Secretary could
not pay, unless he was to pay them
out of his own pocket, he would have
to stop paying.
Phillips-would not . general war
in il, Europe Eo,S result in raising the price
Secretary Wise men diff
fer very much upon that. thought
the European war wonld cause such
. demand for our agricultural pro-
ducts, and for everything reproduce,
that 1t would probably inspire conf
dence and diminish danger. II he
were over confident, as some Say, why
Congress would meet In December
and then il the premium ON gold had
not nearly disappeared, II would be
90 apparent that resumption was i'm
possible, and that speedy relief BY
legislation would be had. The Ma
tional Banks would not cooperate to
precipitate their 70,OOO, 900 Of legal
tenders on the government, nor keer
up continual drain ON tho Treasury
and besides tho Treasury had ample
power to make the national banks re.
deem their circulation in gold, silver
or legal tender notes. He denied
having threatened the banks. The
conference lasted three hours.