Daily globe., 1878-03-21

millions, but the actual gold ana silver DulNOn
coin IN the treasury over and above all demand
ed liabilities is $71, ,775.690.
Senator Jones-Could the amount of sub
sidary coin which you speak of as being on
hand be counted as in any way assisting re-
sumption.
Secretary-I think go, because it is exchanged
for Uuited States notes or fractional currency,
and can be paid out for current debts.
Senator Jones-I thought you could only ex-
change it for fractional currency.
Secretary-Probably there is enough silver
coin on hand to redeem all balance of fraction
al currency. 2s1tf-
The Chairman-That is. the Secretary thinks
some fractional currency has been lost.
Secretary-Now, in regard to another point
Of preparation for resumption, reduced the
volume of United States notes. The
precise figures are familiar to you. The amount
was 1882 zoo, ,0G0 at the time of passing the re-
sumption act, and the amount now is $685.
6lo,O24. Again, the. amount of outstanding
bank notes has been reduced. On December
81, 1875, the amount was 3346, ATS, 1856;
on February %, 1878, the amount of bank
notes outstanding was $32l, ,989,991, But the
amount of bank-Eotes of banks in existence,
not in process Of liquidation was 1925, $40, AIS,
the difference between those two sums being
notes of banks in process OF liquidation. Al
amount of greenbacks are in the treasury as a
special depost to redeem them.
Senator Kernan-They make part Of the
$34S, ,0CO, GOO legal tender notes. f<aa
Secretary-4es; as many of the legal tender
notes are held in the treasury as there are bank
notes in process of redemption. t''sf
Senator Ferry-Then really there should be
but $299, ,G00,000 Of national bank notes out
standing?
Secretary-If you count the whole green
backs as outstanding, there would be $780,
0O0, 900 national bank notes. Then it must be
remembered that United States notes have been
in circulation since 1862, and bank notes since
This dinlinishcs to some extent the amount
outstanding, how much I don't know. You
can judge as well asI.
A statement was here produced showing by
the months issue of silver coin and the reduc-
ton of fractional currency under the act OF
April 10, 1876; from April 20 to Feb. %, 1878,
the amount Of fractional currency redeemed
ments $38, 479, ,308. The total amount of frac-
tional notes outstanding on the 18th inst was
'$17, ,109,7l5.
An average monthly reduction of outstand.
ing fractional currency estimated upon the ba
sis of redemptions Of the past four months is
1920, 1000.
Senator Jones-How many millions then, Of
lation now outside of what you hold to redeem
notes of banks in process Of liquidation.
Secretary Sherman should think $780,.
600, 600, deducting those that have been lost OF
destroyed and those held for outstanding bank
notes, make the aggregate of bank notes and
greenbacks about $643,0O0,000.
To repeat the general result Of our prepara.
tions for resumption, we have already
partially abolished the premium on gold. W.
have deducted the amount of United States
notes and the amount Of national bank notes
outstanding. We have paid off practically the
fractional currency, and now we have
very remarkable circumstance in oul
the amount of $l6O, 100000 year, bringing
silver and gold and bonds back to us. LII th,
last three years the balance of trade in ou,
favor is S414,O34, ,66G.
bring you this statement because thought
you might deem it important to have th,
actual figures about the state of our trade
The table showing details will leave witt
you.
To a number of questions asked, Secretary
Sherman replied: We have got to get boti
gold and silver from England, but we must do
it as Lincoln said, unbeknownst te
them. 1t must come by natural
currents Of trade. To attempt to bring by any
artificial movement a large sum of gold to this
country would be to create alarm. All last
summer and fall the accumulation was from
SIS, 100000 to 100000 each month Some OF
that came from our own mints, and some Of il
from abroad. But we accumulated it without
possible injury to anybody.
Now, in a general answer to your question,
do express my opinion officially and personally
that for the reasons I have given, we can re
sumo on the 1st of January next under The
basis of the existing law.
The Chairman-What effect has the silver
bill had or is it likely to have on resumption?
Secretary Sherman-I do not want to treac
on delicate ground in answering that ques
tion.
MI. Chairman-I shall have to confess that
have been mistaken myself. Now as to the
silver bill. have watched its operation very
closely. think the silver bill has had some
adverse effects and it has had some favorable
effects. upon the question of resumption.
Perhaps the best way for me to proceed
would be to state the adverse effects:
First-It has undoubtedly stopped refund
ing operations. Since the agitation of the sill
yer question have not been able largely t,
sell bonds, although have made every effor
to do SO.
Senator Jones-At what date was the las
bond sold?
Secretary-We are selling bonds all tn
time.
Senator Jones-I mean the refunding o
bonds into per cents.
Secretary-The 10th Of October was the tim
when the last Of the popular loan was paid fo
and we had then call ready to issue of $40,
OO0,00O, and the associates, as they had a righ
to do withdrew the call. The sales from Sep
tember, 1876, to the 18th of October were abou
$275, 900, 900. We sold $2O0,OOO,OO0 ~ pe
cents and then we sold S75,0O0.O00 AZ pc
cent. bonds.
Senator Allison-About year and eleve
months.
secretary-Since October last we have sol
81 100000, and perhaps now the sales hav
gone up to between 50, 100000 and $4,000, 90
Of per cent bonds.
Now another adverse effect the silver bill
has had is to stop the accumulation of coir
Since the lst Of January we have accumulate
no coin except for coin certificates and exceE
the balance of revenue over expenditure. Th
revenues in coin being more than enough t
pay the interest of the debt and coin liabilities
| we accumulated some coin,
Another effect that silver has had is to caus
the return Of our bonds from Europe. Althoug
the movement of our bonds in this directio
has been pretty steady for more than yea
1t is latterly largely increased; how much
am not prepared to say. On the other hand,
| will give favorable effects. In the first plac
the !: silver bill satisfied stron
public demand for bi-metalic none,
largely sectional. No doubt there is a diffe
ence of opinion between the West and Sout
and East on this subject, but the desire for til
remonetization of silver was almost universa
In government like ours it is always good
obey the popular current, and that has bee
done. l think, by the passage of the silver bill
Reconciliation can be maintained more easi]
upon a double standard, than upo
a single standard. The bulky character .
silver would prevent payments in it, while col
being more portable, would be more fully d
manded, and think resumption can be mai
tanned with a less amount of silver than Of go
| alone.
Senator Bayard-You are speaking Of /
sumption upon the basis Of silver, or Of silv
and gold. =
Secretary Sherman-Sir, L think it can
maintained better upon bi-metallic or alte
nation standard than upon single one, an
with less accumulation of gold. In this VIZ
reconciliation of silver would rather aid +
/ sumption. The bonds that have been returns