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

rather aid resumption. The bonds that have
been returned from Europe have
been % readily Oily absorbed remarka b.
New York show the amount of bonds ab-
sorbed in this country is at least a million
and a quarter day. This shows the con-
fidence of the people in our securities, and
their rapid absorption will tend to check
the European scare.
Senator Voorhees-That shows, Mr.. Score
tary, that this cry OF alarm in New York was
unfounded. Then this capital seeks our
bonds when this bi-metallic basis is declared
Secretary Sherman-Yes, many circum
stances favor this. The demand for bonds
extends to the west and to the banks
/ have no doubt we can sell Az per cent.
bonds, and / think within a month we shall
want for four per cent. bonds to carry
out the resumption law, for / would not &C
cumulate more than 50, 000, 900 month, and
that largely in silver and gold bullion.
There is no special necessity to force the
bond market in order to maintain resump-
ton. We now have II TO 81 millions
on han1, and every one can measure
how much more will be necessary to main
tain resumption. If the sale of bonds was
ever so free / would not accommodate more
than s. 0O0 900 a month of both metals. and
all sales beyond that should be applied for
refunding six per cent bonds.
Senator Allison-Do you think that you
1
process OF adding to your reserves $5,0O0,000
per month-that is to say, will you accumu-
late from other countries. or simply draw
/ into the treasury the accumulations already
existing in our own country?
/ Secretary Sherman-I am glad you men,
/ toned that point, although, since the 1st OF
/ January last, we have accumulated no coin
/ in the treasury. The amount that we had
! prior to that accumulated per month has since
then gone into banks. The banks have
already accumulated more than S., 900, 600 in
/ gold since the LIST OF January.
! Senator Morrill-They have increased their
reserve by the amount OF 100000 in gold
I per month.
Secretary Sherman-Here is a statement
which shows the aggregate amount of specie
held by the banks of the United States dur
ing the several periods therein mentioned.
I Now In the United States there has been no
statements of national banks since December
! last, but they have in the city of New York
weekly statement of the clearing house.
/ This shows the amount at the beginning of
every week. On January >, 1873, the
amount was $21, 1884, 100. That has IN
creased in amount until March 16, 1873
when it reached $34, 557 900, difference of
about $500 900, which is just about
So, O00, 900 per month increase; so that this
accum ulation of coin has gone on in the
banks since it stopped in the treasury.
Senator Ferry-Then if you embrace the
accumulation in the banks and the treasury
it has been progressing gradually at the rate
of about five millions per month?
Secretary Sherman-Yes, sir, more than
that. In New York alone, the accummula-
ton is five millions per month but at
Boston and PhiladeIphia il is also going on.
Senator Ferry-What in your Judgment is
the accumulation in both the banks and
treasury per month in amount?
Secretary Sberman-I should think it to
be between $1,000 600 and 100000 per
I month.
In giving an answer to Mr.. MOrrills ques-
ton as to the genuine effect OF the silver bill
l would not like to give positive opinion.
l do not think, taking 1t altogether II is an
obstacle in the way of resumption. 1t has
operated in some respects adversely, in some
respects favorably, but on the whole l
do not think il should discourage US from
resumption, or from carrying out our gen.
eral policy.
Senator Jones-Then inits effect upon the
return OF the vast amount of bonds yon re-
fer to would there not be an element of
strength added in favor of resumption, in
that the interest on the bonds returned
would not be a constant drain upon the
country?
Secretary Shermau-Undoubtedl
Senator Jones-WOuld the fact that they
came back enable US to maintain resumD-
ton much easier?
Secretary Sherman-Undoubte5l The
fact that we have paid S5l4, 900 600 of the
debts in foreign countries is favorable.
There is another point in this connection, il
seems to me- that it is not necessary to deter
mine this question now, because a sufficient
determine the effect of the sill
yer bill, and you had better
let things run along and see its effect. 1t
may be that its effect Will be such that all
will favor resumption and that resumption
: will come without effort The passage OF
this bill can have no effect until January
next. and 1t may be before that time all will
agree that it ought or ought not be repealed.
As you have this measure in the senate you
can control it by a majority vote OF the sen
ate at any time. Why not let 1t stay here?
Senator Voorhees-Did 1 understand you
to say that you would undertake to maintain
resumption with ninety millions OF coin
reserve?
Secretary Sherman-No, sir. / would
undertake to resume upon the power afford
ed by the present law, by going on and do
ing what did last summer.
Senator Voorhees-How much surplus did
you say you had on hand?
Secretary Sherman have now 81 900,
O0O
Senator Northeastern you say that you
would be willing to undertake resumption
under the existing laws by the LIST of next
January. Now, with the aid of the silver
bill and coinage what amount of coin would
you expect TO have on hand with which to
undertake resumption at that time?
Secretary Sherman-I would accumulate
about s., DOC, 600 per month of both metals
from the LIST of April to the 1st of January
which would be As 600 600, and il the market
is favorable L think L would try to make
good the loss that / have suffered by not
accumulating in January, February and
March of the present year, | think | could
in this way accumulate fifty or sixty mil
lions.
Senator Voorhees-That would give you
$150,0O 600.
Secretary Sherman-No, not so much; mel
do think ii is necessary to have so much.
Senator Jones-And does that look to
eliminating the legal tender function on the
LIST of January next?
Secsetary Sherman-No, think not, sir
L am In favor of maintaining the legal ten
der cure cy, but that is in controversy.
Senator Kernan-You thought that you
could practically redeem all that would be
|, | presented.
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