The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1878-04-05

and not paid for, the Secretary said that no
bonds were ever delivered until paid for
Another question by the committee was az to
the usual amount Of annual coin liabilities.
The answer to this was (taking the last fiscal
year az basis):
Coin interest. ACKNOWLEDGEMENTS % S83 All
Amount applied to the sinking fund 44s'b0o
Amount paid for diplomatic SERVICE 755,2s6
Amount paid for foreign naval service. 2,224,l24
Amount Of custom refunds. 524 500
Amount expended for refunding ma
tional debt, parting and refining bull
ION, etc. .......................... 90l, 1927
IotA.. .................. $lO2 46C ,O68
Another question by the committee was az to
the amount OF fractional currency redeemed
and carried to the account of the sinking fund.-
and a. to what applications of coin have been
made on account OF the sinking fund during
the current fiscal year.
Secretary Shermans reply to this gave the
amount OF the fracLOiiai currency Applied 10
the sinking fund in 1876 at $1,000, l42 IN 1877
as GA, 043, 458 and for the expired portion OF
the present fiscal year as So 3S2, 621 making
the total applied to that fund $24, 48S, 221. No
coin application had been made to the sinking
fund during the current fiscal year, except the
redemption Of bonds heretofore called TO the
amount Of S67, 100 In this connection the
Secretary defined what was meant by "balan-
ces" in the sinking-fu account. They simply
meant the excess or deficit in the annual pay
me mt to the sinking fund, and which was carried
to the debit or credit Of the next years account.
An exception to that rule was made
after the panic of 1878, when the reve-
nues fell Off, and there was a deficit of
$106, 305,OO0 in the sinking fund. Secretary
Bristow, seeing the improbability Of making
good the deficit, dropped it entirely, and 1t was
no longer carried forward in the sinking fund
account. Last year the deficit in the sinking
fund had been 80, 235, 900 simply on account OF
the lack Of revenue to make it good.
The Chairman-On the whole, however, the
sinking fund had been more than made good
since the act began to operate?
Secretary Sherman-Yes. You will find
statement of that in Mr.. Morrills report. The
sinking fund was never kept as an account in
the Treasury Department until after the Re-
funding act in 1870. Up to that time state
ment was made az to how far the sinking fund
had been kept up, and it was found that by the
application OF the surplus revenue to the pay
ment Of debt, we had largely exceeded the
stipulations of law to the amount Of over $780,,
600 900.
Further on in the conference the question Of
the sinking fund was taken up by Mr.. Ewing,
and the proper construction of the law was
discussed between him and the Secretary, the
Secretary taking the ground that,the cancella-
ton of legal-tender notes was virtually pay
ment to that amount into the sinking fund, and
Ewing denying the correctness OF that con-
struction.
Mr.. Chittenden-I have prepared four ques-
tons in the interest Of those whom l repre-
sent, to which 1 should like to have your an
swer.
/. With silver dollars and silver certificates
full legal tender for all debts, including GUS
toms and public debt, is not gold practically
demonetized, and how will you renew your
supplies or prevent its exclusive use as mer-
chandise in foreign commerce?
q Is there no danger that the national banks,
in taking care Of themselves, will have green
backs enough to exhaust your gold reserves
when the day for resumption comes?
g. Is it probable that before you have coined
100, 900, 600 of the new silver dollars, with
greater activity in foreign trade, they will be
exported at their bullion value to settle trade
balances, and with what effect upon the price
Of silver bullion?
f. Does not your success in resumng coin
payments with our so-called double standard
depend absolutely upon an advance in the price
of silver bullion in London to about 50 pence
sterling per ounce?
have not spoken with any member of the
committee in framing these questions. They
were framed at my own table, influenced only
by my correspondence and by questions asked
of me by those whom represent
Secretary Sherman would a great deal
rather, in this conference, give the committee
facts, and let the committee draw its own in
ferences, than attempt to give my own opinion.
But have no objections to answering any of
those questions. think that certain amount
of silver dollars issued will not have the effect
which Mr.. Chittenden thinks. believe we
can maintain at par in gold certain amount of
silver dollars. Precisely what amount should
not like to say because that is question Of
opinion but have an idea that VIC can main
tain at par in gold no less than $50, 900, 000
perhaps more-tay from $50, 100000 to $780,.
900, 600. But, whenever those silver dollars
became 30 abundant and 80 burdensome that
people would not have them and would not
circulate, then, undoubtedly, they would grad
uslly sink to the value of the bullion in them.
That is my opinion, but do not think it wise
for either this committee or myself to discuss
this question much, because the Silver bill is a
law, and, whatever we may think of its effect,
the public mind will not be satisfied until that
law il fairly tried. The effect Of the
Silver bill is not going to be very rapid, nor
will the fall in silver be anything like 30
rapid as is probably feared, and long before
the silver dollar can sink to the value of silver
bullion Congress will undoubtedly correct
the law, il it were to have that effect. Ii, on
the other hand, it should have the effect which
is anticipated, Of raising the price of silver up
to the standard Of gold, then Mr.. Chittenden
need not be afraid. Therefore say / don't
think that ought to give my opinion further
on that subject have not changed my mind
about the Silver bill, although the newspapers
| sometimes say l have. think that, as mat
ter Of policy, the Silver bill, which makes IL
yer available to pay bonds issued by the United
States, either before or after the Funding Oh
Resumption acts, is not good policy. have
stated that over and over again publicly, and
/ do not deny it; but the Silver bill is the law.
We are not infallible. 1t cannot operate quick
ly in that way, and therefore we had bettes
give it the full benefit Of An expei iment in the
certainty that, If Congress finds that 1t has the
effect which is now anticipated, Congress can
at the moment stop the issue OF silver dollars.
think that is as far as 1 ought to answer
these questions.
Mr.. Unittenden-It is not my object to en-
barrass the Secretary in any way in these
questions.
The Chairman-The Secretary is of the
opinion that " sufficient to the day is the evil
thereof" That we will take care Of the pres
emit and let the future take care of itself.
Secretary Sherman-If you allow me. 1 can
now, in connection with your question in re-
gard to my opinion to the praclicabity of
resumption, and especially in regard to an in
terview published In the new spapers between
Mr.. Ewing and bankers in New York, give you
my opinion. have read that interview with
great deal Of attention, because know many