The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1878-03-22
TERMS $500 PER ANNUM, IN ADVANCE

secretary Sh6rmau-4e5; many crcum-
stances favor this The demand for bonds eI.
no doubt we can sell Al per cents, and I think
within a month we can sell all we want to OF
4 per cent bonds to carry out the RESUMPTION
iaw, n LOT l would not accumulate more than
So,oO.199 q month, and that largely 10 silver
and gold bullion. There Is no special necessity
to force the bond market in order to maintain
resumption. We now have from 81. 600. 600 TO
S9O 600 600 on hand, aud every one can meas-
ure how much more will be necessary to main
tain resumption. II the sale OF bonds was
ever so free, would not accumulate more than
S5,0000 900 q month of both metals, and all
sales beyond that should be applied for refund.
ing the per. cent. bonds.
Senator Allison-Do you think that you can
by your process Of adding to your reserves
50 900 900 per month-that Is to say, accumu-
late from other countries. or simply draw into
the treasury
THE AcCUMULATroNs
already existing in our own country?
Secretary Sherman-I am glad you men,
toned that point. although since the 1st of Jan.
uary 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 the banks. The banks have already
accumulated more than 81, ,000,0 900 Of gold since
January 10 the city of New York, the amount
at the beginning Of January, 1878, was S21,-
1884, 100. On March 16 it reached S34551 O0O
10 New York alone the accumula tioJis S5,000,-
600 mouth, but in Boston and Phlladeiphia it
is also going on.
Senator Ferry-What, in your judgment, is
the accumulation in both the banks and treas
ury per month, 10 amount?
Secretary Shermaa-I should thiuk between
81. 900 aud $40 600. 900 per month. As to
the general effect of the silver bill, would not
like to give positive opinion. don't think,
taking 1t altogether, that 1t Is an obstacl. in
the way Of resumption. II has operated in
some respects adversely, aud in some respects
favorab,y, but on the whole de not think it
should discourage US from resumption or from
carrying out our general policy.
Senator Jones-chen, in It's effects upon the
return of the vast amount of bonds you refer to
would there not be an element of strength
est on these bonds returned would not be Q
constant drain upon the couotry?
Secretary Shermsn-Undoubtedly.
Senator Jones-Would the fact that they
would come back enable US to maintain re-
sumption much easier?
Secretary Sherman-U ndoubtedly. The fact
that we have paid S414, ,000,0 900 of the debt in
foreign countries Is favorable. There is anoth-
or point in this connection. 1t seems to me
that it is not necessary to determine this cues.
ton now. Sufficient time has not elapsed to
enable us to determine the effect of the silver
bill, and you had
BETTER LET TIMES RUN
and see its effect 1t May be its effect will be
such that all will favor resumotiOu and that
resumption Will Come without effort.
TIE passage OF the bill can have no effect until
January next, and it may be that before that
time all will agree that it ought or ought not to
be repealed As you have this measure iu the
Senate, you can control it by q majority vote of
the Senate at any time. Why not let IL star
here?
Senator Voorhees-Did 1 understand you to
say that you would undertake to maiutain re-
sum ption with S90OO00O0 coin reserve?
Secretary Sherman-No sir. would UNDER
take to resume upon the power afforded by
the present law by going on and doing what
did last sunni mer.
Senator Voorhees-How much surplus did
you say you had on hand?
Secretary Sherman-I have now S71, ,000, 900.
Senator Voorhees-Then you say that you
would be williog to undertake RESUMPTION,
under the existing laws, BY the lst Of next
January? Now, with the aid of the silver bill
and the coinage, what amount OF coin would
you expect to have on hand with which to un-
dertake resumption at that time?
Secretary Sherman-I would accumulate
about S5,0oO.0O0 per month of both metals
from the first of April to the first of January,
which would be S45, ,000,0 900, and If the market
is favorable think would try to make good
the loss that have suffered by not accumulat-
ing in January, February and March Of the
present year. tbiak I could in this way
accumulate So. 900 900 or $50, ,000,0c0.
Senator Voorhees-That would give you
$3.50, 900, 900.
Secretary Shsrman-No. Not so much. nor
do think it is necessary to have so much.
Senator J0nes-And does that look to elimi.
mating the legal tender function on the 1st Of
January next?
Sherman-No. think not, sir. am 10 fa-
vor OF maintaining the legal tender currency.
but that is not in the controversy.
Senator Kernan-You thought that you could
practically redeem all that would be present.
ed?
Secretary Shermau-I have no doubt Of my
power to reissue up to $500 0O0 600 of legal ten
ders.
Senator Ferry-Then on the question Of re-
sumption your view is, that with S90000,000 on
hand and the accumulation of $50, 900 900 more
or even $40000000, which would be S130 000,-
600, you would be willing to commence the re-
clemption Of the present volume iof currency,
both national and bank?
Secretary Sherman-oh, yes. the banks must
look out for themselves.
Senator Morrill, will now ask you this
question; How can the policy OF resumption
be aided by Congress?
Secretary Sherman-I am very willing to an
swer that, although think 1t Is legislative
question. think that you can aid resum ption
very much. Ii you will allow me to receive
United States notes in payment of bonds, as
the senate has already expressed willingness
to do.and II the House would concur with them
If could Sell per cent. bonds for currency
and then reissue the currency in the purchase
OF per cent. bonds, II would be an aid TO re-
sumption.
Senator Bayard-What would you do with
the proceeds of the sails of these bonds?
Secretary Sherman-I would use them in
the purchase Of outstanding bonds. All
would have to do would be to pay the differ
ence between the currency aud gold, but tnat
would only be paying one per cent premium.
have right to Gail the bonds, and 1 could
use the currency in their payment by giving
$101 for the bond In currency, the diffsre nee
harm nd tha onk
time.
Senator Bsyard-You can sell your per
cent bonds at par in currency. aud you can
then use the currency to redeem the higher
rate bonds.
Senator Jones-How would that aid resump-
tion?
Secretary Sherman-By repeating the dis
crimination that Is now made against the
legal tender note in payment OF bonds the
bonds issued would be q coin bond.
A large number of questions were asked by
the members OF the com Uittee, aud the Secre-
tary, in the course of his answer, said one
thing he would recommend, namely: He
would on the 1st of October next receive
United States notes IN pay ment for duties, and
yet provide for the interest ON bonds In coin.
In other words, he would assume on the 1st OF
October next that our notes we're as good a.
gold and silver and would receive them as such.
If you gentlemen will feel your way clear to
allow my receiving the U oited States notes In
payment of bonds, and will make 1t clear that
l won't be compelled to redeem all the Uoited
States notes that come in after the 1st of
January next, and if you think, under the
circumstances, would be strong enough to
receive these notes on the 1st Of October.
should bs willing to guarantee the resumption.
think for us to go backwards over all this
long, weary agony, and struggle toward re-
sumption, would be q sign of national weak
ness, and do the nation great harm; do you
harm, and bring injury upon US all.
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