The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1878-03-28
Secretary Sherman on Resumption and
Reconciliation.

. In answer to the question by the Chalr-
under the present laws|' Secretary Sher-
man said: ''Now, IN general answer to your
question, do express my opinion, ofhcially
and personally, that for the reasons have
given, YOU can resume on the LIST of January
next, under the basis of the existing law
The Committee: What effect has the Silver
bill had, or is likely to have, on resumption!
Secretary Sherman: l do not want to tread
on delicate ground. In answering that ques
ton, Mr.. Chairman, shall have TO CONFESS
that I have been mistaken myself as to the
Silver bill. / have watched its operation
very closely. think the Silver bin has had
some adverse effects and it has had some Ia
vOrable effects on the que ton OF resu1np-
ton, Perhaps the better way for me TO pro
coed would be 20 state its adverse enects
first. Since the agitation OF the silver queS,
ton, I have not been able largely to sell
bonds although have made every effort to
do so. On the other hand It will have its IA
vorable effects. In the first place the silver blli
satisfied a strong public demand Tor DlInetal
money! and that, no doubt, largely sectional
No doubt there is a difference of opinion be-
tween the South and East on this subject, but
the desire for reconciliation of silver was
almost universal. Ina Government like ours
it is always good TO obey the popular VIII
that has been dor e, 1 think, by the passage OF
the Silver bill. Resumption can be MAINTAIN
ed more easy upon double standard than
upon single standard. The bulky character /
of silver would prevent payment Ia 1t, white
gold, being more portable, would be more /
freely demanded, and think resumption can /
be maintained with a less amount OF silver
than of gold value.
Senator Bayard: You are speaking of re-
sumption upon the basis of silver or silver
and gold?
Secretary sherman: Yes, sir; I think it can |
be maintained better upon bimetalhc or l
alternative standard than upon a single one, /
and with less accumulation of gold. In this |
way RECOMMENDATION of silver would rather ald /
resumption. The bonds that have been re- |
turned from Europe have been readily alb /
sorbed-remarkably so. The recent returns /
in New York show the amount OF bonds alb /
TG Of aal mil
and a quarter day. This shows the conf /
dence of the people in our securities, and .
their rapid absorption viii tend to check the /
Senator Voorhees,: That shows, Mr.. Secre- /
tary, that this cry OF alarm in New York was 4
unfounded then. This capital seeks our /
bonds when this BIZ metallic basis Is declared /
Secretary Sherman: Yes, many circufI1-
stances favor this The demand for bonds /
extends to the West and to the banks have
no doubt we can sell ~ per cent, ana
think within a month we can sell all we want
for per cent. bonds to carry out the re-
sumption law, for | would not accumulate
more than five millions a month, and that
largely in gold and silver bullion. There Is
no special necessity to force bonds on the
market, in order to maintain in, ain resumption We
now have 81 600, 900 to s9l 100000 on hand, and
every one can measure how much more Will
be necessary to maintain resumption. II the }
sale of bonds was ever free, l would /
not accumulate more than S5,000OG0 month
of both metals, and all sales beyond that
should be applied for refunding per cent.
bonds.
Senator Ferry: Then, on the question of re-
sumption your view is, that with $4,000, eco on
hand and an accumulation of 600 more
or even $40 600 900 (Which would be $50 coo 900
you would be willingtO commence resumption
Ofpresent volume OF currency, both national
and bank?
Secretary sherman: O, yes; the banks must
look out tor themselves.
senator Morrill,: will now ask you this /
question: How can the policy OF resumption /
be aided by Congress?
I NM nf. insg 4
answer that, although think it is legisla- /
tive question. think that you can aid re-
sumption very much if you will allow me to |
receive United states notes in payment OF 4
bonds, as the Senate has already expressed "A /
willingness to do; and If the House would /
concur with them, if l could sell per cent.
bonds for currency in the purchase of per [
cent bonds, it would be an aid to resumption.
Senator Bayard: What would you do with
the proceeds of the sale of these bonds?
Secretary Sherman. I would use them in
the purchase of outstanding bonds. All j |
would have to do would be TO pay the differ
ence between greenbacks and gold, but that
would only be paying per cent premium. /
have right to call bonds, and could issue
currency in their payment by giving so for
the bond in currency, the difference between
currency and gold at the present time.
Senator Bayard: Y GU can sell your four per
cent. bonds at par in currency and you can
then use currency to redeem higher rate
bonds.
senator Jones: How would that aid re-
sumption?
Secretary Sherman; By repeating the dis
elimination that is now made against legal
tender notes in payment of bonds, the bond
issued would be a coin bond.
A lar4e number of questions were asked by
several members of the committee, and the
Secretary in the course OF his answers said
one thing he would recommend, namely: he
would, on the LIST of October next, receive
United States notes in payment for duties and
yet provide for the interest of the bonds in
coin; in other words, he would assume ON
the lst Of October next that our notes
nod erplAa and all anhN KrrNrr1I I
receive them as such. You, gentlemen, Will |
feel your way clear to allow my receiving the
United States notes in payment of bonds, and
will make it clear that won't be compelled
to redeem all United States notes that come
after the lst of january next, and if you
think, under the circumstances, l would be
strong enough to to receive these notes ON ,
the LIST of October, / should be willing TO
the resumption. think for us to
90 backward over all OF this long, weary I
agony and struggle towards resumption, ,
would be q sign of national weakness, and
10 the Nation great harm, do our credit
harm, and bring injury upon MS all.
The Chairman: What effect would the re-
peal of the resumption act have upon the re-
atiOns of currency, legal tenders, and on
coin, gold and silver? Would not repeal ,
IF the resumption act cause fall of paper /
below gold and silver?
Secretary sherman: have no doubt of ;
hat. l think a repeal of the resumption act !
y )uld at once cause a widening between I
:Oin and paper money, depending entirely 7
lpOn the confidence the people at large '
NOul0 o
don't want to enter upon this 9
lelicate ground. /
Among other questions asked was the fol-
mao. 900 600 gold reserve You would be willing Q
% hold $500, 900 600 as part of the currency and
meet resumption on that basis. Now, desire
% ask it, with the contraction as it is going
IN, it would be any obstacle to resumption,
wen If the Outstanding circulation should be I
500, 100000 on the lst of January next? 5
Secretary Sherman: think the 100000 +
otld no mr. Increased
totes.
senator Ferry: without any direction of
urther contraction than under the present G
assumption act? q
Secretary Sherman: The present resump- Il
ion act will be sufficient. would not by my I
elf provide for any direct contraction of the 4
currency except what Is done under the act
The Chairman: Don't you believe there will Il
,e an expansion come upon us naturally, or 3
he ist OF January win there not be more P
money in actual circulation after that pc '
iod?
Secretary sherman: I think and hope so.
senator Ferry: Would not that produce 2
ealthier condition. 10 tatff- y
Secretary Sherman: Yes, sir. :
Senator Bayard: What would be the effect =
D YOUR opinion of declaration that $500, 000,-
% of Treasury notes might be issued as u
minimum and as a maximum to be support
d by retention by law of 500 ,00o,O00 of gold q
secretary sherman: That would be bene- =
cial because think the fear about that p
300 Go coo would be overcome
senator herman: And your opinion is that
uthority to reissue legal tender notes should IL
e expressly given by Law?
Secretary sherman: think that authority r
o reissue, unquestiOned and undoubted, +
Tould take away the fears of al classes OF c
those in favor Of imitation, who "
o not want the greenback destroyed; then g
d Eastern states where they think We ought
0 retire greenbacks, and issue bank notes in
tead and believe that we are bound, under !
be existing law, to pay the whole OF S300, co.,
) , and that We are not prepared to do. .
senator Allison: In other words, you think u
re can not come TO and maintain specie pay I
lents without the power to reissue? Is
Gaorerarv Sherman. / do not think can u