The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-04-10

but If 1t were necessary to devise some means
l would resort to such as have been adopted
IN other countries-the temporary suspension
of specie payment. That is a question for
MI. Phillips-Then do you think the secre-
tary OF the treasury has power TO suspend
Secretary Sherman-No sir, but if demands
were made upon the treasury, which the Sec
tary could not pay. unless he was TO pay them
out of his own pocket, he would have 10 stop
paying; that IS all that there is about1t.
Mr.. Philnps-Wouid not a general war In
Europe result in raising the price of gold?
Secretary Sherman-Wise men d1ner very
much upon that think that general war in
Europe would give such a demand for our ag-
ricuIt1raI products aud for everything that we
produce and sell that IL would probably in
spire confidence and there would be less
Mr. Phfllips-Nlght it not raise the price of
gold as conn ared with currency
The Chairman-Or might IL not have the ef-
feet of senoing our bonds here?
Secretary Sherman-We are not bound 10
pay for our bonds unless they are due. Specie
payment meant est ulvalency of gold and paper.
1t is on the theory that one per cent. differ
ence between gold and paper VIII disappear
before the lst of January, or else would no 2
commence specie payment. But suppose That
I am mistaken; suppose that your fears are
well grounded and that / am ovei-san-
gnine, J as some Co, people SAY ,n tnat in
December, and then the question viii
be so apparent to every man That II the re-
sumption act can not be carried out, VIII
come to congress and say that have not been
able to accumulate this reserve, or that an adj
verse state of circumstances has arisen, and
that L am not able 10 do what the resumption
act requires me TO DO.
The next question considered was that Of
national banks.
Secretary Sherman said IL is not possible
with the amount OF legal tender notes which
they hold admitted to be about S10,0OOUO0, that
they could take the whole of them and present
them to the treasury. Such "a thing Is not pos
sible, because the banks could not be brought
into ANYTHING like cooperation OF that kind,
M n
demand on the treasury, and then besides the
treasury has ample power TO make the banks
redeem their notes.
Mr. EVing-In legal tender notes?
Secretary Sherman-Yes, in legal tender
notes.
Secretary Sherman-Yes, that would throw
gold back on the treasury. Some of the pa
pers thought that in my remarks the other
day 1 Threatened the banks. did not threat
en- them, but there is no doubt about il that
the treasury would be stronger than the banks
/ in such contest. There is no danger that
the national banks are going TO combine 10
present their legal tender notes to the treas
Z Mr.. BelI-Suppose greenbacks were TO obtain
an equality I'm value with gold, how would the
repeal of the res umption act then Affect re-
sumption?
See efary Sherman-The repeal of the re-
sumption act would prevent me from main
I tanning resumption by the sale OF bonds. That
} would be the first thing. Then the resumption
/ act, the only provision of law which requires
me to redeem United states notes in coin.
! Mr.. Ewing on are AT liberty 20 90 so. IA
the resumption act were repealed you might
maintain the equIvalency OF paper and coin.
/ Secretary Sherman-No, it is perfectly clear
! hat have no right TO exchange one form OF
/ money for another
Mr. Ewing-But you could pay out gold and
silver?
/ Secretary Sherman-Nes.
Mr.. Ewing-And you could thus maintain
I the equality Of coin and paper upon your the
DRY, which is that as soon as paper and coin
get equal nothing will be likely 10 occur Il
disturb the equlNalencyY
secretary Sherman-TheTe viii be fiuctua-
ton, more or less, and we must be prepared tC
meet those fluctuations, so that IL the green
{ backs become superintendent we can get gold
for them. or it, on the other hand, gold be
comes a drug, as become 1t viii, be deposited
Z for greenbacks.
Nj. Ewing--But if greenbaclls become super
abundant gnd are presented 10 the treasury io
redemption, you will have to pay them ou
I agains
Secretary Shernan-Ges, sir; as soon "a
equivalency Is restored.
Mr.. Ewing-Then You viii hold what green
backs come in until there is-an equivalency-
Secretary Sherman-Nes, that is the effee
of it.
The conference lasted over three hours.