New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-04-23
Did Congress:
FALSE REPORTS BY INFLATIONISTs.
ABOUT SECRETARY sHEE-
MANS SYNDICATE CONTRACT coRRECrED-nE Is
PROUD OF HIS SUCCESS.

lBY TELEGRAPH TO THE TRiBUNEl
WASHINGTON, April GA movement seems 10
have been begun all along the line by the iniaon-
lists to defeat Secretary Sherman's efforts to place
the Treasury Department in a position to establish
and maintain specie resumption. All sorts OF reports
have been sent out from Washington for the purpose
of discredting the contract which the Secretary OF
the Treasury lately made with the Syndicate. IL
has been said that the terms of this contract have
been carefully concealed from the public, or mis-
represented; that the Syndicate has agreed really
to take only $40 600 600 of the 4l2 per cent bonds
and by some IT is reported that the Secretary is
obliged to take back such of these bonds as the
Syndicate cannot sell 1t was also reported that
the Banking and Currency Committee of the House
has summoned the Secretary of the Treasury to APP
pear before it and explain the contract and that he
has not done so; all of which has no foundation
whatever in fact
The contract which Secretary Sherman made with
the Syndicate on the 18th of the present month was
ms public as any act of the kind ever performed by
the Government. 1t was signed in the presence OF
Attorney-G General Devens Comptroller of the Cur
rency Knox and General Hillhouse. and its terms
were Immediately published in all the newspapers.
The text of the contract was not given TO the press
but it was not withheld because of any desire OF
cOncealment. but because the bankers cont
posing the Syndicate preferred that the details
of the distribution of the bonds among
them should not be announced. So far
from attempting to deceive or mislead the
House Committee on Banking and Currency, the
Secretary, when called before that committee, told
its members plainly that he intended 90 rcplensh
his stock of gold by selling bonds. When General
Ewing, by his questions, brought out the fact that
il was at that time impossible to sell per cent
". ;n1 hat Ia. Cl,nttl1
sell 4los or 81. The Committee on Banking and
Currency has never asked the Secretary to appear
before it since this contract was made. If it desires
his attendance he will be only too glad to answer
its summons and to reply to all questions. The com
mttee has sent letter TO the Secretary requesting
him to furnish a copy of the contract with the Syn
dicate and this he did last Friday. He had two
DAYS before responded TO a like request from Mr..
Glover.
The Committee on Banking and Currency also re-
questcd the Secretary to report to 1t in regard to the
amount of accrued interest allowed the Syndicate
under its contract, apparently supposing that this
was to be secured by the Syndicate as part Of its
profits. The Secretary has replied that no such
allowance has been made. The bonds subscribed
for by the Syndicate were dated March I, and there
was, therefore, accrued interest on them for
forty-One days. This was added 10 the
price at which the bonds were sold, and
was paid in gold. Adding the accrued
interest, and reckoning gold at q Of per cent
premium, the rate of which it was quoted April
H. the price obtained by the Secretary for his bonds
is found to he a trile above that at which they
were sold in the market on the same day. The
terms Of the contract with the Syndicate are
identical with those Of the one under which 5000
600 900 Of these 4l2 per cent bonds were sold. II
reunirpd the purchasers TO take $40 600. 900 Oh
the day the contract was made. This they did, and
they have already paid $7,000000 on account of
this first subscription. The Syndicate is also to
take i'll addition $4,000, 900 month. and If IT fails
to do this, the Secretary of the Treasury has the
right TO cancel the contract, in which case the
Syndicate would lose its commissions the amounts
actually purchased and paid for. This provision
which the Government always inserts III contracts
of this kind, is the one which the infatOnists SAY
makes the arrangement of no effect. Its object is
to protect the Government in of failure by the
Syndicate to execute its part of the contract. The
Secretary of the Treasury has nothing to conceal in
connection with this matter On the other hand
he feels proud of his success and believes that the
better his action is understood the more it will be
approved by the public.