The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-03-28
A doino What + did Inst summer.

ulu you say you nhu ON manu-
Secretary Sherman--I have now Sl,-
100000.
Senator Voorhees-Then, you say that
you are willing to undertake resumption
under the existing laws by the lst of
next January. Now, with the aid of the
Silver bill and coinage, what amount Of
coin would you expect to have on hand
with which to undertake resumption at
that timer
Secretary Sherman-l would acCumu'
late $5000,000 per month of both metals
from the lst Of April to the lst Of Janu.
ary, which would be $45,O00,00O; and il
the market is favorable, l think | would
try to make good the loss that | suffered
by not accumulating in January, Nebru-
ary and March of the present year. |
think / could in this way accumulate
fifty or sixty millions.
Senator Voorhees-That would give
you $l50,000,000P
Secretary Sherman-No, not so much ;
nor do / think it necessary to have 30
much.
Senator Jones-And does that look to
eliminating the legal-tender function on
the lst Of January next2
Secretary Sherman-No, think not,
sir. / an in favor of maintaining the
legal.tender currency, but that is in con-
troversy.
Senator Kernan-You thought that
you could practically redeem all that
would be presented2
Secretary Sherman have no doubt
of my power to reissue up to S3OO O,OOO,-
900 legal tenders.
Senator Jones-I have an idea that
would make good deal of difference.
Senator Voorhees-Have you spoken
of the capacity of the present coinage ?
Secretary Sherman-No, sir
Senator Ferry-Then, on the question
of resumption, your view is, that with
O,0O0000 on hand and an accumulation
of S60,000,000 more, or even $40 1000,
it would be $l3O00O00O, you would be
willing to commence resumption of the
present volume of currency, both ma
tional and bank?
Secretary Sherman-O, yes; the banks
must look out for themselves.
Senator Morrill, will now ask you
this question: How can the policy of re-
sumption be aided by Congress-
Secretary Sherman-I am very willing
to answer that, although think it is
legislative question. think that you
can aid resumption very much if you will
allow me to receive United States notes
in payment of bonds, as the Senate has
already expressed willingness to do,
and if the House would concur with
them, if l could sell four per cent. bonds
for currency in the purchase of six per
cent. bonds, it would be an aid to re-
sumption.
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 | would have to do would be to pay
the difference between greenbacks and
gold, but that would only be paying one
per cent. premium. | have right to
call bonds, and | could use currency in
their payment, by giving SlOl for the
bond in CurrenCy-the difference be-
tween currency and gold at the present
time.
Senator Bayard-You can sell your
four per cent. bonds at par in currency,
and you can then use the currency to re-
deem the higher rate bonds.
Senator Jones-How would that aid
resumption?
Secretary Sherman-By repeating the
discrimination that is now made against
the legal-tender note in the payment of
bonds. The bond issued would be coin
bond.
A large number of questions were
asked by several members of the Com
mittee, and the secretary, in the course
of his answers, said: One thing he
would recommend, namely, he would, on
the lst of October next, receive United
States notes in payment for duties, and
yet provide for the interest on bonds in
coin-in other words, he would assume
on the lst of October next that our notes
were as good as gold or silver, and would
receive them as such. You, gentlemen,
will feel your way clear to allow my re-
Ceiving the United States notes in pay
ment of bonds, and will make it clear
that | won't be compelled to redeem all
United States notes that come in after
the lst Of January next; and If you
think. under the circumstances, l would
be strong enough to receive these notes
on the 1st of October, should be willing
to guarantee the resumption. l think
for us to go backward over all of this
long, weary agony and struggle toward
resumption would be sign of national
weakness, and do the nation great harm
do our credit harm. and bring injury
upon us all.
personally that for the reasons l have
given, we can resume on Jan. lst, next,
under the basis of the existing law.
The Chairmau-What effect has the
silver bill had or is it likely to have, on
resumption?
Secretary Sherman-I do not want to
tread on delicate ground. In answering
that question, Mr.. Chairman, l will have
to confess | have been mistaken myself
as to the Silver Bill. have watched its
operation very close. l think it has had
some adverse effects and some favorable
effects on tie question of resumption.
Perhaps the best way for me to proceed
would be to state the adverse effects
first. 1t has undoubtedly stopped re-
funding operations. Since the agitation
of the Silver question have not been
able largely to sell bonds, although l
have made every effort to do 80.
Senator Jones-At what date was the
last bond sold2
Secretary sherman-We are selling
bonds all the time.
Senator Jones-I mean the refunding
of bonds into four per cents.
Secretary Sherman-October 10Th was
the time when the last popular loan was
paid for, and we had then call ready to
issue of $lO.0OOOOO, and my associates,
as they had a right to do, withdrew the
call. The sales from the last of Septem-
ber, 1876, to Oct. 18th, were about $275-
100000. We sold $2O00O000O four.and-
half per cent, and then we sold $75,000-
600 four and a half per cent bonds.
Senator Allison--About year and
eleven months?
Secretarv vSherman--SinCe October last