The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-21

coin which you speak OF as being hand be counted
as IN any way assisting resumptionS
secretary sHERMAs.i lhink So because ~ - 81
changed Tor United States notes or fractional cur
rcncy, and can be paid out TOR current debts
Senator JoSEs--I thought you could only exchange
Secretary sHgRMAx-Probably there is enough silver
com on hand to redeem all tho balance OF The rac-
The CHAIgNAx--That is, the Secretary thinks some
fractional currency has been lostf
UNITED STATES BONDS AND NOTES.
Secretary SHERMAN-Now, IN regard TO another
point pertinent to your question. We have IN the
process OF preparation for resumption reduced the
volume OF United States bonds and notes The precise
bgnres are familiar to you. ihe amount was
$3S2 900 al the time OF the passage OF Rcsump
non acl, and The amount now .o24 Again.
the amount OF outstanding bank notes has been re-
duced. On December 81. 1875. the amount was
$346 40 1855; December 81. 1871 1921 505, and
standing was 1921 0s9, 9gl But tho amo cunt OF bank
notes OF banks IN existence in process OF iiquida
these TWO sums. being the notes OF banks In process
OF liquidation. Although the notes in crcula-
tion YET an equal amount Of greenbacks are in tho
treasury as special deposit 10 redeem thcn.
Senator kERSAS-They make partof the S34S 00o, 600
legal tender notes?
Secretary SHERMAx-Ycs, as many Of tho legal tom
der notes held in tho Treasury there bank
notes In process Uf redemption.
Senator FERRY-Then really there should BIO but
$209, 600 900 Of national bank notes outstanding?
Secretary SHERnAx-Ii you count the whole green
backs as outstanding there would be $299. 000 900
that United States bank notes have boon In circula-
ton since 1852 and bsnK notes since 1864, that
to some extent the amount outstanding-how much
don't know; you can Judge as well as I.
statement was here produced showing bv months
tho issue OF silver coin aud the reduction of
currency under the act OF April 10, 1876, April
20, 1876 to February 49, 1875 the amount nal
currency redeemed being $24 3S, go, and the total
silver payne $3S, 479,3DS. The total amount oil
fractional notes outstanding on tho 10Th inst. was
x. n Il
standing fractional currency estimated upon the basis
OF the redemption or the past Tour months is 00O
tenders do you estimate being in circulation now,
outside OF what you hold to redeem the notes oil
banks in process Of liqui dationf
Secretary SHxRMAN-I should think $500, 900, 0OO
Deductng those that have been lost destroyed
those held for the outstanding bank notes makes tho
aggregate OF bank notes and greenbacks about
$685. 100000 To repeat the general results
OF preparations Tor resumption we have already
practically aooiished the premiums gold. We
have reduced tho amount Of United States notes and
the amount OF national bank notes outstanding. We
have paid of practically the fractional currency and
now we have very remarkable circumstance In our
favor.
THE BALANCE OF TRADE
The balance OF trade Is III our favor TO The amount
OF $l60 000 900 yoar, bringing silvcr and gold and
bonds Jack TO In the last three years the balance
statement because l thought you might deem 1t i'm
portant have actual figures about the stale Of
trade. Tho table showing details will leave with
you.
THE ACCUMULATION OF GOLD.
number Of questions were asked, TO which Sccre-
tary Sherman replied We must obtain gold and
silver from England, but must do IL, Lincoln
said, s'unboknownst" TO them; u must come by the
natural currents Of trade To attempt to bring by
any artificial movement large Gums OF gold to tins
country woua be TO create alarm. All last summer
and autumn tho accumulation was from
five to eight millions Of dollars zach month.
Some OF that from own mines aud some
of II IRON abroad, but we accumulated II with
gu. any possible injury 70 anybody Now in general
officially and personally, tina: tor The reasons have
gwen we can resume on the lst OF January next
under the basis OF the existing law.
EFFkcT SILVER RESUMPTION.
Tho CHAikMAN--What effect has the silver oil had
or 10 likely 10 have on resumption?
Secretary SHERMAN-L do not want 10 tread on deli
cate ground in answering that question: Mr. Chairman
shall have to confess hat have been mistaken N.Y.
lis operation very closely. think the Sill
yer bill has had some adverse effects, and
It has some favorable effects the question Of
resumption. Perhaps The best way for to proceed
would be 70 state the adverse effects hrs 1t has
doubledy stopped refuadIng operations Since the
largely TO sell bonds, although have made every
Senator JoSEs-At what date was the last bond soldR
Secretary sHERMAN-Wo are selling bonds all the
senator JONES mean the refundina Of the bonds
secretary SnEaMAN-The 10th of October was The
time the last OF tue popular loan was paid for
and we had then call ready 70 issue OF 600,
the call Tne sales from the last Of September In
were ABOUT $ZI0OUO,UUU we SOlQ $zUU,UOO,OUO lOur
and half per cent aud then sold $75, 900 900 Jour
per cent bonds.
Senator ALLIsox-About year and eleven months
Secretary SHERMAX-Slnce October last have
sold 81 600 000 and perhaps now the sales have gone
up TO between 81 100000 aud $4,000 900 o tour per
cent bonds.
Now, mother adverse effect the Silver bill has had
Is to stop the Of coin. Since 1si of
Jan uary We have accumulated coin except for Coin
certificates, except the balance oil revenue
penditure. Iho revenues In COIN being more than
enough 10 Day the interest Of tho debt and coin a
billtes We accumulated some coin.
Another effect the Silver OIL has had is TO cause
the return Vi our bonds IRON Europe. Although the
movement VI our bonds In this direction has been
pretty steady Tor more than year, It is iatterly
largely increased how much am prepared TO say.
FAVORABLE KFFEcTs OF THE SILVER LAW.
On inc otner nand w esve the favorable effects
lie demand for bi-metsllic money, and that demand
no doubt largely sectional No doubt there IS a dit
tho East on this subject, but the desire Tor the
remonetization Of silver was almost universal In
The popular current and that has been done think
by the pas age OF the silver bill Resumption can Uc
ma,ntancd more easily upon double standard Than
upon single standard. Tho bulky character OF sill
yer would prevent payments in II, while gold, beng
more portable, would be more freely demanded. and
think resumption can 90 maintained with less
amount OF silver, tncn OF gold alone.
senator BAYARD-You are speaking OF resumption
upon the basis OF silver, or OF gold and silvcra
Secretary SUBMARINES, sir, think II can be main
tanned better upon bi-inetlic alternative standard
than upon single ono and with less accumulation of
SOiu III tHlb why DECENTRALIZATION oil SILVER WOulU
rat her aid resumption. fbe bonds that have been
turned from Europe have been readily absorbed Re-
markably So. Tho recent rcurns Ia Now YORK show
the amount oil bonds absorbed in this country Is at
least 81 2Jv, 900 day. lnis The dence Of
the people III our securities, ana their rapid absorp
ton Will tend 10 check the European scare
ScnIter WORTHLESS mat SHOWS Mr. Secretary that
this cry OF alarm III New York was uniounded, lncn
This capital seeks our bonds wnen this bimetaliic
basis is deciared?
DEMAND BONDS.
Secretary SHERMAN-Ycs. Many circumstances
favor TINS The demand Tor bonds extends 10 the
West anu to the banks. / have dou0, we can sell
four ana half per cent, and thinK within a mont
we can sell ali wo want Of four per bonds
to carry out the Resumption law. tor | would
not accumulate more than five millions a
month, aud that largely In gold anu silver bullion.
There is special necessity to force tho BOND market
In order 10 MAINTAIN resumption. We now have
Sill 600. hand. evary ona can