The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1878-04-11

Of the Osmanlis is now falling to pieces,
and the face OF Southern Europe has been
changed. Fuads political testament read
like a prophecy fulfilled.
ABOUT RESUMPTION.
Secretary sherman BeGaee she Cen.
EressSonal C0moissee.
We make the following extract from the
report Of the interview between Secretary
Sherman and the House Committee on Bank
ing and Currency, as reported in the New
York Heold OF the 9Th:
Mr.. Ewing-Aiter resumption the green
back must remain at par in gold as long
as the Treasury maintains resumption.
Secretary Certainly, and while
they are at par in gold they will not be
presented to any considerable extent.
Mr.. Ewing-Of course, if there was an
established difference of one per cent or
half OF one per cent. between gold and
greenbacks the Treasury would be broken
pretty quick.
Secretary Sherman-Yes, sir, or a quar-
SSA Va oitC RSA SChe-- hhSiC ID Iio uouot doOut
that.
Mr. Ewing after resumption,
greenbacks must necessarily be at par with
gold so long as the Secretary Is able to
maintain resumption. Now, am surprising
a case Of drain Of gold from the action Of
foreign creditors or from any other cause,
and want to know what means yon would
resort to to check il.
Secretary Sherman-I do not think that
it would he necessary to resort to any
means but If it were necessary to devise
some means l would resort to such as have
been adopted in other countries tenn
porary suspension Of specie payment That
is question for Congress. The British
Bank act which is SO often quoted as the
standard, makes no provision for suspen-
sion. There is no legal suspension Of pay
ment in England, nor does our law make
any provision for it. If the Government
should meet such an adverse state of cir
cumstances as TO make suspension absolute
" necessary the Government wonld neces-
sarily have to take the responsibility Of it,
leaving Congress TO determine whether the
circumstances justified it. That has always
been so.
Mr.. Phillips-Then do YOU think that
the Secretary Of the Treasury has power to
suspend specie payment.
Secretary Sherman-No sir; but If de-
mands were made upon the Treasury which
the Secretary could not pay unless he was
to paw them out Of his own pocket he
would have to stop paying. That is all
that there is about it.
Mr.. Ewing-When short of the point OF
your actual inability to go farther would
you feel at liberty to stop?
Secretary Sherman THAT cannot state
That will not occur in my time if you give
me such q reserve as mention, and it will
not occur at all in your time or in my time
| in my Judgment But We cannot anticipate
what the future will bring forth. We dc
not know but that We may be involved in
war which would compel . suspension Of
| payment and We do not know what might
be the
EFFECT OF WAR IN EUROPE.
Mr.. Phillips-I was going to ask you on
that very point Would not a general wal
in Europe result in raising the price Of
gold?
Secretary Sherman Wise men differ
very much upon that. think that gen.
eral war in Europe would give such de.
mand for our agricultural products and fol
everything that we produce and sell that il
would probably inspire confidence and there
would be less danger.
Mr.. Phillips-Might it not raise the price
of gold as compared with currency?
| The Chairman-Or might it not have
the effect of sending our bonds here?
Secretary Sherman-We are not bound to
pay for our bonds unless they are due.
Mr.. Ewing-But banks and others that
hold gold would be tempted to buy bonds
and the gold would go out.
Secretary Sherman do not think 70
l have shown you now in these figures that
| with such q reserve as / have mentioned
| the government of the United States is
stronger for resumption than the bank oil
England?
Mr.. Ewing-Is now?
Secretary Sherman-NO; say it will be
| il YOU give us the reserve i mention. Ii
will then be stronger than the bank Of Eng
land.
Mr.. Ewing-You said on Monday that it
is now stronger.
Secretary sherman-I do not think that
il is now, but / say that before the first OF
January, with an additional reserve Of
$4,000 600, and if you will provide
enough means to carry on the current ex-
penses of the Government, with or without
regard to the sinking fund, We will be
stronger than the Bank of England. If
you make good the sinking fund we would
be better off; but if you do not make it
good it does not affect the question Of re-
sumption. With that $5O,0OO,OOO addi-
tional, making our reserve $4,000, 600
| or $4,000, OoO), with the fact that our
notes are of universal credit, and are dis
tributed throughout this great extent of
country and among 100000 Of people,
with the fact that $40, OOO, 900 Of our notes
are now in the Treasury not likely to be
called upon, and with the fact that the
banks have to take care Of S1O,OOO,OoO
more, which they cannot run in upon us
| without subiecting themselves to the viola
ton Of the law of their creation, with their
notes absolutely secured by United States
notes, if we cannot maintain specie pay
ment then it is impossible TO maintain spe-
Gle payment on a paper circulation.
The Chairman-That is on the theory all
the time that ptps: Al gold are equiva-
lent.
Secretary Sherman-Certainly. Specie
payment means the equivalency OF gold and
paper 1t is on the theory that the one per
cent. difference between gold and silver will
disappear before the first of January that l
propose to commence specie payments; but
suppose that am mistaken; suppose that
your fears are we'll grounded, and that am
oversanguine, as some people say am, still
Congress will meet in December, and then
the question will be 80 apparent to every
man that, if the Resumption act cannot be
carried out, l shall come to Congress and
saw that have been unable to accumulate
this reservs, or that an adverse state of cir
cumstances has arisen and that / am una
BILE to do what the Resumption act requires
of me-
Mr. Ewing-But in the meantime the
country is on the rack and torture OF prep
aration for impractical resumption.
THE NATIONAL CAPITAL.