Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1878-01-19
sHERmAN.s smALL RoNps

small bonds at 81 per cent. without |
giving our opinion upon it at pres
ent. There has been so much I'M
derhand and unexplained collision
between Mr.. Sherman and his pet
syndicate that we require a much
more explicit definition of the
scheme before we can recognise it
as a sound one. AS it stands it
looks like an attempt to perpetu-
ate the National Bank system re-
posing upon bed of interest bear
ing bonds, the purchase of gold for
interest bearing bonds, and, in one
word, it savors of that legislation
which deems it the first and last
duty of government to get out as
many bonds as possible on which
the people are to pay interest. But
we suspend our Judgment, into
which as at present enters radi
ical distrust of Sherman as a dis
turbing element. We believe our
feeling to be largely shared through
out the nation, nor do we believe
that any system of finance will
meet the hearty support of the
people so long as the present Secre-
tary of the Treasury remains in
office:
Secretary Sherman was before the
Honse Committee on Ways and
Means to-day, giving his views on
the proposition to issue bonds of
small denomination as a popular
loan. He submitted a bill, prepared
by himself, to carry out the plan.
Many questions were asked by the
committee with view to a full I'M
Outstanding and the effect of such a
measure.
Secretary Sherman said it was
known that there had been a syn
dictate for the sale of the per cent.
bonds, but in Difference to what was
regarded as popular sentiment, and
also for convenience of negotiation,
it was deemed best to terminate the
contract, and to place these bonds
in the market upon a somewhat
UILiCICuG iiIStlIP ilsttilSly " OIllpAOS
as far as possible all national banks
and bankers of established credit,
who would give the requisite secu-
rity, in the sale Of bonds, to reach,
if possible all classes of the people;
to treat them all alike, and to allow
them all the same commission, and
to deliver bonds to them in any
part of the country, free of charge,
and to invite popular subscriptions
for that purpose. When, however,
the Treasury Department came to
put that plan in actual operation, it
was found that under the existing
laws there were some embarraSS-
ments. If Congress would see
proper to remove them, it would
enable the department to very
largely increase the loan and dis
tribute it more rapidly than it
could be done at present under the
law as it now stood. The Secretary
then proceeded to show the existing
embarrassments, and presented to
the consideration of the committee
the draft of bill to promote the
deposit of savings and the refund
ing of the national debt. In COM
menting on the provisions of this
bill, he said that if Congress would
pass it ne would be able to refund
the public debt very rapidly, and
to carry out the operations of the
treasury with increased advantage
to the public. He preferred this
mode to the one he had previously
indicated for a popular loan. 1t
proposed that any holder of Uuited
States notes may deposit them at
any postal mOney-Order office in
the United States, and shall be en-
titled to receive therefor, free of
charge, a postal order on the Trea-
sary of the United States. Such
postal orders, when presented to
the Treasurer at Washington in
sums Of $40, or any multiple of that
sum, shall be converted into certi-
ficates of deposit of the United
States of tl.e kind and description
provided for in the bill. Such GER
tificates may also be issued in eX-
change for United States notes at
the Treasury of the United States
at the office of any Assistant Trea-
surer, or at any designated depOsi-
tory of the United States, the GER
tificates of deposit to be issued by
the Secretary of the Treasury, of
such form and description as he
may prescribe, and of the denOmi- |
nation of SO, 500, $50 and 800, and |
to bear interest at the rate of $3.50 |
per cent. per annum for the term of |
one year, and no longer, and shall |
be received and redeemed by the |
United States in payment only for |
bonds. The certificates may be |
held by any national bank for that |
portion of its reserve not required |
to be kept on hand in specie or legal
tender notes. The Secretary is au-
thOrized to receive either United |
States notes or postal orders or GER
tificates of deposit at their market |
value in coin in payment of United !
States bonds issued under authority |
of law, or in lieu Of such bond |
registered bond or inscribed debt |
on the books of the Treasury, SINH !
lar in character, leaving the inter-
est to be compounded every six
months. All United States notes !
received in,O the Treasury are to |
be applied exclusively to the pay |
ment of any bonds of the United |
States, or to the purchase of coin or
bullion to be applied exclusively to
the payment of such bonds.
Several questions We're asked by |
members of the committee with re-
gard to the true meaning and in
tent of this bill among others by |
Mr.. Wood, the Chairman, who in
quired whether the Secretary did |
not think that the certificates auth |
Orized to be issued in lieu of the |
pOstal-money orders, which the bill |
called for, could not be used as cur
rency, especially as the denOmina-
tiOns ran down as low as $40, and |
whether after the expiration of one |
year in which they bear interest,
they could not then be used upon
their par face with accrued interest
as currency, precisely the same as
legal tender notes now are and If |
this view was correct, whether the |
effect would not be to add six hum
dred millions ofdOllars, the amount /
of the tive-twenties yet unrefunded,
to the circulating medium of the
country.
The Secretary replied that he
thought not.
Mr.. Wood said But after the