New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-12-25
GETTING GOLD FOR RESUMPTION.

| E1llNG GUILD FOh RESUMI llON.
SECRETARY SHERMAN REPLIES TO MIR. ABRAM 8.
| HEwIT1'S CHARGES OF FAvoRITIsM TO THE
FIRST NATIONAL BANK-THE SYNDICATE AND
| THE FOUR PER CENT BoNDs-MR. SHERMAN
| HOPES TO REFUND THE REMAINDER OF THE
| 500 BONDS NEXT YEAR.
Secretary Sherman was just getting ready late
yesterday afternoon to take the train back to Wash
ington when his attention called to the inter-
view with Mr.. Hewitt published in the third
edition of The EreniHg Post, in which Mr..
| Hewitt repeated at some length his arraIgn-
ment of the Secretary recently presented to
| the House for favOritism to the First National
Bank in the matter of procuring the gold
for resumption purposes and in funding operations.
After reading it, Secretary Sherman said he thought
Dir. Hewitt had. as usual formed and expressed his
opinion without hearing, reading or nquirng as
| TO the facts. He seemed to think that in some
way the First National Bank had been improperly
| favored.
| "The very magnitude Of our success" said Mr..
Sherman, Sin refunding and resumption, is the
ground OF the charge of fayoritsm This charge is
absolutely untrue The sale of $50, 600 600 of bonds
for resumption purposes was made TO the Syndicate,
| not from choice, but because the banks of New
York could not with due regard TO the wants Of
| their customers, take the bonds and furnish the
! gold coin the Treasury needed. The Syndicate
! bid the full market price and paid the
actual coin precisely as they agreed They
selected the First National Bank. one of their mem
ber, as the medium of payment. did not. 1t was
necessary under the law to have a National bank as
an intermediary in paying for the bonds. and would
| have accepted any other readily. The bonds
! were paid for exactly as stipulated in
! the contract, in actual gold coin or
coin certificates or called bonds, the two
! Iooin in no Trao
No bonds were delivered except upon full payment,
| and the certificate of the bank was only received
when fully secured by deposit Of United States
! bonds"
AS TO the 4 per cent bonds" continued Mr..
| Sherman " their sale was and is open TO all the
world on the same terms. Every National bank
was invited by public advertisement, often re-
| peated, and sent in circulars to every bank aud
| banker in tho United States to become
( Government agents and public Repositories
| for the sale Of these bonds with full notice that
| subscriptions made by them or through them by
| any person whatever. would be received and the
amount left deposit 10 await the ninety-day
calls required by law Not one dollar was deposited
! by the Treasury with either the First National
Bank or any other bank on account of
! the loan, and they were treated exactly alike.
| They were required, without exception dis
/
| duration of the current calls of 5-20s the
! amount Of their subscription, either in coin, coin
certificates or called bonds and it il just TO them
| to say that every subscription was promptly met
without delay or loss. In the course of business
| most of il was paid by called bonds, thus making
| the refunding q remarkable success without the
use Of much com. The First National Bank
aud National Bank OF Commerce, of New
York, and the Maverick National Bank.
OF Boston, were the most active and success
ful agents in this business, and thus their subscrp-
tons and sales the largest, and the amounts on
nominal deposit we're larger precisely in accordance
with the amount Of their sales. They had 10 favors
Of the Treasury but they rendered great service to
| the Government by their activity and success"
Concerning the double interest during the run
ming Of the call complained of by Mr. Hewitt, that.
| said Nh sherman, was unavoidable IN the operation
of rcfunding. The call could not be made until
subscriptions were made, or were reasonably sure.
This was fully settled IN Secretary BoutwelPs tlme
| Mr. Hewitt, in his interview" remarked the Sec
| rotary, "supposes a case as follows:
".suppose banker In what he considered 10 be IA
able etate OF The market takes 800 900 III per
ing IA security n deposit OF the same amount IN per
cent bonds. The banker draws interest on D0th bonds
for three months and all he has ever put up 10 the per
! cent bonds
This il precisely the operation that the law con-
templatcs I'm the case supposed. before the end OF
ninety DAYS the banker would have to pay for the
bonds in gold coin or else his per cent bonds
would be sold and the proceeds applied TO the re-
demption of the called bonds. III Mi. Hewitt
does not see that this is q favorable opera
| ton for the Government, he is not as shrewd
| a business man as took him to be- We lose III
| tercst on the per cent bonds amounting TO per
| cent and gain interest at the rate OF per cent
In Il ali cd
| any banker would make the proposition for $780,
| 600 600 or less As for the ninety days required
| by law for the call. think it sometimes Is too
1ou,, and have invited the attention OfCongress TO
| Il Int now. under tho law, the call must run for
that time.
Ct wish next year TO refund the whole Of the bal
apce Of tbe zoos. amounting to about S35O,000,-
| OOO on substantially the same terms ana II the
| other banks will be as active as the banks named
| have been It can be easily and readily done. and
they will make their commissions, and the United
| States will save seven millions year III
| tbe interest of tho public debt. Perhaps
| This ignorant outcry will help along In
this good work, by advertising Tree the
| easy WAY it can be accomplished As for any ABUSE
| | may receive by faut-inding persons whlle they
arc finding out the process OF reminding, can
stand il with composure, and they viii learn some
| thing III any one IL reaiIJ ioo''i '"'"e" w ~
| that or any officer of the Government has done
any act injurious to the public interests or from inn
proper motives, will gladly help him IN theinquiry.
must confess am surprised by the ignorance
manifested at what has been gong on for SIX years
| in the open light Of day upon public advertisement"
The essential points Of Mr.. Hewitts interview III
| The Post to watch the Secretary Of the Treasury
| replies above, are as follows:
Te grievance this That the Secretary Of the Treas
ury has xercse discretion Of he has any discretion.
and this yet TO lie ascertalneh 10 Ine ts