The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-02

Silver BILL which axes silver available TO pay bonds
issued By tho United states either before alter tho
Refunding Resumption acts. is not good policy.
have stated that over and over sgain publicly, and
40 MOI deny Il. But the Silver bill Is the law wea
not tnailible. II cannot operate quickly in that way
and, therefore. We had better give II the full bencht
OF an experiment, IN the certainty that II Congress
hnds that II has the effect which is anticipated
Congress can at any moment stop the issue OF silver
dollars. think that that Is as lar as ! ought to
Mr.. CnrrgxDEN--It is not my object to embarrass
the Secretary in any way In these questions.
sufficient TO the day is The ev thersoi;-ihat We
WIZ take care OF the present and let the future take
sare OF itself
rug INTERVIEW WITH TnE BANKERS
secretary SHERMAN-it you allow me can now, In
connection with your question In regard to my opin-
ion as 10 tho pracicability of resumption, ana
pecialy in regard to an interview published in the
newspapers between Mr. Ewing and bankers In Now
York, give you my opinion. have read That inter.
many or tho gentlemen who took part In IL.
ba ns psope, so me- on inc par, Q,
that interview should DO made public but the report
Of vas surreptl,'ousy obtained from the committee
IN some way. The committee did intend 10 publish
before it.
slightest objection to publishing IT,
The CHAiRMAS-Only probably on account Of conn.
Mr.. EwiyG-we told those gentlemen as the con
ference when they came before that we had our
secretary for the purpose OF taking down their state
mentss not with view oil publishing them but
merely Tor tho Information OF tho committed and
the committee feels exceedingly annoy about tho
publication, because IL would like violating the
understanding which we had when tho conference
was held; but the paper was surropiousiy Obtained
anu The committee docs not feel at fault about il.
Mr. CHrrrExDEN-speclai pains were taken at New
York TO exclude newspaper reporters
secretary sHEkMAS-lt rs pretty hard 10 exclude
newspaper reporters, but think IL was right enough
10 have that conference published. II presents the
opinions Of very intelligent gentlemen whose buslosss
II is to be familiar with the subject their mons
arc entitled 10 fun weight. i can only gvo you my
general reply 10 them.
Mr.. EwisG-l supposed that these gentlemen wcre
coming here.
Tho CHAlRMAS-we expected to get them here a.
the same time, and hence in some manner under
stood that tho conference rather OF con.
hdeDce between the subcommittee and these gentle
men. OF course We expected TO get those facts out
through them different form, but this conference
was sort OF confidential communication their
part.
REPLY BANKERS.
Secretary SHERMAN-My reply would 90 about this: -
Those gentlemen assume three proposnioos:--
Frst-That VIC cannot sell enough four per cent
bonds TO prepare for resumption.
Second-rhat tho national banks throw upon tho
government tho burden Of resumption OF bank notes
Us well Ms OF United States notes
Tmrd-Ihat resumption requires the resumption
States notes below $500, 000, 000
To these l answer that l believe that with such
auxiliary Legislation as Is pending IN both houses we
sell enough four per cont bonds TO prepare for
sumpton but, II am mistaken in this we can sell
cilher four ana half or five per cent bonds which
they admit Will command gold, silver and bank not es
10 MAINTAIN resumption. Some OF these gentlomcn
have proposed to me that u sell them four ana hu II
per cent DOnuS AT par IN com tney VIII guarantee
enough coin for resumption, and have some better
oilers from other banks and bankers so that on tins
point II Is only question Of the rate OF interest on
hac Tor four per cent Is time enough to pay four
a halt The Silver bill has crippled my power TO sci,
tour per cent bonds but wise savings bill that will
enable me TO deal directly With tho people would 60
far TO repair THE.
READY TO ENCOUNTER THE BANKS.
Upon the second point IT may we'll be undcrstood
that The national banks cannot throw upon the gov
eminent tho burden OF RECKONING their notes Tho
m " he Thav ara h0u nd N aaon
their notes on demand al the treasury Win United
States notes or coin and TO maintain their vaults
very largo reserves OF United States notes. Any
effort Of tncirs to iorce the redemption OF
their reserves OF United States notes in com
withdraw all government deposits from them; 10
present all bank notes bed or received by the govern
e,sa i0s rn nesa De- 70 exchange
as these gentlemen contemplate would end in their
losing their power to issue circulating notes at all.
Their talk about forming limo to break tho govern
mcnt Is not discreet and 10 not dangerous moro
! concerned about What you viii DO than about what
they will do The United States government already
holds larger cash for tho reiempsion OF It's
notes in proportion TO demand liabilities than any
power to Increase IT, Our certificates Of deposit the
most dangerous form OF demand Liabilities. are 30
cured, dollar Tor dollar oy coin or United states notes
actually ia hand, While The banks owc over
5000 900 10 dcpostors, the great body Of which
represented by notes and bills discounted. The only
demand liability not covered by actual cas,
hand s the United States notes. snd OF those
$40. 0o0 900 are in vaults and $40 600 600
coin reserve OF $1,000 600 to $3.50, 200, 900
tho redemption OF $500 900, 600 OF United
DO diminished 10 any considerable extent by tho
banks or any combination OF banks without o.
tnuous draft upon the banks TO make II good. We
rely upon the Intelligent scli-intorest Of tho
banks TO prevent such struggle. Nothing could
provoke more qu,ckly than threats by bank officers
and II such "A struggle comes the government with
reserves, with ample revenue and tho power TO sell
bonds, can easily MAINTAIN resumption without feur
OF line Of bank cashiers ANXIOUS TO break the
Treuaurv q high OF interest
THE POWER or REISSUE.
on the last point, tho power to reissue Is plainly
given oy section 357g Revised Statutes and la
OF any more by the otcs coming iuto the Treasury
exchange for coin than IN payment OF ajax Even n
tho supreme Court hold them as no longer fuil legal
tender they are much bank note II tho
choice must be made between the two the common
note. | believe they both ought TO circulate and
both be at par with com. But nothing Is
SO discouraging in tho progress Of resumption as
Tor national banks to shrink IRON their share of tho
burden OF resumption, or to make threats such
stated oy some OF thesc gentlemen; and nothing 10 so
injurious TO tho banking system or will prccptaic its
overthrow moro certainly than popular conviction
that the banks are endeavoring to cmbarrass the
government in maintainng resumption.
Mr.. CnrrTgSDEy defended Tho bankers who partici-
patcd in the New YORK conferences from any sugges-
ton OF holding out threats against The Treasury, and
he appealed 10 Mr. Ewing Tor confirmation OF that
dsavowal, which Mr. Ewing promptly gave.
GOVERNMENT
Secretary SHERMAN went on 10 show nat all that
the bad TO do In the matter OF resumption
to take OF $780, 600 900 OF legal tender
nOtes, Wntle BANKS ON tHcir sue were TO
take caro- OF the national bank currency, and he
dcrtook TO demonstrate that both tho government
ana the banks were abundantiy ablo to DO this.
Mr.. EWING pressed him closely on this POINT a. to
the effect tho presentation of $50 900 900 OF legal
tender notos for redemption, but tho secre-
tary took tho ground that undor all the
circumstances, and IN view oil the fact
that the last weekly report OF tho New York
ISOLATED banks showed only nm amount OF somo
$i2, 900, 900 Of legal tenders on hand. such sup
position not TO DO regarded us possibility, par
ticuIariy the banks themselves had TO retain a
,f Iayu in Yue In rede HAIR N
outstanding notes.
ST.. EAaEs suggested the question. whether the or
siing paper circulation not restricted enough for
tho business OF the country, and whether there was
any Likelihood OF any considerable dimnuton OF II by
It's conversion into specie.
Secretary SHERMAN conceded TO largo extent in
this the He thought tb at paper circu-
lation OF SIX hundred millions was not too large to
meet the demands Of business.
In furtBcr trcply to air. Ewtng's questions he took
the ground that u there was any doubt about tho
abity OF tho government with its present means to
meet all the demands OF the Eesumption act there
would doubt whatever about u u he wore antho
rzed either to issue popular tour per
cafl haf han ia IN l,c .lrvu