Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1878-04-03
SHERMAN EXPLAINS AS TO THE PREPA-
RATIONs FOR SPECIE RESUMPTION.

WASHINGTON, April 1.-The House
Committee on Banking and Curren-
cy had long conference with the
Secretary of the Treasury on the SUBJ
ject of the preparations made by the
Treasury and National banks to exc
cute the resumption law.
The Secretary said no bonds were
ever delivered until paid for. As to
the usual amount of annual coin liza
bilities (taking the last fiscal year as
the basiS it was $lO2,OOO,OOO.
Answering question, the Secreta-
ry said the amount of fractional cur
rency applied to the sinking fund in
1876 was 100000; in 1877 it was
$l4, OOO, 900, and up to date, three and
q third millions, total of 1924, 500, 600.
Last year the deficit in the sinking
fund was $6,25OOOO, simply on ac-
count of the lack Of revenue to make
it good. However, on the whole, the
fund has been more than made good
The Secretary was engaged in dis
cussion with Ewing on the sinking
fund. The Secretary argued that the
cancellation of legal tenders was vir-
tually q payment to that amount.
Ewing denied this.
Chittenden asked the following
questions:
l. With silver dollars and silver
certificates as full legal tender for all
debts, including customs and the pub
lie debt, is not gold practically de-
monetized; and how will you renew
you supplies or prevent its exclusive
ahon
merce.
2. Is there no danger that the Ma
tional banks in taking care of them
selves, will hoar i'd greenbacks enough
to exhaust your gold reserves when
the day for resumption comes?
3. IL it probable that before you
have coined hundred million of new
silver dollars with greater activity in
foreign trade, they will be exported
at their bullion value to settle trade
balances, and with what effect upon
the price of silver bullion.
4. Does not your success in resnm-
ing coin payment with our so-called
double standard depend absolutely
upon an advance in the price of silver
bullion in London to about SO pence
sterllng per ounce.
The Secretary answered that he did
not think that q certain amount would
have the effect Chittenden anticipat-
ed. He believed that the silver dol
lar can be maintained at par in gold.
Though ne would not fix the amount
certainly, it would not be less than
$50, GOO, 600, and perhaps $lOO,OOO,OOO
When these dollars got SO burden
some the people would not use them,
then they would sink to their bullion
value. The people would demand a
fair trial of silver, and the changes in
the value of silver would be quietly
effected. He had not changed his
mind about the silver bill, although
the newspapers claimed he had, but
we are liable to err. Whenever the
effect is bad Congress can instantly
stop the coinage Of silver. He didn't
care to discuss the question thorough
ly.
The Secretary said the bankers as
sumed that we can't sell enough 4
per cent. to prepare for resumption !;
that National banks can throw on the
government the burden Of r,sump-
ton Of the bank notes as we'll as of
United States notes, and resumption
requires resumption and cancellation
without the power of reissue Of Uni
ted States notes below 100000, 900.
He believed that enough of the per
cents could be sold, but failing in that
enough ~ and s per cents to MAIN
tain resumption. These bankers had
offered to buy enough AZ per cents
to guarantee resumption, and the
whole question was only as to the rate
Of interest on the bonds. If money
cannot be had for per cent. it will
then be time to pay AZ per cent
Although the silver bill has crippled