The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-01-23


1876
Senator sherman Before the Ways and
Means Committee and Gives LeBg
Di>eoarse the Finances OF the
Country.
WAsHISGToN, Jan. Is Secretary Sherman
to day appeared before the committee on
ways and means He said it was known
that there had been syndicate for the sale
OF 4 per cent binds, but in Difference 10
what was regarded as The popular SEN
timent, and also for the conven-
fence of negotiation it was deemed
| best 10 terminate that contract and
| place these bonds ia the market
upon somewhat different plan, namely, to
employ, as far as possible, all national banks
and bankers of established credit, who
| would give the requisite Sc curiiy in the sale
of bonds, to reach, if possible, all classes OF
| people; TO treat them all alike; TO allow
them all the same commission, and to DE-
| liver the bonds To them in any part of the
country free Of charge, and to
invite popular sub cripions for
that purpose: When. hoSeyer. the treasury
| department. came TO put that pan into acru-
| al operation, il was found that, under exist
ing laws there were some embarrass nenis
| which. if congress should zee proper 10
| remove, would enable it TO very largely
increase the loan, aud distribute il more
rapidly Than it could be done at present
| Ohucr tue law as IL now $1,000. 4 he
5 cretary then proceeded 20 shog
| the4 xisting embarrassments, and pres9nt,d
| 10 the consideration of the committee the
| draft of a bill to promote the depnsi5 of
savings and the rsfundIng of the national
| debt In commenting upon the provisions
of this bill he said il congress would pass it
| he would Be able 10 refund the public debt
very rapidly and 10 carry ont the operations
of the treasury with liner, aSed advantage 10
| the public. He preferred this mode t. the
one previously indicated for popular loan.
| 1t proposed that any holder of United States
| notes may deposit them al any pOsIiI
money order office in the Unifed S ates, anu
shall be entitled to receive therefor free of
| charge, postal order on the treasurer of
| the United States. such postal orders when
| presented To the treasurer ut Washington in
sums of $40. or any multiple OF that sum,
shall be convertible in-o certificates of
deposits of the United States, of the kind
and description provided for ID the bill.
| Such certificates may also be issued in
exchange Tor United 8 ates notes. at the
| treasury of the United States, at the Office of
| SDy assistant treasursr or at any designated
depository Of the Uolted s ates. Tue GER
| iitic4te OF deposit TO be issued bv the
secretary OF the treasury of such form and
| description as he may prescribe, ard of
denominations of $40. $50, $50 and 500, and
20 bear Interest at the rate OF So per cent
| per annum for term of one year aud no
| longer. and shall be received and redeemed
| by the United States in payment only for
bonds aud certificates, and may be held by
| any national bank for that portion of lis
reserve not required to be kept on hand
| in specie or legal tender notes
| The secretary is authorized 10
receive either United States notes or postal
| oriers or certificates of deposit, al their
| market valne In coin, in payment Of UGited
States bonds issued under the authority of
I 4 h. anu in ,f
bond or Inscribed deb on the 'oks of the
| treasury, similar in character, leaving the
| interest to be compounded every six months
All United States notes received into the
| treasury to be applied exclusively to the
PAYMENT of any bonds of The Uuiied Safes
rSdeemable at the pleasure OF the United
| S ates, or 10 the purchase OF coin
or bullion, to be applied exclusively TO the
payment of such bonds. Several questions
| were asked by members of the committee
with regard to the true meaning and intent
of this BILL among Others, by Mr.. Wood,
| chairman, who inquired whether the secre-
tary did not thnk that the certificates
| authorized 10 be issued in lieu of the postsl
money orders the bill called for could net
| be used currency, especially as
| the demonetiz ltiOns rain down as low as so,
| and whether after the expiration of the one
year in which they bore interest they could
not then he ussd upon their par face with
i accrued interest as currency precisely the
same as legal tend r notes now are. and il
/ this view was Correct whether the effect
would not be 10 add 5000, 900 000 the amount
Of the 5 2Ds yet unrefuDded, TO the circu.
| laiing medium OF the country.
| The secretary replied that he thought not.
| Mr. Wood sand: But alter the expiration
of the year during which they were entitled
| to draw interest, naviSg in the meanwhile
| gone into popular circulation, the question
is whether they might not coplinue to be
issued currency, and not presented for
| redemption or conversion"
| The secretary replied: "Thsy never could
be converted into more Than a per cent.
| bond, and that they would be entirely pre-
sented for such within year"
: The chairman said he understood that,
| bat the people did not receive any
interest now on United States notes called
legal tenders. and if the holders of these
| certificates chose to regard them in that
| light, and as currency, you would have no
| control over them
Tue secretary replied that the difference
| would be that United States notes were
legal tender. and these would not be.
Mr.. Wood said the legsl tender feature was
/ not of practical importance with regard t. u
| circulating currency passing from hand -
| hand. We have already large nat oDsl
! bsqk circulation which is not legal tender by
| Iaas but yetit lisa circulating medium of great
vs,ae and generally regarded as such Now,
Il e question arises whether these certificates
represented generally by postal orders
may not continue in circulatiOn in the same
way, uni, IS there be something iii the act to
prevent 1t.
Mr.. Tucker. of the committee, said that as
be understood the point of the chairman 10
| was that when the certificates ceased to bear
Interest they might pass rs currency.
The secretary asked: lis there any ohjec
1 ton To tbat?'
Mr.. Wood-I have not raised the question.
merely wan.ed 10 obtain your views as 10
the possibilities under your bill
| The SECRETARY referred to q feature OF The