The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-04-03

carried TO the debit or credit OF the
next years account. An exception
to that rule was made after the panic
of 1878, when the revenues fell off and there
was a deficit OF $40, 305, 600 in the sinking
fund. Secretary Bristow seeing the improb-
ability of making good that deficit dropped
it entirely, and it was no longer carried for
ward in the sinking fund. Last year the
deficit in the sinking fund had been 80 49,
600 simply on account OF the lack of revenue
to make it good.
The Chairman-On the whole, however,
the sinking fund has been more than made
good since the act began to operate.
Secretary Sherman-Yes, you will find
statement of that in Mr.. Morrills report.
The sinking fund was never kept as an ac-
count in the treasury department until
after the funding act of 1870. Up to
that time the statement was made
as to how far the sinking fund
had been kept up, and was found by the ap-
plicatiOn OF surplus revenue to the payment
of the debt we had largely exceeded the
stipulatiOns of the law to the amount of over
S2,OO0.OOO. Farther on in the conference the
question OF the sinking fluid was taken up
by Mr.. Ewing and the proper construction
of the law was discussed between him and
the secretary, the secretary taking the
ground that the cancellation off the legal
tender notes was virtually payment to that
amount into the sinking fund and Mr.
=
construction.
Mr.. Chittenden-I have prepared the four
! questions in interest of those whom | repre-
sent to which l should like to have your
answer.
/ /. With silver dollars and silver certifi-
Gates, full legal tender for all debts, includ-
/ ing customs and public debt is not gold
/ practically demonetized and how Will YOU
renew your supplies or prevent it's exclusive
use as merchandise in foreign commerce?
2. Is there no danger that the national
banks, in taking care of themselves, will
hoard greenbacks enough TO exhaust your
+ gold reserves when the day for resumption
come?
/ 5. Is it possible that before you have
+ coined hundred million of new silver dol
lars, with greater activity in foreign trade,
they will be exported at their bullion value
/ TO settle the balance, and with what effect
upon the price of silver bullion?
4. Does not your success of resuming coin
payments with our so called double standard
depend absolutely upon an advance in the
/ price OF silver bullion in London to about SO
pence sterling per ounce?
i have noe spoken with any member of
the committee in framing these questions.
They were framed It my own table, iDflu-
enced only by my correspondence and by
questions asked of me by those whom | rep
resent.
Secretary Sherman would great deal
rather in this conference give the
committee facts, and let the committee
draw its own references, than attempt to
give my own opinion. But have no Objec.
tons TO answering any of those questions.
think to ascertain the amount of silver dol
lars issued will not have the effect which
Mr.. Crittenden thinks. / believe we c.
maintain par in gold, certain amour 81
silver dollars. Precisely what amount
should not like TO say, because that is a
question OF opinion, but would have an
idea that we can maintain par in gold, nc
less than fifty millions of dollars, and per
haps more. say from hfCy to one hun.
bred millions but whenever those silver
dollars becomes so abundant and 90
buTdensome that the people would not have
them. / would not circulate them. UndOubt
eddy they would gradually sink 10 the value
Of the bulliOl in them that is my opinion
/ do not think it wise for either the com
mittee or myself TO discuss this question
much, because the silver bill is a law, and
whatever we may think OF its effects the
public mind will not be satisfied until thai
law IS fairly tried. The effect of the silver
bill is not going to be very rapid, nor viii
the fall in silver be anything like 50 rapid a:
is probably feared, and long before the silver
dollsr can sink 10 the value of silver
bullion congress will undoubtedly cOfrec
the law If II were TO have that effect. ii. or
the other hand, ii should have the effec
which is anticipated of raising the mass o.
silver up TO the standard of gold, then Mr.
Chittenden need not be afraid. Therefore
say that / do not think that ought to give
my opinion further on that subject / have
not changed my mind about the silver bill
although the newspapers sometimes say thai
| have. think that rs a matter of policy
the silver bill, which makes silver available
TO pay bonds issued by the United States
either before or after the refunding or re
sumption act, is not good policy. l have
stated that over and over AGAR
but the silver bill is the law We are no
infallible. 1t can not operate quickly il
that way, and therefore we had better guy,
it the full benefit of an experiment in th'
certainty that if congress finds that it ha
the effect which is now anticipated, congress
, can at any moment stop the issue of .silve
dollars. ] think that that is as far rs ough
TO answer these questions
Mr.. Cbittendep-It is not my object Il
embsrrass the secretary in any way in thes'
questions.
The Chalrman-The secretary is of III,
opinion that sufficient to the day is the evI
thereof; that we will take care of the presen
, and let the future take care Of ITSELF
The Secretary-If you Will allow me, car
now, in connection with your question il
regard to my opinion as to the practicabilit!
of resumption, and especially in regard I,
an interview published in the newspaper
between Mr.. Ewing and the bankers in New
York, give you my opinion. / have reaC
, that interview with great deal of attention
because | know many of the gentlemen whC
took part in it.
The Chairman-It is proper for me, on tht
part of the committee, to say that it wa
never intended that that interview should
be made public, but the report of it wa
surreptitiously obtained from the COMMITTEES
in some way. The committee did intend u
publish it at the proper time, after it haC
these gentlemen here before it.
Secretary Sherman do not think tina
there was the slightest objection to publish
ing il.
The Cbairman-Only, probably, on accoun
of confidential relations
Mr.. Ewing-We told those gentlemen a
the conference, when they came before us
that we bad our secretary for the purpose o
taking down their statements, not with
view TO publishing them, but merely for the
! Information of the committee; and the com
mittee feels exceedingly annoyed about tn,
( publication because il would seem like :