Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1878-03-29
RESuMPTI0N.
Secretary shermsn's Views.


Chairman said:
Mr.. Secretary, have iotted down few
general questions and some in detail which !
propose TO ask you, and suppose that other
members OF the committee may have questions
which they may desire to ask at later period,
but will ask some general questions in order
that you may make a statement, II you choose,
with more freedom than you can by going into
smaller details at the commencement. First
Ought the Resumption act, in your opinion,
to be repealed, and II not, why notl
Secretary Sherman think that the Re
sumption act ought not TO be repealed; that
II was a declaration Of public policy, com
menced with the act of February 1862, re-
peated by Congress several times, notably in
1865, notably again in 1869, and again by the
passage Of the Resumption act, that we would
as soon a. practicable redeem any United
States notes which were presented for redemp-
tlon in gold and silver coin. That is the de-
clared public policy of this country, and It
ought to he adhered to; and am fully con-
vinced that we are able TO do what we have so
often promised TO do and ought to do, y
The whole country has settled down to the
conviction that We can resume, and busl-
ness has adapted itself and contracts have
been made with that view. SO far as any suf-
fering from resumption or preparation for re-
sumption Is concerned, II we have already suf-
fercd any, now to go back would be TO invite
suffering again. II strikes me, therefore, that
IL Is better TO go ahead, and that to retrace the
policy Of resumption now would separate the
metals from our currency, and we would have
to go through the same trouble again. 1t
would be an evidence Of national weakness.
The struggle between metallic money as the
basis Of paper money, and irredeemable paper
money, must be made some tlme and think
we had better complete it now.
The Chairman-DO YOU think resumption is
practicable under the present law
Shprmau-I have brOuUht uuftp a numbpr of
documents here which | will give you and
they will speak better than / can. The best
evidence that we are able to resume the lst Of
January next is the progress that has already
been made, When the Resumption act passed
the premium on gold was about 1Ol5 per cent.
Since that time it has been reduced to nom
inal rate. II is now a little over /. Since that
time we have accumulated, in preparation for
resumption, a large sum OF gold. I have taken
some pains to get the figures, which | will give
you now. They are accurate, so that you may
have the exact condition of the Treasury
This is a statement Of the Treasury made yes
terday:
TREASURY OF THE UNITED STATES
WASHINGTON, March Is, 1873.
SIR: In accordance with your request, have
the honor to state the amount in gold and silver
in the Treasury on the 18th ult., the date of the
last debt statement. which is ~ follows, viz.
Gold coin, Sll7 Isl, ,455: gold bullion, S7.931,3O0
total. Sl25 0sS, ,755. This is, however, subject
outstanding checks to dsbursing officers
s6 lS9, ,626: second, coin certificates outstanding
IA, 1880, for gold deposited by banks and in
dividuals third. called bonds and interest
S6,slS.677: fourth, interest due and unpaid, "a,
9O9 705. That makes s62, ,416.5O9 gold subject t.
demand or about One-half of the supply on hand
iehyipg available gold com and bullion so ag9ns 55 ms
Then there is silver fractional coin, S5 ,972, sos
silver bullion, S3,l3O,7ls. If this statement was
made mp to date the silver bullion would be
gpH1 1aa1 ba pfal lall Ia cold ud
silver over and above demand liabilities is T7l
775. $50. OF the items that are counted here and
deducted from gold about S20,OO0OOO are practi
cally available for resumption because of out
standing drafts and called bonds and interest
due and unpaid.
The amount of gold and silver coin and
bullion available for resumption in business
sense is about S9O,0O0,0O0, but the actual gold
and silver bullion coin in the Treasury
over and above all demand Liabilities is sI1,
1855 Now in regard to another point per
tinent to your question. We have in proc
ess of preparation for resumption reduced the
volume of L. s. notes. The amount was 1882,
100000 at the time of the passage of the Re
sumption act and the amount now Is S34S, ,bl3,
O4. Again, the amount of outstanding bank
notes has been reduced. On Dec. 81, 1875, the
amount was 1916, 419, 756; ON Dec. 81, 1877, the
amount of bank notes outstanding was 1921,
612, sos, and on Feb. %, 1S7S the amount OF
bank notes outstanding was 1921 ,9S9, ,99l, but
lne dlllOuul Dl Ddllh HOJeS VI IIle Ddllhs III eN
istence not in process of liquidation was S2g9
$40, and the difference between these two
sums being notes of the banks in process OF
liquidation, although the notes are in circula
tiOn, yet an equal amount of greenbacks are
in the Treasury as a special deposit to redeem
them.
Ferry-Then, really, there should be but
S299, 100000 National Bank notes outstanding
Sherman-If you count the whole green
backs as outstanding there would be 1893,
1000 National Bank notes. Then it must bt
remembered that the United States notes have
been in circulation since 1862 and bank note:
since 1854 and that large sums are lost or de
stroyed. This diminishes to some extent tn,
amount outstanding.
months the issue of silver coin and the reduction
of fractional currency under the act of April 10
lS76-frOm April %, 1876, to Feb. %, 1878, th
amount of fractional currency redeemed bein!
524 ,039, and the total silver payments S3S,
479,30S. The total amount of fractional note
outstanding on the 10th inst. was 5l7 100, ,7l5
The average monthly reduction of outstanding
fractional currency, estimated upon the basis o
redemption of the past four months, is $4,000
Jones-How many millions then of lega
tenders do yOu estimate as being in circulation
now outside of what you hold to redeem note
of banks In process of liquidationi
Sherman-I should think 1890 900, 900; de
ducting those that have been lost or destroye,
make the aggregate of bank notes and green
backs about $643, 100000 To repeat the gen
eral result of our preparations for resumption
we have already practically abolished the pre-
MUM on gold. We have reduced the amour
of L. S. notes and the amount of Nationa
Bank notes outstanding. We have paid OF
practically the fractional currency, and now W
have a very remarkable circumstance in Ou
favor. The balance of trade is in our favor b
the amount of S160,0OO,0O0 a year, bringing
silver and gold and bonds back to us. In tn
last three years the balance of trade in Ou
favor is S414; ;O34, ,666.
To a number of questions asked, Secretar
Sherman replied: ave have got both golt
and silver from England, but we must do il
as Lincoln said, unbeknownst' to them.
must come by natural currents of trade. Il
attempt to bring by any artificial movement
large sum of gold to this country would be l.
create alarm. Ali last summer and fall tn
accumulation was from S5,0O0,0O0 to 5000
900 each month. Some of that came from GU
own mines and some of it from abroad, but W
accumulated 1t without any possible injury Il
anybody. Now in general answer to you
question, l do express my opinion oftciall
and personally that, for the reasons hav
given, We can resume on the lst of Januar
next under the basis of the existing law
The Chairman-What effect has the Silve
bill had, or is likely to have, on resumption
Sherman-Mr. Chairman, | shall have T.
confess that | have been mistaken myself
now, as to the Silver bill. have watched il
operation very closely. / think the Silver bill
had some adverse effects, and it has had som
favorable effects on the question of resumI
tiOn. Perhaps the best way for me to procee,
would be to state the adverse effects first.
has undoubtedly stopped refunding operations
Since the agitation Of the silver question
have not been able largely to sell bonds, al
though | have made every effort to do so.
Now another adverse effect the Silver bill
has had Is to stop the accumulation of coiI
Since the LIST of January we have accumulate
no coin except for coin certificates, except tn
balance of revenue over expenditure. Tn
revenues in coin being more than enough I
pay the interest of the debt and coin liabil
ties, we accumulated some coin. Another el
feet that the Silver bill has had is to caus
the return of our bonds from Europe. A
though the movement of our bonds in thi
direction has been pretty steady for NOR
than year, 1t is latterly largely increased
how much | am not prepared TO say
On the other hand will give the fayorabl
effects. In the first place, the Silver bill sat
isfied a strong public demand for bi-metalli
money, and that demand is no doubt largel
sectional. No doubt there is difference q
opinion between the West and South and Eas
on this subject, but the desire for remonetizs
tion of silver was almost universal. In
Government like ours 1t is always good I
obey the popular current, and that has bee
I.... IL N.WH - Nl.a -