Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-04-02
SHERMAN THE INFAMOUS
HIS PLAN FOR RUNNING THE COUN-
TRY.


Desolation, as Told to the House Commit
tee on Banking.
WASHINGTON, April 1.-The House commit
tee on banking and currency had long con-
ference with the secretary Of the treasury on
the subj ect of the preparations made by the
treasury and national banks to execute the
resumption law. In reply to a question as to
the amount of bonds sold up to the first of
February. 1873, and not paid for, the secretary
said that no bonds were ever delivered until
paid for. Another question by the committee,
was to the usual amount of annual coin liabili-
ties. The answer to this was, taking the last
fiscal year as basis,
Coin interest. ....................$ 92, 1888 431
Amount applied to banking fund, -. a., 500
mount paid for diplomatic services 1885, 1856
Amount paid for foreign naval SER
vice, ............... 224, ia
Amount customs refunded, ..... 524, 500
Amount expended for refunding ma
tional debt and refining bullion,&c. 9O1, 1872
Total, .................... $lO2, 46O, O68
Another question by the committee as to the
amount of fractional currency redeemed and
carried to account of sinking fund, and as to
what applications of coin have been made on
account of sinking fund during the current
fiscal year.
Secretary Shermans reply to this gave the
amount of fractional currency applied to
the sinking fund in 1876, at so, 062, l42 !; in
1877 as $14 O43, 458, and for the expired portion
of the present fiscal year So, 1882, 621, making
total applied to that fund of $50, 446,822.
No coin application had been made to the
sinking fund during the currant fiscal year,
except the redemption of bonds heretofore
called, to the amount of $67,7OO In this con-
nection, the secretary defined what was meant
by balances in the sinking fund account
They simply mean the excess or deficit in the
annual payment to the sinking fund, and
which was carried to the debit or credit of
next years account. An exception to that
rule was made after the panic of 1873, when the
revenues fell off and there was deficit of
$106, 3O5, 900 on the sinking fund. Secretary
Bristow, seeing the probability of making good
| that deficit, dropped it entirely and it was no
longer carried forward in the sinking fund ac-
count. Last year the deficit in the sinking
fund had been $9,325, 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 3 You will find statement
| of that in Mr.. MorrilPs report. The sinking
ury department until after the refunding act
of 1870. Up to that time the statement was
made as to how far the sinking fund had been
kept up, ana it was found that by the appicar
tion of the surplus revenue to the payment OF
the debt, we had largely exceeded the stipula
\
000,0 900.
Farther on in the conference the question o.
| the sinking fund was taken up by Ewing, anC
the proper construction of the law was dis
cussed between him and the secretary, the sec
Rotary taking the ground that the cancellation
to that amount into the sinking fund, and Ew
ing denying the correctness of that construc
tion.
Mr.. Chittenden-I have prepared four ques
tions in the interest of those whom represent
to which should like to have your answer.
First-With silver dollars and silver certif
Gates, full legal tender for all debts, including
customs and the public debt, is not gold prac
tically demonotized, and how will you renev
your supplies prevent its exclusive use a
merchandise in foreign countries?
Seconds there no danger that the nationa
, banks, in taking care of themselves, will hoar
greenbacks enough to exhaust your gold n
serves when the day for resumption comes?
Thirds it not probable that before yo
have coined hundred million of new silve
: dollars, with greater activity in foreign trade
, they will be exported at their bullion value t
9 settle trade balances, and with what effec
: upon the price of silver bullion?
Fourth-Does not your success in resumin
coin payments with so-called doubl
standard, depend absolutely upon an advanc
in the prices of silver bullion in London t
about So pence sterling per ounce?
have not spoken with any members of IL
committee in framing these questions. The
were framed at my own table, influenced on
by correspondence and by questions asked I
. me by those whom represent.
Secretary Sherman would a great de
g rather in this conference give the commits
= facts, and let the committee draw it's own il
= ferences than attempt to give my own opinio
!, But have no objections to answering tho
q questions. l think certain amour
. Of silver dollars issued will not ha
the effect which Mr.. Chittenden thinks. I b
6 lieve we can maintain at par in gold certa
= amount of silver dollars, precisely VIII
= amount should not like to say, because til
= is question of opinion. But would ha
= the idea that we can maintain at par in gold
~ less than $50, 100000, perhaps more, say fro
g $50 DOC, 900 to 100000, but whenever tho
n silver dollars become SO abundant and SO br
densome that the people would not have the
and would not circulate, then, undoubted]
h they would gradually sink to the value of t
- bullion in them. That is my opinion, but /
q not think it wise for either this committee
myself to discuss this question much, becau
70 the silver bill is a law, and whatever we m
: think of it's effect, the public mind will not
- satisfied until the law is fairly tried. The eff,
af of the silver bill is not going to be very rap
= nor will the fall in silver be anything like
&c rapid as is probably feared, q
~ long before the silver dollar can ST
~ to the value of silver built,
- Congress will undoubtedly correct the law if
=, ~ were to have that effect.
no If on the other hand. it should have
~ effect, which is anticipated, of raising t
-. price of silver up to the standard of gold, tt
o. Mr.. Chittenden need not be afraid. Thereto
ra I say, / don't think ought to give my opini
~ farther on that subject.
- have not changed my mind about the sill
al bill, although the newspapers sometimes sa
N, have. think, as a matter of policy, sill
=, bill which makes silver available to pay boz