Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1878-04-10
Sherman on the Finances.

Secretary Sherman had another confer
on Thursday in regard to the prospect of
specie resumption, and reiterated with great
emphasis his belief that the resumption act
can be carried out declaring that with $780,
100000 of reserve he expects to accumulate
the government would be stronger than the
Bank of England. Being asked by what
steps he expected to acquire the further sum
of gold needed, he said he did not care to
answer in detail as he might thus defeat
his own purpose, but it would be mainly by
the sale of bonds. He thought, too, that he
ought not to tell the kind of bonds and how
he would sell them, but he would not rely
on foreign market. If can get two
thirds of this years supply of gold and
silver" he said, :" it will amount to good
deal more than S50,0O00O0, so | do not
have to go abroad for gold If we can keep
our own gold and silver from going abroad,
it is more than | want For this S50000,-
600 he would rely to some extent on the
coinage of silver. Mr.. Sherman thought it
would be impossible to gather together
United States notes and present them in
such a mass and in such continuous
stream that the government could not meet
the demand, after resumption had once been
reached, but that the very effort to do so
would raise the value of United States
notes. Resumption, however, presupposes
that gold and greenbacks are of equal value
and if at any time gold should go above the
paper, temporary suspension of specie
payment would be necessary. He thought
that war in Europe would not raise the price
of gold in this country. Finally, Mr. Sher-
man said But suppose | am mistaken
still Congress will meet in December, and
then the question will be so apparent to
every man that, if the resumption act can
not be carried out, | will come to Congress
to say that have not been able to accumu-
late this reserve, or that an adverse state of
circumstances has arisen, and am not able
to do what the resumption act requires
me to do"
In reply to the committee Mr.. Sherman
further stated that the total gold and silver
the government had on hand February 2Sth
was $l3l92000O. From this was to be de-
Quoted SG2,4l6,5O9, the balance being the
actual amount available. Discussion arose
between the Secretary and Mr.. Ewing the
former maintaining that the cancellation of
legal tenders was virtually the payment of
"a oh
Mr.. Ewing denied. In answer to a series of
questions by Mr.. Chittenden, the Secretary
stated that from fifty to one hundred mil
lions in silver coin could be kept at par with
gold but afterward silver coin would grad.
ually grow to the value of bullion. With
the pending legislation in Congress we can
sell enough four per cents TO prepare for re
sumption, or certainly Of four and half OF
five per cents. The national banks cannot
throw upon the government the burden OF
redeeming notes with coin reserve of Sl50,
100000 The redemption of S300,000,000 Of
United States notes would be easy. Tn,
Secretary considered that power to REISSUE
United States notes up to S300,000,000 wa
plainly given by the revised statutes. The
Secretary undertook to show that all tina
was needed was for the government to taxi
care of the $3O000O,O0O legal tenders anc
the banks TO take national bank currency
aud he proceeded TO show that both coul,
do it, Mr.. Ewing pressed him closely as {,
the effect of the presentation of S50,0O0,0O
legal tenders for redemption, but the Secre
tary held that the presentation of so larg
an amount was unlikely. The Secretar
thought paper circulation of s6O0,000,0O
not too large The conference adjoune
till Thursday.