The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-03-28

within my term. ,,n.
Senator Ferry--You spoke Of the S44'
100000 of gold certificates; is that about
the annual outstanding averager
Secretary Sherman-No, 1t is more
than the average.
Senator Ferry-What is the average
for ten years baCkp
Secretary Sherman-Thirty TO iofty
millions.
The Chairman--It is thirty.four OF
thirty five millions, =,
Secr'y Sherman-The amount OF gold
now on deposit is very large, for the rea
sons have given. The amount OF gold
and silver coin and bullion available fol
resumption in a business sense, IS abou,
ninety millions; but the actual gold ano
silver bullion and coin in the Treasury
over and above all demand liabilities IL
$7l .775 $50.
Senator Jones-Could the amount o.
subsidiary coin, which you speak OF az
being on hand, be counted as IN any way
assisting resumption2
Secretary Sherman-I think so, be-
cause it is exchanged for United States
notes or fractional currency, and can Dt
paid out for current debts. =,
Senator Jones-I thought you coulc
only exchange it for fractional currency
Secretary Sherman-Probably there
is enough silver on hand to redeem al
the balance of the fractional currency,
The Chairman-That is, the Secretary
thinks some fractional currency has beer
lostP
Secretary Sherman-Now in regard tc
another point pertinent to your question
We have in the process OF preparation
for resumption reduced the volume OF
United States notes. The precise figures
are familiar to you. The amount was
1882 600 900 at the time of the passage oi
the Resumption Act, and the amount is
now $34S .6l8.024. Again, the amount ol
outstanding bank notes has been reduc'
ed. On Dec. 81, 1875, the amount was
$346. 479 756; on Dec. 81, ", SS2l,672 900
and on Feb. 2S '7S, the amount of bank
notes outstanding was 1921 9S9 99l; but
the amount of bank notes of banks in
existence, and not in process OF liquida.
ton, was S299540,475; the difference be.
tween these two sums being the notes OF
banks in process ofliquidation. Although
the notes are in circulation yet, an equal
amount of greenbaCks is in the Treasury
as a special deposit to redeem them.
Senator Kernan-They make part OF
the $34 100000 of legal tender notes?
Secretary Sherman-Yes, as many OF
the legal-tender notes are held in the
Treasury as there are bank notes in pro-
cess of redemption.
Senator Ferry-Then, really, there
should be but 1929 OOO,0 900 National Bank
notes outstanding?
Secretary Sherman If you count the
whole greenbacks as outstanding, there
would be S220000000 of National Bank
notes. Then it must be remembered
that the United States notes have been
in circulation since 1862, and bank notes
since 1864, and that large sums are lost
or destroyed, This diminishes to some
extent the amount outstanding-how
much / don't know, you can judge as
well as l.
A statement was here produced, show.
ing by months, the issue of silver coin,
and the reduction of fractional currency
under the act of April 10, '76, from April
20, 1876, to Feb. 2S, 1878, the amount of
fractional currency redeemed being S24.
3lS O39, and the total silver payments
$38 40 30S. The total amount of frac.
tional notes outstanding on the 10Th inst
was $lSl097l5; the average monthly re-
duction of fractional currency outstand.
ing, estimated upon the basis of redemp-
tions of the past four months,is $3.50 OOO.
Senator Jones-How many millions,
then, of legal tenders do you estimate as
being in circulation now, outside of what
you hold to redeem the notes Of banks
in process of liquidation?
Secretary Snerman-I should think
$320O0O 900. Deducting those that have
been lost or destroyed, and those held
for outstanding bank notes, make the ag-
gregate of hank notes and greenbaCks
about SG43 100000. To repeat, the gem
eral result of our preparations for re-
demption, we have already practically
abolished the premium on gold; we have
reduced the amount of United States
notes and the amount of National Bank
notes outstanding; we have paid off, praC-
tiCally, the fractional currency, aud now
we have a very remarkable circumstance
in our favor: The balance of trade is in
our favor to the amount of Sl6O0OOOO0
year, bringing silver, gold and bonds
back to us In the last three years the
balance of trade in our favor is S4l4 O34.
066. bring you this statement because
| thought you might deem it important
to have the exact figures about the state
of our trade. This table showing details
| leave with you.
TO number of questions asked, Sec
retary Sherman replied:
We have got both gold and silver from
England, but we must do it, as Lincoln
said, "unbeknownst" to them, 1t must
come by the natural currents of trade
To attempt to bring by any artificial
means a large sum of gold to this country
would be to cause alarm. All last sum.
mer the accumulation was from five to
eight millions a month. Some came
from our own mines, and some from
distance; but we accumulated it without
any possible injury to anybody. Now,
in general answer to your questions, |
do express my opinion, officially and
Senator Ferry-Then, if you embrace
the accumulation in the banks and the
Treasury, it has been progressing gradu-
ally at the rate of about $5,000.0O0 per
month?
Secretary Sherman-Yes, sir; more
than that. In New York alone the aC.
cumulatioD is $50O00O0 per month; but
in Boston and Philadelphia it is also go.
ing on.
Senator Ferry-What in your judg-
ment is the accumulation in both the
banks and the Treasury per month, in
amount?
Secretary Sherman-I should think it
to be between S5,000000 and $10,0O0,0OO
per month. In giving an answer to Mr..
Morril's question as to the general effect
of the Silver bill, would not like to give
a positive opinion. l don't think, TAX
ing it altogether, it is an obstacle in the
way of resumption. 1t has operated in
some respects adversely and in some re-
spects favorably; but on the whole l
don't think it should discourage US from
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