The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1878-03-22
NATIONAL FINANCES.
SECRETARY SHERMAN'S STATEMENT
TO THE FINANCE COMMITTEE.
The Declared Policy Of II Q Country.
EFFECT OF THE silver BILL ON
RESUMPTION.

WASHINGTON, March 20.-Secreta,y Sher-
man in his statement to the Committee on
Finance yesterday, said: think the resump-
ion act ought not to be repealed; that it was
of public policy, commenced with
he act of February, 1862, repeated by Con-
yress several times notably in 1866, and nota-
bly, again ia 1869, aud again by the passage of
she resumption act-that we would as soon as
practicable, redeem any United States notes
which were presented for redemption in gold
and silver coin; that this is the declared public
policy OF this country and it ought to be ad-
hered to, and now am fully convinced that We
are able to do what we have so often promised
10 do and ought to do. Besides this, several
have. by their legislation indicated purpose
to conform their laws to ours.
Senator Bayard-Which states besides New
York?
Secretary Shermau-WeIl, Massachusetts to
some limited extent, but don't know how far;
and many corporations and many individuals
have made their contracts upon the ass of r.
sumption in 1879. The whole country seems to
have settled down to the conviction that
WE CAN RESUME
aud that business has adapted itself and con-
tracts have been made with that view. So far
as any suffering from resumption is con-
csrned, we have already suffered, and now to
go backwards would be only to invite suffering
again. 1t strikes me, therefore, that it IS bet
ter to go ahead, aud that to retrace the policy
of resumption now would separate the metals
from our currency, aud we would have to 90
through the same trouble again. 1t would be
an evidence OF national weakness. The strug.
gle between metallic money as the basis of pa
per monsy and irredeemable paper must be
made some time, and 1 think we had better
complete it now. The best evidence that we
can be able to resume on the 1st of January
next is the progress which has already been
made When the the resumption act was
passed, the premium on gold was about 101 per
cent. Since that time it has been reduced to a
nominal rate; it is now little over l. Since
that time we have accumulated, in the prepara-
tion for resumption, large sum of gold. The
amount of gold and silver coin in the Treasury
the 18th ut the date OF the last debt statement
was as follows: Gold coin, Sill, Isl, ,455 50; gold
bullion, $685., 800 21-total, S125, 1888, ,755 SO;
less amount to the credil of dsborsiog officers
and outstanding checks, S6,1S9,926 60; gold
actually outstanding, $44, ,49S 500;
called bonds aud interest due and unpaid /,
81 ,909, ,705 21 Total $62, 416. 509.10. Available
gold coin and bullion. S62, ,672, 246 S3 available
silver coin (fractioua), S5,972. S95 40; available
silver bullion, $3,13O7l8 81. Total available
gold aud silver, $7l,775, ,86O.56 OF the items
that are counted hers aud deducted from gold
about
TWENTY MILLION DOLLARS ARE PRACTICALLY
AVAILABLE
for resumption because, although the out.
standing drafts and called bonds and interest
due are unpaid, the amount actually in the
Treasury is generally ABOUT the same. The
amount of gold and silver coin and bullion
available for resumption in q business sense Is
about S9O,OOO,6OO but the actual gold and silver
bullion coin in the Treasury over aud above all
demand liabilities, is ST., ,775, ,860.56.
Senator Jones-C0uld the amount of subsid-
iary coin on hand be counted as in any way
assisting resumption?
Secretary Sherman-I think SO, because it is
tional currency, and can be paid out for cur
rent debts.
Senator Jones-I thought you could only ex.
change it for fractional currency!
Secretary Sherman-Pfobably there Is silver
coin enough on hand to redeem all the balance
OF the fractional currency. Now in regard to
another point. We have, in the process of
preparation for resumption, reduced the volume
of United States notes from $3S2, ,00O, 900, at the
time OF the passage of the resumption act, to
S348, $3.50 Again, the amount of outs,aud-
ing bank notes bas been reduced from $685.
the amount of bank notes of banks in existence
not in process of liquidation was $299 240,-
475, the difference between these two sums
being notes of banks in process of liquidation
Although the notes are in circulation, yet an
equal amount of greenbacks are in the Treas.
ury as special deposit to redeem them.
STATEMENT
was here produced, showing by months the
issue of silver coin and the reduction of frac-
1nAo fhn nf f<,e A
to Feb. Is, 1878; the amount of fractional cur
rency redeemed being S24 31S 039, and the
total silver payments, $38, ,479 .30S. The total
amount of fractional notes outstanding to the
10th inst. was S17, ,109.715. The average
monthly reduction of the outstanding fractional
currency, estimated upon the basis Of the re-
demption of the past four months is $290, 900.
To repeat the general result of our prepara-
tiOns for resumption we have already prac-
tically abolished the premium on gold. We
have paid of, practically, the fractional cur
rency, and now we have very remarkable
circumstance in our favor. The balance of
trade is iu our favor to the amount of $780,
600, 900 year, bringing silver and gold and
bonds back to Us. In the last three years the
balaoce of trade in our favor is $4l4, ,034 $685.
We have to get both gold and silver from Eng.
land, bat We must do it, as Liocola said, ''un-
natural current of trade. To attempt to bring
by any artificial movement large sums to this
country wonld be TO create ALARM All last
summer and fall the accumulation was from
five TO eight million dollars each month. Some
OF that came from our own mines, and some OF
1t from abroad; but we accumulated it without
any poss Bile injury to anybody. Now, in gen.
eral answer TO your question, express my
opinion officially and personally that. for the
reasons have given, we ca n resume on the 1st
OF January next, under the basis of the exist
ing law.
THE EFFECT OF THE SILVER BILL.
The Chairmaa-Wbat effect has the silver
bill had or Is likely to have on resumption?
Secretary Sherman-I do not want to tread
on delicate ground 10 answering that question.
Mr.. Chairman, shall have to confess that
have been mistaken myself. Now, as to the
silver bill. have watched its operation very
closely. 1 think the silver bill has had some
adverse effects, and it has had some favorable
effects on the question of resumption. Perhaps
the best way for me to proceed would be to
state the adverse effects first. It has undoubt.
edly stopped refunding operations. Spce the
agitation of the silver question I have not been
able largely to sell bonds, although I have
made every effort to do so.
Senator Jones-At what date were the last
bonds sold?
Sscresary Sherman-we are selling bonds all
the time.
Senator Jones-I mean the refunding of the
bonds into 4 per cents.
. -crotary O06rman-in0 l0tn OF OctOOer was
the time when the last of the popular loan was
paid for. aud We had then call ready to issue
$10,000,000, and the associates, as they had q
right to do, withdrew the CALL The sales from
the last of September. 1877, were about $780,
000,0 ,000 We sold 5000 0O0,0O0 of A per CO ITS,
aud then we sold $75.OOO,OOO of 4 per cent.
bonds.
Senator Allison-About year and eleven
months?
Secretary Sherman-Since October last we
have sold 81, 900. 900, and perhaps now the sales
have gone up to between S4.000000 and
S5 600, 900 of per cent. bonds. Now, another
adverse effect the silver bill has had is to
STOP THE ACCUMULATION OF COIN.
Since January l we have accumulated nc
coin except for coin certificates except the bal
ance of revenue over expenditures. The rev.
enues in coin being more than enough to pay
the interest of the dept and coin liabilities. We
accumulated some coin. Another effect that
the silver bill has had is to cause the return Of
our bonds from Europe. Al hough the move.
ment OF our boLds in this direction has been
pretty steady for more than year, it is latterly
largely increased. How much am not pre-
pared to say. On the other hand will give
the favnrahla effacta Tn tho frat ylaca tho