The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-21

sumption, in that the interest on these bonds 70
turned would not be a constant drain upon the
country
Secretary SHxRMAS-Undoubtedly
Senator JoxEs--would the TACT tnat they come back
enable US to mainian resumption much easier?
THE FABIAN POLICY ADVISED
Secretary SHERMAS-UndoubIedIy. The fact that we
paid $4l 600 900 OF debt 10 foreign countries
favorable There Is another point IN this connection
IL seems that IL is not necessary 10 Determine
this question now; because sufficient time
has not elapsed TO enable us to determine
tho eject OF the Silver bill, and you
had better let things run along and see
It's effect II may be that It's effect WI" be such that
come without effort. The passage OF this bill can
have no effect until January next and it may be THAT
before that all will agree that It ought not to be
repealed As you nave this measure IN the Senate
you can control u by majority vote OF the senate at
any time. Why not let II stay here
Senator VOORHEES, DID l understand you TO say
that YOU would undertake TO maintain resumption
w,thsninety millions OF coin rcserve2
Secretary SHERMAS-No, sir would undertake to
resume upon the power afforded oy the present law
by going and doing what dia last sumner mel.
Senator VooRHEEs-How much surplus oid you say
you mad on handY
Secretary sHERMAx-l have now ST.. 100000
Senator VooRHEEs-rhen you say that you would
be willing to undertake. resumption under the existing
laws by the LIST OF next January Now, with the aid
OF The silver bill and the what smount Of coin
dertake resumption at that timo!
Secretary SnERMAN-l would accnmaiate ABOUT
s 900 900 per month OF both metals from tho LIST OF
April TO the Isl OF January, which would be
s45 ooo ooo and il TINS market is favorable tutnk
by not accommodating in January. February amt March
Of the present year. l think l could IN this way
accumulate my or sixty millions; wou,d civ. 20,
100000. 900?
Secretary sHERnAy-No, not so much; nor do
think It necessary to have so much.
senator JoyEs-And docs that look to elimin atna
the legal tender junction on the LIST OF January nextf
secretary SHERMAN--NO, | think not, str. am IN
favor OF MAINTAINING the legal tender currency, but
that is IN controversy.
Senator KERxAN-You thought you could practically
Al anil IN
Secretary SHERMAN Il have no doubt OF my power
to reissue up 10 $500, o0o, 600 OF legal tenders.
Senator JONES' nave an idea That that would make
Senator vooRnxxs-Have you spoken Of the capacity
Of the present conageY
Secretary SnERMAN-No, SIR
Senator FKanY-rhen, on the question Of resump
tion your view that wn on nana ano
$40 600 OOO-whoh would be $3.50, 900. 00O-you would
be wiling commence the resumption OF The pres
ent volume OF the currency, both national and bank?
Secretary SHERMAN-Oh, yes; the banks must looi
out tor themselves.
Senator MoRRILL-l will now ask you this ques
ton How Can the policy OF resumption BIO aided
Secretary surRMAx-I am very willing to answer
that question, although think II Is Legislative
question. / think you can aid resumption very
much II you will allow me to receive United
Senate has already expressed a Willingness
TO do; ana II the House would concur with them-
could sell four per ccnt bonds tor currency and then
reissue the currency the purchase Of per cent
bonds--it would be an aid To resumption
ceeds OF the sale OF these bonds?
secretary SHERMAN--l would use them In the pur-
chase OF outstanding bonds. All would have to do
would be to pay the difference between the greenbacks
and gold but that would only be paying one
premium have the right to call tho bonds and
could use the currency their payment by giving
$lOi Tor the bonds In currency-the difference be-
tween currency and gold at the present TINA
Senator BAYARD-You can sell your tour per cent
bonds at par IN currency, and you can then use the
currency 10 redeem the higher rate b0uds?
Senator JoSEs-How would thar aid resumption?
aIanutt
that is no made against the legal tender note pay
ment OF bonds The bond issued would be coin
NOTES IN PAYxKsr OF DUTIES
A large number of questions wcro asked by several
members OF the committee, aud the Secretary IN the
course OF mis- answers said he would recommend one
thing, viz :-On the LIST ot October next he would
United states notes in payment Tor duties aud
yet provide for the payment Of interest GU bonds in
coin. In other words, he would assume the
1st OF October next that our notes were good
as gold aud silver and would receive them as SUCH
II YOU gen mcn SAID he will feel your way clear
allow OF my receiving United States notes IN pay.
mcnt Of bonds and val make !. clear thar woat be
come In after Jan uary next and II you think under
the circu mstances. wocd 10 strong enough 10 TO-
ceive these the LIST Of October, should b
willing to guarantee the resumption. think Tor VI
to 30 backward over all THIS long, weary agony ant
struggle toward resumption would be sign
national weakness and do tho nation great harm, d
our credit harm ana Dr'ng injury upon US all
The CuArnMAS-what eject would the repeal o.
the Resumption act have upon the relations OF tht
currency, legal tenders anu our con-gold and sill
veri Would repeal Of tho Resumption act cause
q tall OF paper below gold anu siiverf
secretary SHERMAN-I have no doubt OF that
think repeal Of the Resumption act would at once
cause u widening between coin ana paper money dc.
large would nave in the ultimate redemption OF paper
but do want TO enter upon this delicate ground.
Among other questions asked was the following by
Senator Ferry You with $l40 000 900 gold
reserve you woula be willing to hold $500 OOO 900 as
part OF the currency and meet resumption ON that
basis Now, desire TO ask II, WITH The contraction
going on, 1t would be any obstacle 70 resump
ton, even II tho outstanding circulation should b
$500 OOO 900 on tho LIST OF January nextY
Secretary SHERMAN-l think the $20, DOC, 900 would
be provided for by the increase OF bank notes.
Senator FERRY-Wthout any further direct con.
traction than under the present Resumption actP
Secretary SHEaMAN-rhe present Resumption act
would be suilcienL would not by myself provids
for ana direct contraction Of the currency. except
what is done under no act.
PRACTICAL EXPANSION
The CHAIRMAN--Don'l you belove there will an
pansion upon US naturally or by the action OF
The Treasury Department. on the 1st OF January?
Will there not bs more money ~ actual circulation
after that period2
Secretary sHERMAS-I think and hope so.
Senator FEnRy-Would not that produce a healthier
condition?
Secretary suERMAS-Yes, sir.
Senator BAyARD-What would be the effect, In your
opinion Of declaration that S3U 600 QUO OF Treasury
notes might be ressuec, as u minimum and as max
imuIn, 10 be supported by a Retention by law OF
500 GOO, 900 OF gold in tho Treasury?
Secretary SHERMAN-That would be very bene1cal,
because think The about that $500 900 900 would
be- overcome.
thoty reissue the legal tender should be ex.
pressly gwen by awf
Secretary SHEnMAS--I think that authority to
issue uuqucstioned and undouoed would take away
the Tears oil all classes Of people. FIRST, those
in Iavor OF lua'tlcn. VINO 40 not want
tho erccnback destroyed; tnen In too East
States, where they think We ought
70 retire the aad issue bank notes instead
and beiievc that are bound under existing laws to
pay the whole OF the $500, 900. 000 add that
not prepared to do.
Senator ALLIsoN--In other words you think we
conle tn M I'M n v m m.
out the power to reissueY
Secretary SnkRMAN--l do not think VIC can.