Daily globe., 1878-03-21

/ i
we can sell the ~ per cents, and think with
IN month we can sell all we want for per
cent. bonds to carry out the resumption law,
ZOE ZOE would not accumulate more than
hye millions month, ]. and that
largely ialgely - III silver and gold
the bond market in order to maintain resump-
ton. We now have S71 ,O0O, 600 to SOC, 00O-
UOO on hand, and every one can measure how
much more will be necessary to maintain
resum ptlon. If the sale of bonds was
ever SO free, would not accumulate more than
$4,000 600 a mouth of both metals, and all sales
beyond that should be applied for funding the
| SIX per cent. bonds.
| Senator Allison-Do you think that you can
add largely to the stock of coin in this country
| by your process of adding to your reserves
5000 900 per month That is to say, will you
accumulate from other countries or simply
draw into the treasury the accumulation al
ready existing in our own country?
Secretary am glad you mentioned that
point. Although since the first Of January
last we have accumulated no coin in the treas
ury, the amount that we had prior to that ac-
cumulated per month since then has gone into
banks. The banks have already accumulated
more than s5,OG0,C00 gold since the 1st Of
/ January. 5t
Senator Morrill, They have increased their
revenues by the amount Of S5,000000 gold per
month. s-
Secretary-Here is a statement which shows
the aggregate amount Of specie held by the
banks of the United States during the several
/ periods therein mentioned now in the United
States. There have been no statements of ma
/ tional banks since December last, but now
they have in the city Of New York weekly
statements of the clearing house.
This shows the amount at the
9sauary 9Th o. ste tha day yseb tbe amount fanm
was $2l 1884, 100. That has increased in amount
until March 16, 1873, when it reached 1884, $751;
600 a difference of about 1913, 900, 900, which is
just about ST, 100000 per month increase. So
! that thls accumulation Of coin has gone in
1 the banks since it stopped in the treasury.
senetor Ferry-Then if you embrace accu-
mutation in the banks and the treasury, it has
been progressing gradually at the rate of about
5,O0O,OOO per month.
Secretary-Yes, sir; more than that. In New
York alone the accumulation is S5, 600, 900 per
a month. But in Boston and Philadelphia it is
also going on.
Senator Ferry-What, in your Judgment, is
the accumulation in both the banks and treas
ury. per month, in amount?
Secretary should think it to be between
35,OOOO00 and $l0,000,0O0 per month. In Civ
ing an answer to MorrilPs question as to the
general effect of the silver bill l would not
like to give positive opinion. I do not think,
taking it all together, that it is an obstacle in
the way of resumption. 1t has operated in
some respects adversely and in some respects
4 favorably, but on the whole do not think it
should discourage us from resumption OF from
carrying out our general policy.
] Senator Jones-Then in it's effect upon the
return Of a vast amount of bonds you refer
to, would there not be an element of strength
added in favor of resump ption in that the in
Y terest on these bonds returned would not be a
constant drain upon the country.
Secretary Sherman-Un Undoubtedly.
3 Senator Jones-Would the fact that they
come back enable us to maintain resumption
much easier.
Secretary Sherman-Undoubtedly, the fact
that we have paid $414, ,OUO, 600 debt in foreign
countries is favorable. There is another point
in this connection. It seems to me it is not
necessary to determine this question now, be-
cause a sufficient time has not elapsed to
enable US to determine the effect of
the silver bill, and you had better let
things run along and see its effects. 1t may be
that Its effect will be such that all will favor
a resumption, and that resumption will come
( without effort. The passage of this bill will
have no effect until January next, and it may
be that before that time all will agree that it
ought or ought not to be repealed. AS you
have this measure in the Senate, you can con-
troll it by a majority vote of the Senate any
time. Why not let it stay here?
/ Senator Voorhees-Did understand you to
say you would undertake to maintain resump-
tion with $50, ,000,0 600 coin reserve?
Secretary-No sir; I would undertake to
resume upon power offered by the present law,
4 by going on and doing what did last sum
mer.
Senator yoorhees-How much surplus did
\ you say you had on hand?
Secretary-I have now ST ,000 900.
Senator VoOrhees-Then you say that you
would be willing to undertake resumption,
under existing laws by the first of next Jan
uary. Now, with the aid of the silver bill and
coinage, what amount of coin would you expect
to have on hand with which to undertake re-
sumption at that time?
Secretary Sherman-I would accumulate
about $5, 100000 per mouth of both metals
from the LIST of April to the 1st of January
which would be S45, 600, 0OO and if the market
is favorable think would try to make good
the loss that accumulated in January, February
and March of the present year. l think
could in this way accumulate $55, 100000 OF
y $50, 1000, 600.
; Senator Voorhees-That would give you
$l50000,000.
Secretary Sherman-No, not SO much nor dc
I think it is necessary to have so much.
, Senator Jones-And does that look to elimi
mating the legal tender function on the first o1
January?
Secretary sherman-No, think not. 1 an
3 in favor OF maintaining the. legal tender cur
r rency, but that is in controversy.
Senator Kernan-You think that you couli
practically redeem all that would be pre-
: sented?
Secretary Sherman have no doubt of my
tenders.
Senator Jones-I have an idea that would
, make good deal Of difference.
Senator Voorhees-Have you spoken of th,
capacity of the present coinage?
9 Secretary Sherman-No sir.
Senator Ferry-Then, on the question of re
sumption, your view is that with 100000, ,0Ol
l on hand and an accumulation of 800 900. .OO
!. more, or even 50,000,0O0, which would b.
! $l30, 1000, 600, you would be willing to com
nroc1 yofor,
Q and bank ~
0 secretary-Oh yes; the banks must look ou
!, for themselves.
Senator Morrill, will now ask you thi
Q question: How can the policy of resumption
h be aided by Congress?
q Secretary-1 am very willing to answer. al
!: though think it is a legislative question,
L think that you can aid resumption very muc
t if you will allow me to receive United State
;, bonds as the Senate has already expressed
g willingness to do, and if the House would con
:, cur with them. if I could sell per cent. bond
It for currency in the purchase of 6 per cent
: bonds 1t would be an aid to resumption.
b Senator Bayard-What would you do wit
e the proceeds of the sale of these bonds.
|. Secretary-I would use them in the purchas
Q of outstanding bonds. All would have to d
n would be to pay the difference between green
|. backs and gold, but that would only be payiu
y one per cent premium. I have right to cal
n bonds and could use currency in their pay
i ment by giving 1O1 for the bond in currenc,
d the difference between currency and gold a
= the present time. tz.>trs,
J, Senator Bayard-You can sell your per cent
bonds at par in currency, and you can then lie
currency to redeem higher rate bonds.
= Senator Jones-How would that aid resum4
.r ton?
II Secretary Sherman-By repeating the di
'e elimination that is now made against the leg,
tender note in payment of bonds. The bon
| issued would be e coin bond.
y large number Of questions were asked b
9, several members, and the secretary, in tt
i of