New-York tribune., 1879-08-28
SEORETARY SHERMAN on FUNDING.
He EXPLAINS THE OPERATIONS.

He EXPLAINS THE OPERATIONS.
WHY rHE TINE WAS EXTENDED RDR THE WITH
DRAwAL OF THE MONEY FROM THE DEPoSIToR-
IRs-A LARGE AMOUNT or CALLED BONDS UN-
REDEEMED.
CrvcnSArI, Aug. 27.-Secre tary Sherman visited
the Merchants Exchange to-day, and after being IN
troduced by Vice-Presldent Cunningham, spoke as
follows:
GBNrLENEN: am deeply grateful to you tor your
kind reception In this busy mart Of commerce, and |
know there IL but little time except for the exchange OF
cOurtesles however, wish to make purely business
statement relating to matter in which y0u In common
with other business men, ore Interested Complaint has
been made 81 tbs recsnt order or the Ireasry Depart
ment extending somewhat the time for the withdrawal
fiug National bank depOsoyes Of the proceeds OF tine
sao OF four per cent bonds dd TINS aIer Tl exanlu
tiuu OF the matter and am hrmy or the opinion baE
had not done serious injury 10 business would have
been tho result Ihc retuhilhS optratohs OF inc GOV
ernEIeut have been uniformly so conducted rs TO inter
fere ttle possible with tho money market or with
private business Ihe object ha' been TO make lho eN
change OF four per cent bonds, or by credit
through National bank deposOres authorized Tor tnat
purpose. Win tIa view, notice Was pu8cy gwen lh1.
the proceeds o the four per cent bonds would NOT be
called tor until needed TO pay called bonds, which could
notice lequired by law When, however tho
Teqndmg 0IeraGRPs ceased ceased on on the the 2lst o
Department to close the loan accounts as
practicable Believing that the called 6ond5 T9Id oe
urer draw upon the depository banks for the money
close these accounts from September to the
18Th and he WAS acting on this order when returned
$500 900 OO0 called bonds were paid for but the led
bonds had not been presented a. anticipated On the
18Th OF August the amount OF called bonds ouisand-
ing was about eGJOOOOOO; but only about SjoOoOCOo
remained deposit with tho National bank deposi;orles
| over Sl6 100000 in excess OF the sum wanted
10 meet the payment or called bonds had been
withdrawn into the Treasury from tie MARKET
the timo stated general compliant made
that this operation EldriOusly Affecting business
drawing legsendsrs from the market. To meet this
condition OF affairs upon Tue advice OF the Treasurer ut
Hnf fUV
issued this order; -
Hon JAMES GuFILLAS Treasure AZ The United Suites
SIR: With view 20 closing Practicable
the accounts OF the Department with depository banks
money market or the withdrawal or lesaitender nom
the CURRENT business you Will please receive from such
when passed through the Loan Division. You will re-
quire from such repositories sufficient money in addition
payment OF the called bonds, AS to insure the with
rawa CT all deposits on loan account or before the
lst October next The letter Or the Department, of
! March 26, Is modified accordingly Very respectfully,
| islguedl JOHS SHERMAN, Secretary.
any or that ever had been or was inter
ested bank. simply false and made without
| any foundation excuse but as political sensation
The why the unsettled accounts are with the
| First National Bank and the National Banb of Com
| made the S40.OOO000 subscription closing the hye-
twentes, ana the First National Bank made the sub
sorpton OF Sl2l.OO0 900 closing tue teuf0res, and
these being tn, last subscriptions arc naturally the last
drawn upon have received S,atcnieh OF me Dal-
amount OF outstanding called bonds unpaid was then
SIS 9j2253 81. The amount OF deposits with National
banks II bonds sold was f329 76l3 81 For
all Of this the Governments secured by OF large
amount United states bonds. Where tour per cent
bonds are taken security, additional margin OF
per Is required. About olOOOOOOO OF these bonds
are held by Mr. COnaut the United states agent IN Lon
don for exchange, and daily beng paid by the
transmission OF called bonds IN the ordinary course of
business None OF the outstanding bonds bear interest
submit to you whether the 18Th OF August II would
have b-eu advisable for me to have continued TO drain
lie money market OF leg4lienders aud hoard them in
the Treasury await the presentation Of the called
bonds Ii his course had been adopted, the clamOr
would have been much louder and much more just.
da exactly right IN the order OF the 13h or August and
stand by 1t; aud now under 1t the loan accounts
being quietly and rapidly closed without any disturb
ance Ia the money market Ii this clamor VIII only IN
duce the holders the called bonds to send them IN for
payment would be- greatly rejoiccd.
Secretary Sherman received with great
thusiasm at the Lincoln Club this evening. He
was at last forced to make speech to the great
crowd in front OF the club house He arraigned the
Democratic party and its Confederate cOmpeers III
strong language tie is booming here as Presi
dental candidate.