New-York tribune., 1879-08-29
EACTS AROrT REFENDING.

The success of resumption and refunding
has given the Republican party vast adj
vantage. 1t is not strange that the Democrats
are anxious to break the force of these
achievements; the strange thing is that some
Republican malignauts are disposed, for phi
yate reasons, to start or circulate unjust
slanders as to the course Of the Treasury.
The story that some especial fayortism
has been shown by Mr.. Sherman to the
bankers of the latest refunding Syndicate
in extending their time for payment OF
about S40,O0O,OOO due from them to the
Treasury, was briefly but satisfactorily noticed
by Mr. Sherman in his remarks before the
Merchants Exchange at Cincinnati on We'd
nesday His public declaration suiiices to
prove the entire falsity of the stories which
have been circulated for that purpose its
mention Of facts officially reported from Wash
ingtOn was enough. But there ought to be no
possibility of public misunderstanding as to
matter so important in respect to the tinan-
cIal future, and so closely affecting the honor
Of the United States The facts are as follows:
I. Certain banks subscribed for the four per
cent loan on the faith of the published prom
jse of the Secretary Of the Treasury that, in
order to prevent disturbance Of the money
market by large contraction of legal-tenders,
and to facilitate simple exchange of bonds
for bonds, the money subscribed for the four
per cents should remain on deposit in those
banks until it should be needed to redeem
called six per cents.
II. Every dollar which the banks promised
to pay under this arrangement, and which
was tins left on deposit with them until the
called bonds should come in, was amply secured.
The banks deposited with the Treasurer
United States bonds for the whole sum due,
with per cent extra where the new four per
cents were left as security, and they have
had at all times, and have now, on deposit
with the Treasurer, bonds much exceeding in
value the entire sum due under their sub
scriptions from them to the Treasury. If any
loss was possible for anybody, the Treasury
could not lose a penny.
III. The banks bought, in this way more
bonds than they could pay for at once in cash,
but not more than they were able abundantly
to secure and hold, under the arrange
ment proposed by the Secretary. But for that
arrangement refunding could have proceeded
but slowly, and more than two millions yearly
has now been saved to the taxpayers III in
IGICSI Oh UIt DuDilC utDt, NIiCu Cpulu HOJ
have been saved had the Secretary required
cash payment in lega-tendeTs for bonds sold,
and actual contraction of the currency for
ninety days before the called bonds matured.
This part of his promise was absolutely es-
sential to the success Of refunding, namely,
that the market should not be drained of cur
rency, but that money should be taken in for
new bonds only as fast as money was paid out
fo1 old bonds redeemed.
". The two banks which made the largest
and latest subscriptions, namely, the Bank of
Commerce and the First National Bank still
have bonds for which they have deposited
ample security, but for which the cash has
not been drawn, because the called six per
cent bonds have not core in for redemption.
All the other banks have exchanged or sold
all the bonds purchase and settled their ac-
counts.
V. Supposing and hoping that the called
bonds would come t,raar@ for redemption
with sufficient rapid. warrant the closing
of all the accounts by September J., the
Secretary directed tine Treasurer to draw
from the banks the money required to pay
for the called bonds by that time. Acting
upon this order the Treasurer drew from the
banks $16,O00.000 more than was actually
needed, as it turned c1t, - pay for the bonds