Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1879-09-10

SIBERIAN AGAIN,

SIBERIAN AGAIN.
, He Rises to Explain Certain Of Hi
! Methods.
And Proves conclusivsly thai His labon wsN
i ior Tho PubIlc 0eea
i CINCINNATI, Ohio, August N.-Sec
retary Sherman to-day visited the mer
chants exchange and after being intro
duced by Vice President Cunningham
spoke as follows:
GENTLEMEN: I am deeply grateful to
you for your kind reception in this busy
mart of commerce, and know there il
but little time except for the exchange
of courtesies. !, however, wish to make
q purely business statement relating t.
which you, in common with other
business men, are interested. Com.
plant has been made of a recent
order of the treasury department ex.
tending somewhat the time for the with.
drawal from national bank repositories
of the proceeds of the sale of four
per cent. bonds. / did this
after full examination of
the matter and am firmly of the
opinion that if I had not done 30
serious injury to business would have
been the result. The refunding opera
tions of the government have been uni
formly 80 conducted as to interfere ~
little a. possible with the money market
object has been to make the
exchange of four per cent. bonds for the
five and six per cent. bonds either di-
rectly or by credit through national
bank repositories authorized for that
purpose. With this view notice was
publicly given that the proceeds of the
four per cent. bonds would not be
called for until needed to pay
called bonds, which could only be
paid when presented after the
ninety days notice required by law.
When, however, the refunding opera
tions ceased on the 21st of July, it was
the desire of the treasury department to
close the loan account as soon as rracti-
cable. Believing that the called bonds
would be presented BY the LIST
of September, I directed the
treasurer to draw upon the
depository banks for money a. fast a.
needed to meet the called bonds, and at
all events to close these accounts from
september LIST to the 10Th, and he was
acting on this order when l returned
from the north early in August, and un-
der it over $500, ,OOO, 900 of called bonds
were paid for, but the called bonds had
not been presented, as anticipated. On
the 18th of September the amount of
called bonds outstanding was about
$65, 600, 900, but only about $38, ,00O, 600
remained on deposit with the ma
tional bank depositories. Over $16,.
100000 in excess of the amount
wanted to meet the payment Of
called bonds had been Withdrawn into
the treasury from the market in excess
Of called bonds With &" --7fsx -77fissx 81 aHfosARE
the loan accounts at the time stated.
General complaint was made that
this operation was njurio usly Affect
ing business, was ad .ancing the
rate of interest and was unnecessarily
draining legal tenders from the market.
To meet this condition of affairs, upon
the advice of the treasurer at Washing
ton, and the assistant treasurer at New
York issued this order:
TREASURY DEPARTMENT August 18th.
Hon. james GafUan, Treasurer Of the United
s1R:-with q view to closing a. soon ~
practicable the accounts of the department
with depository banks ON the loan account
without unnecessary disturbance OF the
money market ON the withdrawal OF
legal tenders from current business,
you will please receive from such deposi.
tories called bonds, to be credited when
passed through the loan division. You
will receive from such depositories suficient
money in addition to the called bonds cred.
tied to meet all demand for the payment OF
called bonds and 90 ~ to insure the with.
drawal of all deposits ON loan account ON
OF before the first of October next. The
letter of the department Of March 96th II
modified accordingly.
(Signed) JOHN SHHRMAN,
Secretary.
The statements that this was done to
relieve the banks or to help any one, or
that ever had been or was Interested
in any bank are simply false, made
without foundation or excuse, but ~ .
political sensation.
The reason Why the unsettled &C
counts are with the First National bank
and the National Bank of Commerce,
New York, is because the Bank OF
Commerce made the e4O, 600, 900 sub
scription closing the 6-20A and the
First National bank made the
subscription of $12l, ,O0O, 900 clos
ing the lO-4O's, and these being
the last subscriptions are naturally the
last: drawn upon. have received Z
statement of the balances on the even
ing of Saturday last, showing that the
amount of outstanding called bonds un-
paid was then 44S,962, 1851. The
amount of deposits with national
banks, the proceeds OF bond,
of this the government II secured By
deposit Of . larger amount OF United
States bonds. Where four per cent.
bonds are taken % security IN additional
margin of Ave per cent. II required.
About $lO ,OOO, ,OO0of these bonds are held
by Mr.. Conant the United States agent
in London for exchange, and are daily
being paid by the transmi1ion Of called
bonds in the ordinary course OF bud'
ness. None of the outstanding bonds
bear interest. submit to You
whether, on the 18th of August, Il
would have been advisable fOz
me 10 have continued to drain the money
market of legal tenders and hoard them
In the treasury to await the presentation
Of called bonds. II this course had BEEN
adopted the clamor would have been
much louder and much moro just.
did exactly right In the order
of the 18th Of August and
stand BY It, and now under II the loan
accounts are being quietly and rapidly
closed without any disturbance In the
money market. II this claua0r would
|only induce the holders of called boodi
TO send them IN for paymsnt would p
lgrsatly Bsjoicsd.
xildeoaso Adxottnees.