Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-08-20


lative to the treasury operations that the
people have long desired to be possessed of.
He is reported to have said that the amount
of outstanding six per cent. called bonds is
about forty-seven millions of dollars, and
that in all probability these will be received
and redeemed through the New York clear.
ing house association before the LIST of Octo-
Der. We infer from his subsequent remarks
that these bonds are held for the most part
in Europe, which may account for the delay
in sending them forward for redemption.
As is generally known the interest on these
bonds ceased on the LIST of July last-on
some of them a month earlier-and conse-
quently the government will save in interest
on them the matter of three quarters of a
million dollars, which may be reckoned as a
partial offset for the four millions of double
interest paid under Mr.. Sherman's exceed
ingly wise policy of refunding the debt.
We are further informed that after the re-
funding operations are closed out treas
Try payments will be equal to receipts and
40 more, except the small balance of the
fractional currency fund which Congress re-
quired to be paid out for arrears of pen
sions. If it was not for the fact that SINH
lar promises have been made before, and
have been uniformly violated, we might con-
graduate the country on the fact. but in the
light of past experience we prefer to wait
developments.
Mr.. Sherman further hazards the opinion
that but little gold will be received in this
country in payment for the produce export
ed, but that the payments will be made prin-
cipally in United States bonds. He is right
only as far as the bonds-upon which interest
has ceased. Those who hold our bonds
abroad are not engaged in commercial pur-
suits. They have purchased the bonds as
an investment, and will continue to hold
them and draw the interest upon
them in the future as they have
done in the past. But few
of them have any occasion to sell. In fact
they draw larger rate of interest on them
than they could hope to receive on any class
of reliable European securities. They are
for the most part capitalists of large means
who do not need to sell, and will not sell
until the opportunity offers of investment
at large profit. This opportunity is not
likely to present itself for many years if
ever, For instead of giving evidences of in
creasing, the rate of interest promises to
fall still lower.
We are glad to be informed that under
the stimulus of an increased demand from
China, the price of silver has increased, and
that that country will probably consume the
entire product of the Pacific coast. The
anti-silver or mono-metal advocates have
clamored loudly in the past few years of
the danger that silver would become drug
in our market. They have grcaned audibly
at Zach report of the discovery of new
mine, and have predicted all sorts of calami-
ties as result of the over-production of
metal that has become part of
our currency system. Among these
mourners none has been more
conspicuous than Sherman. The
result has proved that he was mistaken, and
it's greatly to his credit that he has the BRAY
cry to make halfway confession. There is
not now, nor has there ever been, the slight
est danger of over-production. Silver enters
largely into our manufactures and is largely
exported not only to Asia but to Europe,
where the supply is never equal to the de-
mand. There is near prospect that all the
principal nations of Europe will remonetize
silver coin, and this will at once cause a
demand for bullion that will tax the capacity
of our mines to the utmost. Though the
United States is the largest producer of silver
in the world, there will never be any diff
Guilty in fnding market for it. There will
be fluctuations in it's value as there is in the
price of gold, but there will never come q
time when it will be a drug on the market.