Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-08-28
Secretary Sherman in Ohio.
HIS SPEECH AT OBSERVATION-DISCLOSURES HIS RE-
CENT BANK ORDER.

CENT BANK ORDEh.
Secretary Sherman visited the Merchants
Exchange, In Cincinnati, yesterday, and, after
being introduced by Vice President Cunning
ham, made speech, In which he said: Com
l.ad plant has been made Of the recent OF the
time for withdrawal from national bank depO5-
itories OF the proceeds OF the sale OF per cent.
bonds. did this after a full examination of
the matter, and am firmly OF the opinion that
If had not done so serious injury to business
would have been the result. The refunding
operations OF the government have been uni
fOfm]y conducted so as TO interfere as little a
possible With the money market or With private
business. The object has been to make the ex-
change of per cent. bonds either directly
tories authorized for that purpose. With
this view notice was publicly given that the
proceeds OF the per cent. bonds would no
bonds, which could only be paid when
presented after the ninety days notice required
by law. When, however, the refunding opera
desire OF the Treasury department to close the
loan accounts as soon as practicable. Believing
that the called bonds would be presented by the
1st of september, directed the Treasurer to
draw upon the depository banks for the money
as fast as needed to meet the called bonds, and
at all events to close these accounts from Sep
tember 1st to 18th, and he was acting on these
orders when ! returned from the north early
in August, and under it over $500, 900 called
bonds were paid for; but the called bonds had
not been presented as anticipated. On the 18th
Vi
standing was about Sos 50oO,ooO, but only about
sss,O0O,0oO remained on deposit with the
national bank repositories over sl6,00o0oo in
excess OF the sum wanted to meet the pay
the Treasury from market with view to
closing the loan accounts. At the time stated
the general complaint was made that this
was advancing the rate OF interest, and was
necessarily draining legal tenders from the
market. TO meet this condition OF affairs. upon
the the advice Of the treasurer at Washington and
the order of August 49," The Secretary then
read the order to Treasurer Gilillan to receive
from repositories called bonds, to be credited
when passed through the loan division. He
continued: ''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 and made without foundation
or excuse, but as a political sensation. The
reason why the unsettled accounts are with
the First National bank and the National Bank
OF Commerce made the s4O,O000OO subscription
closing the 5-20's, and the First National
bank made the subscription of S121, 1900
aqe nau sheSe 9s st x
upon. / have received q statement OF
the balances on the evening Of Saturday last,
showing that the amount OF outstanding called
bonds unpaid was then s4s,952, ,253.41. The
amount OF deposits with national banks, the
proceeds OF bonds sold, was S32, ,613.51. For
a1l OF this the government Is secured by de-
post OF large amount OF U. s. DondS. Where
4per cent. bonds are taken as security, an addi-
t1onal margin Of per cent. is required. About
sl0,OC0,00O OF these bonds are held by Mr.. Co.
nant, the Z. s. agent In London. for exchange,
and are daily being paid by the transmission of
called bonds in the ordinary course OF business
None OF the outstanding bonds bear interest.
did exactly right In the order of the 18th OF Au-
gust, and stand by 1t, and now under it the loan
accounts are being quietly and rapidly closed
without any disturbance in the money market
II this clamor will only induce the holders OF the
called bonds to send them In for payment
would be greatly reJoced."