Daily globe., 1879-04-11
SHERMAN'S POLICY.

-Four Per Cent. Loans-The Redemption
of the 1O-4Os.
New York Special to Chicago Tribune.
Secretary Sherman arrived in this city
this evening. 1t is suspected in political
circles that his visit has reference to affairs
in the custom house, but on this subject he
was reticent. In conversation with the
Tribune reporter on the subject of the lat
est loan to refund 500 bonds of 1865 the
secretary said sBelmont and the Roths-
childs have nothing to do with the present
loan. understand they claim l am bound
to hold ten millions of the per cent bonds
for them, in order to allow them their five
millions month for the next two months.
They have made no formal claim of the
kind, and all that know of such demand is
from rumors. My contract with the London
syndicate was very plain. l took good care
to put it in such form that there conld be no
misconstruction. The syndicate was to have
the option of bonds to the extent of $5,OO0,-
600 month until June next, or until all the
5-2O bonds were covered. My circular of
the 4th of March expressly states this, and,
in addition to sending copy of it to Mr..
Belmont and the Rothschilds, addressed
them private letters to the
same effect. They had plenty of
| time to subscribe for the additional $1O O,O00,-
| 900, had they so seen fit. They did not do
it, and the people got ahead of them. They
have not the least right to complain
Gin stopping the sale of 4 per cents, do
you intend to retire them from the market
altogether"
"By no means. have simply Withdrawn
the bonds for time. AS soon as the market
settles, shall offer the per cents to refund
the 1910 bonds of 1864 but shall advance
the rates and reduce the commissions.
can't quite see my way clear to this at pres
ent. shall not see my way clear until Con
gress shortens the time of the call. In my
last annual report called attention to this
The House passed bill in accordance with
my views, but the Senate did not find time
to take it up, and, as there seems to be nc
disposition to attend to new business during
this extra session, I suppose I shall
have to wait until next winter
before this much needed law can be passed
Meanwhile am blamed for leaving money
in my favorite banks have no favoritt
banks, and it is not to my interest to leav,
money in any banks, but, under the present
provisions of the funding act, with the nine
ty-day call, the banks which deal in govern
ment securities are bound to do 80 to tht
pecuniary detrilnent of the government.
is impossible for me to sell 4 per cents. abov
par. Anybody can subscribe for certificate
and exchange them for per cents. at par
The result is that could not, if I would
raise these bonds above their par value. 1
great deal of fault is found with me becaus
I do not proceed to refund the skies of 1873
, in per cents. a little reflection will sho,
how unjust this is. The SKIES of 1881 con-
msnd in open market 1O5. In orde
to refund them in per cents,
must 60 into the market and bu
: them. No secretary of the treasur!
with any respect for his reputation or an
t desire to conduct the finances of the countr
f honestly. would attempt such thing, unles
}, he had it in his power to control the marke
which have not. When have funded th
1O-4Os, my power, so far as the per cent
> go, will end, according to the terms of th
act of Congress authorizing their issu,
Then suppose there will be the same strus
: gle over again that was made over tt
! 5-2Os."
> "Do you think, Mr.. Sherman, that, in
: young and growing country like this, it
: possible to establish rate of interest at
> per cent. and keep our bonds up to par?"
"Oh," said the secretary, ''that is me
matter of speculation. I believe this COVER
u ment can safely establish per cent as ii
. maximum rate of interest. I should fe
J. perfectly safe in funding our entire debt
u that if authorized to do so.