The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-08-28
SHERMAN AT CINCINNATI.

The Secretary Delivers n Plain Talk TO
the ClneInnati MerchRnts-The Exten.
sion OF the Time OF the New York
hanks that Purchased Fourier Cents
--RefutAtIon ofa Democratic Lie Gotten
Up for Political Capital.
CiNcIXNArI, O., August 27.-Secretary
Sherman to-day visited the Merchants
Exchange, and, after being introduced by
Vice President Cunningham, spoke as fol.
lows:
GENTLENRN:-I am deeply gratiAetl 10
you for your kind reception in this busy
mart Of commerce, and I know there Is but
little time in which to exchange words;
but ], however, wish 10 make purely
business statement relating to q matter In
which YOU, in common with other bust.
ness men, are interested. Complaint has
been made OF the recent order OF the
Treasury Department extending somewhat
the time for the withdrawal Of the Nation
al Bank deposits Of tho proceeds Of the
sale Of 4.per cent bonds. did this after o
full examination OF the matter, and am
firmly oi the opinion that had not done
so, serious injury 10 business would have
been the result. The refunding operations
Of the Government have been uniformly
so conducted as to interfere as little as pos
sble with the money market, or
with private business. The object
has been to make the exchange
OF per cent for 5, and per cent bonds,
either directly by credit or honor. The
1 per cent bonds would not be called for
until the next term. 1t was the inten-
ton ot the Treasury to close the loan as
soon as practicable, in order that the 4
per cent bonds might be presented by the
lst Of September at all events. Over $50.
100000 called bonds were paid for, but
the called bonds had not been presented
on the S0th OF September. The amount
OF called bonds outstanding was about
Sos, ,000, 900, but only about $3s, ,000, 900 re.
mained on deposit with the National Bank
repositories. Over Sl6,000,000 in excess
Of the sum wanted to meet the payment
Of called bonds had been withdrawn into
the Treasury from the market in excess OF
the sum wanted to meet the payment OF
called bonds, with q view to closing the
loan at the time stated. General COM
plant was made that the operation was
injuriously affecting business, was ad.
vancing the rate OF interest, and was un-
necessarily draining legal tenders from
the market To me was attributed this
condition Of affairs. Upon the advice Of
the Treasurer at Washington and the AS
sistant Treasurer at New York, issued
this order:
TREAs'Y DEPT, August l5, 1870.
Hon. Jas. GilflldR, TreaSr D. S.:
SIR: With view to closing as soon as
practicable the accounts Of the Depart
ment with repositories banks on loan ac-
count, without unnecessary disturbance OF
the money market, or the withdrawal Of
legal tenders from such repositories in
payment OF called bonds to be credited
when passed through the loan division,
you will require from such repositories
sufficient money, in addition to the called
bonds credited, to meet all demands for
the payment OF called bonds and loans to
insure the withdrawal OF all deposits on
loan account on or before the LIST OF 0cto-
Der next. The letter OF the Department
Of March Goth is modified accordingly.
Very respectfully,
[Signed1 JoIIN SHERMAN, Sc'y.
The statement that this was done 10 re-
lieve the banks or TO help any one, or that
/ had otherwise interested any bank, IL
simply false, and made without foundation
or excuse, and gotten up as political sen.
sation. The reason why the unsettled ac-
counts are with the First National Bank
and the National Bank OF Commerce, New
York, is because the Bank OF Commerce
made the S40,0Q0,000 subscription closing
the 5.20s, and the First National Bank
made the subscription OF Sl2l, 900, 900, clos.
ing the l040s, and these being the last
subscriptions are naturally the last drawn
upon. | have received statement Of the
balance on tho evening Of Saturday last,
showing that the amount of outstanding
called bonds unpaid was then S4,S52,
253 81. The amount OF deposits with
the bonds sold, was $$2,047,8lS 81.
For all Of this the Government is Sc.
cured by deposit Of large amount Of
U. S. bonds. Where per cent bonds are
taken as security an additional security Of
per cent is required. About $l0,OOO,0O0
Of these bonds are held by Mr.. Conant,
the q. S. agent in London, and are daily
being paid by permission Of called bonds
in the ordinary couneof business. submit
to you whether on the 18th Of Aug. it would
have been advisable iorme to have Contin-
ued to drain the money market Of the
legal tenders and hoard them in the Treas.
ury to await the presentation Of the called
bonds. Ii this course had been adopted
the clamor would have been louder, l did
exactly right in the order Of the 18th oi
August; and now under it the loan &C
counts are being quietly and rapidly clio.
ed without Sny disturbance in the money
market. If this sentiment will only induce
the holders OF the called bonds to sent
them in for paymentimmediately will bt
greatly rejoiced.