The daily gazette., 1881-02-21

April / and April 4, 1878, soon after
/ the passage of the silver bill and soon
after he had sold $50, 900, 900 of the
Al per cent. bonds. Since the time
that awful silver bill crippled the
Secretary of the Treasury and made
him lame and halt and blind, he has
been enabled to sell over 500, 900, 600
in 4 per cents at par, and to-day those
bonds command premium of IL per
cent. in the market, Notwithstanding
the terribly damaging, demoralizng
influence of that obnoxious silver
bill, as the Secretary of the Treasury
and certain parties are disposed to
term it.
II read further from page 10 Of
this interview
Secretary Sherman
Says in answer to General Ewing
Secretary SHERMAN. have written
propositions from these gentlemen, and
I, ON Mr.. Coe himself
President of the National Bankers
Association
that If Will give them AZ per cent.
bonds instead OF four per cents, they Will
guarantee resumption.
Yes, and to-day if the Secretary will
give them 3 per cent. bonds they will
guarantee the sale of them no doubt
of it. Then they were trying to get
the Secretary to sell A per sent,
and they were throwing every possible
obstacle in the way of resumption.
l really cannot comprehend the inpor-
lance of this amendment offered by the
Senator from New Hampshire. 1t must
be my stupidity, of course, for he sees
1t in very different light, and my friend
from Delaware does, imagine, from
what he has said. In the first place If
this fifth section be adopted just as il
came from the House, it affects no bank
whose circulation is secured by 4 or Al
per cent. bonds. 1t can only affect those ,
banks whose circulation is secured by 5
and 3 per cent. bonds.
Mr.. Bayard. They hold $212, 100000. |
MIR. Thurman. Let them hold as |
many as they please. The argument is |
that when those bonds are taken up the |
banks owning them will be prevented |
from deposting fours and fours-and a.
halls and be compelled to deposit .hrees.
Now practically what is the difference |
to them if they buy the fours or four
and-a-halfs which we are told by our
friend before me who is so well Inform
ed on this subject will bring the mo
ment this bill is passed a large premium
or take the three per cents at par? How
will they get more profit out of per
cent. bond at premium of IA, 16 or Is,
than out Of per cent. at par? | say
1t would be mere shadow.
The Senator from New Hampshire
has drawn gloomy picture of these
1anks Withdrawing their circulation, or
threatening to withdraw it. Why do
.heI do 1t Simply to get the premium
On the bonds that they have deposited.
That is the only reason. | have seen
hat thing done time and again. When
lie tiye-twenties were up at 20 per cent.
Dremiumand more, have seen a bank
lis circulation in order TO get
he premium on the five-twe mites, and
hen afterward deposit five per cents,
mo. when the five per cents were up TO |
.oout twenty IL surrendered its circula-
Ion again in order to realize the pre-
nlum on its bonds, and then deposited
That is all there in
his threat. Let them try it /; the people
+ this county will not suffer much if
hey do try it.
Sir, talk about Gripping these banks
Are there not more private banks In this
county than there are chartered banks,
md do not these private banks make
money with no circulation at all NV
rlend from Tennessee Mr.. Baileyl says
here are two thousand aud odd national
md four thousand and odd private
banks. Do not the private banks, with
,ut any circulation, make money ?
Talk to me about national banks wind
ng up their business voluntarily, They
10 wind up now aud then because they
make bad debts, because of improyi-
lent management, but they do not wind
Up on account of any provision In re-
ard TO their circulation.
Mr.. President, | hope the amendment
i the Senator from New Hampshire
'ill not be adopted, and that the fifth
ectlon will be retained just as it came
rom the House.
he amendment was rejected.