St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-08-16
SHERMAN AND FOSTER.
The Senator Gives Charley Tips on
Finance.

The Senator Gives Charley Tips on
Finance.
MANSFIELD, O., Aug. 15.-Secretary
Foster and Senator Sherman had very
important conference Thursday night.
1t continued for five hours, during
which the entire financial situation was
reviewed, and the question of cOntinu-
ing the AZ per cent bonds was naturally
the central figure of the discussion. 1t
was soon demonstrated that the eX
secretary did not share tie views of
Mr.. Foster upon the subject. He thought
the secretary should pay the AZ per
cents, and he undertook to show how
easy it was for him to do it without
making trouble IN the financial world.
The eX-secretary's position was that the
money already in the treasury that
could be spared from the sinking fund,
and that might accrue in the meantime,
would be sufficient to pay OFF the bonds
when due.
He explained to the new secretary
that the month of July, the worst in the
year, has been passed in safety, and
that gold would return to us as our eX
ports began and that the movements of
the splendid crops and the payment of
new revenues would make things easy,
saying that the bonds could be retired
without difficulty or danger. The ques
ton of what effect the retirement of the
securities that have been held by the
national banks as deposit for clrcula-
ton would have on the banking system
was naturally one of the features of the
discussion. Senator sherman did not
think it would have any, except to
eventually somewhat change its char
acter. Mr.. Sherman took the ground
that the banks would very soon adjust
themselves to the new conditions when
the government would furnish the eur
rency to them direct. How far Secre
tary Foster accepted, or will accept
Senator Sherman's views Oh the sub
ject, remains to be seen.
WASHINGTON, Aug. ID. - Secretary
Foster made the following statement
to-day in regard to the refunding opera
tons and the financial situation gen
orally: about SIS, 100000 of AZ per
cent bonds have been extended, and APP
plicationS have been received covering
about s., 500.0 900 more. What the final
outcome may be, of course. l do not
know. 1t is probable, however, that
considerable portion of the balance
$50, 10000 will be extended. 1t will
be no hardship to the treasury to be
called upon to pay those not extended.
In fact, such payment will add by the
amount paid to the money in the
hands of the people. By the extern
sion we succeeded in preventing a de-
crease of national bank notes, and, in
fact. have so far increased their circu-
lation nearly five millions. The out
look is that considerable more of an IN
crease will be effected. | am not find
ing any fault with the action of the
banks. as might be inferred from recent
publications.
Il saw Mr.. Sherman at Mansfield. |
always find it profitable to discuss
money matters with him. | do not
recall single disagreement between
US. The statement telegraphed from
Mansfield regarding our conference is a
pure romance. While there is less
money in the treasury then for
MANY years past it is in a comfortable
condition. Because of less money in
than ever before is in the hands of the
people, thus facilitating the conduct of
the business of the country. We are on
a gold basis, and there is no occasion
for alarm as to the ability of the gov
eminent to maintain this condition.
The secretary has ample power to main
tain or increase, the present reserve of
gold. | may add that Mr.. Sherman
fully agrees with me regarding the le-
gal power of the secretary, as above eX
pressed. l do not see any occasion for
the exercise of this power, but [ do not
hesitate to say should the occasion
arise, | shall not fail to use it.