Year: 1878

WASHINGTON April 4.-The conference between
Secretary Sherman and the House Committee ON
Banking and Currency in regard to specie payments
was resumed to-day. Mr.. Ewing asked the Secre-
tarv how he expects to get the additional millions OF
gold which lie requires by the 1st of July, 1919.


Secretary ShcrmanYou must that for me 10 state
too closely what propose TO do might prevent me om
doing what expect to do and therefore will answer
yonr question Just far think you will say ought
TO TO- answer mainly from the sale of bonds. Indeed,
in present condition Of the revenue we cannot expect
much help surplus except 80 far as that
surplus revenue may be applied to the payment OF
greCnbacks and to the redemption OF fractional currency
in aid of the sinking fund To that exent think we
can rely upon revenue enough TO retire the United
States notes redeemed under tae Resumption
Act so that | would say that we can get the
fifty millions Of gold additional by the SAFE OF Dos
As TO the kind of bonds that would sell, ana as 10 no"


would sell them etc, ought not 10 say anything on
that subject at present because you ought to allow me-
as an executive officer In the exercise OF very dclcate
discretion free power to think night ut the mo-
meDt holding me responsible for my action ater"ard'
As TO what bonds will sell, or where VIII sell 'hch'
or how will sell thom that is discretionary power
left with tie Secretary ought not to decide tha ho"'
but to decide 1t as the cases arise.


Mr. Ewing-I understand you 10 say in your interview
with the Senate Committee that you would have to rely
upon the natural currents Of trade to enable You TO SELL
that s that there cannot be large sale OF bonds lor com
abroad IL is foreign sale that you arc relying


Mir. sherman-Not at all, but on sale al nome.
Perhaps might as well say that if can get twohrds
OF this years supply OF gold and sIer II Mn an' m 80 80
a good deal than $5O,OOOoOo' SO tiat uo @ nUt
have TO 60 abroad for gold II We can Keep our own
gold silver from going abroad IL IS hoie hah Whit
Mr. Ewing-DO you expect TO pay out the 5ilEcr yer
dollar concd by YOU for current expenses. or Ony IOr
| coin liabihties. or 10 hoard II for resumption =,


eSecretary Sherman-I expect TO pay ~ out no" Only
In exchange for gold or for silver bullion. am per


fccty free to answer the question fully IeSasr on @ ta1
point after consulting win many m.mgeIs @ ;r W pp,u
Houses, have made up my nina what i1c law rcq,es
me do. propose to Issue all the silver dollars ial
are demanded in exchange Tor gold coin Ihat has bee
gong extent, how far cannot Ten. Ihch
which can do at par IN gold without any loss after the
first live millions are purchased for which appropri-
all of the silver bullion which need uuIer me
law with silver coin AS matter Of course in the cur
VIII 90 into circulation How much, ! DO hot


know The mere Tue DetT ~ iof The usf r.oay oe Ht fr
silver certificates that 10 be the idea OF the bl
and those silver cert cates will into the Treasury
in payment OF duties. and in that way practically, the
SILVER win belong to the Government again Until silver
is so abundant that 1t becomes the Acknowledged basis
OF coin ran-acOns cannot pay ont that silver for
the ordinary expenses Of the Government because we
have lot enough 10 pay all the eXpenaures IN SILVER
and silver is maintained at par with gold, and II
the United states notes are below par WIZ
gold, we cannot discriminate IN iaVor oi
any class OF creditors; we would, Therefore,
have to hold silver ut par Eia goa uHil NV, VIZ
the legaendcr notes practically at ar with gold ad
trol than anv other citisn. AS matter Of course 1t
being great discretionary power which Won nave IN





while hold the Office viii he very careful TO exercise
that power so as to carry out in good faith The law
tTnk. coniemplates that gold. silver and
paper shall be AL brought on an equivalency


QUESTION AS TO THE SINKING FUND.


Coming to the question OF the sinking fund.- about
which much had been said in the last conference
Mr. Ewing put several questions to the Secretary
the object being to discover If any law officer of the
Government, OF any Secretary Of the Treasury, had
given written opinion that the sinking fund was
to be composed merely of surplus revenue IN con-
structiOn of that section of the Revised Statutes
which says that the income from customs shall be
applied FIRST to the interest Oh the public debt and
second to the sinking fund.


Secretary snerman-I only say to you that esab-
lshed CUSTOM well the theory OF our Government
would seem to require that any sinking fund provided
for the extnguishment OF the debt cannot be applied
until after all current demands upon revenues are
paid Otherwise, tie Treasury would be bankrupt
whenever there temporary falling Of IN the roVo-
nue.. For instance the law which you read to me- and
which helped 10 frame (the law Of 1862, providing
sinking fund, sets aside the receipts from Gus
toms to pay per cent of the debt Now. although that
was law, just mandatory as you have read It ire
during the sinking fund to be maintained az per
cent? the sinking fund never opened, could IL
be during the war. The pledge never carried out
until the old floating debt was mainly refunded:


Mr.. Ewng-That was covered by the blanket OF war


secretary sherman-Not at all. That matter pre-
scented frequently the ground that II
impossible 10 maintain sinking iubd unti there was
ed n nSt myseY companed Of it after the war was
over insisting that while that right during the
should not apply after peace and we therefore carried
through Congress provision for the sinking fund so
that the money might be applied so much every year. IN
continued be carried out until the revenues fell below
the expenditures TO make it impossible 10 pay the
sinking fund the Tune Thus from the necessity
of the case any Secretary OF the Treasury was com
he paId the sinking fund.- just the manager OF rail
road. would be bound to pay his hands and
he would pay the interest on the first bonded debt.


CONCERSING A DRAIN OF GOLD.


After the exhaustion of this point, Mr.. Ewing put
this question to the Secretary: In case of drain
of gold from the Treasury, what measures would
you resort to in order TO checkit mean after
sumptiOnf


Secretary shermRn--Tho Treasury ought to he so
strong that the thing would check itself You can
scarcely imagine in the probabilities of business
that with outstanding liabilities that not covered
by actual cash hand, except the S3OO.000,000 Of
legal tender notes, the drain upon the Government
would be great 10 exhaust the reserve OF sl2OOOO
600 That proposition Is all based not upon the fact
that S12O ZOO. 900 would pay S300,000,000-we all
know that is not so-but upon the fact that 1t Is
impossible TO gather together United States notes
and to present them In such mass and In
such a continuous stream, and that the very
effort to do 80 would raise the value OF United States
notes Their convenience Is great and the necessity
for them so apparent tnat such effort would at once
bring them up to par In gold. think that drain OF
FIVE ten fifteen, twenty millions would at once tend
to bring up the value Of greenbacks until they were at
par in god and then would be object at all III
drawing them out


Mr. Ewing-Atter resumption the greenback must re
main nj par in gold long the Treasury maintains re-
sumption. 80


secretary Sherman Certainly and while they at
par IN gold they viii not be presented to any consdera
Bile extent. -


Mr. Ewing-Oi course, II there established DIFF
ference OF per cent OF y Of per cent between gold