Year: 1878

government 10 resume snd maintain
! specie payments and that Of the Bank of


England, the Secretary insisting upon it


that the government WAS in equally


good, if not in better condition than the


Bank of Englsnd After this point had
been thoroughly exhausted, Mr.. Ewing


asked the Secretary where and how be
expected to get the additional millions Of


gold which be required by the first Of


January, 1879.


Secretary SheTmsn-Gou must see


that for me to state too closely WHIST
propose TO do might prevent me from do


ing what expect to do, and therefore l


will answer your question just as far as l
think you will say ought TO 90. sn.


swer, mainly from the sale OF bonds.
Indeed, in the present condition OF the
| revenue, we cant expect much help from


the surplus revenue, except so tar as that


surplus revenue may be applied to the


payment of greeubsCks and 10 the re.
dempliou of fractional currency in aid of


the sinking fund. To that extent we


can rely on revenue enough TO retire
the United States notes redeemed under


the resumption act, so that l would say


that we can get fifty millions OF gold sd-


ditionsl by the sale OF bonds. As to the


kind of bonds that l would sell, and as
to how l would sell them, &c, | ought


not TO say anything on that subject ut
present because you ought 10 allow


me, rs the executive officer 10 the eXer-
else of a very delicate discretion, free
power to act as think right at the mo.
ment, holding me responsible tor my ac-
tiOn afterwards. As to what bonds / will
sell, or where will sell them, or how |
will sell them, as that Is q Discretionary
power left with the Secretary, | ought
not TO decide that now, but decide 1t
as the case arises.


Mr. Ewing understood you to say,
in your interview with the Senate Com
mittee, that you would have to rely upon
the natural currents OF trade TO enable
you TO sell; that Is, that there cannot be
q large sale OF bonds Tor coin abroad. 1t
is not on foreign sale you are relying.


Mr.. Shermsn-NOt 1T all, but on
sale at home. Perhaps 1 might as well
say that if can get two-thirds OF this
years supply Of gold and silver it will
amount TO good deal more than S5O,
100000, so | do no. have to 20 abroad
for gold. If we can keep oar own gold
and silver from going sbrosd it is more
than | want.


The Chairman-For this $5O00O,O00
additional l suppose you rely to some ex-
tent on the coinage OF silver.


MIR. Shermsn-TO some extent. Silver
and gold we consider the same under the
law.


Mr.. Ewing-Do you expect to pay out
silver dollars coined by you for
current expenses or only for com la
bilities, or 10 hoard it Tor resumption.


Mr.. Sherman expect to pay IL out
now only in exchange for gold coin or
Tor silver bullion. | sm perfectly free to
answer the question fully, because on
that point, after consultation with many
members OF both houses, l have made up
my mind what the law requires zle 10 do.
propose TO issue al The silver dollars
that Is demanded in exchange for gold
coiu. That has been going on to some
extent how far | can not tell. Then /
propose TO use silver in payment
for silver bullion, which ! can
do at par in gold without
any loss. After the five millions is pur-
chased for which an appropriation WAS
made in the silver bill, | then propose
to buy all the rest of the silver bullion
which | need, under the law, with silver
coin. As matter of course, in the cur
rent course of business some of that sll. |
yer coin will 20 into CirCulstion how
much do not know; the more the bet
ter for US; but the most of 1t, | take 1t,
will be transferred to the Treasury for
silver certificates, and those silver GER
ti6cates will come into the Treasury
in payment of duties, and in
that way, practically, the silver will !
belong 10 the government again, until
silver is so abundant that it becomes
an acknowledged basis OF coin trsnsac-
tions. We can Lot pay out silver
for ordinary expenses of the Govern
ment, because we have not enough TO pay |
all expenditures in silver, and II silver Is
maintained at par with gold, AID If
United States notes are below par with
gold we cannot discriminate IN favor OF
any class of creditors; we would there
tore have to hold silver at par with
gold, until we either have
enough to pay everything with it
or until .he legal tender netes are Practi-
cally at par with gold and silver. That
is a matter over which have no more !
control than any other citizen. The
silver dollars beng receivable Tor dutie-
[ must receive them; and l could 10,
prevent, If / tried, silver from coming
into the Treasury either for silver GER
tifcates or in payment Of duty. As to
when l will begin paying out for current
e1peditures Of the government or in pay
ment Of the iuteres. or principal OF the !
deb, cannot tell, became TIA. would !
depend upon the equality Of the three
kinds Of currency, gold, silver and paper.