Democratic Sentinel, Volume 3, Number 29, Rensselaer, Jasper County, 29 August 1879 — THE RATIONAL TREASURY. [ARTICLE]

THE RATIONAL TREASURY.

A Valuable rri.lle&c Extended to the Bankers. A Washington telegram to the Chicago Tribune says that * the amount paid into the treasury during the present month by the banks subscribing to tbe 4-per-cent, loan has been $30,000,000. The amount of bonds still outstanding for which payment has not been made by the banks is about $45,000,000. Under the terms of subscription this entire sum should hare paid to the United States Treasurer on July 21, the date upon which the last call for the 10-40 s matured. The leading subscribing banks, however, hare lately appealed to Secretary Sherman for an extension of time, upon the ground that to pay into tbe treasury at once that large amount of United States notes, and thus suddenly withdraw so much money from the channels of business, would seriously affect the money market, by forcing tbe banks summarily to call in their loans, and would at the same time depreciate the 4-per-cent bonds. After a long discussion with the representatives of the subscribing banks, tbe Secretary has modified his order of March 26 last, which required the banks to pay for their bonds upon the expiration of ninety days from the date of subscription, and directed that drafts should hereafter be made upon them only when funds are required by the United States Treasurer to redeem the called bonds presented at the Treasury Department for redemption. In the modified order the Secretary has also directed the Treasurer to give tbe banks credit on their bond account for the called bonds presented by them for redemption. It is provided, however, that the subscribing banks must be prepared for final settlement with the Government on acoount of the refunding loan upon the Ist day of October. The effect of this new order is to allow the banks to retain the public funds until actually needed by the Treasurer of tho United States to pay for called bonds presented for redemption.

A Talk with Sherman. Says an Associated Press telegram from Washington: Secretary Sherman, being questioned concerning future financial operations of the treasury, replied: “The treasury operations will probably, hereafter, have no material effect upon the money market. It is probable that before the Ist of October nearly all the called bonds outstanding, amounting to about $47,000,000, will be presented for payment, and will be paid for thiough tho Clearing-House of New York. As much of this money will go to different parts of the country elsewhere than New York, the payment may cause some movement of currency from that city, but it will naturally soou come back again, Ai ter the refunding operations are closed out the treasury payments will be equal to our receipts, and no more, except the small balance of the fractional-currency fund which Congress required to be paid out” “ What will bo the probablo amount of gold imported in payment of breadatuffs, etc V” “ I do not think the movement of gold to this country will be very large. It is evident our exports will be greatly in excess of the imports, and mainly of breadstuffs, meats, and cotton; but the excess will be paid for largely by American securities l.eld abroad. I wish they would all come back; s' ill. some gold will come, and our domestic production of gold will stay here. This will give the banks an excellent opportunity to piovide themselves with coin reserve instead of United States notes, of which the reserve now consists. United States notes will all be wanted in active use for the largest crops and the largest business wo have ever had.” “ How about the price of silver—has it advanced?” “ Yes; tho price of silver is advancing s mewhat. There is a better demand for silver for China; and, therefore, the price is higher in Sau Francisco than in New York. I should not be surprised if the silver on the Pacific coast should go to China, and that our supply lor coinage should come from Colorado, Mexico and, perhaps, London.”