The New York herald. [volume], April 05, 1878, Page 3, Image 3

About The New York herald. [volume] (New York [N.Y.]) 1840-1920

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WASHINGTON
Resume of the Business Be'
fore Congress.
PROSPECTS FOR AH ADJOURNMENT
The Doorkeeper's Position in the
House Made Yaoant
SOUTHERN DEDCRATS IN THEIR WAR POT.
Statistics Concerning Office-Holders in
the United States.
TIIB PACIFIC RAILROAD FUMING Bill.
FROM OUR SPECIAL CORRESPONDENT.
WiSBiSOTOK, April 4, 1878.
TBK BUSINESS BEFORE CONGRES8?FAIR PROS
PECTS FOB AN ADJOURNMENT BT TBE 1ST
OF JULY.
Tbe Appropriations Committee It sa forward win
It* work Mid bo harmonious Id Its deliberations that
there ia bow b fair prospect that Congress may ad.
Journ by lb* middle of Juno. The Navy bill, wblch
waa passed by tbe Hooic, under Mr. Clymer'a manage
mtot, In b singto session, baa been very slightly
changed by tbo Senate committee, wblcb boa added
only $100,000 to II. A part or this sum will be
mowed by the Husa in conference committee, and
ibis bill will become a law with but very little delay,
rbe Legislative, Executive and Judicial Appropriation
bill bas been reported and awaits action only antil
11r. AUctn?, wbo baa its management, fhall recover
rrom an illness. The River and Harbor bill has been
reported. It will be pretty thoroughly discussed and
amended In both boom, and may encounter a Presi
dential veto II too many small Jobs are left tn it.
Tbe Army bill Is almost ready in committee,
bat neoessarily awaits the action of tbe
Honae on tbe Army Rfprganizitlon bill. The PosJ
OIB' e bill la also In a very forward state. The Diplo
matic and Consular bill Is before the Senato Commit
tee. Tbere remain on'y tbe Sundry Civil and I)cfl'
neney bills, wblcb are always Kept back until near
Ihe close of the session.
Tbs Pacific Railroads Adjustment bill may come to a
vote In tbo Senate to morrow, and Its liienda claim a
sure majority for It Tbe Tariff bill did not come ?p
In Ibe House to-day, Ihe rase of Doorkeeper Polk
having consumed tbo dsy. Mr. Wood will probably
bring ibe tariff bill up on Tuesday next and It will be
debated for ten days or two weeks. The Texas Pacific
bill, wben reported, will alao consume several days,
?nd tbe bill compelling the Paolflc reads to pro rate
will be discussed several days. There are still a num
ber of contested election cases to be decided. Tho
proposed changes tn tbo Internal tsxoa will oonsnme
some time In discussion. Tbere Is a bill ror a new
classification of mall matter. The proposition to tnrn
the Indiana over to tbe War Department has also to
come before tbe House, and It Is a curious fact thst tbo
Indian Ring, wb?cb last year and In all previous years
violently opposed Ibis chance, now as strongly favor
and nrge It Tbere is s good deal of otber business
wsittng or preparing?sach as a bill changing the
patent laws; a bill to create aboard for tbe invest
ment of savings; tbo report on Mexican matters; Mr.
Schleicher's proposition to complete all ihe public
buildings now begun, snd several otber important
matters, not to speak of Mr. Blair's pet enterprise of
'investigating ibe Preeldential election and a possible
report from the Committee on Improving the Method
sf tolecttnir a President. But on the whole Con cress
tan get through by the middle of June, and the most
izperleneed tnembors now believe It will adjourn at
any rale no later than tbe 1st of Jnly.
PACIFIC RAILROAD SINKING FUND? STRENGTH
or Mil. THURMAN'S DIM,.
The bill concerning tbe Pacific Railroad 8lnklng
land reported from tbe Judiciary Committee, which
Senator Thurman, of Ohio, baa charge ol. will be
passed. except Id dm contingency, br an affirmative
vote, variously estimated at from thirty nine to forty
tnrce. The following named Sen atom will,
It la believed, vole In favor of It:?Messrs.
Anthony, Armstrong, Bailey, Bayard, Bock,
Booth, Botler, Cameron of Pennsylvania, Camrron
of Wisconsin, Chrlstlaacy. Cockrell, Coke, Davis of
Illinois. Davia of West Virginia, Kdmunda, Knstls,
Ferry, Garland, Qrover, Harris, Hereford, Roar,
Howe, Johnston, Jon en ol Nevada, Kernan, Klrkwood,
HeCreery, M< Donald, MoMillan, McPherson, Bfsxey,
Merrlmon. Morgan, Morrill, Oglesby, rintnb, Sanls
?ory, Tharman, Voorhees, Wadieigh, Wallace.
Withers. Or theae two or three are doubtful, bat the
friends of the Tharman bill claim thirty-nine rote*
?art. Before this railroad debute la closed It la prob
ible that aomo Senator will nrge an Investigation of
what U generally regarded an tho severe allusions of
Senator Edmunds tonehlng bribery and corruption
and tbe acaadaloue lobbying In tbe United States
Penate. A majority of tbe Senators will be glad to
bare as Investigation.
f HE KBW CLUE BOOK?A VAST ARRAY Or
Orriae-HOLPFR*.
Tbe new Bine Book, just published, a cnmoerons
and utterly useless bat very costly publication, which
eontaina the name of every person employed In the
federal sorvloe. givoa 85,880 na tbe total number of
lodersl ofllce-bolders of all klnas and degrees. Tbla la
about 1 In 450 of lha total population, or 1 for every 90
votes. Tho vaat number ol office seekers oeases to
excite surprise when tneae figures are known, for If
then were bnt five applicants for every place tbla
would make one in every olgbteoa of the voting pop
elation ? federal place hunter. But wheo the Stata
sod local officers are added to the federal the number
of peraona wh% are paid for attending to
tho business of ruling tbo remainder beoomea
frightful to contemplate. Counting school
officers, eonatablea and Justices of the poace
with tbe more Important placemen It to probable
that tbo State and local office-holders aro at least as
numerous aa those In leaeral employment, and at
tb it rato one man In torty-flvo vo'era would bo driw.
Ine hla support from tbo public parse, or, in other
words, every collection of Inrty-flve voters through
out the country is obliged to support one men by
tbslr labor in ordsr to maintain such government aa
we have. But we allow five place buntera lor every
fttata and looal place, aa well aa for tho federal o Tiers,
tbo result would show that every nlntb voter In tbo
entire Republic to an offlceaeeker.
FROM OUR REGULAR CORRESPONDENT.
WasniMOTo*, April 4, 1878.
TBS DOObKEFlSMHIP QUESTION?SorTnrRN
DEMOCRATS BECOMINO DISGUSTED WITH
THEIR NORTHERN ALLIES ?A ROW IN CAU
CUR ANTICIPATED.
Tbo action of tho House to-dsy In vacating the office
of Doorkeeper is to bo followed by a eaucue ol the
democratic membera Friday night to nominate a suc
cessor to Mr. Folk. Tho Southern democrats aro ex
oeodingiy angry at tho manner In whleh some of their
colleagues voted, and to-night the Impression prevatla
that in tbe caucua to-morrow tbo friends ol Mr. Folk
will be present lo foroe and, as tbey number
two-thirds of the democratic strength, they may In
sist that he shall be renominated. If on the other
band tbe democrats who voted to retire Mr. Folk should
not be bound by ibe action of the caucus snd refuse
to vote or support tbo cancus nominee the republW
cans wilt rally tbelr entire strength for Mr. Snerwood,
tbe Postmaster of tho House daring tho Forty third
Congress.
Tbo Southern democrats say that they aro tired of
this policy of tbo Northern democrats voting with the
republicans nad that tho Issuo might Just ss well be
made on the Doorkeeper aa upon any otner question
ol perhaps more moment. It la svident that Or am ess
?a the part of ibe Boatbern members la oouad to
tntka a row.
TBS FLUSBIKO BAY IMPROVEMENTS?BBPLT
Or OSNBBAL NEW TOW TO 4 RESOLUTION OP
1NQU1BY VBOtf TBB BOOSE.
In anawer to tba resolution oi tUa Hoata Inquiring
what improvement ara demandod by tba interest! of
tba public la tba matter of tba navigation of Fiuab
ing Bay General Humpbroys. ablet ot engineers,
transmitted to-day a letter of reply lorwardad by
Gaaaral Nowton, engineer ia obarga of tba Long
Island diatrlet Tba latter says that tba number of
tnbabttaata to ba benefited la aboat thirty tbouaand,
asd tbat TieIta to Naw York mutt be made by rail, aa
tba draft of watar ia Flushing Bay baa ao
diminished tbat communication by baat eaa
only bo bad at about blgb watar. Prior
to 1868 eoamnnloatlos waa bad by two aiaamboata,
making aaob tlx trlpa a day. In 1881 tbare waa aa
avarago low water deptb of Oto feat to Flushing. A
apeeial survey would ba necessary to determine tba
faaalbitity and ooat of aa Improvement of navigation.
It ia to ba preaomad tbat tbe causes wblob have con
curred In causing a deposit in tba bay alnca 1863 will
continue, and It ao tbat a remedy to tbla aboating by
means ol dredging alaaa must be repeated from time
to time, depending for ita frequency upon the rate of
deposit. An excavation of tbe bottom one mile long,
100 leet wide and three feet deep, would cost?sup
posing tbe material throughout to be of ordtnarv
bardneaa?$16,000. Tbe communication la accom
panied by loiters from Moeara. K. Piatt Straiten. Will
lam B. Draper aad J. Mllner Peck, oitizona ef Flush
lug, urging tbe aeceasity ef aa appropriation for im
provement.
GENERAL WASHINGTON DESPATCHES.
Wash iivoton, April 4, 1878.
SBHATOB CH Arris's SUBSTITUTE JOB TBB
PACIFIC BAIL BO AD SINKING FUND BILLS.
The Pacific Railroad Funding bill Introduced by
Senator Chaffee, ot Oolarado, aa a substitute lor tbe
two btlla recsatly reported to tbe Senate?one from
tbe Judiciary Committee and tba other from tbe Rail
road Committee?combines certain salient leaturea el
botb, and ia intended ua a measure to aeoure
tbe payment ol tbe bonded Indebtednesa ot
tbe companlee to tbe government with aa little
embarraaament aa possible to ine oarporatlona con
alstent with security to tbe government. The amount
wblca it requires to be paid every year into tba sink*
ing fund by tbe compaaiea ia leas than is called for by
tbe Judiciary Committee and more tban is called for
by tbe otber. It aiipulotea tbat (be Central and
Union Pacillo compaaiea abali pey tbe government
$1,300,000 each per anssm In lied ol all other pay men a,
and tbat tbla arraagemaat aball form a Oaal aetila
ment ao far as tbe funding question is concerned, and
tbat in all otber reapecta Congress ahall have tke
power to alter, amend ar repeal tbe acts aff otlng
tbesa companies in any manner. Tbe bill also pro
vider for tbe appointment of a commissioner to regu?
lato tbe operation el tbe roads as one cootinnoua line,
aa originally intended by Congresa In authorising tbeir
construction, and with power to seize tbe road of any
company refusing to obey such regulations. Thus
tbe pro rota question asd tbe funding queatlon are
botb Included In thia bill, Instead ol belug divided, aa
propoaed by Mr. Tburman.
KB BUN O OF XBB BBFUBLICAN NATIONAL COM
M1TTIE.
A private meeting ot tbe Republican National Com?
mlttee and tbe old Ooagreeaional Commlttoe waa bold
to-nlgbt at tba room ol Colonel Gorbam, Secretary of
the Senate. John A. Logan prealded. Tbere were
present Z. Chandler, of Michigan; ?. Hale, of Maine;
G. C. Gorbam, ot Calilornia; J. A. Hubbeil, of Miobt
gnn; W. A. Phillip*, of Kaaaaa; H. F. Page, ot Cal
ifornia ; J. T. Walt, of Connecticut; C. H. Slunlckson,
ol New Jersey; H. B. Strait, of Minnesota; W. ? Chand
ler, ol Mew Hampehire; .Charles Foster, of Oblo;
Weal, of Louisiana; Dor sty, ol Arkanaaa, and others.
Tne object of tbe meeting waa to consult inlurmally
aboat tbe organisation of tbe party lor tba approach,
tng fall campaign. It waa decided to aak tbe republi
cans In Congraes to reorganize the Con?reaatonal Com
mittee, and to make arraagemenie for an earnest Qjrbt
to carry tbe,next Congresa. There waa a tree inter
change of views, bat aa otber dedutte action was
taken.
DOQBKXKPEli POLK.
ACTION OF TBB BOUSE ON THE CUABOES PBE
yEBBED ? THE POSITION CKCLABKD VACANT?
THE DUTIES OF THE OFFICE TEMPOBAB1LX
DEVOLVED ON TBB SEBGEtNT-AT-ABMB.
Wasbixoto*, April 4, 1878.
The House to-day resumed consideration of Door
keeper Polk's esse.
Mr. Rdkx, (dene.) of III., offered n substitute tor
tbe resolution of the majority a resolution censuring
Mr. Polk lor employing persons In oxeess of (be num
ber authorized by law, dtreetliri blm to revise tbe
soldiers' roll and remove therefrom all persons not
dlonbled soldier*, and recomtnittlnK to tbo Committee
on Civil S err lee Reform Its report with Instructions
to ascertain what changes may be necesaary lor tbe
more eoonomio administration of tbe busineaa of tbe
Doorkeeper's department.
The main question having been taken tbe vote was
taken on ibe resolution ollered by Mr. Kuen us a sub
stitute for tbe report of tbe committee, and It was
rejectod by a vote 01 94 to 136.
1 he question recurred on tbe resolutions reported
by tho committee, as loliows:?
Knolnn, That tbe ooniilon of Doorkeeper of tho Huom
et Representative* be, ami hereby la declared vacant; and
lartber
haonlTed. Tbat until the appointment or a new Door?
keeper (he duties ot the otttw be, and hereby are. devolved
on the .Serceant et-Arnik
Mr. Cosgbb, (rotx) of Mtcb., demanded ? division of
tbe question.
Tho vote was there fare uken on tho ftrst resolution
ud it was auoptoa?yens 139, naya 8a
The following Is tbe vote In too negative:?
Montr! Aiken. Banning. Btackbnrn Bli>?, Hoone, Bright.
Cabell. OelrtWSil ol Keuiucky. Carlisle. Chalmers, Clark of
Mi sourl, t ook, Cravenr, Uriite.xlen, Cmber-on. t>Hild?on,
D??l? of >urtb|t'arollu?. uii.rrll, iJlckey, nunuin r..i n,
hi am. bills, hwln*, torney, Kr?n?lln. i.irth.
(> n Wbaon, (llddtnwa. Ooode, i.unter. Ilartla of llr
alula. Ilarrt* ?l (ieorgia. lisrtrldue. Hatcher, uenty,
Hewitt el Alabama, lierbert. Hooker, llouae, llunum,
.?"Ilea of Alabama. .1 ore n-en. kenu?. kiuttnel kn?pi>,
Knott, l<lgoe, l/uttrall, Manninv. Martin. Money, Mnrrisot,
jMuiarew, Uulnn. Keaaao, Kiduie, Kuubiua. ?>*>mi., . c.t.e?.
8nelley, -Insleten. Mrm?>0?. Mnlth ol MeoVgia. nparss,
Hwann, Taruehmnrton, Townsheiid et Illinois. Tueker,
Vnnce. Waddel, Welch. W lilath.irue. Wlguliiwiu, William,
o Alabama, Willis ot Kentucky, Wt ion, leates ai.d
Tooiib?
I Up nt 11 vote in on tbo second resolution, devolv
ing temporarily the duties ot Doorkeeper <10 tbe *er
genm-ei-Armr. (t was adopted?yens 122, nars Hi.
Immediately on tbo aanoiuicoiueiit of Ute vote Mr.
Hals, ol Maioe, ro>e to move thut tlio llouan procoed
to tbo elfettwn ol n Doorkeeper.
Mr. Kbto, ol Illinois, in?ved ilint tbe Hon?e sit
Jouru. Agreed to?yens 121, nsys lia?and ti>e
Mouse aocordlngly, at twenty uiluutes to Qve 1'. M.,
adjourned.
I'endins tbe snnonnoement tbe Speeker appointed
Mesors. Durhsm, Blount, snu Baker, of Ind'anu, us
tbe Conlerence Commiwoe on psrt ol tbo House on
the bill making appropriation for tbe employ ment of
temporary clerks. Tne announcement w?s made of ?
democratic caucus to take place to-morrow oventug.
STANLEY'S Di&GOVERIES.
PRACTICAL FRUIT 07 TBE EXPEDITION?MOVE
MEN T? Of EKOLtBU MISSIONARIES?TBE
BP)MIT OP THE HI.AVE TRADE.
WasbISoTo.v, April 4, 1*78.
The United 3Ialoe Commercial Agent at Oabcou re
ports to tbe Department of rHute that ths knowledge
ol tbe Congo or Livingston River, derived Iron Stan
ley's discoveries, Is already bearing practic.il fruit,
English misslonnrles bsvo followed tbo course of tho
river ns far at tbe Orst scries ol rspids, and are about
to establish a missionary ststlon at that point, Thoio
?re reports that a modified form of slave truffle slill
exists between that region and the Portuguese
Islands of Thomas and Princess through tbe lortner
sgeuts of tbe slave trade between Ualioon aod tit. Paul
de Ixiaoda. A Brtttsn gunboat rscently cspiured a
brig with over a hundred men, women and children
on board In a miserable condition, who baa been oai>
lurcd and sblpDOd near tit. Paul as "iree laborers. '
The spirit ol the elave trsde still exists, and, If not
carelully watched, will IInd menns to revive and ut?
crease.
EX-C0NG11E-BMAN VANCE.
WAsniTOTO*. April 4, 1878.
Intimste persons! friends of sx-Congrossman Vanco
In tins city are responslbls for a positive ststoment
tbat ihero is no truth whatever In the report tbat bo
elopeJ with the wile of a muaie teacbor In Ohio. The
deiiial, so isr us the lady la concerned, la baaed npou
tboir personal knowledge ol her recent movemonts.
C0U0NE1W C.Y>ES.
John Dunn, tbree y??r? old, lell to the ndcwslk
yesterday Irotn the lourth story window ol Ins psrenta'
residence, No. 117 Monroe street, anu ?ns killed.
Ix>tils Brown, seventy yesrs of ?ge, oied suddenly
yestordav ot bis residence, No. 220 William street.
RESUMPTION.
Secretary Sherman Again on the
Methods and Ueans.
THE ACCUMULATION OF GOLD
I i
Course of the Department in
the Use of Silver.
THE DEFICIENCY IN TBE SINKING FUND.
The Light of Experience Thrown on
Extreme Suppositions.
EFFECT ON THE NATIONAL BANKS.
Washington, April 4, 1878.
Tba conference between Secretary Shorman and
the Bonaa Committee aa Banktag and Curreaey id
regard u> the Resumption aot was resumed to-day.
It opened with a comparison between tba ability ol
tha government to resume and maintain specie pay
aiaaia and tbat ot tba Baak of England, the Secretary
Instating upon It tbat the government was Id an
equally good II not a batter condition tban tba Bank
?I England. Alter thla point had been thoroughly
exhausted Mr. Ewtng asked tba Secretary bow be ex
pected to get tba additional milllona of gold which
be required by tha let of January, 1870?
Secretary Sukkman?You must sea that for me to
atsto too closely what I propose to do might prevent
ae from doing what I expect to do, and therefore I
will answer your question just aa iar aa I think yon
will aay I ought to go. 1 snawor, mainly iron tha
sale ol bonds. Indeed, Is tb? present condition of
tbe revenue, wo canoot expect macb help from sur
plus revonao except so far aa that surplus revenue
may bo applied to the paytaeat of greenbacks and to
tba redemption of fractional currency in
aid of tbo slaking fund. To thit extent I
tblnk we can roly upon revenue enough to
retire the Culled btates notes redeemed under
tlie Resumption aot, so lb it I would say that wo can
get the Oily millions of gold additional by the sate ol
bonds. As to tbo kind ol bonds that 1 would sell, and
as to bow I would sell tbem, 4r., I ought not to say
anything on tbat subject st present, becauso you
ought to sllow me as sn exeoutlve officer, in tbo exer
cise of a very deiloate discretion, tree power to aot as
1 tbink right at tbe moment, holding me responsible
lor my action afterward. As to wbat bonda 1 will aell,
or where I will sell tbem or bow 1 will sell ihom, as
tbat is a discretionary power left with the Secretary
1 ought not to decide tbat now, but to aeciae It as tbe
case arlsos.
aocitcss or coin supply.
Mr. Ewibq?I understand you to suy In your inter
view witb tbe Senate Committee that you would bave
to rely upon tha natural curronts ot trade to ODable
{ou to soil; tbat li>, that there cannot bo a large sale of
onds lor ooin abroad. It Is not on a foreign aalo tbat
you are relying.
Mr. SaaaiiAii?Not at all, bat on a sale at home,
l'erhapa 1 might as well aay that III c?u got two
thirds ol this year's supply ol gold snd silver It will
amount to a good deal more tban 160.000,000, ao that
I do not bave to go abroad for geld. II wo can keep
our own gold and stlror iron going abroad It Is more
tban I want.
Tho Coaikmax? For thla S&0.000.000 additional I
suppose you rely to aome extent oa tbe ooluago of
silver?
Secretary 8h***an?To some extent; silver snd
gold we consider the aame ttnder tbe law.
tbs i-sn or silvsb coin.
Mr. Ewiso?Ijo you expect to p*y oat tbe sliver
dollar coined by you lor enrreat expenses or only lor
ooin liabilities or to heerd it for resuiuptloo ?
Secretary Shbbmak? I expect to pay it out uow only
la exchange lor gold ooin ot for silver bullion I am
perfectly free to answer tbe question tally, because on
tbat petal, after coMalting with many memoers ot
both houses, 1 bave mado up my mlod what tho law
reqalres me to do. I propose to Issae ail the sliver
doiisra thst are demanded In exchange lor gold
coin. Tbat baa been going on to some ex
tent; bow far 1 csnuot tell. Then I proposo to
use the si Ivor In payment lor silver bullion, wbich 1
can do at par In gold without any loss alter tbo Unit
$5,000,000 are purchased, lor Which an appropriation
wad made in the Silver bill. 1 thon Iroposo to buy
all the rest of the silver bullion which 1 nerd under
tbe law with silver coin. Asa manor ot eonrse, in
tbe current coarse of easiness, some of thai silver
coin will go luto circulation; how much, I uo not
know; tbe more the better for us. Hut most of it, I
take it, will be translerred to the lroaaury lor
silver certificates (tbat seems to be tho idea
ot the bill), and tbono silver certificates
will come' into tbe Treasury In psymrnt
ol duties, snd In Ibst way practically the silver will
balong to the government again. Until silver in so
abundant that It becomes tbe acknowledged basia of
coin transactions we cannot pay oat ttint silver for
the ordinary oxpenaea ol the government, because wo
hiivo not enoagti to pay all tho expenditures in silver;
snd If tbe silver is maintained at par witu
gold, and If the United States notes aro bo
low par with gola, we cannot utscriminato
In favor ol aay class of creditors; wo would
therefore have in bold sllvsrst par wild gold nut 11 wo
either bave enough to pay everything with it, or until
the legal lender notes are practically at par wiin gold
and silver. Tbat is a matter over which 1 bavo uo
more control than any other eitix -n. The silver dollars
l*lng receivable for dulloa?the law allowing them to
be coovorled into certificates, which are receivable lor
cu?tom??1 must roccire tbem; and I could not pre
vent, if I tried, the silver irom coming into tbe Treas
ury, oitber lor silver certificates or payment ol duties.
As te whoa 1 snail oommence paying luetn out lor
the current expenditure* of the government, or !n pay
ment of tbe Interest or principal of the deut I c muot
tell, because tbat Would depend upon tbe equality
ol ibn three kinds ol currency? gold, silver ana
paper. i do not know whnhtr I make
myself understood, hut that Is (ha general Idea I lisvo
in my mind. As a matter of course, it being a great
discreltonsry power which you havo invested lu the
ofltce oi the Secretary or the Irra-ury, while I hold
lue otUce 1 will be very caretui to exercise that power
se as to carry out in good tanb the law aa Congress
has passed it, and that law, i ihluk, contemplates
thst gold, stiver and paper shall bo ail brought ou au
equivalency.
thk sixntvj rt'NO
Coming to the question of the sinking fund, ab<>ut
winch so much bad been said in the last conference,
Mr. Kwtug put this question to the Heeretiiry
Old say law ofTleer ol the government or any Sec
retary ol the treasury give a written opinion to tha
efl 01 tbat tho authority given to the secretary ol the
Treasury by the resn mption law, to.use any surplus
reve6u? from titne totlmd in Iho treasury not other
wise appropriated to prepare and proviuo tor tbo re
sumption of legal tender?, affect in auy any the ob
ligation impound by tbat section ol the itevwod
Mtatutes wmcb deemros that the com paid lor cus
toms shall bo set apart as a apeelal lund atd applied,
Drat to tne lntere.-t on the public debt, and Second to
the sink leg lund ?
.Secretary .->iikiiuax ? No, I think thst no Isw ollloer
Of lbs government or no Secretary of the Tiea-ury
hai yet authoritatively uecidou tbat uuestioo as y<-u
put it now. The question which tlie .secretary ol iho
Treasury did deniue waa that United .states notes and
fractional aoie<, being a pirt of tho public debt, may
be lecludeu in the sinking luud; and prncticiiiy we
havo paid the lull amount of tba surplus revenue in
that way and applied tt to the sinking lund until last
year, in one yesr la Mr. Brittow's lime there was a
deficiency of 000,00V, and this last ) ear I did not
buy honds to tbe extent of $i>,boo,ooo of
tlit sarpiaa land; se that tbe qneetion which
yon now present, sltbough It is pre?onteC
to miud very oiten, use not been deemed
either by myself or by any Hecrcurr ol tbe Treasury
or by any law, lor tho question has really never been
presented in a way which made It necessary to an
c.dc it. My annual report will snow the exact ap
plication ot the amount of ibe sarplus revenue. As
under l?o provisions of existing law I was aelaaliy
selling bonds under the Resumption act 1 did not seo
my way ciear le go into tbe market and buy these
bonds lor ihe sinking lumL Just a* during tbe whole
ol trio war the sinking land provision wa< held io Imi
inoperative; while wo wers actually telling bonds It
wss absurd lor us io go lato tho msrket and t>uy
bonds. Tbo money lies in the Treasury suii|tct lo tho
order ofCongrett. II Congress dlreats that Ave mill
ions no applied to the sinking lend It can do so, but
it wilt only io vol ve us In tho same absurdity that tho
English wtre Involved is wheo they undertook lo
carry out Sir William Pitt's finking Fund law during
their war.
>tr. Kwimo?llut you can bur sis per cent bonds
with It and yoa can sell lonr per cent bonaa,
hecretary .-iiskman?I snow that. Waste tell lour
per cent buadu, but wliat it the ust ol doing to 7
Mr Ewixo?What it tho balance iu the sinking
fond?
Seorelary Pitas mas? Five million seven hundred
and seveuty-eight thousand dollars.
Mr. Kwi\o?Where is thst in the Treasury?
.secretary 3iikkmax?It la in the general cash bal
ance. It is in Iho ooin accumulated. Mr. Bristow, in
his report In 1N75, mentions this very matter and
says thai, in his oplniou, the Isw requires htm lo call
in bonds and lo invest lint mmey, bat Congress look
no action ni-on it and ihe retail Wat thst, ihut year
or tne preceding year, the balance over ine surplus
revenue, some (10.000,000, was not applied at nil, and
so, ever since tbe panic ol 197S, there hss been a
balance not applied.
Mr. Ewixo?1 don't think tbe sarp us rsvsnue has
MjiDig; to oo vim it. wmt 1 wmm? to k*ow waa
whether auy law officer o( lb* government or any
Secretary oi iba Troaaury baa |l*?# a wriit*o opinion
that the aiukiog (and wa* to be composed merely of
surplus* revenue in construction ol that section ot tha
Kovised Statutes which aays that the income from
cuetoioB shall to appliud lirat to tbe interest oa tfo
public debt and second to the ulnitlng fuud.
Secretary xiiixi]i-l can only say to jrou that
established cuatom aa wall aa tbe theory ot our gov
ernment would seem to require ibai any Kinking
fund provided for the extinguishment or the
debt cauuot ba applied until alter all current
demands upon our rovenucs are paid. Otherwise
the Treasury would be bankrupt whenever thera was
a letnjtorary tailing off m tho reveuue. For inatanee,
the law wh>oh you read to me and which 1 helped to
Irarno (ilia luw ot IM^), providing (or the sinking
fund, seta aaide tbe receipta from cuatoms to pay one
per cent of tbe debt. Now, slthough that wus tha
law, Juat as mandatory aa you have read it (requiring
the aiuklug luud to be maintaiuau at one per coat),
the sinking luud wan never opeued, n?>r could it be,
during the war. The pledge waa never carried out
until the oid dotting debt waa mainly rcluudod.
Mr. Bwimg?That waa covered by tno blanket ol
war necessity.
Socretary Shkrmak?Not at all. That matter was
presented io Cougreaa trequeutly, oa tne ground that
it waa impossible to maintain u sinking lend until
there was an oxaess of rvvenue over expenditure, and
so it continued until I myself complained of it alter
tbe war was over, mainline tbat, while mat waa right
during tbe war it should not apply sf}*r peace, and
wo therefore carried through Congreaa a provision lor
the sinking :und so tbat tbe money might be applied,
an uiueh every year, In pursuauoo ol tbe old
uct of February, 1882, aod so It continued
to bo carried out until tbo revenues fell bolow
tho expenditures, so as to rnak* it impossible
lo pay tlie curieut expenses of ilia government and
to puy tnu sinking tuud at the same time. Tbua from
tbe necessity ot the oas* any Secretary of tbe Troaaury
wat> compelled to pay tbe current demands on tha
revalue boioro he paid the sinking lund. just aa tbe
muuager ol u railroad would be bound lopuy Ills bauds
and luroirh lha tuel to run bis looomottves betore bo
would ??7 the intoraat on tbe ttrst bonded debt.
IIr. Kwii>g?Waa not tbe public debt belug redoccd
all ttiui tuner
Secretary Saau*AS?Up to the panic of 1873 It waa
being rcduced all tha time, and wa paid mar* during
all tlinse vears thau the law requirsu on what we call
tbe eitiking fund?that is, tha redemption ol the debt.
Mr. Pblups?From wnat aaurce did the paymouts
ootnef
Secretary Sbbrmas?From aurplus revenuaa, and
ao it continued until 1873. Then all at once tbero
was a deficiency of $10,000,000. Well, tbe Secretary
of the Treasury, aa a matter ot course, would go du
and pay the ordinary uxpouses Aral, aud if tbero was
atiy deficiency bo would report tbat deficiency to
Congress, and it there waa any fault about it It waa
with Congress; lor Congress should either provide
i Uiiiou u revouuea to keep up tbe sinking luud or
t-lio should reduce appropriations. Mr. Hicbardaen
was Secretary ot tha Trousury when tbo
ilrst trouble took place. Tho exact condition
of tho l'reaaurjr waa given two inontba after
tbe panic and ao on by every Secretary, and
aa Congress did not leel disposed (and I thin* right
fully. I was in Coiigratw myaell at tba tlmo and taka
?ny ahara of the responsibility) to levy new taxes
upou the people in a time ol great utatress. this de
ficiency in the amklng lund waa allowed to continue
irotn year to year until now, and 1 presume tbat it
will ba allowed io continue, although u Congreaa can
see ita way clear to levy a tax upon tea and eofle*to
make good the sinking lund I would like It vary raucb.
but 1 do not think Congreaa will do aa
Mr. Kwi.no? I gut>*a not.
Secretary shkkmas?Bocanse 1 do not think tbat tha
people would busialn Ooogreaa in It. So I do not tblnk
tbat tuare can bo any juat ontloiam In tbrowlng on
tbe sinking fund the actual dellcieocy In revenue, be
cause any Secretary ol the Troaaury who would under
take to roinse to pay the current axpenaea ol tbe gov
ernment, and who would at tbo same time pay tba
whole amouut of thia teohninul sinking lund in tbe
purchase aud payment of the debt would be over
hauled vory quickly.
now TO MIKT A DRAIJt OP KOI.II.
Alter the exhaustion ol thia point IB tbe conference
Mr. Kwlng pui tbiaqueauon to the Secretary:?In case
' ol a drum ot gold Irom tbe Treaaury wbat measure
would you resort to In order to cbeok It, 1 mean alter
resumption V
Secretary shkkuaii?Tba Troaaury ought to ba ao
strong that Hie thing wonld obeok Itself. You ean
scarcely imagine in the probabliitiea of bualnass that
wltli uo outstanding liabilities that are not covered by
actual cash In hand, except tbe $300,000,000 ol legal
tender notos, tho drain upon tba government would
bo so groat as to exhaust the reservo ol $120,000,000.
Tbat proposition ia all based, not upon the fact
that $120,000,000 would pay $300,000,000? we all
Know that ia not ao?but upon the tact that It la im
possible to gather together United Statea note* and to
pr-aeai thorn .u such a mass and in such a continuous
stream, and that tbe very effort to do ao would ralao
tbe value ot United Slates notea Their eouventeneo
la ao groat and the neceaalty for th*m ao apparent
ibai sucn an effort would at once bring them up to
par lu gold. I think tnat a dram of Ov*, tan, flflean
or twooty million* would at oooe tend lo bring up tbo
value ol greenback* until they were at par in gold,
uo i then there would be no ohjact at all m drawing
them out. . . .
Mr. Kwtsu After resumption the greenback must
remain ui par in gold aa long aa ib* Treasury m?m
taioa resumption. _ .
Secretary sbrrma* -Certainly, and while tbay ore
at par In gold they will not be preaanMd to any con- |
gtderalde extent
Mr. Ewiso?01 course, II there wa* a* established
differenea ot one per cent or half of ono per eeot be
IWIM.M gMu and greoubaoka tbe Tre^turr would be
broken pretty quick.
Sscrotary Siikkha*?Yet, air, or a quarter of on?
per ceut; there m ne doubt about tbat.
Mr. Kwtxu?Therefore, after resumption, green
backs must ncccraariiy be at par witli sold ao long aa
tho Secretary ia able to maintain rosumpilon. Now,
I am aunpoalng a case of drain of gold from tho
acilou of foreicn creditors or from any other oauae,
oud waul lo knw*r wbat meana you would rcaon to to
check It.
Socretarv Sim****?I do not llilnk lhat It would bo
necessary to rraori to any meana; but It It were ne
cessary to dev se some moans 1 would roaort io such
as Irnve been adopted In other countries?tho tempo
rary stisp<o*lon of ? peelpaymon-. Tbat la a ques
tion lor Congress. Tbe llrltiah Hank act which is ao
otten quoted as tho slaudsrd, makes no provision lor
suFpens'nn. Tbero Is no legal suspension ot payment
in Holland, nor does our law mnk* any provision Ibr
it. li the government abould meet such an adverae
state of circumstancea oa to make ?uspe*?ion tbte
Intelv necessary tho government would necessarily
havo to take the r*?ponaibllny of It, loariug Congrats
to determine whether tho clrcutnsianooa justified It.
That bas always boon ao.
Mr. Fittii.tr*?Then do you think that the beore
tary of tbo Treaaury baa power to suspend specie
pay monl f
Secretary SrtrRBA*?No, air; but It demands were
made upon tho TreaMury which tbo Secretary could
not pay unless he was to piy them ou? ol hla own
pocket he would have to atop paying. That Is all that
there la about It.
Mr. Kwisk?When abort of the point of your actual
inability to go farther would you feel at liberty to
Secretary Sii*r*am?That I cannot state. That will
not occur in my timo if you give me such a reserve
aa 1 mention, aid it will not occur at all in your noio
or in my timo In my Judgment. Hul we cauuot *n
lirlpate what the future will bring lorth. We do not
know but thst we may be involved in war which
would compel a suspension of payment and wo do not
know what might be toe effect of w>r in Kuroo*.
arrurr or war in araor*.
Mr. Pmt.wrs?I waa going to ask you oo that very
point. Would noi a general war ia Kurope result in
raising the prlcu of gold T
Secretary .^mskwasi?Wiso men differ v*rv much
ui on tbat 1 think tbat a general war in Kurope
would give sticb a demand for our agricultural pro
ducts and lor everything that w* produce and sell that
it would probably inspire confl-leoce and there woaid
be ie?* danger. . .
Mr. Fitters?M'tlit U not raise the ptlco ?* gold as
conip tred with currency f , .
Tb* eitantWAK?wigni it not bov? the effect of
sen-ling wor bohds h*r*f
Secretary Wo are set bound to pay for
our IkiO'Is unless thoy are d*je.
Mr. Kw?n??Jttut bank-* snd o'hera thai hold gold
would bo tempted lo buy boLda and tlio gold would go
. 0111.
1 Secretary 0RMR*AV?I do not think so. ! have
sb-iwn you now to tbeso figures that with eticb a re
M-rvo at I have wootioned the government ot ttie
' United stale* ib stronger lor resumption ibio the
i Ilank of Kntiana?
Mr. K wt mi? I? now?
Secretary Siikh max?So; I any will bo If you give na
tho reserve I nieution. It will then bo stronger than
tlii' flunk of Kuitmnd.
Mr. Kwiw?Vou said on Monday thai it la now
atroeger.
??arutary Hiixkmax ?i do not think thai it la now,
lint I any tnat before tho 1st of .unntry, wltb aa ad
dltionnl reserve ol $ftO,00(1,000, and If you wll provide
enough mrou.4 to carry on the curroni expenses i f i ho
fovernniont, with or without reg?rl to tlia sinking
fund, wo will b? stronger than the Hank of Kagland.
| lr you mako good Hie Making land ?? would
ue better oil; but If yon do not make it good
it does not sff-cl tba question ol resumption.
' With thitt f'?fl.nno.OOO a 'dlttonal (making oar
rosorre $|.so.<nio.oo<> or fM".oon.fl00), witb mo fact
that our nut.-* are ot oaivurnal credit and ara dlatribu
iad throughout tbta gram e*t-m ol enuntry and
iimonii 4'l.HOO^OOO ol people, with the tact that
$70,000,004 ol our notes m ?<?w io tbo Treasury oot
Iikcalled up?>iv uad with tba tac t tnat the
tviokK hato to take earn ol $70,000,000 more, which
they cannot run In upon ua wittiout am jeeitnr them
Helvo* io tbe violation of the law ol ihetr creailoo,
with their notes absolutely secured by United Stales
uote*, U wi' cannot maintain xpecia payment then it
l* ?mpoanMe to maintain spwcto payment on a paper
cirmiai ion,
I na ( iuium-is?'I'hal is on the theory all the lime
th.it fapor and gold ara equivalent.
Heert>t?ry Hura**a?Certainly, fpeoie payment
nioana the eqwiTuleoay ef gold and patter. It la on
tho theory that thn one jier cent diflor?nce between
gold nnd stiver will disappear beforo the lat of Jnnu*
arv that I propose to eommonco apecle pa?menl?; Out
suppose that I am mtatnkou; auppoae tnat your teara
urn woll grounded, and tbat I .mi oversangume, a*
dome people -ay I nm, atlll Congress will meet in f)a
remix r, and|ltieii I fie qiirntion will ba so apparent to
every man that, if the Keauniplion act cannot bo oar
ried out, I shall come to Congress nod sar that I have
been nimble to accuniutalo thia reserve, or that an ad?
verno stale of r.ircuniatanees has arisen and tbat 1 am
unaiile io do what tbe Resumption act requires ot me
Mr. Kwiaa?Hut in the mointime the oountry Is on
the rsck and torture of preparation for impractical re
mi million.
rot a ha nan phwhss.
Secretary SnKMHAN?I here you'.re mistaken. The
proe*sa toward resumption la not a haran prnoesa.
What la harati and what li.n lieen of great wetuiit upon
Ike people has hero tbe elleet ot extreme paper infla
tion, resulting in the panic of 1*73. slxieen or oigbt< ?n
uiontba before the paaaage ol tna iiesumptton act.
Last summer, when I sccumulsiea 180,000,000 of gold
and iu going on refunding ihe dooi, every sign of
prosperity ni mcreaeiog and ouemoae wae goiuog
better.
Mr. fcwi*r._| hevo failed lo loarn Ibtl la four eon
lereuoe with lb* Seuate Com mil tee you spoke ol loo
pn-parsiiou lor resumption aa "Ibe agony ol prepara
nou lor resumption." and I think tbai Hie couutry
will agree with you (bat (bare i? a good deal of agony
in it.
Secrelarr "hkrijan?Wherever there la an evil
cau -ort by Inflated money the Instincts of bumsn
uaturo lead men bnck 10 specie paym.-nt. and tba
whole proeeaa irom l*ij down to iu? preaeal note ta
a process lowird roauiuptieu
Mr. Ewinu -li tne Resumption law bad never been
passed the country would have revived from tbe panto
ol 1873 during the year 187?.
Secretary Sukkmak?Vou and I, no doubt, differ
vary honestly on that point.
arraiT on tiif national bank*.
Mr. Hartzrli.?Wbai woald tin tba eflectol tbla Re.
sumption act upon tbo uauonal banks and tbeir da
positors ?
Secretary Sherman?1 eaanot aee that It will have
auy injunou-i efleot. Whoroin r
Mr Uaktzkll?I understand Irom your statomonl
bore, last Monday, that (he ualional bank* bold
$600,000,000 ot deposits. '.ack of loofldenco might
induce tue depositors to go to these national books
and demand on ibo lm ol January. Jr aoon alter lbs
re-iimptioo act lukos effect, a large unioant ol gold.
Secretary .-nBHHAH?No; I'nllod Stales notes.
Mr. Phillips?Wbicn wuuld command gold.
Mr. IJaktzkll?And il tlio bauk* aid not bava tbem,
and tbo supposition la tba( tboy could not?
.Secretary SnXRMan?All tbe national banks In tbe
country have out fio,000,000 ol greenUacks.
Mr. Mart/ill?ruo oauks would bavo io furnlab (o
Ibe depositors eitner gold' or groeuoacka, but tboy
oould not lurnibb either to ball the amount of tbeir
depoaiu 1
Secretary Shkkman?No. air.
llr. Kwinu? Tne aggregate ol national bank de
poaita as stiowa by tno report ol the Comptroller Is
$A 120,000,000.
Secretary aa it km an (to Mr. iiartzell)?Your que*
lion la a very proper one. 1 cau only give you my
idea. All bank nu is basod upon Ibe idea that a larger
amount of paper money can oe maintained in eircuia
lion tnan tbe money iti which lt is lo ou redaemed.
Otherwise there wonl'i be no object In banking. Ttia
Hank ol Kngland and the amail banks ol Knglaua
maintain a ca?U reserve varying Irom nine per cent
up lo about thiriy-ihreo or forty per cent. Tbe Dank
ol France and the Hank ot Oertnany, wbieb ate really
government depositories, maintain a large resorva A
reserve ol forty per cent wuuid be eouaiuered a very
large reserv.. l uo only anawer lo your question is
(bat experience bat shown to toe satisfaction
ol tbe banks, mat ibeir deposits will not be all de
manded. 11 tuey are demanded the/ will be paid by
crodlta. Mosiot tbeae depositors are debtor* io the
banks as wall as creditors of iba basks. Tbey sre
customers. Tne balance ol credits would pay oil a
good deui ot ibe deposits ol tbe banks, and experi
ence shows tbai n certain ainouol of money on hand
and available, with a good hue ol disoounta to sup
port ii, u sutliueni. As lo the noiea ol national banks,
ovory dollar ul tbem u secured by United States bonds
lo au amount oi al least ten per cent greater than ibe
amount of notes outaiaudiiiK, aud those oonds are of
auub universal credit ui,d ruady nine that, in ibe or
dinary course of busmens, they cau t>e very readily
coaveried into anr kind of money.
OTIIKH TBA.H NATIONAL HANKS.
Mr. Etnw-What about tno $1,600,000,000 ot da
pom la in oiber bunks than natioual banks.'
Secretary Shkrman?They are private Individual
debts. '1 be governtnoal boa nothing to do with tbem.
Mr. Rwinu?Tho government has oertalnly lo con
sider them in ibe act ol resumption.
Secretary Sherman?li baa io considor tbem just aa
It liaa to consider any etber public fact.
Mr. Kwinu?More tban thai; ibey hava a direct
bearing ou tne practicability ol government redemp
tion, lor tbo legal lender note is tbo only abanlulo
coin tbat oan be demanded Irom tbo aatloaal buuks,
and on too $300,000,000 ol legal tender notes rest
$.100,000,000 ol national bank notea and $'J, 120,000,000
I ol each demand doposits. That is all to bo consid
ered.
Soorstary Siiekjian ? It la all lobe considered, but
$10 will pay $10 ol deposits in the ordinary course of
bus mesa
what ooKirrmiTKR saaFVFTioN.
Mr. Uaiitzell?Does ibe mero iact mat Ibo govern
ment will, ou tlie 1st of January, be able to redeom
all ita legal lender notea, bring uh, of Iteell, to i-pecte
resumption ? la tbat wbat wo tneau by speoie resump
tion ?
Secretary Sherman?I mean by spacle resumption
not the payment of all these debts In com, but 1 mean
tbo equivalency of these I'm ted Slates notea wilb
coin, ao that ibe people will take paper at par wuh
coin, and ir tbey want ine coin they can gel it. I do
not auppese tbat one dollar oat ol a bnndred dollara
ol greonbaeKs will be presented lor redemption.
Mr. Martzkll?Ibe national bauka are close corpo
rations, as 1 uudorsiaud, and tbaro la a general under
standing between them on ail queauons affecting tnoir
interests, aa we llnd by their unanimity la applying
lor a repeal ol tbe bunk tax.
Secretary Siikrman?Mr. Chittenden hero can tall
you that there are no people who bave such diver, o
view* as tbe national banks.
Mr. Hartxrll?It It should appear tbat tbe safety
aad S' ourity ol tuaae national banks demanded it,
oould tbey not anile and get logetner such aocurilies
and preaeni tbem lo tbe Troaaury as would drain ma
Treasury ol all the gold tbat It baa. and tbua abao.
luiely prevent, by their combination, tho Secretary
irom carrying out the provisions or tue raaaroption
law ?
Secretary siihrman?I do not tliink, la tho
?rat piece, ili.it tbey would attempt to mako
such a oeaabiaetioo agaloat tbe govern meal, and, In
tho second plaoe, I think ibat, il ibey did, it would
bo very easily mat. It Is aot possible, with the
amoant ot legal teuder notes whion they
hold?admitted io be about $70,000,000? mat
tbey could taka tne wboio ol tbem and preaoat them
io tbe Ireeaury. Such a thiug ta not poaainla, because
the banks c<?u d not be brought Into anything llko a
on operation ot tnai kind, uor could tbey keep up a
continuous stream ol demand on tbo Treasury; und
then, besides, ihe Treasury baa aaiplo power to make
the Darks r> de ni ihetr notes;
Mr. Kwiau?In legal teuder notes?
Secreiarv Siikrman?Yes, in legal lender notea
Mr. Kwinu?Or in silver and gold?
THP. TRKAHl'KY AGAINST THK HANKR.
Secretary siikrman?Yea, that wuuld throw Iba gold
back on tbe Treasury. Some ot ibo papers ihougbt
that In my remnraa the oiner day ( threatened tho
bauka. I did not threaten tbem. but tbore ta no
doubt about it thai tbe Treaaury would bo atronger
thnn tho bank* in such a coniest. Thore is no danger
that tn? national banks ere going lo combine to pre
tout tbeir irgil lender notes to the Troaaury.
Iho ciiaibman?it would be much moro reaaonabla
to 'uppote that tbo banks would agree among them
selves tbat their oiillgationa and operations would be
id curreacy, and lliai tbeir cbecka would bo paid in
currency ra'ber than In gold.
Mr. IIartzri.l?Suppoae that the depositor* In the
national banks ahoulu run in and demand payment of
their deposits; would not tbe national banks be bound
to go under ?
Secretary siirrwa*?Tho banka can pay their de
positors in greenbacks, beoause greenbacks are legal
tender.
Mr. Uartxkll- How could tbey when tbera are only
anoul f'J'Ju,OOo IKIO al lliem in circulation?
Secretary mi km* an ? I hou, if tbey cannot got them,
how ran ibey pr?s?ni thorn to ns lor redemption?
Mr. Kwinu ? ihey have $70,000,000 which tbey can
proaent in a moment.
secretary shkhm tk?How em tbey bring
$70,OUO.OOO? Ibe national banks In New York,
where liie largest uccumiiialiou ol greenbacks la,
b-ive only got $1 l.OOO.ialu 1 think It li sullldent to
say that Mr. II irt leu's aapposition is an imuraciioe
bit- one?nr.i. because liiu bauk? could have an de
sire to do such a thing, and rooond, beeiuse II could
nol i>e done, u would have to be a very alow opera
tion. snd aritb a leaerve ol $ I go,000,000 or $140,000,000
oven ibat extremo dancer could be mot.
Mr. Km. .? -oppose the grcanbaoks were to obtain
an equality In value with gold, lioqr would tbe repeal
ol tho Kortimpllon sot then affect reeumpllon ?
Secretary .^iixmhai)?i be repeal ol tbo Resumption
act would prcveqt me Irom maititalDing resumption
by ihe eaie ot b-?nda That would be tba nrai thing.
Then the Koaamption aat le the only proviaion ol law
winch r< quiros uiu to redeem United Ststea notes In
ooln.
Mr. ITwiNti-?Hnl yiu are at liberty to do ee^ If ihe
neaiiniiiiion act werafre|toaied yoa might maintain ao
equivalency ul paper snd com.
-ecrciary mikkman? No. It is perfectly olear that
I liava no right to exchange one term ol money lor
another.
Mr. Kwi.no?Bat you eoaid pay oat gold and silver ?
Mcorvtary .-hrii?a??'Ves.
Mr. Kwinu?And you could thus maintain an
equality of cum and paper upon four theory, which
I*, that as soon as isper and o?ilu aro equai, noihlug
will be Lkely to or, ur m disturb the equalisation ?
Secreury .-hkr?an?There will bo more or loss Bur.
tuition, and m< muai be prepaied to meet ttioae Qac
i nations, io that il grcenliacka bocome ruporabuadant
we can net .old for them, or II, od tho other hand,
gold beeomea a drug, as il may, It will be deponed lor
greoabarns.
Mr. Kwino? Hot II greenbacks beoome super
abundant and arn presented to I lie Treasury for re
demption, you will nave to pay thorn out again.
Secretary .incnMAN?Yet, as sooa aa tba aqutvalency
Is reaiorod.
Mr. Kwinu?That la, vou will hold whatever green
backacoine in until there la an equieaioney t
Secretary naKnaaa -Yes, that is the eiT'it of It.
The conference lasted over thrao hours, tba Sec
retary showing no abatement at confidence la tba
ability ol the governmont to maintain resumption.
THE TRANSIT OF MEUCUliY.
TKLEGftAPR FtCIMTIB-t TO DB AfFORDED TO
INTENDING OUir.r.TfcBS FUOM tub 1st TO
tus 10th OF NAT.
UnlTIO STATRR NaTAI. ORRKRVATORT, I
Wamiiirhtor, Apr 11 4, 1H 74.)
For tha benefit of obaarvera arrangamanta biro
baan ma'lx witu tba Waatarn Union Telegraph Com
paay, wbcb are deaoribed In the aobjoined circuUr,
JOHN HODOKR'f,
R??r Admiral, aupernteii'ienl.
C IBrCI.AR.
At the ro<|"ipai of tbe Sup-rmtond'-nl of the United
Slntaa Na?tiI <M)?.Tv?lc.ry m \Tu?hmg?on, tha Com
pany haacouaented to tranamll Washington time aig
uai throughout ilia United Smita Iruro tbe lat to tbo
loth of May next, lor tha u?> of astronomer* and
other* engaged in ob?ervin2 the I ran* t ol Mafiirr,
wntcb la 10 occur on tha ftib pros. Tbo Obaerraiory
will ai-od a atonal dally at W.mbngton nuou from tl>?
1*1 to tbe 10th ol Miiy, ami ona aignal at A P. M..
tVaahlngton tim?. on th? 'lay ol the tranait. ?ap*r
IIHMHM ami manager* ara directed M lurni'h ineee
algnaia, m lar aa practicable, to persona applying lor
tha aame lor QM in connection with the lr?nait ob
servation*. WILLIAM OillU.N, l'raaidant.
COAL FOH EUROPL
Thf Exhibit of (he Philadelphia and Rradinj
Railroad Company at Parii.
SEEKING A COAI, MA I. RET IN EUROPE,
Sailing of the Reading Steam Collier Potts*
vilie and Her Important Mission.
Philadblfhia. April 4. 1178.
Tba steamship Pottsvillo, wlnob nailed from tnia
port for Usvre to day, Is bound upon an enterprise of
groat moment, dircclly to ibo coal mining ana carry,
log interests of lbs country, and. Indirectly, to many
associated branches ol American ludusiry. The Pons
vllle li one ol iba large bieam coillera of ibe PmladeU
pbia and Reading Railroad Company, and she croaaea
tbe occan not only to transport (tie exhibit of tbat great
coal carrying company to tbo Paris Exhibition, out
wltb a iiiuen more Important object in view, lor
there are reason a to bops that this voyage will
be the means of opening a European market lor
Amerlcao anthracite, and bv relieving tbs overstocked
bome supplies alleviate tbs long contlnaed doprcssiou
and salTering in tbo cost trsde sad Its kinured la>
lores U.
UiniCi) COAL FOB suitor a.
Tbls sodouvor to bad a trade witb Europe it
watched wub tbe greatest interest throughout tbs
whole coal region and Ksstern 1'onnsylvanla. Xoionly
tbo dsstlolosof tbs Heading Railroad Company promise
to bs affected by it, but svsry operator, minor, laborer,
manufacturer and general trader In tbs region, II IBs
suierpriae succeeds, will suo bis way out ol tbo present
stagnation wbicb causes so much suffering In tins
psrt or tne country. Some idea may be lormed of
tbo Isr reaching extent to wbich tbo prosperity of
Eastern Pennsylvania may he affected by tots under
taking wbsa It Is known that tbo Reading Railroad
sod tbo Coal and Iron Company together have 23,000
employes, thus making, at a tulr estimate, 100,000
people dependent upon them. It Is but nstursl, tbers
lors. tbat tbo sailing of tbs Pottsvllle to-'tny was looked
upon us an event of more thaa ordinary intsrsst, and
tbst there will be much anxiety to learn tbe result ol ibs
public spirited endeavor of the Reading Railroad Com
pany, tbs only railroad corporation m tins country?
or in any otbsr, so lar as known?which will uiaks ?
representation at the World's Fair iu Paris.
THIt RBADING RAILROAD AT T1IK PARIS KXIIinrTIOK.
The Potiaville lakes out samples ol coil olsli sizet
and kinds Irom tuo srnuyliciii collieries?Irom poi
uoal to the lump sue. The design of the company is it
illustrate practically (ho advantages ol using, both lor
mauui'icturing and domestic purposes, the hard, oleaa
coal of the United Sutos IB preference to too soft,
bituminous coal ol Europe, wnore anthracite is noi
lound and Is almost unknown, for purposes ol prac
tical illustrstlon stoves of sli kinds aro to t>o used, and
part or tne cirgo of tbe Pottsvllle Is iwenty-ibre?
cooking and besting atoves to be exhibited, as abow
iBg bow coal is burned In tbts country,
A* ISTKKSSTINO BXIIIUIT.
On* Item In Uie cargo ol the Pottavllle, which will
be as novel even to Americana as our coal can ba te
ibe foreigner, Is a steam locomotive euglno on a nM
principle, tbe Invenliou ot Mr. J. E. Wootten, tns
General Manager ol the Reading Railroad. This en
gine, which this company Is now adoptlag and substi
tuting tor tbe ordinary kiud, is oonatrueied to
burn wssto uuthracne, the refuse dirt and dual whlca
every visitor to the coal roglons notice* piled moua
tain nigh noar every collery, and for wmcn, until re
cently, no use was evor discovered. 1 he engine seas
over lor exhibition waa built by tbo oompany for a
fast freight locomotive. It baa ten wheels connected,
a four-wheeled truck, wltb driving wheel a of loar and
a hill leet diameter, and weigha tblrty-Uve tons, tia
pecallerity lies in its furnsce, which has a very
greatly enlarged area of grata aurlace, being over
eight leet square, i bo total grate aurlace being alxty>
tire square lost i he grata Is composed ol water tabes
end Intervening cast Iron bars, tbe spaoea between eacb
pair of bars being tnrea-sixtoentba of an Inch. The
engine steams so freely, when these bars are covered
wltb a Ore ol coal dirt, that It baa bean round aeoes
sary to ptaoe In the lurnaoo aoora valvsa similar to a
register plate, to eheck tbe draught irom time to tint*
by passing oold air over tho lop of tne Bra. There
are lour ol these ecginoe in use on tbe Reading road,
and five mora aro under way at tba shops. The Qrai
waa but It about a year sgu.
TURKS rMNTS A BILK.
A practical toai or oaa of toe aaginaa, la
bauliug coal trslaa for ooa month, showed tbat
the fuel used cost only throe ecnta per mile,
ssataai twelve oents, the coat of running an
ordinary engine. Tbe coal dust Is to be bad lor
nothing, but hauling und handling It makes It cost
a triOo. It boa sIho been lound that ao far Irom nsing
s greater quantity of tbe small pea oosI, or the dust,
Ibe new furn.ico actually u?cs leas, a lact which 1 am
told by one of tbo officials of mo road I need nol
troubio myself to print, as it will nol he believe!.
Tbe nine grate will also bura as well as tba dust sny
i ot ibo Isrger sises ol coal, sad the grate is slso ap
plied to marine and stationary engines. The engino
I ?ont to purls is No. 412, that representing tho num
; hor consecutively hunt at tho Reading shop*. It war
' ordered ou tbe 14lb of Kebrusry, and waa con
' strucied m iwenty-ono working dsya It id plainly
finished, like an ordinary ireigbt engine. After the
exhibition tbe engine Is to be tendered to some ol
ibe rs 11 road compaulesol Eu rope to lest its advan
tage. The Psttsville carries 400 tona ol coal lor luel
fortius purpose, lbs various sixes, Irom dust to egg
coal, belnc represented, ll is predicted tbst ibis ini>
provment In railroad snglne building will be sn ex
tremely striking fcatara of the United states display
at the Paris Exhibition.
thk FomriLtB.
Tbe Pottavillo I* the newest oi tbe Reading aolliers,
being numbered 14. Kbe is a *ub?inoliai;.v buitl
Iron ship, water bottomed, liermapbradlto brig rigged.
She ia 2A() foil long, hn? 3D feet be*m una IB leal depib
or bold. Uer rogis'.orod lonnnge is 1,2*3, but shecarriei
usually 1.740 tons ol co*L Kor this voyuge ahe.is not
loaded deop, having only 1,300 ton* ol <laad weight.
Her preaanl or nr.* hi ia 11 I pel forward anil 15 feel 1C
Inches afi, which will b? reduced wbao aome ol tns
*00 lona of pea c mI, wbicb Mio carnaa for her own
taiiutK, la reduced. .<a U will be at ibo rata of 20 ton*
per diy. *ba la propelled by a alnglo Inverted direct
actlug sarfacr-coiiaensmg engine ol 500 horse power.
Her officers are a* fallow* upon the preeent cruise: ?
Captain, S. #. Collmrii; First Male, H. Price Walter;
Second Hate, Jena llnnson: Cbtel Engineer, John
Catnplioll; First A*aiatunt Knguirer, John Oeltnar;
Second Assistant Fnglneer. W. M. I.aineback. There
la a crew of eighteen men, and there are roar engi
noers to take cb?rge of the exbtbil and i bo loo on o.
tiveeagine. They aro W. F. Woollen, C. O. Hlefte, a.
D Bisokmaa and Oeorgn Field, Mr. Woollen Is a son
of the general manager, a thoroughly competent me
chanic*! engineer, at wbicb bu* note ha ha* served
bia time a* an apprentice. The agblblt In I'arla will bo
In charge of Mr. Kijxe, and willbailinstrated by aaerlee
ol mape, drawing*, plana. Ac., showing tb?
shipping facilities or tbe immense docks ol
the .company at Port Richmond?wbora they
bsv# ?Ver a mile river frontage?sad alto
Ilia distributing factlttias ol tbe main line *n?J
Ita brunelter.. A atngie imaaot coal. w.-igblng 10,000
pound* Is another part ol Mi? exhibit ol the Heading
Compaay, bat it was sent by tbe Uonrtliutloa.
The I'oitsville left Port Klchrnoad at tea mlaulM
paxt eleven ye?teraay, amid the silutesof a Ur?re
crowd or spectator*. ?Jbo #ns accompanied down iba
river sa l?r aa Obeater by I amall party of officials on
tba company's tug.
ACQUITTAL OF LOVISA BO WEN.
Nsw lionoX, t'onn., April 4, H7&
The trial of I.ovt?a Kuwtn on tba charge of mat*
slaughter lor tukiag the life of Benjamin C. Muzsy,
at N'orwlcb Falla, la October laat, resulted to-day iu a
verdict of rot guilty. "The circumstances attending
tbe dead," says tnn Bulletin of to morrow, ' are anil
involved In much mystery, and, ao far aa ths
public are concerned, will remaia ao forever.
The aecn*ed leenlted In bar own l<enaif, bat
name ol her statenicata conflict atroagly witb
tba testimony ol other wiino.?e?, anil it is
generally thought that much la concealed Ibe jury
quickly arrive I nt iheir unanlmoua verdict. They
were charged i?y Judge Saulord tbai, ioa?much aa it
was admitted by Ilia d'fsnce that l<ovlsa Bowon coin
milted tne homicide, they were to connder mat point
eaiaoiiabed I he verdict therefore ataada on tba
ground of justifiable homicide.
Miss Itowen killed Muzzy by striking bin upoo tha
bead tit limes with a I archill hsk She found Mossy
la tha parlor of her ramer's liou?e at two o'clock on
the morning ol October li* I ist, an I, ?* she ?wears,
mistaking niin lor a burglar, attacked him Tbe de
fence claimed Justiflsble homicide. The theory of Ibe
prosecution was tbsl Milrtj wm her psrsmonr, and
that she killed him in a lit of Jealousy. Tbe girl is
twenty year* ol *ge and quite #ood looking. Musty
bad a wlia and two children.
BRUTAL ASSAULT ON A GIUL.
H mm.*row*. N T.. April 4, ItTM.
Miry Tomer, s Mspeatable girl, Iwenijr-tbrea year?
ol age, employed aa a domestic here, wbllo on tbe way
to visit her sister at Howell's, was aaeauited at noon
?r?-day oa iirn Kna Kstlrosd irsck. hbe was kaoeked
down with a *langabot, reoeivlng uglr wounds
about bar bead. Ilrr .nsa'iant waa frightened swii by
truckmen, who found the girl luaensiote. iba 'msu
was suiMeqiienily arrested, hiving aitetupted to rotr>.
nut aaicido by nearly aevvrins bia wriat wltb a
rasor Ho w*n mtoiicaied wtiao arreatod, bat ad
mitted tbe asaault.
LAUNCH OF A YACHT.
Nswscso, K. T., April 4, 1117*.
Philip Pbwnlt'S Staam yscbt Vtdtttc waa tttcovflh
(ally isaocbed bare to-day.