The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-02
SENATOR sHERMAS,s FINANCIAL VIEWS.


be out OF place 10 give you those of Senator Sherman
chairman OF the Senate Finance Committee on the
same subject The Senator from OHIO is perhaps
more conversant with the question than any other
man IN the Senate, and his opinions are therefore
entitled to respect and consideration Ever since
his advent In Congress he has been more or less con-
nected with the public finances. In the House
OF Representatives he served on the Committee OF
Ways and Means, which In those days was the
leading financial committee OF the House. In the
Thirty-sixth Congress he chairman OF that COM
mistee, and was remarkably successful IN getting
his measures through both houses. sherman has
always been practical man. and he has enough OF
the conservative element III his nature to keep HIM
from being led or into wild visionary schemes, or to
advocate policy which would involve the country
In financial embarrassment and distress. His dream
for three years past has been the funding OF the
national debt To this subject be has given the
closest study and the most thorough investigation.
No man probably In the country, not excepting the
Secretary OF the Treasury, better posted on this
matter than Senator Sherman. No man certainly
entertains clearer views OF how 1t should be done.
aud what would be its effect upon the public
finances ana the general business OF the country.
Your correspondent found the Senator at his resi-
dence, busiy engaged In experimenting the lacking
down Of carpet and putting his house IN order for
the reception OF his family, expected tomorrow.
Sherman has the reputation OF being cold reserved
man. shy OF strangers, and disposed TO keep a close
mouth. He is unquestonaby man OF great pru
dence, good Judge Of men and things, and has the
rare gift OF knowing when to speak and when
10 Keep silence. But to those who know him he
As genial and at the time dlgniaed ana
urbane, always willing To communicate what ne
snpposes VIII be OF interest to the public. Like
his distinguished brother the General he is a
man OF Iew words and always to the point
Senator Sherman Is yet In the prime OF life
Of toll
stately In appearance. lie mas u good sized,
compact wei shaped head, with the nlgn, broad
forehead peculiar To his family HIS features are
sharp, regular and handsome wlthal ANY person
not knowing him would take him TO be a we-to-do
banker or merchant, and had MS lot been either
In Wall street or on Broadway, he might have been
one OF the mIlionnaires or the land. 1t s pro-
videnL management OF ms own affairs has, no DOUBT
placed nun 10 position OF comfortable mdepen-
dence
was reading his celebrated speech on "The
Public Debt and The Currency delivered IN the Sen
ate the nth OF January, 1862 he entered the
parlor. After exchange or the customary sauta-
lions. said, 'sena1or want to get your views on
the financial question, II yOd nave time TO give
them.n
Senator sHERMAS-Tel, don't know that have
anything new 10 say on that subject. My views
pretty iuly Set io!tI il tnat speech you nave been
rcaolng.
year ago, ana thought probably your opinion mad |
undergone some cnange IN that time.
senator sAk asii sur; not any material
my funding bill would nave done mucn towards |
putting our finances IN better shape, and Dy this
time believe we would have been well on the road |
towards resuming specie payments.
CORRESPONDENT suppose you viii bring your
bill before Congress al The approaching session ana
andeavor to have 1t passed.
Senator sHERMAN-l cannot tell what the Finance |
COMMITTEE Will DO, though at lhe last session that
Dill vas very generally adopted by tAem and reported
with good zeal OF upanlmity You know 1t passed
the Senate, but the trouble was in the House
great many members there especially IRON my own
section-the West-were AFRAID L would lead TO
injurious contraction OF the currency and OPPOSED
itprncipaly on that ground have been fredtently
nauled over the Goals by my own constituents for
advocating that bill but have heard any argu
ment against IL sufficiently convincing to MAKE Inc
alter my opinions on that subject.
CORES PoNDEST-Mhat do you think OF re suminy
specie paynlentsY
Senator sHERAAN-well, cannot say when we |
ought TO resume-that Is when We will DE IN a CON |
.dltlon TO resume, cannot tell when going to
die, whether 1t win be months twenty years
hence, ana would just as soon predict taaI event
Is TO prophesy when we VIII resume. The way TO |
resume Is TO resume when we get ready, before
IL this question OF resumption affected alone the gov
eminent OF the United States We might resume specie
payments very soon; sooner than Is proposed by the
most sanguine advocates OF RESUMPTION BY fuudlng
portion OIL the United states notes. by requiring
banks TO manaiu their iull reserves VI legal ten-
ders; by Withdrawing the three per cent certificates
anu by tue use Of Tue gold III the Treasury could
resume at once. THIS process might Increase the
bonded debt OF the United STATES :loo,o0o,ouO anu
the interest s5,oooo0o; but revenhcs are ample
~ old 70 pay the increased interest," aud tins actual
saving Ia The current expenses OF the gov
eminent by the reduction of prices 70
I
perhaps quadruple the increased interest The body
VI expenditures being the interest Of the public
debt, winch IL now payable III gold, Its buraen
Is not Increased by specie payments, while the saw
Ing expenditures and the probable saving by the
funding OF the debt at lower interest would largely
exceed any Interest we would nave TO pay on notes
Withdrawn from circulation. Even II the burden OF |
resum plion fell alone the national banks the task
would be an easy one Their securities deposited |
with the treasurer OF the United States are now |
Deariy equal IL gold " the amount OF their crcula-
tion. CAL under the banking act Of ten per cent |
Ad1
BODY OF tnem ana thus they would be able
whenever the United states Is prepared to resume.
Those OF the banks not now strong enough TO per-
form the great OBJECT OF their ation-nanely
furnish uniform currency convertible into gold,
may well give way 20 other banGs ready to take Their
places
CORRESPONDENT this being conceded, Mr..
Senator, what IN your opinion Stands IN the way OF
Immediate resumptonS
Senator SHERMAN-I am coming to that. You see,
redemption ny TIE banks means redemption by ali |
their aeDtors-Dy tue merchants, manufacturers
and OF the country. We are therefore CON-
peled TO deal with this question: not 1t affects the
United States ana the banks merely, but as 1t affects
ali the people. person entirely out oil debt, but |
possessed vi property reproductive value, would not
be arected by the Change. HIS property would be |
oil less nominal value but II would be OF the
intrinsic value 1t will buy the same food and ne
OF lie. The relative value OF commodities
but ed py suppy and demand the the earrey sS e
preclated IL Will take more OF 1t to purchase the
tce. IL II Is appreciated 1t Will take less; but the
appreciation or depreciation OF the currency does
not affect tne price OF other commodities IN their
relations TO eacn oher. Tns can only be affected by
the demand Tor them, by the supply them ana ut-
mately by the cost OF proaucing tnem The
value OF labor, however may be disastrousy
affected by the mode Of appreciation. II IL is |
brought about By sudden contraction the result
wiii DC suspension Of work OF enterprises and
Bequenty reduction In the price Of labor. Mer
chants, dealers, traaeTs bankers VIII be affected
by an appreciation OF the currency precisely as their
debts and Greats bear 10 each other. II they owe
more than they can promptly collect debts due TO
them they must lose to the lu extent OF the appre
cation. as general rule any appreciation of the
currency Is Injurious TO all these classes they are
generally In deot-and even where enough IL due
them " pay with, yet the ueiay IN payment or the
failure OF their debtors would embar6ss them. But
the distress caused by an appreciation OF the cur
rency would fail manly the debtor classes; Others
would suier only by reason or thelr Inability 10 pay.
Specie payments TO doctor means tue payment OF
u hundred aud Twenty-Five or thirty dollars where ne
has agreed to pay hundred or which Is the same
tning, the payment Of hundred whore ne agreed