The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-12-02
THE FINANCES.

N. Y.
writes as foows:-
senator sherman s yet in the prime of life-ony
pearanCe. lie has a good-sized, compact we'll
shaped head with the high, broad forehead peculiar
10 his family, His features are sharp, regular, and
handsome withal Any person not knowing him
would take him to be a well-to-dO banker or mcr-
chant, and had his lot been cast either in Wall street
or on Broadway, he might have been one OF the MIL
Onaires OF the land. As IL is his prOvdent iAanagc-
ment of his own affairs has, no doubt placed him in
position OF comfortable Independence.
was reading his celebrated speech on "The Pub
lie Debt aud the Currency delivered in the Senate
on the 2Ith Of January, 1862 he entered the par
lor. After an exchange Of the customary salnta.
tons, said, 'SenatOr ! want to get your views on
the financial question, II you have time to give
Senator Sherman-I cannot tell what the Finance
Committee viii do, though AZ the last session that
bill was very generally adopted by them and reported
With good deal OF unanimity. You know it passed
the Senate, but the trouble was in the House. A
great many members there, especially from my own
sectiOn-the Wcst-Were afraid it would lead 10 in
jurous COntractons of the currency, aud opposed It,
principally on that ground have been frequently
hauled over the Goals by my own constituents for
advocating that bill but have never heard any
argument against it sufficiently convincing to make
me alter my opinions on that subject.
CCTrCspOndCDt-Mr Senator what. In your npinion
stands In the way OF immediate resumption2
Senator rShermSn-Redempton by the banks means
redemption by all their dcbtors-by the merchants
manufacturers, ana traders OF the county We are
therefore compelled to deal with this question, not
It Affects the United States and the banks merely
but as 1t Affects all the people. person entirely out
value, would not be affected by the change Ills
property would be OF less nominal value, but it
would bc OF the same intrinsic value. II will buy
the same food and necessarcs of life. The rola-
tive value OF commodities to each other
is not affected by the currency used
but by supply ana demand. If the currency is de-
prcCiated II viii take more of it to purchase the artt
Gle. If II il appreciated it will take less but the
appreciation or depreciation OF the currency does
NOT affect the price of other commodities in their
relations to each other. This can only be effected
by the demand for them by the supply of Them and
ultimately by the cost Of producing them. The
value Of labor however, may be dsastrously affected
by the mode Of appreciation. III it is brought
by q sudden contraction the result Will be a slIs-
pension Of work, OF enterprises, and consequently
reduction in the price Of labor. Merchants, deal
eTs, traders, and bankers Will hc affected by an ap
probation OF the currency precisely their debts
and credits bear TO each other. II they owe more
than they promptly collect on debts due TO
them they must lose 20 the fun extent of the appre-
ciation AS a general rule any appreciation or the
currency IS injurious 10 all these c1SSCsS for they
are generally IN deht-aph even where enough Is
due them to pay with, yet the delay in lyment or
the failure of their debtors would emharrass them
But the distress caused hy an appreciation OF the
currency would fall matnly on the debtor classes;
others would suffer only 10y reason Of their Inability
to pay. Specie payments to a debtor means the pay
ment Of IA hundred nnd twenty-five or thirty dollars
where he has agreed II pay hundred, or, which is
the same thing, the payment Of a hundred where he
has agreed 20 pay sCvcIiy-nyc dollars. 1t means the
addition Of at least onc-iourth TO al the currency
debts in the United States
COrrcspOndent-Thcn YOU think resumption should
be gradual?
Senator Sherman-Ycs Good faith and nubuc
policy demand that we appreciate our currency TO
gold; hut in the process we must be careful that
bankruptcy, distress, ana want ito not fail upon the
MASSES of the people. The debtors OF this country
include the active, energetic, entcrprisng men in
all the various empoylhents ol life 1t is serious
proposition to suddenly change their contracts
in elect 10 require them TO pay onethird more than
they agrecdNo pay. they should have reasonable
opportunity to change their contracts to adapt
them TO the new standards OF value that may be
prescribed Tor them.
Corrcspondent-Do you think, Mr.. Senator, your
funding bill would answer the purpose aud produce
gradual appreciation OF the currency and ultimate
resumption OF specie payments?
Senator Sherman-les: that was the idea, and
think II the plan tried it would be successful.
The first section Of my bill, which relates To coin
contracts, might be dispensed with now, the Su-
preme Court OF the United States settled that ques-
tion last wintcr but the proVso which prohibits IL
from applying TO contracts Tor the borrowing OF cur
Tency may be OF service
Here the Senator handed your correspondent
copy of his hill, with the alterations he proposes
IL win be observed that the principal change is
what was formerly the second section, but will now
be the first Instead OF Sl40 600 900 of the duties re-
Ccived from imports being Laid aside annually for the
payment OF the interest aud Tor the reduction OF the
principal OF the debt, he proposes to make 1t $780,
| O00,OtO The bill Is as iOllow:-
il snagteG BY the Senate and House Of Representa-
gf hnt & 9Ts sGeS eSos % sW % ont "a a duties
n9av which sum dufihS each fiscal YEAR bS an
tohe payment the interest and 70 the reduction the
in lieu OF the rnng fund proyit cd by the fifth section of
stStes notes and or the redem or fundns tSers
ana for undng the floating debt of the United states
Seeon2 And be itisr{peE ep@sted That the holder of
tty dollars. any multiple OF ify dollars, may convert
| bonds equal IS heroiu
Vded such rules and regulations Secret lry
vi the Treasury may prescribe. And the Secretary Of
| treasury hereby authorized 20 issue snah
holder coupon registered bonds of the United
dollars he uay prescribe rodeemabe in coin atthe plea
United States, after ten years. and payable in
in forty and bearing annual interest y
per ceut payable eniannuty IN when said bonds
shall be exempt taHaon In any or uud ar
State municipal local authority and the and the
interest thereon and the income thereirom shall be
United States other than such income tax as may DO
Section And bo further enaced That tho Secretary
the Treasury hereby authorized and required saue
gold tho United States, not bearing interest
payable bearer senaud In cOin at the Treasury oi
the United States, ia form and OF such denOmina
gold shall be- receivable all taxes, duties
debts payable the luitgd States and the Sacreta
the Treasury + also authorized, at his discretion to
apply amount OF such Gem notes, not exceeding th
amount of United htItrS notes surrendered Tor
| convention into bonds under the preceding sec.
iioa OF ths act; 10, tge tsv purchase, purchase, IN open
Uf the securities OF the Uu States bearing per cont
interest; theeupOu the ssuTetny ot the Treasury
shall cancel an nnuuut on sara Uned states nOtos oIaal
10 the securities uurchsed aud said coin shall
pAid liabilities OF the United States nj
the option oi the eredtOr provided, however that the
aggregate coin issued uudCr contract ana the
the ana bullion IN the Treasury OF the United States;
and such coin notes shall be paid according their
terms ANA he ressaed from time TO tme the
| Esncieh oi the public service snail Icqnro. r.
Section And he 1t tufther ouaccd, That banking
association organized, or that may be hereafter
gaulod, under the act entitled an act TO provide
bondu provide the circulation and redemption
thereof approved June y 1904. IS hereby authorized
without respect 10 tho limitations OF F3O OV0 OF crcuat
isg notes prescribed by the twenysecoad section
SAID issue aud circulate As luonGy its
| bearing interest, anu payable ON demand IN coin