Evening star. [volume] (Washington, D.C.) 1854-1972, 1875-08-03
Senator sherman ON the Finances.
SPEECH AT LAWRENCE. OHIO, IN FAVOR
or SPECIE PAYMENT.

IN
Lawrence county, Ohio, on the night OF Slst
ult After setting forth that by common con-
sent IN all ss~s Of the world-in all civilized
end -emi-civihZ a nationS. both Christian
ana a2an-fhat gold and silver are REGARDED
"a Tie best standards OF value, the speaker
said: II gold is the best standard OF value
Why have any other money-why have paper
AT al why not lall back upon hard uioney
% TIE only cul neucy? This was the old doc
triue OF the democi attic party, OF Jackson
ar Bent On-yeS. and of Gov. Allen too
forty ye5rs ago. Tie answers that the expe-
rlence OF commercial rations has demonstra-
ted hat paper morey is a great convenience
IL promoting exchanges. IL Is more portable:
can be transferred rea lily from hand To
Rand; IL can be more easily Guarded rom
thieves; aud IL gives life anu activity to
trade by substituting crNdit for actual coin
But all THIS is OF paper money convertible
INTO coin at the Will OF the holder. not depre-
Gated paper money. What we still want is
national money really convertible into
gold.
Let us examine the reasons why our cur
rency should be made equal 10 gold The
first and most obvious one is that the intel
States promise 10 pay its notes in gold. Here
is dollar bill. IL reads: The United States
will pay To the bearer one. dollar" What Is
a dollar? The statutes of the United States
declare dollar 10 be coin weighing 2i.sIo
grains of standard gold. Why is 10 not paido
Are we unable now. as during the war, To
meet thls obligation? II is said this note
does not fix the time OF payment. This
would be no defence by an Individual i'm n
suit at law, for the court would say such a
note was payable on demand and comn,I
him 10 ray. The United States cannot he
sued. but ii ought TO be honest: Il ought 10
observe those rules OF honesty which il pre-
ScrlbeS for lis citizens. Admit that IL has
the power TO say that the time OF payment il
question OF public policy; but "A public
policy that delays the payment OF such an
obligation after the nation j. able 10 nav
seriously lmpaiTs the public faith and sets
an evil example.
Another reason why these notes should be
mace equal 10 gold is that the purchasing
power OF deprecated paper money depends
upon the caprice Of spectators, who put it's
value up and down at their within Of interest
Every holder OF this note finds its value dali
~ changing 1t may be wort p grains OF
gold to-day and tomorrow y. Ii is like
movable yaristick or a changeable ton. or a
short acre. Surely promise depending on
the falth OF great nation like ours should
De as Interchangeable as the best gold coin ever
issued from the mint. Again, the payment
with such note to a labOrer for his hire or
10 q FARMER for his grain, is delusion. II
calls itself a dollar. II promises q dollar.
The United States promises to pay for IL a
dollar, and yet il wiz only buy as much as
- cents of real money. Suppose its pur-
CHASING power was made equal TO coin, then
the deception would cease, and the laborer
or farmer could buy as much for 60 cents as
he can for dollar now. The United States
would have redeemed its promise. and all
business transactions would rest upon real
values.
But il is said this note is good. So il is,
good TO pay taxes, for the taxing power
agrees TO take IT. and the same ROVER de-
clares that il shall be legal tender in paw
ment of debts; but would il not be better il
II would buy as much wheat and corn and
clothing as gold? 1t would then be cool for
all purposes. There is no power i'm human
law to fix its value in gold or wheat or labor
cation daily! While II is gSSd in m t6e aePre
that the United States is able TO pay il, IL is
not good in the sense that the United States
does not pay II according 10 promise.
We are told that specie payments involve
great contraction of the currency, and that
a contraction of the currency would make
money scarce and add TO the present distress.
This objection rests upon a faIlacy. / DENY
both the Premise and the conclusion. II
rests upon the fallacy that we can by law
ny The amount OF the currency necessary for
the wants OF business. From the very ma
tue Of good currency il Gibbs and flows. con-
tracts aud expands to meet the dema ads of
trade II idle IL ought to be redeemed; if
needed for the purchase OF production IL
should &c issued 10 meet the demand. The
only law 10 regulate its amount is to provide
for The issue of all that can be maintained at
par IL gold. If il is below par, there is too
mrch. II IL cannot be readily had in ex-
change for production, for which there is a
demand, then there is too little. Under this !
rule The great body OF our present circula-
tion could be maintained at par in gold. and
all the gold now lying idle, and all that is
produced by mining. will be added TO and
mIngle with the paper money in daily use.
The speaker then proceeded TO deny that
the panic OF 1873 was caused 10y a contraction
of the currency. In answer 10 the argument
that II gold - the standard of value, why
was paper money issued at al in excess OF
the amount that could be kept AZ par in gold I
he said that il was issued under the over
whelming necessities OF great civil war? IL !
was in February, in 1852, after all the hanks 1
had suspended specie payments, when our !
armies had made no progress, our revenues |
were cut of 10y the war, and our eXpeldi- |
lures were more than million dollars "A /
day. There was then lying on the table OF |
Mr.. Chase, Secretary of the Treasury, re-
QUESTIONS for over eighty million dollars 10 |
pay our soldiers, and 10 supply them with /
food, ammunition and transportation. Oar |
bonds could not be sold, for there was no cur
rency Ia pay for them. We had TO issue the |
notes or The United States IN the form OF cur
rency, and yet as a part OF the public debt. 4
The only question was whether they should |
be legal tender between Individuals in the |
paym Of debts. Upon this point had 1
clear convictions. | felt that If our soldiers /
were To be compelled 10 take these notes as /
money, that we were bound, IL We could, To re- |
qnire every body else To take them as money.
We could not leave them TO the tender meY- |
cles OF creditors, ShaVers and unpatriotic |
men, who would gladly decry and repudiate |
these notes. We therefore male them a legal /
tender, and the Supreme Court has upheld |
our power 20 do 50. But we took every pre- |
caution 10 prevent their depreciation. We /
carefully limited the amount: We made /
them receivable for all internal taxes; we |
n ade them "a legal tender in payment OF ali /
debts, and we made them convertible into 4
bonds, tue interest OF which was PAYABLE i'm /
gold. and the duties or taxes 90 imported /
goods were made payable in gold, so that we 1
would have an ample fund in gold 10 pay the l
interest After all this we limited the 4
amount, beyond Which we would never go, I
at four hundred millions. Such was the care /
and solicilude with which We heiged in the /
greenbacks, and every dollar of them WAS \
issued with the understanding and declared /
public policy that after the war was over
they would be redeemed in gold. Tue great 1
error of our financial policy was in repeal |
ing, instead of suspending, during the war.
the right of each holder at his will To con-
vert his greenbacks into bonds. This won Ii 4
have restored them, soon after the war TO 1
par in gold.
The speaker then defined the exact position \
OF the two political parties on the ina Nc ial /
issues; the position of the democrats IN Con-
gress; said he, what do they propose? That 4
the volume of currency be made and kept /
equal TO the wants of trade" Who snail fix
the volume2 What caucus could regulate
the amount? What Congress shall decree
it? What shall be its standard of value?
Shall il be coal lands at $1,000 an acre, or |
gold at twenty five and eight tenth e. aims TO \
a dollar? Shall Ii be enough to foat the |
Northern Pacific railroad into premature |
birth? How, then, win you measure your
daily toll? How the price Of youF wheat, the |
fruit OF hard labor and solid acres? II you |
get your pay I'm gold, or in money steadily |
approaching gold standard, you know what |
ii will buy; but il its value and volume have |
no fixed basis, and is 70 fiuctu ate to meet |