The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-08-03
A HARD CURRENCY.
Senator Sherman Speaks
Out.
a SOUND LESSON IN FINANCE

spoke and " punt below part or his remarks.
The greater part OF his speech concerned the cur
reney question, and tAe Senator gave MS hearers
au admirable lesson on themerlts OF sound our
reney and She loss isaicted by nreGeemable rag
money. He said
What Is a sound currencyS The first and prin-
cipal question Is, SHALL tnls currency be sade
equal 10 purchasing power 70 gold anG sllYery
Upon tais question there ought 20 be no difference
Oh opinion among Intelligent men. by common
consent, IN al ages OF the world, IN all civilized
and ssmi-ciVui2ed nations, both Christian and
pagan, gold ana silver are regarded as the best
stahOards OF value. They are not only easily
made into current coin, but they are, In any form
and wherever found, OF Intrinsic value, easily al
Tlded, indsstrrctble and easily transported
DiEcrent nations have tried many exp cients %
substitute something else as a stan dgrd OF value
but experience has uniformly driven them back
70 gold and silver. Even now IN the United
states, where we have a legal tender PAPER cur
rencY, lts depreciation Is daly measured by she
standard or gold. All our business vita foreign
countries and most OF the large transactions In
commercial cities are based on gold values,
And new. 10 spite OF cur law, the market
value or all your prcducuonS-Jeur wheat
your iron, your lao0r-is measured BY gold
We deceive ourselves, the sraelltes did OF old,
oy making gOds anu NOrshinping taenl. We make
oar paper money legal tender a standard OF
Faius aud naturally TANK IL measures the price
OF gold. We think we see gold bObblng up and
down for TIE play OF the bulls aud bears oil New
credit-that Is bobO!ng up and down Four nun
dred years ago men saw as We now see the sun
rislag IA tue east, passing ever tAe armament
ana setting IN the west. lt appeared that the sun
was mere tender te the eartA--a satellite TO rem
der Is daily oilices for our use Gaheo and Gthers
proved ina all tins vas deception that tue earth
moved around on us SKIS once day, ana, enc
oI tAe smallest oI The planets, on lts orbit once
year and thai the sun was the centre OF our
system an0 iJsel was Oui one OF lHnumerable
stArs. Though this was demonstrated, and we
all now admit TO- yet we still say the sun rises ami
iae sun sets ust the brokers say gold has risen
god has alen; and yet fellow citzans n we
are not blinded ~ ignorance ana careless
ness We know chat gold mas not risen any
more man the sun mas risen Gold cannot 20
z IL
the public credit, the promise or the United
States 10 pay dollar N coin, that rises and falls
Paper money is We-ta nothing bH5 wat 10
promises to pay ia gold, and tnen It's value Is IN
precise proportion ~ the expectation tnat IL wall
ca world measures our currency BY its estI-
mate or guess as 10 when we VIII redsem ~ IN
gold. All know thls y: nave the aDihty 70 redeem
A., DuO lhSy speculate upon our Willingness ~ 40
~. and measure IA tdls VA the depreciation Of
our note ust as they MEASURE me value OF an Erie
railway pond or any utAeg security. Convince
the commercial vOIlt tast you viii redeem ms
currency IN gold when presented, ana 1t becomes
par IN gold II VIII tEel ouy as much iood and
clothing As the Ue55 gold coin issued from the
mint. Wnen We can redeem 1t IL VIII be ike the
FrencHmaE oanH plil-il you've got the money
don't want is, II you haven't do TAen the note
ana the gold VII circulate SIDE by SIDE, the one
INTERCHANGEABLE Tor ne other. To accomplish tais
IS now the highest object OF statesmansaip and
the greatest good to all classes, but especially to
those who labor Tor tle.r daily bread.
PAPER MONEY.
And here fellow citizens, you may ask II gold is
money! why have paper money at ahy why not
fall bacs upon 1ari money rs tse only currency2
This vas toe Old doctrine or tue democratic party,
Of Jackson aud Benten--yes, anu OF Governor
Allen, 100, forty years ago. The answer Is that
the experience OF commercial Nations has demon
s5rated thar paper money Is great convenience
IL prVm6ung exchanges. 1t Is more portSDe
ca n be transferred readily from hama - hand; it
can be more easily guarded from thieyes; ami 1t
gives lie ana activity 10 Trade by substituting
credit Tor actual CON. Bat all tais Is OF paper
money convertible into coin at the VIII OF the
h0lder not deprecated Taper money. We have
had varied experience IN 0Aio with paper
money, from the wildcat ba1ks mat sprung lato
existence alt7t lAe war OF l5I1 70 our state oan6
system Ssiil, though We suffered many Losses By
bad paper uolsy. yes IN this c0uL try W. may con
slider i5 a. closed question that We viii nave
cured ohs deiect Of our ola bark Currency By Wv.
ing Us national money Oh uniform value through
out the United states, instead Ut local money OF
II ate BANKS. What we ssill want is national
money readily convarable INFO gold
Why PARE. MONEY SHOULD BIZ EQUAL 10 GOLD
Let Us examine the reasons why our currency
SHOULD % made equal 70 gold The Hrst aud most
obvious one thar the United States promise 0
pay its notes in geid. Here IS dollar Dlil. Ii
reads Tine United states VIII pay to sac bearer
81" what IS doilar2 me statutes or the United
states declare GCNar TO be 4 coin weighing
Is sl0 grains OF standard gold. Was is not paidf
are we unable now, a. during tae w+r 20 meet
tns zine of payment ms would lie no defence
b. an individual ia SUIT az i&w, for the Court
would say such q note Was payable on demand
and compel aim TO pay. The United states cannot
be sued cut ought co De honest; It ought 70 o.
serve those rules Of honesty taat u presGrIbs for
rs citizens. AQn!t IhaI I; aas the power TO say
4
pohey; eut public policy mat delays the pay
ment OF sucA ~ 0Snga'lon alter me nation
i e able 6 pa4y .o ssF'9T .T Rp' s2so5 ;o
Another reason way thcde notes should be made
eQaal 20 gold Is shat ne purchasing power 81 &c.
preciatea paper money depends upon TIE caprice
of spectators, WAC put = value up or down al
their HEia or interest. Every nOlaer or this note
-nds IT'S value daily changing 1t may be worth
twenty-three grains o. geld To-day ana tomorrow
twenty-five. II Is IKE movable "a cStick or a
casnpesble Ton or q short acre. surely, promise
40 n n y n a
should be as unchangcaDl3 as tee best gold coin
ever issued rom no mint, Again, payment
with such a note to a5orer for lts Hire OF 70
farmer Tor MS grail Is deluson. II calls llSeU
q dollar. IL promises dollar. The Cnited states
promise TO pay for 10 dollar. and yet It Will OnJ
bur az much as eighty five cents Of real money.
suppose It's purchasing poWer Was MADE equal 30
coin then the deception would cease, and the
isborer or farmer could BUY as much lor eighty,
i've cents rs he can lot dollar now. Inc United
states would nave redeemed It's promise
and AL business TRANSACTIONS would rest
upon real values. But 1t IS said this note
IS good. so II 49, good 70 par taxes,
for the taxing power agrees 10 take II, ana The
same power declares tina 1t shsl. DC legal tender
In payment OF debts; but would 81 not be better IL
II would bay as much wheat and corn ana clotElng
as goldY 10 would then be good FOR all purposes.
rod or or labor or clio thing Every body meas
sense that the United states Is able to pay It 10 Is
not good in the sense that the United states does
laid IA he other day 1T Newark that the United
states note ana Untei states bond rested upon
the same OASIS DO tiey 40 DuL inc OOuu IsSNb
moon a promise duly performed ana the note upon
a promise not performed. The difference Is Is per
cent We viSn 70 place the notehoider upon the
same footing as the bondnolder, BY making our
promise as good as gold instead OF Is per cent
Jess rhe question we have 10 deal with Is, Are We
now ready 70 enter upon this policy or honesty OF
equality between the noten0lder and DOnuhoider,
THIS policy Of gO9d money, national money, paper
and gold cqusl 70 each other snd worth Wnas IL
promi5es7
OBJECTIONS ANSWERED..
Now, Fellow citizens, what are the objections 10
this policy Ire first and most OBVIOUS Is that
existing debts and contracts based upon depre-
clated paper money would be advanced 70 the
gold standard. II this was done suddenly with
out notes or time for pref arstiOn, 10 would DO
wrong, but % reasonable lime Is gwen contracts
will DC adjusted 20 meet the change. Nearly
every one a a creditor AZ wen as deotor, aud
debts due you VIII balance wnat you owe. The
advance toward specie standard would be 80
gradual - 10 be iupercepuble. inc fluctuations
in tns value ef paper money nave been Ia single
year more than the present depreciation, ana yeb
VI allow our years for the CAlBRe when toe
NOES we're arst ISSUED an con lraCt8 were payable