Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1877-08-22
SECRETARY SHERMAN'S RI.
NANClAl VIEWS.

the Treasury, made carefully pre-
pared speech to his fellow citizens at
his home in Mansfield, Ohio, on the
evening of the 18th instant. A large
portion Of the effort, as a matter or
course, was devoted to the defence
of the Presidents policy, which meets
with the cordial approval of the Sec
rotary.
Mr.. Sherman has long been chair.
man Of the Finance committee, of the
Senate, and byvirtue of this fact, and
his present position at the head of the
Treasury, is perhaps better qualified
to speak of the financial policy of the
Government than any other of our
public men.
His remarks touching these matters
are submitted below, being all Of his
speech that we can find room for, and
to which we direct the special atten-
ton of all our readers who desire to
become fully posted in relation to
these important matters:
ADMINISTRATION is PERFECTLY VIII.
ING
to share with Congress in the labor
of those essential reforms in our civil
service.
Much the largest reduction in the
public expenditure has been effected
in the reduction Of interest on the
public debt.
The great body of the pubic debt
| is now payable at the pleasure Of the
United States at par in coin. As this
debt now bears an interest of per
cent. it is manifest that if money can
be borrowed at less rate the old
bonds can be paid of. and the reduced
interest lessons to that extent the bur-
den of the debt. Prior to the LIST Of
March my predecessor had sold fifty
millions AZ per cent. bonds at par in
coin, the proceeds of which had been
applied to the redemption of per
cent. bonds. Since the LIST of March
there have been sold, under the re-
funding act, $l35, 100000 ~ per cent.
bonds, and that amount of 6 per cent.
bonds have been paid of, and can
celled, thus saving to the people of
the United States $2,O25,OOO in coin
for this year. and each year hercaf-
ter.
In May last l became satisfied that
the credit of the government was so
advanced, and the money market was
SO favorable, that could sell at par
in coin, bonds Of the United States
bearing interest at four per cent, per
annum, and, with the sanction of the
President, ! took the responsibility of
Withdrawing from sale one hundred
millions of four and one-half per
cent. bonds, and substituting four per
cent. bonds. There was great doubt
among bankers and business men
here and in Europe, of the ability to
sell these bonds at par, and 1 had
plenty of ADVICE not to undertake the
task. Germany, now one of the great
powers of the world, had recently
offered her four per cent. bonds at q
discount of more than five per cent.
The Russian Government, under
the stress of war, was selling its
bonds at such rate that they yielded
over 8 per cent. The Portuguese
Government had issued q 3 per cent.
loan at about 80 per cent. discount.
Great Britain, the highest in credit OF
all the great nations, had sold her 3
per cent. consols at large discount,
and now, although they are pcrpet-
ual annuity, they are daily quoted at
! from "a to 95 per cent. Still, with
the favorable condition of the money
market, with industries paralyzed
throughout the world, money lying
idle in great boards, with our credit
untarnished, our nation confessedly
among the leading powers of the
world, with great resources. / be.
lieved that the public interest and
F public duty demanded that the effort
to sell these per cent bonds should
, be made, and that it would be sue.
cessful.
THIS GREAT NATIONAL LOAN
was opened by popular subscription
in the United States on the 10th OF
June, and within thirty days after.
. ward SCI, 100000 were taken in this
: country and $lO,20O,OOO in Europe
r making $77,S00OO0 sold. This sum
: when paid and applied to the pur.
chase of 6 per cent. bonds will make
: an annual saving to the people of the
United States of 81 ,566, 600. The ag.
gregate of the saving from both elias.
ses of bonds since the LIST of March
1877, will be $3,5Sl 600 year in coin
And this process of saving has just
commenced. We may confidently
hope that, if no adverse Legislation
shall be had that will injuriously affec
f the public credit, the entire amour,
Of the public debt bearing interest al
per cent, now amounting to nearly
81, 700 100000, may, as it becomes re.
deemable, be converted into bonds
not exceeding A per cent.
SPECIE PAYMENTS.
:. And now, fcllow-citizens, this
brings me to the question upon which
there is so much diversity of Opin.
ion, so many strange decisions, and
that is, the question of specie pay
mcnts. What do we mean by this
phrase? Is it that we are to have nc
paper money in circulation? If so, ]
am as much opposed to it as any OF
you. Is it that we are to retire our
greenback circulation? If so, am
opposed to it, and have often so said.
What mean by specie payments is
simply that paper money ought to be
made equal to coin, 80 that when you
receive it it will buy as much beef,
corn or clothing as coin.
i Now the importance of this cannot
be over-estimatcd. A deprecated
paper money cheats and robs every
man who receives it, of portion Of
the reward Of his labor or prodnc-
ton, and in all times, it has been
treated by statesmen as one of the
greatest evils that can befall people.
There are times when such money is
unavoidable, as during war or great
public calamity, but it has always
been the anxious care of the states
men to return again to the solid STAN
dard of coin. Therefore it is that
). specie payments or specie standard,
is pressed by the great body of intel
ligent men who study these questions,
as an indispensable prerequisite for
steady business and good times.
Now, most of you will agree to all
this, and will only differ as to the
mode, or time, and manner; but
there is a large class of people who
believe that paper can be, and ought
: to be, made into money without any
: promise or hope of redemption that
a note should be printed:
"THIs is A DOLLAR" E
and be made legal tender.
regard this as O mild form of lu-
macy. and have no disposition to de-
!, : bate with men who indulge in such
decisions. They have prevailed to
|, some extent at different times in all
countries, but their life has been brief.
and they have ever shared the fate OF
other popular decisions. Congress
will never entertain such PROPOSE.
ton, and, if it should, we know that
the scheme would not stand moment
before the Supreme Court. That
court only maintained the constitu-
tionality of the legal tender promise
to pay dollar by divided court,
and on the ground that it was issued
, during the war, as in the nature of q
!, forced loan, to be redeemed upon the
payment of real dollar; that is so
many grains of silver or gold.
therefore dismiss such wild theo-