Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-08-28
THE PIRATES PLEA
JOHN sHERMAN;s ANSWER TO SEM
TOR THURMdN.

~ >AA'No - "
TOR THURM4N.
Extracts from, HIS Speech at Toledo on
Monday--His Defense of the National
Bank System and Resumption--The
Electoral Frauds--What He Says on the
Labor Question.
From Secretary Shermans speech in reply to
Senator Thurman, delivered at Toledo on Mon
day, we extract the following:
In his speech at Hamilton Senator Thurman
openly advocates increasing the amount of
United States notes outstanding from $346,-
000,0 900 to $668. ,000 by issuing United
States notes in place of the national bank
notes outstanding. He declares that the prin-
cipal feature of the Democratic platform is the
proposed substitution of greenbacks for ma
tional bank notes. He would thus render
specie payments impossible during this. and,
perhaps, the next generation, End this at a
time whess specie resumption, which he
has SO strongly favored, is on the eve of
success.
THE POSITION OF THE REPUBLICAN PARTY DEFINED,
PoS1CloA
favor of greenbacks restored to their normal
condition OF paper money, equal to coin and
redeemable in coin on the demand of the hold
er, while the position of the Democratic party,
as stated by Judge Thurpaan, is IN favor OF the
issue ard maintenance in circulation of $685.
100000 of United States notes without any
provision whatever for their redemption OF
their conversion into coin. The issue is dis
tlnctly made, and for one l distinctly accept
1T. We favor paper money redcemabIe in coin.
and the largest amount that can be maintained
at par with coin, while he favors an amount of
paper issued directly by the government, not
convertible into coin, with no provision for its
redemption, and to an amount that no one has
claimed can be maintained at par with epip.
He says it is just SO easy RI ri!aintain $685..
GOO, 600 greeahachs at par with coin as it is to
maintain $346, 100000 greenbacks and 1922
600, 600 national bank notes at par with coin.
But he forgets to state that the bank notes are
payable in greenbacks and not in coin, and
that they are to be redeemed by the banks at
their risk and expense and not ~ the United
States, Nc colii reserve is needed by them for
such redemption. The issue of these notes
aids II maintaining the United States notes at
par with coin instead of obstructing it,
The banks are required to keep in their vaults
and in the Treasury of the United States, an
ample reserve of United States notes to redeem
their notes, and thus give to the United States
notes a use which tends to maintain them a.
par with coin. The whole burden now rsstina
upon the government Il to maintain resump-
ton upon the amount of United States notes
and this confessedly can be done by coin re-
serve of from 35 to 40 per cent. which we have
on hand, while. if the whole amount of circu-
lation in United States notes, no coin re-
serve that could be reasonably secured und
maintained would be Sufficient for the purpose
of redemption:
The bank notes are not in any sense the notes
of the government. They are the notes of pri
vate corporations amply secured, redeemed BY
them, maintained by them, or, if they fail to
redeem them, the security can at once be APP
Piled to their redemption. This expedient OF
allowing a portion of the circulation to be is
Fsued by private corporations enables Ills tt
maintain in circulation nearly twice as much
paper money as could be maintained at par II
coin if issued directly by the government.
His plan would directly violate the provis
ions of the loan laws under which both United
States bonds and notes are issued, and which
limit expressly the amount of United States
notes to $4OO000,OOO. This would be a viola
ton OF the public faith, and would impair al
once the public credit, and do inconceivabl,
more harm than it could give profit to thu
government.
This scheme of his encounters directly the
decision of the supreme court of the United
States, and would, no doubt, be held unconsti.
tutional because it provides for a very large
increase of United States notes in a time 81
profound peace, where no such exigenoy as is
contemplated by the constitution or decision
of the supreme court exists to Justify such
an issue.
THE INEVITABLE EFFECTS OF THURMAN's POLICY
1t would at once drive out of existence the
whole system Of national banks which have
been the means alone by which State bank.
have been prevented from issuing circulating
notes. The only franchise the national bank.
receive from the government which induce.
them to maintain their corporate existence il
the right Under limits fixed by law, to issue
circulating notes. Take this from them anc
they would at once cease, without exception.
to be national banks and would be organized
again, as before the war, into State banks witt
such powers as any State might give them
would be to revive again tn.
system of State banks without an,
common organization, without any security
for their notes, upon such terms as any State
might prescribe, and thus all the evils of tn,
State bank money, which the people expe
rienced before the war, will recur again
Nearly generation has passed since the incon
gruous system of paper money which existed
before the war was swept away by the nationa
banking act. 1t is safe to say that the iniur,
done to the people of the United States by tn
failure of these banks, by the uncertain valu
of their paper money, by its limited local cir
culatlon and by successful countcrfeiting wa
| annually greater than the interest of the entir
national bank circulation of the United States
1t is easy to oppose banking corporations
| lnstes of having political power they are tn
| weakest members of community, say wha
you Will of them, their substitution for Stat
banks was one of the wlsest and most bene
| fetal acts of the general government since tn
| commencement of the war. Personally hav
but little interest IN or feeling for, nationa
| banks. But for the benefits derived iron
them, l would not care what became of them
Their continued existence ought to depene
upon their ability, without cost or trouble t
the United States to maintain their circulatin
notes at par with United States notes or coin
If they fail in this they ought to be abolished
If they do it they ought to b
continued. They are useful finan
cial agents scattered throug
| the United States in exchanging the product
of industry and in localizing capital The
paid last year to the government of the Unite
States S., O67,O 78 in taxes, and for State an
local taxes E$9. FOL 1882, or a total of $16,777
49, or nearly Sd 900 more than Judg
Thurman estimates we will save to the peopl
by issuing greenbacks instead of the ban
| notes. These taxes would all be lost to tn
United States and to the States if the Nations
banks were abolished. Their notes are secure,
| beyond peradventure, they are protected fror
| counterfeiting far more successfully than an
| former system, and, to their credit be it saic
| not one dollar has been lost on any Nationa
bank note ever issued. Wherever you go yo
| may carry them with safety, without examine
ton as to where or when they were issued
| They are good everywhere in the United States
Nor is it true, as stated by Judge Thurman
| that the legislation of Congress favored tn
money interest during the period of the swa
| of the Republican party, for this Legislation
| was guided by the love Of national unity an
national honor, and national existence. /
tended to make our nation strong at home an,
respected abroad, and in no single question
| has it favored what is called the money in
terest.
THE VITAL ISSUE BETWEEN THE TWO GREA
PARTIES.