New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-28
SEcREr1RY SHERMARS SPEECH.


banks and the public debt Other portions of
his speech were excellent, but this part Will
attract universal attention, not more be-
cause of his position than because of It's
singular clearness, its directness and its
great force of reasoning. No other puOnc man
has stated more plainly or fOrciblY his opinion
with regard to coinage of silver, the redemp-
ton of United States notes, the proper volume
of circulation, or the merits of the National
banking system. 1t is possible to dissent
from his opinions, as in some respects we dlS-
sent but it does not seem possible for per-
son of ordinary sense to misunderstood Them
The key of the whole argument is In the
proof that the Resumption Act has justified
every expectation of its friends, and talsliied
every prophecy OF its opponents. 1t has not
failed TO lift the currency to par. 1t has not
brought Widespread ruin. 1t has not proved a
sham,0 as nsincere Democrats called 1t III
| 1876, nor curse to industry, as lOud-mouthed
but densely ignorant demagOgues call it now
Under it the Treasury has accumulated S2O9,-
oil, 1853 in specie, of which 1929, 4S5,563 Is
IN excess of present or prospective specie OBJ
legations, besides substituting coin for trac-
! tional notes. And now. with paper brought
very near to par, Secretary Sherman asks with
| irresistible force, Will You insist upon keep
eng it at par, OF retTace the steps already
" taken and embark again upon the sea OF
ire. 'eemable paper currency Shall we go
" forward and complete this process, or shall
&" we 90 back again to the period of iredeem-
" able money, with its inevitable resulting con-
" sequence of expansion. imitation and panic p
! If this is evasive or vague, we wish other
statesmen would evade the issue in the same
way.
As to silver coinage, again, no other speaker
or writer has made it more clear that he IA
yors only token coinage OF silver. lie in
sists that an unlimited coinage or that metal
wOuld "displace gold as surely as water will
"displace air." and would inevitably reduce the
limited States to the financial level of Asiatic
nations. His reasons for desiring token
coinage of silver, limited in amount so far as
TO be maintained in use at par with gold, are
very strong, and derive additional force from
the large circulation easily gained for the trade
dollar. contrary to law, by INSCRIPTIONS spec
ulators. 1t is good to hear Mr.. Sherman say.
"No form of paper money can prOhtably take
"tbe place of silver" and we only regret that
he has not yet found occasion to retire part OF
the small notes, in order to make room for
coin dollars. But he constantly insists that
silver must be so limited in amount that it
will not depreciate below the gold coin.
These conditions observed, silver and paper
being so limited in amount that they remain
in free circulation at par with gold, Mr.. Sher-
man is in favor of the largest amount Of
4" each kind of money demanded for the wants
of business" This remark may create
false impression. "The wants of business
NAV mean several very different things; Mr.
Sherman would give it a very different meaning
from the bankrupt speculatOr. When period
of speculation and initiation of prices arrives,
there are persons who will think that 81, OOO,-
600. 600 of paper can be maintained at par In
gold but if unlimited facilities for issuing
cause the experiment to be tried, they will
| discover their mistake. After all, currency is
only a tool, and it costs something TO provide
and keep idle more tools than are absolutely
needed. Perhaps it would be fully as correct
! 10 favor the least possible currency that will
meet the needs of legitimate business" as to
| favor the largest amount demanded for the
wants of business Whenever there Is too
| little, more money viii flow in as surely
| "a water seeks its level. Where there is
| too much, the tendency is to initiate prices
! and wages until the excess Is employed, but
| that means ruin, sooner or later.
! great part, and in some respects the very
hest part, of Mr.. ShermaD's speech is devoted
| 10 discussion of the National banking sys-
! TEN, and The various proposals TO get rid of
| it. payment of all United States bonds
/ with greenbacks, no one can deny, would be
snaked reputation. Such payment" of the
| mart of those bonds now owned by the banks
| would be equally dishonest, and fatal to the
! public credit, though the amount involved
| would be smaller. But if there is to be no
| repudiation, the United States loses nothing
! bv paving interest to bankers instead of other
| holders of these bonds in fact, 1t gained inn
measurably once, and still gains largely, by
creating special demand for its securities
| in addition to that which would exist
| if banks of issue were not required
to deposit bonds. Mr.. Sherman then
recapitulatos very eOmpactlY and fofcibly
the arguments with which readers of
! The TRIBUNE are familiar. in favor of an
issue of part of the paper circulation by
banks which become separately responsible
for its redemption. We do not quite agree
that the issue of bank notes " aids in mann
tanning United States notes at par in coin"
but the fact that the immense capital OF the
banks is enlIsted perforce to support the pub
| lie credit certainly does aid. Nothing could
be finer than Mr. Sherman's remark about
I" the money power "-that great bugabOO of
the Nationals. He says; my own expert
" enee in Office enables me 20 say that If you
Convene ten bank presidents you will
"haye ten different opinions, while party or
"ganizatlon brings even Judge Thurman and
General Ewing on the same platform" Any
where near Wall SGeet, the men of "difier-
] emit nniniona y will annreciata the accIrraeY