The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1878-09-13
SECRETARY SHERMAN ON THE FL
NANCES.
He Discusses the Plan of GreenbaeIks I'm
Place of National Bank Notes.

not be kept convertible In coin, and that
the idea of keeping greenbacks on coin
basis, and at the same time doubling
their present amount, is sheer nonsense.
His remarks ought to be read by the
kind of political inanciers who get up
party platforms. He said:
I'm his speech at Hamilton, Senator
Thurman openly advocates increasing
the amount of United States notes out
standing from $34G. 000, 600 TO $685., 000,-
900 by issuing United States notes in
place of the National bank notes out
standing. He declares that the princi-
pal feature of the Democratic platform
is the proposed substitution of green
backs for National bank notes. He
would thus render specie payments i'm
possible during this, and perhaps the
next generation, and this at a time when
specie resumption, which he has so
strongly favored, is on the eve of success.
THE POSITION OF THE REPUBLICAN PAR
TY DEFINED.
The position of the Republican party
is in favor of greenbacks restored to
their normal condition of paper money,
equal to coin and redeemable in coin on
the demand of the holder, while the po-
sition of the Democratic party, as stated
by Judge Thurman, is in favor of the is
sue and maintenance in circulation OF
$66S, 900, 900 of United States notes with
out any provision whatever for their re-
demptiOn or their conversion into coin.
This issue is distinctly made, and for
one / distinctly accept it. We favor pa
per money redeemable 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 claim
ed can be maintained at par with coin.
He says it is just as easy to maintain
| $66S, 900 900 greenbacks at par with coin
as it is to maintain $346, OO0,O 900 green.
backs and 1922, 100000 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 by the
United States. No coin reserve is need
ed by them for such redemption The
issue OF these notes aids in maintaining
the United States notes at par with coin
instead. of obstructing it. The
bank notes are not in any sense the notes
of the Government. They are the notes
| of private corporations amply secured
| redeemed by them, maintained by them
or, if they fail to redeem them, the secu
rity can at once be applied to their re
demption. This expedient of allowing
a portion of the circulation to be issued
| by private corporations enables us tC
maintain in circulation nearly twice as
much paper money as could be main
tanned at par in coin if issued directly
by the Government
WHY THURMAN's PLAN IS WRONG.
His plan would directly violate the
| provisions of the loan laws, under which
both United States notes and bonds arr
issued, and which limit expressly the
amount of United States notes to $400,
| 100000. This would be a violation O
the public faith, and would impair a
once the public credit, and do incOnceiv
ably more harm than it could give prof
to the Government.
Mr.. Sherman went on TO show tina
there was no saving to the Government
treasury by issuing greenbacks in place
of the bank notes, as follows:
HE proposes to issue more note
without any provision for their payment
when our revenues are ample to NEE
our expenditures, in time of profound
peace, when there is no motive of patri
Otism or duty or safety to impel such
course, and this merely to save the inter
est of 4 per cent. on 1922 100000. Blu
this very act, if adopted, would proven
our selling 81 100000, of 4 per cen
bonds with which to pay an equa
amount of per cent bonds, and in thi
work an annual loss to the Governmen
of $2O,OOO,O 900, or $8,0OO,OO0 year NOR
than the entire pretended saving by hi
proposed policy.
Again, what moral right has the Gov
eminent of the United States to reuuir
its citizens to take its notes as none,
and standard of value merely for tn
purpose of saving the interest on thes
bonds? In a time of war we may con
cede this, but in time of peace there i
no legal or moral foundation for such
claim, unless the notes are maintaine,
at par and redeemed at par Is not tn
United States able to pay the interest O
its notes.
Mr.. Sherman also gave the followin
as official statistics to show the Gond
ton of the Government Treasury, an
that it had on Aug. 10, $4,000 900 i
coin available for the resumption of spt
Gle payment. Granting that its col
can be increased by Jan. to an exter
r that would enable it to resume and mali
tain specie payment in regard to tn
present amount of greenback currenc,
it is evident enough that the plan of i
E suing greenbacks in place of Nations
4 bank currency, would, as the Secretar
states, annihilate the specie payme1
! project. Senator Thurman and 9th,
men who demand that greenbacks sha
S be kept equal to coin, and shall be
sued in place of National bank currenc
= and shall also be issued to any extent Il
e 'wantS of trade" call for, should req
2 Secretary Sherman's figures as to IL
= supply of coin, and then get off in
e some quiet place and laugh at ther
# selves:
e ION August 10, the precise condition
the Treasury in view of resumption WI
as follows, not including about S. ,0Ot
Z, 600 in fractional silver coin
|