Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1879-08-01
TIE NATIONAL FLNANCES
Secretary sherman's speech az Port
land.

A1Atiillltll y blttCu III lOfllhOu, on
wednesday evening of last week, opening the
fall political campaign in Maine, was a clear,
cogent and able presentment of the financial
condition of the nation and incidentally a
very damaging and conclusive reply to the
greenback and initiation democratic arguments
against resumption, national banks, and the
general financial policy of the government.
MIR. Sherman said in opening that, while his
position as public officer naturally made the
finances of the country his proper theme, had
he felt free to choose n topic, he should have
spoken upon the Democratic revival of the
State Rights doctrine as of even graver i'm
portance to the country than the question of
hard or soft money. After few words on
the record of the Democratic Congress in its
recent special session, he proceeded rs fol-
lows:
THE SOURCE OF OUR FINANCIAL TROUBLES.
In the fall of 1873 there happened fnan-
cial panic, out of which most of the economic
questions upon which we are now divided nat
urally sprang. We must understand the act
ual condition of things when this occurred in
order to discuss with intelligence the measures
that have been proposed and executed, and
the questions that still remain open for deci-
sion. Our money then was paper money, ir-
redeemablo in coin, and worth about 81 cents
on the dollar. The amount outstanding was
larger than ever before. Sometimes this has
been disputed by counting as money at the
- y. 5Ho ~, ""i an lne ooliPoulu -nl'eresV
49, "i'u '-"u treasury NOTES; lhese were
LoI inuhey 'nan the per cent
, iii'o winch lney were converted. Both
i eioH', "lu were aiW1yH aDoVe par III
PaPei money "i'u were heiu as investments
n'. 10 currency me amount Oh paper mon
~ eNciuuln8 al interest oearlhg
TT'ea' 'uhe "o' iouo, was S'tHZ25, $40: 40.
i Le "'i,Uui' On 'he DUN Oh June, 800 JUST
oeio U t n. panic, was S!i"'44o eG3'"i, while
oii w oo'i Vi ouie, 10! :, ai'er the phhc' II
10 = hS1ih' 'he ra'e Oh III
19iSS' WIS niBner III io'9 'hhh oeiore or SINCE
~ .lie p'nlo 'le oouy vi tne government
uep1 oore interest," ~ per cent III Bold cor
PO,u''oin III l'r circuit palu 10 ~ per cent. :
WV. I ~. III the west-horl
SSus'" 'A'li i"iinS u' from ~ 10 - per cent
! IL vuIlch. I'''o Vi interest may De Said 10
nav "een i" per cent; Inc utmost reckless
ness III contracting ueo's was theh universal,
ho' oniy ny lhuiViduais' out by cities, coun-
ues' "whS' ana All klhus OF private corpora
uoh9' IL was an cru OF via ana reckless
M"''o anu ihlPro'luehce. IN those Specula-
Nv ''nieS we tonnage Oh American vessels III
ioIe'sn tIaue u"lnuled from 2,dE,5'O III leOu
10 l,7i o'o"1 tons IN 1913. wherever we were
Drought Ill competition with countries dong
business upon specie basis, we were driven
| from competition, either on the ocean or IN
workshops. The balance OF trade with for
elgn countries had been for series of years
steadlly against us. FROM 1868 TO 1873 the
excess oI imports over exports was > ,oe6.-
| tfu'"o'' Hnu from loo' 10 1919 S''4,O'2 6O.
AN not holo 10 give you the amount OF PR
vate ana corporate indebtedness contracted IL
foreign countries during these years of reck
less speculation, but II was probably equal TO-
OF III ,Hc's IS OF, the balance OF trade against
urogic,,, iii ,rJs;;,,,, - to;iPo,' ~
happiness of II drunkard while on a spree
The panic of 1873 called halt and, as by q
stroke, paralyzed all domestic industry, anC
bankruptcy and ruin spread from corporation,
to individuals, and property was unsuitable ex
cept ut prices far below its value. Whatever
may have been the cause, the calamity wa,
admitted by all to be Undertaking and long
continued. 1t affected foreign nations mucl
more severely than our own. Every nation il
Europe suffered as much or more than tn,
United States. The industries of Great Brit
ain were paralyzed. Our earlier recovery
from this stagnation is due to our vast terri
tory and undeveloped resources, and the nat
ural energy of n young and vigorous nation
When Congress met i'll December, 1873, i
undertook TO find remedy for these evils, ant
for year we had discussions in Congress, il
the press and among the people, as to how
best 10 relieve our distresses and restore on
industries to solid foundation. In the cours
OF this discussion the people naturally divided
On the one hand it was insisted that the tru
remedy was to initiate the currency by larg
increase Of paper money, and, with tina
view, SIG, 900, 600 in United States notes wer
thrown upon the market. On the other hand
it was insisted that the only hope for relic
was to return to specie basis, and to advanc
all forms of currency to that standard.
THE pRstrN,pr1oN Icr
IN january lo''' ana during the secoh'
SESSION ol Oohgrehs-lo lhohths aiter the pam
Inc measure known as the resumption &c
was uuoPleu ny HluJorlty Oh DOM Dfahche
ana approved Dy the president ms was
hePuOHcah measure, lot, though many DEN
o'rals favored resumption YET party dlsclphn
ana tne nope OF party advantage induce
every one OIL o., 'neh 10 Note against tue resuhl
ton uet, this measure was very hihpi
one containing put TWO propositions on
was that SILVER com should be gradually Ii
su'd ior the redemption OF fractional currel
ey' ana lhe other was ,hat on January L. 1910
the national treasury should redeem IN con
any United STATES hotSs that were presehte'
Inns act was not 10 take eIecl' IA us mater
provision uhui -FOUR years from tne uate OF
passage, steps were taken Dy secretary br
tow ana your distinguished townsman' seer
tary morrill, lor the gradual replacement
liAc'ioiial currency ny slINer com, Out UNI
ln' spring vi Ion' no h,"'eIl"l PrePaIu'i 10
was or could wen nave Deeh' made Tor u
5 r'd' inPtion OF United ou'GS notes %hlC
continued 10 De deprecated, 1eing worm on on
81 TO ~ GEMS III coin a widespread leeill
pleNaied mat resumption was Impossible,
t-"t It would not 1rlhg better times-and u u
country continued 10 Suner lne tort9res OF OF u
pane OF 1919. During tne wnoie Oh IolH al
1871 the resumption "a, act was lilaue lle suDJe
I ol remuneration. me ABSURD notion was p
i,r"nrd mat II was ohe cause Oh tnS t hal
HH's > lhougn no h li I Se non; nau DEF
taken nnaef H. ana inc haru times came
n'nl'ihs before ihe resumption ACT PaSse
All Sor.S Oh propHe5ei1s "ere inaue oi i's IN
nrp. we were tOlQ tlAt the resumption q