The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1886-08-07
Excellent Financial Management.
ABLE SPEECH BY SENATOR GoRmAN.

N.E
Tn the Senate last Friday joint resolu-
t;on was under consideration, providing the
amount of surplus shall be S100, 900, OOO
and any excess shall be applied to the pay
ment Of the intesest bearing debt. The
resolution had been debated several days,
and on Friday after Senators Teller and
Vance had spoken Senator German arose
to address the Senate. Mr.. German began
with the remark that the impression had
GONE forth from Senator Allison's statement
Of Yesterday that the United States treasury
was full of money when the Democratic
party came into power in 1885, and that
# was on account of Secretary Manning's
timidity and lack of financial experience
that he boarded up money in the vaults OF
the government. Mr.. German said this
was an erroneous impression, as he Lad
heard from Representative Hewitt, OF New
York, that Hugh McCullock, the preced,,
ing secretary of the treasury, had admitted
that he only hoped to maintain specie pay
ment up to March 4, 1885. MIR. Gorman
then read statement of the condition OF
the Treasury Department, showing that gold
had run down in the treasury, and there
was not enough on hand to meet the ia
bilities of the government. He then pro-
duced telegram from ex-Secretery NC
Culloch to the sub-treasurer at New YORK,
directing the latter to suspend the payment
of gold and greenbacks at the clearing
house in the settlement for the balances.
This was in February, 1885, when the lead
ing New York financiers, including Mr.
Tilden. knew the opinion of Mr.. McCul-
loch and anticipated his suspension OF gold
payments. They therefore bought largely
of sterling exchanges as matter OF specu-
lation. but when it was settled that Mr..
Manning was to be Mr.. Cleveland's Secre-
tary of the Treasury, Mr.. Tilden and the
other prominent Democrats induced MIR.
McCullock to rescind his order Of suspen-
sion and throw the responsibility upon the
new administration to prevent the disaster
which he had anticipated. Mr.. Tilden's
patriotism and democracy was above his
desire for personal gain, and ne united with
Secretary Manning in bridging over the
trouble. Secretary Manning discontinued
the payment of the public debt for the
time being and replenished the treasury by
retaining all the receipts except enough for
the ordinary running expenses of the gov
ernment. On July l, 1885, he had a
large balance on hand, but not sufficient
gold to meet the payment of interest on
the public debt without drawing upon the
reserve fund. Secretary Manning did then
a bold but a wise thing, and probably
saved the country from disaster. He point
ed out to the banks and other financial in
situations the great danger the country was
in, and induced them to advance him S2O,-
100000 in gold for similar amount In
silver. He found it necessary to call upon
them for but S6,000,00O, and public con-
fidence in the government was restored.
Gold left its hiding-place and found its way
into the treasury through the custom house,
and now he has S157 900, 600 to meet all
demands that may be made. Financiers
throughout the world give Secretary Man
ming credit for what he has done, and he
has saved the country from immense losses
and established the reputation OF his party,
so that it will not hereafter be said that
the Democratic party has not the capacity
to administer the financial affairs of the
government. He has made payments on
the public debt at such times and in such
amounts as would not impair the ability of
the treasury to meet all its obligations.
The result has been increased business, no
complaint of insufhciency of money for
circulation, and there is not national bank
that has not large reserves by which it COM
mands loans at low rates, 2 per cent. on
called loans, and AZ per cent. on longer
loans.
Several times Mr.. German was inter
rupted by opponents of the Allison substi-
tute, but his replies were prompt and apt,
and he fully demonstrated that the discre-
ton to dispose of the surplus in the treas
ury should remain where it now does.
Senator German spoke without notes,
and his delivery was free and distinct. He
seemed to have the subject well in hand,
and many of his associates remarked that
he made one of the strongest speeches Of
the debate.