The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-12-03
A STATESMAN WITH IDEAS.
Senator Sherman's Plans for Settling
Questions of National Import.
Relief for the National Banks-How to Dis
pose Of the Silver Question, and How to Re-
duce Taxation and Protect Industry.
washington Special to Cincinnati ENQUIRER.

No one will gainsay Senator Sherman's knowl-
edge Of our financial and economic system.
Among the few who have made it passionate
study be stands out like the tall oak. -Four
years experience, too as the Secretary of the
Treasury have made him familiar with the very
minute of our finance. None better than he ia
familiar with our national debt, for he led the
hosts who conceived 1t, and then. subsequently,
executed the laws which led US successfully to
the resumption of specie payments. From the
outsst Of the conversation had with the Sena
tor it grsyltated naturally TO fiscal questions.
First the Senator dwelt upon the necessity of
some relief for the national banks.
What would you suggest, Senator?'
asked
II have plan," he said. ''or, rather, plans
of relief which I think equitable and fair.
You will observe that the national bank circula-
ton Is being contracted just as country is
growing. This should not be, because the sys-
sem Ia an index of the growth of the country,
and adapts itself to It's growth. I am In favor
OF letting the banks do business upon the 4 and
and Al Der cent. bonds now outstanding But,
10 order to equaliZe the burden upon the banks.
because of the high rate of premium at which
these bonds are held, / would give them circua
tion up to the face value of their bonds. This
would increase the circulation $30 000
would even GO further. would issue the banks
circulation up to the market value Of their
bonds, and have that value fixed once each year.
As matter of fact and history, the price of
these bonds have always advanced, and never
Would you favor the abolition of the tax on
bank circulation"
mo, would not. The tax used to be per
cent Then Congress, by legislation reduced it
per cent. would favor reduction OF this
tax to one half of per cent, but believe in
Seeming tax"
Would you favor the issue Of 2 per cent
perpetual bondp
mo. l would not vote for it. do not think
II would be wise policy to increase the bonded
debt of the country solely for the benefit of the
national banks. / friend Of the national
banking system To issue such bond, howev
er, would be for the government to ask the pe0-
pie TO loan 1t money when it had more money
than ii could get ont. The banks themselves
do not think would favor such bond They
would hardly invest their money at per cent.
fo acquire bonds as security for circulation,
when they could loan it at 6 per cent Again, it
would not satisfy The people as safe deposit Of
security for circulation. The banks need relief,
and ought to have it, If we give them circula-
ton up to The face valne of their bonds instead
Of 90 per cent, as row, they will be relieved IL
we give them circulation up to the market valne
Of their bonds the existing conditions of trouble
will De. think entirely swept away"
DO you think the compulsory coinage clause
OF the silver law should be repealed2'
eyes. do. What are we now doing. as a ma
toni We are paying for over five hundred grains
Of silver with greenback dollar and putting it
Into silver dollar Of 4123 grains Then upon
this We Issue silver certificate current for one
dollar. So long as the balance of trade is with
as this n. ay work. WheE 1t is against us these
folars and certificates will 60 out of the country
TO come back fog redemption dollar"
What would you suggest as remedy, Sena-
tori"
II would repeal entirely that clause of the sill
yer law which compelS us to coin monthly a
maximum and minimum number of silver dol
lara Then / would buy silver bullion at its
market value and issue silver certificates upon
the value Of the bullion. Why, it is fact, IL
we were called upon to morrow to redeem all the
silver dollars would be compelled to redeem
them as bullion. Why not issue them upon
bullion and stop the coinage of the silver dollars
and replace them with the silver certificates"
would not the owners OF silver mines, those
who delve for the product, object2'
II imagine they would, said the Senator; but
lrefectively) I'll bet you that under such poll
ey the price of silver would advance. l feel
conscious that it would"
| asked the Senator if he had made a note Of
the suggestion that nasmuch as there was Wis
able contraction OF national bank note circula-
ton that for every dollar thus contracted the
Hovernment should issue greenback. THAT
you'd not DO" he said. sit opens the question
Of the power of the government to increase the
volume of circulation. / believe this govern
ment should have this reserved power in case of
war or any great national emergency. The law
nxas the lega-tender or greenback circulation
at S346. O00 Without legislation. which do
not think could be accomplished. the Secretary
OF the Treasury could not take such steps, No.
che trouble is the Democratic party does not
Seem friendly to the national banking system.
We passed il the Senate bill to give the ma
tiona banks circulation up to the face value of
fheiT bonds deposited as security. The House
az Representatives would not give il considera-
tion."
Senator Sherman then spoke of Secretary
Manning. Said he: There is hardly recon-
meudation in Secretary Mannin2s report of last
year that was not disposed to vote for. Tho
Democratic majority, however. in the House of
Representatives did not formulate into bill a
MnRie recommendation OF either the President
Or the Secretary of the Treasury. The trouble
I suppose is that Mr. Manning represented only
the feelings of the New York Democrats"
asked the Senator if this might not have
been due to the fact that there is no issue with
the Democratic party naturally Democratic.
II suppose SO, he said. THE Democratic
party seems to be torn mp in its policy and pur-
Doses But the Republican party, also, is dis
traOted in its leadership There seem to be
dealouses and backbiting5 among the leaders
Still. as party, we have the national issue of a
protective tariff"
The Senator then dwelt upon the tariff in a
vein almost enchanting. From the stand point
or nls party ne mas the subject at his fingers
end.
How would You stop the growing surplus rev.
enuesg" | asked.
sit can be readily done. While am in favor
OF protective tariff. am in favor of a reduc
ton of taxation. l would favor the abolition of
the duty on sugar: l would make sugar free
Nov understand me- am in favor of protection
10 all the interests with which American indus
tries compete. This cannot be said of sugar
All the sugar raised in this country is in Louisi-
ana 1t does not raise 16 per cent of the amount
consumed Louisiana can never compete with
Cuba in sugar The crops in Louisiana are
forced In Cuba they are perennial Now and
again. as with asparagus the Cuban plantations
are strengthened with new planting. In Louisi-
ana the land is constantly forced. AS against
this natural discrimination against him the Lou
tsiana planter cannot IN the nature of things
compete with the Cuban planter Why, thsn.
protect an interest which does not yield but 16