Los Angeles daily herald., 1888-04-06
Financial Faliacies.

Republicans in the Senate are in a
hopeless muddle on the silver ques-
tion. 1t is true the greater number OF
the Senators OF this party agree-yes,
agree too well-as to their policy on
this important matter. Mcpherson
of New Jersey and Sherman of Ohio
are in pretty close accord as to silver.
Teller of Colorado and Stewart OF
Nevada, OF course, do not agree with
their Eastern compatriots.
Senator Mcpherson fears, if Senator
Becks' bill for the reconciliation OF
silves passes, that the country
will be ON a silver basis in sixty
days. He means, that our financial
syste m would thereby be reduced to
single silver standard. Senator Sher-
man wants to amend the Beck bill by
su bstituting silver certificates for
silver coin, and wants to limit the
silver coinage to 81 600, 900 per month
In referring to the prevailing contrac-
tion Of the currency, and the menace
to the business of the country result
ing therefrom, the Senator from Ohio
lays the blame at the door of the pres
sent Administration, because the sur
plus has not been used to buy up bonds
at an exorbitant premium. He calls
atte ntion to the fact that the Demo-
Gratis in the House, by not allowing
National Banks to issue bills to the
full face value of their deposited
bonds, have caused contraction in
the circulating medium amounting to
$40, 100000. BY the same policy
$1o2, 100000 Of United States notes
Are tied up in the Treasury'
Cold, calloue and cuhting old John
Sherman, in every word he utters is
earnest in the defense of bondholders,
monoplies and of any and all institu-
tions based on laws which discrimin-
ate against the interests of the people
xnd favor some clique. While talking
as above, he processes to be the friend
of silver. His political ally, Senator
Allison, of Iowa, very promptly took
issue with the demonetizer of silver.
Mr.. Allison represents an agricultural
State, his clients are borrowers OF
money, which they use in the deyel-
opment OF the large areas OF the West,
in building railroads, ,townsand cities.
He knows the dire distress produced
in all the West and South by Senator
Sherman's anti-silver policy. s' =
Well informed people sometimes
allow themselves to fall into the error
of supposing that this silver question
is one which concerns only few
miners on the Pacific Cosst. 1t is a
matter of much more general interest.
The currency difficulty is one which
the stoppage of the surplus will only
ameliorate, but even that will not suf
ficiently increase the present in
adequate supply of money which
is acting as very serious obstacle tc
progress in the various industries O
the country. This contraction of the
currency began in 1873, when silver
was demonetized. The supply of cir
culating medium was too small before
that date. At the close OF the wal
the currency which had served fol
the business of the North was extend
ed to do also that of the South. Soo1
after Mr.. Sherman's demonetizatior
Of silver, in 1873, specie payment wa
resumed. Then Mr.. Sherman refund
cd the National debt at per cent. ant
fixed the date Of redemption at re
mote period. If a preconcerted plal
were made to contract the circulating
medium, to make money dear, ant
wheat, wool and labor cheap; to pla,
into the hands Of the rich, and RUN
the poor; to pay every debt in the ma
tion twice over, 2 better scheme thai
that of schsming John sherman coult
- Is formulated. Since 1873, th.
1 IN 1zqm the Hudsos