The Iola register., 1891-10-30
FINANCIAL CONSPIRACIES
Senator Sherman Replies to a
Visionary Pamphleteer.
Financial sHistory Epitomissd-The Ma
tional Banking system-Palpable
Political Falsehoods Circulat-
ed by Woman.

Senator Sherman has written the fol-
lowing letter in review of o pamphlet
written by Mrs. S. E. V. Emery in the
interest of the peoples party in Ohio:
MANSFIELD. o., Oct. IL, 1891.
Mr.. Charles F. Stokey, Canton, O.:
Ny Dear Sir-Yours of the 9Th, ac-
companied by Mrs. S. E. v. Emery's
pamphlet called ''Seven Financial Con,
spiracies which have Enslaved the
American People," is received.
Some time since this wild and vision
ary book was sent to me, ard l read it
with amusement and astonishment that
anyone could read it with approval or
be deceived bv its falsehoods.
The 'seven financial conspiracies' are
the seven great pillars OF our financial
credit, the seven great financial meas
ures by which the government was
saved from the perils Of war and bv
which the United States has become the
most fourishing and prosperous nation
in the world.
The first chapter attributes the civil
war to an infamous plot of capitalists 10
absorb the wealth OF the country at the
expense of the people, when all the
world knows that the civil war was or
ganized by Shareholders to destroy the
national government and to set up a
slaveholding confederacy in the south
upon its ruins. The Shylock described
by Mrs. Emery is phantom of her i'm
agination. The "Shylocks OF the war"
we're the men who furnished the means
to carry or the government and to put
tdown the rebellion, and included in
their number the most patriotic citi-
zens OF the northern states, who, unit
ing their means with the services and
sacrifices OF our soldiers, put down the
rebellion, abolished slavery, and pre-
served and strengthened our govern
ment.
TIE first OF her ''conspiracies" she
called the exception clause in the act OF
February 25, 1852, by which the duties
on imported goods were required to be
paid in coin. This clause had not only
the cordial support of Secretary Chase,
but of President Lincoln, and proved to
be the most important financial aid OF
the government devised during the war.
Goods being imported upon coin values,
it was but right that the duties to the
government should be paid in the same
coin. Otherwise the duties would have
been constantly diminishing with the
lessening purchasing power of our
greenbacks. II the interest Of opr debt
bad not been paid in coin We could have
borrowed no money abroad, and the rate
OF interest, instead of diminishing as it
did. would have been largely increased,
and its market value would have gone
! down lower and lower, and probably
ended, as confederate money did, in be-
Ing as worthless as rags This excep-
tion clause saved our public credit by
making a market for our bonds, and
was paid by foreigners tor the privilege
OF entering our markets.
AS for the national banking system
the second of her ''conspiracies"-it is
now conceded to be the best form of pa
per money issded by banks that has ever
been devised. 1t was organized to take
the place of the state banks, which al
the beginning of the war had outstand
ing over 500, 200, 900 of notes, of value
varying from state to state, and most oi
it at discount of from to 25 per cent
1t was absolutely necessary to get rid oi
these state bank notes and to substitute
in their place the notes OF banks which
were secured beyond doubt by the de
posit of United States bonds, a system
so perfect that from the beginning until
now no one has lost dollar on the cir
culating notes OF national banks. The
system may have to give way because
we are paying off our bonds. but no sen.
sible man will ever propose in thl:
country to go back to the old system o.
state banks, and il some security to take
the place of United States bonds can bt
devised for national bank notes, the sys
tenn will be and ought to be- perpetuated
The third conspiracy" referred to is
contraction of the currency. 1t ha:
, been demonstrated by official document:
that from the beginning OF the war t.
this time the volume, of our currency
has been increasing year by year more
RAPIDLY than our population. In lo6t
the total amount of all our money il
circulation was S435, 900, 000 when oul
population was g., 900, 600, and half O
this was money OF variable and chang
ing value. Now we have in circulation
81 500, 000, 900, with population of 81,
O0O, 900. Every dollar OF this money is a:
good as gold, all kinds equal to each
other, passing from hand to hand ant
paid out as good money, not only in the
; United States, but among all the com
mercial countries of the world. Oul
money has increased nearly four fold
while our population has only doubled
The statements made by Mrs. Emery
about the coptraction Of our currency
are not only misleading, but they are
absolutely false. She states that in
1868 S473, 900, 900 of our money was de
stroyed, and in 1869 $500. 600, 900 of oul
money passed into cremating furnace
and in 1870 S67 900, 600 was destroyed
Now these statements are absolutely
false. What she calls money in these
paragraphs was the most burdensomt
: form of interest bearing securities
treasury notes bearing 7.3 per cent in
terest, and compound interest notes
These were the chief and most burden
some items OF the public debt. They
were paid off in the years named, ano
were never at any time for more than {
single day money in circulation. Wher
issued they were received as money
but as interest accrued they became in
vestments and were not at all in circu
lation.
These statements of Mrs. Emery are
palpabie falsehoods, which if stated by
a man would justify stronger word. Il
is true that in 1866 Mr.. Mccullough
secretary OF the treasury under the
; administration of Andrew johnson
wished to bring about resumption by
contraction, and bill was passed pro
viding for a gradual reduction OF the
greenbacks to $500, 900, 600, but this was
very soon after arrested and the green
backs retained in circulation. / was
not in favor of the contraction Of the
Preenbacks, and the very speech tha,
sbs quotes in which described the ef-
ects of contraction and the difficulty OF