The Bessemer indicator., 1893-08-19
A STRANGE ALLIANCE.
WHAT MR.. woLoorr THINKS.
Hs Ridicules the statement that ths
sherman Law Caused the Pnnist
and Pokss Fun At Lodge

sherman Law Caused the Pnnis,
and Pohss Fun At Lodge
and Cleveland.
A special from Warrington to the Denver
Repubiican giyes the following synopsla OF
Senator Wolcotts speech on Senator Lodges
resolution fixing the 22nd day August as the
time for voting for the repeal OF the sherman
law. The speech WAS iupromptu, but like all
of Senator Wolcotrs speeches, was listened to
with close attention.
lie agreed with the Senator froll Massachu-
setts that this was not party question. lie
felt great relief lin view of some unpleasant
relations In the Senate within the past few
years. that question had arisen on which the
Democratic executive and the Massachusetts
Senators might agree. II was = most auspi-
clous and most significant occasion. 1t was a
most delightful foreshadow of the days when
party rancor should ceaso and when all notes
Of dscord should be blended in one harmon
ious melody. Laughter He believed that
the next thing In order would be for the
President Of the United States, who was for
tunately untrammeled and unembarrassed by
any previous utterances on the subject, to
frame some election law which would per
haps meet the views of the senators from
Massachusetts, and the reconciliation would
be complete. Laughter.
In order, however, that the repeal OF au eN-
istlng law should bring relief, II would be
necessary to show that that law had inflicted
injury, He had yet to hear single intelligent
man state, on his conscience, that he believed
that the Sherman act had wrought the injury
under which the country now suffered. lie
bad yet to hear single man of experience IN
financial mattcrs, or In public affairs, say that
the unfortunate financial crisis through
which the country was passing had anything
to do with the sherman act. Everyone would
admit that the sherman act was vicious In
principle and Illogical 1t was vicious in that
II made OF silver a commodity. 1t was illosl
cal and vicious In that 1t left the silver bullion
in the treasury uncoined; LETT 1t where II
might be dumped on the European markets
At any time.
These were It's disadvantages; but 1t had
some advantages. Its quasi recognition OF
silver had been of infinite value in the hope
which II had inspired of b!-metallism and In
the fact that 1t had afforded an enlarged cur
rency from month TO month for the past three
years. Even in the last few months the Sher-
man act had saved the country from Infinitely
greater disasters than 1t had undergone. II
had given the country currency, as stated
by Senator Chandler, backed by the credit of
the government and by the silver ut Its bull
lion value. That was pretty good currency.
II was, perhaps, n little better currency than
the S31 600 o00 of clearing house certificates
now in circulation In New York, backed only
y
who were now clamoring for the repeal OF the
Sherman act
The only tangible statement which he (Mr.
Wolcotr could get as 10 the injury wrought
by the Sherman act was that there was lack
of confidence In Europe. but he did not find
that the statement was borne out by the facts.
American securities had been held enormous
ly in Great Britain, perhaps to the extent OF
g, 900, 100000. Great Britain had suffered
seriously in Argentine and in her own colo
4 h..Er ntrI
ties, and the cheapest securities had come
first. 1t was impossible to say what proper
ton Of American securities were held abroad
payable somt in gold and some In lawful
money; 1t was nevertheless true and suscepti-
BILE of proof that the securities which came
back came back irrespective of the method of
this payment No better illustration OF that
could be given than the fact that the New
York " New Haven railroad stock and the
Pennsylvania railroad stock which had per
mauent value had not come back. Their div
idends were payable in lawful money and not
In gold. These securities were still held
abroad.
The cheapest and weakest securities came
back first, and they came irrespective of the
fact whether they were payable in silver OF
gold. The great liquidation had come, moi
because there was In Great Britain a lack OF
confidence In American finances, but because
the holders of American securities were COM
pelled to sell
come on and the trust had gone 10 pieces.
Had the Sherman act been responsible for
that
Then came the breaking up of the cordage
trust, organized and managed by the leading
finnuciers of New York. Had the Sherman
act been responsible for that, And yet the
New York newspapers figured up daily the
market quotations OF a year ago and those OF
to-day, struck the balance between them and
argued that silver and the Sherman act were
= 10. f3a all a IN
not responsible for the condition of afIsira
abroad. IT was still less responsible for the
condition OF Affairs at home.
The Senator from Massachusetts GLodge)
mad said that after the repeal OF the sherman
act confidence would come back to the coun-
try. How would 1t come back and where.
Would II come from the laboring classes from
the farmers from the minersf
The repeal OF the Sherman act would not
bring confidence to them Would 1t bring
confidence to the banks! The banks did not
want confidence In the money OF the country.
but they wanted the money of other people
The banks wanted some legislation that
would induce the poor people who had with
drawn their money from the banks to bring
It back. That brought him, he said, to the
real cause OF the existing financial panic. II
had come partly because OF European losses
in South America and Australia: partly be
cause Russia and Austrln were buying gold.
and partly because the United States had
sold abroad.
All these causes were utterly Independent
of and irrespective OF silver and the Sherman
act. II there had not been dollars worth
of silver In the country; II there had never
been line OF silver legislation, the blight
would have come exactly the same. Silver
wns not responsible for 1t. Confidence was of
slow growth, and ali the legislation that
might be enacted would not bring back con
iidence to the men who had withdrawn their
money from the banks
For his own part he intended to conduct
himself not alone as citizen of section,
but as a citizen OF great republic Prophecy
was futile, bat he might be permitted 10
record his conviction that when prosperous
days came back to this country 1t would be
after IL had announced to the world that this
was n nation Of bi-metalllsts believing in hard
money. both gold and silver, and that It pro-
posed to have Its share Of the gold of the
world, Was rich enough to hold, and was en-
titled by Its resources and conditions TO have
IT. that at the same time the United State-
proposed to open Its mints TO tho free and
unlimited coinage OF silver, and that we had
returned TO the paths Of the founders of the
republlc-paths which, so long as they were
followed, had brought financial prosperity
and happiness. and deviation from which has
always brought panic and financial disaster.