Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1893-04-14
Senator Sherman on the Currency.

The Republican Club Of Canton, o., gave
a banquet at which speeches were made By
Governor Mckinley and other prominent
speakers. Senator Sherman was invited to
attend; but he sent letter explaining his
absence. in which he referred to the curren-
cy issue as follows:
In response to your telegram l have to
advise you that it is impossible for me to
leave here during The session ofthe Senate.
The subject you wish me to discuss | re-
gard as more important than amere change
of Administration, or who should hold pub
lie offices. What we want is good money
and plenty of it. By good money, mean
coin money, either of silver or gold, and
paper money always redeemable in coin
and so secured that there can be no doubt
OF its redemption in coin. Coin money
has not been and will not be used in the
United States for current payments, except
for change and in small surls.
Paper money is more convenient to car
~, and it will always be preferred by our
people for all payments, whether for labor
or food or clothing or for payment ofde BITS
But this paper money must have behind
it the highest sanctions of credit that be-
yond any danger or fear it will be main :
tanned at par with coin. Ny own observa-
ton and reflection lead me to the belief
that all such paper money must, in sddi-
ton to every other safeguard possible, be
backed by the wealth and property of the
whole people of the United States.
Experience has shown that the notes of
the National banks secured by an equal or
greater amount OF United States bonds,
form the safest currency that has yet been
devised This is practically the system
adopted in the wealthiest and most advanc-
ed governments of Europe and by our own
country. Notes of the United States, care
fully limited in amount, and backed by
the credit of our whole people, supported
with ample reserves in coin, and with clear
authority in case Of necessity TO redeem
them in coin by the sale OF bonds, have
been proved by our experience since the
1st day OF January, 1879. to be wise and
safe currency, the profits of which inure
entirely to the benefit of the whole people
The only fear is that these notes viii not
credit may be impaired and destroyed by
the prevalence for time OF the wild and
visionary notions Of enthusiasts without
experience and ability.
The chief difficulty that row exists IS
that by the course of events, and especially
the great increase in the production OF sill
yer as compared with gold, the market
value of silver has fallen far below its rela-
tive value to gold. The ratio between the
two metals of 16 to /, fixed by the law of
1887, was then the true ratio of market
value, but it is not now. The intrinsic
market value of the silver dollar is now
only 65 cents We buy silver in the open
market at S4 cents an ounce, when the coin
age value of an ounce of silver at the legal
ratio is 100. Under existing law silver IS
purchased at its market value and coined
at the old ratio, 30 that the silver dollar IN
the markets OF the world is worth but 10
cents in gold.
Now. It is proposed that the government
of the United States should coin all the
silyey that may be presented for the bene-
fit of the owner of the bullion, giving him
a dollar. either in gold or note of the
United States. The inevitable effect of
this policy would be to adopt silver as the
only standard, thus reducing the purchas-
ing power of The dollar one-third for the
benefit of the producers of silver and at
the expense of the people OF the United
States.
The pensions Of our soldiers, the value
of the saving deposits of our people and
all existing contracts would be reduced
third in value. Gold would be demon
etized, exported and boarded, and the
basis Of our entire financial system and OF
all values would be measured by money
of less purchasing power than now, and on
footing with the financial systems OF
China and Japan, and all the South Ameri-
can states, and we would be separated from
the standards of universal use in the great
commercial countries Of the world.
This would be dangerous and destruc-
tive revolution in our whole currency sys-
TEN, affecting the purchasing power of all
forms of money and changing all dlyersl-
fed contracts now existing. ] hope this
delusion has passed away and that the
good sense of our people will resent and
reject it and stand by the financial policy
that has made our country the greatest and
richest in the world.
The real remedy of the silver problem is
to put into our silver dollar enough silver
at market value to be equal to gold dol
lar, and to maintain all forms OF money,
whether coin or notes, of equal or inter
changeable value.
TERRIBLE ternadoes prevailed through
The West. Tuesday and Wednesday nights.