The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1893-07-05
Financial and Industrial.

suspending, and rapidly increasing
number of business failures is reported.
A year ago the people of the United
States were in the full enjoyment
of a degree of prosperity that was
the wonder and the envy of the other
nations of the earth. What has caused
the change? The so-called Sherman
silver purchase law of 1890, say the
doctors of the dominant political school.
What is this baneful measure which, it
is alleged, in less than six months has
blotted out the nations splendid pros
perity? 1t was enacted July IA, 1890,
and went into operation thirty days
after its approval by the president.
This law directed the secretary of the
treasury to buy each month 4 100000
ounces of silver bullion, and to issue
treasury notes in payment of such
purchases. These notes were made
redeemable on demand, in coin, and
were legal tender for all debts, public
and private, aud were receivable for
customs, taxes and all public dues.
The secretary of the treasury was d.
rected to coin monthly, until July l,
1891, 100000 ounces of the bullion
bought under this act into standard
silver dollars, and after that date to
coin so much as might be necessary to
provide for the redemption of the
treasury notes issued for the purchase
of silver bullion.
What is the history of this law?
February %, 1878, congress had made
law requiring the purchase of silver
bullion and the coinage of not less
than 100000, nor more than S4,-
900, 900, monthly. Free and unlimited
coinage of silver had been demanded,
and the act of 1878 was proposed and
accepted as compromise. In 1890, in
response to the ceaseless agitation of
the silver question" the house COM
mittee on coinage reported bill for
| the purchase of silver to the amount of
S4,500,000 in each month, to be paid
for in United States legal tender notes.
Upon the demand of any holder of
these notes, the secretary of the treas
ury was authorized 10 exchange for
them an equivalent amount of silver
bullion at the market price on the day
of the exchange. A motion to substi-
tute for this bill proposition for the
free coinage of silver was defeated, 10
republicans and 102 democrats voting
for free coinage, against 1877 republi-
cans and Is democrats opposed. The
bill passed the house, 1874 republicans
voting yea, and Z republicans and 112
democrats voting no. In the senate a
provision for free coinage was substi-
tuted, the affirmative vote being IA re-
publicaus and 30 democrats, the mega
tive vote being p republicans and 8
democrats. The house rejected the
senate amendment, the republicans
voting no, the democrats voting yea
In conference differences were COM
promised, and the act of July IA, 1890,
the existing" Sherman law" was the
result. On the passage of the COM
promise measure in the senate the yeas
were SO Gall republicans), the nays, 26
(all democrats). In the house, 122
representatives voted yea, of whom 12l
were republicans; 80 voted nay, all
democrats. In the recent contests in
senate and house, the votes on the sill
yer question have shown similar dem
ocratic tendency to free coinage and a
similar insistence by the republicans
upon sound financial legislation.
Now the exigencies of politics de-
mand of President Cleveland, the party
that elected him, and the papers that
support him, that the silver pur-
chase act of 1S90-misnamed the Sher-
man act-be held responsible for all
the financial and industrial woes that
have attended the accession of the de-
mocracy to the full control of the gov
eminent. The act of 1890 was inter-
posed by the republicans as buffer to
deaden the shock favorite democratic
measure, free silver coinage, would
have communicated to the business in
terests of the country. 1t was never
the expression of a settled republican
policy. 1t was intended as a temporary
expedient, pending the determination
of the ultimate status of silver. But
for the fisherman law" instead of 8
somewhat copious shower of the white
metal there would have been the deluge
To this relatively innocuous measure
President Cleveland, in his message
summoning congress to meet ON Aug.
7, attributes the disasters which render
the extra midsummer session necessary
For months he has calmly viewed the
rising tempest without putting forth {
hand to defend the public interests
He was RELOCATING to the autumn
montha the narformanca of on ont Al