The Bessemer indicator., 1893-09-02

sal condition of unusual character and 1t
seemed to him the first thing TO do would be
TO inquire what brought It about, and yet.
during the three weeks Of the session, he had
not heard anybody suggest an Intelligent
reason for the present financial condition.
| Nobody .hsd snslyzed the question rs
u whether the cause was or was
not the sherman act. He could not
treasury notes for the purchase Of
silver could have brought about the etisting
hard times " the government had bought
the silver and dumped It in the sea 1t would
have had no Influences on the fnanoes oil the
world and the existing disturbances was AS
wide as the world. There has been no log
ieal attempt on the part Of the senators and
there would not be, to show what caused the
evil. He challenged any senator 10 tell, and
I to tell the American people, he believed the
people had brought about the panic because
/ they were afraid OF their money II he did
he would be under obligations to cltc some
Instance where people had exhibited fear of
| their money.
Mr. Teller went on at great length to dis
cuss the course taken by the New Y ork banks
| In refusing TO pay their depositors' checks
In currency and in trying to work up public
opinion In favor of the repeal Of the sherman
act. lie noted reported interviews Win the
| President and Secretary Carlisle and crltii
cised the views attributed to the President
| and which he said had never been denied
that the people OF the country needed an Oh
ject lesson and were going 10 get 1t. With
out concluding his remarks Mr.. Teller yielded
! for a motion to proceed to executive business
and afterwards the Senate adjourned.
HDusE.-The entire session WAS occupied
In a debate over the rules, participated In
principally by Speaker Crisp and Mr.. Reed
Wednesday. August 3oth.
SESArE.-1he bill To repeal the Sherman
act was laid before the Senate and MIR. Sher-
man proceeded to address the Senate. He
cat tl..I Inn lI.f, h.,e ts
United States should suspend the purchase of
silver bullion under the act OF July, 1890. 1t
was to so decide that question that the Prcsi-
dent had called Congress together. II that
were the only reason for the extra session. It
would seem to him insufficient.
The mere addition OF 1000, 900 ounces of
silver to the mass of silver in the treasury and
the addition of sli0, 900 treasury notes to
those outstanding, would hardly justify the
call. The call was justified however, by the
existing financial stringcncy growing out of
the fear that the country would open Its
mlnis to the free coinage of silver, This was
the real Issue. The gravity of 1t could not be
stated In words If the single standard of
gold were had without the aid of silver, the
relations between capital and labor would be
disturbed. The Industries of the country
would be crippled, and the value of silver still
further reduced. On the other hand, II the
purchase of 81 100000 ounces of silver were
continued, the country would eventually be
brought To single standard OF silver. On
one thing Congress and the country agreed
that was that these two extreme conditions
should be avoided, and that both gold and sill
yer should be continued In use ms money,
measures Of value The problem which sen
stors had to solve was how to procure the
largest use of gold and silver without demon
etiZlng either.
Mr.. sherman went on TO give n history of
the circumstances which led up the passage
of the act of 1890 It wns far better law he
said, than the bill which the House had then
passed. Senators who criticised It ought to
remember 1t was a substitute for a bill of the
House and for bill OF the Senate, either of
which would have been more dangerous in Its
results than the law of 1879 was
Since 1890, the banking houses of England
had become involved IN difficulties. England
had investments amounting to hundreds of
millions In the Argentine confederation. by
some sudden collapse In those investments
the great banking house Of the Barings wa.
toppling to Its fall, when the Bank of Eng
land and the other banking houses came TO
the rescue aud obtained money from France
and other countries of Europe. The imnc-
date result OF that was that American secuti-
ties were sent home for sale and their pro-
ceeds In gold were shipped back to pay the
Losses Of Great Britain In The South American
republic.
There had been still another trouble. For
the first time in many years the balance OF
trade had turned against the United States |
last year. Hitherto, the balance had been In
favor of this country to the amount of tlO0,- ]
1000 The last fiscal year the balance was
against the United States. Whether 1t would
be so next year no one could tell He thought
with the crops now ripening the balances
would probably be In favor of the United
States this year; and he thought the forced
economy which followed panic would be n
protection against unusual and unnecessary
imports. So he hoped that next year there
would be no difficulty In the matter OF balance
Of trade.
Something had been said yesterday by the
senator FROM Colorado (Tcller) about the loss ]
in the bullion purchased under the act OF 1890 1
The average price paid for 1t was siiI cents
per ounce aud the loss calculated on the |
value of silver today was s22, ,3i5,356. 1t |
would be remembered the treasury notes had /
been Issued for the $50 O0O, 900 ounces of sill |
yer purchased to the amount of Its cost, tina, |
no interest was paid on these notes, and tii1i /
they had been used by Tie people current .
money.
suppose continued Mr. Sherman. "ihis /
provision had not been made In 1880. suppose |
we had been compelled to face the storms |
which followed 1890, the loss by investments
In the Argentine Republic, the failures of
Australian banks. etc, without having any
increase OF currency, who can tell what the
result might have bcen'
Suppose the Sherman law had not been on
the statute books, who can tell what would
have been the consequences TO the country
from The great depressing facts ! have men
toned,
"sir, give the devil his due. The law of
1880 may have many faults, but stand by IL
vet. and will defend it, NOT rs a measure of
good policy, not as a measure In which take
any pride because was yielding to dire me-
cessty) but because withou; It we would have
met difficulties In 1891 and 1892 which would
have staggered us much more than the pass
ing breeze of the hour.
II am not blind in regard to the operation
Of the law Of 1890 Long before our Demo
cratic friends ever thought OF providing any
measure OF relief proposed relief in a bill
which introduced, in almost the same words
as the bill of the senator from Indiana (Voor-
hces). But DID our friends on the other side
see the danger then and help us to suspend
the operation of the law OF ls90i They can
not answer. did think, after Two years trial,
that 1t was better to suspend 1t: and we, on
this side of the chamber, tried to do It; but
we had no support on the other side. II is,
therefore, manifest nm not a new convert to
the repeal of the purchasing clause of the
act OF 1880. do not however, vote for the
repeal with any anticipation that 1t will, In
any considerable degree, relieve us from the
industrial stagnation that has fallen on lis and
that has thrown ont OF employment hundreds
of thousands OF people.
The President In the midst of the panic
appeals TO us to repeal this law, and he will
not make this appeal to me In vain. ! have
no sympathy with him In politics, but / be-
lieye In this matter he Is right and 1t Is my
duty TO respond to his call. ! will cooperate
in any measure that Will tend TO maintain
the harmonious use OF silver and gold Ms
standards of value. hope the next measure
Of relief which my friend from Indiana
tNoorhccs) will provide will be Il broad ib-
eFal measure, authorizing the President or
the secretary Of the treasury 10 sell securities
in order 10 maintain the parity of our cur
rency. There Is another thing; we must not
overlook the fact that possibly the balance OF
trade may be against us next year. The ap-
propriatlonS made at the last Congress,
though made after the scrutiny of careful
economists, mny exceed the revenues of the
government, and some authority to make
good the deficit (whatcYcr II might bc) ought
to be provided. Some power should be given
to the executive in the matter. II that he
not done and the revenues be too small TO
meet expenses, the executive would have no