New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-31
MR.. SHERMAN'S SPEECH.

before the Senate was whether the united states
should suspend the purchase of silver builioh uhue'
the act Of JuIy 1890 II TO decide mat ques-
ton that the President had called Congress TO-
gether I'm special session If that were the only
reason for the extraordinary session II wono seem
to him insufficient. The mere addition OF leV''V'
ounces OF silver to the mass of silver IN the licaa
urv and the addition Of 100000 OF Treasury notes
TO the thousand millions outstanding would haroIS
ius,ifv the call The call justified. however
nv the existing financial stringency growing oU'
OF the fear that the United States "ouIu op'"
it's minis the free coinage OF SILVER Inns ~
the real issue. The gravity OF II couiu no' ~
stated IN words If the single standard OF gold
were had. without the aid OF silver the ie't''o''
between capital and labor would be olstuIoou' ''o
industries Of the country crippled. and the VdIue
of silver still further reduced. on the o'hei NAM
II the purchase Of 100000 ounces OF siFei Pc
year were continued the United States "ouIu ~
eventually brought single standard Oh S"'''.
IN ono thing Congress and the country agreeu'
that was that these two extreme CONDITIONS SHo"
be avoided. and that both gold ana SILVER ShV-'''
be continued in use money, as measures VI N'l
Monometasm pure and simple had never S
a foothold in the United States. The Tree ooi'''1
of silver meant a single standard oil SILVER -
meant reduction of the wages OF labor-not in the
number of dollars but in the quantity OF breau "
meat and other necessares OF HE mat II VIZ
purchase. 1t meant the reputation OF Io'"
of all debts public end private. IL meant oo'"'!
n all banks ana savings INSTITUTIONS ~
companies The problem which Senators h'u ~
solve was how to procure the largest use OF goa
and silver, without demonetizing either
Mr. sherman outlined the circumstances which ieu
lid to the passage of the act OF July 1871 II va "
far better law he said than the bill which the House
had then passed. the bill when the oena'o nav
nassed Senators who criticised it ought 10 reie"-
her that IL wa. substitute for bill OF the i1ou'
ard for a bill of the Senate, either oil whon "'u''
have been more dangerous in It's reSui's ma" Wv
law of 1890 was The President OF 'he '".'ou
states was not justified in ascrbing 10 thaV Jaw
49, oaor. an, ,ciaI strngency If the President
nod TALON q broader view of the causes OF 'le
s,r,ngency il would have been easy for him 10 eN-
plain it.
tNGLANr's FINANCIAL DIFFICULTIES.
rrere was among the nations of the world one
great creditor nation which held American po''"a
and securities in various forms 10 'he aiiou"' "
thousands of millions 1t was country "n0"
had not been invaded by foreign foe Tor 81" years
Ito insular position its safety. III was Il ma
49,, of Intelligent people which commanded the
commerce of the world, and whose nag noa'eu Oh
every sea. Americans should not be asnaiheu VI
that people: should not hate or ulshke tHoii Nv
cause Americans were their children. and possessed
very much Of the qualities Of the parent stocN'
ENGLAND was the great creditor nation. but Eng
,o,d in its vast enterprises had become involved
in difficulties since the passage OF the ACT VI ioV
II had investments amounting TO huhureuS Vi '
ions in the Argentine Confeoerauoh' n' ''
.udden collapse in those investments the great
banking house Of the Barring Brothers was 'oppliis
10 ito fall when the Bank of England ana other
banking houses came 10 tie rescue anu op'd'iou
n,rrev from France and other countries ol E"oP''
Tho immediate result of that was That American
securities were sent home for sale ana 'heii P'
Goods in gold were shipped back TO pay the loS9e9
- Great T2rtain in the Argentine Confederation.
The United States great ana rlch ana
powerful country, but it was ne" 'oU"'''
It's wealth was not in gold and silver ho' even
IN bonds and mortgages TO be soid ap'oa"' i''
.,,b was IN its mines it's farms, its WORKSHOPS iS
railroads These were its sources OF wealth. put
,hoso were also it's danger, because they couiu
mot he developed without going INTO cep'' anu
that debt might be demanded any uhe an" ~
10 be paid in gold or silver or soihetniis ~
Following the Argentine trouble the iaiiu'e' u
tho Australian banks came, ana the same pr
cess Of sending American securities hoiie W.
o,a wont on with the result. Gold was
xvithdravn from the United States. O'her CAUSES
have combined to produce the existing uouo'e'
At the time when these experiences were s0i'e
on Austria. Hungary. Rumania, and several
other countries in Europe were changing from d
paper and silver standard to goid S'a" I. ~
They had made demands for gold through Eng
Isb bankers and the latter had had to sell Amerl-
can securities in order 10 get the gold
TIE BALANCE OF TRADE.
rhere had been still another trouble. For the
FIRST time in many years the balance OF "aue
had turned against the United States last year.
Hitherto the balance had been in taVor Oh ue
limited States to the amount of fifty. one nun
dred and sometimes two hundred million collars
In tho last fiscal year the balance OF trade
was against the United States TO the amount OF
sS7s50DO Whether it would be SO next year no
one could tell. He believed that with the crops
now ripening the balance OF trade would probaDl!
no In favor of the United States this year, and
laf;a, -a1 hot no
followed a panic would be of itself a protection
against unusual and unnecessary imports. 80 ne
hoped that next year there would be no oili-
Guilty in the matter of balance % trade 1t seemed
to him that the President Of the United states.
with his broad conception Of public affairs should
have stated that the existing depression did not
arise from the purchase of four and half million
ounces of silver bullion per month. but that II mad
from causes as apparent as the SKY as
broad as the armament open to the eye Of
every the sun or the moon The eirohe'
Gus idea had been created in the public mind
that that small measure-the act OF 1%o-had
produced results with which IT had no connection
But nevertheless the situation was on the coun
try. and Congress had got to deal with that stu
alton, not with the act of 1850.
Something had been said yesterday by the Sena
tor from Colorado Mr Teller about the loss o?
the bullion purchased under the act of 1880. The
average price paid for it was 7ii4 cents per ounce
and the loss calculated the value of silver to
day) was SO, 34j 35G 1t would be remembered tina
Treasury notes had been issued for the 1900 OK
ounces of silver purchased to the amount Of it:
cost; that no interest was paid on these notes
and that they had been used by the people as
current money
suppose" said Mr.. Sherman. that this pro
vision had not been made in 1890. Suppose tina
we had been compelled to face the storms which
followed lS0-the losses by investments in the
Argentine Republic, the failure Of Australian
banks and all these other troubes-without having
any increase of currency. Who can tell what the
result might have been? Suppose the Sherman law
had not been on the statute book. who tel
what would have been the consequences TO th;
country from the great depressing facts which
have mentioned? Sir. give the devil his due. Th'
law OF 1890 may have many faults; but stanc
by It yet; and / will defend it, not as measure o
good public policy. not as measure in which