The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-16
VIEWS OF SENATOR SHERMAN.

The opinions of Senator Sherman upon
any phase of the financial situation are
more valued than those of any other pub
lie man by those who have any regard for
the public credit or any intelligent ideas
upon money. Consequently, when the Ohio
Senator formally gives his views upon the
situation to representative of the Cincin-
natl Enquirer at the present time, they are
worthy OF consideration.
With the gold reserve down to So, 600 900.
Senator Sherman believes that something
must be done at once. II Congress will
not authorize Secretary Carlisle to issue
per cent. short time bond. he must act upon
the authority he has under the resumption
act and sell to per cent. bonds If the
reserve is not replenished. the treasury
notes may be deprecated Mr.. Sherman
favors an issue of a 3 per cent bond of
denominations of $25 and upwards, redeem
able after five years. He believes that there
are many owners of small sums of money.
now boarded. who would invest in bonds of
s25 $50 and 500, whereas such small money
holders could not purchase bonds OF a
higher rate of interest commanding a prem
ium. The Senator adds that he is frank
though loath to confess that it does not
appear that such a proposition can be got
through either Senate or House." Speaking
Of the opposition to such a measure, Mr.
Sherman said that the South seems to be
committed to financial schemes long since
exploded.
OF the proposition to coin the silver
seisniorage, the Senator said that it was not
only illegal. but. under the laws of Ohio.
would be larceny On this point Mr.. Sher-
man seems very much in earnest. as the
following quotation shows:
Under the so-caled Sherman law the sill
yer bullion In the treasury was 10 be held
as fund OF redemption for the silver GER
utcateS issued against IL. Now, IN Ohio
when the railroad development progressed,
the farmers would bring their wheat to
warehouses for storage. The one holding
II would often speculate upon the grain,
IT. 1t was all right IL he could pay the form
er full market value when he called for II
But 1t happened too frequently that those so
was that the Ohio Legislature passed
law defining such action as
a a0S coin wo S16e con fne the seignior
OF the silver redemption fund now in the
treasury vaults. This, under the Ohio law
1 have recalled. would be larceny. Under
the Sherman law and section not repealed
il is To be held as a redemption fund Then
again there are class who want to issue
treasury notes on the seigniorage; that is,
estimate what the seignioraRe ought to be
and pledge IL a fund OF redemption for
the issue of treasury notes. This class for
hat fhsa oil In he frnn
has had a great shrinkage in value. 1t Is
not now. at the present market value of sill
yer. worth within Sl7 100000 of it's cost TO
the United States. All schemes OF this kind
simply aim at fiat money. If you take
away the fund of redemption behind the
silver certificates now extant these become
fiat money.
Senator Sherman attributes the significant
falling off of the revenues to the agitation
OF tariff revision. since importers will not
import goods now. when in three months
the duties may be reduced so per cent. As
to the effect OF the Wilson bill. should it
be enacted. Senator Sherman said:
Now. the Democrats tell us that the reve-
nues Will at once pick up when the Wilson
tariff bill becomes law. l concede il will
accelerate Importation. But the law of sup
ply and demand is memorable. We con
sumo and make much each year II
under the Wilson bill we import more from
abroad we will manufacture less at home
This will mean that II we are TO compete
at all with foreign markets we will be COM
PEELED 10 reduce the workingman's wages
There is no other alternative. II either
means lower pay for the wace-earner or
enforced idleness and the closing of mills
of diversified industries.
The foregoing are the views OF a states
man who demonstrated his financial sa-
eacity in connection with the resumption
of specie payments