The Greenville times., 1895-02-09
A pAMNINe RECORD.
Facts which shou the Eostsnnsss Of Re-
pzbliean Methods


sometimes rises above partisanship, IS
subject TO the most disastrous relapses-
Here is an instance Of the latter;
/ II Is q weIl-knoWn fact tnat the present IN
fortunate situation Is due mainly to 3 radical
/ 1enarture from the republican policy under
which such a situation was unknown The
democratic tariff Law has reduced the revenue
/ 10 point which causes q monthly deficit. and
democratic schemes Of currency reform have
seriously impaired the public credit
This is not well known. and it is not
the fact
We will not say that the trouble
about the gold reserve and the eurren-
ey generally began under the Harrison
administration, for such trouble really
begins when the first false step is
taken, and that was years before. But
it is fact that the trouble began to
manifest itself distinctly and unmis-
takably under the Harrison admins
tration, and that it progressed so far
that even in the last month Of that ad-
ministration Secretary Foster had pre-
pared to issue bonds This was charged
last fall, and when Foster was asked
to deny it, he wrote to Washington to
inquire whether there was any record
evidence there that he had done this.
Being informed that none had been
found, he wrote a letter saying there
was no foundation for the statement.
Then letter of his own was printed
giving directions for the preparation of
the plates. and the plates themselves
are still in existence.
A few indisputable facts are worth
libraries full of theories Specie pay
ments were resumed January /, 1879.
For the fiscal years from 1879 to 1881,
inclusive, the redemption Of United
States notes averaged s2,635, 600 per
annum. All understood that they
could get gold for greenbacks when
they wanted II, and, consequently, few
wanted it. The banks furnished the
gold needed for export For the fiscal
year 1892 the redemptions amounted to
s0,i25,00O. This was under the Harrison
administration, and before the elec-
tion. The distrust caused by the Sher-
man act and the Mckinley bill had al
ready begun. For the twenty-seven
months succeeding the close OF the
fiscal year 1899 the redemptions
amounted TO S2O6,5O0,0o0. All Of this
period, except thirty-four days, was
under the Mckinley bill
Prior to the period of distrust which
began under Harrison the normal
amount Of gold received for customs at
New York was about rs per cent. From
July |, 1902, 10 September 80, ls94--all
of which period, except thirty-four
days, was under the Mckinley bill--it
was only about i2 per cent, and dur
ing the last seventeen months only 81
per cent. The movement upon the
gold reserve, therefore, and the virtual
suspension Of specie payment by the
banks, began under the Harrison ad-
ministration, and has gone on at an
accelerating ratio. Account for II as
you may, that Is the simple fact. I'm
partial tinanciers attribute 1t to the
Sherman and the Mckinley acts.
1t may be asked, what had the Nc
Kinley bill to do with it? It certain
ly had as much to do with 1t as the new
tariff act, and republican papers say
that the latter is the cause Of the pres
ent trouble because 1t does not yield
revenue enough. Now the Mckinley
bill is subject to the same objection.
The republicans deny this, because
they say there was no deficit till the
Mckinley bill was repealed. They try
to establish this by showing that there
was no deficit "at the end of fiscal
year." while the Mckinley law was in
force. But every intelligent person
knows that this is quibble and mere
attempt to palter with us on a double
sense. 1t is easily demonstrable that
the Mckinley bill did not yield revenue
enough to meet the enlarged scale of
expenditure to which the republicans
committed the country.
The Harrison administration began
dissipating the surplus even before the
Mckinley bill was passed. The habit
OF estimating this surplus at S1o0, ,0Oo,-
600 is misleading. Mr.. Cleveland left
in 1889 an accumulated surplus of about
$4,000 900, and besides, the revenues
were some s1oo,oOO,OOo year in excess
Of expenditures. II the revenue had
been kept up and expenditures kept
down during Mr.. Harrison's term the
surplus would have been nearer $780,
100000 than si0o, 900 900. A reduction of
revenue was, therefore, proper IL ex-
penditures had been kept down. But
the Fifty-frst congress, while reducing
the revenue, increased expenses, and
this led invariably to deficit.
The Harrison administration adopted
several expedients to avoid the appear
ance Of deficit. First II squandered
the surplus-not only the surplus in
March, 1889, but that which accumu-
lated between that time and the mas.
sage Of tho Mckinley BILL Then Il
changed the form Of the debt statement.
Then 1t seized trust fund of $50. .OOO.-
600, held for the redemption of the
bank notes, and used that, and much
OF 1t was not refunded before the expi-
ration of Mr.. Harrison's term. Then
finding itself unable conveniently 10
pay more than s25,oOO,OOo Of bonds due
September, 1891, 1t continued them. In
these various ways, by the shifts and
evasions of bookkeeping, It contrived
to conceal the deficiency of revenpe
which existed under the Mckinley bill.
L q