The times. [volume] (Richmond, Va.) 1890-1903, 1895-11-19
SENATOR SHERMAN STANDS BY THE
tETE<EAtks.

In the second volume OF his recently
published memoirs. Senator John Sher-
man says that he has long been of opin-
ion that no people can construct their
financial system from a foundation Of
coin alone. that the foundation will
prove too narrow for the demands Of
the Government and business in times of
emergency. For this reason he is in
favor Of the Government issuing and
always keeping anoat a certain volume
Of its iegal-f.nder notes as circulat-
ing medium.
This view OF the case is no
DOUBT what causes many other
men. who are rated as very
sensible men, to oppose the cancellation
of the Government issues that now form
a part of our currency, and that keep
the business or the country in constant
state OF dread and tremor by their regu-
lar raids upon the gold reserve.
II Mr.. Sherman's postulate were grant
cd. we do not see why 1t should follow
that the paper currency necessary to
broaden the basis OF our money system
must be Government notes, Grant that
we must have the specie basis assisted
by a paper currency. yet we do not see
why that paper adjunct may not rest
upon private credit as well as upon pub
lie credit. We had that system in opera
ton from the beginning of our Govern
ment until 1851. and though we passed
through several stages OF financial panic
In that time. yet their causes are all def
nItely known. and there was nothing I'm
those causes that furnishes any argument
against the idea OF paper currency rest
ing upon private credit. The system
never got into full and uninterrupted
operation until 1891. and from that time
until the war came on the country pros
pered as II never has prospered. with this
all-important fact the most prominent of
all-that the prosperity was common TO
all the people. and did not manifest itself
In greatly wealthy individuals and vast
numbers making no progress.
In demanding that the adjunct To specie
shall consist of the Governments legal
tender notes. Senator sherman plainly
has 1t in his mind that when the Govern
ment puts out its promise TO pay a dollar
and makes 1t legal tender for a dollar
Of debt. the Government has really created
a dollar and added IL TO the stock of the
countrys money. Ii is most astonish-
ing that IL should be possible TO impute
such an opinion TO a man who ranks as
high among sound financers as Senator
Sherman does. but il is not only possible
TO impute that opinion TO him, but il is
the identical opinion which he holds
Though Senator Sherman would resent
an in2utation that he was In any way
tinged with the creed OF the Popuists, yet
that is the Populists' creed In finance
and there Is no real difference at bottom
therefore. between Sherman and PETER
or Sherman and Simpson. They both be-
lieye that the Government can convert
paper into money by making II legal
tender for debt. and when that identity
OF opinion is established between them
they are put at one. so far as finance
is concerned.
ANY man OF good. hard. common sense,
who ever thought upon II for a moment,
knows that II is impossible for the Gov
eminent to convert piece Of paper into
money. and that when II attempts to
do so. II may build up gilded dome
that can dazzle tho eyes OF men for
time. but that II must collapse after a
while. and crush all upon whom II falls.
Mir. Sherman therefore. would build HIS
financial ediice upon foundation one
half OF which was granite and tho other
half OF which was mud. that would yield
~ soon - pressure was put upon II and
PROSTATE his edifce TO the ground as
soon - Il got wen VA In sh- Air- The