The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-01-06
SHERMAN'S GREAT SPEECH


Continued from Page IL
been issued under that act. United States
notes and silver certificates wer more con-
venient to purchase cotton. and corn, and,
when maintained at parity with coin,
will always be preferred In large COM
merclal transaction as well as III the cur
rent business of life.
The Presidents Proposal.
In view Of these official facts, can any
fair man doubt as to the Cause OF our
be Stated than that unwise legal action
reduced our revenues below our expendi'
lures. impaired confidence In our ability
to maintain our currency at par, anu
provided for the redemption OF United
States notes in order to meet deficiencies! !
What other remedy Is there for our nnan-
cial difficulties except to borrow money on
ficiencies, and to provide additional rev,
enue for future wants? To this extent and
for these purposes i am willing to sup
port this administration, however much
may disagree with Its general policy.
But the president Is not satisfied. He
demands the retirement and cancellation
of all the United States notes and treas
ury notes by. the sale of bonds OF the
United States bearing interest. In his an.
nual message he says: "In anticipation Of
impending trouble, had on the 2Sth day
of January, 1895, addressed a communica-
tiOn to the congress fully setting forth our
difficulties and dangerous position and
earnestly recommending that authority be
given the secretary Of the treasury to is
sue bonds bearing low rate OF interest
payable by their terms in gold for the
purpose of maintaining a sufficient gold
reserve, and also for the redemption and
cancellation of outstanding United States
notes and the treasury notes issued for
the purchase of silver under the law OF
1890. This recommendation did not, now
ever, meet with legislative approval
He might have said that 1t was rejected
by both houses of congress each contain
ing majority Of his policcal friends
With the experience of fourteen years, the
people of the United States as well as their
representatives were almost unanimously
in favor of a currency so easily main
tained at par in coin by the promise OF the
United States to pay 1t In coin and py
holding In the treasury $lOO,VOOooO goid
coin for its redemption when presented
No one contemplated that this reserve
would be used to pay current expendi-
lures. In all our legisla ton since the war
ample means We're provided to meet cur
rent expenditures without trenching upon
this reserve and 1t was not encroached
upon until Mr.. Cleveland became presi-
dent Instead of demanding more revenue
he urged the reduction of duties and Sc
cured the passage of law which reduced
the revenue and forced the treasury to en-
current obligations If this policy Is
adopted to compel the people Of the United
States to surrender the best paper curren.
cy they have ever enjoyed, 1t Will fail.
Ifrsvenuei Is wanted to meet current expen-
ditures IL will be furnished either by tax
alton Of by borrowing, or by both. but to
create deficiencies In order to compel the
cancellation of United States notes by the
issue of bonds will not. In the language
of the president. meet with legislative
apDroyal"
The Endless Chain"
Mr.. Cleveland in his message complains
that when notes are presented for redemp.
ton and are redeemed. the law requires
that they shall belong to the United states,
they shall not be retired. Cancelled or de-
stroyed. but they shall be reissued and
paid out again and kept In circulation.
The right to reissue Is necessary incl
dent to a circulating note. The United
states does what every bank does. BY
this provision is furnishes q note foi
circulation better than any other yet de-
vised by mortal man.
He also says 1.-THE government was put
in the anomalous situation OF owing to
the holders Of its notes, debts payable IN
gold on demand. which could neither be re-
OF obligations due the government nor
cancelled by actual payment In gold. 1t
was forced to redeem without redemption
and to pay without acquittance."
1t see,us to me that when the govern
ment redeems its notes, the former holder
of the note has no right to say whether II
shall be reissued OF not. The last SEN
tence Is without a meaning. III the United
States redeems its notes the holder has
nothing more to say, and when the United
States pays out note it always takes
receipt, which Is an acqutttance
The president says that In April, 1888
for the first time since It's establishment,
this reserve amounted to less than slO9..
annn nfpfy nj
S97 oil ,3sO fnis significant statement made
as 10 the earliest days Of his administra-
lion, should have excited In the mind OF
the president an Inquiry into the cause
reserve for redemption purposes was the
proceeds of SOS. 10000 bonds and no more
in addition to this reserv, 1t Is necessary
to have on hand to meet current expendi-
lures, the sum of from $40 WO. OOO to w. oOo.
OOO. AZ certain periods, u large balance is
accumulated to pay the interest OF the
public debt and other large disbursements
for the army and navy Any excess should
be at once applied to the reduction Of the
principal Of the public debt. This line of
public policy was continued from the
first Of January, 1879, to the 4th Of March,
1893, including the first administration
Of Mr.. Cleveland. During this period,
many times more gold were deposited in
amounts OF gold weie deposited In the
treasury for gold certificates. The public
debt was largely diminished. Not shad-
ow of a doubt had been cast upon the
ability Of the government to redeem Its
notes or to maintain its reserves. The
minimum never fell below $1OO, 100000.
Nor would the reserve have fallen be-
low that minimum during and after 1893,
but for the known policy of the presi-
dent to reduce duties on imported goods,
followed soon by the enactment of the
tariff law now in force. resulting in a
large reduction OF revenue, and in de-
ficiencies that could only be paid out Of
the resumption fund.
1t is but fair to state that the resump-
ton act of 1875 did not segregate the re-
sumption fund from he general balance
nor did it provide that notes redeemed
should be held in place for the coin paid
out. Nor would deficiencies have occurred
had not the president and both houses
of the F'ifty-third congress, then In po-
litical sympathy, united I'm passing a law
reducing the revenue below expenditures
for the first time since the close of the war
and compelled the executive authorities
to apply a fund created for the redemp-
ton Of United States notes to meet the
ordinary expenses Of the government This
demonstrated fact is the source and fOun-
tain of all our present financial difficult
ties.
do not wish to criticize the sales
of bonds authorized by the resumption
act to meet thes deficiencies. Under the
nj OF q N cac tho a1mini ist r fiop tp