The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-04
Borrow Money on the Best Terms
= and Provide Additional
Revenue.
MISTAKES OF THE PRESIDENT.
In Stating the Cause of the Country's
Condition Cleveland Had Argued
Enormously.

WASHINGTON, D. c., Jan. 3.-For over
FIVE hours to-day the Senate was in the tur-
MOL OF q financial discussion. 1t was
opened by an hours speech from Sherman
(R.) of Ohio, a leading member of the FL
nance Committee, in support OF his reSo-
luton to set apart the reserve fund of 500,
100000 gold when in the treasury and seq
regate it from the ordinary current re-
ceipts. He argued that there was no other
cause for the financial difficulties of the
Government than the unwise tariff iegis-
lation OF Congress which had reduced re-
ceipts below expenditures, had impaired
confidence, and had compelled the Gov
eminent TO sell bonds in order to meet de-
ticiencies, and that there was no other
remedy except to borrow money on the
best terms possible 10 pay current def
cieneies and to provide sufficient revenue.
TO that extent and for those purposes he
was-willing to support Mr.. CIeveland's adj
ministration, however much he disagreed
with its general policy.
The coin reserve must be, Sherman said,
kept unimpaired instead of being drawn
upon to meet current expenses The i'm
pairing OF that fund (from which $50 600, 600
had been paid out in the last two and
half years. was the source and fountain Of
all the financial difficulties and the true
remedy was to supply by taxation addi-
tional revenue and TO borrow from the
people of the United States enough money
10 cover past and future DEFICIENCIES. No
action was taken on the resolution, which
lies on the Vice-Presidents table to be
taken up for further discussion. As soon
as it was laid aside the resolution offered
some days ago by Elkins, declaring it to
be the sense Of the Senate that the United
States bonds should not be sold under
private contract and without advertise
ment, was taken up and discussed with
much spirit until, the time OF adjourn
ment. a motion to refer it to the Finance
Committee was defeated by the immense
majority As 10 6, and the adjournment
motion was carried by a majority Of only
one.
During the routine business of the
morning hour Morrill, (R.) of Vermont,
chairman OF the Finance Committee,
moved that when the Senate adjourned
to-day it adjourn to meet on Tuesday
next He expressed the hope that at that
time the Finance Committee would be
able: to report both the bond and tariff
bills of the House. The motion was
agreed to.
Hale (R.) OF Maine introduced bill to
facilitate. the construction and mainten-
ence OF Geographic cables in the Pacific
Ocean for the use'of the Government in
its foreign intercourse. It was laid on the
table.
Hoar (R.) OF Massachusetts introduced,
by request, a joint resolution proposing an
amendment to the constitution OF the
United States so as to give the right of
suffrage to women. Referred to the Judi
ciary Committee.
Squire (R.) OF Washington introduced a
point resolution appropriating $4,000 for
the share OF the United States in the ex-
:aense of. locating and determining the
boundary line between Alaska and British
North American territory. Referred to
the Committee on Foreign Relations.
George Cd of Mississippi introduced
and asked unanimous consent for the con-
sideraticn OF bill for the repeal OF the law
which requires proof of loyalty during the
War of the Rebellion as a prerequisite in
any application for bounty land warrants
30 soldiers in the Mexican War. The bill
was passed.
Line IESOIubiOAl O4ICItu DN fL.1
of Ohio last Tuesday in relation to the re-
serve fund was laid before the Senate, and
Sherman proceeded to address the Senate,
prefacing his speech with remark that
contrary TO his custom he had reduced his
speech TO writing, on account of the i'm
portance of the subject and for the sake of
clearness and breVity would proceed to
read 1t.
Sherman opened by reference to the
two recent messages of the President of
the United States in relation to the Mon
roe doctrine and the condition of the Ma
tional finances. AS to the former, he re-
marked that Congress had perhaps too
hastily, but with entire unanimity" sup
ported the President in maintaining the
Interests and honor of the country ''in the
field of diplomacy" but as to the latter,
Congress had not approved and would not
approve his recommendations as to the
financial policy, and especially as to the
currency. The President had mistaken
the cause of the present financial condi-
ton in attributing 1t to the demand for
gold for United States notes instead of to
the deficiency of revenue caused by the
legislation of the last Congress, thus plac-
ing the effect before the cause. And he
had proposed as remedy the conversion
of United States notes and treasury notes
into Understanding bonds, thus increas-
ing the interest-bearing debt nearly $780,
100000" The President had proposed a
line of policy that would produce g sharp
contraction of currency, add greatly to the
burden of the existing debts and arrest the
progress of almost every American indus
try that competed with foreign produc-
tions.
In these views the President was sup
ported by the Secretary of the Treasury
1t was with diffidence that he (Sherman)
undertook to controveIt their opinions,
but his convictions were so strong that he
hoped to convince the Senate by the facts
which he would submit that the true line
of public policy was to supply the Gov
eminent with ample means to meet cur
rent expenses and to pay each year a por-
ton of the public debt. The gold reserve
could then be easily maintained without
cost, except the loss of interest on gold in
the treasury, but with saving OF interest
on United States notes and treasury notes
of FIVE times the interest lost by the gold