The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-04

during the administration the revenues OF
the Government had not been sufficient 10
meet the expenditures. If Congress had
provided necessary revenue, or if the Presl-
dent and the Secretary of the Treasury
had refused to eXpend appropriations not
mandatory in form, but permissive, so as
to confine expenditures with receipts, they
would have had no difficulty with the re-
serve. This would have been a stalwart
act in harmony with the Presidents char
acter and plainly within his power. The
President knew as we'll as any one that
from the close of the Civil War to the date
of his Inauguration the Government ex-
penditures had been less than the receipts.
In this connection Sherman produced "a
table showing that every year during that
long period there had been a surplus of
revenue, which had been applied to the re-
duction of the interest-bearing debt.
The President, Sherman continued, had
complained in his recent annual message
that the tariff act of 1890 (the Mckinley
act) was insufficient for the purpose of rev.
enue. That act, Sherman asserted, had
not reduced revenues below expenses, but
on the contrary, had provided a surplus.
II the tariff bill that first passed the House
of Representatives (the Wilson bilD-and
that met the hearty approval of the Presi-
dent-had become law, the deficiency in
revenue would have been much greater
than 1t now is; but conservative Demo
cratic Senators, with the aid of Repub-
Hcan Senators, had greatly improved the
House bill, adding other duties and chang
ing its scope. The President had refused
to sign that act and yet now he sup
ported it.
After discussion, in much detail, of the
effects OF the Mckinley act and OF the
existing tariff law on imports, exports and
revenues, Mr.. Sherman said that he could
pursue no further the analysis OF the two
laws. He regarded the Mckinley law as
infinitely better than the Wilson law,
which was, he declared, the cause of all
the evils now encountered, of adverse bal
ance of trade, by expectation of gold and
by arrangement OF the monetary system.
The President attributed all the financial
difficulties to the continued circulation of
the United States and treasury notes,
amounting to nearly $500, 900, 900 and bear
ing no interest.
alt is Just TO Mr.. Carlisle" continued
Sherman, Ito say that he attributes the
Withdrawals of gold to silver legislation;
that the Bland silver act was in force from
1873 to 1890, when the accumulation of
gold occurred, and the great body of gold
was withdrawn after the act of July a.
1890, was repealed. What other cause can
be stated than that unwise legislation re-
duced our reserve below our expenses,
impaired confidence in our ability to
maintain our currency at par and COM
PEELED the Government to sell bonds for
the redemption of United States notes in
order to meet deficiencies? What other
remedy is there for our financial difficult
ties except to borrow money on the best
terms possible to pay current expenses
and to provide additional revenue for
future wants2 To this extent and for
these purposes l am willing to support
this administration, however much | may
disagree with its general policy"
81 do not wish to criticize the sale of
bonds authorized by the resumption act
to meet deficiencies" said Sherman.
Under the circumstances the admins
tration was justified in doing this, even to
the impairment OF the resumption fund.
There is no difficulty in collecting by
taxation more money than is necessary
for its expenditures. The true remedy is
10 supply by taxation in some form ad-
ditiosal revenue, and until this can be
effected, TO borrow from the people OF the
United States enough money to cover past
and future deficiencies.
Notes once redeemed should only be re-
issued for gold coin, and such reissues
should be mandatory when coin is de-
posted in the treasury.
-. j
gated from all other moneys OF the United
States, and paid out only in redemption of
United Statee notes. With such provi-
sions in the law the resumption fund could
not be invaded to meet deficiencies in the
revenue. 1t should be provided for by
bonds or certificates of Indebtedness of
such denominations at low rate of inter-
est which would be readily taken by the
people through National banks, sub-treas-
uries and postoffices. -
Further on in his speech Sherman spoke
of the residents complaint that notes
were presented and paid, reissued and
paid again and again, making contin-
uous circuit. When, he asked, had that
circuit commenced?
1t had commenced when this admins
tration supported by the last Congress)
had created deficiency, and it continued
because the deficiency continued. What
was Secretary Carlisle's ground for the
hope expressed by him that in two or
three years there would be no deficit?
The only ground for such hope was that
a new administration would provide more
revenue, and then the circuit would be
broken. Why not apply the remedy now?
The free coinage of silver he regarded as
the most dangerous policy of all. There
was scarcely doubt but that in all proba-
bic conditions of trade or finance Except
the contingency OF war; the whole mass of
United States and treasury notes now in
circulation could be maintained at par
with coin, if it were supported bya reserve
OF gold coin or bullion or silver bullion in
due proportions, equal &c one-third or one
fourth of the amount of such notes.
In conclusion Mr.. Sherman said:
"All 1 ask now is that you will not dis
turb our present financial system with
your deficiencies; will not rob it of its
safeguards; will not return to the days of
wildcat money; will not lessen the savings
of the prudent laborer, or the aocumuIa-