The Portland daily press., 1896-01-04

and, Las that revenue.had been insufficient
to meet expenses, the gold accumu ated
for re demption purposes had been urawn
upon to meet govern ment 6efluiencies.
This had created a doubt of the ability
OF the government to maintain the pari ty
of United States notes with coin and
had led to their presentation for redemp-
ton in coin. In every respect in which
the subject presented itself to his mind, he
could come to no other conclusion than
that the deficiency of revenue and the
consequent encroachment upon the
redemption fund was
THE CAUSE
of the present financial condition and the
only remedies were either a radical re-
duction of expenditures, or an increase
Of taxation, and perhaps both.
He did not believe, however, that q sus-
pension of public works or a postpone
inent Of measures now in progress to
strengthen the army and navy was re-
CURED. He thought it strange that tho
President should ignore entirely the preg
nant and controlling fact that during
MS term of office there had been three is
sues OF bonds, aggregating 1852 81, 400, TO
meet current expenses in tiino OF pro-
found peace. The President attributed
al uilo AAhuCldl Qll1lGIlUlbS 10 CD6 fOnE1H-
ual circulation of United States treasury
notes, amounting to nearly $500, 900, 900,
and bearing no interest. These notes
were the hest possible substitute for coin
and furnished, in connection with the
United States bonds, the means by which
alone the army and navy could have been
sustained during the war. Their retire.
ment after the war was over had been
mooued, but no party or section OF the
country demanded their cancellation.
From the first day of January, 1879,
Sherman continued, to the election of
MIR. Cleveland in November, 1892, there
was 10 disturbance of the orderly receipt,
and exchange of gold and currency. The
gold deposits in the treasury in exchange
for bonds in the summer and fall of 1878
amounted to 500, 500. 600.
The ordinary current revenue in the
Treasury conducted the vast operations
OF the government without friction or
trouble for. nearly IA years. United States
notes at par were coin not only in every
part of the United States, but in every
country in the world. During all that
long period, United States notes were pre-
sented for redemption, but in amounts
comparatively insignificant
1t is just to Mr.. Carlisle to say that he
attri butes the withdrawal of gold to sill
yer legislat ion, yet the Bland silver act
was in force from 1878 to 1890, when the
accumulation Of gold occurred, and the
great body of gold was Withdrawn after
the act Of July IA, 1890, was repealed.
In view OF these official
facts, can any fair man doubt as to the
cause of our financial condition? What
other cause can be stated than that UNI.
wise legislation reduced our reserve below
our expenses, Il
IMPAIRED CONFIDENCE
in our ability to ,aaipfoip o,1r o,,rronov
at par, and compelled the government to
sell bonds for the redemption Of United
States notes in order to meet deficiencies?
What other remedy is there for our finan-
cial difficulties except to borrow money
on the best terms possible to pay current
expenses and to provide additional rev.
enue for future want?
do not wish TO eriticise the sale of
bonds authorized by the resumption act,
to meet deficiencies. Under the ciroum-
stances the administration was justified
in doing this, even to the Impairment of
the resumption fund. But it ought frank
ly to say that the cause of the invasion
OF the resumption fund was the deficiency
Of revenue created by faulty tariff legis-
lation by the last Congress. Such de-
ficiency is discreditabIe to the United
States with its resources. There is no
difficulty in collecting by taxation more
money than is necessary for it's expendi-
lures. 1t is humiliating to read in the
newspapers of the day that our govern
ment is negotiating for money from as
sociate bankers and like distressed
debtor in view of bankruptcy is offered
by a friendly power, it's accumulated
gold to relieve us from our supposed
financial distress. The true remedy is to
supply by taxation in some form, the
additional revenue, and until this can
be effected to borrow from the people of
the United States enough money to cover
past and future deficiencies This done,
gold will readily be exchanged for Unit
ed States notes, as was done from Janu-
airy, 1878 to the election Of Mr.. Cleveland.
The defects i'll the existing law to re-
demption, are mentioned by the Presi-
dent, the first that are presented for re-
demption must be reissued. 1t seems
the power to bold notes redeemed until
they can be exchanged for ooin, a dis
covery that he should have made sooner.
.ESecond, that the redemption fund is
a part of the general balance in the
treasury and may be applied to current
expenses. Congress, Mr.. Sherman con-
tinued, neglected to cure the defects
pointed out by Inc as Secretary of the
Treasury in December, 1880, but l hope
will correct them now at the req uest of
the President Notes once redeemed
should only be reissued for gold coin and
such reissues should be mandatory when
coin is deposited in the treasury. The
resumption fund should be segregated
FROM all other moneys OF the United
States and paid out only in redemption
of United States notes. With such pro-
visions in the law, the resumption fund
could not be invaded to meet deficiencies
in the revenue. They should be provided
for by bonds or certificates of indebted
ness of such denominations at low rate
of interest, which would be readil; tag
en- by the people through national banks
sub-treasuries and post Office
In conclusion Mr.. Sherman said: 1t is
not given to man to toresee with certain
ty the future, but if we may Judge the
future by the past, the growth and pro-
gress of our country will continue. /
have seen great changes..in my life, but
those who come after us will see greater
changes still. All ask now is that you
viii. not disturb our present financial sys-
tenn with your deficiencies, will not rob
it of it's safeguards. will not return to
the days of wild cat money, will not
lessen the savings OF prudent labor or the
accumuIations 0f the rich. Time makes
all things even. Let's give the exeou-
tive authorities ample means to mean fine