The daily morning journal and courier., 1896-01-04

istration was justified In doing this, even to the impairment of the resump- ton fund. But it ought frankly to say that the cause of the invasion of the resumption fund was the deficiency of revenue created by faulty tariff legls- lation by the last congress. Such a de- ncency is discredltable to the United States. with it's vast wealth and re- sources,
 "There is no difficulty in collecting, by taxation, more money than is neceS- sary for it's expenditures. It is humili- ating to read in the newspapers of the day that our government is negotiating for money from associated bankers and, like distressed banker 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 tax ation in some form additional reVenuN, and, until this can be effected, to bor- row from the people of the United States enough money to cover past and future deficiencies, This done, gold will readily be exchanged for United States notes, as was done from Jan uary, 1878, to the election of MT, Cleve- land.
 'The two defects in the existing law relating to redemption are mentioned by the president. First, that the notes presented for redemption must be reis- sued. It seems from the newspapers that he has found the power to hold notes redeemed until they can be ex- | pbn n uhI C., ppin.-o liS1nIrarN- ha a should have made sooner Second, that the redemption fund is a part os the general balance in the treasury and may be applied to current expenses.
 Congress neglected to cure the de fleets pointed out by me as secretary of the treasury in December 1880, but I hope will correct them now at the re- quest of the president. Notes once re deemed should only be reissued for gold coin, and such reissue should be man. datory 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 provisions in the law the resumption fund could not be invaded bO llACCl dtIlClGINlGS III llle ltN NtHut' They should be provided for by bonds or certificates of indebtedness, Of such denominations at a low rate of interest, which would be readily taken by the people through national banks, sub. treasuries and post offices"
 Further on in his speech MT sherman spoke of the presidents complaint that notes were presented and paid, reissued and paid again and again, making a continuous circuit
 When" he asked. had that circuit commenced? It had commenced when this administration Supported by the last congress) had created deficiency, and it continued because the deficiency continued. Whatis Secretary Carlisle's ground for the hope expressed by him that in two or three years there will be no deficit? The only ground for such hope is that a new administration will provide more revenue; and then the cir cult will be broken. Why not apply the remedy noW?"
 He believed, he said. that under eX- isting law the aggregate sum of United States notes and treasury notes issued under the act of 1890 (about $f00, 900 ,0O0l could be easily maintained at par with coin if the two amendments mentioned by him were adopted by congress, These notes had all the sanction, pro- lection and security that had been or could be given to national bank notes, with the added benefit that the large saving derived from them insured to the people of the United States instead of to the banks.
 . Another reason founded upon belieG was that the national banking system could not long endure if the United States notes were withdrawn. The dis position of silver certificates was a much more serious problem. They were, in express terms, redeemabe in silver dollars.
 Ought they not. he asked be redeem ed by silver dollars? While silver dol lars were maintained at par with gold it would seem that there was no inius- tice in paying them for silver certifi- cates. Then came up the question of free coinage of silver which he regard ed as the most dangerous policy. All these were vital questions.
 The president recommended the re- demption and cancellation of outstand- : ing United States notes and of the treasury notes issued for the purchase of silver under the law of 1890, and the substitution of national bank notes as the only currency. In this the presi- dent was supported by large and influ~ ential classes of citizens, most of them engaged in banking. or classed IS capi- talists. They forgot that during a peri cd of fourteen years there had been no difficulty Il maintaining government notes at par with coin.
 There was scarcely a doubt but that in all probale conditions of trade or finance except the contingency of war) the whole mass of United States notes and treasury notes now in circula atOn could be maintained at gar with coin if it were supported by a resevre of gold coin or bullion. or silver bullion, In due proportions. equal to one-third or one fourth of the amount of such notes.
 In conclusion MT Sherman said:
 ''It is not given to man to foresee with certainty the future; but if we may judge the future by the past, the growth and progress of our country will con tinue. 1 have seen great changes in my life, but those who come after us will see greater changes still. All ask now is that you will not disturb our present finacial system with vOur def