The Providence news. (Providence [R.I.]) 1891-1906, 1896-01-04
sHERMANs SPEECH

s'The President has mistaken the cause
OF the present financial condition in at
tributing it to the demand for gold for
United States notes instead OF TO the de-
fciency of revenue caused by the legisla
tion OF the last Congress. Thus spok
the veteran Senator SHERMAN in opening
a speech in the Senate yesterday on the
financial situation.
How simple tho situation is and yet
how blind in bis progress through the
kindergarten OF finance is the President
OF the Uniteo States. lie is acquiring his
financial education as ne did bi, tariff
education at the expense OF great nation,
but the folly OF his State papers on these
two subjects are, more fortunately, at his
own expense. That President OF the
United States should be tempted into so
elaborate nn argument in support OF SO
absurd premiss as was afforded an
amazed country hy that message 10 Con-
gress on the financial situation is only
another indtcation CT that streais IN human
nature which so often prompts a man 10
talk most Oh subject ABOUT which he
knows least
The Presidents financial views lind
very little support even among his nor
NAL supporters. The Providence Journal
is one OF the few newspapers in the land
that seriously argues on the lines laid
down by the President with the same in
ability SO marked in the makeup of the
President TO know il when it is ridicu
ous. But the Providence Journal counts
for little aud is rarely quoted abroad
now q days. Except TO bolster up the
fortunately lost cause of "tariff reform"
and g free trade, f" there is small disposi-
tion to combat the plain fact that befor
there existed troublesome financial
condition there was q demorslIzing tariff
situation. Our currency system IL far
from perfect but it worked famousiy SO
long as our revenues were ahead OF our
expenses. So long as there is plenty Of
cash on hand no mere currency system
can make much bother. But when reve-
the cash drawer is empty, when bank
ruptcy looms up ahead, 1t is then that
methods of financiering, currency systems,
ais all the paper machinery OF debt and
credit become Of prime importance. But
It is not until then. And to argue that
a reform OF any such system is going to
make up for actual cash deficit is like
attempting to pay your debts by resrrang-
ing your method OF bookkeeping.
Methods Of bookkeeping, to be sure, have
their influence in getting the most vaioo
out OF money, but they cannot make
money nor can any 'sr.form' in them
make up for the absence OF cash.
The fact IL, that under the CLEVELAND
administration there has existed a de-
ficiency OF revenue for the first time since
1866 and the national debt has been in
creased in two years i162, ,602 2i5. 1t is
a fact, too, that the $500 600, 600 OF treas
ury notes afloat did not disturb the
orderly receipt and exchange OF gold and
currency until the election of Presidcn,
CLEVELAND. Gold was exported ireel;
during all the years, bu, IL was not
-i,ttiea-ett of the geld reserve All this
Senator SHERMAN pointed out in bis
speech on the Doog OF the Senate yester-
day IL was no great effort,
since never was financial problem sim
pier or requiring lcss intricste analysis
or elaborate argument TO elucidate Il.
Changes in our financial system are in
dicated, but they were indicated before
President CLEVELAND came into Office
a1d began to take primary lessons on the
subject. I he prosperity OF the country.
HpU does not Il -, ,,oh .L..~.