The McCook tribune. (McCook, Neb.) 1886-1936, 1896-01-10
Sherman on Finances.

the resolution Oy him q Few
days ago relative to the restoration of
the gold reserve. He began by assert
ing that, while Congress would support
the President in maintaining the honor
and integrity of u country in the
field of diplomacy, it will not approve
his accommodation on the more i'm
portant subject Of our financial policy,
and especially Of our currency. Con-
tinuin9, he said:
1.-The President has mistaken the
cause of IL present financial condi-
ton in attributing it to the demand
for gold instead of to the deficiency Of
revenue caused by the legislation of
the last Congress. He proposes as a
remedy the conversion of the United
States notes and treasury notes into
interest bearing bonds, thus increas-
ing the interest bearing debt nearly
$500, 900 600. He proposes a line of
public policy that will produce a sharp
contraction of our currency, add
greatly to the burden of existing
debts and arrest the progress of almost
every American industry which 10
completes with foreign production"
Senator Sherman read from Secre-
tary Carlisie'S report to show that
prior to 1891 the demand for coin for
United States notes during a period of
thirteen years from July [, 1879, to
July l, 1892, was only S43, $40, 800,
while the receipts of gold for United
States notes during the same prior
period amounted to $1G0, 900, 600. The
Withdrawals from the treasury from
July l, 1892, to December l, 1895, have
amounted to $3.50, 26G, SIP. During the
first term of MIR. Cleveland, when he
was powerless to affect our currency
and tariff policy, the Senate being Re-
publican, the gold increased from
$40, O0O, 900 on April /, 1885, to $780,
600, 600 on April /, 1889. This gold
came into the treasury without cost
in exchange for United States notes
or gold certificates. Mr.. Carlisle at
tributes the withdrawal of gold to
silver legislation, yet the Bland
Allison 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was withdrawn after the act of July
II. 1890, was repealed.
In view of these official facts can
any fair minded man have a doubt as
to the cause of our financial condition?
What other cause can be stated than
that unwise legislation reduced our
revenues below our expenditures, inn
paired confidence in our ability to
maintain our currency at par and COM
PEELED the government to sell bonds
provided for the redemption of United
Strtes notes in order to meet deficien-
ciasO Whot Otha- ran nly iS thara f0.
our financial difficulties except to bor-
row money on the best terms possible
to pay current deficiencies and to pro-
vide additional revenue for future
wants?
To this extent and for these pur-
poses l am willing to support this adj
ministration, howevermuch l may dis
agree with it's general policy.
/ do not wish to criticise the sales of
bonds authorized by the resumption
act to meet these deficiencies. Under
the circumstances the administration
impairment Of the resumption fund,
cause OF the invasion of the resump-
created by faulty tariff legislation by
lIlC ldSU SObSI CSo. IhC ISIlCuJ
is to supply by taxation in some form
additional revenue. and, until this
can be effected, to borrow from the
people of the United States enough
mone to owe past and future de-
fcicncies. This done gold will readily
be exchanged for United States notes,
as was done from January /, 1879 to
the election of DIR. Cleveland.
The two defects in existing law re-
lating to redemption, are mentioned
by the President. First, that the
notes presented for redemption must
be reissued. 1t seems from the news
papers that he has found the power to
hold notes redeemed until they can be
exchanged for coin, a discovery that
he should have made sooner. Second,
that the resumption fund is a part of
the general balance in the treasury
and may be applied to current ex-
penditures.
Congress neglected to cure the de-
fects pointed out by me as Secretary
of the Treasury in 1889, but | hope
will correct them now at the request
of the President. 1t was not then an
ticipated that q deficiency of revenue
would occur or that. if it did occur,
the government would use a fund
specifically pledged for another pur-
pose to meet current liabilities.
THE President is of the opinion that
the United States notes and treasury
notes should be retired and give place
to bank notes. This is 4 question for
Congress to decide. 1t is certainly not
of that opinion now, nor was the last
Congress of that opinion.
Il believe that, under existing law,
the aggregate sum of United States
notes and treasury notes issued under
the act of 1890, amounting to about
$3.50, 0Oo, 900, can be easily maintained
at par with coin if the two amend
ments l have mentioned are adopted
by Congress.
"A careful study of the system of
banking currency and coinage adopted
by the principal nations of Europe
convinces me that our system, when
cured of a few defects developed by
time, founded upon the bimetallic
| coinage of gold and silver maintained
at par with each other with free ma
tioral banks established in every city
and town OF Importance in tn United
States issuing their notes secured be-
| yond doubt by United States bonds
or some equivalent security reGeema.
BILE Oh demand in United States notes,
md tho jccr,a Of n NV rn,DrDf 1F T-.I4nI