The Portland daily press., 1896-01-04
SHERMAA'S LOGIC.
The Prince Of Finance Talks to the
Senate.
LAY PRESENT DEFICIENCY TO
THE WILSON BILL

More Taxation Needed to Meet Current
Expenses-A Deficient Revenue Leads
to the Export of Gold-The Ohio States
mans Speech.
Washington, Januarys8. In the Senate
today Senator Sherman, Republican of
Ohio, spoke on the financial question
He opened his speech By reference to
the two recent messages of the President
of the United States in relation to. the
Monroe doctrine, and to the condition of
the national finances AS to the former,
he remarked that Congress had perhaps
too hastily, but with entire unanimity,p
supported the President in maintaining
the interests and honor of the:country
in the field of diplomacy; but as to the
latter, Congress had not approved and
would not approve his recommendations
as to the financial policy and especially
as to the currency. The President had
mistaken the cause Of the present fnan-
cial condition in arbitrating it 80 the de-
mand for gold, United States notes, in
stead of to the deficiency of revenue
caused by the legislature of the last Con-
gress, this placing the effect before the
cause. And he had proposed as remedy
the conversion of United States notes
and treasury notes into interest bearing
bonds, thus increasing the interest bear
ing debt nearly $780, o0o 600. The resi-
dent had proposed line of policy that
would produce sharp contraction of
the currency, add greatly to the burden
OF existing debts, and arrest the progress
OF almost every American industry that
competed with foreign productions. in
these views the President was supported
by the Secretary of the Treasury.
1t was with Offence, that he (Shermaill
undertook TO controyert their opinions,
but his convictions were sd strong that
they were in error that be hoped to CON
vince the Senate by the facts which he
would submit That the true line of public
policy was to supply the government with
ample means to meet current expenses
ana to pay each year. q portion oftthe
public debt.
The gold reserve could then be easily
Iraintained without cost, except the loss
of interest on gold in the treasury, but
with a saving of interest on United
States and treasury notes of five times the
interest lost by the gold held in reserve.
But vastly greater benefit than the
saving of interest was secured to the
people by national paper currency at
par with coin, supported by the credit
OF the United States, and redeemed ON
demand in coin at the treasury in the
nrjOcjpa lcitv in tho I'm tad
THE ONLY DIFFICULTY
in the way Of an easy maintenance of
United States notes at par with coin was
the fact that during the administration,
the revenues of the government had not
been sufficient to meet the expenditures.
If Congress had provided necessary reye-
nue. or if the President and Secretary of
the Treasury had refused to expend ap-
preparations not mandatory in form but
permissive, SO as to confine expenditure
within receipts, they would have had no
dlhiculty with the reserve. This would
have been stalwart act in harmony
with the Presidents character and plain
ly4within power. The President knew
as we'll as anyone ethat from the close of
the civil war 10 the date of his inaugu-
ration the government expenditures had
been less than the receipts.
In this connection Mr. Sherman pro
dued table showing that every year DUR
ing that long period there had been
surplu of revenue, which hadsbeen ap-
piled to the reduction of the interest
bearing debt. Prior! to the present adj
N lnistratlon, he said, the aggregate re-
duction of debt was greater than the law
required. Now for the first time since
1866 there was a defciencySof revenue,
The national debt had been increased
between March l, 1898 and December l,
1895, $l62. 692, 245. The President, Mr..
Sherman continued. had complained in
his recent annual message that the tariff
of 1890, the Mckinley act, was insufficient
for the purposes of revenue. That act,
Mr.. Sherman asserts, had not reduced
revenues below expenses, but on the con-
trary, had provided surplus of $37, 230, 672
on June 80, 1884, of 49, 914, 453 on June
80, 1892 and of s2,341,6 74 on June 30,
1898, when MI. Cleveland was elected
President and when Democratic MAORI
ty had been elected in botn houses of
Congress, all pledged to repeal the Nc
Kinley act and to reduce duties. If the
tariff bill that first passed the House,
(the Wilson BILLY and that met the hearty
approval OF the President, had become a
law, the deficiency in revenue would have
been much greater than it now is; hut
the aid of Republican senators, had great
ly improved the House bill, adding 9th
er duties and changing it's scope The
President had refused to sign that act
and yet now he supported it. when de-
ficiencies had been greatly increased,
when the
PUBLIC DEBT WAS INCREASING,
and when doubts were expressed as to the
81
its notes at1par with coin.
The President 1nshis message has made
no mention of these deficiencies or of the
issue of interest bearing bonds to meet
them. The Secretary of the Treasury
was more frank in his statement, report
ing a deficiency of $50, 8o3, 800 for the ifs
cal lear ending June 80, 1884, S4s, sos. 1923
for the year ending June 3d. 1895, and
SIT, 618,539 for the SIX months up to De-
Gem Der !, 1895 in all $3.50, 222, 022 A IL after