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

N' T'''' ii '"' NAi b N'4At ou IoI-, IllN pk S-,- 3Ah674, oN June S0 1898, when Mir. Cleve- land was elected president and when a democratic majority had been elected in both houses of congress, all pledged to | fepea, the MCkirley act, and to reduce duties. If the tariff bill that first pass ed the house of representatives (the l Wilson bJD, and that met the heargy approval of the president, had become d law, the deficiency in revenue would have been much greater than it now is, bug conservative democratic senators, with the aid of republican senators. 1 had greatly improved the house bill, , adding other duties and changing it's scope.
 The president refused to sign that act, and yet now he suppor.cd it. when deficiencies had been greatly increased when the public debt was increasing and when doubts were expressed as t. the ability of the government to main tam it's notes, at par with coin. The president, in his message, had made no menti-n 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, re- porting deficiency of $69, 500, ,260 for the fiscal year ending June 30, 1894; $42,- SOo,22 for the year ending June 30, 1895, and SIT, ,6l3,5S9 for the six months up to December l. 1S95-in all $13O222, 022.
 After a discussion, in much detail, of the effects of the Mckinley act, and of the existing tariff law, on imports. exports and revenues, Mir. Sherman said that while he believed in a careful dis 1 crimination and of the imposition of duties that would protect and foster i'm partially all American industries he confessed that he had not been satis- tid with any tariff law made during his public life. He regarded the Mckinley law as infinitely better than the Wilson law, which was, he declared, the cause of all the evils now encountered, of ad | verse balance of trade, by exportatil ln of gold, and by derangement of the monetary system
 The deficiency of revenue was the primary cause Of the demand for gold for United States notes The gold boarded for redemption purposes had not been separated from the money re- ceived for current revenue, and as that revenue had been insufficient to meet expenses the gold accumulated for re- demption purposes had to be drawn up- on to meet government deficiencies. This had created a doubt of the ability of the government to maintain the par tty of United States notes with coin, and had led to their presentation for redemption in coin.
 In every respect in which the subject pre2ented itself to his mind he could come to no other conclusion than that the deficiency of revenue and the con- sequent encroaehment upon the re- demption fund was the cause of the present financial condition, and that the only remedies were either in a radical reduction of expenditures, or an in- crease of taXation-and perhaps both.
 He did not believe, however, that a suspension of public works, or a post ponement of measures now in progress to strengthen the army and navy was required. He thought it strange that the president should ignore entirely the pregnant and controlling fact that dur ing his term of office there had been three issues of bonds, aggregating $162,- 315, 400 to meet current expenses in time of profound peace. The president at tributed all the financial difficulties to the continued circulation of United States and treasury notes, amounting to nearly $500 coo, GOO, and bearing no in- terest
 These notes were the best possible substitute for coin, and furnished Gin connection with United States bonds) the means by which alone the army and navy could have been sustained during the war. Their retirement af- ter the war was over had been mooted but no party or section of the country demanded their cancellation.
 Prom January l, 1S79," Mir sherman continued, ito the election of MT. Cleye- land in November, 1892 there was no disturbance of the orderly receipt and exchange Of gold and currency. The gold deposited in the treasury in ex- change for bonds, in the summer and fall of 1878, amounted to $95, 800, ,000 The ordinary current revenue in the treas ury conducted the vast opera tions of the government without friction or trouble for nearly fourteen years.
 Limited States notes bore at par with coin not only int every part of the United States, but every part of the world. During all that long period United States notes We're presented for redemption, but in amounts compara- lively insignificant, while during the last three and half years the redemp- ti2H of United States notes and treas ury notes exceeded $l00, 900, 900 for each year. During the last thirteen years gold was exported in large quantities but it was not drawn from the reserve; but during the past three and a half years $3600000 GOO was drawn from the reserve and $305 GOO exported.
 Tt is just to MT. Carlisle to say that he attributes the withdra wals of gold to silver legislation, yet the Bland ril- yer act was in force from 1878 to 1890, when the accumulation of gold occurred, and the great body of gold was with drawn after the act of July 14, 1890, was repealed. In view of these official acts, can amy fair man doubt as to our financial condition? What other cause can be stated than that unwiSe legis- lation reduced our reserve below our expenses impaired confidence in our ability to maintain our currency at par and compel the government to sell bonds for the redemption of United States notes, in order to meet deficien- cies?