The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1896-01-08
SHERMAN'S CURE.
Ohio Senator Presen ts Remedy
for Financial Ills.
His Speech in the Senate Declares That
More Revenue Is Necessary-Fr Free Coin
ago the Most Dangerous
of Policies.

offered by Senator Sherman (rep., o.
in relation to the reserve fund was laid
before the senate and Senator Sher-
man addressed the senate.
Senator Sherman op.-neu ms speech by
reference to the two recent messages OF
the president o. the United States in rela-
ton tic the Monroe doctrine and to the
condition of the national finances. AS to
the former ne remarked that congress had
perhaps too hastily. but with entire
unanimity' 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 APP
proved ana would not approve his recon-
mendatIons as to the financial policy and
especially as to the currency. The pres
tdent had mistaken the cause of the pres
emit financial condition in attributing it to
the demand for gold for United States
notes instead OF to the deficiency of rev.
enue caused by the legislation of the last
congress, thus 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 inter-
est-bearing dent nearly $4,000. Co., The
president had proposed line of policy
that would produce a sharp contraction
Of currency, add greatly to the burden Of
existing debts, and arrest the progress of
almost every American industry that COM
peted with foreign productions.
In these views the president was sup
ported by the secretary of the treasury.
It was with diffidence that he (Senator
Sherman) undertook to controvert their
opinions, but his convictions were so strong
that they were in error that he hoped to
convince the senate by the facts which
he would submit that the true Line of pub
lie policy was to supply the government
with ample means to meet current ex-
penses and to pay each year a portion of
the public debt. 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 rev.
enues of the government had not been
sufficient tc meet the expenditures
1T Is humiliating to read in the news
papers of the cay that our government is
negotiating for money from associated
bankers and, like distressed debtor in
view of the bankruptcy, is offered by a
friendly power its accumulated gold to re-
tieve Us from our supposed financial dis
tress. The true remedy 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 money to cover past and future
deficiencies.
Congress" Senator Sherman cont1n-
ued. neglected to cure the defects pointed
out by me as secretary of the treasury in
December, 1880. but / hope will correct
them now at Tie request OF the pT0SlOeEC.
Notes once redeemed should only be re-
issued for god coin, and such reissues
should be mandatory when coin is de-
posted in the treasury"
The resumption fund should be segre-
gated from all other moneys of the United
States and paid out only in redemption of
United States notes. With such pro-
visions in the law tn. resumption fund
could not be invaded to meet Deficiencies
in the revenue. They should be provided
for by bonds Ut certificates of indebted
ness, of such denominations at a low rate
of intel est which would be readily taken
by the people through national banks, SUBJ
treasures and post offices.
Further on in his speech Senator Sherman
spoke of the presidents complaint that
notes we're presented and paid, reissued
and paid again. and again, making con-
tinuous circuit When, he asked, had
that circuit commenced? 1t had COM
menced when this admin stration (sup-
ported by the last congressl had created
deficiency, and it continued because the
deficiency continues.
The free coinage of silver he regarded
as the most dangerous policy of all. There
was scarcely doubt but that in all prob
able conditions of trade or finance Except
the contingency of war;. the whole mass
of United States notes and treasury notes
now in circulation could be maintained at
par with coin if it were supported by
reserve Of golC or bullion. or silver bull
lion in cue proportions. equal to one-thi1d
or one-fourth Of the amount of such notes.
Senator Mills (dem., Tex.) took issue
with the statement of Senator Sherman
that the tariff act of 1893 was the cause
of the present financial difficulties.
Senator Mills said the burden be-
longed to the 51st congress, and Sen
ator Sherman was partly responsible
for the legislation of that congress.
The democrats had turned over to the
Harrison administration in 1889 $780,
100000. How was it, he asked, if the
claim that the Mckinley act had pro-
duced sufficient revenue was true, that
in 1893. when the democrats again
assumed control, all that surplus was
gone, consumed and dissipated?