The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-01-04

| united states notes and tnat the ONLY
remedies were either a radical reduc
ton of expenditures or an increase Of
taxation and perhaps both. The sen.
ator asserted that during the first tern
| OF Cleveland, when he was powerless
to affect the currency and tariff poll
cies. the senate being republican. the
gold increased from s24o. .0o0. 900 on the
| first OF April, 1885. to $500. 000, 900 on the
| first of April. 1889. This gold came
| into the treasury without cost in ex-
change for United States notes or gold
certificates.
What other remedy" he asked, "is
there for our financial difficulties ex-
cept to borrow money on the best pos
sible terms to pay current deficiencies
and to provide additional revenue for
future wants7 To this extent and for
these purposes I am willing to support
the administration, however much I
may differ with the general policy
He did not wish to criticize the sales of
bonds authorized by the resumption
act to meet the deficiency caused by
the passing of the Wilson law. Under
the circumstances the administration
was justified In doing this. The sena-
tor held that notes once redeemed
should only be reissued for gold coin
and such reissues should be manda-
tory when coin is deposited in the
treasury. With this provision of law
the scarcity of currency would create
such a demand for II that the gold
would be freely deposited in exchange
for the more portable and convenient
notes of the United States. The re-
sumption fund should be segregated
from all other moneys of the United
States and paid out only in redemp-
tion of United States notes. Deficien-
cies In the revenue should be provided
for by bonds or certificates of indebt-
edness of small denominations at a
low rate of interest which would be
readily taken by the people through
national banks, sub-treasuries and
postoffices.
The senator, continuing. said, in
part: "As the term lawfully includes
gold coins, there is a disposition by
the administration banks to convert
the United States notes into coin, thus
aiding in depicting the redemption re-
serve. This ought to be prevented by
provision of law that the bank reserve
of lawful money shall be United
States or treasury notes only. The re-
sumption fund is the safeguard of the
money of the people and its use for
any other purpose is a practical re-
pudiation of the public faith. A care
full study of the systems of the bank
ing currency and coinage adopted by
the principal nations of Europe con-
vinces 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
tional banks established in every city
and town of importance of the United
States, issuing their notes secured be-
yond doubt by United States bonds or
some equivalent security, redeemable
on demand in United States notes, and
the issue of an amount of United
States notes and treasury notes equal
to the amount now outstanding with
provision for a ratable increase with
the increase of population, always re-
deemable in coin supported by an am
pie reserve of coin in the treasury. not
to be invaded by deficiencies of reve-
nue and separated by the sub treasury
system from all connection with the
receipts and expenditures of the gov
a system would make |
our money current in commercial cir |
lies in every and all climes. better |
han the best that now exists In Eu- |
'ope-better' than that of Great Brit |
,An. which now holds the purse strings |
# the world. All ask now is that you |
will not disturb it with your defcien-
lies; you will not rob IT of it's safe |
ar,7o xxriI to q A..
# wildcat money; you will not lessen |
he savings of our prudent labor or the /
of the rich. Time makes
Ill things even. Let us give to the /
xecutive authorities ample means to /
meet the appropriations you have. but
ct us strengthen rather than weaken
ur monetary system which lies at the
Of our prosperity and prog
ess"
At the conclusion of Sherman's re-
marks Butler, populist, North Caro-
ma, renewed his request for immedl-
tie consideration of his bill to pro-
fbit the future sale of bonds except |
nth the consent of congress. News
apers. he said, had told the story of
he impending bond issue Action
hould be had at once. Butler asked
consent to put his bill upon
assage. Hin, who happened to be in
he chair. rather startled the senate
y himself interposing an objection.
Mills then took the floor 10 reply to
herman. He repelled the charge that
ne Fifty-third congress was in any
'ay responsible for the present finan-
al crisis. The burden belonged TO
ne Fifty-first congress and Sherman
as partly responsible for the legisla-
on of that congress. The democrats
ad turned over TO the Harrison ad-
in 1889 $3.50. 900. 600 How
as it. he asked. If the claim that the
IcKinley bill had produced sufficient
svenue was true, that in 1893, when |
lie democrats again assumed control,
II that surplus was gone. consumed |
nd dissipated?
1