The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1896-01-10
SHERMAN ON FINANCE.
His Recent Speech In the United
States Senate.
THE GREAT CURRENCY PROBLEM.

Attack Upon the Administrations Policy
Che Ohio Senator Says the President Is
Mistaken as to the Cause of Our Finsn-
ciaI Condition and That His Policy Would
Contract the Currency-The Wilson and
the Mckinley Tariff Laws Reviewed.
Retirement of the United States and
Treasury Notes Opposed.
Mr. PREsIDENT-The president, in his
annual message to congress- confined him
self to two important subjects. one our
foreign relations and the other the condl-
tion of our national finances. He followed
IL by another message on the application
of the Monroe doctrine to the controversy
between Great Britain and Venezuela
While congress has heartily perhaps
hastily but with entire unanimity, sup
ported him in maintaining the interests
and honor of our country in the field Of
diplomacy it has not and will not approve
his recommendations on the more impor-
tant subject of our financial policy and es-
pecially of our currency. He has mistaken
the cause of our present financial condi-
ton in attributing it to the demand for
gold for United States notes instead of the
deficiency of revenue caused by the legis-
lation of the last congress- He places the
effect before the cause. He proposes as a
remedy the conversion of the United
States notes and the treasury notes into
interest bearing bonds, thus increasing
the interest bearing debt nearly $500, 000,-
900. 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
now completes with foreign productions.
The president is supported in these views
by Mr.. Carlisle, his able secretary of the
treasury, in his report to congress. 1t is
with diffdence l undertake to controvert
their opinions but my convictions are so
strong that they are in error that hope
the strength of the facts 1 will submit to
the senate will convince it that the true
line of public policy is to supply the gov
ernment with ample means to meet the
current expenditures and to pay each year
portion of the public debt The gold re-
serve provided for the redemption of Unit
cd States notes can then be easily main
tanned without cost except the loss of in
terest ON the gold in the treasury, but
with saving of interest on United States
notes and treasury notes of five times the
interest lost by the gold held in reserve.
vastly greater benefit than saving interest
Is secured to our people by national pa
per currency at par with coin supported
by the credit of the United States and re-
deemed on demand in coin at the treasury
i.s4. g Al TJ..s4
Government Revenues.
The only difficulty in the way of an
easy maintenance of our notes at par with
soin is the fact that during this admins
tration the revenues of the government
have not been sufficient to meet the ex-
penditures authorized by congress. If con-
gress had provided the necessary revenue
or if the president and Mr. Carlisle had re-
fused to expend appropriations not man
datory in form, but permissive so as to
confne expenditures within receipts, they
would have no difficulty with the reserve.
This would have been stalwart act, In
harmony with the presidents character
and plainly within his power. All appro-
priations which are not provided to carry
into effect existing law are permissive, but
not mandatory, and his refusal to expend
money in excess of the revenues of the
government would not only be justified
by public policy, but would have been
heartily approved by the people of the
United States. He knew as well as any
one that since the close of the civil war to
the date of his Inauguration the expendi-
lures of the government had been less than
Its receipts. l have here table which
shows the receipts and expenditures each
year from 1866 to 1898.
From that official statement it appears
that each and every year during that long
period there was surplus which was APP
piled to the reduction of the public debt
bearing interest This debt amounted |
Aug. 81, 1866, to SO, 3S1, $50, 1894. On the
LIST of March, 1898, it was $685., 034, 260,
thus showing a reduction of the interest
bearing debt of 81, 1896, 496, 034. The pub
lie faith was pledged to this reduction in
our loan laws and by the act creating
sinking fund, and, though in some years
we did not comply with the terms of the
sinking fund, yet in other years we ex-
oeeded its requirements, and prior to this
administration the aggregate reduction of
debt was greater than the law required
Now for the first time since $3.50 we have
deficiencies of revenue Since the 1st Of
March, 1898, to the 1st of December. lS95.
the national debt has been increased S162..
coz, 245
The president in his recent annual mes
sage complains that the law of Oct. 8,
1890, known as the Mckinley act, was
inefficient for the purposes of revenue"
That law, though it largely reduced taxa
tion by placing many articles on the free
list and granted bounty for the produo.
tion of sugar, yet did not reduce revenues
below expenditures, but provided sur
plus of S37, $50, 762. 81 June 80, 1891, and
$9,914, 1896 June 30, 1892, and 81. 341,-
674.29 on the Both OF June, 1893. when
Mr.. Cleveland was president and DEM
ocratic majority in both houses of con.
gress had been elected, all pledged to re-
peal the Mckinley act and to reduce du-
ties. That the Mckinley act did not pro-
duce more revenue in 1898 and 1894 is not
matter of surprise. Any tariff law de-
nounced by the party in power, with a
promise to repeal 1t and to reduce duties,
would prevent importations under ;he cid
law and thus lower the revenue. Early IN
December, 1898, at the first regular ses.
sion of congress during MIR. Cleveland's
term, bill was formulated and as soon as
practicable passed the house Of representa-
fiyes. That bill met the hearty approval
NJ the nrcsident IL IL had become a law