River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1896-01-09
shERmAN.s cllaE-


Ohio Senator Presents a Remedy for
finaneiai Ills.
Washington. Jan. The resolution
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 oI,eileu ms speech by a
reference 10 the two recent messages Of
the president Q. the United States In rela-
ton &c the Mcnroe doctrine and 10 H.
condition of the national finances. As 20
the former. re remarked that congress had
perhaps tor hastily bur with entii e
unanimity supported the president IN
maintaining the interests and honor OF
the country in the field If diplomacy"
but as TO the latter congress hid not APP
proved ana would not app I've his recon-
mendations to tile financial policy aud
especially as 10 the currency. The pres
ident mad mistaken the carse OF the pres
ent findnc.3l condition in agtributing il to
the demand for gold for Unhed States
notes instead OF to the def, iency of rev.
enue caused by the legisla Ion OF the last
congress, thus placing the effect before
the cause. And he had proposed as a
remedy the conversion of United States
notes and treasury notes INTO interest,"
bearing bonds. thus increasing the inter-
est-bearing debt nearly $4,000 CO.," Tire
president had proposed a line of policy
that would produce = sharp contraction
of currency, add greatly To the burden OF
existing debts. and arrest the progress Of
almost every American industry that ccm-
peted with foreign predictions.
In these Views the president was sup
ported by the secretary of the treasury.
1t was with diffidence that he tSenator
Sherman) undertook to controvert their
opinions, but his convictions were so strong
that they were In error thSt he hoped 10
convince the senate by the facts which
he would submit that the true Line of pi b.
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 me
way OF an easy maintenance of United
States notes at par with CON was the fact
that during the administration the rev
enues of the government had not been
sufficient &c meet the expenditures.
1T is humilating to read In the news
papers of the cay that our government is
negotiating for money from associated
bankers and, like a distressed de- tor in
view of the bankruptcy, is offered by
friendly power its accumulated gold to re-
lleve US from our supposed financial dis
tress. The true remedy Is to supply by
taxation in some form additional reveaue
and until this can be effected to borrow
from he people of tho United States
enough money to covVr past and future
deficiencies.
Congress- Senator Sherman contln-
ued, neglected to cure the defects pointed
out by me as secretary OF the treasury in
DecemD per. 1885,, but / hope VIII correct
them now at the request OF the president
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 the 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 denominat ions al low rate
Of intel est which would be readily taken
BY the DeoIle 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 anu paid, reissued
and paid again. and again. making a con-
linuou5 circuit. When, ne asked, had
that circuit commenced? 1t had COM
menCed when this administration Sup
ported by the last congressl had created
deficiency. and 1t continued because the
deficiency continues.
The free coinage of silver he regarded
as the most dangerous policy of all. There
was scarcely a doubt but that in all prob
able conditions of trade or finance fexc4pt
the contingency of war;. the whole mass
Of United States notes and treasury notes
now in circulation could be maintained at
par with coin IL IL were supported by a
reserve of golG or bullion, or silver bull
lion In Cue proportions, equal to one-thild
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 1898 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
Tor 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 1898. when the democrats again
assumed control, all that surplus was
gone, consumed and dissipated?