New-York tribune., 1896-01-04
SENATOR SHERMAN SPEAKS.
DEMOCRATIC TREASURY MANAGEMENT
SEVERELY ARKAIGNED.

TIE ADMIHIsrRArIoN RESPONSIBLE FOR THE
DRAIN on TIE GOLD RESERVE THE N
CREASE or THE NATIONAL DEBT AND
FOR ARREsTING THE PROGRESS oT
AMERICAN INDUSTRIES MORE
REVENUE THE TRUE REM
EDy FOR THE TREAS
uRY's EMBAR-
RAss,dENT.
Washington. Jan. s.-rhe resolution offered ny
Mr. sherman Rcp.. Ohio) on Tuesday IN re.atoh
TO the fund laid before the Senate to-
day. and Mr. Sherman addressed the Senate, piei-
acng his speech with remark ihat. contrary 10
his custom. he had reduced his speech 70 writing
accoun; Of the Importance Of the subec; AMI Tor
the sake of clearness ard breviy ANA would pro-
cee1 10 read il. The delivery Of he speech oc-
cuped exactly hour. 1t was read with dist.aci-
ness and force. and listened 20 with the closest
Interest and attention both sldes OF The chamber
M Sherman began his speech by reference 20
:he two recent messages OF the PrcsiGen; Of the
United States in rels lion 20 the Monroe Doctrine
and 10 the condition OF the National finances. As
the former. Re remarked thai Congress had
perhaps too hastily. hut with entire unanni;y.
suppofted the President in maintaining the inter-
wsts and honor of the country .ln the field OF Gi-
pomacy." but Congress had not approved and would
not approve his recommendations as 20 the hnan-
cial policy and especially as % TIE currency. The
Prosiden, had mistaken the OF the present
financial condition In attrihui!ng 1t 70 the demand
fer gold for United States notes instead of 70 the
deficiency of revenue caused by the legislation OF
the Las, Ccngressthus placing the effect before the
cause. And ne had proposed a remedy the con-
version OF United States notes and Treasury notes
into interest bearing bonds. thus Increasing the
interest bearing debt nearly &Jo,1D0o09 The
President had proposed line OF policy that would
produce sharp contraction OF currency add greatly
the burden Of existing debts. and arres the prog
ress OF al;nos; every American INDUSTRY wAch
competed with foreign productions.
IN these views the President supported by the
Secretary OF the Treasury. /. WAS with dfilience.
Mr. Sherman said, that ne undertook to controver;
their opinions but his convictions were so strong
that they were In error that he hoped 10 convince
the Senate by the facts which re would submit that
the true lire OF public policy was to supply ample
rneans for tie Government TO meet current expenses
and to pay eacn year portion Of the public debt.
The GOLD reserve could then he easily maintained
without cost except the loss of interest on gold In
tine Treasury. bIt with a saving Of interest on
United States notes anl Treasury notes OF five times
the Interest lost hy the gold held in reserve. But
vastly greater benefit than the saving of interest
was secured to The people ny National paper cur
rcncy. at par VITA coin. supported ~ tho credit OF
the United States. a-1 redeemed on demand in
coin the Treasury in the principal city oi the
United States fac only difficulty n the way OF ar
easy maintenance Of United States notes at par with
coin was the fact tina: during this Administration
the revenues OF the Government had not been SUI
iicent TO meet the expenditures II congress hai
provided necessary revenue or If the Preslden, ard
the Secretary Of the Treasury had refused TO eX-
rend appropriations not mandatory in form, but per-
,rlssve so as 10 ccnfre expenditures within re-
ceip,s they would have had no difficulty VITA IN"
reserve This would have been stawart act IL
harmony w.h the Presidents character. am PLAINLY
within hts power The President knew as wei! a.
.ta .i.. of he
,sfa of his inauguration the Government eXpend-
,,,es had hee, less :han the receipts. MT. SheT-
,,., hsra produced table showing that IN every
,sar Of tina long per!ol there had been surplus
.f revenue when had beer applied 10 'he 'e'u0''o
.f TIC interest bearing DEBT
INCREASING THE PUBLIC DEBT,
r.,or 10 the presen; ADMINISTRATION he said. the
aggregate reduction Of debt was greater than the
,,w REQUIRED Now for the first time since iSo'
,sere was q deficiency OF revenue. The National
deb; had been increased between MaicA J. $780, anu
december s. 1895 slS2Go2.2i5 The President had
complained in his recent annual message tha' 'he
tariff act of 1890 (he Mckinley acp was insuni-
cien; for the purposes Of revenue. Ihat act ME-
Sherman asserted. had not reduced revenues oelo"
expenses but the contrary mad PROVIDED sur
rlus Of ss7 c3a 762 June %, 1891 OF Ssi''4'o Oh
June 90 lse: and of 81 e74 june 60 1893 when
Mr. Cleveland was elected President and When
democratic majority had been elected In both
Houses OF Congress. al pledged to repeal the me-
1.iney nc; end TO reduce duties II the tariff b!ll
that first passed the House OF Representatives Vhe
Wilson bib. and that met the hearty approval OF
the President, had become law. the deficiency In
revenue would have been much greater than it now
fs but conservative Democratic Senators. Win the
al OF Republican Senators. had greatly improved
the Senate bill, adding other duties and changing
i,s scope The President had refused to sign that
act, and yet he supported it, when deficiencies
had been greatly increased. when the public de3t
was increasing and when doubts were expressed
"a TO the ability Of the Government TO MAINTAIN
its notes at par with coin. The President IN his
message had made ro mention Of these dehc!encea
or OF the issue Of nerest-b ring bonds TO meet
them The Secretary of the Treasury was more
frank IN his statement reporting deficiency OF
So s0S2 go FOR the fiscal year ending June 30, 1874
sae oG.223 for the year ending June 30. 1855. and
$l7, 1883 for the six months up 10 December l.
1885, In all $50 D.. 022
After 81 discussion IN detail Of the effects OF the
Mckinley act and OF The existing tariff law on I'M
ports exports and revenues, Mr.. Sherman SAID that
lie could pursue 10 further the analysis OF the TWO
laws. While he believed IN careful discrimination
and with the imposition OF duties which would pro-
tect ard foster impart!aly all American Industries
he confessed that he had not been satisfied with any
tariff law made during his pubic life. although ne
haa shared IN ir.mins many ne nsn ,S Wnn law
which was. he declared. ;he cause OF all the evlis
encountered OF ADVERSE balance or trade OF
expora ton OF gold aad Of arrangement OF the mon
elary system. The deficiency Of revenue was the
States notes TIE gold boarded for seiempiion pur
poses had not been separated from the money re-
ceved tor current revenue. and, as that revenue
had been insufficient expenses tho gold ac-
cumuhted for redemption purposes hai been drawn
upon to Government deficiencies. This had
created a doub, OF he ability OF the Government
to maintain the parity OF United States notes win
coin and had led their presentation for redeMp-
tlon in coin IN every respect In which the subjec;
presented i:seit 70 his mind ne could come TO no
other conclusion than ha: the deficiency OF revenue
ana the consequent encroaohment upon the redemp-
ton fund We're the causes OF the present financial
condition and that The only remedies were either
radical reduction OF expenditures or an Increase
Of .axation--snd perhaps both He did not believe
however, thai suspension OF public works or a
postponement OF measures now in progress TO
otrengthen The Army and Navy was required. lie
H. mt ,L.In