The daily morning journal and courier., 1896-01-04
SENATOR SHERMANS SPEECH
CONGRESS WILL NOT APPROVE THE PRESIDENTS FINANCIAL POLICY

 Must Increase Revenue Says the Present Emergency warrants the Sale of Bonds,
 Washington, Jan, S,-The finance com mittee of the senate failed to come to an agreement on the bond bill at their meeting this morning. In consequence it was not brought up in the senate to-day. Senator Sherman's speech on his resolution introduced on Tuesday was therefore the only matter of gen- eral interest in the upper house to-day.
 Senator Sherman's resolution recited the facts that by the injurious legisla- tion of the Fifty-thi congress the rev. enues of the government were reduced below its necessary expenditures; that the fund created by law for the re demption of United States notes has been invaded to supply such deticien- cies of reserve; that such a misappli- cation of the resumption fund is doubt ful legality and greatly injurious to the public credit, and should therefore be prevented by restoring to such fund the sum of not less than $1O0,0O0,OO0 in gold coin or bullion, this to be segre- gated from all other funds and to be paid out only in the redemption of United States notes and treasury notes, and that such notes when redeemed are to be reissued only in exchange for gold coin or bullion.
 The senate has, on motion of MT. Morrill,, rep, of Vermont, chairman of the finance committee, agreed when it adjourns to-day to adjourn until Tues day next. Mr. Morrill, expressing the hope that at that time the finance conf mittee would be able to report both the bond and tariff bill of the house.
 Senator Squire offered a joint resolu- tion providing for commission to de- termine the Alaskan boundary line. 'It is of more importance to the United States than the Venezuelan controver- sy,' he said, flor the United States is concerned in person." He asked for an appropria ation of $75,000.
 Senator Butler, the North Carolina populist, asked unanimous consent for the consideration of bill to prohibit the issuance of any more interest bear ing bonds by the president without the consent of congress. Senator sherman objected.
 Nevertheless the populist senator said: There isn't any necessity for discussion on this point. It is as sim pie as ? and 2 make or they don t. Whats the use of talking? Every sen ator knows just how he will vote now,
 Senator Sherman then began his speech upon his financial resolution Contrary to his custom, he read the speech from manuscript.
 He opened his speech by reference to the two recent messages of the pres ident of the United States in relation to the Monroe doctrine, and to the con- dition of the national finances. As to the former he remarked that congress had perhaps too hastily, but with en- tire unanimity" supported the president in maintaining the interests and honor of the country 'in the field of diplom- acy," but as to the latter congress had not approved and would not approve his recommendations as to the financial lOllCyf anu CSpCSloAlS to lt4C SS'A rency. ..
 The president had mistaken the cause of the present financial condition in at- tribtiting it to the demand for gold fol United States notes instead of to the deficiency of revenue caused by the legislation 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 interest bearing debt nearly $500 900 00O'
 The president had proposed a line of policy that would produce sharp con- traction of currency, add greatly to the burden of existing debts, and arrest the progress of almost every American industry that competed with foreign productions.
 I'm these views the president was supported by the secretary of the treas ury It was with dffidence that he (Mr Sherman) undertook to controveri 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 public policy was to give the government ample means to meet current expenses, and ito pay each year a portion of the public debt.
 The gold reserve could then be easily maintained without cost, except the loss of interest on gold in the treasury, but with a saving of interest on United States notes and treasury notes of five times the interest lost by the gold held in reserve. But a vastly greater bene. fit than the saving of interest was se- cured to the people by a national paper currency, at par with coin, supported by the credit of the United States, and redeemed on demand in coin at the treasury in the principal city in the United States.
 The only difficulty in the way of an easy maintenance of United States notes at par with coin was the fact that during the present administra tion the revenues of the government had not been sufficient to meet the expen- ditures. If congress had provided nee essary revenue, or if the president and the secretary of the treasury had re- fused to expend appropriations not man. datory in form, but permissive, so as to confine expenditures within receipts they would have had no difficulty with the reserve.
 This would have been a stalwart