The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1896-01-09
SHERMAN'S CURE.

TT sHERMAN's CURE. IN
Ohio Senator Presents . Remedy for
Financial Ills. FIN
Washington, Jan. 4.-The resolution. !
offered by Senator Sherman (rep, o. y
in relation to the reserve fund was laid
before the senate and Senator .Sher-
man addressed the senate. IN.
Senator Sherman opened his speech by
reference to the two recent messages OF
the president o: the United States In rela-&
ton to the Monroe doctrine and to the
condition Of the national finances. AS -
the former, ne remarked that congreso nad
perhaps too hastily. but with entlIe
maintaining the interests and honor or
the country I'm the field Of diplomacy. IN
but as to the latter congress had not up.
proved ana would not approve his recon-
mendatlons as to the financial policy and
especially as to the currency. The pres
ident had mistaken the cause Of the pres
ent .financ.ol condition in a!tribut1ng It to-
the demand for gold for Unit States
notes instead OF to the deficiency Of rev
enue caused by the legislation OF the !ast
congress, thus placing the effect before A
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 $50 GOO" The.
president had proposed line OF policy
that would produce a sharp contraction 4
of currency. AID greatly to the burden or
existing debts. and arrest the progress OF
almost every American industry that ccm- \
peted with foreign productions. "
In these views the president was sup
ported by the secretary Of the treasury. /.
It was with sdifidence that he (senator:
Sherman) undertook to controvert their
opinions. but his convictions were so strong
that they we're In error that hs hoped to
convince the senate by the facts which
he would submit that the true line of pub !
lie policy was to supply the government
with ample means to meet current ex-
penses and to pay each year portion OF
the public debt. The only difficulty in the
way OF an easy maintenance OF United
States notes at par with coin was the fact
that during the administration the rev.
enues of the government had not been
sufficient tc meet the expenditures.
1T is humiliating to read in the news 4
papers Of the Gay that our government is
negotiating for money from associated
bankers and, like a distressed debtor In
view Of the bankruptcy, Is offered by
friendly power its accumulated gold to re-
lieye Us from our supposed financial dis.
tress. The true remedy Is to supply Ivy
taxation in some form additional revenue
and until this can be effected to borrow
from ,he people of the United States
enough money to cover past and future
deficiencies
Congress" Senator Sherman contin-
ued, NEGLECTED to cure the defects pointed
out by me as secretary of the treasury Ill
December, 1880. but hope will 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 tn. resumption fund
could not be invaded to meet deficiencies
in the revenue. They should be provided
for by bonds or certificates Of indebted /
ness, of such denominations at a low rate
of intel est which would be readily taken
by the people through national banks. sub
treasures and post offices. ii
Further on in his speech Senator Sherman
spoke Of the presidents complaint that
and paid agail. and again. making a con-
tinuous circuit. When, he asked. had
that circuit commenced? It had COM
menced when this administration (sup-
ported ~ the last congress-, had created q
deficiency. and it continued because the
deficiency continued. ~ g,#s
The free coinage OF silver he regarded
as the mos. dangerous policy of all. There}
was scarcely doubt but that In all prob
able conditions of trade or finance Except
Of United States notes and treasury notes
now in circulation could be maintained at
par with coin II 1t were supported by a
reserve of COLO or bullion. or silver bull
lion in cue proportions equal to one-tht1d
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
for the legislation of that congress-.
The democrats had turned over to the
Harrison administration in 1889 $780,
900, 900. How was it, he asked, if the
claim that the Mckinley act had pro-
duced sufficient revenue was true, that
in 1893. when the democrats again
assumed control, all that surplus was
gone. consumed and dissipated?