The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-01-22
SHERMAN'S SPEECH.

said:
He proposes as remedy the CONVEX
sion Of the United States notes and treas
ury. notes into interest bearing bonds.
thus increasing the interest bearing debt
nearly s5oo,oOO,O00. He proposes line Of
public policy that will produce sharp
contraction Of our currency. adding great
ly to the burden of existing debts and ar
rest the progress Of almost every Amer
lean industry which now completes with
foreign production.
Such talk Of the proposition of the presi-
dent, if it had come from Allen, Butler,
Kyle, PETER, Jones or Stewart would have
been called luny. AS it comes from Sher-
man, 1t is called "a great speech" The
policy of Cleveland and Sherman has
been SO much alike on finance up to date.
that We should like to find the cause for a
scism now. Some people, like myself,
remember how hard he worked to get
congress in the expiring hands of Harri-
sons administration to pass a $500 600 900
loan bill for the very purpose Of retiring
these same greenbacks which for Cleve-
land to destroy, he says will greatly add
to the burden Of existing debts"
Now. if th0re is Republican leader of
The Representative, who like me voted for
Harrison in 1888, ask him to carefully
Sherman condemns himself. If cOntrac-
ton to come will add greatly to existing
debts then has not contraction in the
past added greatly to existing debts?''
If Mr.. Sherman's logic is true as to future
contraction, then Mr. Sherman's logic. and
the Populist logic is true as to past con-
traction, for which We are more indebted
to him than to any other man. BY using
this argument against the president, does
he not only endorse Populism. but con-
cede that Populists have the very strong
est and best argument against Cleveland's
financial polcy-else, why does he steal
their thunder Two and two make four;
and If the above is not as plain as that,
would like to have same Republican show
why. There is great force in what he says
of the deficiency in the revenue, and the
votes OF condemnation heaped on the pres
ident and his policy show that the people
know it. 1t does not take as bright man
as John Sherman to know if dsburse-
ments exceed receipts, it will empty itself
in time, just as a cistern with more leaks
than inflow.
The most singular part Of this great
speech is the remedy proposed to cure
the defects in the existing law pointed ous
by the president.
First-That the notes presented for re-
demption must be reissued. It seems from
the newspapers that he has found the
power to hold notes, redeemed until they
can be exchanged for coin, discovery
that he should have made sooner.
Second-That the resumption fund is a
part Of the general balance in the treasury
and may be applied to current expendi-
lures.
Now, after arguing that if the treasury
had not been depleted to nearly 5000, 900 900
below receipts the first defect would have
never been discovered, and that if revenue
is restored above expenses, it will dis
appear, he comes forward with this
strange device:
Notes once redeemed. should be issued for
gold coin, and such reissue should be man.
datory when coin is deposited in the treas
ury. With that provision of law the scare
ity of currency would create such a de-
mand for it that gold will be freely depos-
tied in exchange for the more portable
and convenient notes of the United States
The resumption fund should be segregated
from all other moneys of the United States
and paid out only in redemption of United
States notes.
There is neither logis nor common sense
in his remedy.
First-Bring in greenback to the treas
ury and the comptroller Of the currency
will give you back not gold, but gold coin
note
If this is not as silly as two boys swap
ping jack knives precisely alike in every
particular, then nothing can be. Why the
greenback and every other sort of cur
rency has been treated precisely as if a
gold coin note, and his whole remedy con-
Sists in exchanging one piece Of paper for
another of precisely equal financial par
ity." having only different financial ma
ture.
Second-The scarcity Of currency caused
thereby would compel the deposit of gold
to get the coin notes.
Mr.. Cleveland instead of calling such a
proceeding a scarcity of currency" calls
it by it's honest name contraction"
Sherman has the notes held in the treas
ury until gold was paid in then to reissue
on 1t like amount Of gold coin notes.
Cleveland would do just what John Sher-
man tried to have congress do in $685. is
paper currency. Both alike destroy the
greenback, and both alike contract the
currency, and the only advantage Sherman
has over the president is the doubtful one
Of ST.. 900 or $4,000, 900 of annual inter-
est, for the compelled scarcity Of cur
rency'' would be far more severely felt
than that where money was simply Dor
rowed and paid into the treasury,
The second deficit is one that is not gen.
orally noticed, yet it is frank admission
that in fact we have in law no 500 900, 900
resumption fund" Both Cleveland and
general balance in the treasury and may
be applied to current expenditures" which
is to say, There is no such fund estab-
lished by law, and no authority in law for
IL. anu nenCe every DOnO tnat has been is
sued by Carlisle, 1852 .345 800 is also not
without authority in law. This fund.-"
Sherman says, Should be segregated from
all other moneys and paid out only in re-
demption." How can this segregation be
effected except 1t is done by act Of con-
gress. Thus Cleveland Sherman both con-
fess to breaking the law for the benefit Of
the gold bugs.
One other proposition as safeguard.
Sherman mentions and that is to compel
banks to hold their reserves in currency
instead Of gold as he claims they are now
doing. This would be a small item, only
ton.
Now it is little singular that Mr.. Sher-
man nor the president did not touch on the
present safeguards to protect the treasury
FirSt-There IS the option of the treas
urer to pay out silver dollars in lieu of gold
If he chooses. Why has not this safeguard
been applied to protect he fabulous gold
reserve? Gold go to a premium? What
has that to do with the law?
Break the parity?
Who breaks the parity? Not the treas
urer. Some timid individual is frightened
into parting with his money for less than
it's face, that is all. He can burn it or give
it away, If he choose, the treasury would
still keep on at the old stand, and the gold
bugs hunt up some other storehouse Now
they store it at Uncle Sans expense. get
$11 900 profit on a So 500 600 bond deal
and per cent interest for 80 years. This
parity is big thing to maintain for gold
owners. Strange Sherman never men,
toned this.
Second-Why does not Carlisle apply the
old war law compelling the customs rev.
enue to be paid in coin? This is easily en-
forced and Is the law. In 1873, when Sher-