The record-union., 1896-01-04


five hours to-day the Senate was in the
turmoil of financial discussion. 1t was
opened by an hours speech from Sher-
man (Rep) of Ohio, a leading member
of the Finance Committee, in support Of
his resolution to set apart the reserve
fund of 500. 100000 gold, when in the
treasury, and segregate it from the or
binary current receipts. He argued that
there was no other cause for the fnan-
cial difficulties of the Government
than the unwise tariff legislation OF
Congress, which had reduced receipts
below expenditures, had impaired con-
fdence and had compelled the Govern
ment to sell bonds in order to meet de-
fciencies; and that there was no other
remedy except to borrow money on the
best terms possible (to pay current de-
fciencies) and to provide sufficient rev.
enue. To that extent and for those pur-
poses he was willing to support
Cleveland's administration, however
much he disagreed with its general pol
icy.
No action was taken on the resolu-
ton, which lies on the President s
table, to be taken up for further discus
sion. As soon as it was laid aside, the
Ell1ins (Rep.) of West Virginia, declar-
ing it to be the sense of the Senate
that the United States bonds should not
be sold under private contract and
without advertisement, was taken up
and discussed with much spirit until
the time of adjournment. a motion to
refer it to the Finance Committee was
defeated by the immense majority of 4e
To-,
carried by majority Of only one.
The Senate, at $50, adjourned till
Tuesday next. leaving the Elkins reso-
luton on the unfinished business calen-
dar
The resolution offered by Sherman
(Rep) of Ohio last Tuesday in relation
to the reserve fund was laid before the
Senate, and Sherman proceeded to ad-
dress the Senate, prefacing his speech
with a remark that, contrary to his Gus
tom, he had reduced his speech to writ
ing, On account of the Importance of the
subject and for the sake of clearness
and brevity, and would proceed to read
it.
Mr.. Sherman opened by reference
to the two recent messages of the
President of the United States in rela-
condition of the national finances. AS
to the former, he remarked that Con-
gress had perhaps too hastily, but with
entire unanimity," supported the Presi-
dent in maintaining the interests and
honor of the country ''in the field OF
diplomacy" but as to the latter Con-
gress had not approved and would not
approve his recommendations as to
the financial policy, and especially as
to the currency The President had
mistaken the cause of the present
financial condition in attributing it to
the demand for gold for 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 pro-
posed as a remedy the conversion of
United States notes and treasury notes
into interest bearing bonds, thus in
creasing the interest bearing debt
nearly $500, 100000"
The President had proposed line Of
policy that would produce sharp con-
traction of currency, add greatly to the
burden of the existing debts, and arrest
the progress of almost every American
industry that competed with foreign
productions. In these views the Presi-
dent was supported by the Secretary
of the Treasury. It was with diff
dence that he CNdr. Sherman) undertook
to controvert 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 pol
icy was to supply the Government with
ample means to meet current expenses
and to 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
III reserve.
But a vastly greater benefit than the
saving of interest was secured 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 cities in the United States.
The only difficulty in the way of an
easy maintenance of the United States
notes at par with coin was the fact
that during the Administration the
revenues of the Government had not
been sufficient to meet the expendi-
lures. If Congress had provided neces-
sary revenue. or if the President and
the Secretary of the Treasury had re-
fused to expend appropriations not
mandatory in form, but permissive,
so as to conine expenditures with re-
ceipts they would have had no diff
Guilty with the reserve.
This would have been" said the
Senator, "a stalwart act in harmony
with the Presidents character, and
plainly within his power The President
knew as well as anyone that from the
close Of the civil war to the date of his
inauguration the Government expendi-
lures had been less than the receipts
In this connection Sherman pro-
duced a table showing that every year
during that long period there had been
a surplus of revenue. which had been
applied to the reduction of the interest
bearing debt
1.-The President Sherman continued
has complained in his recent annual
message that the Tariff Act Of 1890 (the
Mckinley Act) was insufficient for the
purposes of revenue. That Act had not
reduced revenues below expenses. but.
on the contrary. had provided a sur
plus. If the tariff bill that first passed