The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1896-01-09
JOHN SHERMAN.
The Ohio Statesman Addresses The
Senate on Finances.
Congress Gould Not Approve the Presi-
dents Recommendations AS to the FL
nanciai Policy, Especially the Cur
rency-Congress Acting Hastily.

reference to the two recent messages OF the
president of the United States in relation to
the Monroe doctrine and to the condition of
the national finances. As to the former he
remarked that congress had perhaps too
hastily, but with entire unanimity," supported
the president in maintaining the interests and
honor Of the country in the field of diplomacy"
but as to the latter congress 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 legis-
lation of the last congress. thus placing the
effect before the cause. And he had proposed
as remedy the conversion of United States
notes and treasury notes into interest t-bearing
bonds, thus increasing the interest-bearing
debt nearly i5C0,000U00' The president had
proposed line Of policy that would produce
sharp contraction of currency, and
greatly to the burden of existing debts
and arrest the progress of almost
every American industry that competed with
foreign product In these views the pres
ident was supported by the secretary Of the
treasury 1t with dffidence that he (Mr
Sherman) undertook to coutrovert their opin-
ions, but his convictions were strong that
they were in error that he hoped to convince
the senate by the facts which he would sub
nit that the true line OF public policy was to
supply the government with ample
means to meet current expenses,
and to pay each year 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 saving of interest on United States
notes and treasury notes of five times the in
terest lost by the gold held in reserve. But
vastly greater benefit than the saving of inter-
est was secured to the people by national pa
per currency at par with coin, supported by
fhap ra1i tnft ha1 init Stuta nd oI
on demand in coin Mt the treasury in the prin-
cipal cities 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 admin
istration the revenues of the government had
not been sufficient to meet the expenses. If
congress had provided necessary revenue or
II the president and the secretary of the treas
ury had refused to expend appropriations not
mandatory in form, but permissive, 50 as to
conine expenditures within receipts, they
would have had no difficulty with the re-
serve.
This would have been a stalwart act in har-
mony with the presidents character and
plainly within his power The president knew
we'll as any one that from the close of the
civil war to the date of his inauguration the
government expenditures had been less than
the receipts. In this connection Mr.. Sherman
produced o table showing that every year dur
ing that long period there had been q surplus
Of revenue. which had been applied to the re-
duction Of interest bearing debt
Prior to the present administration, he said,
the aggregate reduction of debt was greater
than the law required.
The president, Mr.. Sherman continued, had
complained in his recent annual message that
the tariff act Of 1890 (the Mckinley act) was
insufficient for the purpose Of revenue. That
act, Mr. Sherman asserted, had not reduced
revenues below expenses but on the contrary
had provided q surplus. If the tariff bill that
first passed the house of representatives
the Wilson bilD, and that net the hearty
approval of the president had become a law,
the deficiency in revenue wCuld have been
much greater than it now Isl but conservative
democratic senators, with the aid of republic
an senators had greatly imps soved the house
bill, adding other duties "a changing its
scope. The president refus a to sign the act
and yet now he supported ityswhen deficiencies
were greatly increased. when the public debt
was increasing and when doubts were ex-
pressed as to the ability OF the government
to maintain its notes at par with coin
After a discussion, in much detail of the ef-
fects of the Mckinley act and of the existing
tariff law on imports, exports and revenues,
Mr. Sherman said that he could pursue no
further the analysis Of the two laws. He re-
garded the Mckinley law as infinitely better
than the Wilson law which was,
he declared the cause Of all the evils
now encountered. of adverse balance OF
mant ~ tho monatory srstarn In ayorv 20
s,eot IN ,hioh tha snhiSot ,,r,s.n,.d ;,ss,t =,
H. roind ha oonIS oo,pa =, no nthar oona,u'
e,on thar int the deacionny ~ raverne ona
.ha consaomsn, 'A encrnanhnosnt unon tha ano ra1
6emntion fund vas the cansa os tho nresan,
suan"iaI nn,di,;n, 'HH "a w. or,u o ,oains
we've aitbor n radino, rsanntion -, axnandi.
,mreS or m increase y, toxa,;nn and narhans
hoth
ua aid M, h.,;.r. bov.r.r .b,, . s,s,.,
s,on ~ r,'h,io ,vor,,s Nv ros,ro,anant -
measnres now in nrnsress ~ strena,hen ,ha
armv and novv NOS renm;roI Tha rresiaant
ottrihmtod an tho sn,nniaI d,asnm,,ias ~ 49,
Continued cirouIa,ion of Tnitsd Sta,ss and
treasnrv notes amounting 70 nearIw 600 -
0oo mn and hn,rno no ;n,erest ..1t is
inst ,o Mr. carlis,e 70 saw that he a,,rihu,eS
the witbdrawaIs of cold IN silver 1e,is,ation
tho, ,ba p,and s;,nar ac, wos IN foroo sror,
1879 ,o 800 wben tho accn,nmIotion ~ ao,a oo-
curred ana the great hodv ~ cold was with
drawn after the ac, Of J%,v "a ,soo was ra-
neaIed
Tn ,,isw % ,hoso oe,ci,, ,oo,s oon or,, ,.;,
man douh, as m rho cause 81 onr snarcinI con.
ditions what other camsa can ho stated N. n
that rn,rise ,eaislation rsdrco6 onr 80 20
serve he,ow onr exnanses i,nn,ired CON
sa pp; So M