The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-06-06
METHODS OF RAISING MONEY
A STRONG PRESENTATION OF THE
PERILS OF PAPER MONEY,
And COgent Reasons why Congress
Should SteadfastIy Avoid Anything
Like Debased Currency.


The pending bill originates in the necessi-
ties incident TO the existing war with
Spain. 1t is framed to meet an eX1gehcy
which, 1t is hoped, Will be out temporary.
1t is not my purpose to discuss the details
or revenue features of the bill. That has
been done by the members of the finance
committee, whose familiarity thereWlth en-
ables them to speak with special force IL
is my desire to present few general ob-
servations. briefiyeaS may be posslDle. upon
thcae provisions which are presented Tor re-
inforcing the treasury, otherwise than from
the imposition of excise duties. Ihere
should he, sir. in the consideration OF TINS
great measure no partisanshlp. 1et IL
seems to me that while there are many on
both sides of this chamber who share in
this view, there is a minority VINO 90 not
If there is an occasional diScordant note.
however it but emphasizes the prevailing
harmony among the majority Inc FreSi-
dent has assembled an army with incredl-
fective as ever responded to the call to
arms. But a few days ago 1t was IN the
schooroom the counting house, the fac
tory. the mine and the field To-day 1t is
nearly 1000 strong organized, uniformed
and ready to try conclusions with the Span
ish forces upon the field: it-is, nonpartsan;
for there is no politics beneath the Federal
uniform. Sir, while the honorable senators
in opposition disavow any partisan purpose
some have paused at this critical Juncture
to attack the Dingley law and challenge the
good faith of it's authors. | feel that It is
a prodgal waste of time to even brleny
reply to the imputatfons cast upon the law
fed. The law will stand the .sharpest com
parison with the Wilson act. In antlclpa-
ton of the passage of the latter; importa-
lions were deferred until it should become
a law, in order that the importers might
enjoy the reduced rates which 1T estab-
lished. This increased the receipts curing
the early months of the law. During the
latter months, when it was In force, I'M
portations were increased SO as TO AVOID the
higher duties which the Dingley law I'M
posed Ships from all quarters of the globe
were impressed into the service OF the I'M
porters prior to the enactment OF the Ding
ley bill; and when it became law our
warehouses were filled to the utmost with
wool. sugar. tobacco. fabrics, etc, ana the
treasury thereby lost millions or dolldTs:
Do the assailantss OF the law take note Oh
During the first nine months of the opera
ton of the Wilson law the receipts from
customs were $119!S44 1893, and during the
corresponding period under. the Dingley law
$1O5. 0S9, 1898. More significant than this con-
trast is the fact that for the nine mon tIl
prior to the passage of the Dingley law the
receipts from customs were $l46,2 1850
while the total for the nine months HOLLOW
OS9 $50. %. Those who are best qualified to
estimate the loss to the Dingley law by an
ticipatory importations place 1t at iso quite re
$40 900 900. l subjoin brief comparison OF
the receipts and expenditures under the
Wilson and Dinglsyy acts for the hrst nine
months of each. 1t will be observed that
the receipts under the Dfngley act We're
s26, 1853 991 in excess of those under the Will
son law; and it also appears that the dencl5
under the Wilson act was $5L 4l5,0Sl, anu
in the expenditures under the Dingley law
are large extraordinary amounts Tor coaSt
defenses authorized BY the flItyt L run
tional defense from the s50.00O.O0O appropria-
ton. Consider in connection with TINS Iact
the $4O,OC0CoO of loss by anticpatory hiip o,,
position are not justified in their cTluclsm
of the law. That it will produce adequate
revenue to meet al requirements gu rem res sonabe
ground to doubt. ] append statement OF
the receipts from customs during the nTst
nine months following the enactment or the
Wilson bill, and for corresponding period
both prior and subsequent to the enact
ment of the Dingley law, which SHOWS win
striking force the serious loss 10 the re-
CENTS under the latter because of anticl-
patory importationss, and which justiheS II
seems to me, the statement tnaI our i0S'
was fully &0,00OOOO.
METHODS OF RAISING MONEY.
It has been urged in opposition that the
provisions of the pending bill authorizing
the secretary Of the treasury to issue certifi-
Gates of Indebtedness is for the purpose Of
concealing deficiencies of the Dingley law
A fair analysis of the operations of the act
as we have observed will leave no reason
able doubt that under normal conditions 1t
would meet every fiscal requirement Do
the opposition perceive no difference be-
tween the issuing of bonds in time of peace
tn meet deficiencies and the issuing of GER
tificates of Indebtedness ana .DonuS III lllle
of war? Sir, the most casual observer Ilusl
have perceived the rapld inproVeIen1 1i
commercial interest of the country Wnlcn
followed the enactment OF the DlnSlSy lam >
an Improvement which has steaQlly IN
creased in volume notwithstanding the do-
verse influence of actual war. why 90 the
honorable senator's pause IN the race VI Ille
enemy and indulge in criticism OF our
economic policy 10 ulSeae 80 naptV division?
Sir in the present emergency there shoulu
be but one party, inspired by one PuIPose,
exalted by one object. 1t Is CONCEDED tnat
tho revenues to he derived from the Dlngley
law the excuses imposed by the pehulhS
measure and the postal service VIII oe ~, III
sufficient to meet the eXtraorulhdIy loqullc
Ynents of the coming fiscal year. IL Is neceS-
sary therefore, to increase the leNlee coll-
templated and raise the addltlondI money
necessary in some other manner. 90 not
helieve if wise to undertake to cast the en-
tire burden of the war on the present vi
coming fiscal year. The Wpoles0me Po!Icy
NAV as YOU go" has it's reasonabie llnlta-
lions 1t is good sound peace pollcy as
rule but should not be adopted ~ q tilne
of expensive, burdensome war. Sucn , nos
never been the policy of the country curing
any of the wars in which we nave enSdSeu'
and there is no good reason Tor any uePdlt-
ure from our uniform pracllce All ma Pe'n
ticuIar now We should pear d Idlr SNARE
of the burden of the cost OF the war curing
its progress. and to that END increase tne
tax levies and defer d reasoilapie pro oPooa
We should not oVertaX the energies ana re-
sources of the people so as 10 uhduly pur-
den and embarrdsS them In thelr enter
nrises In my opinion we snoulo pursue no
narsimonious policy in making PROVISIONS
for the necessities OF war. AL Inc pest lIley
are great. We should place at 't ne eat iI
of the President sum adequate 10 Ileet al, an
known reouirements and any reaSonaDie
nnss;hia CONTINGENCIES There Is nothing so
essential in the prosecution of war as an
abundant treasury. The war chest shouId
he we'll filled. 1t mas reassurlhe eHeSI al
home and a wholesome influence doioau'
There are two widely divergent methods
proposed for providing the money required
in excess of II at yielded by lmposts, eX-
cises and the postal service. One method
is utterly unsound and vicious and not to be
tolerated under any conceivable clrcum-
stances. 1t is the plan proposed by the OPP
position, and involves the emission of $780,
00e,0N0 of irredeenlable paper money and the
coinage or issuing of silver certificates
against $42 600 of so-called seignorage
in the treasury. 1t is deliberate attempt,
X seems to me, TO initiate the currency and
imperil the present gold standard
The greenbacks. when authorized in 1867,
rounded our statesmen and the grave and
overwhelming exigency with which they
were confronted. Then several States had
adopted ordinances OF secession and were
attempting to leave the Union; the future
was filled with doubt and uncertainty; what
Omnipotence knew; specie payments were
suspen ded; the treasury was empty and the
government had no credit whereby II. might
readily supply it. we were without
currency. Now the country is united
and bound together by indissoluble
bonds; credit has no apparent limit;
we have ample currency. as much