Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1898-01-07
THE ..ENDLEsS CHAIN. : -

StO0AS& SADS x&C0OA1y$J0x O1kOA ~ 190OWV
Retiring the Greenbacks.
The endless chain can be broken in
either one Of two ways without retiring
the greenbacks, and John Sherman
pointed out both Of these ways on the
10th of March, 1873, to the committee
on finance in the United States senate,
says the Cincinnati Enquirer. His in
terview was printed at the time at the
government printing Office. Following
are extracts from it, which we give
for President McKinley's information
and instruction. It will be remem-
bered that on the following january
the resumption act would take effect.
There was q proposition before con
gress to repeal the resumption act be-
fore it should take effect. It was upon
that subject that the committee had
Secretary Sherman before it. Senator
Jones asked him whether he favored
taking away the legal tender quality
from the greenbaeks on the LIST OF the
following January, when resumption
should begin. Mr.. Sherman answered
in the negative and said:- II am in
favor of maintaining the legal tender
currency" And now for Mr.. Sher-
mans two remedies for the endless
chain. He said:
AS matter of course there is some risk
in resun1ing, and we have got to take that
risk. If we take it on the first Of January
we have got to strengthen ourselves as
much as possible, but the risk is greatly ex-
aggerated. Some future congress will have
to provide for exigencies that may arise
from financial panics or adverse trade by
authorizing a temporary suspension Of spe-
Gle payment or a temporary issue Of notes
as it Is done by the Bank Of England.
We should have little doubt about
the wisdom OF these utterances but for
the fact that we know from the great
New York papers that John Sherman
was at that very time the greatest
fnancier on the face of the earth, or
that ever existed in all the tide of time
II he thinks "a temporary suspension
of specie payment" a good expedient
for stopping the working of the end
less chain, who shall gainsay him? His
second remedy was brought out by a
question from Senator Bayard. OBJ
serves
Senator Bayard-You speak Of resumption
on q timetable basis being easier. Do you
make that proposition irrespective of the
relative value of the two metals as we have
declared them?
Secretary Shernan-I think so. Our mere
right to pay in silver would deter a great
many people from presenting notes for re-
demption who would readily do so if they
could get the lighter and more portable coin
in exchange. Besides, gold coin can be ex-
ported, while silver coin could not be ex-
ported, because it's market value is less
than It's coin value.
Mr.. Sherman was then the head of the
treasury department.. He was in the
prime Of his life. he had already been
the greatest fnancier on earth ever
since his demonstration of silver in
1873. Carefully read and reread the
words we have quoted from him. "Our
mere right to pay In silver" would, he
said, prevent people from seeking, re-
demption Of their notes. He said they
would be very glad to get the lighter
and more portable gold coin, because
they could export it, while silver could
not be- exported; but We would check
redemption by giving them silver. How
clear and how simple this remedy for
the endless chain. The Enquirer has
been advocating it ever since john
Sherman proposed it. His proposal OF
1t was no youthful indiscretion. Does
anybody deny that he was then the
ablest fnancier in the land?
The best thing the president can do
is to keep his fingers carefully away
from the buzz saw Of the greenbacks.
Let him recommend bill to carry out
sherman's idea above quoted. It could
read something like this:
Be it enacted, etc.. That "our mere right
to pay in silver" shall be exercised when
ever notes amounting to more than 800
secretary Of the treasury is hereby forbid
den to redeem such notes In 'athe lighter
and more portable gold coin. because the
same can be exported and Is only wanted
tor that purpose.
There is no "nepudiaion" in that,
and NO ANARCHY It is Sound
money" doctrine from the great
Sound money" apostle, John Sherman.
There is another bit of wisdom which
Secretary Sherman gave the finance
committee on the occasion referred to.
He told them Of the favorable effect Of
the act restoring silver coinage, which
congress had passed about two months
before. He said: - 49,
In the first place, the. silver bill satisfied
= strong public demand for bimetallic
money, and that demand is no doubt large
~ sectional. No doubt there is difference
of opinion between the west and south ana
the east on this subject, but the desire for
the reconciliation Of silver was almost
In q government like ours, It IL
always good to obey the popular current,
and that has been done. / think. by the pas
sage Of the silver bill. 81
Remember that, President Mckinley.
Always ':obey the popular current;
and You know there is no popular cur
rent in favor OF retiring the green
3j !, b t 81 4 81 rs
Of greenbaclks. He said: s-= SIS;
Resumption can DO maintained more
easily upon Q double standard than upon .
single standard. The bulky character pf
silver would prevent payments In It, Wh1lA
gold, being more portable, would b more
freely demanded, and / think resumption
can be maintained with . less amount Of
lilver than Of gold alone. s .3 z
Til. = tessT. The bulky character %