Year: 1869




Western World.


Another speech from Senator Sherman %
81 the Finances.


Mr.. Sherman labors hard on the bill he re-
ported from the Senate Finance Committee
in relation to the public debt and currency.
He delivered another speech In the Senate
on Wednesday in favor Of tho measure, and,
taking Il. altogether, 1t Is the best most care
fully prepared and sblsst speech he has made
on the subject. The burden Of bis theme was,
as 1t has been heretofore, the necessity Of re-
turning to specie payments. The best srgu-
ment he makes here is that specie Is the cur
rency Of the world, and that the United States,
being great commercial country, with an
annual foreign export and import trade Of
eight hundred millions, cannot emancjplte
itself from the universal gold standard Of the
world, and he adds that the price Of all public
securities d fixed by the gold standard Of
LondoA and Frankfort. Plausible as this
srs6ment, or rather statement, seems, it is
unsuSpQFtsa BY fac facts: .asN Xs aasys done very
well, are doing very well and can 60 on very
well with circulating medium of our own,
independent of and different from that of the
nations Of Europe. The foreign commerce of
the country Is Insignificant compared with
the domestic trade; and with regard to the
latter no inconvenience Is felt, for that which
is the measure of value for one is the measure
Of value for ALL With our paper currency gold
becomes an article Of commerce with foreign
countries the same as cotton or any other
product.


Mr.. Sherman, like every fnancier of his
school, lays great stress on doing something
to bring our securities abroad up to par, and
urges resumption for this purpose. Why
should we be SO anxious for this2 A great
States in support of this idea; but increasing
the weight Of the debt thirty-three or more
per cent is not the way to improve our credit
or to make the people more desirous Of paying
the debt. Resumption of specie payments
and bringing our securities up to par with
gold would cause greater amount of bonds
to be taken abroad. But is that desirable
How long could we stand the enormous drain
of specie annually to pay the interest abroad2
Are the people Of this rich country to be made
the hewers of wood and slaves to foreign
capitalists t9F q! n tine e. e Gomez The ablest
statesmen Of the Old World act differently to
ours They endeavor to keep public debts at
home among their own people. But little Of
the debt of England is held abroad, and the
Emperor Napoleon, when he raised loans, was
careful to shape them in such way as to
make the French people the holders Of them.
European capitalists did not furnish us money
to carry on the most gigantic and expensive
war ever known. We raised all we wanted
among ourselves and upon the credit Of the
country at home. We shall never need foreign
loans, and are better without them. What
folly, then, to talk about the credit Of our gov
ernment abroad! It would be better II every
United States bond was held to-day by our
own citizens. There Is no necessity to force
specie payments for the benefit Of European
capitalists, especially when to do SO would
add to the weight Of the debt thirty three or
more per cent


The bill before the Senate seems to have
provisions against too sudden change, SO as to
avoid revulsion. The proposition to make
notes and ten-forty bonds convertible and recon-
vertible within certain limits appears to be made
with that object but any process for forcing
specie payments must end disastrously. The
only way to reach specie payments without
disaster is to do nothing and let the country
grow up to that. Mr.. Sherman states the total
amount Of currency In circulation, inclusive Of
legal tenders, national bank notes, fractional
currency and three per cent certificates, to be
seven hundred and forty-ive millions. But
deducting the eighty millions Of legal tenders
held by the banks rs q reserve and the ffty-Hve
millions Of three per cent certificates, the actual
circulation would be only little over six hun
dred millions. Now, we maintain that this
amount of currency will not be more than the
country will need few years hence. II IL be at
present The rapid increase Of population and
the vast growth of business will in short time
make this currency comparatively scarce, and
then we should grow up gradually and natu-
rally to specie payments. If the expenditures
OF the government be cut down and economy
practised, the interest Of the debt be reduced