The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-01-24
THE SILVER QUESTION
SYNOPSIS of Hon. I. DOnneily7s
Speech On the Silver Questlen,
~ in the Senate Chamber, Jan.
10Th. 1873.
From the Daily Globe.

ton for the remonetization of silver and repeal
of the resumption act-having arrived, Mr.
s-lnnelly proceeded to speak. He commenced
by discussion of the nature of money.
Baron Storch calls it, The marvellous in
strument to which indebted for our
wealth and civilization" Aristotle SAYS: 1T
exists not by nature but by law" The re-
markable and very able report Of the Senatorial
monetary commission of 1876, says: Money is
the very fibre of social organism, the vltallzlng
force of industry, the protoplasm of civiliza-
ton, and as essential to its existence as oxygen
is to animal life. Without money civilization
could not have had beginning; with dimin-
ishing supply it must languish, and, unless re-
Heyed, eventually perish.
Mr.. Donnelly proceeded to show that at the
Nate of the christian era the total amount OF
gold and silver in circulation in Europe was
81 800 900. 600. That this. by the expectation OF
coin to Asia to pay for articles of luxury. had
decreased to 5000, 5000 at the time OF the
discovery of America. That this reduction of
the volume of money was the true cause OF the
degradation and torpidity of the Middle Ages,
sn which 1.-The human mind made not single
step in advance for one thousand years. In
dustry only revived with the discovery of
America, when the mines of Peru and Mexico
spoured their treasures of gold and silver into
the lap of Europe. and the world entered upon
the magnificent development which we still en-
joy. He illustrated this By reference to the
thrinkage of the volume OF money caused by
the Spanish America REVOLUTIONS III 1oOJ, ana
the disasters that followed until the discovery
of gold in California again put life into
business From 1869 to 1S49 the purchasing
power of money increased l45 per cent,
property shrunk AS per cent. From 1S49
, to 1865 property rose ID per cent. and money
fell in the same ratio. Mr.. ID. then showed the
effect of falling and rising prices upon the
prosperity of people. When money is falling
and property rising labor Is employed, new en-
terprises undertaken, money changes hands
i rapidly and growth and prosperity are every
where When money rises and property falls,
capital is Withdrawn, the creditor contiscates
the debtor. enterprises diminish, bankruptcy
overthrows merchant and manufacturer and
labor is without employment or employed at
starvation wages. He illustrated this by sew
Il eral authorities.
The dilemma we are now in is that the pio,i,l-
/ ton Of gold aM SH,er is diminishing, Thie popu
tuition is iurfplsing. In Minnesota there
three births to one death and the same growth
is manifest to a greater or less extent all over
the world He showed that from 1850 to 1855
the average production of gold 5l45, $780,
600 annually. Twenty years later the average
was only 2l0l ,54l .00O-a shrinkage of
.p44 339, 900 annually. We in the
condition the people of Europe were in be-
l. tween the birth of Christ and the discovery
of America, and the results will be equally
disastrous. While gold is thus shrinking the
4 wealth of the United States has increased from
81, 135, 900, 900 in 1850, to 80 06s. 900, 900 in
Id187O. One-fourth of all the gold and silver
produced annually is absorbed IN the arts.
3 Moreover. there is steady flow of silver and
gold to China Japan India. etc, and it never
ssreturns. He gave figures showing that there
had geen produced since 1892, gold to the
value of IS, 532, 452 800; of this only II 600.
OOO, 600 could be found i'll Europe and America
To-day. The balance, about four billions, had
gone to the Orient the graveyard OF the pre-
cious metals. In 26 years from 1880 to 1876,
France EpptaNu q
81 1913, $40. 49, He quoted the following from
I the late NJ. Wolowskl, a distinguished French
savant who put the whole story in nutshell
when, ut the French monetary convention held
in 1869, he said
.'The sum total of the precious metals is
reckoned at fifty milliarsls. one-half gold and
one-half silver. If by stroke of the pen
they suppress of these metals in the mon
p etary service, they double the demand for the
other metal, to the rum Of all debtors.
Prof. Lavelaye, of the belgian Monetary
Commission. 1873 said
Debtors and among them the State, have
the right to pay in gold or silver, and this
right cannot be taken away without disturbing
the relations of debtors and creditors to the
prejudice of debtors, to the extent of perhaps
one-half, certainly of one-third. To increase
all debts At a blow Is measure violent. so
revolutionary that | cannot believe the gov
eminent will propose it,
These prophetic uttcrances have been veri-
fed. England, Germany. Belgium and the
United States are in the throes OF the most ter
rible financial commissions ever known IN the
world.
David Hume said in his Essay Money:
I'VE find that in every kingdom into which
money begins 10 flow in greater abundance
than formerly everything takes new face;
labor and industry gain life; the merchant be-
comes more enterprising. the manufactures
more diligent and skillful and even the farm
err follows the pillow with greater alacrlty and
attention.
The Report of the United States Monetary
Commission
''lf metallic money becomes insufficient "
the commercial, industrial and numerical pro-
gress of mankind must be arrested. and ii the
decrease of money shall he n continuing one,
and cover long perlod of time. it must end in
an absolute check In progress, and possibly
ia ne destruction If eriSting So'lal end piiticii
institutions. shrinking volume Of
currency and falling prices always have ten
dency to concentrate wealth. to enrich the few,
and to impovevish and degrade the many.
This Tendency il subtle. affifv as.i }prfgglsost,
throughout ths aNarld i0-dag."
MIR. Donnclly then proceeded to give the his
tory of the characterization of silver. There
were petitions for It; no discussion: the bill
was entitled an act to regulate the miuts," etc
1t read by its title alone. Ne but thu
conspirators knew what II meant. Even presi
dent Grant wrote letter October. 1919. sis
months after he had signed the bill. whicf
showed that he not aware that silver wa:
demonetiEed.
He then considered the faiiacy that GA
troubles are due to "over-productior. Over
production OF what OF food: No; there ar
millions 1T our coantryneu half fed q
clothes No; there are millions half clothed
He had always supposed that the more a eoun
try produced the richer Il was Thus Eng
lands boast. Was England less fortuna,.
than Spain that produced httle. ar Alaska tina
produced nothing The trouble MAS not over
production. bat under consumption. wher
times were good. frow lSsS IL lsT2 ,xe couie
mot produce enough for car own people bu
imported millions Of dollars of guSsts frog,
other countries. Give the people prosperity ans
plenty OF money, and the goods which now LOAD
down the merchants shelves would disappear
in fortnight, and every mill and factor,
would BE- caiGesi GA 20 do their utmost 10 sup
ply the ancessing demand. The trouble il W.
are in the midst Of falling price. consequent
upon the Increased purchasing power at money
consequent upon contraction of the volume 81
money. and hence there be prssperrt,
and no confidence. and this Is intensified b,
the Decentralization of silver which decrease
the volume of money onc-halt. and thcreh.
doubles its value and resincr~ cne-haif the vAlu'
Of all forms of human industry.