The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1882-01-14
SILVER CERTIFICATES.

SILVER CERTIFICATES.
We have been Watching the proceedings OF
B congress with some curiosity, not to say ankle
ty, since the commencement of the present
5 session, to ascertain wha, is likely 10 become
J of the recommendation at Secretary Folger
D endorsed by President Arthur, 10 stopthe coin
aye OF silver retire the silver certificates, and
! take its legal tender quality from The green
D back Thus far, however, the dominant party
/, in congress seems 10 have been very gngerly
) in touching the subject. The opposite side
the democrats and greenbackers-It Is true,
+, have been bold and aggressive enough in De
nounclug the scheme bnt have been unable TO
elicit "A response from the other side, or any
lntima'ion of what they propose to do. The
friends Of silver, silver certificates and the
greenback however, would be unwlse to take
II for granted from this sience that the recon,
menda, on of The President and his Secretary
on this important subject wall be quietly pass
ed over and allowed to die and sink out of
mind. Too many powerful Interests have it at
the ola question OF a single metallic basis--a
gold standard-not only for this country but
the greater part of the commercial world, and
that involves a reduction of the real money,
both of this country and the world, to the ex.
tent Of from % to 40 per cent and the en-
hancenent, to the same extent Of the value of
every government bond in the world, every
state bond, city and county bond, railroad or
other bond, and every real estate mortgage. In
short, adopt the Recommendation of Secretary
Folger and the President, and the debt of every
man so unfortunate as to be in debt will be in.
stantly nearly doubled, and the value of the
claim of every man so fortunate as TO be Il
creditor enhanced to the same extent.
| But aside from overwhelming considerations
like these, the business situation of the coun
try just now is such that il seems to man of
sense that nothing short of criminal reckless
ness if not stark madness, could have prompt
ed such a recommendation. The country is in
the midst of what is called season of the
highest prosperity. Money is plenty, credit
unlimited, speculation at Its height, railroads
and other gigantic enterprises are beng driven
at rate never before approached, manufactur-
ers are flourshlng and rapidly increasing their
means Of production, wages are good, food
comparatively cheap, and on all sides good
cheer, peace and plenty. To what do we owe
this happy state of things? 1t is the rebound
from the hard tines CT 1873 to 1877, and was
brought about bv the purely accidental condl-
ton for three or four years of foreign trade,
a succession of short crops IN Europe and of
good crops in this country leading to enor
nous Importations of gold and the filling of
tutlons to such an extent that they freely ex-
tended their loans and thus brought about the
present rush of business and high barometer
of national prosperity.
But can this state of things last. Five years
ago the total monetary circulation of the coun.
try-gold, silver, greenbacks and national
bank bills-was less than a thousand millions
During the last four years the exports of this
country largely exceeded the imports--in 1878
about $50,0OO0O0 IN 1879 about SlOO,0O0,O0O
in 1880 $l63000,000; and IN 1881 $780, 00, 900
Europe could pay for this excess only, first, by
returning our bonds and secondly. by sending
US gold. AS most ut our bonds are a better
investment over there than European bonds
result 10 an importation of gold in the last
four years OF over S200,000,000, adding which
to our stock on hand and home production,
gives this country to-day, according to the esti
mate of Comptroller Knox, $5OO,OOO,OOO
But the time has come when this lmporta-
ton of gold must cease, The condition of the
last four or five years is reversed America
now has short crops while in Europe the crops
are good. Reliable estimates show that the
wheat crop OF this country for 1881 is 35 per
cent, short of the crop of 1880, and the corn
crop 40 per cent. short, with oats, rye, barley,
&c, III the same proportion, while we are &C.
tually importing potatoes and cabbagcs from
Ireland and the Netherlands Not only has
this country no surplus OF wheat corn, pork
and beef this year to send, but the price
abroad is SO low that 1t wouldn't pay to export
if we had it. The wheat crop of Russia, Hun.
gary, and even Egypt and India was so heavy
In 1881 that they could drive America out of
the European markets even at large reduc.
ton from present prices.
So the importation of foreign gold must not
only STOP but year at most will see the cur.
rent turned IN the other direction. Then will
come the squeeze. The loan market will be
close. Great enterprises that depend on free
discounts to be kept IN motion will be check.
ed money will grow scarcer and dearer, the
Secretary of the treasury Will be implored to
buy bonds to ease the market, and so forth and
so on. And 1t IS at time like this that the
Secretary of the treasury comes with his re.
commentator to expel from our circulation
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