The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1885-11-18

wBEELING, W. VA NovEmHEs1s,! 1885


deprecated to 81 cents, 10 TO be the mea'
sure OF values, including wager, in the
United States.
The Government has not dared for
months to issue call for bonds. Why
not? Why not pay of our bonds as here
tofore, and stop interestout OF our surplus
gold. Because, aside from the demand
gold in the Treasury, represented by out
standing certificates, We have only about
enough left to pay the coming January
interest and assure beyond doubt such in;
forest as will fall due thereafter.
This is a tickiish position-so tickEish
that tho Secretary OF the Treasury does
not dare call in a single bond for fear
OF a possible pau!c in the money market.
How could pauie come with 80 much
silver in the Treasury2 EIsily enough.
The siivef dollar Is Il bogus dollar. It
do,s no. rn2rrpent 100 GEMS on the dollar.
Outside OF the United States it passes only
at It's bullion vAIue~-ej2hiy cent?. The
man who would e1chan Sc SlO) in gold for
500 in American silver, and take that Sill
YER to Europe, could buy Gully $50 worth
of goods. This Is what would happen to
any traveller or auy enligrdnt going to
Europe to-day.
Why do W. continue t. cola such silver
dollars? Because ~ We ;Gvs great lot Of
financial cranks anl inn4.irs in this coun-
try who believe dJliar il 3 mere matter
OF legislation creature ot creative
power-irrespectivs Of Inherent value.
And, further, because they believe that it
is the volume Of money in circulation, ire
spectiye OF value, that creates good times.
And (2) because We have large silver
mining interests in the United States,
where there Is vast investment Of CAPT.
tai, and large labor interest, direct and
indirect, employed.
All these influences have combined to
force upon the country coinage that will
not circulate except to limited extent.
Three.fourths Of it are piled up in the
vaults OF the Government, and the cry Of
the Government is for more vaults in
which to store the monthly product OF the
mints
The Government is calling in and re.
firing small bills in order to forcs this
silver out OF the vaults into circulation,
and the people are protesting against the
change. They don't want silver and they
do want the small bills.
In view Of this situation to-day 1t is not
too much to say that II the Government
should suddenly lose, by export demand
or otherwise, s25,OOO.0OO Of gold at this
time, We would be on silver basis OF
trade among ourselves and with the
world at large.
What would this mean? 1t would
mean (l) violent contraction. II gold
goes to fraction Of one percent premium
the whole volume oft will be at once
in day-retired from circulation. The
experience OF the early days Of the war
would at once repea! itself. Neither
people nor banks will pay out money that
bears premium, at par. The par would
be our bogus silver dollars. As gold rose
premium SO would gold divedeeper into
hidden recesses and be moro oiTectually
retired. The whole amount If gold in
the United States is between COO and 700
millions. Take this amount OF coin out
OF the whole volume Of circulation and
put 1t away as commodity, and the re-
suit is great and violent contraction, re.
sultinG as matter OF course in innumer-
able bankruptcies, great stagnation in
trade and shrinkage in prices.
Then what2 Then would come silver
basis-a bogus dollar circulatiOn-and a
paper currency redeemabie in these bogus
dollars. Then would arise the cry, rs it
did in the days OF our irredeemable green
backs, for moro money and less misery"
More Of these dollars would be demanded
to ill the vacancy created by the retire.
ment Of gold. The more Of them we COIN
ed the higher the premium on gold, and
the more assured a permanent silver basis.
A permanent silver basis would mean, as
in the case OF the Sreenbacks, a tluctuating
scale oivalueS. Foreign products, such as
coffee and tea, would again be quoted in
gold. Goods lin silver would rise quickly,
and wages, the last thing to rise) would be
Bhorn Of their purchasing power to that
extent.
OF necessity the Government, along
with the people, would DO brought to a
silver basis, and would pay the interest on
the public debt in silver, or else DO obliged
to buy gold in the market to keep faith
with its creditors, Silver would alone be
paid for custom duties. It Is largely so
paid to-day, which is the cause OF the
Governments approximations OF the future,
and the reason why It is afraid to issue
bond call.
The final result Of this stGte Of things
would be that we should again become a
dumping ground for European goods. A
debased circulation always beSetG the con.
ditions favorable to heavy importations-
viz, good market to sell in but poor
market to buy in. To this condition Of
things we are now tending. This Is the
sort OF financial legislation We have had
under the goad OF agitation forced upon
this country, mainly by Democratic lead
ers, in the last few years. President Cleve.
land and his Secretary OF the Treasury see
the dangers Of the situation and have
warned their party followers Of II, but at
the last session Of Congress they were
rudoly rebuGsd, and 1t is not unlikely that
the same thing will happen again.