The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-03-02
second Part OF tho silver Mems Reply.


wAsTuNGrON, March lit is doubtless true,
too, that II the population and wealth IN
the country were az stand then the
ume would IN time expel gold from circulation,
but as long AS the population and wealth 90 on in
crsasing, the conditions OF the problem are
ratio between the money vol lme ana population
and wealth, an annual increase oil not less than
required. In other words, an increase OF
population and wealth calls for an addition
TO the circulation at least $4,000 900 year. II,
while these conditions continue. silver is coined
the rate OF only SIS 100000 year there Is left
still considerable vacuum % DC Tiled with gold.
This is the reason why gold has 90 increasel ln
the country steadily since the act OF 1875
passed, and why gold has increased by nearly
s 1000 0C0 during the last year. aud Is now IN
creasing at the rate OF nearly 81 ,O0OO COO month.
Notwithstanding the depression Of business IN the
county, aud as q matter Of iact there Is 70 day
foTe IN rs whole history. Another Tact IS tne
ss0Q00,o00 OF gold IA the treasury
mss pu. there IN exchange for silver.
certificates, and the immediate effect of stopping
tic coinage OF silver must nece SaTlly be 10 lover
the prices OF silver bullion, aud gradually 20 APP
preeiate the value OF gold the world over. Toe
tOnal Iati0 so much desired, or OF the readlust
ment OF the relative value 10 gold here wosid
things TO take place as are predicted IN the last
paragraph Oi your letter II Is difficult 10 see
Gold is 70 be Withdrawn 20 its boarding places.
followed By unprecedented contraction in the
actual volume Ol our currency. Sucn q contraction
It has cen shown must be followed
GOLD flow re as ne tide flows surely Il would
come as a. as ae ships could bring it. WHAT
then would those VINO have been boarding gold
depressed, would suffer still further depression by
scaling down the purchasing power over tue 50
fiiT Of toll. Here. ia one Sentence we have
gold boarded an unprecedented contraction, fall
OF prices and scaling down OF the purchasing
power OF the dollAr-that is, when these impend-
ing caamities come prices are TO fall, everything
become cheaper and money become less valuable
al The same time that is. both sides OF the bal
I'D as the other goes down; usually, as com.
modities become cheaper, money becomes rel
traction of the money volume results in
riie in the value OF money and
involved in this paragraph Of the letter are hardly
calculated TO carry conviction TO those who have
ever studied money questions at all. or TO awaken
calamities from such causes in one thing al
will agree and shst Is in the importance to the
whole country. and especially to the laboring
classes now struggling with the want OF revival
OF business and 8 reaction OF prosperity. The
one one condition essential , to this i, to stop
tIy ever did this, and never eau
while Is Oney is undergoing contraction. Busi-
constantly giving way. Stability in the volume
OF money Is the one essential requisite TO sale
ana prosperous business. What is the monetary
brought face TO face with the startling fact that
the gold prodoction OF the world has fallen be
low its cons umption in the arts and that there is
no probability OF any new gold for the
centuries TO come? With this condition of
things as TO gold. shut of silver
as is now proposed. and where is the money sup
ply, even for keeping mp the stock OF coin now in
the hands OF the world to come from As aggre
gating this state of affairs in this country. the
paper currency is undergoing contraction by the
surrender OF bank notes II this state OF things is
to last. upon what is there 10 build hope Of re-
tuning prosperity In the hast three
years, according TO London economHts, prices
have fallen more thsn 20 per cent-that Is, money
hes appreciated in that ratio In the quarter Oi a
century following the gold discoveries. N CaufOr
MIA and Australia, the STOCK OF the precious met
ais In as money was increased by nearly 40 per
cent. The trade and commerce of Great Britain
and the United states during the same period in
creased more than four fold, and wealth In pro