Los Angeles herald., 1890-04-27
A QUEER THEORY AND 'UNMISTAKABLE
CONFESSIONS.

As the people of the United States are
about to enter into an era of prosperity
which even a war tariff, increased
instead of diminished, is powerless to
repress, founded upon a public senti-
ment, generated in the West, calling for
the reconciliation of silver, and as the
question is not fully understood, we will
take the liberty of discussing the propo-
sition at some length, and we will base
our brief remarks upon the weekly finan-
cial circular OF Henry Clews & Co.
While coming to the circular of this
firm, we will simply state that, before
the crime OF 1873 was consummatea, the
coin circulation of the world consisted
in almost equal parts of gold and silver.
From 1S49 till the sixties the production
of gold had been so enormous that
a premium on silver was only pre-
vented by the commercial good sense OF
the civilized nations. 1t would have
been very easy to have rushed silver to
an enormous premium, because it was
the exclusive circulating medium of four
hundred and fifty millions of Mongolians
and three hundred and fifty millions OF
East Indians. Instead OF adopting this
narrow policy, the commercial world then
gladly accepted the infusion of new
commercial blood; and, as a result, the
miracles of development of the last forty
years have been witnessed. They have
embraced more genuine increment OF
the material wealth OF the world than
has characterized the preceding years,
amongst peoples of Caucasian ex-
traction, since the birth of Christ, all
the inventive arts, of course, participat-
ing in making such wonders possible.
When silver was demonetized in 1878
the gold coined in circulating form by
the trading nations consisted of about
two thousand, two hundred and fifty
millions of dollars, The silver coined
counted up about the same amount.
When the latter was demonetized, it not
only ceased to be measure OF values,
of real estate and the products Of the
earth, but it became itself an addition
to the values to be measured by the
single gold standard, with the complex
accompaniments of paper promises to
pay which, singularly enough, have been
held to be better than a similar promise
to pay stamped on silver, which, at it's
lowest point OF depreciation, was intrin-
sically worth 73 cents on the dollar in
gold. This anomaly is fine illustration
of the infinite finesse OF the modern
fnancier, of the British pattern.
But, waving the points which we
have thus introduced cursorily, Wal
street itself, through Henry Clews's cir
cular, comedies that, at the very initial
of a genuine American policy, the
country is recognizing the new con
ditions. This circular deserves to be
quoted in full, and we give 1t this honor
because it is the first document of the
kind that has ever, emanating from the
British gold-bug citadel of New York,
permitted the American people to see
how great is about to be their emanci-
patton. 1t is long, but every word of ii
is good and instructive. 1t is dated
April 10th, and says:
The silver question is destined soon to
become most important factor in the
stock market. From present appear
ances there is every probability that
Congress will pass bill providing fo1
deposits of domestic silver bullion, and
the issue of notes against the bullion
value thereof, redeemable in lawful
money. OF course such measure means
nothing short of general imitation; in
fation in securities as well as merchan-
disc; initiation which Mr.. Window had
carefully endeavored to guard against.
The demand, however, for expansion OF
the currency is too urgent to be ignored.
With many the question is more the re-
suit to be obtained, than the method
employed. Too many think the end
justifies the means and as the plans of
the silver barons appear to satisfy this
demand, no matter how unwise they
may be, they receive support which
they could not otherwise command. The
effect of adopting present propositions
for practically unlimited silver coinage
will inevitably be to stimulate specula-
tion and raise values to higher level,
until the point of reaction is finally
reached. How far distant that may be
no one can tell; but the country is MAX
ing such rapid and energetic progress
that the day of reckoning is likely to be
postponed to a later date than expected
by those whose soundness of views had
led them to anticipate earlier punish
ment, and who, for the same reasons,
have too easily become pessimistic in
their opinions. 1t is to be remembered,
also, that very large section of the
country has been anxiously seeking
this ignis .fatuus of unrestricted silver
coinage, and.the greater their success in
finding it, the more exultant will
be their consequent actions. The
delusion will lead to all sorts of expan-
sion, and nothing short of experience
will prove folly which will never be
admitted until the draught has been
swallowed. We can only iken the sit
uation to the inebriate who ignores the
consequences of indulgence until the
after effects of debauch bring him to his