Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-06-07
THE SILVER PUZZLE,
How it is Viewed by a Num-
ber of Local Financiers.
FREE COINAGE FAVORED
By Nearly All of Pittsburg'S Business
Men Except the Bankers.
MORE CASH FOR GROWING TRADE

CreSs for the increase OF the coinage OF silver,
and the free coinage of that precious metal
under certain financial conditions, which is
to be voted upon this afternoon, seems to
have received very little attention from the
business men of Pittsburg, who would be
most naturally expected to keep a close
watch on financial and monetary affairs.
President William E. Schmertz, of the
Chamber of Commerce, and the head of the
wholesale boot and shoe house on Fifth
avenue, appears to have been attentively in
terested in the silver coinage agitation of
the last IL years. To reporter of The
DISPATCH he said yesterday:
81 think it is an absolute necessity that
we should protect our silver product. L
was very strongly believer in the bill in
troduced by Mr.. st. John, of New York.
That bill was discussed in the Chamber,
and 1 argued for it, but like the present
caucus bill before the House still better.
Otherwise than in the clause retiring green
backs, the caucus bill is practically the
same as the st. John bill.
NOW TWO MILLIONS MONTHLY.
The present coinage of silver is $4,000, 900
q month. The pending bill, whose fate is to
be settled tomorrow, provides for an increase
of this monthly coinage to s., 800, 900. That
amount may not be actually minted into
silver dollars each month, but if it is not,
silver certificates will be issued representing
the purchase of bullion stored in the treas
ury. The effect is the same as if that sum
were turned into new silver dollars
u times a year. St. John, by his
bill, desired to retire greenbacks. 1 am
opposed to that. 1 think that in recent
years mucn national bank currency has
been retired which ought not to have been
taken out of the volume of circulating
money. Our population is growing con-
stantly. Enterprises are increasing. The
great increase in our industries demands
more currency.
''See what has been done in this COM
munity alone. The plate glass industry has
been created here within the past ten years,
and the window glass manufacture has been
much more than doubled. See the develop
ment of our gas and electric industries.
About SIS, ,000, 900 is now invested in gas in
dustries in this center. Manv iron manu-
facturers also have been doubling their
capacity.
DOUBLED IN TEN YEARS.
ST venture to say that the manufacturing
interests of Pittsburg have been doubled
since 1880. If an individual does business
of 500 900 on S25, 900 capital, in order to do
a business of 5000, 900 he should have
capital of $50, 900. 1t is so with a nation.
It must have more money to do more busi-
ness"
"What effect do you think the increased
silver coinage will have on prices?"
''I do not think it would affect prices
much. think merchandise will advance
some, but not to the extent that people ex-
pect. During recent years, as everybody
knows, a great deal of the currency issued
by national banks has been drawn in and
retired, and nothing has been issued to re-
place it, except the coinage of S24, 900, 600 of
silver a year. That has been very little
more than a drop in the bucket. think,
as far as we are locally concerned, the in
creased currency will have a good effect on
our manufactures. 1t will generally stim-
ulate trade. We can see the effect already,
because there seems to be an excellent pros
pect for the passage of silver bill. eI-
pect general advance on all kinds of mer-
chandise. The fact is, everything is too
low. think an increase would help to de-
velop our resources now and put us in bet
ter position for the future.
CAN COMPETE WITH EUROPE.
"In many articles which we produce now
we are able to compete with Europe. In a
few years we will be able to compete in
everything. We have better facilities for
producing. better maehinery,a q better class
of labor, and we do things more speedily.
/ think that with the opening of the South
American market to our trade, which,
through the grand work of Secretary Blaine,
will come before long, and the building up
of our mercantile marine, our commerce
will be so enlarged that great increase in
our currency will be demanded by every
hndr &c To frnrr
competing with the world in the South
American markets"
Mr.. Schmertz was asked what he thought
of the published statement that the
Farmers Alliance would ask for law for
the issuance of treasury certificates for de-
posted farm produce. He replied:
'Such thing is not feasible. Farm pro-
duce has never been a medium of exchange
In any country. Silver has been an ex-
change, like gold, through all ages. You
might as well say that treasury certificates
should be issued on pig iron or coal as on
farm products. There are two metals called
precious metals. They alone can be recog-
uized as basis for money.
SHOULD BE PROTECTED.
"Silver is a product of our own country,
and we should protect it in measure. 1
do not think it will be very long until the
great nations of Europe will come back to
silver monetiZation, England, Germany and
France. Soon there won't be gold enough
to 90 around and we must have more cur
rency."
Nj Thomas P. Day, cashier of the Peo-
pies National Bank, on Wood street, was
reluctant to discuss the pending measure,
because he thought older men ought to
speak. He said, however, that nearly all
the bankers of the country were opposed to
an increased coinage of silver. The chief
reason was, he said, that bankers are con-
servative. They do not desire to see the
existing conditions disturbed and they feas
that the pending bill will lead to such a
disturbance. Mr.. Day said that he had
made up his mind that there would be an
increase. He hoped it would be as small as
possible. He could not see, for the life of
him, why silver should be piled up in the
Treasury vaults and certificates issued on
it. More silver was not needed in circula-
tion, and he thought iron, not needed in
currency, might as well be selected
as the basis for currency. He
acknowledged that some com promise
measure between the conservatives and the
tree silver men was necessary, and thought
the pending bill a good escape. He said
that he felt confident that the result of the
increased currency would be an increase in
prices.
A SCARCITY OF SMALL NOTES.
Mr.. Day said that all the banks felt
scarcity o. small notes, s., $40 and $40. He
would like to see many more of them in
circulation, for the accommodation of big
companies who call on the banks for pay
roll cash Mr. Dav said he feared that the