Rock Island daily Argus., 1891-12-10

India during the first nine months of tbis
calendar year fell of over "a percent or Sl7 ss2 .
40 compared with the sa1a months of tbe
proceeding yslr The exports of domestic sill
yer bullion M Z; ON this country, which had aver.
in the last fiscal wear to Sl3 ro- 3gl :.
while, for the first time in recent years the
imports OF silver into this country exceeded the
exports by the sum of S2.s4j.365. IL the pre-
y1ous year the net exports of silver from the
United States amounted TO SS,5i5 45j The pro
aucdlon 1nc OF the United States increased from
5t,Uo,Uo ounces in 1889 to 4,0nODl in 1890 The
government is now buying and putting aside
annually 5i,HnnU ounces. which allowing, for
I.lfn.WD ounces of new bullion used in the arts
Is o'6iquD more than our domestic product
available for coinage. | hope that the depres-
son IN the price of silver is temporary and
that further trial of this legislation viii more
favorably affect it. That the increased volume
OF currency thus supplied for the use of the
people was needed: and that beneficial results
upon trade and prices have followed this legiS-
iatlon think must he very clear to every one;
nor should it be forgotten that for every dol
lar OF these notes issned full dollars worth Of
silver bullion is at the time deposited in the
treasury as a security for its redemption.
Let Existing Laws Be Tried.
Upon TINS subject as upon the tariff, my rec
ommendation is that the existing laws be given
spared the distressing influence which threats
OF radical changes always impart. Under ex
lsthg legislation II Is in the power of the treas
ufy department TO maintain the essential con
dition OF natioral finance as well as of CONNER
clai prosperity-the party in use of the coin
ooilars ana thHir paper representatives. The
assurance that these powers would be freely
ana unhesitatingly used has done much to pro
duce and sustain the present favorable bust
ness conditions. am still of the opinion that
the free coinage of silver under existing condi-
tlons would disastrously affect our business in
terests at home and abroad. We could not
nope TO MAINTAIN an equality i'll the pur-
chasing power of the gold and silver
dollar IN our own markets and in
foreign trade the stamp gives no
IF7aaf 70. 1.,.11
Inc producers of the country its farmers and
laborers, have the highest interest that every
dollar paper or coin issued by the government
SIlall DE as good as any other. If there Is one
less valuable than another its sure and con
slant errand viii he to pay them for their toll
and for their crops The money lender will
protect himself by stipulating for payment in
gold, but the laborer has never been able 10 do
that; To place business upon silver basis
would mean sudden and severe contraction of
the currency by the withdrawal of gold and
gold notes, and such an unsctting of all values
ilSt as would Ii produce commercial panic. | can
not believe that people 50 strong and prosper
Gus as our VIII dtolnote such policy
Required bv the business World.
The producers of silver are entitled to Just
consideration, hut they should not forget at
the government Is now buying and putting out
Of the market what Is the equivalent of the
tire product of silver mines. This is more
than they themselves thought of asking two
years ago. believe il is the earnest desire of
a great majority OF the people as IL is mine
as soon as the cooperation OF other nations can
be secured and a ratio fixed that will give
circulation equally TO gold and silver. The
business 81 the world requires the use of both
metals; but do not see any prospect of gain.
nut much of loss by giving up the present sys
tenn, in which full use Is made of gold and
large use of silver. for in which silver alone
will circulate. Such an event would be at once
fatal To the further progress OF the silver
movement. Bi-metallism Is the desired end.
and the true friends of silver Will be careful not
to overrun the goal and bring in silver mono
metalllsm with ITS necessary attendants, the
loss of olr gold 10 Europe and the relief of the
pressure there for larger currency. ! have
endeavored by the use Of official and unofficial
agencies 10 keep a close observation of the state
OF public sentiment in Europe upon this ques-
ton. and have not found it 10 be such as to JUS
my me IN proposing an International confer
ence. There is, however. am sure. a growing
sentiment IN Europe in favor of "A larger use of
silver, and know of no more effectual way of
promoting this sentiment than by accumuat-
ing gold herc. 4 scarcity OF gold in he Euro
pean reserves will he the most per Isuasive argu-
ment for the use of silver.
Tn" Treasury surplus.
The exports of gold to Europe. which began
in February last and continued until the cIuSe
of July. aggregated overSeventy millions of dol
lars The net loss of gold during the fiscal year
was nearly StS,ThUh That no serious none
tary disturbance resulted was most gratifying
and gave to Europe fresh evidence # the
strength and stability of our financial iuStitu-
tons With the movement of crops: the out
flow of gold was speedily stopped. and return
set in. Up to Dec. | we had recovered of our
gold lost at the port Of New York So SSiOlh and
1t is confidently believed that during the winter
and spring this aggregate will he steadily and
largely increased The presence of "a large cash
surplus in the treasury has for many years been
the subject Of much unfavoTabr criticism and
has furnished an argument - those who have
desired TO place the tariff upon a purely rev
enue basis. II was agreed by all that the
withdrawal from circulation of 80 large an
amount of money was embarrassment 10
the business OF the country and made neccs-
sary the Intervention of the department at FIRE
qUent intervals to relieve threatened none
tary panics. The surplus on March !. lSS. was
SlSS ~, lala9 The policy of applying this sur
plus to the rcdCmrtlon of the interest bearing
securities of tho United States was thought to
he preferable to that of depuSitinC il without
interest in selected national banks. There
have been redeemed since the date last men,
toned of interest bearing securities $50 O.9 SD
resulting in reduction Of the annual interest
charge of Sll,6S4,f95. The money which had
been deposited in banks without interest has |
been gradually withdrawn and used in the re-
demption of bonds.
The result of this policy. of the silver legisla-
tion and of the refundiug of the AZ per cent |
bonds has been 4 large increase of the money
in circulation. At the date last named, the cir
culation was Sl.4Oi, ,a5S1Ai or S.Sdi per capita |
while on the first day of Decemher 1881. it had
increased to Sl5'1 2u7n. or S34.SS per capita |
The offer of the secretary of the treasury 10 |
tn" holders of the 40 per cent bonds to extend |
the time of redemption, at the option of the
government, at an interest of , per cent was |
accepted by the holders of about ona-half the |
amount and the uneNtended bonds are being |
on presentation.