Daily tobacco leaf-chronicle. (Clarksville, Tenn.) 1890-1895, 1891-11-19
GOLD AND SILVER.
Secretary Foster Tells How to
Keep Them Equal
In an Address to the Business
Men of New York.

NEW Okh, NOV. lJ,--Ab JH6 annual
dinner of the chamber of commerce of
New York state, Tuesday night, Secre-
tary of the Treasury Foster delivered a
speech. His subject was: ITO Main
tain the Parity Between Gold and Silver
is the Fixed Policy of the Government.
Mr.. Foster, in opening, said: "To
maintain the parity between gold and
silver is the fixed policy of the govern
ment, because we all recognize its
supreme Importance. When we come
to the question of what policy is the
best to pursue to maintain this desired
condition, serious differences of opinion
arise"
Among other things he said:
''It is now agreed on all sides that
gold alone furnishes too narrow basis
upon which to conduct the money affairs
of the world. Fifteen years ago the
people of the east, who vera supposed
to understand the question of finance,
INDUCED in prophecy as to the evil that
would follow such large coinage of
silver dollars. Great financiers Of the
Countrywide chamber of commerce of
New York and the associated banks
held that the parity could not be
maintained, even with smaller coin.
Notwithstanding doleful predictions we
have coined over $400, 900, 900. We have
besides purchased about $70,000,000
worth of silver bullion at gold value and
paid for it by the issue of about $70, ,000,-
600 of new treasury notes. And yet the
parity is maintained.
"ls there now living any man whom
we would have regarded as good
authority on the subject but who would
have predicted that, under such condi-
tions, the parity of the two metals would
be preserved2 So now, men whose in
telligence and patriotism cannot be ques-
toned, and whose purposes are the most
exalted, are moved to indulgence in
gloomy forebodings over the present out
look, and propose to repeal the act Of
July IA, 1890 (the present law authoTiz-
ing the purchase Of 1850, 900 ounces of
silver per month, to be paid in new treas
ury notes., hoping thereby to preserve
the parity of gold and silver. 1t is not
my purpose to dispute this position; nor
do propose to make myself special ad
vocate of the law as it stands. do not
propose to indulge in prophecy as to
what is to happen.
The question to consider now is what
policy that is attainable remembering
all the time that the ideal is impossible)
will result in the least strain upon our
resources, and will require the least re-
sort to the exercise of the extraordinary
powers conferred upon those in author
ity to do what the law cammands, viz
To maintain the parity Of gold and sill
yer.
I'm my opinion, with Ell of our
power, we could not maintain the parity
of the two metals if the policy Of free
coinage of silver prevailed.
II am firmly of the opinion that the
parity of the two metals can be main
tanned under the present policy. We
produce in this country about 30,000,-
900 Of gold annually. The present indi-
cations are that the balance of trade
with foreign nations for the next two
years, and for a longer period if the
present tariff laws are maintained, will
require gold shipments to us to pay bal |
ances in our favor.
Under the present policy we buy
4 500, 900 ounces of silver per month, |
paying for this purchase it's value in new
treasury notes Under such conditions
the work of maintaining the party will |
not require an extraordinary exercise of |
power or be strain upon the resources
of the country. If, however, the bal |
ance of trade should turn against us to
any great extent, which seems to me
quite improbable, except in the event of |
contingencies abroad, the |
strain would come, but even then my
foifh iT,n 10 cI1Ch 40 fD
pei me to believe that we would weather
the storm and preserve the parity.
1.-The shipment of more than 70,000,-
900 of our gold to Europe without en-
barrassment to us is only an illustration
Of the marvellous financial strength Of
this country. Under free coinage silver
would take the place of gold in settling
balances If the price of silver were ad-
vanced from 81 to$1 029 per ounce, all of
the silver for sale in the world would be
attracted to this country. To maintain
the parity under such conditions would
mense resources and the exercise of
supply. But with 4,500,000 ounces
Of silver only per month purchased
at its gold value, the task would be
JdolVl. LII NY OplIllOlls lllC
practical question for you to consider is
fer.
81 know you have expressed a desire
FOR the repeal of the present law, and
understand You do not propose substi-
Jute of any kind. In other words, if
you can, have your way, you propose to
permit silver to take care of itself |
- rg1, 20, fl,ta
phase of the subject for the reason that
your views. But | think | can see
If the market the price will decline;
which case it seems to me she task of
the parity will be embar-
-assing and difficult.
Believing that the good sense of the
business world must. in the near future,
be brought into harmony with us in the
proposition that gold alone is too narrow
! base upon which to build the worlds
financial structure, | have much hope
hat the best Judgment of all concerned
will agree to the better and more extend
d use of silver to be followed by inter
national agreements by which the parity
u LuS TWO HitldtS hpOH aStcFiSu ldtlO
nav be maintained.
II feel quite safe.'l saying that one of
he hinderances 10 al early agreement in
he direction have indicated, is the be-
ief in Europe that free coinage is to be
he policy Of the coun ry. If this is to
)e our policy they know that their silver
viii come to us and our gold will go to
hem. 1t is not the part or wisdom for
Is to refrain from doing ANYTHING that