The Providence news. (Providence [R.I.]) 1891-1906, 1891-11-18
SEC. FOSTER ON Sill YER.
He Tells How That Metal Can Be
Kept on Par with Gold.
NEW YORK MERCHANTS LISTEN.
The Annual Dinner of the Chamber OF
Commerce I'm Deimonico's-Th Present
Tariff Laws Maintain the Balance of
Trade In Our Favor.

NEW YORK, Nov. 1s.--The New York
Chamber of Commerce gave its 123d an
nual dinner at Delmonico's last night.
Secretary Foster was then introduced
and responded To the toast, "To maintain
the parity between gold and silver is the
fixed policy of this government" He
said: 'To maintain parity between gold
and silver is the fixed policy of the govern
ment because we all recognize its supreme
Importance. But when we come 10 the
question of what policy is the best to pur-
sue TO maintain this desired condition ser
ious differences of opinion arise.
There is one important factor in deal
ing with this question which has not been
appreciated 10 any such extent as IL de-
serves. That is the enormous power given
by congress TO those in authority TO deal
with this question, backed by the almost
incalculable resources of the greatest
country on earth. The question 10 con
slider now is what policy that is attainable
will result in the least strain upon our re-
sources and will require the least resort TO
the exercise of the extraordinary powers
conferred upon those in authority 20 do
what the law commands, viz. 10 MAINTAIN
the parity of gold and silver.
I'm my opinion we could not maintain
the parity of the two metals If the policy
am firmly of the opinion that the parity of
the two metals can be maintained under
the present policy. We produce in this
country about $50, 900 600 of gold annually.
The present indications are that the bal
ance of trade with foreign nations for the
next two years and for longer period If
the present tariff laws are maintained,
will require gold shipments TO us 10 pay
balances in our favor. Under the present
policy we buy 4,j00,0O0 ounces of silver per
month, paying for this purchase in treas
ury notes. Under such conditions the
work of maintaining the parity will not
require any extraordinary exercise OF
power or be a strain upon the resources of
the country.
IF, however, the balance Of trade should
turn against us 20 any great extent, which
seems quite unlikely, the strain would
come; but even then my faith In our re-
sources is such as To compel me To believe
that we would weather the storm and pre-
serve the parity. In my opinion nothing
short of an exceptionally large drain of gold
is likely TO produce strain upon our re-
sources in the effort to maintain the
parity of gold and silver. But under free
coinage silver would take the place of gold
in settling balances. IL the price of silver
was advanced from 81 TO 81. ~ per ounce
all of the silver for sale in the world would
be attracted to this country. We would
then have hundreds of millions of silver
dollars added TO the s400, ,OO0, 600 we now
have and that. too, as fast as the mints
could coin them"
Mr.. Foster expressed the hope that the
best judgment of all concerned will agree
TO better and more extended use of silver,
TO be followed by international agreements
by which the parity of the two metals
upon an accepted ratio may be maintained.
One of tine hindrances, he said, To an early
agreement in the direction indicated, is
the belief in Europe that free coinage is
to be the policy of this country, and that
then their silver will come To us. and our
gold go TO them. Convince Europe, said
Mr.. Foster, that we will not permit our
selves to fail in this respect, and ar
obstacle to the agreement SO much desir, d
is removed.