The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1891-11-27

Ntguests and IN the
SECRETARY FOSTER midst of the feast
fell dead Many times the tragedy
was referred to among those present
Hon. Charles Foster, secretary of the
treasury, made the speech of the even
ing. His subject was: ''To maintain
the parity between gold and silver is
the fixed policy of the government" "
In opening he said:
| To maintain parity between gold and sill
yer is the first policy of the government. be-
cause we all recognize its supreme impor-
tance. When we come to the ques tiOn of
what policy it is best to pursue to mainta ain
this desired condition serious differences Of
opinion arise. II any body of men in the
world ought to be practical in their under
| taklngs it Is the chamber of commerce. of
| New York They should be able to distin-
| guish the practical things that can be ac-
complished from the impossible ideal which
they would prefer.
Prior to 1882 We had many sound thinking
people who believed that our financ al
structure should he based upon gold alone.
1t is now agreed on all sides that gold alone
furnishes too narrow a basis upon which to
conduct the money affairs of the world.
Fifteen years ago people of the east, who
were supposed to understand the question
of finance, INDUCED in prophecy as to the
evil that would follow such q large coinage
of silver dollars. Great financierS of the
cOuntry-the chamber of commerce of New
York and the associated banks-held that
the par ty could not be maintained even
with n smaller coin notwithstanding dole
full predictions we have coined over O,OO0
OO0. We have besides purchased about s7O.-
90 900 worth of silver bullion at gold value
and paid for it by the issue of about s7O,t o.
o. o of new treasury notes. And yet the par
ity is maintained.
In my opinion, with all of our power we
could not maintain the parity of the two
metals il the policy of free coinage of silver
prevailed. / am firmly of the opinion that
the parity of the two metals can be main
tanned under the present policy. We pro-
duce in this country about s3i. 10000 OF gold
annually The present indications are that
the balance of trade with foreign ma ions
for the next two years, and for a longer
period If tine present tariff laws are main
tanned, will require gold shipments to us TO
pay balances in our favor. Under the pres
ent policy we buy $4,000 ounces of silver
per month, paying for this purchase its
value in new treasury notes. Under such
conditions the work of maintaining the par
ity will not require an extraordinary ex-
ercise of power or be- strain upon the
resources of the country. IT, however, the
balance of trade should turn against us
to any great extent. which seems to me
quite improbable except in the event OF
extraordinary contingencies abroad, the
strain would come; but even then my
faith in our resources in such as to compel
Inc to believe that we would weather the
storm and preserve the parity. The ship
ment of more than 10000 OF our gold to
Europe without embarrassment to us is only
an illustration of the marvellous financial
strength OF this country. Under free coin
age silver would take the p ace of gold in
settling balances. Ifthe price of silver were
advanced from 81 to Sl.29 per ounce all of
the silver for sale in the world would be at
tracted TO this country. To maintain the
parity under such conditions would be a
task requiring more than our immense re
sources and the exercise of unusual power
to the last degree could supply But with
$4,000 ounces Of silver only per month,
purchased at Its gold value the task would
be easier.
In my opnion, gentlemen, the especial
question for your consideration is which of
these two policies will you prefer. / know
you have expressed a desire for the repeal
of the present law and understand you 10
not propose a substitute of any kind In
other words. If you can have your way you
propose to permit silver 70 take care of
itself / have not given much thought to
this phase of the subject for the reason that
do not believe congress will indor-e your
views But think can see clearly that If
the government goes out of the market the
price will decline: perhaps it will be a large
decline. in which case ii sc ms to me a task
of maintaining the parity will be embarrass-
ins and difficult Believing that the good
sense of tde business world must in the
near future. be brought into harmony with
us in the proposition that gold alone is too
narrow basis upon which to build the
worlds financial structure, / have much
hope that the best judgment of all concerned
will agree to a better and more extended
use of silver to be followed By
international agreements by which
the parity of the metals upon accepted ratio
may be maintained. feel quite safe in say
ing that one of the hindrances to an early
agreement in the direction have indie itad
is the belief In Europe that free coinage is to
be the policy of this country. II this Is to be
our policy they low that their silver will
come to us and that our geld will go to them |
IL II not the part OF wisdom for us to refra IN
from doing anything that will impair our
ability to preserve the parity. 1t will con-
vince Europe that we will not permit our
selves TO fail in this respect and an obstacle |
TO an agreement so much desired will be re-
moved. In what have said express the |
opinions of myself only Whether they are |
Of any value or not is for you and the coun- |
try to judge The position occupy requires |
me for the time being to give my best |
thou Sht and attention to this and kindred |
subjects am trying to consider not the |
ideal but the practical only