The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-09-07
DANGEROF TOOMUCH SILVER
Evil of Unlimited Free Coinage Pointed
Ont in Speech by Hon. S. ]. Peelle.
How the Owners Of Mines and Bullion Would
Reap Advantage TO the Ruin of Laborers
and Farmers-Able Financial Review.
Special to the Indianapolis Journal.

Special 10 the Indianapolis Journal.
CLAYTON, Ind, Sept. 6.-An unusual po-
litical meeting was held here on Saturday.
1t was first intended to have it at the old
settlers grounds, near Pecksburg, but
owing to the rain the meeting adjourned to
this place. The Town Hall was crowded.
Tine speakers were Hon. Stanton j. PeelIe,
Republican,; Green Smith, Democrat; Sena-
tor PETER. Peoples party, and Eli (. Ritter,
Prohibitionist. Mr.. Peelies speech was al
most wholly devoted to financial topics.
and he received marked attention. He
said, in part:
ment Is the creation of the Republican
party and commands the confidence and
admiration of the world. In 1851, when
the Republican party took control of al
fairs. the condition of the government was
most deplorable-treasnry empty. navy
scattered, army divided, no credit and
war upon us with enemiesin our front and
rear. Yet, notwithstanding this condition
of affairs, the Republican administration,
inspired with love of country and IN hon
est purpose. devised means and organized
and equipped an army, built MP q navy
from the green, and for four years was en-
gagged in the struggle to preserve our com.
mon country. The expenses of that war
were enormous, and. although at Its close
debt OF nearly three billions hung over us,
we came out of the war with better
credit than we went in-a record IN
equsled in the annals of the world.
How have we managed affairs sincef
Our debt At the close of the war was about
S.1OO.0OO,0OO. with an annual interest
charge of more than S15O.OOo.Ooo whereas,
to-day. our total debt. less cash in the
treasury, is about SSi3, 00O. 900. of which the
sum of about s6lO.OOO.OOO is interest
bearing debt made mp OF $4,000
GOO four-per cent. bonds. S2S,OOO.0O0
four-and-ahalf per cent. bonds, and
s23,OOO.OOO four-and-a-half per cent.
bonds continued 1T 9 per cent; while our
interest charge now IS less than ga. 000. 900
per year, or less than one-sixth OF what it
was twenty. five years ago; and the interest
charge will be less from now on, as the
S50,0O0,0O0 of outstanding four-and-a-half
per cent bonds which have not already been
continued at 2 per cent. or redeemed
ceased to bear interest on the first inst,
and will bear no more interest unless con-
tinued at the option of the holder at . per
cent In 1850 the total amount of specie
and paper currency in the country was but
S436 100000. or about Sl4 per CAPITA, of
which sum S207, 900 600 consisted of depre-
ciated currency and constituted the prlnci-
pal circulating medium; whereas to-day we
have In gold, silver and paper currency. in
GLIDING gold and silver certificates. and
treasury notes issued for the purchase of
silver. the sum of about 81, SOC, COO, GOO, or
S24 per capita, every dollar of which Is as
good as gold. and circulates abroad as well
as at home.
THE SILVER QUESTION.
1.-THE last Congress, in obedience to o
demand that moro silver be utilized as
money, passed law authorizing the Sec
rotary of the Treasury to purchase at its
market value not exceeding one dollar for
S71A grains. four and half million ounces
of silver bullion per month and issue in
payment therefor treasury notes in denomi
nations of one dollar to one thousand dol
lars. redeemable in coin. By the same act
the Secretary of the Treasury was author
million ounces of silver bullion 80 pur-
chased. per month. until July LIST last. and
thereafter to coin so much as may be
necessary to provide for the redemption of
the treasury notes issued for the purchase
of such bullion. That act provides for
utilizing practically the entire output Of
the silver in this country and will add to
the circulating medium of the country at
least $50, 600 600 per year. and will prove of
immense benefit TO the people. as by IL our
silver will be utilized as money we'll
gold. All political parties now concede
that both metals should be utilized as
money, and as the laws now are silver coin
can be made to circulate in this country at
par with gold. But many people believe
that Congress ought to pass law authoriz-
ing the free coinage of silver, not only of
the products of the mines of this country
but from all other countries
1T will be remembered that the first
coinage act. passed in 1892, flied the ratio
between gold and silver at one to fifteen,
but In that ratio gold was undervalued,
the quantity. of gold IN a dollar being
worth more than q dollar, so that gold
| practically disappeared from the circulat-
ing medium of the country. and the coun-
try was placed upon silver standard I'M
| til 1854, when Congress changed the ratio at
90 go l.,,k - H.
undervaiued, the quantity of silver in a
| dollar being worth more than q dollar so
that silver practically disappeared from
circulation, and gold became the standard
banks as a basis Tor the circulation of de-
| preciated paper. In 1858 Congress, seeing
| that the ratio which it had fixed In 1s34-7
had driven silver from the country, passed
another act, by which the weight of sub
sidiary coins WAS reduced Sl4 per cent.
| and at the same time limited the debt-pay-
| ing power of silver, and withdrew from the
| people the right to have silver coined on
| their own account This was really the first
act demonetizing silver and destroying its
| legal-tender quality.
I'm 1878. in the revision of the coinage
laws. Congress discontinued tn coinage of
the silver dollar for the reason that it had
| become obsolete and none had been coined
| for about twenty years prior thereto. Be-
| sides. at that time, the German empire had
demonetized silver, and the probability
was THAT Its value Woui0 rapidly decline.
This act of 1878 was supported by both po-
| lltical parties in Congress. but it was not
| satisfactory to the people. and So in 1878.
| another law was passed known as the
Bland act which required the purchase
| monthly, at the market value. OF not less
| than two nor more than four million dol
lars worth of silver bullion and tho coin
| ing OF the same into standard sllver dol
| lars of 4l2l2 grains. By this act the gov
| eminent coined about 377 600 900 silver dol
lars. and made q net profit on the purchase
| of about S67 ,000O which, under free coin
age. would have gone to the mlne-owner
and bullion-hOlder.
THE RESULT OF FREE COINAGE.
The advocates of free coinage of silver
| insist that it shall be free coinage as to the
| product of the silver mines of the world
upon the ratio of one to sixteen. and it
| should be remembered that the annual
| product of the silver mines of the world is
about $40. 0C0. 600. while 1t is estimated that
there is In the world now at least 5000.
| OOOOOO In silver. Now. if the United states
Is TO oe made the dumping ground for the
| product OF the silver mines of the world
| you can readily see that the mine-owners
| and the holders of silver bullion would
make enormous sums of money by specula-
| ton. while the people would be given q de-
preciated coin with which to transact the
| business OF the country, as gold would
| necessarily disappear from circulation and
be exported: and wbyf The bullion value
OF the silver IN q silver dollar to-day is
| worth but "a cents in the market, but when
| coined IL passes current with gold because