Omaha daily bee., 1891-02-01
FREE COINAGE OF SILVER.
Hon. John V. Fnrwcli, the Merchant
Prince, Protests Against IL.


John V. Farwel in the New York Iude-
pendent' Having had in my business ex-
perience Of over forty years in Chicago some
opportunities of observing the results of state
and national legislation affecting the cur
rency of the country, l wish to protest, in the
name of all business interests, against the
present craze for the "free coinage Of siver''
by the government, to which the United
States has affixed its official endorsement
If this measure becomes effective law, IL
must inevitably marshal all moneyed institu
tions, which control the money of the country,
against all other business interests, simply
to protect thir own property from the inevt-
able depreciation which must follow the fiat
of the government, that debtors can pay their
obligations with silver, at about SO cents on
the dollar
Can anyone blame them If every gold coin
and gold certificate in their reach (aud they
have most of them). is takcn out Of Circula-
tion and held for the premium, which gold
must command IN the face of such a law
The silver legislation of the past (not re-
ferring to the present law, which utilizes sill
yer on gold basis, to the extent of $4,000
900 per annum), has had the effect to induce
monetary institutions to make their time con-
tracts payable in gold. Probably 10 per cent
at least of the western farm mortgages are
thus payable.
result Of rapid utilization of araDle lands since
the war; but with gold at Il premium of 30
per cent, and his mortgage principal and in
terest, payable in gold, what would then bo
left of him but financial corpse, without
benefit of clergy for burial!
Railroads have almost universally issued
gold bonds for their construction. If they
have to collect freight and passage money in
silver to meet their Indebtedness, they must
necessarily collect 80 per cent more to meet
their obligations, which the dear people must
pay. Do the present dividends on railroad
stocks ana the herculcan efforts of railroad
managers to make them more satisfactory to
their owners indicate that it Will be an easy
Job, with the business interests of the country
cast into the vortex of a monetary revolu-
ton!
Our vast acreage has been turned into
money making machines till the United States
is supposed to be the richest country IN the
world Farms aud railroads have been made
just a little too fast in the past decade, and as
is always the case, farms have to suffer first,
when corn and potatoes won't bear transpor
tatiOn for want of remuneratiVe markets.
1t is not too little money, but too many
railroads and too many farms, as compared
with other interests, that ails the country
just now, and demagogic legal patent
TO retire Immediately several hundred
millions of gold from our circulating money,
and wait due process of law to fill the
vacuum with silver, as our only lawful
money, and to discount our obligations at 30
per cent for the richest people in the world
this looks to me like political, financial and
business dishonesty. 1t is the full team
which bogus democracy expects to pull it
into power by the farmers vote in 1892,
without reference to results in the meantime.
1t does not follow, because the farmer sad
in unmistakable language at the polls that an
increase in our tariff (Which should have
been reduced) was ropub blican blunder, that
a democratic blunder two years in advance
of the election, which Dy its operations will
m a lyn ia n Vy1ll mn hn IunI Ia,-
ers into power by their votes. If anyone
thinks so, let him wait tand see how the
farmers will vote in 1892, with free silver
coinage law that will certainly create the
most colossal panic that ever cursed our
country.
In 1851 and '5S "stumptai" state currency
was the heritage of Illinois, and my firm
adopted wheat as the then best currency, be-
cause 1t would, and did, pay it's debts, while
''stumptall' state bank bills would not We
got through the panic of '56 and '5S by the aid
of the farmers wheat
From the panic OF 1891, with silver as our
only money, no farmers wheat will deliver
us, and so, for one, l expect our senators to
get wisdom, by the way of white house
veto, provided the other house does not re-
lieve the presidenl by giving the country un-
limited coinage of American silver into legal
tender certificates on gold basis as a com
promise measure instead of S4,500,OOO per
month Such measure would be endorsed
by monetary institutions until the volume of
such currency was equal to the demands of
commerce, ane such use Of silver, by both
bankers and people, demonstrated as benef-
cent by fair trial, would probably open the
way for an international agreement for un-
limited coinage at IN agreed ratio with gold,
which, to my mind, is the only cure for scar
city of money and periodical monetary paniCs.
Senator Jones, in proposing such method
for the limited use OF silver, has become the
John the Baptist in monetary SCIENCE if such
"A result shall follow its Unlimited use on the
same basis as it very likely will. England
needs bi-metalism more than America and is
discussing it now vigorously. She borrowed
81, 600 of gold from France at per cent
when her own rate was per cent IN the late
money squeeze. France has more silver than
gold, but was able in the late panic to lend
England at one-half her own per cent.
Allow me to add that unwritten law may
intervene to prevent the realization of our
worst fears. Cool-headed bankers know that
panics aud business failures proceeding from
monetary changes will react upon them, and
hence all their skill will be challenged to
counteract the bad effects of unwse written
law, until calm public sentiment can repeal
it, Congress cannot enact a permanent EN-
barge upon the business interests of free
people
EDUCATION4L.