The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-01-30
THE LESSON OF FINANCIAL HISTORY.

cuoTisnlnS the expectation CLaC Tile Irto
coinage of silver is an issue which will
help them to carry the country in 1892.
In Congress they have put themselves on
record in favor of the proposition with
singular unanimlty. Already several
leading Democratic papers see the dan
ger which this policy involves and have
sounded the alarm. There is undOubt-
edly O decided sentiment in the country,
and particularly In the West, in favor of
the free coinage of silver. 1t would be
folly to deny this. But there is reason
to believe that when the people see that
the volume of currency would not be in
creased by free silver coinage, and that
it could not help them in any way, q de-
cided change will follow. Indeed, there
are reasons to believe that a reaction has
already begun. The revelations made
by the House committee investigating
the rumored silver pool are opening the
eyes of many men to the fact that the
movement in favor of the free
coinage of silver is largely specu-
lative and is i~nstigated by mine
owners and spectators who keep
a strong lobby in Washington, not only
to push free coinage, but to influence
public opinion on the question. Upon
the assumption that free silver coinage
is fraught with disaster to the country,
Republicans who recall past financial
history are entirely satisfied to have the
Democratic leaders commit themselves
to that policy. In 1876, in the portion of
the country in which free silver seems
to have such a popularity, the senti-
ment in favor of q decided expansion of
the paper money of the country was
general and emphatic. But, convinced
that such q policy would add to the
paralysis which had fallen upon the
business and industry of the country.
President Grant. in a few lines, vetoed
the imitation bill. In the West his ac-
ton was generally denounced, and if a
presidential election had followed in six
months, with General Grant as a a
didate, he would not have received an
gan, Wisconsin, iowa, Minnesota or
Kansas. Nevertheless President Grants
veto gave courage to the Republicans in
Congress, and they passed the resumD-
ton act, to take effect Jan. 1, 1879. The
Democratic party in the West espOused
the initiation heresy and took issue
against the resumption act. If a general
election had taken placei in the fall of 1876
the Republicans would have been beaten
in most of the usually Republican States
of the West. In Ohio such men as
Thurman openly advocated paper ex-
pansion, and Mr.. Hendricks. in this
State. became the powerful champion
of irredeemable paper money. In only
one State was the issue joined in 1875
Ohio. The battle was fought on the
currency issue. The Republican speak
ers cou~rageously stemmed the initiation
heresy, turned it back and elected
General Hayes Governor by about five
thousand plurality. On the other hand,
the Democrats carried Wisconsin by
15,4O0. The next House was Democratic.
and, as soOn as it was under way, began
its assaults upon specie payments, pass
ing a bill repeating the resumption act
in August, 1876. Everything was in
their favor; the business of the country
was p~aralyzed; values had shrunk and
labor was idle. In 1876 the Republican
national convention indorsed the re-
sumption act and the Democratic con-
vention condemned the act, but did not
declare for currency expansion. Mr..
Tilden, in his letter of acceptance,
favored specie payments, but opposed
the resumption act, while Mr.. Hen
dricks's letter gave comfort to the ex-
pansionists. Mr.. Tilden's specie pay
ments declaration carried New York for
him as much as any one thing, but the
Republicans carried all of their States
in the Northwest, in spite of the
fact that the Democrats turned to
all possible advantage the Repub-
lican resumption act. In 1877 the
wal upon the resumption act was re-
sumed with determination. Some Re-
publicans faltered. There seemed to he
a reaction on the part of the people
against it. In the fall the Democrats
CARED Ohio by 22,500 plurality. and
wherever there was an election it seemed
that the Republicans "were not in it."
There is reason to believe that but for
the certainty that a bill repeating the
resumption act would have been vetoed
by President Hayes, Congress would
have passed it, so general seemed the
popular hostility to it in the West. But
before specie resumption came the GER
tainty of it brought confidence and pros
perity. Consequently the Republican
party, which was so nearly beaten all
along the line in 1877 and 1873, in 1890
elected a Republican President and
House. They did it because their rep
~resentatives in Washington were loyal
to wise policy when it was unpopular.
Committing themselves to a heresy be-
cause they believed it popular and could
be used to carry a presidential election,
the Democrats lost. Thus history re-
peats itself. Honesty is the best policy
In politics as in business. Free silver