The times. [volume] (Richmond, Va.) 1890-1903, 1891-10-04

nr,s thoss Investments in which is contained
,Jaice 10 pny in gold coin. and insist that
| III Loans made by ourselves shall be based on
| = repayment TO us in gold coin and what 70
| true of tho bank which represent. with It's
Ell. oo0. 900 OF deposis, consisting OF the say
ines OF the poor, IL equally true, venture TO
assert. of oil or nearly all Of the vast agerc-
gate OF Il, 800. 900. 900 held by similar institu-
| tions throughout the nation. This determ'-
nation to insist upon gold clause IN all time
contracts is rapidly spreading. DC"
Francis @. Newlands. vice-presidens. IN na.
tionsl Silver Association lpage f4.I The
only way holders of gold will seek to protect
themselves will be by requiring specie CON
tracts TO be paid in gold. That Is all they
can do. -,
TO come nearer homo. will state that
when the Virginia Agricultural Society unuer,,
took to negotiate its 900 Of bonds secured
by mortgage, it could not get hearing until
il put In the gold clause.
The Masonic Temple Association executed
a mortgage on tho 9Th day OF September,
| 1891, 10 secure s75. COZ IN bonds, covering the
| magnificent new building which they have
erected on Broad street. in the city Of Rich
mond The mortgage requires potn piinc'-
| pa and interest 10 30 paid in gold.
Tho April. 1891, Century page 95Vl tnus
states tho cn.e: a competent authority
upon tho subject of farm mortgages declares
! that 30 per cent Of them are negotiated by
! the custom Of many of these lenders TO make
the mortgage debt. principal and interest.
| pav.blo in gold IT is believed that fully one
half the mortgage Indebtedness OF tho coun-
try is in term. expressly payable IN gold
The following statement has just appeared
in the New York Tribune OF September ~
1891:
Already merchants arc having their atten-
tion directed to this matter by Eastern job
bers and manufacturers. for directly across
the top OF their bill-heads are printed IN red
and full-facod letters the words: AL goods TO
lie paid for in gold or its equivalent
could 60 on citing instances without num-
Der. Men who are daily engaged IN large
business affairs need no testimO ny to convince
them that the time obligations OF tie coun-
try are being changed from currency 10 gQid
The moment ii becomes evident that such
free coinage bill, as passed the senate iast
January is about % become law. the DanKs
and money lenders viii PRINT all notes and
bonds with the,god.clsuso.
Then the banks aud the money-lenders
hold and control the gold the banks ana the
money-lenders will hold our bonds and notes
payable in gold. How are we TO pay tDen
except by complying with such premium as
our creditors may exact. II the free coinage
law does not make silver legal tender TO pay
them. the free coinage law itself discredits
silver and makes it inferior to gold,
TIE SILVER AND GOLD DOLLAR.
Major Daniel has truly said that we have
made the silver dollar equal TO gold dollar.
and that the silver dollar 10 day will buy as
much gold bullion as the gold dollar. will
say in addition to this, that we have mace the
paper dollar equal to the gold dollar, and that
q paper dollar will buy az much gold bullion
rs a gold dollar. Why is this so2 Because as
long 40 the paper dollars and the silver dol
lars are legal tender, and are issued in such
limited numbers. that tho banks aud the
i
country al" satished that tho government can
keep them interchangeable with gold. they
are received and paid out like gold dollars.
But everybody knows that if the government
offered to exchange gold dollars for all the
paper dollars and all the silver dollars issued
by all the other governments IN the world.
the banks and the country would take the
alarm. Before tho people OF other countries
could send ovor their paper and their silver
dollars our banks would rush TO the treasury
with their $3.50 900, 90 of greenbacks and their
$50 900, 900 of gold certificates. and the $3.50,
0o0. 900 OF gold in tue treasury would disap-
pear in the twinklng Of On eye.
That would DO the practical way OF putting
gold TO premium. 1t was the legal tender
quality. as Major Daniel has pointed out, that
made the silver dollar of 4l2>i grains worth
more than the trade dollar, with its t20 grains
of silver.
But when the great bulk of the indebted.
ness OF the country passes into the form OF
gold contracts, the silver dollar will DO legal
tender, in name only. and not IN fact. The
Government would stamp 1t Legal tender,
but when you 20 to pay your debt, the
creditor will shake his head with . de-
risvo snile and say: My contract calls Tor
gold dollars" Practically it will not DO le-
gal tender or will be only a partial tender,
and the gold dollar, being the only dollar re-
cognized by the banks. bankers and creditors,
will necessarily be at premium.
SENATOR DANIELS DEFENSE or Mr.. VEST.
In my letter of August Path ] alluded 10
Mr.. Vests reply when Mr.. Sherman de-
manded to know if that Free Coinage bill
would make silver q legal tender Tor gold
contracts. said that Mr.. Vest replied
feebly that If II was in the power Of Con-
gress it was so intended" 1t was feeble
reply-hrst, because it indicated that Mr..
Vest, the leader of his party on that occasion,
was ignorant Of the law. second. because the
answer was evasiye and threw doubt upon
the constitutional power of Congress. AZ
champion Of silver and as n leader OF its
forces, Mr.. Vest should have boldly and
strongly asserted its rights and the power
of Congress.
It given as a reason for his evasion of the
issue that he was trying TO deieat n bill which
authorized the issue OF S200,O000OO of ad-
ditional bank notes.
THE VOLUME OF CURRENCY.
Mr.. Vest WAS afraid 10 meet the Issue be-
cause lie was AnthgOnlZlUg OH WNlcu WOuIu
forthwith have added 100000 900 to our cur
rency with free coinage bill which could
add practically nothing TO the volume of our
currency. and would have compelled debtors
to pay premium on their indebtedness.
The whole country was crying ont for moro
currency. Mr.. \ est and the Democratic party
were proclaiming with al their force ard elo-
quence that the great and pressing need Of
the times was more currency. The farmers
and the labofing men were organizing and
massing their forces to sweep existing parties
from the field because they wonld not give
the country sufficient volume o. currency.
and yet We are told that il was wise to defeat
bill giving MS 500 00J, 900 more currency at
once with that Free Coinage bill, which
Major Daniels figures show. may not add
r200 600 QUO to tie currency IN his or my life
time.
am not here undertaking to defend the
bill which Mr. Vest antagoni,ed. nor do ! as
sumo anv responsibility for the figures and
statements Of the 'free-coinags" men.
TIM rnrt-coINAoE o1ANT.
We have all been accustomed to regard free
coinage as mighty giant that WAS 10 lift tie
plane OF prices, OF produce, property and
labor
IL has danced before our tewildered eyes
like one OF those tall circus figures clothed N
long robes. which parade the streets Tor the
amusement of the children When YOU ap-
proach it closely AMI lit the garments you
find it 10 be a midget on top OF pair Of long
stills.
Major Daniel states that the total nroduc