The times. [volume] (Richmond, Va.) 1890-1903, 1891-10-04
GOLD CONTRACTS IN SILVER.
Major Dooley Offers Further Reflections On
the Subject.
RESULTS FROM FREE COINAGE OF SILVER
Dtsa,pointmsut Awaiting Those Who Ks'y
ON FREQ silver TO AFFORD sumcisns
Currency.
RICHMOND. Va. October 1, 1891.

RICHMOND. VA, October I, 1891.
Editor Times:
Dear Sir: The reply of the Hon. John W.
Dan;el To my letter Of August 2ith 1881. con-
cerninc navment of gold contracts in silver.
sucpests 20 nv mind some farther reflections
unon tbe subject which l avail myself OF your
courteous invitation to submit through your
columns
I rop tho form OF addressing Major Daniel,
for the reason that have 10 controversy with
him personally. and do not desire 70 appear to
occupy O position OF antsgonism towards one
for whom have none but pleasant feelings
and friendly wishes.
Major Daniel has gained for himself repu-
tation As an able writer and q brilliant orator
lie occupies the exalted position OF senator
In the Congress OF tho United states. lie
has bravely WOO and worthlly wears one OK
tho highest honors which the people Oh MS
State can confer upon her most favored son.
lie is the leader of tho silver men IN virginia
He is one of their leaders in tho Senate OF the
United States. The utteraDces which fali
from his lips carry with them weight anu
influence derived from lofty station. great
povularity and national reputation. go
III am compelled reluctantly to diner VIII
him. / do so with rnOdesty, relying only upo1
the mowers of reason. common sense ana
truth. to carry conviction to my readers.
His letter may have conveyed the inpres-
sion that am hostile 20 silver, On the con-
trary have no sympathy with monomets or
cold men. have been in favor of every act
passed by Congress for the increase OF silver
circulation. My criticism and opposition were
directed against the free coinage Dllls passea
by the Senate in 1890 and January. 1881, wblcn
l assert were utterly Inadequate TO accomplish
the great things claimed for them by their adj
v0cates.
WHAT is CLAIMED FOR FREE COINAGE.
For months past the public mind has been
.oitsted about this subject Of free coinage"
Il has been held up as the great panacea for
the wOes of the debter, the poverty OF the
laborng man and the distress OF the farmer
The politicians have raised 1t aloft as flaming
banner to attract the army OF the unfortu-
mates Newspapers have groaned under pom
derous editorials prOclaiming It's benefcent
qualities Congressman and senators have
bowed before its shrine. Silver-tongued ora
tors have sounded its praises while the multi
tude have unanimously followed II with In
finite hubbub and fremescent clangor. 1t has
been so surrounded by fulIgnous clouds and
smoke that q plain man can scarcely dlstln-
guish how much Of truth and reality lies be-
meath this grand display. Thousands OF hon.
est voters would like to know, 1t be posi-
bic to see through the smoky clouds by
which it is enveloped what wonderful beneft
free coinage" will really and truly bestow
upon the people.
IT is claimed for it
1st That 1t will give relief to the oyerour-
dened debtors Of the country.
I'd That by increasing the currency OF the
people it will III the language OF Major
Daniel, enhance the prices OF property,
produce and labor
GOLD CONTRACTS.
Trying in nv modest way to get at the
truth of the matter, demonstrated in my
letter of August "a 1891, that 80 far from re-
Ieving the debtor class the free coinage
bills which have been passed by the Senate.
or either of them If 1t became a law, would
add premium To tue great bulk of the IN.
debtedness of tho country because neither OF
those bills made silver a legal tender IN pay
ment of gold contracts.
Silver was a legal tender In this country at
common law. ut the courts have decided that
contracts payable ina specific coin, whether IN
English soyereigns or in United States gold
eagles. cannot be discharged in any other
coin. although the other coin may be legal
tender.
Major Daniel agrees with me that Congress
has full power to make silver q legal tender
in payment of debts specifically payable in
gold coin: also that the custom of capitalists
in making gold contracts ID q great impedi-
ment 70 free coinage
INDISPENSABLE TO FREE COINAGE,
He says. however, that lit is delicate
power as against existing contracts and ought
not to be used unless Indispensable 10 our
financial system"
That It is indispensable to our financial sys-
tom if we are going TO try free coinage is pre-
cisely what l claim.
1t is truly delicate thing, when man
contracts for a dollar worth one hundred
cents, to make him take iii payment d dollar
worth eighty cents
That is the creditors side, and long and
loud will be the wall that will 60 up from the
land if Congress should dare TO exercise that
delicate power against the sacred rights of
the creditor.
But now comes the poor debtor and hum
bly, asks: Is it not a delicate power u exercise,
that OF making me pay dollar worth lag
cents when only contracted TO pay dollar
worth one hundred cents
But il is replied, You will not reallysshave TO
pay the 1913 cents. unless gold goes to a pre-
MUM. and gold will not 60 TO premium,
because tree coinage Will put silver to a par
with gold. IL the debtor is not fool he will
reply:
if free coinage will put silver TO par with
gold the creditor will not be hurt by making
silver u legal tender in payment OF his gold
contract
DO not be afraid. poor debtor SAYS our free
coinage friend Congress has the power ana
II gold goes to n premium after we pass our
bill we W pass another bill making provis-
ion for your relief.
And how long will that take? asks the
debtor. oh. a matter OF year or Two.
II the debtor lie merchant, in the mean
time his note will 60 TO a protest, and be wall
DO bankrupt. II farmer with mortgage
on his home, he will be sold out
INDEBTEDNESS OF THK COUNTRY.
1t is useless to try to close our ewes TO tho
fact that the indebtedness OF this country pri-
vato as well rs public. is uudergoing trans
formation; 1t Is gradually passing into the
form of Obligations payable in gold. The
transformation is not going on 80 rapidly in
the South "a in the North and West, nor 30
rapidly now as it will whenever capital be-
Geves that the cyclone of free coinage is near
at hand The creditors are trusting 10 MIR.
Harrison now TO veto the bill. but after the
free coinage bill passed the Senate last Janu-
AIRY. the transformation was greatly accelera-
ted. IL became quite "A usual thing to eguIre
the gold clause IN notes and bonds. A good
deal OF testimony WIS taken on this subject
last winter before the committee on coinage.
could nil your valuable columns with proof
of what say but will offer only few speci-
mems from the committees report.
TESTIMONY.
Mr.. William Endicott, OF Boston, president
OF one OF the largest savings banks in Nssss-
chusetts testified page co. that he would
lend money on note PAYABLE in gold at a
less rate OF interest than on one payable in
currency.
myself have been charged per cent. in