The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-11-09
SEATTLE. MONDAY, NoT. 9.



other column. It will be noticed that Mr..
Willard, who is a Republican, takes the
conservative ground that the present silver
act of July IA, 1890, ought to be modified
so as to suspend the further purchase OF
silver and any additional coinage until an
international agreement is arrived at be-
tween the United States and other COM
mercial nations of the world.
This Is also the view of Carl Schurz and
Abram T. Hewitt, who represent the opin-
ions of the leading anti-free silver coinage
Democracy of New York and New England.
These views of Mr.. Willard are identical with
those expressed by Charles 8. Smith, pres
ident of the New York Chamber of Com
merce, in the current number Of the North
american Reuiew. Mr.. Smith says on this
point:
Our excessive silver coinage is the one dark,
ominous shadow which projects itself over the
country. plainly indicating disaster. II this
danger could be eliminated by the common
sense of the people operating upon congress,
there is no question that an era OF permanent
prosperity would open before the nation. The
wise remarks of the president at Albany indi-
cate that there is no prospect OF free silver coin
age during the present administration; but the
introduction of free coinage of silver is not the
only thing necessary to cause the withdrawal OF
gold q circulating medium. The monthly
purchase OF 4,5O0,O00 ounces of silver bullion,
with its attendant issue OF treasury notes, will,
in my opinion, inevitably produce this result
1t is highly probable that gold would have sold
at premium before Christmas of this year had
1t not been for our large crops and the univer-
sally short crop of cereals in Europe.
Mr.. Smith points out that within the
past four months, before our present crops
were assured, while money was loaned
at ~ per cent. in Wall street on six
months credit and payable at maturity
in gold, the currency rate was at the
same time per cent. The same situation
will be repeated when we have short
crops here with abundant harvests in
Europe. Then prudent loaners Of money,
such as savings banks and trust COM
panies. viii necessarily insert gold clauses
in their mortgages for self-protection.
Replying to the question, 'When will
gold sell at premium under the existing
state of things2" Mr.. Smith says that
"gold will be withdrawn from circula-
ton and the boarding of this metal
commence whenever the time arrives
that importers and foreign bankers
believe that ii Is probable in the near
future that a check drawn upon bank in
New York will not be received in payment
of bill of exchange drawn on London"
When this time arrives all prudent men
engaged in foreign trade will convert their
deposits into gold and gold will go to
premium. The moment a premium on
gold was in prospect the large banks and
bankers of Europe who have hitherto left
large cash balances in the hands of their
agents in this country because of our
higher rates for money would withdraw all
floating capital of this kind, unless prom
ises to pay in gold were entered into on
part of American dealers in foreign ex-
change.
Mr.. Smith admits that the secretary Of
the treasury has the power and discretion
by act of congress to sell bonds for the
purpose of maintaining the present parity
of gold and silver; and he believes that he
is ready to use his power for that purpose
to its fullest extent, but he thinks that the
present Democratic congress would not
long hesitate to deprive the secretary of
this power and discretion. Mr.. Smith, re-
ferring to the demand for more currency
and the fallacious idea that increased cur
rency and free coinage of silver will give
additional capital to those who are at
present without accumulated savings of
their own, says:
Was there ever a more absurd proposition sub
mitted to an intelligent peoplef Money flows
By q natural law to the money centers, or where
there is concentrated capital. What our free
coinage friends need is increased earnings,
and not more currency and silver coins. The
treasury department and the banks OF New York
will be glad to send them all the eighty-cent
silver dollars and all the national bank notes
and silver bills they can pay for, provided only
that the express charges are borne by the re-
ceivers II must be admitted, however, that the
Eastern banks are very reluctant to part with
their gold reserves. as every bank manager
knows
Mr. Willard testifes that millions of
money In New York seek absolutely safe
investment at per cent in dread of the
risk Of loans which might be paid in de-
preciated silver: that the books of leading
trust companies for several months show
deposits amounting to $4,000, 900, which
draw only and 5 per cent. interest.
These depositors could buy bonds of per-
fectly solvent corporations bearing and 6
per cent. interest for less than par; bnt
they might lose 25 per cent Of their money
BY payment Of those bonds in silver.
The financial outlook as sketched by
Mr.. Willard and the President of the New
York Chamber of Commerce Is not pleas
ant to contemplate. but it Is one which
the Democracy in congress. with the aid
of few Republican silverites in ths
United States Senate. have created. The
act of July Il, 1880, was accepted BY the
snti-free silver coinage Republicans on
the advice OF John Sherman as q compro-
mise; rs a breskwater against the threat
ened ilooi of free silver.
The Brooklyn Eagle. an able Demo-
cratic paper. recently admitted that John
Sherman did not deserve denunciation.
but commentator for this compromise;
that he was simply sparring for wind
against the free silver coinage men.