The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-03-09

Clates proposes 10 pay tue gOlu price
for those millions of silver which, in
circulation, have lost more than 80 per
cent. of their purchasing power COM
pared with gold. and to turn these mill
ions of practically idle silver in bank
vaults into useful and much-needed
gold, is it lot absurd to assume that the
bulk of that silver will not DO dumped
into our mints and the leRaI-tender
notes received for it exchanged for gold,
even if there should be a slight dis
countf
While it is possible that free coinage
or the wholesale purchase of silver by
the United States will temporarily raise
the price of silver to S1.29 an ounce in
gold, no tinancier in Europe, not even
the most ardent champions of bimetal-
lism, expect to see that price main
tanned. but. on the contrary, they pre-
dict its gradual decline, SO that the more
silver declines in the markets of the
world the greater will be its momentum
toward country which has gold as well
as silver, and in which the highest price
is paid for silver bullion that is offered
in the world. Indeed, every champion
of silver and bimetallism in Europe, like
Henri Cernuschi, maintains that true
bimetallism, the free coinage and inter-
change of both metals as money, can
only be secured by general international
action.
European countries are now strongly
tending toward the gold standard and
are seeking gold and holding it with the
avidity of misers. During the six
months ending last January our ex-
ports of merchandise exceeded our i'm
ports by S155.OO0, 900, but Europe sent us
S30, 1000, 900 of gold in settlement of the
balance due US, preferring to part with
valuable American securities rather
than diminish its stock of gold. The
reason which leads commercial nations
to hoard gold and to cling to the gold
basis is that all international exchanges,
even those of sllver-standard countries,
are settled by comparison with the En-
glish gold pound sterling. In those
countries in which the silver standard
is observed in domestic trade, all for
eign commerce and the values of all
articles produced in all countries in such
traffic, are measured by comparison with
the English pound. Therefore all
foreign trade are tending to tho gold
standard and boarding that metal.
Mr.. Leech calls attention to the fact
that the great mass of silver five-franc
pieces held by the Bank of France are
so held that the debtor states of the
Latin Union, like Italy and Belgium,
must redeem them in gold at the end of
any year. AS those governments could
not raise the gold without financial dis
turbance, and as. they will not circulate,
tho moment that any thing like S1.29 per
ounce in gold can be obtained for that
silver that stock of ive-franc pieces
would be sent where such a price could
be realized. Thus Mr.. Leech proceeds
to note the situation Of silver in nearly
every foreign country, and then arrives
at the following conclusions:
If our minis should be open to the free
coinage of sllv or, under existing cOnd ItiODs,
the stocks Of silver would move to this
country solely because they could be con-
verted, at the highest price. into our legal
tender money. which would In turn be con-
verted into gold at par; but the moment
our currency reached a silver basis, when
our legaLtender paper money could only be
exchanged for silver dollars. the profit to
the foreign silver owner would cease, and
silver would lie imported then only as an
exchange matter, just as gold is now.
"What would wo GAIN" Mr.. Leech
asks, elf we should exchange our stock
of gold for stock Of silver9" The
question is worthy of serious cOnsidera-
ton. particularly by those who have
been led to believe that tho average
man who has no silver bullion to sell,
will, in some unaccountable way, be
benefited by the free coinage of silver.
| The silver dollar circulates here now,
the equal of gold, because it is carried
| on the back of gold, is redeemable in
gold, and its coinage, always limited.
is now practically stopped; but put
| it on its own merits, the silver dollar
worth in the markets of the world as
bullion less than rs cents and the gold
| dollar worth 100 cents in the worlds
market place--that is, pass the free
| coinage billiard what will happenf
Zone of two things" says the Director
| of the MINIS. who is a bimetailist, Twill
most certainly occur: either our gold
will go to premium and be withdrawn
| from circulation, or it will go abroad to
pay for the silver which will be shipped
here for sale. In either event we shall
reach a silver basis" The capitalists
who have money to engage in the spec
ulation, the holders of silver bullion ard
owners of silver mines would make mill
ions, and the United States would take
its place with India and China, and
| other silver standard nations. The
country will have no more money, but
every dollar will be clipped coin in
the markets of the world
|
| THE readers of Indiana Democratic
papers can but notice that Isaac Pusey
Gray is getting nearly all the delegates