The record-union., 1892-02-06

"
they advocate. The press follows the
banks and the merchants. The Treasury
department, through the banking fra
ternlty, receives orders from London,
which IL seldom disobeys. The people OF
the United States, who owe thousands of
millions to European investors, are the
victims. While dear money and cheap
property are disastrous to the producers it
is golden harvest for their creditors. I
regret that the Secretary of the Treasury
feelS called upon at any time TO visit New
ork or take orders in any form from the
agents of foreign investors. 1 would
nke to see him independent, acting in
the interest OF the people of the United
States, as the Bank of France acts for
France, the Bank of Berlin for Germany,
or the Bank OF England for Great Britain.
THE MODE OF MANIPULATION
Adopted by these two classes to depress
the price OF silver is novel. India is re-
CURED to pay annually, at the Bank of
England, SS0,000,000 Tor interest on her
public debt. This interest is collected by
the issuance of council bills by the Bank
OF England, which are drafts on India
payable IN silver rupees. 1t must be re-
inemoered that they are payable in India;
nowhere else. These bills are sold on the
market TO the highest bidder and bought
py persons who wish to make remit
tances to India for cotton, jute, wheat or
any other commodity. In the ordinary
course OF business about 81, 500, 600 of these
bllls are sold each week. But in case it
suits the convenience of spectators in
Indian products and of investors in
bonds to depress the price of silver, it is
only necessary to sell more council bills
than the market requires. If million
or two of them beyond the requirements
OF the market for remittance are sold,
their price goes down, and with it the
nf Gil Il IL.
bills are orders for silver. When silver
went to 81 2l an ounce it was the boast of
the financial manager for India that he
sold council bills several weeks in ad-
vance and broke the market for silver
By this method the Bank of England is
enabled to sell silver 'Short' without the
necessity Of filling its shorts; because
these bills are payable only in India, and
II more OF them are sold than are required
Tor remittance to that country they must
decline IN the market. Why should we
be subject to this manipulation There
have been
NO MORE GOLD AND SILVER PRODUCED
Since 1850 than were required for none
tary purposes. From 1910 to 1850 the an
nual supply of gold and silver of the
world did not exceed $40. COO, 900. There
was sudden increase after the discovery
OF gold in California. In 1851 the worlds
OF gold IN Australia increased the annual
output to nearly SlS0.0O0,000. This won
derful addition to the supply OF the pre-
clous metals was not a disaster, but
blessing. From that time onward the
combined product of the two metals has
been constant, with a gradual increase,
until now the worlds annual output of
gold and silver has reached about $780,
000,0O0. The supply Of gold and silver, il
both metals had been used as money,
would have been sufficient to keep pace
with the Increase OF population and bus
iness, and would have furnished a basis
for circulation and credit that would have
continued the prosperity which was in
augurated by the wonderful discoveries
IN California and Australia in 1913 and
1857. But the rejection Of silver has prac-
tlcally cut off the supply of the precious
metals for the creation of new money. A
money famine has been inaugurated, not
by the exhaustion Of the mines, but by
the eXploiters in money to Cratify the
avarlcc OF spectators and bondholders
The objector says that free coinage in
this country
WOULD FLOOD THE UNITED STATES
With the silver of the world. This asser-
ton Is made without the slightest evI-
dence. In the first place, there has been
no silver produced to create an oyersup-
ply. On the contrary, the production of
the two metals has been barely sufficient
for monetary purposes. Previous to 1890
the entire product of the silver of the
world was annually consumed. The
first accumulation of bullion which oc-
Cured after the decentralization of silver
was the small amount bought in New
\ ork on speculation in anticipation of
rise IN price on account of Congressional
legislation.
That amount has nearly all disappeared
q n r.
are left. Under the present law we buy
twice as much silver as we did under the
Bland Act. The Asiatic demand has
faIlen OF on account of poor crops in that
country, and by reason of the manipula-
ton of the middlemen by the use of
council bills and other devices to depress
the price. No silver can return from
Asia. The exports from that country ex-
ceed the imports, and there is no occasion
for it TO part with either silver or gold,
The only cheap silver in the world is
the three or four millions in this country
in the shape of bullion. Every country
in the world, except Mexico, puts more
silver IN its legal-tender silver money
than we do; that is, they put more silver
in their silver coin in proportion to gold
than is contained in the standard dollar.
1t is alleged that Europe would send her
silver here
IN CASE OF FREE COINAGE.
The entire amount of silver coin in
Europe does not exceed SIl00, ,OO0. 600
and over 100000, 900 of that amount are in
France. No other country of Europe
could spare any; they are already de-
ficient in their silver. Germany stopped
selling silver fifteen years ago on account
of the clamor of the people, and has since
kept all the silver she then had. France
certainly will not sell her silver. because
If she desired to do so she already has the
privilege of disposing of over 60O. .O0O, 900
francs of the coin of Italy, Greece, Bel
gium and Switzerland, which she has in
her possession She has the right to COM
pei those countries to take these 600, ,O0O,-
900 francs and pay in gold at the rate of
81 SO an ounce.
But she does not do it. The reason as
signed by her financiers for not selling
her foreign silver coin is that it would
degrade and depreciate silver, which is
largely held by the people, destroy conf
dence and produce financial disorder If.
then, she would not sell her silver in
Europe for 81 80 an ounce, is it probable
that she would ship it to the United States.
III case OF free coinage, and sell it to us at
81. 1929?
Another objection urged against free
coinage IS the erroneous assumption that
1t would give the silver miners more than
the market value for their product.
The discovery and development of the
gold and silver mines OF the West
furnished the basis for credit which made
it possible to prosecute the war and pre-
serve the Union. Mining for the precious
metals laid the foundation for all the
States and Territories west of Kansas.
furnished employment to hundreds of
thousand of industrious citizens, pro-
vided a market for the commodities of all
the States. contributed largely to
THE REVENUES OF THE GovEPNurorr
By the consumption Of foreign products
paying heavy duties, bound the two
oceans by several continental railroads,