Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1892-02-09
FREE COINAGE.
Mr.. NewlandS Speaks before House
Committee ON Silver Question.


WAsuisoros, Feb s.-Frsncis q. Now
lands today addressed the House committee
on coinsge, weights and measures, on the
international monetary cor ference phase
of the silver question opposing the propc-
sitiop The United States he said, ignor-
sntly hut ffecnvsly, was the first nation 10
strike down silver by the act of 1873, deny
ms it coinsse and depriving il Of its legal
tender quality.
The resGlt Of this action WAS that the
German demonetIztd d silver q few months
! afterwards, and lster the countries Of the
Latin Union. finding Germany was throw
ing her silver into their minis, stopped the
silver coinage. The tnancsl depression
between 1873 and 1873. following the silver
demonsrs ion, resulted in the Bland Allison
act, full of restoring silver as legal tender
money and partially restoring its coinsge
qnsd,y.
Two International conferences have bscn
held aince then resulting ia nothing The
PRECEDENT in his iast annual message said he
found no chsUge in the Euronean sen linen
on the silver question. Mr.. NewIands
showed Why the Upited States should Adcp,
free silver cuinsge nov, and why nothing
tuuiu be fhptCpb VI Fsutbpt,
God nstious. he said, were ths creditor
nstoDs. These nations needed little devel
opment, and their sccumuistions were in.
ves,od in the development Of other coun,
tries. II gss to their interest to make
money valuable. The easiest way TO do so
Was by tormings gold trust to PREVENT the
future tliyer coinsse and destroy the legal
tender OF silver money.
Cola ia haipy liru,r IahaJ H., ~.
the demands OF arts ard dentistry, ard il
Vas he a that the store of gold coin was
heiug invaded 10 meet those demands. The
annual production OF silver is increasing
slightly. This nation has utilized all she
money it could borrow, and owed to Eu-
rope. in national. state, municipal snd rail-
way debts mpr. Ih,n the entire volume of
money existing in this country.
Whenever anything occurred IN Europe
which frightened their money market they
called on us 10 buy our GblgstioGs. Ser-
eng y-Hve millions ot American securli lee
were sold here within six months after the
bsrua's trouble and $4,000 600 in gold
WAS witndrawn thereby from the Unted
States.
A wave ~ CnDtroclion swept across ihe
country ara hsd E1g,sud been compelled
to call for pcra money the probable result
woui have hseu universal banhruptcy
fhe pa ions OF Europe could call on Us Al
ary 'ime for money AID take every dollar
Of monej GU, Of the courtry. The question
was whether W. should borrow money tn
psy the European obligations or make ii by
placing fiiveT on its old standard.
As 10 the assertion that in case of free
| coirsge al the silver OF Europe would be-
dumped on us, Mr.. Ner lands ssid all the
foreign eilyer was us,d IN the e untfies
where it was held at 81 33 or 81 81. being
! needed ior domestic puspo-es and it was
unreasonable to tupplpe it would be s,nt
here for 81 20. Az Ire eilver the Uuiied
States reed take care of under free coinsgs.
was tust mined
Free coinage would increase its bul ion
value to 81 20, ard also diminish to some
extent the purchasing p0wer OF gold.
Williams of Massachusetts asked il il was
that sllvcr ~ss worth ~ 33 in any oou1try
outside ihat country in which it is coined /?
Neulsfds could not sNy.
Willisms atk'd whether apy country
would take Rnotner's silver coin at par.
Newlsnds sHid; ma, portion OF the
world silver in the shape of C1in i4 worth
! today aud e1ghapgesbie in countries in
winch j. is held from 81 90 to 81 33
Wl'liams-ls that true in India, can You
there p1cbange fer 81 30 in gold an ounce
Of silveIi
Nevlsnds-YGu are getting bpck TO silver
bullion. In India siiver rapee has same
purchstirg power it sl-ays had,
Wiilis0s-Csn you 10 London get one
cent more for rupee than you can Tor
bullion in il.
Ne1lsnds said you conld not in Lonlon,
but in India rupee would buy as much Of
the products in that country as ever.
Wiilisms-Iisve you not heard Of almost
universal complaints Of the decline OF silver
III ludiai
Nanlands admitted that he had heard Of
compit It's there, and to further the question
said vhel India bad 10 exchange her silver
TOR gold it would cost her more than
formerly.
WiiIisms-fo what extent has silver
standard has in jured her?
Newlsnds-ko, sr; | will not admit
that. think India has righ. to complain
Of the demon eliz,uo1 OF silver, because
when che pays gland she has to turn
her colo into bullion at io.s. In
In domestic rAnssC,iors, which compose
the Rrest bulk OF trsrsactions, silver has
the same purchasing power it always has,
aud think the use Of silver has been u
great blessing instead Of = curse to her, for
othetSlse there would have been great
scarcity OF money.
sHd--fs ii not a fact that not only the
rupee in lldis, but silver ,hs world over,
viii purchase a. much commodi,is. ss ever,
ard more than at any time since 1873?
Ne = ~iands-Sistislic icigus claim that And
think prove it. The depreciation has
oeen IN its vslus AZ measured Ia gold.
Eevlauds said The bullion value Of silver N
terms Of god is reduced by siiver's demone-
iizssion and so fsr az silver using country
has debtor relation to gold using country,
KS compelled to pay that debt at loss.
WilIisms-Then lgdia in your judgment
has continued to uss silver alone in its
ovD domestic bus ness without loss, where
IS the moment 1t goes outside its own
noundries sod pIrChtsss anything, i,s ru-
pee Is worth no more than iis bullion
value.
Ns~lsnds-Thajs true, bu. the inter-
national bsiabcss uhicb alone would be
settled ara Dot great.
Bland said they Wers settled products.
WIi'isms asked if Senator Teller hal not
advocated an International conference be
csuse he was satisfied thst no free collage
bill could become la~ Al this session
siso asking If the silver problem wonld no,
become much easier II the international
agreement could be resohsd,
EeNlands admitted ths, it wobll create
more public confidence in free coinage, and
that confidence vas very important eie-
ment in the sisns,ion. He further
admitted there had been great revolution
in recent yesrs in the moast tsry system Of
the ~ofi9 and that Il vas great deal more
novel in tbs conditions prevaili z at present.
The Senate ia executive ssssion today
confirmed the folio-ing nominations:
Poarnssters, Maine, r. M. Stacy, Oak
~nd; G. +. Warren, Kennebunk.