The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-07-16

Frsncis G. Newlands Explains al In
pOrtant Plank.

Francis G. Newlands called MI. H. H.
Hart, of California. to the chair and said:
Mr.. Chairman and gentlemen Of the con-
vention: When you did me the honor to
ask ME to preside over YOU deliberations,
you will reoollect that l stated that l per-
sonally preferred tho heat of the conflict
rather than the quiet Of a judicial position.
Since I have been discharging the duties of
this position, the numerous illusions which
have been made to me individually, as we'll
as to measures with which my name has
been identified. have prompted me at times
rather to abandon the paciic character Of
my position, and to enter into the heat and
contest of the arena. l feel that I am called
upon to defend the measure in which l be-
lieve, but I shall endeavor. so far az posi-
bic, to recollsct the position with which l
have bsed honored by the unanimous vote
Of this assembly. and to keep in view always
the judicial balance of the questions which
are presented here.
Now, gentlemen, what is the condition of
things with reference to silver? For you
will observe that the resolution which has
been presented calls for the action of the
silver states. Whilst we have the ommon
interest that belongs to the debtor and pro-
duoinQ classes of this country. and the
world, We also have this particular interest.
that the mining of silver constitutes the
predominating industry of the states to
which We belong. You will reoolleot that
in 1873 the value of the silver in the silver
dollar WAS three cents greater than the
value of the gold in the gold dollar. You
will rscollect that at that time the value OF
silver in this country was from $l.29 to
gradual decline of the value of that silver,
and the gradual decline Of the industries
with which you are identified.
What has been the cause of this? Simply
because the demand which had been Gre
ated by Law was withdrawn and that de-
mand was the demand of the government
for the free and unlimited use of all silver
az money. Now, We have hnu two remedial
measures, one the law of 1878. which pro-
vided for the coinage of from $40 600 to
8 1000, 600 per month. limited always how
ever, by the government to the minimum.
Then in 1888 We had an increase of the
coinage to 4, 500. 600 ouncesp per month, and
the Immediate effect WAS an increase in the
value. which was followed by decline. And
of late w have witnessed q decline unpre-
cedented in the history of silver-a decline
to less than 80 cents per ounce. If the pro-
ducers of silver will inquire into the cause
of this decline, they will find that it has
been created by The existence of a certain
SUI plus of silver resting in the New York
market. We can search throughout the
world, and we find no surplus of silver
elsewhere. All the silver Of the world is
either in the shape of foreign and domestic
coin, in the shape of that used IN the arts,
or in the shape of bullion; and the only
bullion We find is about 5000, 900 ounces
in the New York market; and that bullion
surplus is sometimes increased and some
times diminished a. the product Of the mine
varies.
Now, it is a familiar rule Of economic
science that the value Of the surplus of any
.- A--- Ah- 1- Az lI II
there ia a surplus of wheat i'll any country,
it will be found that tho price of that sur.
plus fixes the value of that product through
out the world. So that We find these few
million ouncss of silver determining the
market price. And what do VIC find as to
the market2 We find that the only buyers
of silver in the world are the government
tent of four and a half million ounces per
month, those h use silver in the arts, and
the use,s of silver Tor subsidiary coinage
ub.oad-India. China and South America.
md other nations that use silver. Now. we
find hat the market for silver is in Lon
don and in New York. There all the pur.
chases are made, and we find upon inquiry
that all these purchases are made BY q few
brokers' firms that conduct the business.
These brokers. engaged in business both in
New York ami in London, buying upon for
eiRn account, actually have tho power tc
fix the value Of the product. They stand
aside when the government of the United
States makes its enforced purchase of foul
and a half million ounces per month. The
amount put monthly upon the market il
about eleven or twelve millions. These
few brokers, after the government has Sc
cured its bullion at its own price. thel
divide up the balance between them. nuc
bid whatever they choose to bid and ther.
being no combination among the sellers
the buyers fix the price.
II you have q piece Of real estate to sell
and three proposed buyots present Thorn
selves ut the auction sale. and prior TO tn.
sale say "Well, now, WI each wRn this, bu'
we will each agree to take one.third." AMI
those are the only purchasers there, you
will agree with me that they can fix tn
prlce at whatever they choose. And 40 it il
with silver. The buyers Of silver, repre-
scented BY these three or four silver broker
in New York and London, are fixing tn,
price of your commodity.
Now, my friends, l ask how long, If thi
condition of things exists, even the presen
price of silver will stand. You have Wit
messed its gradual decline. You have wit
messed II decline within the past two years
Are you willing to wait for the decline 0
four years longer? And rccollcct that IL
president Of tho United States IL elected
who will veto the will Of tho people as OK
pressed by an act OF congress. you will hav,
TO wait our years before you oan right tn,
wrong. Applause.
What position have the partiOa taken /,