Audubon County Republican. [volume] (Audubon, Audubon Co., Iowa) 1885-1894, 1892-09-01

world.
For reasons well known, the primary
cause being its demonetization, silver on
the old ratios of sixteen, and fifteen and
one-half to one has steadily declined since
1873.
THE SILVER SOLUTION OF 1890.
Following Germany, all Europe has
ceased TO coin full legal tender silver We
have coined IL in this country by the pur-
chase of silver In specified limited quanti-
ties. coming the bullion purchased on gov
eminent account into full legal tender dol
lars, reserfing in the treasury the gain de-
rived from the purchaser Of bullion at its
diminished and diminishing market value /;
and in 1890 we provided for the purchase of
silver to the extent of 4,500, 900 ounces per
month, and the issuance of treasury notes
for it Mt the market price making them full
legal tender, except where otherwise speci-
fed in the contract, this latter only being a
declaration of the law as many times inter
preted by the supreme court under the
greenback law, which made the greenback,
a full legal tender for all debts, public and
private, except for duties on imports, and
for interest on the public debt. This clause
in the act of 1890 was drawn from the orig
inal Bland bill offered by him and which
passed the house in 1878. The law of 1890
provided for the purchase by the govern
ment of the full product of our own silver
mines, thus taking care of the product of
our own mines at the market value, and to
the extent of our purchases influencing and
strengthening a declining market, but hold
ing the bullion in the treasury without coin
ing, except so far as necessary for purposes
of redemption, and also, providing for Il
constant increase of currency or represent
alive money. This was not intended as q
permanent and final solution of the ques-
ton, but was temporary compromise of
conflicting views pending the establish
ment of n permanent National or intcrna-
tional policy and at the same time provide
a market for our own product.
GOLD STANDARD WITH CONVERTIBLE SILVER.
So that since 1879, although we have used
both gold and silver as full metallic money,
we have been upon the standard of gold
and have kept our silver up to that standard
because in government and other transac-
tions it has been always convertible into gold
But the law of 1890, in specified terms pleg-
ed the government to maintain all the sill
yer and all the gold, and all the paper
money at par in gold, and at par with each
other. This was Legislative declaration
of what has been done since 1880, and what
ought to be in the future This il can do
for some years to come, by maintaining a
supply of gold in such quantity as will in
sure confidence, that the exchange can
always be at the will of the holder.
FREE COINAGE IN MEXICO AND INDIA.
The government loses this power at once
when it opens its mints to silver, that may
be brought there, by any holder of silver
bullion and have IL converted into coin at
his pleasure which is free coinage, because
the government has lost its power to con
troll the total quantity of silver that may be
brought to the mint and coined and put in
circulation. France, Germany. and others
minor European states also, have, some
large, and others considerable quantities
of full legal tender silver In circulation
but like the United States, they make this
silver convertible into gold at the will of
the holder and they have wholly closed
their mints, except as to fractional coins.
Mexico and India, and some of other minor
countries still have their minis open to
free coinage of silver, and consequently
have the silver standard, which is now
more than 80 per cent below the gold stand
AID. In these countries gold does not cir
culate except at n premium. Anomalous
as 1t may seem, our silver dollar, or silver
certificate representing it, or our green
back brings a premium of more than 30 per
cent in Mexico. This is because we do not
have free coinage and are on a gold stand
ard.
Free coinage of silver would place us
with Mexico on the silver standard, and
gold would at once be at n premium aud
boarded more or less, and by gradual steps
go out of the country. Our people favor
the full use of both gold and silver. All
parties have so declared in their platforms
and they only represent public opinion, but
public opinion asks also that the parity
shall be preserved, that neither as money
shall be at discount or ut premium.
OTHER COUNTRIES ALSO DISTURBED.
Other nations like our own, are greatly
disturbed by the depreciation of silver. Its
commissions seriously agitate England,
France, Germany, Austria, Italy, and other
European states. India, with its silver
standard, has not only its own affairs great
ly disturbed. but England is seriously af-
fected in it's trade with this portion of the
pritish mira Tbasa nnput,lSinpS innraa a
with the continued depreciation of the
white metal, and the trade of the world is
disturbed by the situation. All CONNER
cial nations deplore it, and each is seek
ing to defend itself against the impending
trouble by outstanding gold. Thus IL seems
that the great banks of Europe are increas-
ing their reserves of gold, each distressing
the others, thereby Withdrawing from &C
tivity an unusual quantity of gold which
should be in circulation. The silver in use
is restricted in its free play in the ex-
changes and is retained in the country OF
it's coinage, because it's coined value great
ly exceeds its bullion value.
INTERNATIONAL CONCURRENCE THE SOLUTION,
There is a growing sentiment in Europe
for international concurrence on this sub
ject with view to the enlarged use of sill
yer. Several of the European states, like
ourselves, are friendly to silver, but can not
stand alone. Those who study the subject
have seen for years this difficulty increas
ing and have hoped for solution, but each
nation, acting selfshly, has been on the de
fensive.
The president, seeing these difficulties tc
the worlds commerce by the destruction Of
silver as money, early this year took the
initiative looking to conference of nations
on this subject. The nations of Europe, In
Guiding Great Britain, cordially responded
to this friendly suggestion and agreed to a
conference, which is soon to convene to
IL, "a pInI H,,st q
the enlarged use of silver by all the nations
and to the restoration of the parity between
silver and gold.
This is the situation to-day. What is the
remedy, you ask, so as to provide for the
full use of gold and silverl I know of no
other practical solution than to retraee the
steps which have led to the decline of sill,
yer. This retracing will restore silver to
its status before Germany and the Latin
nations deprecated il by closing their minis
to its free coinage, and to which deprecia-
ton we contributed our part by following in
their footsteps.
1t is for them and for us, by concurrent
action, TO reopen the minis to free coinage
With this done on an agreed ratio, the par
ity will be restored. Without this concur
rent action, this parity is impossible, as nc
one state can alone accomplish 1t. With
concurrent free coinage adopted by leading
European states, or any one of them with
u.s. the two metals will travel side by side
II this cannot be done, we will sooner OF
later be at the parting of the ways, anC
great disturbance and disaster are sure u
follow, whichever road is taken, and thest
troubles will not be to us alone, but will af
feet all Europe as we'll. No country car
stand such shocks as well as the United
States, and none will recover from il NOR,
quickly. Both metals in full use are neces
sary to the worlds commerce and sooner
or later will be used.
QUESTION OF CHEAP MONEY.
THE COUNTRY WANTS NEITHER CHEAP NOR DEAL
MONEY, But STABLE.
There has been cry for cheap money o
late, and various devices have been sug