The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1892-02-12


trial this legislation will more favor
ably effect it. But the Increased volume
OF currency thus supplied for the use of
the people was needed. That beneficial
results upon trade and prices which have
followed this legislation, | think, must
be very clear to everyone, nor should it
be forgotten that for every dollar Of these
notes issued full dollar g worth OF sill
yer bullion is at the time deposited in
the treasury as security for its redemp-
ton.
Upon this subject, as upon the tariff,
nv Recommendation is that the existing
laws be given full trial. and that our
business be spared the distressing
influence which threats of radical
changes always impart. Under the
existing laws mentioned, 1t is IN the
power OF the treasury department to
maintain that essential con lItion OF ma
tional finance, as well as OF commercial
prosperity, the parity in use of the coin
dollars and their paper representatives.
The assurances that these powers would
be freely and unhesitatingty used have
done much to produce and sustain the
present favorable conditions.
| am still of the opinion that the free
coinage of silver, under the existing con-
ditions, would disastrously affect our
business interests at home and abroad.
We could not hope to maintain an equal
ity in the purchasing power OF the gold
and silver dollar in our own markets
and in foreign trade the stamp gives nc
added v.lue to the bullion contained in
coins. The producers Of the codDtry, and
it's farmers and aborers have the highest
interest that every dollar, paper or coin.
issGed by the government, shall be as
good as any other. II there is one less
valuable than another, its sure and con-
slant errand will be to pay them fo1
their toll and the crops. The money
lender will prot ct himself by stipulat
ing for payment in gold, hut the laborel
has never been able to do that.
To place business upon silver basis
would mean a sudden and severe con.
traction of the currency, and by the
witbdra val of gold and gold notes and
such an unsettling of all values as would
produce commercial panic. l cannot
believe that a people so strong and pros
porous as ours will promote such a
policy. The producers of silver are en-
titled to just consideration, but they
should not forget that the government
is now buying and putting out of the
market what is equivalent of the entire
more han they themselves thought of
cskiny few years ago. l believe it is
the earnest desire of great ma ajority OF
the people, as it is mine, that a full coin
us. shall be made of silver just as soon
as the cooperation of other nations can
be secured and a ratio fixed that will
give circulation equally to gold and
silver. The business of the world divides
the use o. both metals. but | do not see
anv prospect OF gain, bIt much of loss,
bv giving up the present system, in
which a full use is made of gold and a
large use of silver 'or one in which sill
yer alone will circulate Such an event
would be at once fatal to the further
progress of the silver agreement.
Bimetaism is the desired end, and
the true friends of silver will be careful
not to overrun the gold and bring in sill
yer monometalism, with its necessary
attendants, the loss of our gold to Eu-
rope and the relief of the press, and
therefore large currency. I have en-
deavored, by the use of official and un-
official agencies, to keep close observ
ance of the state of public sentimen:
in Europe upon this question, and
have not found it to be sucI
as to justify me in proposing ali
International conference. There is,
however, / am sure, growing senti
ment in Europe in favor of the large
use of silver, and 1 know of no more
effectual way of promoting this senti-
ment than v accommodating gold here.
A scarcity of gold in the European re-
serves will be the most persuasive argu-
ment for the use of silver.
The exports q gold to Europe, which
began in isruary last and continued
until the close OF July, aggregated owe
$70,000,000. The net loss of gold durin
the fiscal year was nearly GS,000,0 Q.
That no serious monetary diaturbanc,
resulted was most gratifying, and gave
to Europe fresh evidence OF the strength
and stability of our financial institu
tions. With the movement OF crops TIE
outflow of gold was speedily stopped
and return set in. Up to Decembe,
1st we had recovered of our gold loss al
the port of New York, $27, ,85i 900, anr'
it is confidently believed that during the
winter and spring this aggregate will be
steadily and largely increased. TIE
presence of large cash surplus in the
treasury has for many years been the
subject of much unfavorable criticism,
and has furnished an argument to those
who have desired to place The tariff upon
purely revenue basis. 1t was agreed
by all that the withdrawal from circula.
ton of so large an amount of money was
an embarrassment to the business of the
country, aad made necessary the inter
vention of the department at intervals
to re ieve threatened monetary panics
The surplus on March 1, 1889, was $685.
1927. 1870 30.
The policy of applying this surplus to
the redemption of the interest bearing
securities of the United States was
thought to be preferable to that of de-
posting it without interest in selected ma
tional banks. There have been redeemed
since date last mentioned of interest
5ea: ing securities $3.50, ,O79 350, resulting
in a reduction of the annual interest
charge OF 81 ,6S3, ,675. The money which
had been deposited in banks without in-
terest is being gradually withdrawn and
used in redemption of bonds. The re.
suit of this policy of the silver legislation
and of refunding the AZ per cent. bonds
has been large increase of the money
in circulation. at the date last named
the circulation was 81 ,4Q4 205, 1896, or
$23 03 per capita. while on the 1st day
of December, 1891, it had increased to