Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1893-07-27
PARITY OF SILVER AND GOLD.

At the late meeting of the New York
chamber of commerce, Banker Clafin
was chosen by the Wall street institu-
tons to present their views on the hnan.
cial situation. And in reply to HIM Mr.
St. John, president of the Mercantile
National Bank, and about the only con-
sistant fnancier on the street, showed
up the Wall street calamity howlers in
effectual shape, and argued that it was
not impossible to maintain large VOL
ume of silver on a parity with gold.
During the course of his remarks, he
said:
''My friend has instanced against us
the experience of the Bank of France.
We thank him for the object lesson
which of all others we would use He
remarks upon the large increase of the
| gold reserves of that bank during the
last year. Please note that it is to BIZ
metallic France that the natural flow
of gold is most commonly observed.
France has in circulation upwards of
| $500, 900, 900 of legal tender silver, her
coin valuing it at SI.33 per ounce.
The Bank of France has $3.50, 90, 900
| of this silver coin as a share of her
reserve against $500, 600, 900 of out
standing legal tender notes. She exer-
cises her opinion freely to redeem
these notes in silver.
''Our policy instead has been to per-
NIT the note holder to determine the
coin in which our notes shall be re-
deemeed. This is the mal-administra-
ton put upon the so-called Sherman
law. The secretary who first admins
tered the act gave provision of the
statute this Interpretation. The inter-
probation governs his successor.
1.-The Bank of France, however, oc-
casions no alarm on the Bourse of
France by her every day election to
redeem in gold or silver at the banks
convenience. Her notes are never at
discount, but in February last COM
manded a premium over gold. The
bank can at any time give them pre-
MUM value over gold by redeeming
temporarily in gold only and holding
on to every single note that comes in
The popular demand for the convent
ence of paper money In France would
soon put upon these notes premium
over gold, even her bankers ignoring
the fact that at any moment she may
exercise her option to redeem In silver.
Verify we may learn of France. Let
US remember that her population is
showing no increase, while the pobula-
ton of the United States is increasing
at the rate of nearly 1000, 600 a year,
or 1000, 900 in ten years, and occu-
pying territory seventeen times the
area of France.
''As to restoration of public conf
dence by the substitution of bank notes
for legal tender notes of the United
States. please note an everyday expe-
rience of this week as to the combined
banks of Philadelphia, otherwise called
their loan certificates, and note how
these banks themselves value these
very best of bank notes In comparison
with these same despised issues of the
United States created automatically by
the Sherman bill. Banks in Philadel-
Phia are paying S. per $1,000 for
drafts on New York, paying for same
with their loan certificates rather than
part with the United States notes to
ship TO New York in settlement at a
cost of twenty-five cents per 81,
this preference of theirs for United
States notes over their own combined
bank notes amounting to forty times
the cost of a shipment to New York.
"But we are asked to abandon silver
temporarily in order that the United
States may enter the scramble for gold
as the means to bring England to the
aid of international bi-metalism. Mr..
Higgins has answered for US by instanc-
ing the cost and pains of our period of
preparation for specie payments, 1876
to 1877 especially. Mr.. Clahin, ignor-
ing these dates, substitutes the period
after specie payments had been achiev-
ed, instancing the prosperity of the
United States during 1879 to 1883.
Well, we adopt this instance of pros
perity to remind you that the Bland act
was then in operation, continually at
tackled by resolutions from this cham
Der, and increased the volume of our
silver money by SIIo, 900, 900 during
this period, az the same time that the
United States, in spite of the increase
of silver, gained also 5000, 600, 600 of
gold. Such occasion for prosperity is
an instance which we ike to USE Also
) We think prosperity a better example
and more enticing and inviting to fol-
lowers than adversely which we bring
upon ourselves for the sake of any suf-
fering it may cause our neighbor. -