Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1893-09-08
Some Of the Causes.

spoke as follows;
He said that the immediate question
before the Senate was whether or not the
United States would suspend the purchase
of silver bullion under the act Of July, leSV.
1t was to decide that question that the
President had called Congress together IN
special session. If that were the only
reason for the extraordinary session II
would seem to him insufficient. The mere
addition of is, ,000, 600 ounces Of silver to
The mass OF silver in the Treasury and the
addition of 40, o00, 900 Treasury notes to
the thousand millions outstanding would
hardly Justify the call. The call was Justl-
fed, however, by the existing financial
stringency, growing out of the fear that
the United States would open its Hnints to
the free coinage Of silver. This was the
real issue. The gravity of it could not be
stated in words. If the single standard OF
gold were had, without the aid of the sll-
yer. the relations between capital and la
bor would be disturbed, the industries OF
the country crippled, and the value OF sil-
yer still further reduced. On the otner
hand, if the purchase of54, ,000,o 900 ounces
of silver per year were continued the
United States would be eventually brought
to single standard Of silver.
On one thing Congress and the country
agreed. That was that these two extreme
conditions should be avoided, and that
both gold and silver should be continued
in use as money, as measures OF value
Monometallism, pure and simple, had
never gained foothold in the United
States. The free coinage Of silver meant a
single stanard Of silver. 1t meant reduc-
ton of the wages oflabor-not in the num-
Der of dollars, but in the quantity of bread
and meat and other necessaries OF life that
1t would purchase. 1t the reputation
of a portion of all debts, public and and
private. 1t meant a bounty to all the
banks and savings institutions and trus'
comnauies. The problem which Senators
had to solve was how TO procure the
largest use Of gold and silver without de-
monetizing either.
Mr.. Sherman went on to give history
of the circumstances which led up to the
passage of the act of July 1890 1t was
far better law, he said, than the bill which
the House had then passed, or the Dill
which the Sen ate had passed. Senators
who criticized it ought to remember that
II was subst itute for a bill OF the House
and for bill Of the Senate, either OF
which would have been more dangerous IN
its results than the law Of 1890 was. The
President Of the United States was not JUS
tilted in ascribing to that law the present
financial stringency. If the Preident had
taken broader view of the cause OF the
stringency it would have been easy ior
him to explain it. There wa among the
nations of the world one great creditor ma
ton which held American bonds and se-
curities in various forms TO the amount of
thousands of millions. 1t was country
which had not been invaded by foreign
| foe for 500 years. Its insulsr position
was its safety. 1t was q nation OF intelii-
gent people, which commanded the con-
merce of the world and whose flag foated
on every sea. Anne ricans should not Dc
ashamed Of that people; should not hate
or dislike them, because Americans were
their children and possessed very muen OF
the qualities Of the parent stock. England
was the great creditor; but England in its
vast enterprises, had become involved IN
difficulties since the passage OF tne act
of 1890. 1t had investments amounting 70
hundreds of millions in the Argentine Con-
federation. By some sudden collapse in
those investments the great banking house
Of the Barings was topping TO its fall
when the bank Of England and the other
banking houses came to it's rescue and OBJ
tanned money from France and other cou n
| tries Of Europe. The immediate result oi
| that was that the American securities were
sent home for sale; and their proceeds IN
gold were shipped back to pay the losses oi
Great Britain in the Argentine Confeder-
alton. The United States was great and
rich and powerful country; but it was
new country Its wealth was not in gold
and silver, not even in bonds and mort
cages to be sold abroad Its wealth was
| in its mines, it's farms, its wo orkships It's
railroads. These were its sources ofwealth,
| but these were also its danger, because
| they could not be developed without going
| into debt; and that debt might be demand
| ed any time, and would have to DO paid IN
| gold or silver or something else.
Following the Argentine trouble the fail
ures Of the Australian banks came; and the
same process Of sending American securl-
| ties for sale went on, with the same result.
Gold was withdrawn from the United
| States. Other causes had combined to pro-
duce the existing trouble. At the time that
those experiences were going on, Austria,
| Hungary, Roumania and several other
countries In Europe were changing from
paper and silver standard to gold stand-
ard. They had made demands for gold
through English bankers; and the later had
had TO sell American securities in order
to get the gold.
There has been still another trouble. For
the first time in many years the balance Of
trade had been turned against the United
States last year Hitherto the balance had
been in favor Of the United States TO the
amount Of $50, 900, 900, 800, 900, 900 and
sometimes 5000, 900, 900. The last fiscal
year the balance Of trade was against tine
| United States TO the amount Of s15, 49,, 900.
Whether II would be 20 next year no one
could tell. He believed that with the
crops now ripening the balance Of trade
would probably be in favor Of the United
States this year; and he believed that the
forced economy which always followed O
panic would be, Of itself, protection
against dnusual ard unnecessary imports
SO he hoped that next year there would be
no difficulty in the matter ot alancc oi
trade.
IL seemed 10 him that the President oi
the United States, with his broad concep
tion Of public affairs, should have stated
that the existing depression did not arise
from the purchase OF $4,000 900 ounces o
silver bullion per month; but that IL hal
come from causes as apparent az the sky,
az broad as the hrmanent ~ open To the
eye Of every man as the sun or the moon
The erroneous idea had been created in the
public mind that that small measure (ths
act Of T590) had produced results with
which 1t had no connection.
But neyertheless, the situation was on
the country, and Congress had got TO dea
with that situation, not with the act o.
1890 Something had been said by the
Senator from Colorado Mr.. Teller about