Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-08-18


of all values, could we, with all
the wealth, all the power. ali the
resources OF this grand and magnincent
country of ours sustain silver upon
that basis? I say we could not, because
there is 10 other commercial nation
ready to join US to-day in such a move
ment-because no other nation that
maintains any standing in the CONNER
cial marts of the world Is ready 10
rally to our support, to uphold our
hands In an event OF that character.
In 1916 England demonetized silver;
in 1871 Germany suspended the turtner
coinage of silver.
In 1873 France did likewise, ana
France was followed by the nations OF
the Latin Union, by Holland. Belgium,
Switzerland and Italy, and to-day the
same policy obtains in every civilized
nation on the continent Of Europe. Inc
consequence is there is no country IN
the world ready TO stand by and main
tain US in any such situation as Is asked
by our unlimited free silver friends.
But there is another reason, MI.
Speaker, why we cannot maintain IL as
a money metal, and that is that we are
borrowing nation. Why cannot we
maintain IL at l6 to l to-day? The hrst
reason of all Is that the United States
is a borrowing nation and has been Tor
hundred years past. And 1t IS estl-
mated that while the balance OF trade
has been against US for some years that
for the past year this balance OF trade
has been on our side and in our favor.
But that mot alone the question to be
considered when you take that matter
of balance into consideration. There Is
something else besides the
balance of trade that compels
annually the vast flow OF
American gold across the broad waters
of the Atlantic ocean. One hundred
millions are expended every year by
American tourists on the continent OF
Europe, all of it American gold. one
hundred millions more are expended
every year by American importers when
they pay the tax on the carrying trade,
nearly all OF which IS in the hands OF
England. These two great elements OF
Indebtedness have TO be met by this
country abroad with gold coin. In ad-
ditlon to that what else do you ind?
Several thousand millions Of dollars OF
foreign capital have been loaned In TINS
country. Why, in my own little state
of West Virginia ! know OF TWO rail-
roads alone that owe fourteen million
dollars OF gold in London, the money
mart Of the world, and six per cent In
terest in gold has to go there every
year to meet the obligations OF these
two roads. The Northern Pacific rail-
road is owned mainly by German
capital; the Reading by English cap.
ital, and the same is true OF
the Erie, 1t being owned by Eng
lish capital until to-day the
foreign investments in this country
have been so great, so numerous that
In is estimated that anywhere from
three to FIVE thousand millions OF dol
lars will be required to cover the invest
ments which have been made by for
eign capital within the limits OF this
country. Now, the interest on this
vast amount Of money has to go abroad
every year, and in gold, and that Is Tar
more in every respect than any balance
OF trade that may be in our favor. The
balance Of trade is thus really against
us. The annual settlements are largely
against US.
Mr.. Allen-If it would not interrupt
the gentleman 1 should like to make a
suggestion with his permission. Does
he think it well enough for US to adopt
policy that will enhance the values OF
these loans and take more Of our labor
and products to pay that four or five
billions Of dollars of which you speak?
Mr.. Pendleton-No, sir; | did not
say favored any such policy as that.
The policy 1 advocate will do nothing
OF the kind.
But, Mr.. Speaker, we not only have
that question to consider, that the bal
ance Of trade is really against US, that
for years to come this county has to
settle with Europe large balances, and
they have to be paid in gold In the
money of the civilized world (; but there
are other considerations that are equal
ly i'm portant. If we undertake to pay
that debt in silver bullion that we take
out of our mines and send across the
water for that purpose we are credited
with only IS cents on each dollar. Our
silver is not the dollar Of the world.
II we send it abroad all that
we can get for II Is its
commodity or merchandise value in the
markets OF Europe. We have to meet
that condition. We have TO be pre-
pared to face that crisis every year and
how can we do it if we adopt for our
selves in the first place one metal money
OF the civilized world and then adopt
for ourselves another metal money pc
culiar to ourselves alone. The drain
from abroad will come from what direc-
ton. Our balances will have to be paid
year by year in gold and gold alone un-
oil the entire gold circulation Of the
country has been absorbed and or has
evaporated.
But what has brought this crisis on
the people? Why is it that all through
the land capital has become timed, la
Dor doubtful, banks suspending, all
business Industries at standstill-
simply the want Of confidence and the
apprehension which has been engen-
dered in the public mind abroad In the
holders Of our securities, as TO our abili-
ty to pay these gold balances which we
have owed for years. When they fad
we are making this silver currency
money metal Id this country at ratio
of sixteen to one to answer the pur-
poses Of gold they will have none
of it, they don't want it, and because
while it may be worth a dollar here,
across the water IL is worth only fifty
eight cents. Therefore they are has
tening to call in their loans; they are
trying to get their investments at home
for they fear they may be compelled to
take one-half to two thirds of the
amount they have loaned here.
What has been the effect on Amerl
can capitalists? American capitalists