Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-08-10

y,
posed to be fixed are fast becoming con-
jectural and loss and failure have involved |
every branch of business.
oHARGEABLE TO SILVER LEGISLATION.
| believe these things are principally |
chargeable TO Congressional legislation
touching the purchase and coinage of
silver by the general government.
This legislation is embodied in statute
passed on the 14th day of July. 1880, which
was the elimination of much agitation on
the subject involved, and which may be
considered truce, after long struggle,
between the advocates of free silver coin
age and those intending to be more con-
seryative.
EVIL EFFECTS AccUMULATING.
Undoubtedly the money purchases by
the government OF 100000 ounces of
silver, enforced under that statute, were
regarded by those interested in silver pro-
duction as a certain guaranty of its in
crease in price. The result. however has
been entirely different for Immediately
following spasmodic and slight rise, the
price of silver began to fall after the pas
sage of the act and has since reached the
lowest point ever known. This disap-
pointing result has led to renewed and per-
sistent effort in the direction of free silver
coinage. Meanwhile, not only are the
evil effects of the operation of the present
LAW COApbdhtly NllC lC-
suit to which its execution must inevitably
lead is becoming palpable to all who give
the least heed to financial subjects.
This law provides that i'll payment for
the 4, 100000 ounces of silver bullion which
the Secretary of the Treasury Is com
manded to purchase monthly, there shall
be issued treasury notes redeemable on
demand in gold or silver coin, at the dis
cretion OF the Secretary of the Treasury,
and that said notes may be reissued. 1t is,
| however, declared in the act to be the
established policy of the United States to
maintain the two metals on parity with
each other upon the present legal ratio, or
| such ratio as may be provided by law"
| This declaration SO controls the action OF
the Secretary of the Treasury as to pre-
vent his exercising the discretion nom
| inally vested in him, if by such action the
| parity between gold and silver may be dis
tirbed. Manifestly a refusal by the Secre-
tary to pay these treasury notes in gold, if
/ demanded, would necessarily result in
their discredit and depreciation, as obliga-
tions payable only in silver would destroy
the parity between the two metals by
establishing discrimination in favor of
gold.
EHcRoAcHING ON THE GOLD RESERVE.
| Up to the fifteenth day of July, 1898,
these notes had been issued in payment of
silver bullion purchases to the amount of
more that Sl47 600 900. While all but a very
small quantity of this bullion remains un-
coined and without usefulness in the treas
| ury, many OF the notes given in its pur-
chase have been paid in gold. This is Illus
trated by the statement that between the
1st day of May, 1892 and the 18th day of
July, 1888 the notes of this kind issued in
payment for silver bullion amounted to u
little more than S54, 100000, and that dur
ing that same period about S4g, ,000,0OC
~. f,,r f,,r-f 4,
redemption of such notes. The policy neces
sarily adopted of paying these notes in
gold has not spared the gold reserve oil
$100,000,0 900, long ago set aside by the gov
ernment for redemption of other notes, fol
this fund has already been subjected to the
payment of new obligations amounting tc
about $150, ,000 OH account of silyel
purchases, and has as a consequence fol
the first time since its creation been en-
croached upon.
HELPED OTHER NATIONS TO OUR GOLD.
We have thus made tile depletion of oui
gold easy and have tempted other ano
more appreciative nations to add it to theil
stock. That the opportunity We have of
! fered has not been neglected is shown BY
the large amounts of gold which hav,
been recently drawn from our treasury
and exported to increase the financial
strength of foreign nations. The excess o
exports of gold over its imports for the yea
ended June 30th, 1898, amounted to NOR,
than eighty-seven and a half million of dol
, lars. Between the list day of July, 1890, am
the 18th day of July, 1898. the gold coin an'
bullion in our treasury decreased NOR
,, than Sl32, ,000, 900, while during the sam
period the silver coin and bullion In th
treasury increased more than Sl47,000,0 ,00C
Unless government bonds are to be con
stantly issued and sold to replenish our ex
hausted gold, only to be again exhausted
) it is apparent that the operation of tn
l Silver Purchase law, now in force, leads il
e the direction of the entire substitution o
: silver for the gold in the government
: treasury, and that this must Be followe
i by the payment of oil government obligs
tions in deprecated silver
9 GOLD AND SILVER MUST PART.
q At this stage gold and silver must pal
= company and the government must fail
y its established policy to maintain the tw
Q metal on parity with each other. Give
over to the exclusive use of a currenc
v greatly deprecated according to the stanC
/ ard of the commercial world, we could II
n longer claim place among nations OF th
first class. nor could onr government caiI
performance of its obligation, so far t
@ such an obligation has been imposed upo
n it, to provide for the use OF the people I'll
'f best and safest money.
y WHAT THIS COUNTRY CANNOT DO.
Il IT, as many of its friends claim. silvt
n ought to occupy a larger place in our GU
rency and the currency of the worl
through general international cooperate
y and agreement. it is obvious that II
/ United States will not be in position
D gain hearing in favor of such an arrang
e, ment SO long as we are willing to continl
it our attempt to accomplish the resu
N single-handed. The knowledge in busine
If circles among our own people that OF
government cannot make its flat equiv
lent to intrinsic value, nor keep inferi'
u money on parity with superior mont
by Its own independent efforts, has /
CT suited i'll
D, SUCH A LACK or CONFIDENCE AT HOME
le i'll the stability of currency values, tn
al capital refuses its aid to new enterprise
ht while millions are actually withdraw
% from the channels of trade and commerc
10 H., TO become idle aud unproductiye in Il
~ hands of timid owners. Foreign investor
al equally alert, not only decline to purcha
re American securities, but make haste
o. sacrifice those which they already have.
TALK WILL NOT REMOVE TROUBLE.
ge II does meet the situation to say th
til apprehension in regard to the future
or our finances is groundless, and that the
~ ~ is no reason for lack of confidence in t
~ purposes or power OF the government
the premises. The very existence of tt
he apprehension and lack of confidence, no
di- ever caused. is a menace which ought n
ell for a moment to be disregarded. Possih
las if the undertaking we have in hand We
ira the maintenance OF speclnC know
IN quality of silver on a parity with go
nd our ability to do SO might be estimat
lty and gauged, and perhaps in view OF U
I'd, PARALLEL growth and resources, might
m favorably passed upon. But when @
ed. avewed endeavor is to maintain such par