The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-07-05


liable, and as France has now ceased TO
coin silver the financial situation there
is not threatened, as here, by a change
of standard.
Changed to the Greenbnck.
'The panic Of 1875 was. without doubt,
the direct result OF speculation and over
trading induced by the greenback era
beginning in 1929. Between 1863 and
1873. both inclusive. the balance Of for
eign trade against US was $40 i40.5S7-
that is. we imported into this country
during these eleven years over and
above our exports OF merchandise this
enormous sum of over one thousand
millions of dollars. This long and steady
drainage. lasting without a single inter-
mission for eleven years. brought its
legitimate fruit-a loss Of a large part OF
the nations wealth, and with II the
eountry's entire stock OF gold. Inc
only currency left us was the greenback
and the national bank note, which lat
ter, being redeemable in lawful money
of the United States, could not acquire
any higher value than the greenoack
itself
Take the period OF unbridled state
bank issues OF paper money between
iS4S and 1857, both inclusive, and we ind
a similar result. In a total foreign COM
merce in those ten years of only "a 367,-
600 the excess of our imports of r1er-
chandise over exports was almost S3,4IO,-
600, making an average loss Of about
per cent per annum. This drainage OF
wealth resulted in the panic OF 1885,
whose severity continued until the de-
preciated state bank circulation was de-
stroyed and substituted by the green
back currency, which at first enjoyed the
confidence Of the people.
Due to the Sherman Law.
1.-The commercial conditions now ex-
listing are altogether different from the
two periods named. 1t seems to me
demonstrable, SO far as a financial prop
osition can be logically demonstrated,
that the present situation is not the re-
suit Of speculation. OF overtrading or
bad business methods, but that 1t is
largely, if not wholly, produced by the
silver legislation of congress. 1 have
already shown that under the era OF
deprecated greenbacks the balance of
trade against us every year. state
bank issues had been tried and could
not be kept at par with gold. L. ).
notes had tlSO been tried, and, though
backed by the wealth and credit or the
nation, they. too, had failed 10 preserve
a parity with gold. The increasing pro-
duction of silver as compared with that
Of gold had induced Germany TO follow
England and to discard IL as twin
standard OF value. and the wisest and
most considerate statesmen of the world
were being rapidly driven to the COnclu-
sion that the highest and best political
economy required and demanded
single standard of value. The Ameri-
can congress of 1873. actuated, no doubt,
by these views and earnestly desiring TO
escape in the future evils that the least
sagacious were compelled TO admit had
followed the use of appreciated money,
adopted without dissent the single gold
standard. This was in reality no violent
change from the long declared policy OF
the government. At the date Of the
creation Of the greenback notes eleven
years before the pledge was given that
they should be redeemed in coin at the
close of the war. and the obligation OF
that pledge was still acknowledged by
all political parties. So FAR as the liver
dollar was concerned, its coinage had
been free from the time of the first coin
age act Of 1892, but during the eighty
one years that had now elapsed only
about 100000 OF these dollars had been
coined. 1t is true that half-dOllars,
quarters, dimes and other subsidiary
silver coins had been made at the mint,
but, being a tender for only limited
sums, the silver currency had never been
an important factor in the business
transactions of the people. Two years
after adopting the single standard, to-
wit. in 1875, a measure was inaugurated
and passed for the resumption Of specie
payments, to become operative on Jan.
/, 1879. If these two measures had re-
mained on the statute books, inyiolate
and unamended, there is no economical
reason why the United States and its
people should not today enjoy the most
unbounded prosperity. We should have
had the best and most abundant cur
rency-a gold currency Of universal
value and Of such volume as to force its
circulation, as in England, France and
Germany, into the hands OF the people.
To be assured Of this fact, II is only
necessary to again examine the condi-
tions of commerce for the last seventeen
years.
in the first six years Of the time
ending June 80. 1881, we had already i'm
ported in gold over S102 900 900 more than
we had exported and IL must be remem-
bered that in 1881 we had been already.
for four years, on our downward course
toward a silver standard after the Bland
law Of 1878. Finally, after the passage
of the Sherman law OF 1880, which more
than doubled the silver purchases, the
remarkable fact is disclosed that no
amount Of expectation Of merchandise
could stay the shipments Of gold from
the United States. Although the excess
of our exports of products in 1892 amount
ed TO nearly S203. 900 900. yet the start
ling fact appears that during that year
we exported over 600 Of gold; and
urally turned against us. the country is
being drained of it's remaining gold with
alarming rapidity.
eff any gold be left in this country 1t
is boarded by the timid. 1t is as COM
pletely absent from circulation as IL IL
had no existence. From January, 1889 to
June. 1892 nearly s16O.OO0.OOO of gold and
gold certificates were withdrawn from
the national treasury. The rapid disap-
pearance of gold may be further deter
mined by the fact that in January, 1891,
1876 per cent. of the customs taxes In
New York were paid in gold and gold
certificates, while in May, 1898, only one
tenth Of l per cent was similarly paid.
Bland and Sherman.
"It only remains now briefly TO state
the character Of the silver acts OF 1873
and 1890. and TO furnish you the reasons
for believing that the overthrow of pub
lie confidence and the present depression
in business are the legitimate conse-
quences OF those acts. The natural or
normal results of this legislation would
but for the many abundant crops of this
country and the numerous failures
in that. respect abroad.
THE act of Feb. 2S. 1878. known as the
Bland act, was by title, To Authorize
the Coinage of the Standard Silver Dol
lar and 20 Restore Its Legal Tender
Character II directed the secretary of
the treasury 70 purchase monthly not less
than 81. ZOO, 900 nor more than 1000, 900
worth OF bullion 10 be Immediately coined
I