Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-01-18
CLEwS' LETTER.
The Position Taken That No More Silver
Should Be coined--Bu Our Invest
monls Are Sound.

Now York. Jan IA. 1893.
In connection with the prospects Of all
yer legislation, a report comes from
Washington that an attempt ~ being
made 10 effect a compromise by U return
Ia a coinage Of S2.OOO-iOO per month";
the situation existing previous TO the
present sherman law. II is not, how
ever, improbable that some such half
way measure mny he Introduced, nor
that IL might gain considerable support
from the numerous party trimmers IN
congress AT first sight such reduc-
ton of the purchases might seem better
than continuing the full present amunni;
but what would be still better would be
suspension OF the present silver act Tor
nc least one year Nothing short OF
some such action, until satisfactory inter
national cooperation IL secured, can mett
the demands OF the present exposed sit
uation. lt has become a very grave
question among competent judges whcth.
CO we may be able. under certain circum-
stances, 10 keep 0ur currency at par ~
gold, with the present law continued;
and IL is'thc misgiying OF this point that
has caused the recent titnidity IN the
higher financial circles. This doubt IN
much more pronounced IN Europe than
among ourselyoH aud IL Is not easy TO
say what arrangements in our foreign
financial relations might not result from
strengthening and pcrpctuating these
doubts. Our press, our Lending eNpon-
ents Of inantinl opinion, and onr dele
gates TO the BRUSSELS conference have
given Europe e. understand. In very
positive terms that ii Europe rejected
International irce-cOinuyc we should
promptly stop our purchases of silver
and throw upon other countries the whole
onus Of our now supplies of the metal.
Europe has deGed our challenge; and no
sooner has the act been done than we
begin 20 talk Of doing half Of what we
have threatened Such course would
wholly discredit us with the European
governments and place us nj IN incnlcu'
liable Disadvantages IL the renewal of ne
gOtiutiOns this year agreed upon by the
conference. Moreover, the difference be-
tween our professions and our perform
anCes could hardly fail 10 rcucw the dis
trust of foreign investors I'm our secur-
tiles. For n compromise Of the sort sug-
gested would bc tnntumount 10 confess
sion that we have not n body OF public
sentiment strong enough TO protect rs
against the dangers connected with our
silver situation, aud our yirtuOuS profess
siOns would be- treated as merely 80 much
irresponsible brag. The danger would
therefore b. no trihing one of Europe
repeating the process Of sending home
our securities, under which we have
years. Such a possibility Is n matter
not TO be slightly treated. The sani- sort
of influence has deprived US OF one hum
bred millions OF gold since the passage
OF the sherman act; and lf we were 10
continue still working nc the dangers Of
triHing with silver money, our folly
might easily cost as another hundred
millions The situation would thus bc
made worse at both ends II we continue
10 increase our stocl, Of silver and de-
creuse our stock Of gold Until Europe
is ready TO unite for the maintenance of
international free-coinage the prospect
OF which arems far from hopcful.--OW
position before the world Ipust he that
Of mo more silver and De as firm as q
rock
one very manifest effect OF the Brus.
sells conference has been 10 cause Euro
pean tpanciers 10 take much more
serious view of the silver situation, as re-
speeding their own countries. and the
main fact conducting 10 that result APP
pears 10 have been the plain intinlatiOns
of our delegates that, ia the event of the
conferences falling of any definite result,
the United States might be expected 10
suspend the purchase Of silver, The eff
feet Of this Is seen IN q large tultail,
ment of acceptances by the London
banks. in connection with England's for
eign trade especially with India 4
dressing an influential meeting IN Lon
don. exprcssig The fear that, in the event
OF the United States stopping their pur.
chases OF silver, the India government
would end II necessary TO abandon the
free coinRge Of silver.
The fact that largely owing to these
causes. the rate of discount in the dHcu
market at London Is ! "a per cent is
In favor Of the New York money market
and ought 10 tend towards restricting
our exports ~ gold, whilst IL may have
some connection with the somewhat
liberal demand for our securities which
sin copies from London Tho danger
aus condition Of Wrench politics, and the
possibility that the government Of that
| country might seek a diyergi0n from doc
nestle troubles In war with Germany,
! are also possible factors 81 much impOr-
! tance which, though they might at
GrSt dernnge our foreign exchanges, yet
/ would ultimately create demand for
/ our investments. sud especially would
| tbis b. the case should congress- suspend
! silver purchases. That is the hinge on
/ which. more than anything else, turns
| thp possibility Of serious financial cOm-
nHCaiions in Europe and the certainty Of
! he situation IN this country being pro
! tecfad against any serious difficulties.
Fortunately our own Investment mark
| 81 barring the "indurrials. lis IN
/ sonnd and strong position, The supply
! OF good railroad stocks Is exceptionally
! low; few new issues are being put ont;
| and the amount OF recent issues and ,0f
| second and third class railroad stOcks
seeking buyers has rarely been so light
| Al The same time, the general prosperity
| ~ bnsiness may be expected 10 afford
/ lie support 81 good Investment de-
mand. ii II mainly owing 10 these
/ factors that the current raids Of the
"hears" produce so little effect upon
prices and that they are followed by
| quick reactions.
But notwithstanding the~ Favorable
/ feot,Ireg IN The situation. tlle delicate
position OF finances aud politics In Europe
and ne undecided fate Is silver Ia this
country gave rise 20 nlany nDeeftainties
ana suggest the wisdDn qf prudence as
| applied 10 large speculative transactions
/ IA Is apparent, however ihu there VIII
| ~ i..f HENRY CIEWS