The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-09-06

| money service and would be available
tor use In settlement OF adverse foreign
balances, If there were any.
In defense of the act thus proposed
Ter confederation, will say: ~ It
divorces our currency from the metals
gold and silver. (2) 1t guarantees that
we shall obtain gold and silver from
foreign nations with which to pay our
bonded indebtedness in few years
and precludss the possibility of any
more ''refunding" operations. (3 It
places gold and silver, so far as the
United States is concerned, upon the
same plane and in the same category as
all other commodities. az It precludes
the likelihood of gold going to pre-
MUM, because the paper money pro
vided for is not promises to pay gold,
and the United States government
would receive more gold than it could
possibly be called upon to pay. (5) It
provides way of putting the new
money into circulation, to the extent
Of our present customs receipts and in
payment for public improvements. 10y
If it discouraged imports, our favora BILE
balance of trade would be larger and
we would get the gold from abroad,
anyhow. (O It preserves the legal
tender attribute of all the silver we
now have-about $685., 900, OOO-thus
making it the interest of the holders of
securities to keep gold in circulation
at par and without premium to avoid
the contingency of being paid wholly
in silver. (S) Il silences the cry that
distrust and lack of confidence prevails
because of the fear that we propose to
pay our debts with silver alone and
guarantees an exact compliance with
the terms of the contract as printed
upon the contract itself. 10y It is no
more of the nature of ''iat money" leg
islation than even now exists in other
countries, notably France and Aus
tralia. (10) It would receive the ap-
probation and support at the polls Of
two-thirds of the people of the United
States- 1D It gives us the ulti-
mate aim of the free silver coinage
demand-mors money-and gives us,
in addition, the product of our
gold and silver mines to trade with.
Q9). France is nation to which
populists point rs an example of none
tary wisdom and financial success.
And yet, from 1880 to 1892, both in
elusive, France coined absolutely no
silver at all and only abont s22, 900, 600
in gold. Yet during the year of 1891
alone, her imports of gold amounted to
more than 500, 600, 900, and her exports
to more than as, OOO, 900, while she inn
ported more than $34, 900, 900 in silver
and exported more than S2S, 600, 900.
France closely adheres to the policy
herein advocated, of paying all public
obligations one-half in gold and one
half in silver. QS). The paper money,
as well as the gold and silver, would
be legal tender in settlement of all
existing private Indebtedness, as wit
ness the following legal decisions:
Indiana Bank of State VS.. Burton,
(27-426). That when the amount of
debt is ascertained the court cannot
recognize any difference between the
gold and the greenback dollar of like
denominations
Appel vs. Mailman missouri Re-
ports, 1O4). A contract had been en-
tered into providing that note and
the interest thereon should be paid in
current gold coin of the United States
without regard to any legal tender
that may be established or declared by
congress- The court held that a ten
der in green backs cancelled the debt
and was sufficient.
(14.) If it be objected that the incon-
vertibility Of, or lack of the words
promise to pay" upon the proposed
bills will cause them to depreciate, it
may be urged in answer that Mr.. Stan
ley Jevons, in his work on ''Money and
Mechanism of Exchange says:
There is plenty of evidence to prove
that an inconvertible paper money, if
carefully limited in quantity can re-
tain its full value. Such was the case
with the Bank of England notes for
several years after the suspension of
specie payments in 1897, and such is the
case with the present notes of the Bank
of France"
15.) If it be said that the exception
clause upon the back of such bills
would put gold at premium. the an
swer is that the demand for gold is the
OcGcfullu1uS IdCCOr. Inc OIL prOV1OoS
ways and means for the requirement by
the government of more gold than it
could be called upon to pay. The only
other use to which gold can be put, is
the settlement of foreign balances, and
that is done by individuals, not by the
government. From 1867 to 1872, inclu-
sive, the official reports show no gold
at all in the United States, in or out
of the treasury, with outstanding gold
certificates averaging s25, OOO,OO year.
During the same period the official re-
ports show no silver. either dollars or
subsidiary coin, in the treasury, or out,
in the United States. During this Pc
Rod, import duties. payable in gold
averaged $1S5, $50, 900 a year, while
interest and premium payments, pay
able in gold only, averaged s14O, 600, 900
year. While in 1879, we had but $117,-
100000 in silver and only s245, OOO,-
600 in gold, now, according to Of
fetal reports, we have about $685., 900, 900
silver, and nearly as much gold. From
1867 to 1879, inclusive, the interest upon