The Indianapolis journal., 1893-02-06
THE SHERMAN SILVER LAW
Ey.Representative Cheadle Tells Why
This Statute Should Not Be Repealed.
The Notes Issued Under 1t Are Amply Secured,
and AbrOgation of the Law Would In
crease the Present Complications.

ounces of silver every month, ought not to
be repealed. In order to reach correct
understanding of the exact condition of
the silver question some facts must be kept
constantly in mind. First. there is In
progress an effort of gigantic proportions.
led by England. to permanently demonetize
silver. Second, the existing legal ratio
between the two metals has been impaired.
until. commercially speaking, the ratio Is
broken. and by silver's demonetization in
England and Its partial demonetization in
Germany, silver is no longer treated as
money by those nations, but is treated
an article of merchandise instead of O
standard of value by which all merohan-
disc is measured. as it is and should be
treated. The Constitution of the United
States makes gold and silver standards of
value, and the ratio between them
is established by law. We use both
gold and silver in our money sys-
tenn. and both are maintained at par.
Pending an effort to bring about an inter-
national agreement as to the ratio between
gold and silver and its full and free COIN
age under this ratio, We enacted the law OF
July ii, 1890. which enables our people TO
have the full benefit of the gold value of
each month in their money system through
the issuance by the government of the gold
value of this silver in treasury notes that
are made q full legal tender in the payment
OF debts hold that a repeal OF that law
would be indeed most unwlse act.
for the reason that 1t wonld
tend to increase the disuse of silver in the
worlds money system in the sum of 81. Co.,
GOO ounces a year. the only effect of which
would be TO appreciate the commercial
value of gold and depreciate the CONNER
cial value of silver. There is no escape
from this conclusion. The plain and SIM
pie truth is. this money question should
never be made political, because. to my
mind. under our Constitution and laws.
there is only one thing for our goverDment
to do. and that is to press forward
In the work of complete restora-
tiOn of silver as money metal.
| beg to call the attention of Republican
leaders and papers to the fact that our
party Is pledged to the doctrine of bimetal-
lism BY our platform declarations and by
our party poiicy. To-day no nation that
uses both gold and silver is 80 deeply in
terested In maintaining blmetaillsm rs
ours. We have vast amount of silver In
our money system; We have still vaster
sum of silver In our undeveloped mines, SO
that every consideration OF party pledges,
party policy and national honor demands
of the Repu blican party that 1t take no
backward step on this money question.
THE BEST MONEY SYSTEM
Iwant to impress one fact upon every
mind that reads this, and that is that the
people are interested in the most stable
money system that can be devised. lay
down this elementary proposition, that
the money system that has the largest coin
reserve must be the most stable. the most
secure for the people. What system has
the largest reserveg The money system or
the United States, as illustrated by the act
0f I.,tx L laer If
En1land uses gold only in her system. The
Bank of England issues all the paper
money that circulates in England. That
bank holds from 80 TO AZ per cent. OF coin
with which to redee It's outstanding Obll-
cations. hence the English people have
from 30 to AZ per cent. of sOlyency and from
5S to 6l per cent of faith 10 bolster up and
maintain their money system. The German
government demOnetlZed silver, but
did retain In its financial system S200, ,000,-
600 of silver In our value. The Bank of
Germany issues all the paper money for
the German empire. That bank holds 90
per cent. OF coin reserve with which to re-
deem its outstanding paper obligations
hence il follows that the Germans have 90
per cent of sOlyency and As per cent. of
faith and credit with which To maintain
their money SYSTEM against from 50 TO AZ
per cent of solvency. and from So TO I'll per
cent. of faith and credit in England. 1t
follows, then, that even q limited use of
silver increases the solvency of a great
nations finances from 10 To 13 per cent
Let Us contrast these conditions with
those that exist in our money system.
Under the provisions of the act of July IA,
1890. known as the Sherman silver bill
-Four and one-half million ounces of silver
are purchased monthly by the government.
1t is paid for by treasury notes that are
authorized to be issued by that act. These
notes are made q full legal tender in pay
ment of debts. For every dollar issued
there is in the treasury one dollars worth
f,sIxv raAr rv,t nl<tc
so that behind every dollar of those
notes issued and IN circulation there
is one gold dollars worth of silver ore
to keep 1T solvent and insure it's redemp-
tlon In coin; 100 cents worth OF sOlvency
behind every paper dollar authorized TO be
issued by the act of July ii, 1890. against
from 80 to AZ per cent. in England and So
per cent. In Germany, Is the most I'M pres
sIve argument In it's favor that can be
made. If our people and our public officials
want a solvent safe and permanent
financial system, l challenge any
advocate OF monometaliism, the whole
earth round, to cite any other financial
with the one of July. 1890. The act of 1890
places gold dollars worth of silver be-
hind every paper dollar Issued under it's
provisions. What other system of this
age, in any commercial nation. can offer
one that even approximates this in sol
vencyf For that alone Is commercially
solvent that has coin. gold and silver. or
gold OF silver Dehlnd every dollar OF paper
money in circulation. The set of July,
1890 has one dollar In coin behind every
paper dollar authorized TO be issued. What
more ought to be asked by any people or
any parity
WHY THE LAW SHOULD STAND.
No honest. patriotic. consistent Repub-
lican can afford to even consider the repeal
of the act of July. 1890. unless IL Is TO be
followed by an act for the free coinage of
both metals upon an agreed ratio between
them, Tor the reason that its repeal Is de-
manded only by those who favor gold
alone and the inevitable result of It's repeal
will be TO widen the existing gulf between
gold ami silver and render still more diff
cult the intricate problem by which there
shall be made an agreed ratio bet W cen gold
and silver. which shall be enforced by the
commercial nations that shall enter into
the agreement TO enforce the free coinage
of both metals upon this new and agreed
ratio.
want TO state this other fact: The ratio
of decrease in the output of silver in the
United States for 1892 Is double that OF the
decrease OF gold. so that there Is no cause
whatever for any scare from that source.
From the earliest period OF history the out
| put of the precious metals has kept pace
| with each other; there have been phenom-