The record-union., 1893-01-09
TT WOULD Be FATAL"
The Effect That Would Follow Free
Coinage.
So Says Mr.. Peeler, the Finance Ex-
pert, Now in This City-His
Reply to Jay w. Bee.

Reply to Jay Wa Bee'
Edward J. Peeler, the finance expert
with whom an interview was published
in the RECORD UNION of Thursday last,
and to which reply was made by Jay
w. Bee, a student who desired more light
on the subject, was seen at the State
House Hotel yesterday and asked what
he had to say to the latter's argument.
In reply to the first question, "Why
was silver demonetized by Act of Con-
gress in 1872" Mr.. Peeler stated that it
was because the commercial nations OF
the world refused to handle silver in any
amount above S. per capita.
The second question, "Why is the COM
bined money influence of the nation op-
posed to the coinage OF silver and the ex-
pansion of the currency" was disposed
of by Mr.. Peeler in the statement that
the universal opposition to silver in the
commercial world arose from the fact
that the white metal, by reason Of its bulk
and weight, would consume itself IN
transportation. a given sum of silver,
moved from Sacramento to New York
and back, would, in fifty such exchanges,
consume itself, the express and trans
portation companies getting it all.
To the third query, why will the free
coinage of silver eXpel gold from our
country?" Mr.. Peeler replied that the
principal cause rested in the fact that the
United States Government stores no less
than S4,500,000 in silver monthly. A
powerful combination of silver capitalists,
whose operations extend from Alaska to
Peru, are enabled to sell this silver pro-
duct to the Government, which in turn
issues a certificate payable in gold. The
silver capitalist walks into the sub
treasury in New York City, presents his
silver certificate and draws its full
amount in United States gold coin foI
transmission to Europe.
To illustrate the drain of gold from the
United States, Mr.. Peeler cited the fact
that either in 1883 or 1889 it was estimated
that 60, 900 American citizens went abroad,
and it was approXimated that each tray
eler spent on an average not less than
81 ,000-a total of $50, ,000,0 600 in gold spent
by Americans in Europe in one year.
When it is taken into consideration that
these figures are steadily increasing, ii
will not be difficult to appreciate the force
OF Mr.. Peeler's argument.
Fourth query-What IS the differ
ence between bullion and money value?
If that difference is the stamp which our
Government puts on q certain quantity OF
bullion giving ii money value, then is
it not true that the maintenance at par OF
q silver dollar depends, not on its bullion
value, but on the stability of the Govern
ment emitting such?"
In reply to this Mr.. Peeler gave his
opinion that the difference between bar
gold and coin gold being nothing nation
ally, and the difference between bar silver
and coin silver being 90 per cent, with a
downward tendency, accounts tOr the
financial battle on silver between nations
OF the world.
To illustrate these propositions, and 10
bring them more forcibly to the minds OF
thinking men, Mr.. Peeler proposed 70
take trip around the world. Starting
from the city OF San Francisco with 81 200
in gold, the traveller reaches Japan. 1t
may be asked, Why does the traveller pre-
fer gold? The answer is that the Amer
lean $50 piece is, nationally, the king OF
coins. Its tineness and melting qualities
are so superior that it is readily eX-
changed to the highest advantage in any
OF the civilized nations of the earth.
Therefore the tra[eler takes good Amer
lean so gold pieces.
In Japan the traveller exchanges his
$1,000 in gold for 81 ,525 in legal and law
full japanese silver or paper. He leaves
for China, after spending 81 900 in Japan,
and, having drawn on his gold reserve for
another 81, 900, the traveller exchanges this
amount for Sl, AS in silver for China eX-
penses. Leaving the Flowery Kingdom
the silver sink of the world-the globe
trotter arrives at the great wheat country
of India. He drops into the Government
Mint at Calcutta and exchanges another
81, coo in gold for 81 $50 in silver rupees.
South and Central America may be in
cluded in the same ratio of discounts.
These republics are tree-cOinage coun-
tries, and the experiences of q traveller III
exchanging gold for silver would be
about the same there as in the nations
mentioned above. These nations en-
brace the free-coinage countries of the
world,
Leaving India, after having seen the
effects of free coinage, the traveller takes
his departure for France and England
double-standard countries-whereh he ex-
changes his $1,000 in gold for 81 900 in
silver.
Mr.. Peeler closed the interview with
the following striking remarks:
LET us remember that this silver ques-
ton is entirely modern. The nations OF
the world entered upon the nineteenth
century in complete ignorance of it. The
countless millions of the East, of China,
India, Africa, the many States of South
and Central America, MeXlco-in fact,
three-fourths of the world, peaceably en-
joyed an independent silver standard
while England, France and the principal
commercial States of Europe used the
double standard, so-called, the relative
value of the two precious metals being
established by International law and GUS
tom.
''Are the sources of silver inexhausti-
BILE? Not by any means. But they are
sufficient to flood the United States, when
the tlood-gates are lifted without due pre-
cautions. Should the United States de-
clare free coinage tomorrow, every
ounce of silver that could be spared from
the silver of every nation would be
poured upon her. Every nation which
like Austria and India, seeks to establish
the single gold standard, would also hasten
to change its silver for gold. In few
months we should find ourselves among
the silver monometallic nations, while
others obtained gold basis at our ex-
pense.
1--WE should have relaxed correspond
ingly the ties which bind rs to the great
commercial West and find but slender
compensation in the increased intimacy
of other associations. We should have to
buy for gold and sell for silver. The loss
of our gold would inevitably occasion
contraction. Years would elapse before
the disturbed currents could settle to q
calm. In short, it would be fatal"
Another Reply.
EDS. RECoRD-UNIoN: In your issue OF
the 7th inst, under the caption of ''Gold
or Silver" see an answer by Jay w.
Bee. double standard champion, to an
interview in the issue of the 4th with
Edward J. Peeler, entitled, "Views of a