The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-05-06
e SILVER VIEW.

WASHINGTON, May 5.-General A. j
| Warner of Ohio, president Of the American
Bimetallic league, expresses the following
views on the present condition OF natlona
finances:
On the single gold standard, or with
gold as the only money of final payment
it is quite manifest that the level of prices
Is now against US and, therefore, that gold
will continue 10 flow from US as long az
adverse balances have to be met.
The only way to prevent this is more
restrictive tariff even than we now have,
to shut out imports, or such letting down
of prices as Will discourage imports and
increase exports.
1--WE might, il is true, get our creditors
to take bonds in lieu Of gold, but this
would only postpone the time of payment,
and would not prevent an accumulatiVe
adverse balance
ct is perfectly manifest, therefore, that
the threatened gold famine cannot. be pre-
vented by the issue of more bonds. Such
a course by the government would not
differ from that of an individual, who, be-
ing unable 10 meet his obligations or the
interest on them, gives his note III lieu of
Cash
How the much -talked-of parity of the
metals is TO be preserved by issuing bonds
has never been pointed out, and ! think it
the issue of gold bonds would operate TO
maintain the parity Of the metals If it
had any effect at all on the relation of the
metals, it would tend rather to separate
them than to keep them together
THE way to keep gold on a level with
silver is not by increasing the demand for
it, but rather by increasing the demand
for silver and lessening that for gold, a
policy the reverse of that now pursued.
1.-Two kinds Of money can never perma-
nently be kept at par if the creditor is
given the right TO say which kind he Will
take. The force OF legal tender, under
such conditions, is gone, and there will be
in the end but one kind of money, and
that the dearest
That is exactly the situation with US
now. if the holder OF United States notes
is given the right to demand gold it win
be impossible to long maintain the parity
of gold and silver coins, unless that right
be extended SO as to include the right to
demand gold redemption of silver, and
then there would be Il limit TO the kind of
other money that could be kept, in any
event, at par with gold.
Nothing is more certain in the fnan-
cial world than that gold, under present
conditions must continue to rise in value
and prices to fall, and that that country
which keeps up prices by credit devices OF
any kind Will be doomed to lose gold and
to experience frequent crashes of greater
or less severity, for the settling OF prices
can never take place without more or less
disturbance of business, accompanied by
repeated failures
More gold would, of course, remedy all
this, but more gold for the world for
money is conceded to be impossible; it
does not exist. This being the case moth
ing Will prove sure remedy but some
thing to take the place OF golJ; that is, do
the work of gold.
I'm the United States, beyond question,
silver coins are legally as much standard
money for the payment of United States
notes and other obligations as gold, and
why should not the secretary of the treas
ury recognize this fact and act upon il
The option TO pay either gold or silver uu-
doubtedly belongs to the government, and
the sooner the right to exercise this func-
tion IS recovered to the government the
better
"The Bank of France. the Netherlands
Bank, the Imperial Bank of Germany,
and all other European banks where bi
metallic currency circulates, exercise :he
right to redeem notes in coin o. either
metal. There is no full legal tender silver
coin III England, but tue Bank of England
has power to protect its gold reserves by
raising, at pleasure, the rate OF interest,
and this right is often resorted to. Why
SnOulu not the I UlJSu otdItS treasury pro-
tect itself as the Bank of France does, by
exercising its right to redeem its notes IL
either metal Why should 1t consent to
become alone the prey of the Eichelheim-
ers and the Lazsrd Freres of both con-
tineuts The announcement that the
government, at its discretion, would exer-
else its right would settle the whole ques-
tiou of the gold famine.
The lesson to be learned is that it is not
hv-s -ir,rr ha Of frAll H..
parity of the metals is to be maintained,
but rather by increasing that of silver,
aud by making it 90 the work of gold,
thereby lessening the need for gold.