Weekly expositor. (Brockway Centre, Mich.) 1882-1894, 1893-08-25
THE CURE.

THE CURE.
Cleveland wrote his message TO
Congress on August 9TH, and in many
respects it was an excellent document,
Notwithstanding the fact that he and
his advisers had adopted a course
which aroused groundless fears on the
part of the people and caused them
TO draw their funds from the banks
which were then and still remain per-
fectly safe, and thus caused nine.
tenths of the present financial troubles.
But close reading of the document
reveals the fact that he did not even
suggest substitute for the act which
he proposed to destroy.
We purpose adopting different
course. If there are difficulties; if
there are wrongs that need righting,
there must be some way to right them.
This brings us to
THE SHERMAN ACT.
This act was passed on July II, 1890.
In substance it provides for the pur-
chase of 100000 ounces of silver
every month, provided so. much is
offered at what it is worth in the
market. 1t also provides that at least
=, 500, 900 per month shall be coined
from the silver so purchased.
For every silver dollar so coned
there is issued Il "Silver Certificate" or
bill. This bill reads as follows; "This
certities that there has been deposited
in the Treasury of the United States,
One Silver Dollar, payable to the
bearer on demand"
1t is also provided that this bill or
certificate els receivable for customs,
taxes, and all public dues"
This measure increases the amount
OF money in circulation, for it adds
to the amount of money the amount
coined, either in the form of silver or
silver certificates.
1t must be admitted that we have
too little ready money in circulation
now. Careful estimates show that all
of the money issued by the govern
ment represents a small percentage
of the amount of business done.
In other words there is not nearly
enough money in the country to buy
and pay for the wheat and other
grains, cattle, horses, sheep, and other
farm products, and that as a result
large transactions IN these must be
carried on on credit. For this purpose
those who handle them use drafts,
checks, bills of exchange, notes and
other e0tdenceS of money until they
can be transported and in many in
stances sold and handled again and
again before the farmer who raised
them gets his cash for his products.
The same thing is true in various
lines of manufactured products.
All of this goes to show that money
is not too plentiful.
This raises the question. Shall there
be an unconditional
REPEAL OF THE SHERMAN ACT.
1t is proposed by many members OF
Congress TO repeal the Sherman Act
Internationally. That is to say that it
shall be repealed and no steps taken
to furnish any other means of issuing
money in Its place. This is leaving
the matter Just as Cleveland left It.
He simply asked Congress to repeal
this law and suggested no means of
furnishing money for the uses of
commerce in the place of that that
must be withdrawn from circulation.
If we have too little money now,
how will it aid us to stop the issuing
of silver dollars and silver certificates
under this law?
1t is but recently that petition was
drafted by the exchange brokers and
various commission organizations of
New York City asking Congress to
simply repeal the Sherman law and
then adjourn. These petitions issued
in the city of Gold Bugs were sent out
by thousands to banks and bankers
throughout the country requesting
these to circulate and obtain signatures
of the patrons of the banks. Eastern
cities furnished thousands of these
lists which were forwarded. 1t was a
part of the scheme promulgated by
the eastern Gold Bugs and endorsed
by Cleveland and his chiefs. In the
west and generally throughout our
own State the people sturdily refused
to sign such petition believing that
it is the plain duty of Congress TO do
something more than merely pass q
bill that will stop the coinage of silver
and the issuing of silver certificates.
THE RATIO.
Much is said about the cratic" in
the discussion of the silver question.
Ratio means the comparative weight
between the amount of pure gold in
a gold dollar and the amount of pure
silver in the silver dollar.
Congress has attempted to place n
fixed value upon these coins by pro-
viding that the gold coins shall contain
1922 grains of gold and shall pass for
a dollar, while the silver coin shall
contain 37l.25 grains of pure silver
and shall pass for a dollar. Thus it
will be seen that the silver dollar
contains practically Is times as many
grains as the gold dollar. Hence the
ratio fixed by Congress is 16to 1.
But experience has shown that
silver changes in value and that al
present as matter of fact instead
of being l6 to | as fixed by Congress
the pure gold in gold dollar is
actually worth in the market about 2s
times as much as the silver in silver
dollar. This ratio of 30 to is termed
the commercial ratio. This CONNER
cial ratio raises and falls with the
price of silver, and the only reason
given for the repeal of the Sherman
Act is the fact that the purchasing
clause which requires the Government
to purchase the 100000 ounces pei
month may so load our government
with silver as to further decrease it,
actual value "a money and thus in,
crease the commercial ratio.
For instance although the silver