The advocate., 1894-02-14

plans TO secure Gn6lr TeWhru'
Their first step was to try to precipitate
enough of panic TO enable them to scare the
people into petitioning congress to do their
will, viz. repeal the purchasing clause OF the
Sherman law, reduce the tax on national bank
issues, and authorize the issue OF more bonds
A raid was made on the treasury by Shylock's
horde TO deplete the $1OOOOO,OOO reserve fund,
and the gold promptly exported, to prevent Its
speedy return to the treasury, and to en-
barrass trade and commerce here To enable
them to do their work more effectually, they
secured ruling from the secretary OF the
treasury by which the treasury notes issued
for the purchase of silver bullion would, on
demand OF the holder, be redeemed In gold.
This, in face Of the fact that the law clearly
provided for the coinage OF enough silver dol
lars from the bullion purchased to redeem all
Of such treasury notes presented for redemp-
tion This was directly the reverse Of the
policy so successfully pursued by France and
which enabled her to keep silver on par with
gold.
AS the gold reserve was drawn on, the money
power raised the cry OF "want Of confidence"
and parrot like through the press was the cry
repeated, until many people were alarmed
without knowing just where the want OF con-
fidence was. The bankers predicted that II
the $1OOO0OOOO reserve was trenched on the re-
suit must be widespread financial ruin. They
usurped our prerogative Of calamity howl
ing" and did their work 80 thoroughly that
| when the alleged danger point was reached an
unlocked for thing happened. Many having
savings deposited in the banks believed the
bankers wall, and made wild rush for their
money, precipitating the panic. Then the
Sherman law was held responsible and must
be repealed to prevent the depreciation Of sill
yer and stop the export Of gold.
Much was said and written about the danger
Of deprecated silver currency and 6O-cent
silver dollar, but all through the crisis the sill
yer coin remained at par with gold. Indeed,
when congress was called in special session to
repeal the Sherman law to stop the export OF
gold and prevent the depreciation Of silver
coin, the president had my sympathy, for sill
ven then commanded o premium over gold
even on Wall street and gold was being i'm
ported at an unprecedented rate, the month OF
August 1898, showing the largest imports OF
any month in the nations history. Twas not
surprised that after delivering that message
the president hurried off to Buzzard's bay; my
only surprise was that he did not continue the
trip on to Botany Bay and remain there dur
ing the remainder of his term.
Now, wherein was there want Of conf
dence? 1t was not IN the governments ability
to pay Its obligations, for the remedy offered
by these same creditors was first to cut off any
further increase of silver money thus dimin-
ishing the supply and ability to pay; second
to crease the governments obligations by
the issue Of mora bonds which these same
bankers were anxious to absorb. Certainly 1t
was not want of confidence on their part In
the governments ability to pay? Was 1t want
OF confidence in the money in circulation?
We are told that during the period of state
banks, when people received money in which
they lacked confidence, 1t was the universal
custom to get rid Of it as soon as possible; the
farmer and mechanic would rush to the mer.
chant to trade 1t off, and the merchant would
deposit several times day for fear Of being
lcaught with the bills of an unsafe bank. The
same would be true to-day with money4n
circulation in which the people did not have
confidence.
How different the policy practiced during the
past year. Everybody scrambled to get all the
money possible to hold as long as possible. No
want Of, but implicit confidence in, even the
deprecated (?), silver and despised green
back. Even the bankers tried to double their
reserves and refused to loan any kind of
money on giltedged security at any rate oI
interest.
1t certainly was not want Of confidence In
the money in circulation. Was 1t "want Of
confidence" In the democratic administration
No, 1or on the paramount issue, money, no re-
publican administration could follow the re-
/ nnhlican nnlicv more closelH than does the