The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1894-10-19
AGAINST FREE COINAGE.
Senator sherman Speaks the Subject
of Silver.

lengthy address on the tarlu ana
money questions. In his remarks on
silver he said:
Another great question involved In this
election as ,Le free coinage of silver. The re-
| cent democratic c. invention OF Ohio adopted
this resolution:
We dissent from the presidents views,
construction and treatment OF the silver ques-
ton. and. therefore, believe that silver should
be restored TO the position it occupied as
money. prior 20 its characterization by the re-
publican party, and to that end we favor the
unlimited free coinage OF silver at the legal
ratio of sixteen TO one and with equal legal
tender power.
This resolution is in direct opposition to
the national democratic platform OF 1892 and
the known views OF President Cleveland. The
attempt to carry this resolution into effect
would rive the democratic party from turret
TO foundation stone. The policy 1t proposes
would reduce the purchasing power OF the dol
lar more than one-half The wages of labor
would be practically reduced, for the depre-
ciated dollar would buy only what fifty cents
will now. The only remedy of the laborer
would be higher wages. but every laboring
man knows how difficult il is TO secure such an
advance. j have sometimes thought that this
declaration is but the demagogism OF the hour
the natural result OF the meeting OF Senator
Brice and Tom Johnson in the same conven-
ton.
But the consequences OF free coinage under
present conditions are so grave. so wide-reach-
ing upon all business, labor and production,
that think 1t best for me to state carefully
and accurately my views OF the free coinage of
silver.
What is meant by free coinage: 1t is by
law to confer upon any holder OF silver bullion
the right to deposit il in the treasury or minis
OF the United States and to demand and re-
ceive for il 81 for 37l4 grains OF pure silver or
4l2ts grains of standard silver nine-tenths
fine; or in case the silver is not coined. the
holder may demand a note OF the United States
for 81. and both the coin and the paper are
money and legal tender for all debts. public
and private. Remember that 37il4 grains of
silver are worth in the markets OF the world
about 43 cents Silver may vary in price from
day to day. but the tendency is for 1t to de-
cline. Assuming it to be worth 80 cents in our
lawful money. the holder Of the bullion may
demand and get 81 for 3TlJ4 grains, and that
dollar is legal tender.
.'AS q result OF this either one of two things
will happen. Either ali the silver in sight will
advance in value to gold Ut the ratio of Ii to :.
or the purchasing power of the dollar will he
reduced to 80 cents OF our money. and the
gold dollar will he worth two silver dollars.
Which OF these is likely to happen:
The experience OF every nation in the world
proves that the cheaper money will I'LL chan
value will be boarded or exported. This is a
rule as universal as the movement % the earth
around the sun or the flow of the tides OF the
ocean. No one will pay gold when silver worth
one-haf In commercial value can be paid in
stead. The amount of silver in sight in the
world is stated at 5000 100000 ounces. each
ounce containing $50 grains The annual pro-
duction OF silver in the world is about l6i.-
100000 ounces. the commercial value of which
Is sl25.00.OO0, but the coinage value at the
present ratio is now about s225. O0OO0O
The vast hoard OF silver will be invited to
the United States in the hope to obtain more
for it than its market value.
What benefit will this radical change in our
coinage laws. if made, confer upon the people
OF the United States: Il Is said that 1t will
double the price of all our productions. so it
would nominally, but will it not also double
the price of all you have TO buy: Foolish men
may sell their farms at higher price, but will
the money they receive purchase any more or
as much property of any kind as they sold?
The workman whose daily wages are now pay
able in gold or its equivalent will have to re-
ceive silver dollars whose purchasing power is
but one-half of the money he receives now. II
he demands higher wages because of cheaper
dollars he knows how difficult it is to secure
proper increase OF wages.
Ii the farmer gets higher prices for his
crops it will be in money of less purchasing
power. But two classes of men will be benz
efiTed-the debtor. who can pay his DEBT in
cheaper money. and the owners Of silver
mines. The debtor gains by cheaper money,
but is il honest to borrow gold and pay in
silver worth half what he received? The
owners Of silver mines, generally organized
into great corporations. will get nominally
more dollars for their product. but il they are
Just to their workmen the cost of mining will
be increased. do not see how In the end the
silver miner will be benefited.
If the object of this change is TO increase
the volume Of money. why should not the gov
eminent buy the silver bullion at its market
price and issue its money. coin or paper. to the
amount Of the cost of silver: This would give
US more money and We would have in the
treasury enough silver at gold prices TO re-
deem our money
This would be honest and right. We tried
that experiment in 1890 We passed law re-
Quirlng the secretary Of the treasury to buy
the enormous amount OF 1900 600 ounces OF sill
yer month at market price and to issue in ex-
change for il United States treasury notes !
voted for this law. and 1t was called the .Sher-
man law voted for it with much doubt. upon
the confident assertion that this large pur-
chase OF silver bullion would prevent its de-
clining in value. But, in spite of our purchases.
the price of silver went down, down, down,
from l05 cents an ounce to Is cents. and this
loss fell upon the government. The expert
melt having l1lled. congress repeated the ACT
OF 1880. and voted for that repeal
What would be the inevitable result OF the
free coinage Of silver now, when the silver in
the dollar Is worth only 50 cents: Does any
man need to be told that it will be worth only
what it cost:
by carefully limiting the amount of silver
CONS and coming only on government account
we maintain silver coins at par with gold
coins. Just as We keep paper money by prom
iSn IN y
gold if demanded This is what we did with
nearly 400,O0o,OO9 OF paper money in 1879. We
accumulated q fund of gold; We promised &c
pay the notes in coin. The notes had been de-
preciated during and after the war. We lifted
them Up by resumption in January. 1879 and
from that day TO this they have been equal in
value with gold coin in any market of the world.
In this way We have thus far maintained
our silver coins al par with gold. We receive
them as money we hold them in vast sums in
the treasury. and for the convenience OF our
people we issue certificates for them But
how is this done: BY carefully limiting the
amount OF notes issued and holding large re-
serves in both gold and silver and redeeming
our notes when presented.
We have pledged the faith of the United
States that all forms OF money shall be kept
equal TO each other. Thus far we have been
able TO maintain that pledge. Is 1t not mat
tor OF pride to every American that our cour-
age was demonstrated in war; that our gener-
osity and moderation were displayed in peace;
that our financial honor is untarnished and our
credit is equal TO that of any nation in the
world:
The free coinage OF silver will break down
all this The government will lose all control
over the amount OF money to be issued This
will depend upon the greed OF bankers and
bullion dealers. There will be no limit upon
Il except the vast quantity Of silver in the
world. All this will seek our market as long
as our silver dollar is worth more than the
bullion in it. The result is inevitable; as GER
tain as the law of gravitation- The purchasing
power Of the silver dollar with coinage free
will be the market value O; the silver bullion