The morning call., 1894-05-27
BIMETALLlSM.
Commercial Reason for Its
Establishment.
WHAT EXPERIENCE SHOWS.
The United States Government
Should Act lnde-
pendently.

think there can be shown few reasons
why the United States should be able TO main
tam, independently. free silver coinage law
on parity of IS toll
Those who have taken an active interest in
the mining resources OF this country and those
who have been interested in silver legislation.
have probably heard and read all the great ar
gumenIs in favor of silver and those also In
FAVOR OF gold, and know that those faVorlng the
latter have been made on the old and we'll
known lines of Over-production OF silver. or the
immense hOardings retained by several Gov
ernmentS or individuals; notable among the
latter is the HOhenZollern family OF Germany,
who were accredited with having many hun
dreds OF millions OF silver.
There has been sucn a wealth of argument
and such paucity OF adjustment on the silver
question that even those who were we'll versed
IN the topic became somewhat confused and
were not quite certain up 10 1891 that free
coinage OF silver could be maintained by the
United States Government without the Coop
Grafton OF England and Europe, thereby estab-
fishing an International agreement fixing the
parity between the TWO metals. During the
session OF the Fiiy-firSt Congress free coin
age bill (based on parity of 16 to y was intro
dnced In The Senate aud passed mat body on
January II, 1891, whence it went to the
lower house. AT this period silver was worth
30 cents per ounce, but while the bill was pend
ing In the House silver advanced 10 81 20 per
ounce.
Now, in observing the New York ana London
markets closely during this time it was surpris-
ing 10 mole that the former was taking the lead
on silver. 1t was well-knOwn fact that our
exports OF silver were increasing, and also.
that the much-talked- of hoardings Of the HOzeu-
zOlerns ana others did not manifest themselves
III the shape OF depression in the price OF silver
by these large bOardings being thrown on the
markets as the gold men had SO generally pre-
dcted. 1t was also understood that President
Harrison would have approved the bill had it
been passed by Congress.
Ow, all this was so directly opposite TO the
predictions OF the gold men regarding the fate
OF silver should the United States Government
pass free-cOinage bill that one would nat
urally look for the reasons for this glazing in
consistency. Now, the most apparent reason
why London should lead the silver market dur
ing the pending of this tree-cOinage bill in the
lower house was that London fDancIers be-
heVed that the United States Congress would
pass the bill, and they were shrewd enough to
see that silver would 20 to par, or 81 1920,
should this bill become a law. Therefore,
naturally. they were anxious 10 obtain all the
silver possible while It was below par. fer
surely no one can doubt that silver would have
gone 20 par IN less than week after this free
coinage bill became law when fl had but 9.29
OF a cent per ounce TO advance 10 reach that
point, and more especially when 1t is remem-
bered that silver had already risen from 30
cents per ounce to 81 90 and this, too, upon
the mere probability OF this coinage bill
becoming law. An advance Of 80 cents per
ounce had been made in three months without
any other apparent reason than that the United
States Government would pass a free coinage
bill.
Now the strongest reason why the United
States can take an independent lead on free
coinage aud not only maintain that position
but also force Europe TO follow or lose her most
desirable foreign trade is this: With the great
natural resources OF the United States and our
manufacturing ability TO utilize them in abund-
ance Of all demands we could say TO South
America, the Pacific isles, India. emma ana
Japan (all OF this Sc being silver-using countries)
Buy our goods and we Will take your silver
money" Would not this bring the trade very
quickly to our shores in preference to those Of
Europe, where the silver money sent from these
countries 10 purchase European goods would
be subjected TO a very heavy discount?
Europe naturally Is very jealous OF the trade
OF these silver using countries, since she buys
their products, paying for Them in deprecated
money, while she sells them her manufactured
goods, dIscOunting their money in payment for
the same.
There IS no lasting sentiment in tr de, and
Governments, like individuals, will place their
patronage where they can obtain the most for
the least. This, then, my be taken for the
princlpal reason for silver advancing 80 cents
per ounce on the mere probability OF pending
free-cOinage bill becoming law. EurOpe's
discernment was sufficiently keen to tOresee
all this. She saw that her trade with the sill
ver-using countries would surely gravitate to
the United States unless the moneys used by
these countries should b. worth as much in
Europe as In the United States and hold equal
purchasing powers. Hence, If this country
established parity OF value b-tween gold and
silver opening her minis TO the free coinage of
the latter, we would naturally win the trade Of
all slVer-using countries, unless Europe would
accept their moneys on the same basis of
values.
The desire, then, on the part OF England and
Europe to hold this trade may, from CONNER
cial standpoint, be safely taken 10 be the prime
cause for silver advancing 80 cents per ounce,
and for this reason We may feel perfectly con-
fdent that free coinage would bring silver TO
par, and. therefore, Europe would be compelled
TO accept II on the same basis as the United
States. Thus EuToUe would establish bimeta-
lism-not through the agency of her inan-
ciers, who are the creditor class OF Europe,
and, therefore, are more interested in decreas-
ting the volume of money in circulation and en-.
h"ANiuE tn' fdluO vi EOlu ny CutdpthluB every
thing that gold will buy or, in other words,
benefting the mOney-lender and injuring the
borrower, but through the force and necessities
Of her tradespeOple and manufacturers, who
compete with the United States for the trade
OF these countries. which surely could not be
done were the moneys OF these countries worth
less IN Europe than in the United States
We may feel confident that the commerce OF
the silver-using countries would decide this
mighty problem more speedily than all the theo-
rles thus far brought 10 bear upon it, The only
remedy at all adequate to meet this veXing d if
hculty and free II forever from uncertainty is
to elect Congress which will b. pledged to
carry out this great necessity Of the people, and
one which will also repeal all laws passed on
this question since 1873 (when silver was prac-
ticaily demOnetized). then pass laws that will
First-Pay our bonded Indebtedness, princi-
pal and interest, with the money we contracted
to pay 1t In.
Second-EstabIish parity of 16 to between
gold ana silver.
Thrd-Make both kinds Of money legal ten
der for all debts.
FOurth-Open our minis 10 free coinage of
both metals on equal terms
Then this country would see such period of
prosperity, development and enterprise as
would astonish the world. This would then
make Impossible that starving and fermenting
horde Of unemployed who to-day parade the
streets OF the cities of our land, In their hope
less march across The fertile breast of this great
continent 10 lay bare their haggard wants on
the nations doorstep; then, toO the bond
holders, taking both gold and silver In payment
IN hFAVa d oh, 49, a.