The herald., 1894-09-08


traction would be- prgyented. This could
be accomplished. first, by changing tne
bullion in a silver dollar 90 as to require
100 cents' worth OF silv Br IN any dollar;
second, by an International agreement
which. if secured, would prevent the
necessity of changing the vatlo; or third,
nv calling in all money of small denon-
inations, say $40 and less. not consist
ing OF silver, and giving silver the right
OF way.
He esueciallv urged the repeal of the
10 par cent law on state bank Issues as
remedy within the control OF the United
States of great value.
After sketching the history OF silver
demonstration by Germany in 1871 and
subsequently by Norway, Sweden. Dem
mark, Holland. Russia ana the nations
comprising the Latin union, Secretary
Smith said:
In the meantime the United States
had changed from the coinage OF only
1881. 800 silver dollars, in the oO years
I'D to 1878, to the coinage OF 4l9,356,OUo
standard silver dollars, ana to the pur-
chase of silver upon which treasury
notes were issued, making total COIN
age value of $3.50. 900, 900 OF siver used In
this country during the last 20 years
From en- average OF Sl,UVUUOV
wear. the United States had changed TO
the use OF nearly s30,00o. 600 year.
The annual production OF silver, in the
meantime had changed from $50, 900, 600
at the coinage ratio of 1878, to 5000, O,OOO,-
600 at the coinage ratio OF 1892, and
depreci sted in value about 90 per cent.
From tdese facts, several conclusions
are irresjstible. First, the people OF the
United States have the full use OF ~
times "a much silver aa money OF full
legsl tender at present as they had be-
fore 1878; second. the depreciation In
the value OF silver WAS due to causes
other than it's treatment in the United
States.
It ia therefore evident that silver, at
ratio OF Is to l, if unlimited coinage was
attempted in this country, must either
f1ood our mints with enormous Quantl-
tias of silver, which will at once depre-
cjate the value of our money, or it would
ba coined only in reasonable quantities,
and this could not substantially affect
rhe mercantile value of the bullion
throughout the world. In either event
we would be forced to the exclusive use
OF dollar worth only little more than
half the present dollar. 1t would cause
the settlement of all contracts at the rate
OF so cents on the dollar. 1t would ire
ouire the reorganization of all prices to
be adapted to the new deprecated cur
rency. 1t would compel change OF all
legislation in fixing salaries. 1t
would necessitate the entire re.
adjustment OF the private and govern
ment business OF the United States to
meet the conditions caused by 8 de-
graded dollar. The confusion incident
TO such changes would be great. Conn
mercial failures. business wreck and
ruin must at once be precipitated. No
panic from which our country has suf-
tered could be compared to that which
would fall upon the industrial interests
by such action.
To the fear that the government of the
United States would not be able to main
tain its various moneys upon parity,
and that we were upon the point of be-
ing forced to the silver standard, with
results similar to thoss just described
might be attributed the panic of last
year. For the condition OF the treas
ury which led, in part, to that
fear, the Republican administra-
ton was responsible. the whole
administration OF Harrison, with
the exception of the fret year (Which
received its impetus from the excellent
financial conditions existing at the close
OF MIR. Cleveland's term), was one oi
failing revenues, increasing expendi-
turss and heavy expectation OF gold.
The receipts during the Cleveland ad-
ministration were s62 900 600 less than
during the Harrison administration
while the total expenditures were over
s2S1, 100000 less. Twenty-Five million
dollars in gold we're imported into this
country in excess of the amount export.
cd during Mr.. Cleveland'e term, wi hile
Mr.. Harrison retired from Office with 6
net gold balance against us OF nearly
$15S000, 600.
These figures are startling. The mel
exports OF gold duriAs the last three
months OF Mr.. Harrison's administration
amounted to s56, ,0O0, 900, while the ne
exports OF gold during the fiscal yea
ending June 80, 1894, amounted to bu
$4.5S0,000.
During the Republican administration
expenditures increased at the rate o
$60,000,000 year. while the revenu
decreased more than $1S,000,000 annu
ally. Mr. Cleveland retired, leaving
surplus of $3.50, 1868, 900 in the treasury
Four years of Republican mis.ule re
ducsd the surplus to s62. 450, 900, wit
charges fixed for the ensuing yes
amounting in round numbers to 800, GOO
coo in excess of the revenue.
The condition OF the treasury know
to the financial world occasions alarI
lest the government could no longs
maintain at par the enormous burden {
420, ,000,0 600 of silver dollars intrinsicall
worth about 65 cents on the dollar. an
$3.50 100000 OF Sherman notes. pred
Gated on silver of the same character.
This was not the only cause of tn
depression. Financial panics may
expected about every 80 years, iudgin
by the past history OF this country, an
one was due in the early nineties. Th
Barring failure in London also was large
ly responsible for the demoralizatio
of business, but the fears wer
intensified by the fact that tn
government, already carrying al
immenee volume OF currency, intrns
cally worth less than its par value
could not stand the additional unuaus
purchase of $50. ZOO, 900 provided for b
the Sherman act, and maintain its eli
vsr at par. IL was apparent that unlea
these purchases should erase the de
would surely come when gold and 81
yer dollars could no longer be main
tanned at par, and would reach the
commercial value rather than the
legal value, driving gold at once out
circulation and bringing this country