The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-07-25
HOKE SMITHS PREDICTIONS.

While Cleveland is enjoying his summer
in the pleasure of fishing at Buzzards Bay
the members of his Cabinet continue their
efforts to vindicate his administration and
check the growing sentiment in favor of
free silver. Secretary Carlisle having fin
ished his share of the work in Kentucky,
Hoke Smith has begun his in Georgia and
will stump the State, it is said, to counter
act the influence of Crisp and possibly to
obtain for himself an election to the United
States Senate.
In the address at Gainesville on Tuesday
in which he opened his campaign Mr..
Smith directed his attention mainly to the
disastrous consequences which he alleged
would follow any attempt at the remone-
tization of silver. 'The immediate effect
OF the election of a President committed to
such policy" said he, would be the
separation of the gold from the silver dol
lar-the gold dollar going to premium of
about two for one-and we would lose at
once $67S 1000, 600 of gold now in circulation
and in the TT easury. The greenbacks and
treasury notes, 1915, 600, GOO of which would
still remain outstanding. would be boarded
in the hope that free silver bill if passed
would soon be repealed. The most serious
consequences would ensue. Fully 97% per
cent of our entire currency would be with
drawn from circulation and the complete
paralysis of business would Immediately
follow"
This speech, it will be conceded, touches
the vital issue involved in the controversy.
1t concerns the business interests of the
people very little to know whether the
unit of value established at the formation
OF the Union was of silver or of gold, or
whether the demonstration of silver in
1873 was the result of conspiracy. 1t is a
matter of very great concern, however,
whether Mr.. Smiths predictions are well
founded or not. If the RECOMMENDATION of
silver would produce even half the i'll
effects he prophesies then it would be-
hoove our lawmakers to be careful before
they undertook it.
While the gold standard men have often
made the predictions Mr. Smith repeated,
they have never given any valid reasons
to support them. That change in the
monetary or currency system Of a country
is not in itself sufficient to produce dis
aster is made evident by the experience of
VIC GdotCll DtdtSo III passing mum q
specie basis to the use of greenbacks dur
ing the war and reversing the process
when the war closed. There was no paraly-
sis of business following the resumption of
specie payment, and no apparent reason
on the face of things why there should be
such paralysis on the resumption of bimet-
allism.
The assertion that the reconciliation OF
silver would set people to boarding gold
raises the inquiry of what purpose there
would be in the boarding. Men would not
then need gold so much as they need it
now. Why would they be likely to hoard
it when it is not needed for money, if they
do not hoard it when it is needed for
money? Why would men hoard green
backs and treasury notes in the expecta-
ton that the country would return to the
gold standard, if they did not hoard them
in the years when it was known positively
that the country would return to specie
payment?
1t is the argument of the bimetallists
that the reconciliation of silver would
increase the demand for that metal and
diminish the demand for gold, thereby
raising the price of the one and lowering
that of the other. This argument is based
upon the known facts of commercial ex-
perience and the established laws of eco
nomics. Those who hold that the contrary
effects would take place, and that gold
would rise because there was lessened