The herald., 1895-12-04

issue of bonds was made. such surplus
amounted to over SlS, 600, 00) in Novem
bsr. when the second issue was mad :, 1t
amounted 70 more than $42. 90, 1000 in
February, 1895. when buds for the third
time were is ucJ. ench surplus amounted
to NOR. than 500, 900, 900 ii now amounts
to$9S, 072, 1907
Besides ali this, the secretary OF the
treasury has no authority whatever to
issue bonds to increase the orr mary rev.
euties or pay current expenses. | cannot
but think there has been some confusion
of ideas regarding the effects of the issue
of bonds and the rasults OF the with.
drawal Of gold. 1t was the later prices
and not the former that by substituting
in .hs treasury United States notes for
money when was in the first instance
subject 20 ordinary government expcndi
lures. Although the law compcllinbg an
increased purchase OF silver by the gov
eminent was passed on the nth day of
July, 1890, Withdrawals OF gold from the
treasury upon the notes given in pay.
ment on such purchases did not begin
until October, 1o91. Immediately follow
ing that date the withdrawal upon both
Theses notes and United states notes in
creased very largely, and have contind Jed
to such an extent that since the passage
OF thac law mUrU than Thirteen times as
much gold taken out Of the treasury upon
United States and treasury notes issued
for silver purchases rs was thus with
OTTAWA du ing tie eleven anu half
years Immediately prior thereto and after
the LIST of January, 1873, when specie
payments we're resumed.
1t is nett Ter unfair or unjust to charge
q large share of our present financial per.
lpexigi~s and dangers to the operation OF
the laws of 1878 add 1890 compelling the
purchase of silver by the government,
which not only furnished new treasury
obligation upon which its gold could be
Withdrawn, but 80 increased the fear oil
an Overwhelming Hood OF silver and
forced descent to silver payments That
even the repeal OF these laws did not en-
tirely cure the evils OF their existence.
While | have endeavored to make PLAN
statement Of the disordercd condition Of
our currency and the present dangers
menacins our prosperity and to suggest
way which LEAFS to surer fnan ,ial sys
tom.
FREE COINAGE QUESTION.
have constantly had in mind the fact
that many Of my countrymcn, whose sim
cerity do net doubt, insist that the euro
for the ills now threatening us may be
fouuu IN the single and simple ,emedy of
the free coinage of silver. They contend
that our minis shall be at once thrown
open to the free, unlimited and indapend
cnt coinage Of silver, both gold and silver
dollars of full legal tender quality, regard
less of the action Of any other govern.
ment, and in full view Of the fact that
the ratio between the metals which they
suggest calls for 100 cents wo.th OF guild
in the goih dollar ct the present standa'd
and only so cents intrinsic worth of sill.
yer in the silver dollar. We're there in
iinitcly stronger reasons than can be Hd-
ducei for hoping that such ton would
secure for US a bimetalllu currency NOV
ing on lines OF parity, an experiments 30
novel and hazardous as that proposed
might well Btagger those who believe
that stability is an imperative condition
of sound money. No government, no
human continuance or act OF legislation
has ever been able to hold the two met Is
together in FREQ coinage at a ratiu apprs-
cialby different from that which is estab-
lished in the markets OF tue world.
THE POWER OF LAW.
Those VITO believe that off independent
free coinage Of silver at an artificial ratio
OF 16 to would restore the parity be-
tween the metals, and. consequently. be-
tween the coins, oppose an unsupported
and improbable theory to the general be-
lief and practice of other nations and to
the teaching Of the wisest statesmen and
econqmists OF the world, both in the past
and present, and what Is more conclus.
i've, they run counter to our own actual
experiences. Twice In our earlier history
our Lawmakers in attempting to estab-
lish bi-metalhc currency undertook free
coinage upon ratio which accidentally
become the actual relative values Of the
two metals not mors than , per cent.
IN both cases, Notwithstanding greater
d fficulties and cost OF transportation
than now exist. the coin whUse intrinsic
worth was undervAiued in the ratio,
gradually and surely disappeared from
tries whers their real value was better
recognized. Acts of congress are impn-
tent to create equality VIII gro natural
cauaes decree even slight equality.
Twice in our recent history we have sig
nally failed to raise by legislation the
passed in 1878 the government was re-
quired for more than twelve years to ax-
pend annually at least 1874, 900 600 IN this
purchs e OF silver bullion for coinage.
The act of July a, 1894, i'll a still
bolder effort, increased the amount of sill
purchase aud forced it to become the
buyer annually OF 54,000,0U0 ounces or
practically the entire product of our
mines. Under both laws silver rapidly
and steadily declined in value. The
prophecy and the expressed hUpe and
expectation VI buOSe congresses VINO leu
in tho passage OF the last mentioned act
that 1t would re-establish and MAINTAIN
former par ty between the two metals are
still fresh in ur minds. In the light Of
those experiences which accord with the
experiences Of other nations, there is GER
tainly no secure ground for the belief
that an act Of congress could now bridge
a inequality OF 80 per cent between gold
and silver at our present ratio, nor is
there the least pOssib, ity that our coun-
try, which has less than one.sevsnth OF
the silver money in the orld could by
it's action alone raise not only our own,
bat all silv y to its lost ratio with gold.
Our attem ut to J.lish this by the
free coinage of silver at q ratio differing
widely from actual relative value, would
be the signal for the complete departure
of gcli from our circulation, the i'm
mediate and large contraction OF our cir
culating medium ana shrinkage in the
real valve and monetary efficiency of all
other forms of CURRENCY as they settled
to the level of silver m nometallism.
Everyone who receives fixed salary aud
every worker would find tho dollar in
his nand ruthlessly scaled down to a
point IF bitter disappointment, If mt to
pinuning privatiun. A chan.e in our
stan ard to silver nonometailism would
also bring on COLLAPSE Of the entire sys.
tenn of credit which is on sandard
which is recugnize and aiopted by the
world of buine in many times more pu-
tent and useful than the entire volume of
curr my, and is safely capa ole of almost
indefinite eApansion TO meet the growth
Of trade and terprlse.
In o self.invited struggle, through dark