Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-12-04

/ P4SsiSlCS anu C4ukSCS W t1t QI1SEdIlQ0 o.
the laws of 1873 and 1890, compelling tht
purchase Of silver by the government
which not only furnished a new treas ur,
obligation upon which its gold could b,
withdrawn, but so increased the fear of n,
overa helming flood of silver and for, C
descent to silver payments that even tn,
repeal OF these laws did not entirely cur,
| the evils of their existence While / hav.
endeavored to make plain statement q
the disordered condition of our currency
and the present dangers menacing oul
prosperity, and to suggest way which
leads to Il safer financial SYSTEM ! have
constantly had in mind the fact that many
OF my countrymen. whose sincerity | dc
not doubt insist that the cure for the i'll,
now threatening us may be found in tbs
single and simple remedy of the free coin
age of silver. They contend that oui
minis shall be at once thrown open to the
Tree, unlimited and independent coinage
OF both gold and silver dollars of full legal
tender quality, regardless of the action OF
any other government and in full view OF
the fact that the ratio between the metal
which they suggest cills for 100 cents
worth of gold on the gold dollar at the
trinstc worth Of silver in the silver dollar
We're there infinitely strong + reasons Than
can be adduced for hoping that such &c
tlon would secure for us hi-motallic cur
rency moving on lines of parity, an expert
ment so novel and hazardous rs that pro
posed might well staggcr those who still
believe that stability is an Imperative
condition of sound money. No COVE rn
ment, no human Continuance or sct of
legislation has ever been able TO hold the
two metals together in free coinage at
ratio appreciably different from that
which is established in the markets Of the
world.
Those who believe that our independent
free coinage of silver at an artificial ratiu
with gold of l6 to | would restore the
parity between the metals, aud conse-
quently between the coins, oppose an IN
supported and improbable theory to the
general belief and practice of other nations
and to the teaching CT the wisest states
men and economists of he world both in
the past and present, and what is far more
conclusive, they run counter to our own
actual experiences. Twice in our earlier
history our law makers in attempting to
establish u bi-mctallic currency, undertook
free coinage upon ratio which accident
ally varied from the actual relative values
of the two metals not more than 3 per
cent In both cases, Notwithstanding
greater difficulties and cost of transporta-
ton than now exist, the coins whose in
trinsic worth was undervalued in the
ratio, gradually and surely dis appeared
from our circulation and went to other
,.o,t ri ,ybrrn hnjr tcnl hot
ter recognized.
Acts of Congress were impotent to
create equality where natural causes de
creed even slight inequality.
Twice i'll our recent history We have
sgnally failed to raise by legislation the
value of silver. Under an act of Congress
passed in 1878, the government was re
quired for more than II years to expend
annually at least s2i, 600, 600 in the pur-
chase of silver bullion for colt a ye. The
act of July Ii, 1890, in still bodcr effort
increased the amount of silver the govern
ment was compelled to purchase and
forced it to become the buyer annually of
81, GOO, 600 ounces, or practically the entire
product of our mines. Under both laws
silver rapidly and steadily declined in
value. The prophecy and the expressed hore
and expectation of those in the Congress
who led in the passage of the last men
toned act, that it would re-establish and
maintain the former parity between the
two metals. are still fresh in our memory.
In the light of these experiences, which
accord with the experiences of other ma
tions. there is certainly no secure ground
for the belief that an act of Congress could
now bridge an inequality of so per cent
between gold and silver at our present
ratio, nor is there the least possibility
that our country, which has less tina on
seventh of the silver money in the world
could by it action alone raise not Only our
own but all silver t. its lost ratio with
gold. Our attempt to accomplish this by
the free coinage OF silver at ratio differ
ing widely from actual rcaltivc values
would be the signal for the complete de
parturc of gold from our circulation, the
immediate and large contraction of our
circulating medium, and shrnkage in
the real value and monetary efficiency of
all other forms of currency as they settled
to the level of silver recommendation
Every one who receives fixed salary and
every worker for wages would find their
dollar in his hand ruthessly scaled down
To the point of hitter disappointment if
not to pinchirg prlvation. A change in
our standard to silver monometallism
would also bring on n collapse Of the en-
tire system of credit, which. when based
on standard which is recognized and
adopted by the world of business, Is many
times more potent and useful than the
entire volume of currency and is safely
capabl of almost indefinite expansion to
meet the growth of trade and enterprise.
In self invited struggle through dark
ness and uncertainty our humiliation
would be increased by the consciousness
that we bad parted company with all the
enlightened and progressive nations of the
world and We're desperately and hopelessly
striving to meet the stress of modern com
merce and competition with "A debased
and unsuitable currency and in associa
tion with the few weak and laggard ma
lions which have silver alone as their
standard of value
All History Warns Us
against rash experiments which threaten
violent changes in our monetary standard
and the degradation of our currency.
The past is full of lessons teaching not
o1ly the economic dangers, but the Da-
tional immortality that follows in the train
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