The morning times., 1895-12-04

IifsASe-l - AA~S ~ - NoA~ e0> csAA b~~S
1t is possible that the suggestion of in
creased revenue as remedy Tor the dill-
culties we are considering may have origt-
mated in an lntimation or distinct allega-
ton that the bonds which have been Issued
ostenslbiy to replenish our gold reserve
were really Issued 10 supply insuilclene
revenue. Nothing eau be further from the
truth. Bonds were issued tn obtain Roid
for the maintenance Of our national credit.
AS has been shown. the gold thus nD-
Treasury upon United States notes and
Treasury notes This operatio Ion would
have been promptly prevented VI possiole:
but these notes having thus peen zen ,sSe1 pasSe1
OF the government, like auy other ordinary
government funds, and there was nothing
to do but to use them ~ paying soVern-
ment expenses when needed.
At no time when bonus nave been Issued
has there been any consideration OF the
question or paying the expenses OF govern
nent with their proceeds. There was no
necessity 10 consider that question. Al the
time OF each bond Issue We had a safe sur
plusln the Treasury Tor ordinary operations,
exclusive OF the gold in our reserve. In Feb
ruary. 1894, when the first issue OF bonds
was made. such surplus amo united to over
SIS 100000. in November, when the sec
ond Issue was made, IL amounted to more
than S4z, ,0CU, 600, and in February, 1885.
when bonds for the third time were Issued.
such surplus amounted to more than $780,
600 900. 1t now amounts to $ss.O72.-
420.30.
Besides all this, the Secretary of the Treas
ury had no authority whatever toissue bonds
TO increase the ordinary revenues or pay
current expenses.
l cannot but think there has been some
confusion or ideas rega riding the effects OF
the issue of bonds and the results of the
withdra wal of gold. 1t was the latter pro-
cess and not the former that by substituting
In the Treasury United States notes and
Treasury notes for gold increased by their
amount the money which was In the flrst
instance subject to ordinary government
expenditure.
WITHDRAWALS OF GOLD.
Although the law compelling an increase
purchase of silver by the government was
pa ssed on the 4th day OF July, 1880, with
drawals of gold from the Treasury upon
the notes given in payment on sucn pur
chases did not begin until October 1891. I'M
mediately following that date the with
urawals upon both these notes and United
States notes increased very largely, and
have continued 10 such an extent that since
the passage oftthe law there has been more
than thirteen times as much gold taken
out OF the Treasury upon United States
notes and Treasury notes issued for silver
purchases as was thus withdra wn during
the eleven and 4 half years Immediately
prior thereto and after the 1st day OF Janu-
AIRY, 1873, wien specie payments were re-
sumed.
II is neither unfair nor unjust to charge
a large share OF our present financial per-
plexities aud dangers to the operation of
the laws of 1875 aud 1890 compelling the
purchase of silver by the government,
which not only furnished new Treasury
obligation upon which its gold could be
Withdrawn bat so increased the fear OF an
overwhelming flood of silver and forced
descent TO silver payments that even the
repeal of these laws did not entirely cure
the eyil OF their existence.
While l have endeavored to make plain
statement of the disordered condition Of
our currency ana the present dangers men-
aciug our prosperity, and to suggest a way
wnicn leads TO a SAFER Iinanciiti system. 1
have constantly had In mind the fact that
many of my countrymen, whose sirEerity
do not doubt, insist that the cure for the
Ills now threatening us may be found In the
single and simple remedy of the free COIN
age of silver. They contend that our miDts
snail he at once thrown open TO the free,
Unlimited and independent coinage of both
gold aud silver dollars OF full legal tender
quality reg rdIeSs of The action Of any other
government and IN fuii view OF the fact
Ti,at tue ratio between the metals which they
suggest calls for one hundred cents worth
of gold in the gold dollar at the present
standard and only fifty cents in Intrinsic
We're there infinitely stronger reasons
thap can be adduced for hoping that such
action would secure for US bimetallic cur
reDcy moving on the lines OF parity, an
pxperjne mt so novel and hazardous as
that proposed might well stagger those
who believe that stability is an imperative
condition of sound money.
No government. no human contrfyance or
act OF legislation, has ever been able to
hold the two met ais together IN free
coinage at ratio appreciabiy different
from that which is established in the mar
kets OF the world.
RESTORE THE PARITY.
Those who believe that our independent
free coinage OF silver at an artificial ratio
with gold of 16 10 / would restore the
parity betw the metals, and conse-
quently between the coins, oppose an un-
supported and improbable theory to the
general belief and practice of other na-
Ions, and to the teaching OF the wisest
statesmen and economists of the world.
both in the past and present, and, what
is far more conclusive, they run counter
10 our own actual experiences.
Twice in our earlier history our la w.
makers in attempting to establish BIZ
metallic currency undertook free coinage
upon q ratio which accidentally varied
from the actual relative values of the
two metals not more than three per cent.
In both cases, Notwithstanding greater
difficulties and cost of transportation than
now exist, the coins whose Intrinsic worth
was undervalued in the ratio, gradually
and surely disappeared from our circu-
lation anu went to other countries W here
their real value was better recognized.
Acts of Congress were impGl eat to create
equality where natural causes decreed even
slight inequality.
Twice in our recent history we bave Sig
nally failed to raise by legislation the value
of silver Under an act OF Congress passed
in 1878 the government was required for
more Than Twelve years TO eSpend annually
at least S24 900 900 in the purchase of sill
yer bullion for coinage. The act of July A.
1890, in a still bolder effort increased the
amount OF silver the government was COM
PEELED to purchase, and forced II 10 become
the buyer annually of b4,O0O,000 ounces.
OF practically the entire product of our
mines. Under both laws silver rapidly and
steadily declined in value. The prophecy
and the expressed hope and expectation OF
those in the Congress who led in the passage
of the aforementioned act, that it would re-
establish and maintain The former parity be-
tween the two metals. still fresh IN
memory
In the light OF these experiences, which
accord with the experiences of other ma
tons. there is certainly no secure ground
Tor the belief that an act of Congress could
now bridge an inequality of 80 per cent be-
tween 1--WE IN g1id @ and nd, silver at our present ratio:
country, which has less than one-seventh
OF the silver money in the world. could by its
action alone raise not only our own, but all
silver to Its lost ratio with gold.
Our attempt to accomplish this by the
free coinage Of silver at ratio differing
widely from actual relative values would
be the signal for complete departure OF
gold from Our circulation, the immediate
and large contraction of our circulating
medium. and shrinkage In the real value
and monetary efficiency of all other forms
of currency as they settled to the level of
silver monOmetallism. Everyone who re-
ceives fixed salary and every worker FOR
wages would find the dollar in his hand
ruthlessly scaled down to the point of bitter
disappointment If not to pinchinR priva-
ton.
SILVER MoNoAfETALLLIsM.
A change in our standard to silver mono
would also bring on collapse of
the entire system of credit, which, when
based on q 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
capable of almost indefinite expansion to
meet the growth of trade and enterprise. In
q seif-nvlteG struggle through dar kness and
uncertainty our humi liation would be
increased by the consciousness that we