The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1895-08-13

Harvey Further Elucidates the Principle
of Scientific BimetaIlism, and Claims
That 81, 500, 600, 900 in Primary Money Is
Needed to Do Business In This Country
ON safe b ,sis--Horr Goes Largely Into
Comparative Prices of Products.
Copyright, 1885,, by Azel f. Hatch.l
In opening the seventh days debate on
silver Horn referred to a statement made
by Harvey that silver dollars of 41211
grains standard silver were coined in
1874 and 1874 for the people OF Nevada,
Colorado and perhaps California out of
silver produced in the United States and
under the free coinage law. Horr said he
could not understand how it could be as
412H grains of silver were worth more un
coined than coined at that time. Horr
added that he had hunted the matter up
and found that the truth was this: "Con-
gress had previously provided that GER
tain foreign silver coins should be
redeemable at the treasury and the
several postoflices and land offices of the
government, at a certain fixed valuation.
In the second section of the act Of
February 81 1857, congress provided: And
be it further enacted that the said coins
when so received shall not again be paid
out or put into circulation, but shall be
recoined at the mint. And then the
director Of the mint also tells us that over
5000, 600 of silver had accumulated in the
minis found in the gold during the pro-
cess CT assaying It, The silver dollars
which you tried to account for were all
coined at the mint in Philadelphia, and
not from the silver taken to the mint by
our producers at all. Igive my authority
= 81 a IL, ~
States. And / defy my friend
Harvey to show any instance from
the report of the entire minis where after
1858 a dollar of our American product
was ever received for free coinage in any
mint in the United States"
Harvey replied: "Mr. Horn has per-
sistently quoted in this debate authori-
ties which he has not produced here in
this room. want that impressed on the
mind of the public He has Just made
statement with reference TO the coinage
of silver dollars that deny, and he can
not produce the authority here to prove
what he has said. / will only answer it
incidentally, but sufficiently. Inland Mr..
Horr the report OF the director OF the
mint for 1892, and call his attention to
Az, 462 silver dollars coined at the mint
at Carson City, New, in the year 1870"
He then proceeded with the argument in
relation to primary and credit money,
prefacing his remarks with the state
mepts that the change to gold standard"
1t should be stated that Harvey has
his whole argument prepared-written-
and at hand. Each chapter of his book
is taken up in its order and discussed.
All this matter was gotten up before the
debate began and the authorities he de-
ponds on are placed in their order among
his manuscript. Horr speaks without
notes and jumps from one part of the
'School" to another as he finds some
thing he takes issue with
Harvey then proceeded with his atgu.
ment in order taking it up where he
dropped it Tuesday afternoon. He said
San over.issue of Crepit money creates a
lack Of confidence In the ability of the
government to redeem it, and a strain on
its primary money begins. In other
words, it causes a run on the government
for the redemption of its credit money
This forces the government to issue bonds
TO borrow primary money. So long as
this unhealthy relative proportion of
credit money to primary money continues
. the run on the treasury will continue
and the borrowing by the government
must continue And the more it borroWs
the greater the strain, as the interest on
bonds demanded in primary money will
be an additional strain. This is what
Mr.. Cleveland calls an endless chain"
If at period like the present. when geld
only Is by law primary money, we in
crease the stock Of credit money by issu-
ing more paper money, or by coming
more silver as credit money (the way in
which it is now treated), we increase the
strain on gold and hasten the financial
chaos that must come. The quantity Of
gold now in the United States is various
~ estimated at from 800, 900, 900 to $780,
100000. The quantity of credit money
outstanding is about 81, 900, 0)O, 600 Hence
a surplus of from $40t,0O0 900 to $780, OO1,.
COO OF credit money is now in circulation,
and the run on the United States treasury
must continue till the credit money is re.
duced TO the quantity of gold in the coun-
try, or the stock of primary money is in
creased.
Each time a government gold loan Ia
made with, say, the Rothschilds behind
the treasury, temporary confidence will
be restored and prices will advance. The
government supplying itself with gold
causes the gold hOarders in the United
States to let their gold out. But as the
golden sand in the hour glass at Wash
ington runs out again, as it must,
scare returns, gold boarding begins again,
the demand for gold increases, and prices
oorrespondingly fall. The end is nation.
al bankruptcy. To correct this system is
national prosperity"
Horn then showed that Harvey had
mistated the facts when he said Az 462 in
silver dollars had been coined in the Car
son mint in 1870, and that it was H. 49,,
Harvey having read the dollar mark as
a figure -" Harvey admitted this, and
Horr went on; NOW this mint report
which he handed me shows that after 1870
up TO 1874, IN the entire mint In Carson
City there were only coined 10, 2sS of the
old silver dollars. The mint report will
show that those were coined from the
silver accumulated in assaying the gold
taken TO thai mint l now proceed to
state that up to this moment Mr. Har-
vey has not said one word upon the real
question in debate He speht hours to
prove that the law of 1873 was conceived
in sin and brought forth in iniquity
gave short succinct history OF the origin
- a