The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-04-03
A STRONG SHOWING.
PEACE WORSE THAN WAR.
Cost of the Gold Reserve.


The New York Evening Post, one of
the most fanatical and intolerant of
all the Gold-monometallists of the
country, on the 31st of October, 1893,
said that with the repeal of the sill
ver-purchase law we may look for an
Immediate revival of business activity
in every direction"
The repeal Of the silver-purchase
law was accomplished on the next
day, at 4:30 o'clock in the afternoon,
by the signature of President Cleve-
land.
Instead Of an immediate business
revival, the repeal was promptly fol-
lowed by further business depres-
sion, from which there has been no
recovery. The repeal was to arrest
the outflow of gold and turn the tide
in upon US; but instead of the tide be-
ing arrested or turned in upon us, it
set with Increased force and volume
outward. In the first week of Decem-
ber the export recon menced, and at
the end of that month had outrun the
imports to the extent of $9,424 900;
and in the thirteen months ending
December 81, 1894, the excess of eX-
ports over imports aggregated 90,636,-
900. Since that repeal, moreover, the
public revenues have steadily dimin-
ished until the Treasury staggers un
der an accumulation Of unSatis fed
and accumulating obligations now in
excess Of it's means of payment, re-
sponsibly stated at 100000, 900.
The public debt has been increased
500. 900 actually, and a contract
has been made for further increase
of $62, 100000. When this last trans
action is completed the increase in the
debt in less than sixteen months will
be 1852, 400, 900 at an average rate Of
interest in the neighborhood of four
and two-thirds per cent.
The foregoing statement illustrates
the character of the business "re-
vival" that followed upon the repeal
of the silver-purchase law, and the es-
tablishment of the gold standard, or
it's supposed es ia bills shment. The gold
standard in France, Germany and
Great Britain stands alone and is not
founded nor propped upon system Of
semi-annual or quarterly State loans.
This condition of the Treasury and
the country in a time of peace invites
comparison with a former period in a
time of war.
The Lincoln administration came
into power on the 4th Of March, 1861 .,
when the whole American people were
profoundly agitated by impending sec
tiOnal conflict; when the business dis
order was extreme; when the public
credit was at it's lowest. and the bank
ing system was widely disorganzed.
Within sixty days war had actual ly
broken out, and within twenty
months had extended itself over an
era of at least $50, 900 square miles, in
volving thirteen or fourteen States,
and the Federal army numbered
1000, ,0s0 men. A navy 43O vessels had
also been created which was blockad-
ing 1900 miles of coast lines.
At the end Of those twenty months
-on the 4th of December, 1s62-Mr.
Secretary Chase made a statement to
Congress. the salient points of which
were these: That not single reQui-
sition from any department of the
government upon the Treasury re-
mdlIleu uUduSWcIou. LfCTy duulU Ucu
and settled claim, and every quarter
masters check for supplies furnished
that had reached the Treasury had
been paid, and there remained on that
day an unexpended balance of more
than thirteen millions of dollars! The
increase in the public debt in the
meantime had been $438, 900, 900 Gts to-
tai was 1914. 100000, Of which $75 1000.
600 had been left over from the Bu-
chanan administration), and the aver
age rate of interest paid upon it was
four and three-fifths per cent. The
business of the country was in state
of high activity, partly due of course,
to the demands upon industry for war
purposes. but due more than that to
another and far more potent cause.
An increase in the circulating money
of the country. Within the last six
teen months not only relative. but
an actual diminution in the money
of the country has taken place, with
it's corresponding evils Of failing indus
tries and commerce, the enforced idle
ness of million and half or two
million of workers. diminished public
revenues and an enlarged public debt.
"However some may doubt the bene.
fits Of an increase in the currency