Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1895-12-07

Besides all THIS the secretary OF the treasury
had no authority whatever TO issue bonds to
increase the ordinary revenue or pay current
expenses can not but think there has been
some confusion OF ideas regarding the effects
OF the issue OF bonds and the results OF the
withdrawal Of gold. 1t was the latter process
and not the former that by substituting in the
treasury United States notes and treasury
notes for gold Increased by their amount ths
money which was In the first instance subject
TO ordinary government expenditure.
WHEN THE WITHDRAWALS BEGAN
Although the law compelling an increased
purchase OF silver by the government was
passed on the l4th day OF July. 1890. with
drawals OF gold from the treasury upon the
notes given in payment on such purch ses did
not begin until October. 1891 Immediately fol-
lowing thatlda the Withdrawals upon both
these notes and United States notes increased
very largely, and have continued TO such an
extent that since the passage OF that law there
has Deen more than thirteen times as much
gold taken out OF the treasury upon United
States notes and treasury notes issued for sill
yer purchases as was thus Withdrawn during
the eleven and half years Immediately prior
thereto and after the Jst day Of January, 1879,
when specie payments were resumed.
CEARGEABLE TO THE EsiLvER-PURCHAsE LAWS
1t Is neither unfair nor unjust to charge o
large share OF our present financial perpiexi-
ties and dangers to the operation OF the laws OF
1873 and 1890, compelling the purchase OF silver
by the government, which not only furnished o
new treasury obligation upon which its gold
could be withdrawn, but so increased the fear
OF an overwhelming tood OF silver and forced
descent TO silver payments that even the re-
peal OF these laws did not entirely cure the
evils OF their existence.
AS TO FREE COINAGE OF SILVER.
While have endeavored to make plain
statement Of this. the disordercd condition Of
our currency and the present dangers menace
ing, our prosperity, and to suggest way
which leads TO safer financial system,
apt1 1nA tn, .tpaN N1,<,f liant Shnt
many Of my countrymen whose sincerity 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 coinage of silver.
They contend that our mlnts shall be at once
thrown open to the free, unlimited and indc-
pendent coinage Of both gold and silver dol
lars 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
metals which they suggest calls for one hun
dred cents worth OF gold in the gold dollar at
the present standard and only nifty cents In
IN Intrinsic worth OF silver in the silver dollar,
were there Infinitely stronger reasons than can
be adduced for hoping that such action would
secure for us bimetallic currency moving on
lines OF parity, an experiment so novel and
hazardous as that proposed might well stagger
those who believe that stability Is an impera-
tive condition OF sound money.
No government, no human contriyance or
act OF legislation has ever been able to hold
the two metals together in free coinage at
Is established In the markets OF the world.
A HAZARDOUS EXPERIMENT
Those who believe that our independent free
coinage OF silver at an artificial ratio with gold
OF 10 to would restore the parity between the
metals, and consequently between the coins,
oppose an unsupported and improbable theory
to the general belief and practice OF other na-
tions and to the teaching Of the wisest states
men and economists OF the world, both in the
past and present and what is far more con-
elusive. they run counter to our own actual ex-
perences, Twice In our earlier history our
Lawmakers, In attempting to establish BIZ
metallic currency. undertook free coinage up
on ratio which accidentally varied
from the actual relative value OF the
two metals not more than 3 per
cent. In both cases, Notwithstanding
greater difficulties and cost Of transportation
than now exist the coins whose intrinsic worth
was nndervalued In the ratio gradually and
surely disappeared from our circulation and
went to other countries where their real value
was better recognized. Acts OF congress were
impotent to create equality where natural
causes. decreed even slight inequality.
Twice in our recent history we have signally
failedtc raise by legislation the value OF sill
YER Under an act Of congress passed in 1873,
the government was required for more than
twelve years to'expend annuallya az least i24,OV,-
tV2 in the purchase OF silver bullion for coinage.
The act o.; July "a, 1897 in still bolder effort,
Increased the :.2ount Of silver the govern
ment was compelled to purchase and forced 1t
to become the buyer annually Of 5i,000,0O0
ounces, or 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
last mentioned act that it would rc-establish
ami maintain the former parity -between the
two metals, are still fresh in our memory.
IN THE LIGHT OF PAST EXPERIENCE
In the light Of these experiences which ac-
cord with the experiences OF other nations
there is certainly no secure ground for the be-
lief that an act OF congress could now bridge
an inequality of 50 per cent between gold and
silver at our present ratio, nor is there In the
least possibility that Our country, which has
less than one-seventh of the silver money in
the world, could by It's action alone raise not
only our own but all silver TO It's 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 the complete departure OF gold
from our circulation, the immediate and large
contraction OF our circulating medium and
shrinkage in the real value and monetary eff
cheney OF all other forms of currency as they
settled to the level OF silver monometallism.
Everyone who receives fixed salary and
every worker for wages would find the dollar
in his hand ruthles ly scaled down to the point
OF bitter disappointment II not to pinching
privation. A change in our standard to silver
monometallsm would also bring on collapse
Of the entire system Of credit which when
based on a standard which is recognized and
adopted by the world of business is many
times more useful than the entire volume Of
currency, and Is safely capable Of almost in
definite expansion to meet the growth OF trade
and enterprise
In self-invited struggle through darkness
and uncertainty, our humiliation would be in
creased by the consciousness that we bad
parted company with nll the enlightened and
progressive nations OF the world, and were
desperately and hopelcssly striving to meet
the stress OF modern commerce and competl-
tion with debased and unsuitable currency,
and In association with the few weak and lag
gard nations 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 de-
gradation OF our currency.
NATIONAL FINANCIAL HONOR INVOLVED.
Our couatry's Indebtedness, whether owing
by the government or existing between indi-
viduals, has been contracted with reference TO
our present standard. 10 decree by act OF con-
gress that these debts hall be payable in less
valuable dollars than those within the rontem-
plation and intention Of the parties when con-
tracted would operate to transfer, by the Hat
OF law and without compensation an amount
OF property and volume Of rights and inter-
ests almost incalculable. Those who advocate
blind and head.ong plunge TO free coinage in
the name OF bimetallism and protesting the
belief. contrary to all experience that We
could thus establish q double standard and u
concurrent circulation Of both metals in our
coinage are certainly reckoning from cloudy
standpoint. Our present standard of value is
the standard OF the civilized world and permits
the only bimetalliSm now possible, or at least
that within the Independent reach OF any single
nation however powerful that nation may be.
While the value OF gold as standard is stead
led by almost universal commercial and busi-
n IS use, IL does not despise silver nor seek its
banishment. Wherever this standard is main
tanned. there by its side, in free and unques-
toned circulation, Is found a volume OF silver
currency, so netimes equallng, and sometimes
even exceeding II In amount, both maintained
NJ parity Notwithstanding o depreciation or
fiuctuation in the intrinsic value OF silver.
STANDARD MUST BE FIXED AND CERTAIN.
There is u vast difference between a standard
Of value and a currency for monetary use The
standard must necessarily by fixed and cer-
tain. The currency may be in diverse forms
and Of various kinds. No silver standard coun-
enlightened and wise system Of finance
secures the benefits OF both gold and silver as
currency and circulating medium by keeping
the standard stable and all other currency at
par with 1t. Such system and such stand
ard also give free scope for the use and cxpau-
sion Of safe and conservative credit so indis-
spensible to broad and growing COM
mercial transactions and so well sub
stituted for the actual use OF money
II affixed and staple standard Is maintained
such as the magnitude and safety Of our COM
mercial transactions and business reQui re, the
use Of money itself is conveniently minim-
lied.
have ventured to express myself on these
subjects with earnestness and plainness Of
speech because can not rid myself OF the be-
liDf n thpr nr In tnn f.Nr ha