Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1895-08-07
FOR SOUND MONEY.
HON. HOKE SMITH SPEAKS AT
GAINESVILLE GA

Tells OF Some OF the qnevitabl'
Effects OF Free Coinage at t6 TO L
The following is a part Of Secretary
Hoke Smiths speech at Gainesville,
Ga, on July %:
The value Of silver bullion has fallen
since 1873, on account Of the lessened
cost Of production, on account Of the
enormous increase in production, and
on account Of the decreased demand.
All Of these elements entered into and
helped 70 cause the reduction oftbe
value Of silver.
To restore the price Of silver 10 its
value in 1878 YOU must remove all the
causes which have reduced its value.
COncede for the sake of argument that
the actor Of the United States was
one Of those causes. it is illogical to
claim that The removal Of this one Is
to remove the effect of all the others.
Bat il is urged that the United
States should try the experiment. and,
II il failed, then abandon it. or change
the ratio. The facts stated show cOn-
clusively in advance that it must fail.
To lift the value Of 4l2l grains Of sill
yer in the United States from 80 to
100 cents il would be necessary TO lift
the value Of all the silver in the world
to the same extent, less the cost Of
transporting it to the United States.
That volume to-day, coined, Is S4,-
O5l. 700, goo. If the burden were only
to raise the commercial value of
the coined silver, in those coun-
tries where it was dropped, to bullion
value, the undertaking would still be
clearly impossible. India has $3.50, OOO,-
600; China, $3.50, 900, 900; Japan, ST.
600, 900; Mexico. $50, 000, 900; South
American States, $50, 900, 900. A to-
tai Of 81, 1852, 900, 600 Is used by these
countries alone. This silver, though
coined. eirculates only at its bullion
value. In addition 70 this, al the
silver mines afford 10 continue in
creasing their production, as they
have, from ISL, OO0. 900 in 1873, TO
s2144 S1, 600 in 1890 on a market
which has risen 100 per cent? The
volume TO be raised in value extends
to the earth deposits as well as to that
heretofore mined.
We we're unable to keep the value
Of silver up to gold under the Free
Coinage act Of 1892. We were IN
able toikeep gold up TO silver under
the Free Coinageact Of 1854. France
and her associates in the Latin Union
found themselves unable TO keep sill
yer up to gold in 1874. The failure
Of these practical tests, under far
more favorable circumstances than
thoseof the present, demon how
how ridiculous is the claim of the sill
yer advocates.
These facts, fairly considered by
any one, viii bring the conclusion that
frle coinage at Is TO l means the use
Of no coin but silver; means a new
standard of measure equal in value TO
the present commercial value of the
bullion now put into a silver dollar
means a new dollar worth only APP
Nproximately half as much as the pres
n dollar, and the measure OF all
ues by this new standard.
The immediate effect of the election
bf a President committed to such a
policy would be the separation of the
goli and silver dollar, the gold dollar
going topremium Of about two for one.
We would lose at once S67S, 900, 900
Of gold now In circulation and now in
the Treasury. The greenbacks and
Treasury notes-S375, 900, 000-which
would still remain outstanding. would
be boarded, in the hope that a free
silver bill, If passed at all, would be
soon repealed. This would take place
Immediately after the election of a
President in November, 1896, and
probably even after the nomination
by either of the great parties OF a free
silver candid ate. The new President
could not be inaugurated until March
4, 1897. During the six months or
more before il would be possible TO
pass free silver legislation the con-
traction Of the currencyiust described
would precipitate the most serious
consequences. Those owing gold
obligations would put a strain upon
the remaining silver currency and
bank notes, to bay gold to meet their
gold obligations.
The currency, consisting Of checks
and bills Of exchange, amounting TO
95 per cent. of our entire currency,
would 60 ont of use in consequence of
loss Of confidence and credit, AMI the
result would be the withdrawal OF 97}
per cent Of our entire currency and
the paralysis of business would imme-
diately follow. Banks would be
raided by their depositors.
Creditors would seek 20 enforce
their debts before the reduction Of
the standard 10 the silver basis. No
extension OF debts would be given to
anybody, except where payable in
gold 81 increasing rates Of interest.
Long time debts are IN gold. The
amount to be paid on them would not
be reduced. Indebtedness not pay
able In gold would be collected at
once OF the property owned 10y the
debtors taken from them. Merchants
would fail, workmen be idle, farm
products without a market, and pow
erty and distress found on all sides.
do not believe that "a President
would ever approve such legislation,
elected upon a platform with a Con
eress pledged to pass 1t. The calam-
itOus effects following such an election
would bring to them the prayers Of
the very men who elected them, APP
pea.ing for the defeat OF such legisla-
tio1. But If such a law should pass 1t
wohld not be until the later part Of
1871. Then a general adjustment to
the new standard would be necessary.
Prices being temporarily reduced on