The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1895-05-08
Secretary Smith on Silver.
Fearful Of Silver Monomet.
alllsm.

MACON, VA ipIll
uoke Smith of the Interior Depart
ment was interviewed here to-day by
a representative Of the Telegraph on
the financial question and defined the
differences of opinion on the cur
rency question existing in the coun-
try at present. He thought that dur
ing the next twelve months a
thorough discussion of the money
question would be presented all over
the country. This discussion Will!
be limited, he thought, to the pro-
position of the unlimited coinage Of
silver at a ratio Of l6 to ] The
Secretary divided the people into
three classes: gold monometallists,
silver monometallists and bimetallists.
He did not think that the gold mono
metallists were enough to become a
factor in the campaign, but that the
issue would be for and against mono
metallism. He thought that the free
and unlimited coinage of silver at
the present ratio by this country
alone would mean nothing more nor
less than silver monometailism. for if
under that system the price of silver
bullion did not materially advance,
no other metal would be presented at
the mints for coinage
The real question, the Secretary
thought, was whether or not the free
and unlimited coinage Of silver at a
ratio of ]6 to l would advance the
price Of silver bullion 80 that it
would bear the relative value to gold
of Is to l.. which is the proposed
ratio. If it would not, then the
country would not have a bimetallic
currency.
The Secretary reviewed the his
tory of the country's currency and
said that both Jefferson and HamiI-
ton recognized the fact that the ratio
of coinage must be fixed upon the
commercial value of the metals in
the market. In 1878, when free
coinage was suspended by the
United States, the silver in a dollar
was worth mole than the gold in a
dollar, but since that time the
demonstration of silver by other
countries has allowed its value to
drop to the price which it will bring
for manufacturing purposes The
value of an article must be controlled
by the demand for It's use and the
supply to be consumed. The facts
show that the demand has practically
ceased while the supply has almost
trebled. This is true in spite of the
fact that since 1878 the United States
has coined more silver than in the
eighty years prior to that time.
"Can auy one," asked the Secre-
tary, "study these facts without CON
Guiding that if this enormous issue
by the United States was insufficient
to steady the fall Of silver during the
past twenty years, unlimited coinage
by the United States alone would not
be sufficient to restore it's bullion
value now?
..tIt is therefore not offensive criti.
cism, but only a statement of logical
conclusion, when | insist that an
limited coinage Of silver at the ratio
of Is to ! means silver monometallism.
Under such a law, all the silver pro-
Duct IF the world would turn to our
mints, and then would come the sill
e heretofore manufactured into
cheap wares. Again, silver mining
would increase and the exhaustion of
resources would be threatened by the
exchange Of silver dollars for the bull
lion.
"With free coinage, we would vir-
tually change oar standard to enc
worth only one half the present stand
ard and the commercial value of a
dollar the world over would be only
fifty cents While commodities
might sell for twice as many dollars,
their real value would remain un-
changed. The entire country would
be confused, until by accurate test,
the true value of the new standard
was ascertained. The result would
be a cessation of trade and the eau.
tious business man would involve
himself in no contracts. This un-
certainty would create serious bust
ness troubles and the practical sus-
pension of all enterprises"
He could see no benefit from the
change and none especially to those
who worked for wages, because they
were always the last to be recognized
in increased wages under the use of a
deprecated currency. The proprie-
tor of an enterprise would insist that
employees take the risk. He did
not believe the change would benefit
the debtor class because so many