The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1895-08-12
HOKE SMITHS ABSURD STATEMENTS
Result from His Lack of Flnanclal
knowledge.

recent speech in Gainesville. mas uei iiS,..
started his zeal an echo or the auini.il
tration, even if the has failed 10 Sduisis
the educated reader of his knowledge Oh
the financial situation. His speech contains
much that is amusing and absolutely noun
ing that is Instructive.
1t is certainly a new proposition that the
stamp of the government does not give the
value to money, but the value OF the 'hihs
itself.
All lexicographers. designate money as
metals or paper coined by authority ana
having it's value from such authority MI
Smith appears to be ignorant or the TACT
that the price of commodities is anected
first by their scarcity or abundance ana
next by the volume of money In circula-
ton. This money may be scarce and at
the same time articles of merchandise may
rule at very high figure, for II there IS
a dearth of what we eat and drink and
wear-an insufficiency to supply the ordi-
nary demands of the pOpulation-thelr
value will enhance without regard to the
volume quantity of money in circula-
ton. IL Is only when the conditions are
normal that values are high. when money
is abundant and low when money is
scarce.
1t is not my purpose. however, to criticise
this portion of Mr. Smiths speech. What
i desire to call your attention to il some
of his Inconsistencies and contradictions.
He asserts that in 1878 the coined god in the
United States amounted to only SlS5, $4,000.
Considering that the great mass of gold
coined up to that time had been boarded
as result OF the suspension of specie
payment. there is reliable data upon
which Mr.. Smith or any other man could
estimate the amount OF gold in this cOun-
try at that time. In 1913 neither gold nor
silveT were in circulation. % likewise his
assertion that there Sb15, 100 of coined
gold in the United states at tnis time is
mere speculation. There is no sucE amount
of god IN the vaults OF the BANKS anu
treasury, the aggregate beng less tnan
SSUp,vpJ,VuJ, 80 THAI I.4or- JDan OHe-nalI OF
the estimate is founded upon me coinage
and upon what ought To De ana not what
there actually Is. 40 allowance Whatever
Is made Ior the enormous sums that nave
been used IN Jnc arts, II beng KNOWN tidt
many lniIIions Of our coined sd nave been
meIleu IOWA ana converted INTO JrHr.t
plate, etc Many miiilOnS nave inferred Odt
Of the country OF when There rs 10 TecOTu,
ana a still larger numDeT oil millions nave
been boarded and arr as a1soIuteIy icst 10
conmerce as hOuSh the metal had never
been mined.
but t.e most remarkable contradiction is
Mr.. smiths statistics for 1850. IN one part
OF his speech ne puts the total amount Oh
specie III circulation in mat year at >i5i,"Jt-
90, IN another part ne puts the HsdreS al
$2Ii,OU,C00 Tor sJiu and szi.ytNtaU Oh SILVER,
making a o,al specie circulation OF a5.vJu.-
ooJ, little difference OF some eIShty
millions. lie also pat the volume OF notes
IN circulation IN 1865 1T Sl3l,c3,VjJ. This
latter estimate, however. is based upon ia.
reports OF chartered banks AT d gwen Pc
Rod, but nowhere represents the true
! amount Of paper money in circulation, as
| prior to the war IN many OF tnc states pTi-
vate banks issued their notes which circu-
| lated AS mOn.y in their respective COM
/ munities, HSsreSauns many Missions of
collars, none oi when are IN Mr. smith
estimate.
Again. in some Of the states. and if 1 am
not mistaken, notably in Oieoria, the banks
were authorized TO issue three collars Of
| notes for every one dollar of specie In
| their vaults, and the volume of bank notes
| demand for money, the circulating medium
then Dcing 1eXibie instead OF pesng as AT
| present hXed ana practically uncnans a.
| bic.
| Mr.. Smith asserts that in 1888 S1}2, 90
| of gold coined. Who're does he get
| these statistics: This would represent me
| coinage OF nearly oue-thlr9 more than the
| production of gold and leave not an ounce
! OF the metal for the manufactures and
| arts.
In Gas remarkable speech he says that
! if there was Tree coinage OF silver the
| of all the silver Of the world aggregtt- Gang,
! in volume ovar four billions If dollars. ANA
| he ADDS: India has $.'50.yl1,eU; Chua,
| $50. u1o. 100. Japan, xi2NN,t-J. Mexico. $a'-
| p0W0. and The South American states,
| these countries alone. Fn!s silver. although
| coined, circula; only al Its bullion value
| Surely AIR. smith must nave known that
| when he asserted that the coined silver I'D
| these countries named circulated only at
| it's bullion value he stated what WAS not
true. In every one of the counties named
| is received ana paid out AT its face value
| ard Is worth ITS bullion value only in for
| eign countries where IL is not a legal ten
| der. Except IL India, every dollar oi the
| silver coined is still, as II always has been.
| the money Of the country, recognized as
| such by the law, while in India the ston-
| paSe OF the coinage of silver has not i'm
| terferred with the leCsi tender value O. the
| silver In circulation. NJ. smith. therefore.
not only pisstated the fact. but endeavored
| to persuade a presumably intelligent audi
! ence that the free coinage OF silver i'm the
I tod fat III
drawal from circulation in other countries
of all the coined silver in existence and the
praposterOuS and remarkable coming from
man who holds a cabinet seat i'm the al
| ministraton of the United states
Again. in order to back up his position.
he tells his hearers that while wheat was
1896 on the very days that ne mad" this
speech wheat was quoted IN ChlcaEO at
e6ssc or ls'ac less tnau Pee states. True
| there was a temporary enhancement OF the
price of wheat few %eeks ago, bat IL
rapidly fell ~ points, the incrca Sc neinE
solely the result az gambling i'm the wheat
pits. the producer not deriving one dollar
Of benefit from ii. SO. likewise, MS reference
to the increase in cotton from . 10 some
what under cents per poun1, could not
have impressed itself very seriously UYon
the farmers who produce The staple, rs 1hes
know that this increase has not benefited
them one dime. they having been previous
ly forced to sell the cotton at > cents or
one of the funniest statements of Mr.
Smiths speech was the paragrs pin i'm which
he says: 1T cannot be claimed that The
legislation of the United States In $50 Sc
riousiy affected the commercial value OF
silver for since that time we have fur
nished q market for SG02do1.G@ of silver
In 1878 the average of the silver dollar as
bullion was Sl.G16 or $l.3l per ounce; In 1898
1t is &c pc" ounce.
Mr. Smith seems to think that the legis-
lation which has forced to sell our
product OF silver for but a trifie over one
half what il selling for when legisla-
ton was had has not seriously affected its
commercial valUei 1t must certainly be
consoling to the cotton planters OF The state
Of Georgia to know that while their cotton
in 1873 was worth nearly double what Il :
now worth thBt they were able In 1884 TO sell
90C0.00 bales at an enormously reduced
price,
This is argument with a vengeance, IN
1850 the population Of the United States
Was a trife over 3LgG.0GC, and we then
raised nearly 5.GiN.0o1 bales of cotton. In
1895 with a population estimated at gcO91,-
O0e we raised 900cV0 bales, our Increase
OF population being greater than our in
crease of cotton. While the increased pOpu-
lation of the civilized world added to our
Increased population called for cotton sup
ply somewhat larger than was actually pro-
duced and yet fin1 the price OF the sta
Pile. instead Of maintaining itself reduced
to nearly one-nalf.
In other words Mr.. Smith ignores the
naturally Increased demand and mistakes