The herald., 1895-05-09

out more bonds he must sell them to the
Morgan -Rothschild people and nobody
else. The new bonds are selling today in
open market at 121H.. They cost the
syndicate 1O419, which would show pro-
fit Of II points in the operation. amount
ing in all to $40, $40, 600. 1t would not be
fair to say the syndicate made that much
out of the operation. but it is very safe
to estimate its profits at SO, 600, 900. The
syndicate is hurrying the completion of
its present deal with the government. 1t
deposited over $1,O0O,O0O today. which
will bring the reserve up to nearly $685.
900, 900. It will not have to complete
these payments until the 1st of August,
but the operation may be closed up within
few weeks. That will leave the syndi-
cate free field.
"The treasury is absolutely in their
hands until that date. If, from natural
causes or through chicanery and manip-
ulation, the administration is obliged to
issue another batch of bonds to maintain
the gold reserve, the sale must be made
to the syndicate that took the last
lssue''
WASHINGTON, May s.-Secretary
Morton has written a letter to James A.
Cherry of Denver, in answer to letter
from that gentleman criticising some
statements in the interview with the
secretary of agriculture printed two weeks
ago, which caused so much comment.
The secretary says Mr.. Cherry's version
of silver history is not true. He also
says: ."You employ over and over again
in your letter the two most common logi-
cal fallacies that enter into the speech of
argumcntative men everywhere, namely,
putting cause into the place Of effect and
assuming that because one thing hap
pened after another in point of time,
therefore it was the result of that other.
Let us look candidly together at the two
or three instances OF this, taken at ran
dom. You ask, What created demand
and answer, USE I ask in my turn,
What creates user and you answer De-
mand.'
"Why is there is so little use OF silver
dollars in this country today, while there
are millions upon millions of them lying
idle? / answer confidently because there
is no adequate demand for them. How
ever. you not innocently but badly mix
cause and effect in this case. De-
mand in the commercial sense is nothing
but desire for something on the part of
one man. coupled with his willingness to
pay something for 1t satisfactory to the
other who owns it. Use of that thing,
no matter what it is, only follows the
demand for it. You have helplessly
put the cart before tho horse. What is
the sense OF clamoring for unlimited
coinage when the treasury cannot get
rid by hook or crook OF these already
coined and lying in useless heaps? They
are we'll minted, of just weight, nine
tcnths fine, of legal tender for all debts
and bear the legend, In God We Trust.
What ails them? l answer, and so must
you, on ref ection, there is no demand
for them and therefore no 'use' for them.
What more can the law do for thom?"
DENVER. May s.-James A. Cherry, a
well-known lawyer, today mailed the fol.
lowing reply to the Letter addressed to
OF agrlcul ure, gave to the public yester-
day:
DENVER, Colo, May 8, 1895.
my Dear Sir:-You have my sincerest
thanks for your candid. lucid and courte-
Gus letter of the 1st inst.
"My reason for writing to you was to
get the honest conviction of an honest
monometallist.
"You have not helped me, Mr.. Morton,
as l hoped. You do not make is clear
that vaTues cannot be affected by legisla-
ton. You put silver with salt, sugar and
corn and say, The axiom applies to all
alike. that rot one of them could be
affected by legislation. 1t has seemed to
me that legislation could affect values
locally and generally.
"Did the fall of silver from 1873 to 1891
cause the legislation of 1873? You ask
what sent silver down in 1893 to "a cents
an ounce. Surely that fall in its value
was not the cause of legislation that pre-
ceded it. 1t was the effect of it. Take
the case of India again. Legislation
stopped the further coinage of silver, TAX
ing thereby part of the old demand and
use of silver away, and its fall was flashed
over the wires to the wounded producers
and debtors OF the world as instantly as
thunder follows lightning. In that case
we cannot get the cause and effect turned
around. The fall was the cffect-the
logical anu ulSJOTlCai cllcCts L Ou SHS-
gest that it may have been the legal rec
ognition of existing 1acts.' That that is
exactly what it was. Just AS legal recog-
milton of existing facts (f clearly un-
derstand your meaning) caused the fall OF
silver to "a cents.
Again. the senate OF the United States
passed bill in 1891 which provided for
the free coinage of silver in this country.
1t was believed that that bill would pass
the house, probably be signed by Presi-
dent Harrison and become law. Silver
Jumped within week from about 81
cents an ounce to III cents an ounce.
That rise. remember, was not confined to
this country. 1t made a corresponding
jump in Europe. We cannot get confused
over the proper place to put cause and
effect in this instance. Make siyer into
money, give 1T all its old uses and there
will be demand for it. How men would
work and sweat and risk for it, and what
Joy and good it would bring to the world.
You coin it and give it these ases and
will furnish the demand. 10 carry out
my part Of the contract l can get good
bondsmen. The princes Of maskers, Reed
and Mckinley. and the great unmaskcd
prince of the New York bankers associa-
ton will go bail for me, and ii fail in
my part of the contract they will carry
it out to your entire satisfa elton.