Eagle River Democrat. [volume] (Eagle River, Vilas County, Wis.) 1893-1896, 1895-12-09


sequences except such change in our f1nan-
cal methods as will reassure the frightened
and make the desire for gold less intense.
1t is not clear how an increase in revenue,
unless it be in gold, satisfy those whose
only anxiety is to gain gold from the govern
ment's store. It cannot, therefore, be safe
to rely upon increased revenues as cure
for our present troubles.
It is possible that the suggestion of in
creased revenue as remedy for the diff
cultieS we are considering may have origin
ated in an intimation or distinct allegation
that the bonds which have been issued os-
tensibly to replenish our gold reserves were
really issued to supply insufficient revenue.
Nothing be further from the truth.
Bonds issued to obtain gold for the
maintenance of our national credit. AS mas
been shown, the gold thus obtained has been
drawn again from the treasury upon United
States notes and treasury notes. This opera
ton would have been promptly prevented
if possible, but these notes having thus been
passed to the treasury, they became the
money of the government like any other or
binary government funds and there was
nothing to do but to use them in paying gov
eminent expenses when needed.
At no time when bonds have been issued
has there been any consideration Of the ques-
ton of paying the expenses of government
with their proceeds There was no necessity
to consider that question At the time OF
each bond issue we had safe surplus IN
the treasury for ordinary operations, exclu-
sive of the gold in our reserve. In February
1894, when the first issue of bonds was MADE,
such surplus amounted to over $lSO0O,O O0;
in November when the second issue was
made, it amounted to more than $42,O0OO0o,
and in February. 1895, when bonds Tor the
ed to more than 500, 900 900. 1t now amounts
to $685. OH, 80. Besides all this, the secre-
tary of the treasury had no authority what
ever to issue bonds to increase the ordinary
revenues or pay current expenses.
I cannot but think there has been some
confusion of ideas regarding the effects OF
withdrawal of gold. 1t was the latter process
and not the former that by substituting IN
the treasury United States notes and treas
ury notes for gold, increased by their amount
the money which was in the first instance
subject to ordinary government expenditure;
Although the, law compelling an increased
purchase of silver by the government was
passed on the 14th day Of July, 1890, with
drawals of gold from the treasury upon the
notes given in payment on such such purchases
ately following that date the withdrawal 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 been more than thirteen
times as much gold taken out of the treas
ury upon United States notes and treasury
notes issued for silver purchases as was thus
withdrawn during the eleven and half
years Immediately prior thereto, and after
the list day of January 1879, When specie
payments were resumed
It is neither unfair nor unjust to charge
a large share of our present financial per
plexities and dangers to the operation OF the
laws of 1878 and 1890 compelling the purchase
of silver by the government. which not only
furnished a new treasury obligation upon
which it's gold could be Withdrawn, but SO
increased the fear of an overwhelming flood
of silver and forced descent to silver pay
ments that even the repeal of these laws did
not entirely cure the evils Of their existence.
While l have endeavored to make a plain
statement of the disordered condition of our
currency and the present dangers menac1ng
our prosperity and to suggest way
which leads to a safer financial system.
I have constantly had in mind the fact
that many of my countrymen whose sincerity
1fc+ %I,0% f1o 0IIVn for
ills now threatening US may be found IN the
single and simple remedy of the free coinage
of silver. They contend that our mint shall
be at once thrown open to the free, unlimited
and independent coinage Of both gold and
silver dollars of full legal tender quality
regardless of the action of any other govern
ment and in full view of the fact that the
ratio between the metals which they suggest
calls for 100 cents worth of gold in the gold
dollar at the present standard and only 30
cents 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
we'll stagger those who believe that stability
is an imperative condition Of sound money.
No government, no human contrivance or
legislation has ever been able to hold the
two metals together in free coinage at ratio
appreciably different from that which is es-
tablished in the markets of the world. Those
who believe that our Independent free COIN
age of silver at artificial ratio with gold
of 16 to l would restore the parity between
the metals, and consequently between the
COINS propose an unsupported and improba-
BILE theory to the general belief and practice
of other nations and to the teaching of the
wisest statesmen and economists of hte world
both in the past and present and what is
far more conclusive, they run counter to
our own actual experiences. Twice in our
earlier history our lawmakers, in attempting
to establish a bimetallic currency, undertook
free coinage upon ratio which accidentally
varied from the actual relative values of the
two metals not more than 8 per cent. In
both cases, notwithstanding greater difficult
ties and cost of transportation than now ex-
list, the coins whose intrinsic worth was I'M
dervalued 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 ma
tural causes decreed even slight inequality.
Twice in our recent history we have sig
nally failed to raise by legislation the value
of silver. Under an act Of Congress passed
in 1873 the government was required for more
than twelve years to expend annually at
bullion for coinage. The act Of July A. 1890,
in still holder effort, increased the amount
of silver the government was compelled to
purchase, and forced it to become the buyer
annually of 100000 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 re-establish and maintain the
former parity between the two metals, are
still fresh in our memory.
In the light of these experiences, which ac-
cord with the experiences of other nations
there is certainly no secure ground for the
belief that an act of Congress could now
bridge an equality of so per cent. between
gold and silver at our present ratio, nor is
there the least possibility that our coun-
try, which has less than one-seventh of the
silver money in the world, could by its ac-
ton alone raise not only own, but all
silver to it's lost ratio with gold. Our at
tempt 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 contrac-
ton of our circulating medium and shrink
age in the real value and monetary efficiency
OF all other forms Of currency as they set
tied to the level Of silver recommendation.
Everyone who receives a fixed salary and
every worker for wages would find the dollar
in his hand ruthlessly scaled down to the
point of bitter disappointment if not to
pinching privation
Silver Would Collapse Credit.
A change in our standard to silver mono
metallism would also bring on a collapse of
the entire system of credit which, when based
a standard which is recognized and adopt
cd hxy+ he Of h11cin Sc +i1o1oo