The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-20
A SOUND MONEY LETTER.
what Would Result From the Free
Coinage of silver.

| what Would Result From the Free
Coinage of silver.
The following letter TO merchant OF
this city, relative TO the silver question,
shows how business men OF New York
regard the agitation in behalf Of the free
coinage of silver. The writer is the head
Of one of the greatest business houses
in the country He cannot be called
| Shylock or Wall street shark He is Just
plain business man and takes a business
view OF the financial situation. and a very
sensible view he takes:
New York. May 1G.-Mr. d. Kohler:
Dear Sir-The panic Of 1893 was caused
by fear that the silver purchases of the
! United States were about 10 bring the
country to a silver basis. This fear led
| primarily TO abnormal gold exports and
to boarding OF gold. As gold disappeared
the panic grew When the panic became
| general all kinds of money were boarded
| without much discrimination, because
many persons feared that all financial in
stitutions might be ruined. and in unreal
soning alarm they thought that any kind
of money would be safer than a bank &C
count When the bill repeating the sill
yer purchasing clause of the Sherman
act passed the House of Representatives
by a vote so overwhelming that IL seemed
certain that the bill would ultimately be-
| come law, the panic subsidized. Tho
very day after the vote in the House Of
Representatives the situation changed
radically. For the first time in four months
money was offered 20 merchants and the
acute phase of the panic was at an end
Depression, however continued while
the Senate debated the bill. but signs Of
recuperation were not wanting, and a
distinct improvement began when the Sem
az 70 x1yffh Ia, tI~
peal Of the silver purchasing clause. This
Improvement was stopped by the govern
ment programme for radical changes in
the tariff. Every merchant knows the
dscouragements and losses of the last
two years of uncertain and falling prices
Now we have reached the bottom: we have
felt the fun effect of the new tariff;
prices which have been abnormally low
are beginning to improve. and the out
look for business is encouraging.
Shall we invite fresh panic by con-
sidering free silver coinage in the United
States without the concurrence of other
nations?
Nothing can be more certain than that
free coinage of silver at the ratio of l6
20 by the United States alone. would re-
suit in a scramble for gold. This would
cause an immediate contraction of loans
and a general financial panic would in
evitably ensue; business would then be
paralyzed once more, and another sea-
son of calamity would be upon us.
Those who wish to see better prices for
all commodities must remember that the
consuming power of the people depends
on their earnings. The depression which
always follows a panic throws many per-
sons out of employment, and for a long
time after the panic, many remain unem-
ployed. We are now slowly recovering
from the panic of 1893; every month the
consuming power OF the people increases.
Let this consuming power steadily grow
and 1t will soon catch up with any tenn
porary excess of the worlds supply Of
commodities. and thus surely and safely
produce higher prices. Check this con-
Stunning power by a panic, and a vast in
crease in the number Of the unemployed
will depress prices more than free coin
age of silver can raise them.
Free coinage Of silver by the concurrent
action OF the great nations would, we be-
lieve, be OF decided advantage to the world.
Since the United States has ceased to take
care of a large proportion of the worlds
silver, that is, within a year and d half,
bimetallic sentiment IN France and Ger
many has increased more than In de-
cade before, and the silver question in
those countries now commands the atten-
ton of their foremost statesmen.
Let the good work go on: let the Euro
pean nations struggle with the silver
question without relief from the United
States, and the prospect Of an intcrna-