The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1895-08-16
FOR SOUND money.
HON. HOKE SMITH SPEAKS AT
GAINESVILLE, GA.

HON. HOKE SMITH SPEAKS AT
GAINESVILLE, GA.
He.Makesa Strong Argument Against
Free Coinage-ExplainsW Why the
Reice of Silver Has Fallen and
Tells of Some of the. Inevitable
Effects of Free Coinage at 16 to 1.
The following is part of Secretary
Hoke Smiths speech at Gainesville,
Ga, on July %:
The value of silver bullion has fallen
since 1873, on account of the lessened
cost Of production, on account of the
enormous increase in production, and
on account of the decreased demand.
All of these elements entered into and
helped to cause the reduction of the
value of silver.
To restore the price of silver to its
value in 1873 you must remove all the
causes which have reduced its value.
Concede for the sake of argument that
the acton of the United States was
one of those causes, it is illogical to
claim that the removal of this one is
to remove the effect of all the others.
But it is urged that the United
States should try the experiment. and,
if it failed, then abandon it. or change
the ratio. The facts stated show con-
clusively in advance that it must fail.
To lift the value of 412A grains of sill
yer in the United States from so to
100 cents it would be necessary to lift
II - -
to the same extent, less the cost of
transporting it to the United States.
That volume to. day, coined, is ST.
O51, 100000. If the burden were only
to raise the commercial value of
the coined silver, in those coun-
tries where it was dropped, to bullion
value, the undertaking would still be
clearly impossible. India has $3.50, 000,-
900; China, $3.50, 600, 900 Japan, $72,-
900, 900; Mexico. $5O,000,0O0; South
American States, $50, 900. A to-
tai of 81, $50, 900, 900 is used by these
countries alone. This silver, though
coined. circulates only at its bullion
value. In addition to this, can the
silver mines afford to continue in
creasing their production, as they
have, from SS1, 100000 in 1873, to
S214, 4S1, 600 in 1890 on a market
which has risen 100 per cent? The
volume to be raised in value extends
to the earth deposits as we'll as to that
heretofore mined.
We were unable to keep the value
of silver up to gold under the Free
Coinage act of 1892. We were I'M
able to;keep gold up to silver under
the Free Coinage act of 1884. France
and her associates in the Latin Union
found themselves unable to keep sill
yer up to gold in 1874. The failure
of these practical tests, under for
more favorable circumstances than
thosetof tho present, demonstrated how
how ridiculous is the claim of the sill
yer advocates.
These facts, fairly considered by
any one, will bring the conclusion that
free coinage at 16 to l means the use
of no coin but silver means new
standard of measure equal in value to
the present commercial value of the
bullion now put into a silver dollar;
means q new dollar worth only ap-
pro1imately half as much as the pres
ent dollar, and the measure of all
values by this new standard.
The immediate effect of the election
of President committed to such
policy would be the separation of the
goll. and silver dollar, the gold dollar
going topremium Of about two for one.
We would lose at once 1878, 900, 900
of gold now in circulation and now in
the Treasury. The greenbacks and
Treasury notes-S375, 200, 000-which
would still remain outstanding, would
be boarded, in the hope that free
silver bill, if passed at all, would be
soon repealed. This would take place
Immediately after the election of a
President in November, 1896, and
probably even after the nomination
by either of the great parties of free
silver candid ate. The new President
could not be inaugurated until March
4, 1897. During the six months or
more before it would be possible to
pass free silver legislation the con-
traction Of the currency just described
would precipitate the most serious
consequences. Those owing gold
obligations would put a strain upon
the remaining silver currency and
bank notes, to buy gold to meet their
gold obligations.
The currency, consisting of checks
and bills of exchange, amounting to
95 per cent. of our entire currency,
would go out of use in consequence of
loss of confidence and credit, AMI the
result would be the withdrawal OF 979
per cent. of our entire currency and
the paralysis of business would imme-
diately follow. Banks would be
raided by their depositors.
Creditors would seek to enforce
their debts before the reduction of
the standard to the silver basis. No
extension Of debts would be given. to
anybody, except where payable in
gold at increasing rates of interest.
Long time debts are in gold. The
amount to be paid on them would not
be reduced. Indebtedness not pay
able in gold woald be collected at
once or the property owned by the
debtors taken from them. Merchants
would fail, workmen be idle, farm
products without a market, and pow
erty and distress found on all sides.
I do not believe that President
would ever approve such legislation,
elected upon platform with q Con-
gress pledged to pass it. The calam-
itous effects following such an election
would bring to them the prayers of
the very men who elected them, ap-
pealing for the defeat Of such legisla
ton. But if such law should pass it
would not be until the later part of