The Yale expositor., 1895-12-13

treasury upon United States notes ana treasury
notes. This operation would have been prompts
ly prevented II possible; but these notes nag
Ing been thus passed 10 the treasury. they b.
came the money OF the government. like any
other ordinary government funds and there was
nothing TO do but 70 use them In paying gov
ernment expenses when needed.
AT no time when bonds have been issued has
there been any consideration OF the question
Of paying the expenses OF the government with
their proceeds There was necessity 70 con-
s!der that question. At the time OF each bond
issue We had safe surplus in the treasury
In our reserve. Besides all this. the secretary
OF the treasury had no authority whatever
70 Issue bonds TO increase the ordinary revs-
nueS or pay current expenses
cannot but think there has been some con-
iIsion OK Ideas regarding the effects OF this
issue OF bonds and the results OF the with
orawal OF gold. 1t was the latter process, and
not the former, that, by substituting in the
treasury Unied States notes and treasury notes
for gold, increased by their amount the mon.
ey which was In the first instance subject 10
Culinary government expenditure
IL is neither unfair nor unjust to charge
large share OF our present financial perplexlties
and dangers to the operation OF the laws OF
1873 and $500 compelling the purchase of sil-
yer by the government. which not only furnish.
ed new treasury obligation upon which its
gold could be withdrawn. but SO increased ths
fear OF an overwhelming food OF silver and en-
forced descent TO silver payments that even this
repeal OF these laws did rot entirely cure ths
evils Of their existence. While l have endeaVor-
ed to make plain statement OF the disarlered
condition Of our currency and the dangers pres
ent menacing our prosperity and TO sugge5I a
way which leads to "a safer financial systemg1
have constantly had in mind the fact that
many OF my countrymen, whose sincerity / do
not doubt, insist that the cure for the ills
threatening US may be found in the single and
simple remedy OF the free coinage OF silver.
dney contend that our mints snail at once bs
thrown open to the free, unlimited and indepen-
dent coinage OF both gold ana silver dollars -ot
iull lesal tender quality, regardless OF the ac-
uon or any other government, and in fun view
OF tho fact that the ratio between the two
metals which they suggest calls for 100 cents
worth OF gold In the gold dollar at the present
N N RI afe vOrfh
OF silver In the silver dollar. No govern
ment no human eontriyance or act
or legislation, has ever been able TO held the
two metals together in free coinage at a ratio
appreciably different from that which is estab-
lished In the markets of the world.
Those who believe that our independent free
coinage OF silver at an artificial ratio with gold
OF 10 TO would restore the parity between the
metals. and consequently between the coins, OPP
pose an unsupported and improbable theory to
the general belief and practice OF other nations
and TO the teaching OF the wisest statesmen
and economists OF the world, both in the past
and present, and, what Ia 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 ac-
cidentally varied from the actual relative val
ues OF the two metals not more than per
cent. In both cases. Notwithstanding the great
er dimculties and cost OF transportation than
now exist. the coins whose intrinsic worth was
undervalued in the ratio gradually and surely
disappeared from our circulation, and went TO
other countries. where their real value was bet
ter recognized. Acts OF congress were lmpO-
tent TO create equality where natural causes de-
creed even a slight inequality.
Twice in our recent history we have signally
failed TO raise by legislation the value OF sill
yer. Under an act OF congress passed in 1875
thc government was required for more than
twelve years TO expend annually at least S2t.-
600 900 in the purchase OF silver bullion IaF
coinage. The act OF July II. 1890. in a stH
bolder effort increased the amount OF silver
the government was compelled to purchase,
and forced IL 10 become the buyer annually OF
$1,000 600 ounces or practically the entire pro-
duct OF mines. Under both laws silver
rapidly and steadily declined In value. The
prophecy and the expressed hope and expecta-
uon OF those in the congress who led in thu
passage OF the aforementioned act, that 70
would re-establish and maintain the former par
ny between the two metals. are still fresh In
In the light OF these experiences which ac.
cord with the experiences OF other nations.
there is certainly no secure ground for the be-
lief that an act OF congress could now bridge
an inequality OF 80 per cent between gold apd
silver at our present ratio. nor 10 there the
least possibility that our country. which has
less than one-seVCnth OF the silver money IN
the world, could by it's action alone raise not
only our own, but all silver TO it& tost ratid
with gold. Our attempt 10 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
contraction OF our circulating medium and
shrinlSage in the real and monetary efficiency
OF all other forms OF currency as they settled
TO the level OF silver monometa.lism. Every,
one who receives a fixed salary and every
worker for wages would hnd the dollar in his
hand ruthlessly scaled down to the point OF
bitter disappontmeA IL not TO pinching pri-
vations.
change in our standard 20 silver mono-
metallism would also bring a collapse OF
the entire system of credit. which, when based
a standard which is recognized and adopted
by the world Of business, is many times more
potent and useful than the entire volume OF
currency and IS safely capable OF almost in
definite expansion 70 meet the growth OF trade
through darkness and uncertainty our huTnjiia-
tion would be increased by the conscious
enlightened and progressive nations OF this
world. and were desperately and hopelessly
striving to meet the stress OF modern commerce.
and competition with a debased and unsuitabls
currency and in association with the few weak
and Iaggard nations which have silver aions
as their standard OF value. All history warns
US against rash experiments which threaten
violent changes In our monetary standard and
the degradation of our currency.
The past is fun OF lessons teaching not only
the economic dangers but the national immor-
ality that follows in the train Of such expert.
ments. / will not believe that the American
people can be persuaded after sober deiiberas
tion to jeopardize their nations prestige and
trums. nor that they viii yield TO the false al
lurements OF cheap money. when they realize
that Il must result In the weakening OF that
financial integrity and rectitude which thus Tar
in our history has been 20 devotedly cherished
as one OF the traits OF true Americanism.
Those who advocate n blind and headIonn
plunge 20 free coinage In the name OF bimetal-
lism and processing the belief contrary to all
experience that We could thus establish q dou,
bic standard and a convenient circulation OF
both metals In our coinage, a-e certainly reck-
oning from a cloudy standpoint. Our present
standard OF value Is the Standard OF the civs
ilized world and permits the only bimetallisn
now possible or at least that is within the In.
dependent reach, OF any single nation, however
powerful that nation may be.
There is vast difference between q stand.
ard value and n currency for monetary use.
The standard must necessarily be fixed and Ger.
tain. The currency may be In divers forms and
OF various kinds. No silver standard country
has gold currency In circulation; but an en-
lightened and wise system OF finance secures
the benefits OF both gold and silver as cur
rency and circulating medium by keeping the
standard stable and all other currency at par
With II. Such a system and such a standard
also give free scope for the Use and expansion
OF safe and conservative credit. so indispensa-
BILE TO broad and growing commercial trans.
action and 20 we'll substituted for the actual
use OF money. IL fixed and stable standard
Is maintained such as the magnitude and safe
ty OF our commercial transactions and busi-
ness require, the use OF money itself is conyen
iently minmized.
Every dollar OF fixed and stable~vaiu has
through the agency OF confident credit en- as
tonishIng capacity Of multiplying itself in imam.
cial work. Every unstable and huotuating dol
lar fails as a basis Of credit, and In its uss
begets gambling, speculation and undermined
the foundations OF honest enterprise.
I have ventured 20 express myself on this
subject with earnestness and plainness OF
lief that there turks in the proposition for ths
free coinage OF silver so strongly approved and
20 enthusiastically advocated by a multitude of
my countrymen, serious menace 20 our PROSE
pcrity and an insidious temptation TO our peos
pie to wander from the allegiance they owe "a
do not distrust the good faith and sincerity OF
fhoae WIN rreee this pcheme that i have I'M