Semi-weekly independent. (Plymouth, Marshall County, Ind.) 1895-1897, 1895-12-11
gold has resulted largely from fright.

gold has resulted largely from fright,
there is nothing apparent that will pre-
vent its continuance or recurrence with
its natural consequences. except such a
change in our financial methods as will
reassure the frightened and make the
desire for gold less intense. 1t is not
clear how an increase in revenue, unless
il be III gold. can satisfy those whose only
anxiety is to gain gold from the Govern
ment's store. Ii cannot. therefore, be
safe 10 rely upon increased revenues as
cure for our present troubles.
1t is possible that the suggestion of
increased revenue as n remedy for the
difficulties we are considering may have
originated in an intimatiOn or distinct
allegation that the bonds which have
been issued ostensibly 10 replenish our
gold reserve were really issued TO supply
insufficient revenue. Nothing can Ice fur
Their from the truth. Bonds were issued
to obtain gold for the maintenance of our
national credit. AS has been shown the
gold thus obtained has been drawn again
from the treasury upon United States
notes and treasury notes. This operation
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 ordinary Government funds. and
there was nothing TO do but TO use them
i'll paying Government expenses when
needed.
At no time when bonds have been is
sued has there been any consideration of
the question of paying the expenses of
Government with their proceeds. At the
time of each bond issue we had a safe
l..
rations, exclusive of the gold in our re-
serve. In February, 1894, when the first
issue of bonds was made. such surplus
amounted TO over $4,000. 900; in Novem-
Der. when the second issue was made. il
amounted 10 more than S42.0O0.UW, and
in February, 1895, when bonds for the
third time were issued. such surplus
amounted to S9SO12. 1000 Besides all
this, the Secretary of the Treasury had
no authority whatever to issue bonds To
increase the ordinary revenues or pay
current expenses.
l cannot but think there has been some
confusion of ideas regarding the effects
of the issue of bonds and the results of the
withdrawal of gold. 1t was the latter
process and not the former that by sub
shutting in the treasury United States
ed 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. Withdrawals
of gold from the treasury upon the notes
given in payment on such purchases did
not begin until October, 1891. Immediate
" fOl no dot RI a l.
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 treasury upon United
States notes and treasury notes issued for
silver purchases as was thus withdrawn
during the eleven and half years imme-
diately prior thereto and after the first
day of January. 1870, when specie pay
ments were resumed.
1t is neither unfair nor unjust 10 charge
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 furnishes "A new treasury
obligation upon which lis gold could be
withdrawn, but SO increased the fear of
an overwhelming flood of silver and
forced descent TO silver payments that
even the repeal of these laws did not en-
tirely cure the evils of their existence.
Free Silver Coinage.
While | was endeavoring to make a
plain statement of the disOrdered cOndi-
ton of our currency and the present dan
gers menacing our prosperity and to sug
gest a way which leads 10 safer tinan-
cial system. ! have constantly had in mind
the fact that many of my cOuntrymen.
whose sincerity do not doubt insist that
the cure for the ills now threatening us
may be found in the single and simple
remedy of the free coinage of silver. Fhey
contend that our minis shall be at once
thrown open 10 the free. unlimited and in
dependent coinage of both gold and silver
dollars, of full legal tender quality, re-
CARELESS of the action of any other Gov
eminent 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 al the present standard.
and only 80 cents in intrinsic worth of
silver in the silver dollar.
Were there infinitely stronger reasons
than can he adduced for hoping that such
currency moving on lines of pa rffy. an ex-
pertinent SO novel and hazardous as that
proposed might well stagger those who be-
lieve that stability is all imperative condi-
ton of sound money. No government no
human cOntrivance or act of legislation
has ever been able to hold the two metals
together in free coinage at a ratio appre-
Gladly different from that which is es-
tablished in the markets of the world
Those who believe that our independent
free coinage of silver at an artificial
ratio with gold of Ii to / would restore
the parity between the metals, and con-
sequently between the coins. oppose an
unsupported and improbable theory to
the general belief and practice of other
nations and to the teachings of the wisest
statesmen and economists of the world
both in the past and present. and. what
is far more conclusive, they run counter
TO their own actual experiences.
Twice in earlier history our law
makers, in attempting to establish hi
metallic currency, undertook free coin
age upon n ratio which accidentally va
ried from the actual relative values of
the two metals not more than ) per cent.