The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-05-04
Effect of the silver Standard.

Effect of the silver Standard.
What does the silver standard moan
and what would be its effect? The silver
dollar IL now intrnslcaliy worth 80 conts.
IL passes Tor n dollar because by limited
coinage and fun cNchaugeab'lity. the gov
crnmcnt has kept II at par with gold In
der free coinpge II would De worth what
ever the world should rate the silver IN II
us worth II might be 50 cents; II might
be more; II might be less. II would fol
low all the fluctuations of "A varying COM
modify going up with the demand and go
Ing down after the dellgc II would still
be called II dollar but only because the
real dollar unit of value had been cX-
PEELED; and II would be dollar in fact
just as much as If we We're to lock up all
the present yard-sticks and were to make
u new unit of length consisting of a foot
and half, and were TO assume that call
ing II yard would make IT yard If 1t
takes ten yards of cloth now to make a
robe, ten yards under the new unit would
leave the costume decidedly dccolette,
nominal dollars as before. but the pur-
chase power of the dollar would measure
ably be cut in two. The Mexican dollar
contains more silver than the American
dollar Yet the American silver dollar
Will buy twice rs III ! in Mexico as the
Mexican silver dollat The American sill
Yer dollar is quoted in London at 100
cents and the Mexican silver dollar at
about 50 cents Why? Because Mexico
has free silver coinage and we have not;
because Mexico Is on the silver basis and
We are not. But the free coinage advo-
Gates would put us there, and SO put our
dollar down to the level of the Mexican
dollar.
The serious menace of such a change
would bring on a great financial convul-
sion, and its accomplishment would in
vOlve q complete economic revolution. 1t
was the apprehension of going to the sill
Yer standard that largely caused the mon
etary panic of 1893, and any real impend-
ing danger of such n catastrophe would
produce a financial cataclysm that Is APP
palling to contemplate. 1t would tumble
our American securities back upon us: 1t
would dry up the springs Of credit, re-
strict loans, paralyZe enterprise, cripple
trade and industry, halt investments, and
repeat on larger scale the bitter eXpe-
rience of that disastrous crisis of two
summers ago. Even II the silver standard
presented the advantages which some eX-
tremists profess to think, the pathway to
1t would be strewn with too many wrecks
and darkened with too much sorrow and
sadness to be prudently undertaken.
But suppose. running these risks and
making these sacrifices, we had plunged
to the silver standard, what then? Prac-
tical object lessons are more vivid and
convincing than theoretical discussions.
Let us take few object lessons. The
amount of deposits in the savings banks Of
the United States Is $l,747. .9Gl, $50 and the
number of depositors AM. .6S7. The aver
age to each depositor is S36j.S6. The silver
standard means that on an average every
one of these nearly five million people de-
posted 1866, each dollar worth 100 cents in
gold and would draw out $3G5 in silver,
each worth 30 cents. The savings of the
working people of Pennsylvania go large
" into building and loan associations.
Nevertheless. there are In this state 2iS,
2ii savings bank depositors with an aggrc-
gate deposit Of 25,S21 and an average
Individual deposit of S2G5,97. The silver
standard means that every one of these
2iS2H Pennsylvanians put in 2G5 hard
earned lOO-cent dollars and would draw out
2G5 jO-cent dollars.
Pennsylvania has 1893 building assocla-
tions, with assets amounting to Sl03, ,9iS,Gl.
and a total membership of 2725SO. All of
these members are In their organized
capacity lenders, and each Is in turn n
borrower. Each Is capitalist and be-
longs to the muchdcnounced creditor
class to the extent of 1881 These asso-
cigtions received last year $ii, i32, GS6 and
divided $12,033g0. The whole system de-
pends on the value of the assets in the
shape Of mortgages, and collapses unless
that is sustained. on the silver basis
these 272.5SO persons. all wage earners.
would find their SlO3gi3,3Gi cut In two, and
the only persons who would get any com
rowers at that particular time. Take an
other ILLUSTRATION The aggregate pom
sion disburscments last year were Sli0,-
T2 1878 and the number of pensioners
sG9Hi. of whom 7ji,3S2 are the gallant in
valid veteran defenders of their country
and 2ij,lG2 are the widows or orphans OF
Union soldiers. The payment to each pen
slOner thus averaged sal. The number
Of pensioners on the roll of the pension
office at Philadelphia In 577i9 aud NJ Pitts
A t.lN. ..r
ninth OF the whole number In the Union.
Under tho silver standard the slli going
on an average to each OF these million
pensioners would be j0-ccnt dollars. worth
" real dollars.
Take Sun another and impressive Illus
tration On Jan. !. 1891, the lfe insurance
policies In this country numbered 7b05,-
Sl7 representing insurance of 81 ,29l ,S2i 900,
and asSestg of solo.3i9, 1871 Considering
wealth and population together. at least
an eighth of this insurance Is held In
Pennsylvania or any 100000 policies
sometimes more than one for the same
person-represonting $500 100000 OF insur-
ance and Sl20. 000O0O Of assets. The aver
are amount OF n policy Is 800. ana so the
great mass Of polcyhpldcrs are persons
N moderate means. Tho security for the
payment Of this vast insurance is two
fold First existing assets, either mort
gngeB or shares and bonds and their value
or income would be cut In two by going
premium payments and their purchasing
power in Investments would be hnlved.
since thc amount was nXcd on the gold
basis or Hfe insurance assets 75 pcr
cent nrc mortgages or shares and bonds,
and this colossal contract for tho future
involving in Pennsylvania. alone nearly
100000 policies and $GJ0000 900 OF insur-
ance would by the silver standard be de-
preciated onc-half In value.
There II yet another and moncntous
danger. The amount of American ac-
curities owned abrond is generally placed
Mt about $2,000.O 900. Burdeti's Official
Intclllgenccr for 1891 places the aggregate
of foreign securities held by British invest
ors, based on tho income tax returns, Mt
1918, ,O3J, 600 The United Btntes hns one.
half the railroads and telegruphs OF tho
world. and 1t has u fifth OF the British
foreign trade. II IL therefore d reason-
able presumption that some fraction be-
tween n NTH and % half OF the British
foreign holdings are AmerIcan-somc hg-
urc between SS00.000.0O0 and 81 300 100000,
Add other European holdings and the aggrc-
gate will reach $2.0O0,0DO,000 or over, on
which from $G0.0O00O0 to 800, 900 are
annually paid In dividends and interest.
This amount IL now paid In dollars worth
In London 100 cents. On the silver basis
II would be paid In dollars worth In Lon
don 60 cents. Under such circumstances
how long would II be before these securl-
ties would be precipItated upon our mar
ket with all the consequences Of such
movement?