, 1896-10-26
What WOULD HAPPEN.
THE EVENTS WHICH WOULD FOL.
LOW BRYAN'S ELECTION.
STATED.
Uncle Sans Gold Would at Once Be
Drained From the Treasury and
He Would Be on a Silver Basis in a
Short Time After the Election
Bankruptcy Will Follow.


What will happen should MI. Bryan
be elected?
He stands pledged to sell no more
bonds to keep up the gold reserve, to
pay in silver the principal and interest
on government bonds. to redeem the
outstanding paper money in silver, and
to pass as speedily As possible a free
coinage act.
What will the consequence be?
l. Since the gold in. the treasury will
not suffice. by about 5000, OOO, 900, to
pay the treasury notes and greenbacks
the last 5000, 600, 900 outstanding must
be paid in silver. Since our national
bank notes are redeemable in green
backs, al of these must also fall to a
silver basis. The election of Bryan
will put Ibis country on a silver basis
so soon as the gold reserve shall De ex.
hausted, and without waiting for the
passage of a free coinage act.
2. All debts, except where otherwise
stipulated, will then be paid in silver.
D. III dIIllCipilloI vi sIlS result lOE-
eign capitalists having. money loaned
out or balances due them here will, ON
the 5th of November. cable their Ameri-
can correspondents to call in loans and
remit balances. These correspondents
will maxi heavy drafts upon the banks
and will be among the first at the ma.
tional treasury to draw gold, which
alone can be used in making foreign re-
mAtances.
4. In order to meet this drain upon
their cash balances the banks will be
compelled to collect moneys due them
from their customers.
8. Moreover, since The principal and
interest of the United States bonds
will then be payable in silver. as well
Is all dividends on stocks, foreigners
will dispose largely of their holdings
In both of these classes of securities,
and thus compel still further large re-
mfbtances Of gold abroad.
s. The example set them by foreign
Ss will be followed by all American
creditors who prefer gold to silver dol,
hrs Gncluding those who advocate the
1Ree coinage of silver but make their
own mortgages. leases and notes pay
eble In gold). If gold cannot be obtain
ID from the treasury they will buy ster,
nng exchange or exchange on Canada,
thus compelling further exports OF
Eold.
Z. The enormous demand for money
thus created will bring on a stringency
n the money market, which will be the
occasion, not merely of litigation, burt
OF a general run upon the banks.
8. In the cities. where combined &C.
don is possible, the banks will suspend.
The country banks, although solvent,
unless they can devise some practicable
method of suspension of payments, will
fan.
.. Gold will go TO a premium and be
exported OF boarded.
TO-. The disappearance Of all our gold
end the drop in the value of silver and
Of paper redeemable only in silver will
contract the currency to one-third its
present volume. According to circular
123 of the United States treasury de-
partment (page 2O, the stock of money
in the Emitted States July |. 1896, was
made up OF three items: % 5000, 1OO,-
900 gold, all of which will disappear
under the operation Of a free coinage
act; (2) sG25, 500. 900 silver. which will
tmmediately shrink to its bullion value
1t one-half; 49, $3.50, 300, 900 uncovered
paper, which will also. when redeem
able In deprecated silver, lose half it's
value. The value of the currency left
win be $504 ,45o, GEO, and the amount of
silver required to replace the deficit oc>
casioned by a change in the standard
a valuation will be 81. lO4, $50. 900.
IL. The immediate effect will be a
Oenero1 decline in the prices OF all com,
nodsttes. Everything in the country
will be for sale, in order to get ready
money. and there will be few buyers.
SpecuAtors will enrich themselves by
purchasing IT panic prices.
u. In the general rash all factories
will be closed and all minis stopped.
10. With no wages coming in, la.