Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1896-08-13
EFFECT or BRYAN'S ELECTION.


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In II recent issue of the Financial and
Commercial " Orld there is an Interesting
and probable forecast OF the result OF tho
election of Mr.. Bryan, with II majority of
Congress pledged to the free aud unlimited
coinage OF silver ut III to l. The outcome
of the election would he known In the
first week of November, but the new
President and Congress would not come
into. power till March 1, 1897. There
would be an interval Of four months, In
which events would develop rapidly. Tho
gold reserve of SlOO,0uU0OO would be at
ut once absorbed, the World thinks, by
holders of greenbaeks and Sherman notes.
Mr.. Cleveland would be willing TO stay y
panic by Strengthening the depleted res
serve with u new issue of bonds, but in
view of the policy of the new admnisi
tration to pay interest and principle Of
bonds in silver "coin," it would be impos-
sible to get gold by new issue of bonds.
The country's stock of some S5OO,O0O,OO0
Of gold held now as II reserve by banks,
and other financial institutions would be
withdrawn from this function and
boarded for premium. Over u fourth Of
our stock of money, and the best part OF
il, would thus cease to be available for
business. Having fallen to the silver
basis, the value of all our other money
would he contracted by nearly one-half.
Over $.i6, 100000 of greenbacks. S14S,-
0OO0 of Sherman notes and $508, 000,-
600 of STANDARD silver dollars, aggre-
eating Ss.l2isS:,.,NW, would lose Ihrchas-
| ing power and sink to about S446,0OO,O00
| of effective money. The contraction Of
| the currency due to the retirement of gold
4 and debasenlent of silver and greenbacka
would he IN effect about Sl,OOO,00O, 900.
| To be added is the contraction in value Of
national bunk notes, which would be at
par with such money as was to be had.
Deposits in banks would shrink in like
| manner and checks on deposits would
have diminished purchasing power.
I'm the face of such results" says the
World, maturing loans and mortgages
would be called in, foreign Investments
| would he thrown ON the market, credit
would be destroyed and business stagna-
1 ton, panic and failure would follow
| With such contraction of currency and
credit all merchandise, including wheat
and cotton, would decline to the lowest
values ever known" Should the new
Congress be summoned in extra session ID
could not meet before March 4, 1897. AZ
time would elapse before the House could
pass n free-coinage bill. There would be
resistance to il on the part of the gold
standard members, but we may conceive
that the bill would get to the Senate by
April I. In the Senate the minority would
fight it ohstinatcly, so that several
months might enpsc before the bill would
he ready for the Presidents signature.
Secretary Carlisle has estimated the coin-
age capacity of our minis at about $40.-
000.000 ycarly. II would take nearly fife
teen years to replace with new silver dol-
lars the gold that had been driven out Of
use. Silver men would forsee this, and
their free-coinnge act would provide for
IN immediate issue of silver certificates at
the lG-tO-1 ratio, ISL for SO cents,) and
the whole world would share in the rush
to get certificates before they fell to the
ultimate bullion value of the silver in the
dollar. The dearth of money might make
an artificial demand for a time for such
money AS to he had, hut with the issue
of certificates new initiation would begin.
The United States would receive silver
form all the world so long as the silver
dollar here would exchange for more than
the bullion IL contained. The worlds
stock of silver is over $4.000.0O0,O00, a
great part of which would come to take
the place of gold. Wheat and cotton
would, however, continue to sell abroad AT
; gold prices, while our farmers would pay
inflated silver prices for their supplies.
India, Russia and Argentina would com
:, pete with us to increased advantage and
farm prices would be worse than ever
7 After few years of suffering the United
! States would tire of the experiment. but
would he loaded down with deprecated
silver; its currency would he in sad disor.
! der, its credit would he gone, and there
would bc general setback. which il
would take twenty-five years to recover
+ from. In view of this dcnoumcnt the
World asks pcrtinently, rs the game
worth the cnndle?"