Daily capital journal. (Salem, Or.) 1896-1899, 1896-07-14
A SALEM BIMETALLIsT.
Puts Some Hard Facts Before the Gold
STANDARD Men

| EDITOR JOURNAL:-lt seeHis W w
impossible now TO pick up gold
standard paper, or listen to gold
bugs talk for three minutes, without
reading or hearing that the adoption
OF free coinage would Immediately
cause the "instant disappearance OF
$500. 900, 600 OF gold and the contraction
of our circulating medium by that
amount" This is one Of the stock
arguments Of the gold fanatic. Let
us examine it in the light Of some
sort OF reason and common sense.
First cut down the figures 30 per cent.
About six months ago the secretary
of the treasury estimated that there
was $50 odd millions of gold in the
country-and the Lord knows his
estimate was too high. Gold has been
leaving us eyer since at the rate of
about 81 900, 600 per day, which would
leave about slOO, ,OOO. 600 in the country
now. over s1OO,OOO,OOO is locked up
In the treasury OF the United States,
leaving not to exceed 100000, 200
actually or theoretically in circu-
lation.
And now let us pause to wonder
what was the use OF their lying 50
about the amount? The sudden, mys-
terious and irretrievable disappear
ance" Of even 100000, 900, all in solid
gold, would be a sufficiently awesome
spectacle to contemplate.
But where Is this gold now? How
much Of IL is in actual, every day cir
culation-passing from hand to hand
among people in ordinary business
transactions? Not over one per cent.
IL is in the bank vaults and strong
boxes. Nowhere, except on this coast,
is there any gold in circulation among
the people. 1t is boarded. 1t is held
In bank reserves. IL is out Of sight
and out OF reach. No bank east Of
the Rockies will pay your check in
gold. II will pay you in silver and
paper. This is too well known to talk
about. "But," says the gold lunatic,
at is practically in circulation, for it
Is available in case Of need; 1t is prop
erly reckoned in the money volume;
and IL is made Il basis for credits
Granted; now keep your eye on the
owl. In case of free coinage, and the
threatened disappearance of gold,
where would IL disappear toy Where
would IL goy What would be done
with IL? 1T will be boarded" Very
well, but how-in what manner viii
the bankers and brokers, who own 90
per cent Of Il, take IL from their
vaults, and bury 1t in old baking
powder cans, after the manner OF the
pioneers; or will they stow it away in
the toes of old and more or less
dllapidated stockings9 Here is one
silver fanatic who firmly declines to
believe that they will do either one.
The gold will stay right in the bank
vaults, where II Is now; II will be
reckoned In the money volume, just
as IL Is now; Il will be made a basis of
credits, just as it is now; and If the
banker owes you anything that is not
a gold obligation, he will pay you In
silver and paper just as he does now.
There would be no difference from the
present, as far AS actual circulation is
concerned. The small amount of gold
on this coast cuts no figure, and IL
would simply 20 into the vaults, and
silver and paper would come out to
take It's place.
Supposing that gold would go to a
premium, what them II you owed a
gold obligation, and had no gold, you
would have topay the premium. But
let MS clearly understand one point.
III the parity is destroyed, then there
must of necessity be two prices on
every article-a gold price and silver
price, for II there We're no difference
In purchasing pOwerof gold and silver,
then they would certainly be on a
parity. Then you will receive more
in silver than in gold for what you
sell, and II you sell your property for
silver at silver price, YOU can afford
TO pay the premium for the gold you