The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-23


half OF our population. IS thus enforced
upon the city merchant. the manufacture
and all forms OF labor. These combined
elements constitute the overw whclming ma
jority OF voters. Their intelligent conclu-
sion viii be felt when expressed at the
polls.
The banker also is without prosperity
unless prosperity Is general throughout the
United States. He must learn 70 dlstin-
gush between cheap money and money
commanding a low rate Of interest. Ihe
dollar worth two bushels OF wheat Is
dear dollar. and yet IL commands interest
in Wall street an present, Of but two per
cent. per annum on Glli. ..5 y
by increasing the number OF
dollars, 80 that each dollar Will buy less
wheat, the increasing price Of wheat VIII
increase the demand for dollars TO Invest
In its production. Then the borrower OF
dollars 70 invest in the production OF wheat
being reasonably sure OF pront rom
that employment OF the money can auori
10 pay interest for it's use as a part OF his
profit. In other words. interest Is a share
OF the profit on the employment OF money.
SO that abundant money, money readily
obtainable, which Is TO say really cneap
money, is the money which commands
high rate OF interest. as share OF the
profit Of the borrower In using II.
As we appeal 10 the country, In the Jus
tice OF our cause, one or two points o.
common inquiry must be satisfied as fol-
loWHs ne experience OF AAtAi1V - tAN+N
up for our alarm. We answer first, mat
Mexico Is conspicuously prosperous a.
home. Her Increase In manufacture rail-
way earnings and the Ike I'm recent years
Is phenomenal Second Mexico Is no cri-
terlon for the United States. for the rea
son that she has a foreign trade indebted
ness OF about S20.000O0O annually IN excess
Of the value Of her exports OF cotton, su-
gar, coffee. hides and the like, which must
be paid Tor in the surplus product Of her
mines. Her silver. therefore. goes abroad
as merchandise and at a valuation fixed
by the outside world. The United States
on the other hand, Is a nation of seventy
millions OF people, scattered over a terri
tory seventeen times the area Of France
A single one OF our railway systems. tho
Erie, exceeds the aggregate railway mile
age Of all Mexico. We offer an employ
ment for money TO an aggregate greater
than the worlds spare silver win furnish
us. Hence our silver money, at home and
abroad, win be valued as the money Of the
United States.
The opposition threatens us with a flood
of Europes silver upon our re-opened
mints We answer, Europe has no silver
but her silver money. Her silver money
values silver at from three cents to seven
cents on the dollar higher than ours.
Hence the European merchant or banker
must sacrifice from three TO seven per
cent. of his full legal tender money In or
der to recoln II Mt our mints. Europe's sill
verware, like Americas silverware, carries
IN IL inc aQNltiOual Nhlue OF lHbOf ana the
manufacturers profit.
They threaten us with Hood OF silver
from the far east. We answer that the
course OF silver Is invariably eastward and
never toward tho west. British India Is
a perpetual sink of silver absorbing it.
never to return. by from thirty TO sixty
millions Of dollars worth every year. And
India's absorption OF silver viii be en-
larged BY the steadiness OF price for sll-
yer fixed by our reopened mints.
They threaten us with a Sudden re-
tircment of $600000,O0O gold with the ac-
companying panic, causing contraction
and commercial disaster unparalleled" "
We answer that our total stock of gold
other thun about $40 100000 or S15O 600 cir
culating on the Pacific coast, is already
in retirement. Practically all our gold
is in the United States treasury or held
by banks. The gold In the treasury will
remain there II the secretary avails OF
his option 10 redeem United states notes
in silver. The gold In the banks consti-
tutes tho quiet and undisturbed portion
Of their reserves against their liabilities.
II will continue TO do money duty as
such reserves after free coinage for sill
yer is enacted Hence a premium on II
will not contract the currency. The ut
most possible contraction of the cur
rency will be the few millions circulating
on the Pacific coast. and this will be
retired but slowly.
A similar threat Of a flight Of gold was
made for the Bland act of 1873. President
Hayes was urged to veto H., but congress
passed It over the veto. Instead OF a
flight of gold, as had been predicted, we
gained by importation 100000 the first
year so, 600 co the next year and $4,000 =
coo the third year. During the twelve
Years that the act was on the statute
books we gained S221 10000 OF foreign gold.
Instead Of a destruction Of our credit
abroad, as had been predicted, the United
States 4 per cent. loan. which stood at 10l
on the day of the enactment, sold at i90
per cent. within three years, and at l30
per cent subsequently. Instead Of defeat
ing the resumption of specie payments on
silver dollars which were coined in 1878
and circulated by meang Of the silver
certificates, reduced the demand upon the
government for gold Hence, the threat
of disaster now is without historic founda-
tion.
opening of our mints 10 silver; the gold al
ready in the treasury viii remain there,
IL common sense dictates the treasury
MANAGEMENT, that Is, II the treasurer ex-
ercises the option to redeem United States
notes In silver A premium on gold viii
not occasion q contraction OF the cur
rencv. bank boards of gold Continuing 10
serve as a portion Of bank reserves
against bank liabilities premium on
gold will tend to increase our exports by
causing a higher rate of foreign exchange.
that is to say by yielding a larger net
return IN dollars on the sale of bills OF
exchange drawn against goods exported.
premium will tend to diminish our lm-
ports by increasing the cost Of bills of
exchange with which 10 pay for goods
imported.
ports and decreasing our imports Will be,
first, 10 set our splndles running, swell
the number of paid operatives, Increase
their wages, thereby adding 10 the num-
Der and paying capacity of the consum-
ers, and thus enlarge our home market
for all home products and manufactures
with prosperity in general as the result
assured. The tendency Of increasing our
exports and diminishing our imports will
be, second, to establish a credit balance
of trade for the United States. A credit
balance Of trade means that Europe has
become our debtor and must settle with
us in money. Europe's silver money IS
overvalued in her gold, compared with
ours, by from three 10 seven cents on the
dollar. The European merchant or bank
er will, therefore, make his trade settle
ments with us in gold, more prohtably
by from three to seven per cent than in
his silver. With the instant that Euro
pean trade settlements with the United
States are made in gold, parity of our gold
and silver money IS established In the
markets of the world. Herewith the
371A grains Of pure silver IN our silver
dollar, and the 1922 grains Of gold in our
gold dollar are Of exactly equal worth as
bullion in New York.
Tobrta eei1Y,r,ffor that tho co,,-