The Monitor-register., 1896-10-02
Communicated
The Gold or Silver Standard.

The Gold or Silver Standard.
Mr. EDIToR:-The issue between the
Two great parties is now squarely drawn.
The Republican party stands unitedly
and unequivocally for the gold standard.
The Democratic party, or such part of it
as represents the organization and has the
right to speak for it everywhere, has
taken its stand squarely on the Chicago
platform, which declares for the unlimited
coinage of silver at the ratio of 16 to 1,
without waiting for the action of other
nations. There are, it is true, Democrats
who adhere to the gold standard, and of
1nese there were enough a fortnight ago to
meet in national convention and nominate
a ticket, but they do not expect to carry a
single State. The effect of their action
Will be to swell Nc Kinley's vote. So
clear is their purpose to do his thai they
have been read out of the party and
pronounced deserters and d~isorganizers,
and the harsher term of traitor is not
withheld. The issue lies between the
party that has nominated Mckinley and
the one that has nominated Bryan, and
one OF these candidates will be the next
President, with a Congress behind him
capable of carrying out the policy of his
party platform.
The issue of the campaign is, therefore,
whether the gold standard shall be main.
tanned, or abandoned for a silver standard.
Under the gold standard the nation has
enjoyed great prosperity. From the day
OF resumption, January 1, 1879, until the
success OF tie free trade party in 1892,
all were contented with the currency as it
was, for an American dollar passed cur
tent in every country 10 the world. Our
government could issue its paper promises
to pay, and could put its guarantee of
redemption upon it's silver dollars in spite
OF the steady depreciation in the price OF
silver bullion, for the people knew that
the government was behind these dollars,
and they accepted them as readily as the
gold itself. When the silver dollars grew
to a number 80 large as to threaten the
gold standard, that is, when they began
to drive gold out of the country or send
it up to a premium, the coinage was sus.
pended. This is a point at which public
faith in the ~solvency begins to weaken,
and that point is reached when it becomes
apparent to the people that the govern
ment has not enough gold to maintain it's
silver and paper issues at the full value Of
100 cents in gold. There was a time a
few months ago when gold began to
command a premium. This was when
the gold reserve in the treasury, formerly
800, 600, 900, fell below 100000, 900. A
panic would certainly have followed had
not the government courageously pro-
ceeded to borrow 800, 000, 900 in gold.
Had the silver stands ard been established
at that time, this borrowing would have
been impossible, all the governments
creditors in America, Europe and else
where would have pounced upon it with
their demands for gold, and a panic
would have followed compared with
which that of 1898 would have seemed a
summer holiday.
The United States is a borrowing
nation; its n a%tional, State, municipal and
public works bonds are held in every
money centre of the world. The free
silver party proposes to make these obi
cations payable in silver, which would be
the reputation of one half of them.
Should Bryan be elected, all of these
bonds would come home before his
Inauguration and his promised extra
ordinary session of Congress, for they
would yet be payable in gold. They
would drain the gold of the nation, and
months before Bryan could get his free
coinage sch eme into operation every
dollar in gold would have departed.
This itself would reduce the circulation
about one-third, bringing it down from
$21 to SIS per capita. And without gold
to back it we would be down to a silver
standard even before free cottage began,
and the purchasing power of the remain
ing circulation would be reduced one
half. That is, in place of $21 per capita,
that which remained would possess a
purchasing power of 81 to So per capita.
The country could not do business on
that amount, and failures, loss of
employment and panic would follow.
1t is also to be kept in mind that
there is an important difference between
the dollars o in circulation and those
proposed to be coined by the Bryan party.
The government has purchased the bullion
for its present silver dollars and coined
them on its own account, regulating the
amount according to its ability to hold
them up to gold. The Bryan party pro-
poses free and unlimited coinage by the
government on private account alone. 1t
is not to purcha Sc a dollar of bullion for
coinage, it is not to own a dollar after it
is coined. The mine owner in Arizona
and the silver bugs in Mexico, Australia or
India can bring their bullion to the
American minis and have it coined free
of charge. He can then carry it away
and can use it to pay his debts. But he
cannot enforce its acceptance anywhere
else. The stamp of the government will
be of no value except as a certificate of
| weight, for the government cannot be
held responsible for the property of pri-
| vate individuals. The silver dollars now
In existence have been used as a basis for
the issuance of silver certificates s'pay.
able in coin" but the government can
not issue certificates based on these pri-
vste dollars, because it will not own the
coin with which to redeem them. Hence
their owr ers must throw them upon the
market for what they will bring. With
all the silver in the world, produced at a
cost of about 40 cents on the dollar, in
active competition with them, they will
go down and down till they touch the
price of nickel or copper tokens.
The effect Of such coinage upon the
wages of labor will be appalling. Take
the railroads, for instance, the greatest
employers of labor in the country. Their
charges for travel and freight are fixed
by law. The free coinage dollar, being
legal tender, must either be accepted by
them or they must close business. They
will be forced to nav labor in the mr.