The herald., 1896-07-12
Replying to rir. Wrrd

accommodations,
sponsibility for the sentiments expressed)
Elal Replying to 7r. Wrrd
gEditor Herald: Mr.. John Shirley
Ward, In your issue or TINS uay JAMS ',
exception to some remarhs ,. On -, ,io ranan,
question made by the Times III recent
81 issue. and advises the Times editor 10
@eet down to the facts, q noteworthy ad-
smonition. s,u ..
Tighten the editorial shouider OF tne
TTn,ss' editor. but would like to suggest
~ Mr. Ward the wisdom of using his own
Mr. Ward quotes from the Times as
follows: Free and unlimited coinage
Of silver would drive an gold @ out Oh cir
Now we propose to refute this hack
lneyed argument Of the goldites by a few
facts gathered from our national expert
ence. When the nd-Allison bill be-
gan the coinage of silver we had $2l3,-
'5I99,9 ,977 of gold in thetreasury. During Its
eleven years Of coinage 1t had coined
more than four hundred millions of sill
yer. and then there were 95,b63O29 OF
gold In the treasury. making gain OF
$4S2, ,o52 of gold. sum of one dollar of
gold gained for each silver dollar
coined. Does this look like free coinage
of silver will drive out the gold?
At the time Mr.. Bland introduced his
silver bill in5congress November s. 1S7O,
the government was preparing for the
resumption of specie payments.
1t had been ,and at that time was, en-
gaged in accommodating gold by selling
bonds. November 7th Mr. August Bel
mont. a member of the syndicate that
was engaged in handling the bonds.
wrote TO Mr.. Sherman, then secretary
of the treasury, as follows: II fear that
the threatening position of the silver
question will check completely any de-
mand for the per cents here and In
Europe. The damage which the pass
age Of the bill will do both here and
abroad cannot be overestimated."
In his Forty Years John Sherman says:
"On November 9Th 1 was advised that
the per cent bonds were selling at 80
and interest, and In small way only.
E"The syndicate had bought in the mar
ket about S750,000 of the bonds to pre-
vent further depreciation"
On the same day Mr. Belmont wrote
to Secretary Sherman: after confer
ence and consideration Of the whole SUBJ
ject, 1t is the conclusion of all the as
eooiates in Europe and here that IL Is
injudicious to undertake further nego-
tlations of As. during the tendency of
the legislation proposing to make silver
a full legal tender as the discussion
has checked dealing in bonds by the
public"
November 10th Secretary Sherman re-
ceived the following from Mr.. Conant
the treasury agent In London: 'If, In
any legislation that may be enacted re-
garding silver. provision could be made
not only exempting the debt and the
interest thereon from payment in sill
yer. but declaring that payment shall
be made In gold coin. it would aid US
immeasurably In placing bonds"
| think I have shown pretty clearly
what erect the suggestion even of free
coinage had on the market at that time
Furthermore, the Bland-Allison act
was not a free-coinage measure, but
contained this provision: And the Sec
rotary of the treasury is authorized and
directed to purchase, from time to time,
silver bullion, at the market price there
Of. not less than s2,O0O.0OO nor more
than S4OO0,000 worth per month,
and cause the same to be coined
monthly as fast as so purchased; and
any gain or seigniorage arising from the
coinage shall be accounted for and
turned into the treasury"
This certainly is not free and unlim-
tied coinage of silver, but very limited
coinage and, furthermore, all such coin
ed silver could be exchanged for its face
value for gold. which could not possibly
be the case under free and unlimited
coinage. Again Mr.. Ward quotes from
the Times:
Again the Times says. The holder
OF gold would not employ 1t for the pay
ment of his debts when he could pay
them in dollars worth only half as much
as gold dollars. A man who owed 500
or had 500 In gold would be foolish to
pay the debt with gold when he could
exchange $50 Of his gold for $1O0 in silver
and thus pay off his debt and have left
$50 in gold"
And replies as follows: I'VE advise
the Times to try this experiment. Let it
take $l00 in gold to any bank where it
may owe 500 and buy from that bank
with Its 500 two hundred in silver
Shrewd as the editor Of the Times NAV
hof ho ho =
simply laugh at him as a joker"
Let us suppose free and unlimited
coinage OF silver to be commenced Inn
mediately, who would be SO foolish as
10 pa hundred dollar obligation with
go)> coin. when for fifty dollars in gold
could buy silver bullion enough to
pe stamped by the government into one
hundred silver dollars, and with those
debt?
OF course, our silver friend saw that
silver under free coinage will immed-
lately rise In value, but we have no
proof, that, beyond the first rise, to meet
the unusual conditions 1t will not sink
PACK TO its present price; in fact, 1t
reached It's lowest value while the gov
ernment was purchasing the enormous
amount OF 226O tons Of silver year.
Mr.. Ward again quotes from the Times.
Again the Times Is neither fair. nor
candid, in the following:
lHc european nOlQerS OF American
securities, moreover, would demand paw.
ment of the same, and If all these secur-
tiles are made payable in gold vast
sums Of that would speedily be drained
to Europe If the Times refers to cor
poration. municipal and private obliga-
ttions held in Europe, which are made
payable in gold, how, we ask, is free
coinage to affect such contracts, as no
one contends that free silver will affect
obligations made by their language In
gold coin"
The manner in which free coinage
would affect the payment of gold obli-
gations would be as follows: Unlimited
coinage of the cheaper metal would drive
the dearer metal out of the market. so
that the gold necessary for us to nos
sess In order to liquidate gold obliga-
lions would have to be purchased at n
premium "'
TO quote Mr.. Ward once more: "The
United States has only one gold oblipa.
uon. and that is to pay its gold certi-
to pay them" - va oeposit
surely it cannot be that Mr.. Ward
iIntenos 70 convey the impression that
the government has on deposit suficiant
goId 10 meet all the OUTSTANDING roid
certincates? And It must furtharnn,ora nora
ne remembered that what gold we havs