The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-07-23

wheat, being reasonably sure OF prony from
cay interest for its as part OF his pront
or 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 cheap money, is the
money which commands high rate Of inter-
est. share of ths profit OF the borrower In
using 1t.
"As we appeal to the country. in the justice
Of our cause, one or two points OF common
inquiry must be satisfied as follows The ex-
perience of Mexico is held up for our alarm.
We answer first that Mexico is conspicuously
prosperous at present. Her increase In man
ufacture, railway earnings and the ike IN re-
cent years Is phenomenal. Second, Mexico IS
non criterion for the United States, for the
reason that she has form Of trade indebted
ness OF about $40, coo. 900 annually in excess OF
the value OF her exports which must be paid
for in the surplus product of her mines. Her
silver goes abroad as merchandise and at
valuation fixed by the outside world. The
United States, on the other hand, is a nation
Of 10000. 900 people, scattered over a terri
tory seventeen times the area of France.
single one OF our railway systems, the Erie,
exceeds the aggregate railway mileage OF all
Mexico. We offer an employment for money
TO an aggregate greater than the worlds spare
silver will furnish us. Hence, our silver
money, at home and abroad will be valued as
the money OF the United States.
me opposition threatens us with a flood
OF Eufope's silver upon our re-opened minis.
we answer. Europe has no silver but her
silver money. Her silver money values sill
yer at from three cents to seven cents on the
dollar higher than ours. Hence the Euro
pean merchant or banker must sacrifice from
TO per cent OF his full legal tender money
in order to recon 1t at our minis. Europe's
silverware like Americas silyerware, car
rfes on it the additional value of labor and
the manufacturers profit.
They threaten with a food of silver
from the far East. We answer that the
course Of silver is invariably eastward and
never towards the west. British India is a
perpetual sink of silver absorbing it, never
to return, by from $50 900 900 to $50 600 900
worth every year. And midas absorption of
silver will be enlarged by the steadiness Of
price for silver fixed by our re-opened mints
They threaten us with sudden retire
ment OF $500, DOC, 900 gold, with the accompany
Ing panic, causing contraction and CONNER
cial disaster unparalleled We answer that
our
TOTAL STOCK OF GOLD,
other than about $40 OOo, 900 or SIS 900 900 cir
culating on the Pacific coast, is already in
retirement The gold held in the treasury will
remain there II the secretary avails himself of
his option to redeem United States notes in
silver The gold in the banks constitutes the
quiet and undisturbed portion of their re-
serves against their liabilities. It will con-
tinue to do money duty as such reserve after
free coinage for silver is enacted. Hence a
premium on it will not contract the cur
rency. The utmost possible contraction of
the currency will be the few millions circu-
lating on the Pacific coast, and this will be
retired but slowly.
"A similar threat of fight of gold was
made for the Bland act Of 1873 President
Hayes was urged to veto 1t, but congress
passed 1T over the veto. Instead OF flight
of gold as had been predicted, we gained by
importation 81 900, 900 the first year. $40 00O,s
900 the next and 800 300, 600 the third year.
During the twelve years that the act was
ON the statute book we gained $221 900, 900 OF
foreign gold. Instead of the destruction of
our credit abroad, as had been predicted,
the United States per cent loan which
stood at 101 on the day OF the enactment,
in, fhra wa and
at 100 per cent subsequently. Instead of de-
feating the resumption of specie payments on
Jan. 1 of the following year, the $24, 000, 900
which were coined in silver In 1873 and cir
culated by means of the silver certificates,
reduced the demand upon the government for
gold. Hence the threat of disaster now Is
without historic foundation.
This is what will follow the reopening
of our minis to silver: The gold already In
the treasury will remain there. if common
sense dictates the treasury management;
that is IL the treasurer exercises the option
to redeem United States notes in silver. A
premium on gold will not occasion a con-
traction of the currency, bank boards or gold
continuing to serve as portion OF bank re-
serves against bank liabilities. A premium
on gold will tend to Increase our exports by
causing higher rate of foreign exchange;
that is to say, by yielding larger net return
in dollars on the sale of bills of exchange
drawn against goods exported. A premium
will tend to diminish our imports by increas-
ing the cost of bills of exchange with which
TO pay lOr goods imported. Inc LeuueHcy Oh
increasing our exports and decreasing our
imports will be to set our spindles running,
swell the number of paid operatives, increase
their wages, thereby adding to the number
and capacity of consumers, and thus enlarge
our market for all home products and manu-
features with prosperity In general as the
result assured.
1.-THE tendency of increasing exports
and decreasing our imports will be, second
to establish credit balance of trade for the
United States. credit balance of trade
means that Europe has become our debtor
and must settle with in money. Europe's
silver money is overvalued in her gold COM
pared with ours, by from three to seven cents
on the dollar. The European merchant or
banker will therefore make his trade settle
ments with us in gold, more profitably by
from to per cent than in his silver.
With the instant that European trade settle
ments with the United States are made in
gold, parity for our gold and silver money
is established in the markets of the world
Herewith the 37125 grains Of pure silver
in our silver dollar. and the 1922 grains of
gold in our gold dollar becomes of exactly
equal worth as bullion in New York.