Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1896-10-28
If Bryan Is E1ected-W What
Then?

what the results will be?
AT Paterson on September % be said: Il
say to you now that my election means that
this nation shall open it's minis to the free
coinage of both metals at the earliest posi-
BILE moment. Not only that but my election
means that this nation shall treat the silver
dollar just as it treats the gold dollar, and
that we shall not issue bonds to buy gold"
If the treasury gold reserve is not to be re-
pleniShed by bond sales we all know it can't
last long. Foreigners would Immediately
call for their loans and balances here. and
holders of the 1888 900 900 of outstanding
greenbacks and treasury notes, according
to the United States treasury statement of
October i, 1867 would quickly withdraw the
S123, 600 of gold in the treasury, to either
export or hoard it, and leave the holders of
the remaining S200,000,000 to take their pay in
silver.
That this gold will almost Immediately be
exported Mr. Bryan admits. On September
with gold as our only primary money and
the fact that the little quantity Of gold can
be drained away at moments notice by
foreign creditors, it leaves us, etc."
As all our national bank notes are redeem
able in greenbacks, they too would fall with
them to silver basis
In short Mr.. Bryan's election would, as
soon as the present gold in the treasury is
exhausted, put our currency on silver bas-
is, and all debts, except where otherwise ex-
pressly stipulated, would be paid in silver.
1t will be observed that this would all hap
pen. even If no free silver coinage act should
ever be passed.
As interest on government bonds would
hence forward be paid in silver and also all
dividends on stocks. foreign capitalists would
dispose largely of their holdings in these, and
thus necessitate further large remittances
of gold
Their correspondents here and borrowers
of foreign money, being called on to pay up
would be compelled to call in their loans, and
draw their balances out of bank.
All creditors in this country who prefer
gold to silver dollars (Which includes the bulk
of them) would demand all debts due the N
paid, and getting greenbacks or treasury
notes for their bank balances, would present
them at the treasury for gold before it was
too late. IfimpOsSible to get gold they would
buy sterling exchange on Canada. The Her
aid reports that prior to October over S. 000,-
600 in gold had already been deposited in Ca
madam banks to avoid the risk of the coming
election.
In short every man who had a dollar COM
ing to him would want that dollar paid him
while it was still worth 100 cents, and before
it got to be worth but 90.
The business houses and other debtors
called on to pay up, would be compelled to
call on their debtors, and thus all the deb
tors in the country would be called on to pay
up Immediately. The demands on the banks
would compel them to call in their loans, and
If not paid, to sell or try to sell the collater
ais.
Debtors would be compelled to sell their
property at any price and where all debtors
were sellers at once, the declines would be
such as we have never seen before, because
there has never before been such wholesale
calling in of debts, and consequently selling
as this would cause.
Business houses the country oyer, being
unable to collect balances due them or to re-
aliZe on their stock, except at ruinously low
prices, II al all, must fail. Nothing could save
them.
Small depositors, nervous and following
the larger ones, would draw their balances
and runs on banks would become general.
With these runs upon all the banks they
must either break or suspend. In the cities
the stronger ones could combine and sus-
pend, but the weaker ones left out of the
combination, and all country banks, would
fail
The panic and ruin would far exceed that
of 1873 or of 1898, the latter of which, called
the ''SllVer panic, was caused by the appge-
henSiOn only of going on a silver basis. This
panic would be caused in part by actually
going on that basis
Mr.. Bryan admits this. In the Chicago con-
ventiOn he said: When you come before us
and tell US that we shall disturb your bust
ness interests, we reply that you have dis
turbed our business interests" And The St.
Louis GlObe-Democrat reported his saying
Il think 1t (meaning the victory of free coin
age mCvement will cause panic. But the
country is in deplOrable condition, and it
will take extreme measures to restore it to q
condition of prosperity"
In the general scramble by foreign and
home creditors for gold, as there is not
enough TO go round it would necessarily &C
to premium, with the inevitable result that
the S5l7, 100000 of gold now in circulation in
the United States according to the United
CIRCULAR l.,
WOULD be exported or boarded
As the total circulation of gold, silver
greenbackS, treasury notes, bank bills, silver
certificates and all other kinds of money in
the United States was on October l, 1896, ST.
,OOO forcing S5l1, 100000 of gold out OF
circulation would reduce the money in circu
, lation about on. third. That is to say, where
there are now s. of money in circulation
then there would be but s..
Such a radical and sudden contraction of
the currency would of itself alone, and en-
tlrely apart from any panic on account OF
the depreciation of the currency, cause 8
strIngency and panic such as we have never
known. But coming on top of the panic. the
ruinlL would spread would be difficult tC
describe.
Thus railroad stocks with gold mortgages
ahead of them las gold must be bought tC
pay interest, thus increasing if not doubling
this liked charge, and to that extent dimin-
ishing or entirely wiping out the net earnings
applicable to dividends) with earnings dimin.
lShed by the business collapse, would in the
general panic become absolutely unable to
realize on their collateral, and though a com
OInatlOn might save the strongest for time,
ultimately they, too, must go to the wall.
The decentralization would be complete.
In this general crash all factories, mills,
building operations, etc, would shut down,
and all classes of wOrlzmen, mechanics and
labOrers, except farm hands, be generally
thrown out Of employment.
Under the keen competition Of this mass of
unemployed for the little work left. it is clear
that wages, instead of rising, must in the
hOelI Iutul = Idl even LuOllSH paul lOF III O0-
preciated dollars, because of the many who
want employment, and must take 1t at any
price to save themselves and their families
from starving.
With no wages the unemployed laborers
could buy neither food nor clothing and the
diminished demand would cause the prices
OF grain, cotton and allfarm products to fall
as is always the case even in small panicS ;
and such want, suffering and misery would be
entailed upon the labOring classes, as we
never have known before.
Of course all mortgages part due or in de-
fault would be Immediately called in, and if
not paid. foreclosed, and the mortgagors
largely wiped out.
1t is needless to say that here would be
absolutely no money whatever to loan for
who would lend hundred cents or even 95
or 80, in order, later on, to get back but SO?
Mr.. Bryan says he does not believe the sill
Yer dollar would depreciate to 53 cents, or at
all, but would continue to be worth 100 cents
in gold as now.
Is this view sound?
If the silver dollar under free coinage is to
remain worth lou cents in gold it is apparent
that silver bullion must become worth 81 80
an ounce, for if worth less, bullion holders
would coin it for the profit, and this process
would continue until no profit remained;
that is, until the value of the silver dollar
was just the same as the value of the bullion
in it. If on the other hand the price of silver
bullion is not raised to 81 20 an ounce it must
inevitably draw the value of the silver dollar
down to the value of the bullion in it; as bull
lion would be coined until the two values
met.
To raise the value OF silver bullion it is
necessary to raise the value of the whole