The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-07-23

vest in its production. Then the Dor
! rover of dollars to invest in the pro-
duction of wheat, being reasonably
sure of a profit from that employment
Of the money.
CAN AFFORD TO PAY INTEREST
for its use as a part of his profit In
other words. interest is a share of the
! profit on the employment of money. Sc
I that abundant money readily obtain
able which is 10 say really cheap
money. is the money which commands
a high rate of interest, as a share OF
/ the profit Of the borrower in using it.
! AS we appeal to the country in the
] justice of our cause on two points in
common, inquiry must be satisfied as
/ follows:
THE experience Of Mexico is held ur
! to our alarm. We answer, first, that
Mexico is conspicuously prosperous al
/ home. Her increase in manufacturers
railway earnings and the like in re-
! cent years is phenomenal.
| Second, Mexico is no criterion for
the United States. for the reason that
she has a foreign trade indebtedness
Of about $20,000,O00 annually in excess
of the value of her exports of cotton,
sugar, coffee, hides and the like, which
must be paid for in the surplus prod
UGH of her mines. Her silver, there
fore,
GOES ABROAD AS MERCHANDISE,
and at valuation fixed by the out
side world. The United States, on the
other hand, is nation of 10000, 900
/ people, scattered over a territory sew
enteen times the area of France. A
single one of our railway systems, the
Erie, exceeds the aggregate railroad
mileage of all Mexico. We offer an
employment for money to an aggre-
gate greater than the worlds spare
silver will furnish. Hence our silver
money, at home and abroad, will be
valued as the money of the United
States. The opposition threatens US
with a flood of Europe's silver upon
our reopened minis. We answer, Eu-
rope has no silver but her silver money.
Her silver money values silver at from
3 cents to cents on the dollar higher
than ours. Hence the European mer-
chant or banker must sacrifice from 8
to Z per cent Of his full legal tender
money in order to recon it at our
minis. Europes silverware, like
Americas silverware, carries in it the
additional value of labor and the man
ufacturer's profit.
THEY THREATEN US
with a flood of silver from the far east.
We answer that the course of silver is
invariably eastward and never toward
the west. British India is a perpetual
sink of silver, absorbing it never to
return by from $50, 1000 900 to $50, 600, 900
worth every year. And India's absorp-
ton of silver will be enlarged by the
SteadinesS of the price for silver fixed
by our reopened minis.
They threaten us with sudden re-
tirement of $500, 100000 gold with an
accompanying panic, causing contrac-
ton and commercial disaster unparal-
leled.
1--WE answer that our total stock of
gold, other than about 100000, 900 or
$50, 900, circulation of the Pacific
coast, is already in retirement Prac-
tically all our gold is in the United
States treasury or held by banks The
gold held in the treasury will remain
there, if the secretary avails of his
option to redeem United States notes
in silver. The gold in the banks con-
st1tutes and quiet and undisturbed- por-
ton of their reserves
AGAINST THEIR LIABILITIES.
cit will continue to do money duty,
as such reserves after free coinage of
silver is enacted. Hence, a premium
on it will not contract the currency.
The utmost possible contraction of the
currency will be the few millions in
circulation on the Pacific coast and
this will be retired but slowly.
"A similar threat of flight of gold
was made for the Bland act of 1878.
President Hayes was urged to veto it,
but congress passed it over the veto.
Instead of a flight of gold, as had
1oa +oI Il
tons, 81, 900 900 the first year, SIC, 600. 900
the next and $50 100000 the third year
During the twelve years that the act
was on the statute book we gained
1921 600, 0G0 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. sold
at 120 per cent within three years, and
at $50 per cent subsequently. Instead
of defeating the resumption of specie
payments on January l of the follow
ing year, the 26,000,0O0 silver dollars
which were coined in 1878 and circulat-
ed by means of the silver certificates,
reduced the demand upon the govern
ment for gold. Hence the threat of
disaster now IS
HISTORIC FOUNDATION.
This, too, is what will follow the re-
opening of our minis TO silver. The
gold already in the treasury will re-
main there, if common sense dictates
the treasury management-that is, if
the treasurer exercises the option to
redeem United States notes in silver
A premium ON gold will not occasion
a contraction of the currency, bank
boards of gold continuing to serve as
portion of bank reserve against bank
liabilities.
a premium on gold will tend to in
crease our exports by causing a higher
rate of American eXchange-that is to
say, by yielding larger net return in
dollars on the sale of bills of exchange
drawn against goods exported. A pre-
MUM will tend to diminish our i'm
ports by increasing the cost of bills
of exchange with which to pay for
goods imported.
1.-THE tendency of increasing our ex-
ports and decreasing our imports will
be:
''F'irst-To set our spindles running,
swell the number of paid operatives,
increase their wages, thereby adding
to the number and
PAYING CAPACITY OF CONSUM-
ERS,
and thus enlarge our home market for
all home products and manufactures,
With prosperity in general as the re-
suit assured. The tendency of increas-
ing exports and decreasing imports will
be, second, to establish a credit bal
ance of trade for the United States. A
credit balance of trade means that Eu-
rope has become out debtor and must
settle with us in money. Europe's sill
yer money is over valued in her gold,
with ours. by from to Z
cents ON the dollar. The European