The Philipsburg mail. [volume] (Philipsburg, Mont.) 1887-current, 1896-08-06
N. 0. NELSON FOR SILVER
The Well Known ST. Louis Manufac
turer Declares Himself.
On Steadily Declining Market Men
Will Hold Back from Investing
and Buying.

"Up to few years ago had given
! little attention to the currency ques-
ton. So far as l considered it at all,
it seemed conclusive that one standard
was ali there could legitimately be, one
final money article into which all cur
rency, and thus all financial transac-
tions, must be convertill'. How SIM
pie most of the public questions seem
when regarded superficially
"When the political prominence of
the currency question became accentu
ated by the panic, the withdrawal of
I'D, the loss of business, and the idle
ness of men with families to support, /
began to read and think. I was a gold
standard man. and was prejudiced by
the fact of silver advocacy coming al
ducing states. This looked like protec-
tion in the manufacturing states-self
interest carried into public affairs. I
first read President Andrews Honest
Dollar. | saw clearly enough that
contracting the standard money meant
q corresponding reduction in prices
General Walker and other authorities
confirmed my own opinion that the
quantity of standard money had di
rect and marked effect on prices. On
a steadily declining market men will
hold back from investing and buying
the enterrrisng men will suffer, fail
1,n Il 1,1,
be harder to pay. Industries are chiefly
carried Oh by ct er setic, sanguine men
who use borrowed capital and credit
to the fullest extent. A regular de-
cline in their merchandise in hand
adds greatly to their chances Of fail
ure. The disinclination to invest tends
strongly to repress industry, the fail
ure of employers dislocates employment.
Thus it was apparent that precipita-
tiOn of the standard money and depre-
citation of prices ten led to depress in
dustry. pre- e;ipitate panics, and throw
/ III iustrious men into unsteady employ
ment or enforced idleness. The rate of
wages is a small matter compared
with the steadiness of work. The per-
sonal decentralization of workers and
workers families is greatly increased
by lack of work and broken income.
'NeXt my attention was directed to
Mexico, where my own business con-
nectiOns gave me some personal knOwl-
edge. In the twenty years OF our gold
standard we had been beset with panic
and depression. Almost half of that
period has been dull times, and three
distinct financial panics had turned
business men gray, and had converted
numberless wage -earners into vagrants
and tramps. Starting from revolu
tionary collection of states, with
almost no industries, and with an ig-
norant population, Mexico had pro-
gressed and prospered in phenomenal
way.
my own business with Mexican
merchants, manufacturers, and miners
had steadily grown. Scarcely ever a
failure occurred and frequent inter-
views with Mexican customers brought
the information that wages had ad-
vanced, that business aud employment
were steady, and capital abundant
Foreign investments flowed in freely.
"All this while Mexico had free
coinage of gold and silver, and, conse-
quently, a silver currency which was
steadily depreciating in comparison
with foreign currency and gold. But
prices did not depreciate. A house or
a machine or horse or wheat was
worth as much this year as last, and
would be worth as much next year.
barring minor fluctuations. Fears of
decline retarded no one, the actual
decline retarded no one. Men had reg
ular work. Imported goods were CON
verted from the foreign invoices to the
local currency, sold and paid for accor-
dinghy, without other difficulties than
we find in pounds sterling or francs or
marks into dollars.
international exchange is exchange,
and a bushel Of wheat or an ox's hide
will bring a yard OF woolen, cwt. of
tin, just the same whether pound
sterling stands for five American dol
lars or nine Mexican dollars. 1t will
take no more work to produce the
wheat or the hide, whether it is rated
at two shillings or at four. | thus
found that no disadvantage had ac-
crued to Mexico by reason of her free
coinage and silver standard. but man
lfest advantage. Our own conditions
are not identical with those of Mexico,
but the unfavorable influences of a
coin contraction and lowered prices are
intensified by our greater dependence
upon trade and credit. AS we have
suffered vastly more than Mexico, as
we are better situated to stand on our
own feet, reached the conclusion that
free coinage had no terrors in store
for us, but, on the contrary, would i'm
mediately restore prosperity, and thus
became free coinage man at the old
ratio independent of other nations. By
your leave l shall later say a word
about the so-called 50-cent dollar and
reputation. IN. o. Nelson in the
Outlook