The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1896-07-30
IMAGINARY DANGERS OF FREE
COINAGE.

ourities; that European investors would
throw up their holdings Of American rail-
road bonds stocks, and other securities, on
Cur markets for sale at any price; that
consequently prices Of all securities on
our markets would be greatly depressed,
and the country would experience an un-
exampled period Of Industrial stagnation.
Such is the assumption of the speculators
who believe or feign to believe that the
unlimited coinage Of silver would give us
fifty cent dollar" and result in cutting
the value Of all American securities in
half.
But free coinage Of silver would not
give us "flity-oent dollar" Under free
coinage the value Of silver bullion and
silver coin would be the same. Such a
thing as dollar containing but fifty
cents worth Of silver would be impos-
sible, for 871A grains Of silver bullion
being convertible, into silver dollar, by
the government, free of charge, would
be the exact equivalent Of the dollar, just
as at this time 93s.s grains of gold Isl the
equivalent of a gold eagle. 1t is clear
no one will sell 232.2 grains Of gold for
less than $40, 80 long as be has the privi-
lege to take IL to the mint and receive q
gold eagle in return. And so 1t is clear
that II the same privilege was given the
owner Of silver bullion as the owner Of
gold bullion now enjoys, no one would
sell 37tH grains Of silver for less than
a dollar. Therefore, under free and un-
limited coinage the silver dollar would be
honest and good money, for after being
melted down 1t would still be worth just
as much as before. The unlimited coin
age Of silver would restore the parity
between gold and silver and the silver
dollar would be Just as acceptable In pay
mer of interest and principal to the
torf ign holder Of American securities as
the gold dollar.
But it is not with the silver dollar that
we would pay our foreign debts; neither
is it with gold. We would pay our debts
abroad after the opening of our mints to
silver, Just as we pay them now, with
exports of merchandise, chiefly farm
products. The only difference would be
that we would get better prices for our
exports. The lower the prices at which
we export our wheat and other products,
the greater Is the burden OF our interest
charges and the greater is the real income
of the holders of our securities, who
practically receive, owing to the fall In
prices, double the quantity Of products In
payment of interest charges that they are
entitled to receive.
The gold monometallists also tell us
that the free coinage of silver would con-
tract our ourrencv by one-third through
forcing gold and all credits based on gold
out of circulation and thus cause prices
to fall proportionately. II SO, then the
fall in prices would result in increasing
the actual income of the foreign holders
of American securities, who would receive
three bushels of wheat and three pounds
of cotton where they now receive but two.
II such was the result of free coinage, our
foreign creditors would receive, not a
dollar worth fifty cents of the present
dollar, but dollar worth one hundred
and fifty cents. Yet we are told that the
prospect of this would cause foreign in
vestors to unload their securities on our
mark in a PANEL
The election of President pledged to
bring about the restoration Of silver to
It's place as money might result in stock
exchange speculative panic, but the
country at lsrge would not be injured
thereby. If the foreign holders of Ameri-
can securities, blind to their own inter
ests, chose TO sell on our markets, and to
our investors, the securities they now
hold without regard to price, they would
be the losers, not our investors enabled 70
pick up valuable securities at panic
prices. The country would not be injured
by what would be In effect, voluntary
peeline down of our foreign Indebtedness
on the part of British and German hold.
ers of our securities. The opening of our
N ints to free coinage would not impair
the value of such securities. On the
contrary it would result in making them
more valuable. The value of all securi.
ties, whether railroad bonds or stocks,
farm mortgages or the evidences of In
debtedness issued by other corporations
and individuals, is dependent upon the
ability of the debtor to earn and pay the
interest. And imetallism would bring
renewed prosperity and hence add to the
value of securities in general The great.
er the profits of industry, the greater the
net earnings Of railroads, the more SO.
cure, and hence the more valuable do Sc
curities OF all kinds become II
our foreign creditors, seized by unreason-
ing panic on the election of free coin.
age President, should sacrifice their
holding Of American securities, they
would be the sufferers from their own
panic.
LOOK OUT FOR THE FARMERS.