The herald., 1896-02-05
Free Coinage or Free Trade

Free Coinage or Free Trade
Los ANGELES. Feb. 2.
EDITOR HERALD-Dear Sir: / have read
with much pleasure Thomas G. Sherman's
article in today's HERALD, headed Free
Coinage or Free Trade: and while agree
with Mr.. Sherman most fully in his free
trade views and have held the same kind
for the last sixteen years, cannot agree
with him on those of free coinage.
Mr.. Sherman says: Under free coinage
we would lose our gold for European sill
yer and gold would go to a premium, and
our currency instead of being increased
would be contracted.'
Let us see if he is correct in his views, so
far. few years ago the senate of the
United States passed free coinage bill
and within ten day of that time and with
out the same having been enacted law of
the land, the price of silver rose 80 cents
an ounce, both in New York and in Eu-
rope. That looks rather like gold going to
discount, instead of premium. If the
free coinage bill had passed the house of
representatives and been signed by the
president, silver today would probably
have been above par. as it was before it
was demonetized in 1873. The United
States heing the largest producer of silver
Ill tuS WOTtus 10 IL uOt InCTe W our
advantage to receive a big price for it than
to accept a small one? As to the produc.
tion of premium on gold and contrac-
ton of the currency, gold did not leave this
country when silver went up in price. but
is leaving now, when silver is down.
Neither was there any contraction of the
currency then: but. according to the treas
urer's report, there has been considerable
one in the last one or two years.
Free coinage would only benefit specu-
lation, and not the masses"
Labor, practically speaking, is the pro-
ducer of all wealth, and the less of the
profits labor has to pay out TO meet
an Indebtedness, it is clear that labor is
that much better off. In 1865, after the
ending OF one of The greatest wars, al
most, in history, This country owed an
indebtedness of about two and one
half billion dollars. Today, thirty-one
years later, after having nearly every man,
woman and child in the land toiling to get
rid of this deDt we still owe in round
figures about one billion dollars. Notwith-
standing we have paid one billion and a
half of the Indebtedness, it will now take
more wheat, cotton, corn, wool, and, gem
orally. the products of labor, to pay what
is left of the debt than il would have taken
in 1865 under free coinage to have paid
for the whole.
There are many new millonaires after
imitation, and few men of enormous wealth |
have gained much more in proportion"
1t is not the habit of millionaires to oh |
ject to good thing for themselves, neither
from a lack of intelligence or too much |
philanthropy; and az long as they so Bit |
terly assail the free coinage movement in |
this country, with hardly any exceptions, |
the thought occurs to the average voter |
that iiis interest may lie in a different |
financial direction from theirs.
Neither silver coinage, fresh green
backs. or any change in the currency, will
benefit the masses"
Without theorizing let us have few facts
right at our doors. In 1872, under free
coinage, in raising cotton, wages or the
profits OF the producer have declined in
this country from so TO as per cent. In
Mexico, a free coinage country, notwith-
the heavy drain on her resources
by having to pay her interests on foreign
Indebtedness in gold, the condition of the
laboring classes has steadily improved,
and today wages are from 20 to 80 per
cent higher than they were in 1872, and
that not only in Mexican silver, but in the
product of goods that days labor can be
for. The farmer of this country,
the wheat grower of this state,
is rapidly being driven into bankruptcy by
the advantage given the wheat grower in
silver standard country. Every decline in
the price of silver but enables the silver
country wheat grower to produce
that much cheaper, and, of course. to the
injury of the California gold standard
wheat producer. The manufacturing Ia
soon begin TO feel the competition of silver ]
using countries like Japan and others. and |
will soon be in as bad condition as his agri-
cnltural hrotber 7 p