Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1896-08-06

inOuCys 1lCI NLlFCI IuOllCy FdluOo
silver at from three cents to seven
"ents on the dollar higher than ours.
Ience, the European merchant or
banker must sacrifice from 3 to 7 per
cent of his full legal tender money in
order to RECON- it at our mints. Eu-
ropes sill :erware, like Americas sill
verwarN, carries on it the additional
value OF labor and,the manufacturers
profit.
"They threaten us with food of
silver from the far East, We an
swer the course of silver is inyaria-
bly, eastward and never toward, the
west. British India is a perpetual
sink of silver, absorbing it never to
return, by from $30,0OO,O0O to $50,
100000 worth every year. And In
dia's absorption of silver will lie en-
larged by the steadiness of price for
silver fixed by our re-opened mints.
"They threaten us with a sudden
retirement of $6OO,OOO,00O gold,
with the accompanying panic, caus-
ing contraction ard commercial dis
aSter imp ralled. We answer that
our total stock of gold, other tnan a
bout $l0,0O0,000 or $15,000,000 CIR
culating on the Pacific coast is al
ready in retirement. The gold held
in the treasury will remain there if
the secretary avaiIs himself of his OPP
tion to redeem United States notes
in silver. The gold in the banks
constitutes the quiet and undisturbed
portion of their reserve against their
liabilities. It will continue to do
money duty as such reserve after
free coinage for silver ls enacted.
Hence a premium OH it will not con-
tract the currency. The utmost pos
sible contraction of currency will be
the few millions circulating 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 1t, but congress passed it ov-
er the veto. Instead of a flight OF
gold, as had been predicted, we gain
ed by importation e4,000.000 the
first year, $70,0OO,000 the next and
$9O,000,OOO the third year. During
the twelve years that the act was on
the statute book we game } 1921 900,
600 of foreign gold, Instead of the
destruction of our credit abroad as
had been predicted, the United
States 4 per cent loan, which stood
at 101 on the day of enactment sold
at 120 per cent within three years,
and at 130 per cent subsequently.
Instead Of defeating the resumption
of specie payments on Jan. l of the
following year, the $24,O00,000 that
were coined in silver in 1878 and cir
culated by means of the silver certifi-
Gates, reduced the demand upon the
government for gold. Hence the
threat of disaster now is without
historic foundation.
"This is what will follow the re-
opening of our mints to silver: The
gold already in the treasury will re-
main there If common sense dictates
the treasury management; that Is, il
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 a portion of bank reserves against
bank liabilities. A premium on gold
will tend to increase our exports by
causing a higher rate of foreign ex-
J change; that Is to say, by yielding a
larger net return in dollars on the
sale Of bills of exchange drawn a.
: gainst goods imported. a premium
will tend TO diminish our imports by