The San Francisco call., 1896-07-23

that action be taken and we Will have the IN
teIligent cooperation of Russia, Austria ana
other European nations that have made in
edectual attempts by the accumulation OF goiu
TO provide for gold redemption, all OF wnom
know that their accumulated gold would silp
out of their boundaries like water out OF 8
sieve II gold redemption were attempted: FOR
1t is singular fact that there is not DEBTOR
country in the world that has been able 10
maint tain gold payments of its paper money,
except our own, and we accom- plish IL only Dy
bond issue, which in reality constitutes the
premium paid for gold.
But enough of international conference. IL
has simply been used as club TO beat down
National action on the silver question Are
we not, gentlemen, exaggerating the dlmcuI-
ties of the task before us2 Remember that IN
order to restore silver it is only necessary TO
absorb the current product of the mines. Inc
accumulated stock is in the shape OF coin bear
ing the stamp of.various governments, ana II
Is absurd to assume that the owners OF such
coin will send it here simply to receive the
American stamp. Silver coin ii is and silver
coin It would remain. There is no surplus
anywhere in the shape OF bullion, for the. bull
lion in the treasury vaults is constructlVely
coined and is represented by silver ceruncates
and treasury notes now in circulation.
The current product OF the mines Is now
all absorbed in current uses-in the arts, IN
coinage and for other purposes. Any demand
that we create would be a new demand, ana
would have tendency TO increase the Value
OF the current product. But we are told thal
increase of value will increase production. Of
course, no man can foretell what the proouc-
limitation of the future is the limitation OF the
past, and we all know that all the silver
coined in the world-the result OF operation OF
silver mining for ages-can be put into CUBE
of sixty-six feet. The world has never pro-
duced enough OF metallic money. The TACT that
to-day over one-fourth OF the money OF tne
world is uncovered paper money proves TINS.
Now, what increased use can you suggest tor
silver in this country that will increase the
value of the product of The mines7 Our per
capita circulation is currently stated to be Tzz
to $25. Our population is increasing at the
rate of over two millions q year. " would
take between $4,000, 600 and $50, 100000 a
year to maintain ihe present per capita so long
as the population increases at that rate: But
Such per capita circulation might be sum-
cient for a credit nation Ike England, whose
area is limited, whose population Is qense, e.
whose exchanges are easy and whose ability 10
increase her coin reserves is made easy oy the
great debts owing 10 her people. But certainly
1t is not sufficient in a vast debtor country
like this, with its immense area, its scattered
population and its limited methods OF ex-
change. If we should increase our per capita
to $50 we would have to coin S70,OoO,oO0
year for five years.
Besides. our National bank circulation has
been gradually contracting and is bound to De
Withdrawn altogether when the balance OF
trade is restored III our favor by good prices
for our products and the surplus OF revenue is
applied to the National debt 1t will take
$40 1000 600 a year for i've years to take the
place of the National bank notes, so that we
have here an increased demand for silver of
nearly $500, 000, 900 in this country, without
any Initiation or expansion beyond per capita
of $50 This demand is equal to the entire
current product of the mines, which is already
exhausted in current use Can any man say
that a new demand of such magnitude shall
not restore the old parity? And ii the old
parity is restored, viii not this talk about
50-cent dollars and q debased currency en-
tireiy cease? The gold monometalilsts pro-
pose to maintain this parity by the redemption
OF silver in gold. We propose the rightiul
method of restoring parity by increasing the
use and consequently increasing the veiue OF
silver and by restoring the time-honored use
as money of redemption equally with gold.
But suppose the fears OF our aIarmist friends
are realized, and that nature instead of eX-
posing her silver treasure as she has done in
the past, gradually and progressively to meet
the wants of the world for money, should
expose it in large abundance. is not this a mat
ter of easy control? Recollect that silver
mines already existing Will soon be ex-
hausted. The Comstock lode IN my own State,
which alarmed all Europe is now reduced in
its production to $500, 600 per annum. The
mines of the future are in the ungranted
mineral lands OF this country and Mexico, for
remember that Mexico and the United States
produce two-thirds of the silver of the world
Will IL not be easy 10 limit those grants, either
by exacting royalty or by total withdrawal, SO
that the silver stores of the future may not be
unduly drawn upon for the present, and that
the calm and equal production of silver COM
mensurate with its use may be established and
secured?
For three years you have been on the gold
standard. Do you like il? For twenty-three
years you have waited for International ae-
ton. Can you wait longer, and who are 10
take the lead in this reform-the benefciaries
OF the gold monopoly or its victims? And who
are the victims? Look on the map of your
country and mark the area OF distress as indi-
Gated By the railroads that have been placed
in the hands of receivers since 1893, compris-
ing nearly one-third of the entire mileage OF
the country. You will find II in the mining
belt, comprising six States and three Terri
tories. whose basis of industry, with which
al their industries, agricultural commercial,
railroad and banking were correlated. is suffer
ing from the decline of silver. Mark the
wheat belt of the Northwest and the cotton
belt of the South and you will ind that in
those areas devoted to mining, to wheat-rais-
ing and cotton-growing more than one-h half of
the local railroad mileage has gone into the
hands of receivers since 1893.
Low-priced products will not stand high
rates. Producers who produce at loss can
not buy goods that require transportation,
and so the railroads have suffered in the trans
portation OF the products OF the region through
which they pass and of the goods which they
return to the producers in exchange. The
gradual fall in the price of silver has for
twenty years seriously affected the Western
and Southern States, as their products have
been compelled to compete with the product
OF silver-standard countries, the prices OF
which, stable in silver, have gradually gone
down in gold until their price is now one-half
of what 1t used 10 be.
1t is true that the New England and Middle
States suffered but little until 1898, and then
=
South and West and loss from their railroad
securities and other interests in tire South and
West They suffered the least because they
were creditor States whose margin of security
did not disappear until 1898, and also because
they were manufacturing States whose indus
tries were protected against cheap European n
labor, thus enabling them to monopolize the
home market. They have not yet suffered
from Oriental competition, for the manufac-
tured production of those countries, stimulated
by the margin OF security, did not disappear
until 1893. They have not yet suffered from
Oriental competition, for the manufactured
production OF those countries stimulated by
the appreciation of gold, has thus far
met only the requirements of the local
markets, although IL has seriously affected
English and German manufacturers who used
TO supply such markets, but the Eastern States
will soon suffer from Oriental competition.
Japanese production is looking out for Ameri-
can markets, for their products viii naturally
seek q country whose labor cost is the highest
No tariff short of absolute exclusion will pro-
tect the Eastern States against this invasion,
and exclusion is impossible, for the Western
and Southern States will not consent to a
policy which surrenders their products to the
competition of silver-staDdard countries. 1t
is evident that, with view 10 protect the
products OF this country, whether from the
iarm or the factory, against the products of
silver-standArd coun tries, our policy should
be by increasing the use of silver, TO pull .up
its value and thus, by the use OF q competitive
metal, TO pull down the value OF gold By