The Indianapolis journal., 1896-06-16
BYNUM ON SOUND MONEY
TALKS TO A LARGE AUDIENCE OF
WORKINGMEN.
shows that Free Coinage Would Re-
but Not Increase Wages.


sound money last night in a new store
room at Massachusetts, avenue and John
street. There were about go people pres
entail the room would hold-and the au-
dience was largely composed of wage earn
ers. While his speech was not as elaborate
as the one he delivered at English's Opera
House few weeks ago, he went pretty
thoroughly over the subject. giving his
torical review OF the legislation of this
country on the subject OF silver. and CIV
ing a clear explanation of the function of
money. In the course of his address he
touched upon one phase Of the question
he had not covered in any of his previous
talks. namely, the effect free coinage
would have upon the price of silver.
''The bullion value of our standard sill
YER dollar" said he, "is between 50 and co
cents Let call ii 80 cents. to be brief.
Now, its monetary value is 100 cents, be-
cause the government of the United States
stands behind 1t ready to redeem it with a
dollar OF gold. There is thus a difference
Of fifty cents between fits bullion and its
monetary value. When the mints are
opened to free coinage of silver the differ
ence between this monetary value and bull
lion value must be wiped out. for the own
er Of silver bullion would not sell 1t for
fifty cents when he could walk TO the mint
and have it coined into a dollar. These
two values must meet; either its bullion
value must rise to 100 cents or its none
tary value. its purchasing power, must
come down to fifty cents, or the one must
rise and the other fall until they meet.
'I have here a Mexican dollar. which
contains 41s grains of silver, or more than
our standard dollar of 4l2 grains. Yet you
can take our half dollar and purchase this
Mexican dollar. The Mexican dollar, not
being redeemable in gold is worth simply
its bullion value, and no more. It's pur-
chasing power is but half that of our dore
lars, and the moment our silver becomes
our money of final redemption it is apt to
go to the same level. But our free-silver
friends say that it will pay a dollar of
debt. That is true, but If we are to start
out on that theory why not go still fur
ther and have Congress pass a law declar-
ing 10 cents on the dollar legal tender for
a debt? 1t might even let those of US who
are unable to pay 10 cents on the dollar
out altogether. One proposition contains
just as much honesty as the other.
Now, would the bullion price OF silver
rise up to 100 cents for the bullion in our
standard dollar. or would the monetary
value. the purchasing power of the dollar
fall? This depends upon the supply and
demand. Our silver friends date the de-
cline in the price of silver from 1873. and
hold the law of that year responsible for
it From 1892 to 1873 we coined altogether
only $s000.000 OF standard dollars and $685.
100000 of subsidiary silver-sl43, O0O. 900 all
told. In 1874 We coined over $1,000. 900. in
1875 over S11 600 oc0 in 1876 over s2f Oo0, 900.
and In 1917 over $2S, 900 900 of trade dollars
Our mints were not closed to silver but
We were using more than ever before.
From 1878 to 1880. under the Bland Allison
act, we We coined S25,O0O,O0o a year, consuming
over 500. 900 600 of silver during that period.
From 1880 to 1893, under the Sherman pur-
chase law. we purchased more than we
could consume, at the rate of 54 600 OO0
ounces year. And let me say that it was
Just here that changed my views. / had
believed that II we should consume all the
product of the American mines we could
cause rise in silver that would bring il
up. to parity with gold. But when the
6ullion 6ud1 spectators ecu got through with their
went down and down. Thus In twenty
three years We consumed or absorbed
over 500, 600 900 of silver. and when we had
Thus the creation of fictitious "h demand
for IL would not raise the price for any
length of time.
the price Of silver. The first OF these is
the increased production brought about by
new processes of mining and refining
Of II dsS in ths World T proTSeS s
Ovo Its production has been so greatly
cheapened that the profit of mining It. even
The second cause lies in the fact that be-
ginning with Norway, Sweden and Dem
mark in 1872: eleven OF the most powerful
nations of the world have ceased to coin
or consume silver for monetary purposes.
With this tremendous cutting down Of the
demand and this great increase in the sup
ply or silver, do you think that we alone
can hold up its price when we open our
mints and say we will not redeem it in
''The price OF silver bullion would not
rise. but the monetary value OF our dollar
would fall It's purchasing power would be
one-half less, or, TO express it differently,
everything you have to buy would be twice
as high. Wages would not rise proper
tionately. do not have to tell you that
You would have to work two days 10 buy
purchases. Would money be more pienti-
ful? Not bit Of II. The moment you
make the coinage of silver free for the
cause the disappearance of the $500. .000 900
OF gold now in circulation. more than you
could supply the PLACE of by keeping the
mints busy coming silver for fifteen years.
The man who has gold Is not going TO part
with IL when he can buy the same thing
with cheaper money. Why, you would be
boarded and hidden in this city now because
it's owners know that, come what may,
that sold is always worth its full value.
The cheaper money always drives out the
dearer, and the very threat that our gov
ernment may open its n;ints TO silver has,
sent most of our gold into hiding. We have
a total circulation of about 81 900. 900 900.
Drive out gold and you have at once
caused contraction of one-third in our
circulation. Then the deprecated value OF
the silver dollar the moment the gold prop
Is taken from under IL. dragging down with
IL the paper dollar as well. would amount
TO a contraction OF another third. TO say
nf he 0f nf
credits that would ut once be brought
about"
EIr Bynum's points told with his hearers.
and he was frequently applauded. while he
was more frequently encouraged with