San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1896-08-20
FIFTY CENTS ON THE DOLLAR.
The Price at Which Government
Bonds Would Sell Under
Free Silver Regime.


Free Silver Regime.
62 Gresham House, London, +. c.,
July 10, 1S96-Messrs. William c..
Little & Bro, St Louis: In reply to
your letter of LIST inst. asking for our
opinion as to the price at which a
United States government per cent
silver loan would sell in our market,
we beg to say that if your government
should resort to such a course it
would in all probability be unable to
borrow at all at any price. There are
no government loans, not even of any
of the dishonest South American re-
publics, payable in silver, either listed
on or dealt in on our Stock Exchange
to guide us as to what value specu-
lators would put on silver or the
promise of the United States.
There is, however, a Mexican rail
way company 6 per cent mortgage
bond payable in silver on our official
list, which, paying regular dividends,
is quoted at 43.45 per cent. Besides
the bond you have the railway to fall
back upon.
Taking this as guide we would say
the United States could borrow, in
silver, at about the same ratio, l. e.,
a 6 per cent United States bond might
be salable at soc on the dollar.
From our point of view we can not
understand how an intelligent people
can believe that a silver basis would
be beneficial to them. The difficulty
all the world over is not the want of
currency, but an excess of what is
required to carry on the trade of the
world. All the banks are Overlooking
with money, not that there is much
more in existence, but that none is
boarded, every man, woman and child
almost having bank accounts and
checks against money, which was for,
merly laying idle in stockings or
some other hiding place, and which
the banks now employ to earn money.
This state of affairs is daily increas-
ing, and we should not wonder even
if the clerks and laborers should keep
their savings in banks.
You can not legislate for panics, for
in such no currency would suffice,
whether gold, silver, copper or leath-
er.
The world is suffering from over.
production, too much silver, copper,
sugar, wheat, etc, etc, and not from
too little gold. In fact, if the product
of gold increases as it has of late we
shall even have too much gold.
The Almighty has given us too
plentifully and we are not satisfied.
The credit of the United States is
very low just now, the sale of bonds
being almost at a standstill, but what
would be the effect if investors took
fright and began to sell? 1t would
put your country back twenty-five
years in wealth. 1 -.
1t would be much better to use your
influence and educate the people to be
honest, as the hundreds of millions
your laborers have in the savings
banks would be divided by half if
silver were adopted. and they would
thus lose their lifelong savings.
You can have a boom any day you
come to your senses by declaring you
will pay back to Europe in the same
coin as you borrowed, |. e., in gold
and as the United States government
has paid and will pay its debt in gold
there can be no harm in declaring tc
the world that coin means gold
coin"
Nothing else stands in the way OF
millions of our money pouring into
your country to develop it and create
such a change that laborers would
not have time for politics or swell
the ranks of agitators and repudia.
tors. Yours faithfully,
HEINEMANN & co.