The evening bulletin. [volume] (Maysville, Ky.) 1887-1905, 1896-10-24
To Be Honest It Must Be Constant
in Value.
The SOundness of the Present System q
Miserable Sham An Interest
ing Talk.

lar, IdIStu ny Iut utpuDllCuuS anu
boltocrats in the present campaign ? was
question put to Mr.. L. w. Galbraith,
ex-Superintendent of Public Schools.
"Well, just this" replied Mr.. Gal
braith, chose who advocate and support
our present monetary system, under an
impression that they are favoring sound
money and an honest dollar, have either
been misled as to the facts, or have mis-
applied them.
"Money to be honest" he continued,
"must be constant in its value or pur-
chasing power, to be sound it must be
stable and free from all speculative in
tluences. No monetary system which
the government is not able to maintain
can be called sound. Measured by these
tests, the money of this country, under
the present gold standard, is neither
sound or honest. That it has appreciated
in value and purchasing power and is
therefore dishonest is abundantly shown
by the market quotations of the world
since 1879; and for that reason l will
not stop to argue that question, but will
proceed to show that its claim of sound
ness is only miserable sham.
Upon the resumption of specie pay
ment, January l, 1879, we had outstand-
ing $346,6Sl, 0l6 in legal tender notes.
To maintain this at par a reserve OF $780,
100000 in gold was provided, which
proved to be sufficient. But this reserve
was further loaded with the Treasury
notes issued under the act of July IA.
1890, of which Sal ,O92,2SO were out
standing November l, 1895, making in
all $4S7,773, 296. Now read what the
Director of the Mint says in his report in
1895, page 1874:
| 1t is plain that slOOOOO,OO is not sufficient
sum in gold to insure the convertabiity at all
| times of notes amounting TO SlS7,777 ,296 and
maintain them at par with gold But that heavy
| task is not the only one imposed upon our gold
reserve of Sl00,000000 As under the law of Feb
ruary IL, 1878, July Ii, $780, and March 8, 1891,
Si23 9,309 in full legal tender silver have been
coined, against which 1888 456 236 in certificates
were outstanding on November /, 1895, and as
the act of July H. 1890, has declared ii to be the
| established policy of the United States to main
| tain the two metals on parity with each other
upon the present legal ratio or upon such ratio
| as may be provided by law, we have a total SUI
perstructure OF 1921 ,22953l resting on the frail
basis of gold reserve of Sl000O00oO. No
worse commentary can be made on the eXpen-
sive nature of our monetary system than that to
keep in repair this fragile foundation of $780,
0OO,C0O which is ever tending to disappear il has
been necessary within the past two years to
borrow gold to the amount of Sl62000,000, and
this without adding to its frmness. Yet resort to
the issue OF bonds for this purpose or repudia.
| ton, silver basis for our circulating medium,
depreciation OF the currency, and an impair
ment of all contracts, with all the evils attendant
on silver monometalism were under existing
legal condition, the only alternative left to the
| Government
"Since this report" continued Mr..
Galbraith, was made, in additional $780,
100000 in bonds have been sold for gold
to keep up this reserve, and still without
lding to its firmness. Yet the Govern
ment was compelled to do this or suspend
specie payment and that meant the de-
probation of all OF our "greenbacks, a."
Treasury notes and silver certificates and
silver; about $l,000,000,000 with every
other dollar in the country driven out OF
circulation. 1t also meant silver mono
metallism, based on the bullion value OF
silver, as it is now debased to a mere
commodity, subject to all the fluctuations
of speculation. Yea, more, the impair
ment OF all contracts, National dishonor
and wholesale bankruptcy. This is a
dark picture, but it is true to what would
follow the suspension of specie payment,
II peril that is still impending
"Four times has the currency been cor
nered and depleted of its reserve, and the
bonds of the government forced on the
market. The President and Secretary OF
the Treasury placed $62, 400 of these
bonds by private contract with the Roth
childs syndicate at a price $S,000,000 less
than their Ual,te in the market and as an
explanation of this transaction the Amer
lean people were told that this syndicate
had agreed to protect our gold reserve for
sic months. If it could protect, could it
not despoag And did it not when the six
months had expired force a still larger
sale OF bonds ? DaCe are thus at the mercy
Of SyadicGteS, if they can Ojh this endless
chain, our credit money, take array our gold
reserve, WHAT is TO PREVENT THEIR FORCING
THE SUSPENSION OF SPECIE PAYMENT? You
say popular loan. Suppose the gold in
this country cornered, you could have no
such thing as popular loan. This is
not an unreasonable supposition, when