Marietta daily leader. (Marietta, Ohio) 1895-1906, 1896-06-01

disproportioned to that earned by the
average enterprise. Yet the advocates
of free coinage of silver at local ratio
of sixteen to one, although the COM
mercial ratio is thirty-one to one.
We are therefore confronted with a
proposition to change the meaning of
the dollar from 23.22 grains of gold to
371A grains of silver. AS 371A grains
of silver are worth only about 13 grains
of gold, it is practically proposition,
at single blow, to reduce the value of
a dollar one-half.
1t is movement more radical than
one to reduce openly the bullion in a
gold dollar to 13 grains. This would be
step dangerous, but definite. No one
knows what 371A grains of silver would
be worth under free and unlimited coin
age. 1t is impossible to say whether the
7 increased demand for silver would carry
371A grains of silver somewhat above
13 grains of gold, or whether this inl
creased demand would shortly produce
a disproportiohed increased supply and
carry the value Of 371A grains of sill
yer somewhat below 13 grains of gold.
= I am aware that the advocates of free
coinage of silver object to estimating
the value of silver in gold, but all in
ternational trade is measured by grains
of gold. No matter what system we
| adopt, unless our international COM
merce is abandoned, our dollars will be
actually measured by gold, even though
J we fix them upon silver standard.
The movement for the free and un-
, limited coinage of silver is therefore
| an effort not only to reduce the value of
! q dollar about one-half, but to leave it
in state of uncertainty. 1t threatens
I q complete change in the meaning of
the term dollar to some meaning in the
neighborhood of one-half it's present
! meaning. 1t threatens an entire change
of the value of the term by which con-
/ tracts and credits are estimated and by
which business is conducted.
! In every country where progress and
prosperity are found the great bulk of
/ business must depend upon credits. The
credits are estimated in dollars, and
whatever creates doubt as to the mean
ing of dollar must tend to suppress
certainty, and this uncertainty must be
removed to bring back to business nor
NAL prosperity.
| To appreciate the Importance of re-
moving doubt upon this subject, con-
template briefly the process of reaching
the proposed silver standard. We saw
! in 1898 paralysis of business, in large
part produced by the threat of silver
standard.
presidentand congress were elect
, ed in November committed to the free
and unlimited coinage of 371A grains
of silver into dollars, nearly six months
would pass before they could be in
augurated and six months more before
the proposed legislation could become
, .law. During that time creditors would
seek to protect themselves against be-
ing paid in dollars worth only about
| 13 grains of gold, and they would en-
, deavor to make collections before the
: unlimited coinage of deprecated dollars
began. The debtors would not be al
lowed to remain debtors until they could
get the advantage of paying off what
they owed at 80 cents on the dollar;
they would be forced to immediate
settlements. Sheriffs and constables
would call upon them without delay.
Depositors in banks would withdraw
their money. The large merchants,
forced to settle their foreign indebted
ness, would insist upon immediate pay
| ments of debts due from smaller mer-
/ chants. The smaller merchants in turn
would be compelled to force collections
| from their customers. The great vol
ume of business conducted upon credits
| would cease.
Manufacturing enterprises could not
| afford to continue business or make
contracts until the value of the new
dollar could be settled by the determi-
nation of just what 371A grains of sill
yer would prove to be worth. Manufac-
tories would close. Business houses
would fail. Banks would be raided.
The unemployed would be numbered by
millions. The farmers would find few
purchasers for their products. Want
and famine would pervade the land.
At the end of a few years, when busi-
ness settled down to the new mean
ing of dollar, fluctuations in the COM
meHcial price of silver would still keep
our dollars of uncertain value and hinder
domestic trade.
Business interests, reaching from the
richest banker to the poorest paid labor
er, require the removal of all doubt
about the meaning of a dollar. No man
should be trusted even with an impor-
tant nomination who does not recognize
that the value of dollar is now meas
ured by 23.22 grains of gold, and who
is not willing to openly declare his pur-
pose to help keep it there.
The Cheap Money wiL-o'-the- wisp.
fuaafNsk1l y,n,g, NJ m,., ;grVsuro