The Dakota chief. (Gann Valley, Buffalo County, S.D.) 18??-1913, 1896-09-24
EX-SECRETARY
SCHURZ.
SHOWS CLEARLY THAT FREE SILVER
WOULD MEAN RUIN TO INDUSTRY.


Threat 60 Pint the United States on the
Silver Tasis Would Cause Business Stag
nation-Mr. Bryan's Scheme TO Throw
the Country Into Fits SO nat He Can
Try His Sixteen TO One Quack Medicine
EVIL Effects OF the Free Coinage Agits-
ton Already Manifest.
Hon. Carl Schurz, ex-secretary Of the
interior, addressed an immense audience
In Central Music hail. Chicago, on
Sept. 8. Speaking Of O possible free El-
yer victory he said:
Consider what the immediate conse-
Quences would be IL Mr.. Bryan were
elected president, with a congress to
match. Mr.. Bryan would Of curse be
anxious to have his free coinage law
enacted, but that could not be. ever II
he called an extra session Of congress,
until some time in April or May, five or
six months after the day Of election.
But as soon Us on the 4th Of November
the result of the election was announced
6NC4y OO0y WOulu hAON lu0U liz pdIlty
of gold and silver would not be main
tanned.
1t having been made certain by Mr..
Bryan's election that the parity Of gold
and silver would not be maintained,
there would be q rush upon the treas
ury for the gold in it by persons hold
ing greenbacks entitled TO redemption,
and the gold reserve would be exhaust.
ed in q twinkling. Gold will instantly
disappear from circulation. to be hoard.
ed or exported. Why will it disappearl
Because every sensible person when
making q payment will prefer to make
1t in the less valuable dollar and hold
the more valuable gold dollar back for
more profitable use. Gold will there.
fore quickly rise to q premium, and We
shall be on the silver basis long before
q free coinage law can be enacted. Our
daily transactions in buying and SELL
ing, in paying and receiving wages
will no longer be carried on upon the
basis Of the gold dollar worth 100 cents.
but Of the silver dollar worth 80 cents
or thereabout, for the government will
no longer hold up the silver dollar to
the value Of the gold dollar.
The quantity Of gold vanishing from
circulation will amount to about $780,.
600, 900. the disappearance Of which
will make O tremendous hole in the
volume Of our currency. But. says the
silver man. there will be free silver
coinage to fill the gap promptly with
coined silver or silver certificates. Oh,
no. my fellow sufferers. The disappear.
ance Of gold will happen promptly after
the election Of Mr.. Bryan. and there
will not possibly be any free coinage Of
silver for at least six months, and it
will require a great many more months
to fill a gap Of 5000. 900. 600.
What will happen meanwhile! The
St Louis Globe Democrat reports Mr..
Bryan to have said some time ago: II
think it-meaning the victory Of the
free coinage movement-will cause q
panic. But the country is in q deplor.
able condition, and it will take extreme
measures to restore 1t to a condition Of
prosperity" Whereupon the st. Louis
paper pointedly remarks, Evidently
Mr.. Bryan has heard Of the doctor who
always threw his patient into fits before
administering any curative medicine
Just So
How. then. would Mr.. Bryan's LIT"
work. The sudden disappearance Of our
gold from circulation would produce
the most stringent contraction Of the
currency OF record. Business men who
owe money and at the same time have
money due them will be forced to col.
lect that money BY every means at their
disposal. Nobody will be inclined to
lend out any money except upon extraor-
binary security. The banks will nat.
urally consider it their duty to keep
themselves strong, and therefore to call
in loans and to restrict their discounts
and advances to business men with tho
utmost caution. Business establish.
ments, manufactures. mercantile
houses, unable to get the money for meet.
ing their obligations, will by the hun
dreds succumb to their endorsements
and tumble down like q row Of bricks.
Others will cautiously restrict their op-
e1at1ous W INC uarfOWeSt possible llmIt,
and wage earners by the thousands will
lose their employment and be turned
into the street.
How can I foretell these things with
so much assurance? Because they have
already cast their shadows before. Do
you remember the crisis Of 1898, when
the silver basis was in sight? And
now again the mere apprehension Of
a possibility Of Mr.. Bryan's election
and Of the consequent slipping Of our
country upon the silver basis has al
ready caused untold millions Of our
securities to be thrown upon the
market in Europe as we'll as here.
Scores Of business orders are already
recalled. a large number Of manufac-