The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-07-25
THE EFFECT OF FREE SILVER
COINAGE.

Some time ago certain citizens of
Thomasville, desiring information
upon the financial question, wrote to
! Judge Walter Clark, asking several
! questions in regard to the effect of free
coinage upon the price of products and
! the effect of the present situation
! upon debtors and taxpayers. His let
ter in reply is a clear and simple state
ment of the whole question and is
worthy of careful reading. 1t follows:
Raleigh, N. c., July IL, 1896.
Dear Sir:
The Superintendent of the United
States Mint reported officially in the
last statement sent in to Congress by
the Secretary of the Treasury, accom-
panying the Presidents message,
that the yield of gold throughout the
world for the year then ending was
S197 900, 900, and of silver $106,000 900,
so you see the yield of silver is not
keeping up with the yield of gold.
The total stock of gold and silver
throughout the world, by the best ess.
Inmates, is little less than 16 of silver
to one of gold. When silver was de
onetiZed, in 1878, it was 3 per cent.
above gold, and it was debated by the
syndicate which should be demonetiz-
ed. Their object was not preference
of gold over silver so much as to strike
down half the redemption money of
the world, and this doubled the value
of the National, State, and other bonds
the millionaires had invested in.
AS the principal use Of silver was
as money, 10 dcmonetize it would be
to sink its value as compared with
gold-and ii is absurd. after destroy
ing the principal use Of silver, to say
il has deprecated. 1t has only de
preciated when measured in gold,
W hich has appreciated. An ounce of
silver viii buy as much cotton, corn.
wheat, ect., as it ever did. The APP
parent fall in the value of cotton,
wheat, corn, silver, etc, is really only
the appreciation of gold which is
double it's former value BY being
made the sole redemption money
Gold will now buy double the former
amount OF produce. silver, etc. The
point is this(and which was the
object of the demonetizatiOn) gold
being double in value, if the Gov
eminent could be induced to pay its
bonds in gold, the holders of our
National debt would double their
property. The swindle is so simple
we are aStouuded at it's audacity.
'sSilver, as you see above, from the
report of the United States Super
intendent of Mint, is not now being
mined as much as gold, and as to past
accumulation of the metals, there is
less than 16 pounds of silver to one Of
gold. If both were on the same foot
ing, as prior 10 1878, the price of silver
would be, (as it was them. little
in favor of silver. as gold would cease
10 be a 200 cent dollar, as it has been
artificially made.
THE effect of the present situation
upon debtors and taxpayers is pre-
csely the same as if you had prom
ised TO pay 1000 bushels of wheat
and the creditor had induced the
legislature to pass a law making a
bushel of wheat 100 pounds, and he
claimed his 1000 bushels. We have
promised 10 pay our National and
individual creditors in dollars, and
Those creditors have procured legis-
lat;0n which makes a dollar 300 cents,
thus requiring double the cotton, corn,
wheat, etc, 10 pay our taxes and debts.
Yours truly,
WALTER CLARK.