The herald., 1896-10-26


logically 1t should be-. by the price of
commodities in general, but only when
measured by the price In gold.
Second-The demonstration Of silver
by Germany and the Scandinavian
states about that time threw an enor-
nous quantity of silver coins. amount
ing to many hundred millions upon the
market, to be realized on at whatever
they would bring. About the same time
these countries bought hundreds OF mil
lions of gold to replace the silver de-
monetized. About the same time the
United States had been and were still
buying enormous quantities Of gold for
the purposes of resumption OF specie
payments on the gold standard.
Third-These countries had heretofore
been large consumers and buyers OF sii-
yer and this demand suddenly ceased.
Fourth-Wars, famine and failures OF
crops in the silver using countries inter-
fered with the usually large demand py
these.
Summary-Hundreds Of millions OF
silver suddenly thrown on the marker;
hundreds of millions OF gold suduenly
demanded; a former demand for ABOUT
fifty millions of silver per annum SUD,
denly abolished; another great demano
temporarily interfered with. How could
the twenty-four to fifty-four millions
annual purchase by the United STATES
counteract all this? That silver did not
fall to 20 cents an ounce is evidence OF It's
great natural strength, it's hold upon
humanity as money metal, ana tnls
strength is based on these three facts:
First, that 1t is by far the oldefof the
two metals; second, that IT is the money
of the masses, while gold is the money
of the few wealthy; third, that the IN.
fluence of the masses, as compared with
that of the few wealthy Is on the IN
crease.
O.-Is not silver on a legal equality
with gold in the United States?
A.-No; silver is legal tender, out
there is free coinage for gold only. and
not for silver, and I have shown IN my
former letter that free coinage Will in
crease the demand for free silver and d.
minish the demand for gold. causing the
bullion values of the two metals TO
approach each other on the legal ratio
of 16 to /.
Q.-Seeing that the agitation for free
coinage has caused widespread
distrust on the part of capitalists and
great depression in business, is 1t not
probable that the fact of free coinage
will be far more disastrous in effect?
A.--.No; it is not probable. as VIII
clearly appear from an analysis or the
causes of the present depression and
their natural action hereafter.
First-Financiers, spectators. brok-
ers and capitalists as a class are the
most gullible of any in the community
The most absurd rumors relating to
stocks, bonds and so-called securities
jubilee among them, followed by the
most astounding fluctuations in quota
tions and values. Practical jokers have
occasionally taken advantage of this
weakness, with some ludicrous and
some tragic results.
Second-These classes are Influenced
by prejudices bordering on supersti-
tion and rarely are serious, conscien-
tious and thorough enough to acquire
knowledge Of a difficult and complex
matter by close, persistent study, such
as is absolutely necessary for q clear
idea Of the present financial problem
and its social and moral bearings.
Third-The wiser Of the gold standard
advocates have for many years careful
ly worked so as to familiarize an I'M
thinking public with certain mislead-
ing catch phrases, such as Sound mon
ey," "depreciated currency" and false
doctrines, possessing superficial plaus-
ibility, in favor of the gold standard,
and these are now so deep-rooted in the
minds of certain classes that they can
only be removed by close scientific study
of the question, which. with such peo-
pie, seems out of the question.
Fourth-These classes are interested
in maintaining and exploiting the gold
standard. and therefore they have pur-
posely fostered distrust and created
stringency, to frighten people and in
fuence the election. When free coin
age becomes fact, distrust and strin-
gency can no longer be Of any benefit
to them, but will then be direct inju-
ry and they will exert themselves to
restore confidence and relieve strin-
gency. Besides, experience has proved
that anticipated effects are always
heavily discounted in the financial and
commercial world, and the after results
but rarely equal the effects Of the an
ticipation.