Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1896-06-26
WORDS OF WARNING
Addressed to the People by Close Student
OF the Money Problem.

OF the Money Problem.
To the Editor Of the Register.
In view Of the free silver sentiment
expressed. at our recently he'd Con-
vention to elect delegates to Chicago. a
sentiment almost fa0atical, the men adj
vocating Z being as men cfaZed with
drink. permit a few words from one
who differs in opinion. At these as
semblages no argument prevailed ana
reason had no place. Men who at
other times and on other subjects are
most sensible and have the keeneSt per-
cepticn. saw but one side and would
listen to no reasons advanced lnimlcal
m their interests-the free and unlimlt-
cd coinage Of silver at the ratio OF 10
10 l.
To them and their representatives
before they commit themselves at the
Chicago Convention. I wish to say
word of warming. | ASK them to lcok
back and review the rayases the Sher-
man act of 1880 worked by compelling
the government TO purchase and coin
more silver than It had ever coined be-
fore. It required the government to
buy at the market rate 100000 ounces
of silver each month, or 54.000.OO0
ounces per year, to be coined into dol
lars.
II took but two years for this piece Of
legislation to Involve the United States
in one Of the greatest crisises OF the
century-a crisis arising purely from
the governmental causes stated above
There had been no prior period OF spec
ulation Instead the country was just
recovering from the panic Of 1890, and
business was contracting instead Of eX-
banding. There had been very little
stock speculation, the sO-called minus
trial stock being the only stocks bought
and sold.
This purchasing clause of the Sher-
man act and extravagant expenditures
Of Congress- along with the agitation
of the silver party, caused distrust, and
many American securities began to pour
i'm from Europe which had 10 be paid
for with gold. This further encour-
aged the expectation OF gold. which the
imitation of the currency had given rise
to. and reduced the gold reserve Of the
government until there was almost a
deficit in the treasury What was the
result? There was a number Of fail
ures of industrial establishments in
Nav of '93. followed by Others in June
These caused a fall in the price of Sc
curities and restriction of bank dis
counts. Producers could not borrow
money. no matter how good the secur-
tiles offered. The banks were buying
The good stocks thrown upon the mar
ket reduced in price by the distrust of
other ard less certain investment in
personal loans.
Coupled with this was the fall in the
price of silver. caused by the glut Of the
market and the scarcity Of gold. This
did not check but added to the panic,
and caused the closing Of many mines
I'm the west The failure Of~many banks
all over the country made the crisis
acute. This general disTuSt led 10 the
boarding. of currency, government
notes. etc. unit, the banks demanded a
premium Of from one and a half TO four
pei. cent The scarcity of money and
the failure of old and established bust
ness houses and manufacturing con-
Germs caused all stocks 10 drop. The
fall of stocks was unprecedented. good
stocks falling thirty-seven points in six
months.
Congress met in August. 1898, and re-
peaIed the silver purchasing clause Of
The sherman act of 1890. This caused
a revival Of trade, and the banks were
orce more upon a sound basis and bus
mess of all kinds frightened; but the
country had received such shock that
evidences Of it are still seen and felt in
business of all kinds to-day.
If these effects were caused by the
coinage o. a large but certain amount
Of silver by the government, what
would result if the coinage was free
and unlimited at the ratio CT Is TO l?
The silver of the world would be receiy-
able at the minis of the United States.
All the surplus silver Of other countries
would be poured in upon us and coined
into dollars at ratio Of 10 to l with
gold. no matter what the commercial
value OF the silver might be. The
free Silverites seem TO have forgotten
that the market price is an important
factor. IL is well known law of trade
that abundance of an article decreases
the price; that scarcity increases. This
abundance CT silver would undoubtedly
decrease the market value and we would
have a dollar in name only, but not in
value. No doubt whsze the gentlemen