The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-06-17
FREE COINAGE SOUND.

IL lOIL OO14N IA VI IL nv " NNs
Continues from FRS, Paxeo
lower the prices at which we export
our wheat and other poducts, the
gre. ter is the burden of our interest
charges and the greater is the real in
come OF the holders Of our securities,
who practically receive, owing to the
fall in prices, double the quantity of
products in payment OF interest
charges that they are entitled to re.
ceiye. Just as prices fall, the value
Of the debts they hold increases. pro.
vlded the solvency OF the debtor is not
impaired.
The gold monometalliStS tell US
that the free coinage Of silver would
contract our currency by one-third
through forcing gold and al credits
based on gold out of circulation, and
thus cauee prices to fall proportion
ately. II SO, then the fall in prices
would result in increasing the actual
income Of the foreign holders of
American securities, who would re-
ceive three bushels of wheat and
three pounds of cotton where they
now receive but two. II such was the
result Of free coinage, our foreign
creditors would receive, not a dollar
worth fifty cents Of the present dol.
lar, but dollar worth one hundred
and fifty cents. Yet we are told that
the prospect of this would cause for.
eign investors to unload their securi-
ties on our markets in a panic!
But the free coinage of silver could
not possibly result in q further fall in
the price Of the articles that we ex-
port in the payment OF our debts.
Grant for the moment that foreigners
would unload their securities on our
markets and take gold in payment.
The result would be that the money
markets in the financial centres would
tighten, importers would be unable
to secure customary bank accommo-
dation, prices of imported articles
would fall and importers would be
obliged to restrict their purchases
abroad and impOrtes would fall off.
But how would the price of the pro-
ducts we export in payment Of our
debts be affected? In the first place.
just as gold was exported from
America. leading to a contraction OF
eur currency, it would lead to pre-.
purtionate increase in the volume Of
money in Europe. and consequently
prices in Europe would tend to rise.
n the second place, as gold was ex-
ported and went to swell the curren
cies Of European gold standard cOun-
tries. g Id would fall, willis silver, in
resp nse to the prospective demand
minis to silver, would advance. Sill
yer would rise Immediately on the
electit n OF President and Congress
pledged to free coinage, and before
our minis were opened to silver, for
speculat tors would anticipate the ef-
lect Of the prospective increased de-
mand sure to result from the opening
of our minis, and they would buy up
and hold silver in anticipation OF the
rise. AS silver rose relatively to gold,
the cost to gold-using countries, buy
ing wheat and cotton and other pro-
ducts in silver-using peoples asked no
more silver for their products. it
would take more gold to get the same
quantity Of silver. Consequently. the
competition between our producers
and the producers Of silver countries
for the European markets would be
| relieved, and the demand for our
| wheat and cotton and other produce
would be thereby increased.
Thus the balance of trade would
turn In our favor and gold at first ex-
ported in payment foc securities sold
on our markets for the account Of
panic-strcken foreign inves tors, would
flow back again In payment for our
and other produce.
The election Of President pledged
to bring about the restoration OF sill
YER to its place as money might re-
suit in stock exchange speculative
panic, but the country at large would
not be injured thereby. If the for
eign holders of American securities,
blind to their own intereS is, chose to
sell on our markets, and to our inves-
tors, the securities they now hold
without regard to price, they would
be the losers, not our investors en-
abled to pick up valuable securities at
be injured by what would be in effect,
voluntary peeling down Of our for
egn indebtedness on the part of
British and German holders OF our Sc
curlties. The opening Of our minis
to free coinage would not impare the
value OF such securities. On the con-
trary it would result in making them
more valuable. The value OF all Sc
curities, whether railroad bonds or
stocks, farm mortgages or the evil
denceS OF Indebtedness issued by 9TH
er corporations and individuals, 10 de-
pendent upon the ability of the debtor
TO earn and pay the interest. And BIZ
metalllSm would bring renewed pros
perity and hence add to the value OF
securities in general. The greater
the profits of industry, the greater the
net earnings of railroads, the more Sc
cure, and hence the more valuable do
securities Of all kinds become. Hence,
il our foreign creditors, seized by un-
reasoning panic on the election Of
free coinage President, should sacri-
f1ce their holding of American securi-
ties they would be the sufferers from
their own panic.
man in Russia, aged % years, not any
different from other men, was, amid great
pOmp to Oyerawe the common herd of hu-
mainly, crowned emperor by that class of
men there like unto the class of men in the
Un.ted States who attend the Inauguration
OF president-our constitutional emperor
for the loaves and fishes, the legal steal
iEgs of the peoples property. In order to
more greatly impress the common herd
from whom all his possessions are ROBBED,
this man, this adventurer calling himself a
car, made great feast at which he pro-
posed to give back to the people one meal
from the great storehouse robbed from
them. The people were so nearly famished
that they could not wait for the time set
for the meal and crowded into the place
preparing the food and caused a panic at
which three thousand people were trampled
to death. See what fools they were? They