San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1896-07-29
FINANCIAL LETTER.
The Fallacy And Danger OF The Free
Silver Craze.

| excitement connected with the silver
| issue to be fought in the approaching
| elections. Unquestionably, the situa-
1 ton is, at the moment, regarded here
1 as serious. The Chicago convention
has produced a deep impression as to
| the earnestness of the south and west
in respect to free coinage. The count
\ ry has been taken by surprise also by
the revolutionary sentiment expressed
| in the platform. A sharp shock at
| the financial center is nothing more
| than might have been expected from
| such occurrences. In addition to
| serious question of finance, the situa-
| ton now includes some political prob
| lens new to our people, exciting in
| their nature, and calculated to pro-
| duce unexpected disturbances of con-
| fidence.
The first feeling suggested by such
| a concurrence of circumstances is one
| of distrust. Noneof these things had
been anticipated or prepared for; and
| as with all ill-omened surprises, the
| worst features and possibilities of the
| case are chiefly or alone considered,
1 and consequently there is a general
surrender to degree of alarm exceed
/ ing any real occasion. That is the
| stage of this political disturbance
| through which Wall street is now pas
| sing. The attendant unsettled feeling
| is intensified by the absence of definite
| knowledge as to how far the proceed
| ings of the Chicago convention re1e-
sent the real feeling and sentiments of
| the people of the west and south. The
| intensity of the declarations of the
\ platform strikes the people OF this sec
| ton as the first note of a revolutiona-
| ry pronunciamento; and thrown off
] their guard, the hasty and the timid
resort to defensive measures which on
| ly increase the public distrust. This
| however is not the worst form of arti-
| fetal aggravation of the situation.
There are professional spectators who
| do not hesitate to turn apprehension
| into danger and thereby precipitate a
| great fall in prices. Others are at
| lacking the position of the treasury by
| exchanging legal tenders for gold, for
| the purpose of increasing the public
| distrust.
| These are the kind of elements that
have been brought into play by reck-
| less spectators during the past week.
| The case was made more serious by an
| unexpected increase in the exports of
/ gold under which the treasury gold
l balance fell below ninety millions. That
| fact, together with increasing demon
| alization on the stock exchange,
| brought the banks to the rescue. On
| Monday. informal consultation among
| the managers brought about an agree
| ment to replenish the declining gold
! reserve of the treasury; and during the
| week SIS, 755,000 of gold coin was
| pledged for exchange to the sub
| treasury for legal tenders, to be paid
| in as needed. This courageous de-
| fensive action was an unmistakable
| expression of the confidence of the
banks in the situation and in the abili-
| ty of the government to maintain gold
| payments 1t is also evidence that
| the banks are satisfied that the out
\ come of the elections will be to estab-
1 lish the gold standard upon a perma-
| nent basis Some such action by men
best situated to judge of the situation
| was the one thing needed to help timid
| and pessimistic holders of investments
| to hold their own against their fears;
| and the course taken by the banks has
| materially contributed to the restora-
| ton of public confidence. 1t is much
| to be hoped that there will henceforth
| be a cessation of boarding gold. IL ls
| that most unworthy form of cupidity
! which seeks to enrich itself at the ex-
| pense of the country. At present.
| there is no danger of gold going TO
premium, except such as may arise
| from these very attempts at boarding;
| for the banks will certainly take care
| of the treasury. This is one or the SIT
| uations in which courage is saving,
while fear becomes danger. If there
| are any spectators deliberately bent
/ upon forcing gold to premium, they
| must count upon bucking against the
| banks of New York, Boston, Philadel-
| phia, Chicago. and other large cities;
| who know a good many ways in which
| such gambling against the nation
! credit may be made very unprohtable.
The true attitude Of the moment Is
| to wait for fuller information upon the
| factors that are to determine the ~
L oil 10 n
| field of politics. The young Goliath
| from the far west occupies such alarge
1 place in the public imagination that
| all the people of the timid sort are De-
| ginning to tremble for the cause OF
| sound money. The best thing that
| timorous class can do, both for them
| selves and the country, is to tie them
| selves up and keep their tongues still,
| until sufficient is known about the
| strength of the opposing forces TO
| form the basis of an intelligent judge
| ment on the outcome. The present
| estimates of the probable results OF
| the election are based largely upon
| political bluff, deliberately gotten up
1 by party managers. Upon the one es-
| sential duestion-how far the spirit and
| letter of the Chicago platform repre-,
| sent the majority of the west ana
| south, we have as yet no trustworthy
| information. Before we can credit
| the claims of the Bryante polillcians
| we must be prepared to abandon all
| we have ever known or believed as 70
| the loyalty and common sense OF TINS
| particular forty millions of our citl-
| zens. That is factor of which we
| know something; we have seen 1t SUD-
| ject to generations of test, and we nave
| reason for putting some commence IN
| II. But when set of sensational pol
| iticians come forward with pretentions
Il RI abandon
| have ever known about the people OF
| the west and south, it is simply con-
| trary to all principles Of sound Judge.
| ment to accept testimony SO full OF
| improbability. $4,000.
The enactment Of a free, indepen.