The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-09-03
SOME PLAIN TALK
ON FREE COINAGE
George D. Boulton's Famous Letter 10
Charles Morgan.
A FEW FACTS WORTH THE READING

History OF the Use Of Gold and Silver.
Results That Would Folio " the Dc.
parture from Our Present Financial
Systcm..ln No Silver Country Is
General Labor Well Paid.
The following letter bearing upon the
subject Of free coinage. which appeared
in the Chicago Times-Herald some time
ago. gives a clear view of the financial
situation which should be studied by all
who are in doubt as to the standard that
would be most beneficial to our nation:
Chicago, July 10. 1896.
Charles Morgan, Berrie, North Dakota:
MY Dear Morgan:-Your brother
showed me letter a few days ago in
which you asked for some reading mat
ter on the gold question. AS 1 feel
strongly on the subject, ! may as we'll
give you the benefit of my crude ideas,
not having any printed matter on hand.
There are good many leading points
on this question which l think can be
briefly expressed and which appeal
strongly to my side of the argument.
"One Of the most urgent motives of
the silver party is that they want cheap
money. BY that l suppose they mean
they can borrow cheaply or earn cheap
ly. Now, the cheapest money in the
world Is in the strongest gold country
viz, England. The dearest money in
the world Is in the silver countries. For
example, money in London today is .
per cent. per annum, while money In
Mexico. China, Spain, India, and in fact
in all silver countries of the world, COM
mands a loaning value of from IL per
cent. upwards. In the other gold coun-
tries of Europe, while money is not so
low as in England, the rate varies from
3 to per cent. to the borrower.
II may cite, as a good example of the
two currencies, two states adjoining one
another in South America-one British
Guiana. n gold country. with money at
4 to 6 per cent. per annum; the otner
Venezuela, with like soil and climate
conditions, a silver country, where in
terest rules at 10 to II per cent. per an
mum.
CIRCULATION WOULD BE IN
CREASED.
SHOULD We depart from gold basis
Europe would undoubtedly send in all
the currency securities-that is, securi-
ties that may be paid in anything but
gold-to us, requiring an export Of
either gold or it's equivalent in trade.
If it takes gold it takes that much Of
our money circulation. If it takes mer-
chandise it takes that at a largely re-
duced value. The consequence would
be that shrinkage in money circulation
int, 10 ,,-hiln
we could not put out silver or certiti-
Gates sufficient to take their places for
many months or years. so that during
the next three or four years, instead
Of the circulation increasing, as silver
ties hope, it would materially decrease.
After q lapse of time, no doubt, by put
ting their printing presses and mints
to work. they could largely initiate our
currency with new issues.
Currency depletion means low pric-
es for labor and everything else. Cur
rency at a fair rate per capita means
prosperity. Currency imitation means
danger again.
Going back into history we find Eu-
rope using largely silver and gold to-
gethcr. With the expansion OF trade
one country after another found by
sad experience their inability to keep
the two values on parity. England
was the first to depart from this GUS
tom, then Germany. then France, Hol-
land, Belgium. Italy, Australia, and,
last of all, Chill. 1t was from no pre-
judice on their part, but from the re-
quirements of trade that this course
was taken.
I'VE can only have one standard. be
1t gold, silver or anything else, and
the experience of the world has been
that gold was the best. Again. where
the country is most sound on it's cur
rency question you will find the high
est civilization. Where money is de-
based, or is other than the recognized
standard of the world, civilization is
on much lower plane. We can find
at the present time no silver country
in the world, l think I might say with
out exception, that is in prosperous
condition, whose government securities
command respect and full prices in the
markets of the world.
ITO this statement our friends from
the West will probably take exception,
and cite as an example of silver
country being prosperous and in good
condition the case Of Mexico; but they
will find it difficult to support their as
sertions. The writer had occasion last
month to buy in the City Of Mexico $780,
OOO of bonds issued by the Mexican
government. These bonds were bought
at the rate Of forty-eight cents on the
dollar In silver. the net cost to the pur-
chaser being $24,170 in Mexican silver
AS the money to pay for these bonds
came from this country. the amount of
American funds used in the purchase
of $5OOOO Mexican government securi-
ties was $13,0l2.1l. or about twenty-six
cents on the dollar. Now it seems i'm
possible for any country to be in a
sound and prosperous condition whose
securities are so heavily discounted as
in the above case.
FROM THE INTELLECTUAL VIEW.
Looking at he matter from an intel
lectual standpoint, we find arrayed on
the gold side the high intelligence of
England; France, Germany, Italy, Hol-
land, Belgium, Norway, Sweden and
Canada. On the other side we find an
inferior grade Of intelligence. and alb
sence of public schools, and q lower
plane of morality, as in Spain, Portugal,
South American States, Mexico, China,
etc On which side shall we array our
selves?
of course you understand it is not
the intention Of the party in power, or
the gold party, to disturbe the present
silver circulation of the country, which
is now $500,OOO0O0. There Is no desire
to demonetize that.
"On the other hand the whole conten-
tion is that all of our circulation shall
be kept on parity with the gold stand
ard, and that this s50O,OOO.OOO. instead of
being reduced i'm value. will remain
equal with gold anywhere.