The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1896-08-13

suicidal to invite the disaster sure to
follow. One does not need statistics
TO perceive the unwisdom of changing
our entire financial system and throw
ing it ont of joint with that Of the
progressive nations of the world.
People who argue that after the
readjustment, matters will return to
normal conditions and run on smooth
| ", take only a superficial view of the
matter. The United States can never
conduct its business on a silver basis
with all TIE commercial nations of the
| world on a gold basis, so that we will
simply gain experience through dis
| aster, depression and Reputation to
return to our present basis by q second
REIMBURSEMENT with depression and dis
aster accompanying it. 1t is folly to
| suppose we can drive European ma
tiOns to the double standard The
whole world could not drive England
to the double standard during almost
a century Of effort ard now we are
foolish enough to believe we can.
single handed, do not only what all
nations failed to do, coerce England.
but coerce her when backed by all
other European nations. This talk of
1116 IS fustlan, demagOgic and puerlle.
Let the merchant cody look over
the situation. With free coinage of
silver the silver dollar will only have
bullion value Facts disprove all
other assertions to the contrary.
Mexico has free coinage of silver and
| its dollars have bullion value only
There IS fact IN opposition to theory.
Every outstanding account the mer
chant has will be paid on the new
basis, or at 81 per cent of It's face
What IS true of the merchant is true
of every person who has accounts or
money due him. 1t is true of the
laborer, who has wages due him 1t
Is true Of the person who has deposits
IN banks. 1t is rue of the members of
building and loan associations. 1T is
true of the person who has a life in
surance policy for the benefit of his
family. 1t is a scaling down Of all
these credits just about one-half In
tellIgent self-interest should not per
NIT any such action, and when self
interest is not at stake. honesty should
repudiate the act.
The losses resulting from these
causes would startle people if they
could be fully ascertained.
Who is to be benefited by this
sweeping act of reputation? The
professional man who is in debt will
find it Just as difficult to get the free
coinage silver dollar as he does the
present standard dollar. The lawyer
cannot double his fees; the physician
can not double his charge for yisi
latiOn; the school teacher will not have
his salary doubled; the laborer will
not have his wages materially in
creased. Everything which has a
price that custom has to a certain eX-
tent fixed will remain as it is. 1t will
be no easier for these classes to pay
debts than it is now. Those who pro
duce articles which fluctuate in value
may derive some benefit but only if
they are IN debt. A debased currency
Will apparently enhance the value of
commodities the price of which varies
by conditions Of trade. But if the
price Of wheat advances so will the
price OF coffee, of sugar of clothing of
all the necessaries of life, so that
nothing is gained. Indeed there is a
loss to the farmer as the price of farm
produce depends upon the surplus
and that is disposed of in foreign
markets on gold basis If he owned
silver bullion instead of farm pro
ducts he would be largely benefited.
No one will deny that the person
who has money due him will suffer
great loss by free coinage. 1t is evi
dent the professional man and the
laborer will not find it any easier to
pay their debts while the cost of living
Will be greatly increased. The farmer
may get more for his produce in
dollars, but really less in the pur-
chasing power Of what he receives.
10 the extent of what he is in debt he
IS benefited, if the debt natures while
silver IS coined free. But he will have
to contend with supply and demand
as he does now.
| Who is benefited by the great
wrong? The silver mine owner: the
gold mine owner. The former because
to the extent to which debts will be
paid, receives double what his product
Is worth. 1t is declaring by law, that
IN payment of debts the value of his
goods shall be doubled. The gold
mine owners will be benefited because
the withdrawal of gold will put that
metal at premium beyond the COM
merclal ratio in the settlement of
foreign balances. Besides in the panic
likely to result the possessor of gold
can improve the opportunity which a
panic Away offers to make money.
1t IS more than possible that even
the deceptive prosperity which is pre-
dcted IN case silver is coined free. will
not put IN an appearance and that the
pane which Is inevitable, will be
usheled in by depression far beyond
our present experience. We have
| now IN round numbers 100000 600
IN gold. That will instantly go out
OF circulation. The experience Of the
past proves that and finds expression
In Gresham's law which is as unfailing
IN financial matters as Newton's is in
gravltatlOn. This will leave us with
our present silver and paper circu-
Iatlon. a contraction equal to the
amount OF gold now used. The annual
capacity OF the mInts is S40,OOOOOO
per year, so that the deficit could not
be made mp in less than - years with
out increasing the number of minis.
In anticipation of trouble, gold is
practically out of circulation now.
The annual production of silver in
the world is S2l6,000,000 so that if
oil the silver mined in the world was
sent Us and we had the capacity for
mlntlng it, three years would be re
CURED to make good the contraction
caused by the withdrawal of gold.