, 1896-09-12

dollar is money Of ultimate redemption
and hence not redeemable in gold.
True, but what is there to prevent ex-
banging the silver dollar for redeem
able currency and then redeeming that
in gold? And is not that virtually the
same thing as redemption of silvero
Every silver dollar was a certificate of
Indebtedness to the amount of 40 cents.
Put into common English. the silver
dollar meant this: Liabilities 100
cents. assets. 81 cents, shortage, 40
cents. The government had been !ssu-
ing such certificates ct Indebtedness at
the rate of 4,5O0, 900 each and every
month for nearly three years, and no
one knew when it would stop. 1t was
simply a question Of how long the gov
eminent credit could stand the increas-
ing strain. Besides this, every dollar
of government Indebtedness, in bonds
or paper money which was legally re-
deemable in COIN" could be legally
paid in a silver dollar. and hence it also
stood. liabilities 100 cents, available
assets 81 cents. Every dollar that had
been invested in the United States had
beer paid on a gold basis, but the pos
sibilities were that it would be returned
in n silver dollar worth 81 cents. Hence
States meant this: Invested, 100 cents:
collectable on investment, 81 cents; loss,
10 cents. AS long as the government
credit held good. there was no danger.
though there was uneasiness. But when
the silver men threatened to substitute
for the Sherman act, which was bad,
free coinage of silver, which was worse,
and which meant the possibility of a 80
cent dollar, the investors began to take
alarm, and tried to save themselves
while it was yet time. They disposed of
ed as many of their debts as possible,
and the money, which was gold and just
what we had received. went out OF the
country. Is it a wonder that on ac-
count of the forced disposal of securi-
ties and collection of debts, all banks
and moneyed institutions were In a
temporary difficulty, which might at
IN moment become a permanent and
total collapse? This was the cause OF
the panic. The panic was not due to
the prosperity of the country during
A., % rc pf ranuhljpon nn1ipv nrp-
ceding, but to the financial blunder OF
1890. 1t was not an evidence that the
business of the country was in an un-
sound condition, but it was simply an
evidence that there was danger ahead
from the democratic party. The large
number of temporary failures n clos
ures showed that the business interests
of the country had vast assets as well
as liabilities, but the demand for pay
ment of the liabilities came all at once,
while it was impossible to realize
quickly on the assets. Take a merchant
who is prosperous right here in our
town. He has both credits and debts
on his books. The more prosperous he
Is, the larger the debts he owes and the
sums owed him. Now let us suppose
that all his creditors come the same
day and demand payment. He can only
realize his assets slowly and one at a
time from his different debtors. AL
though he may be solvenpt or nearly so.
how long will it take before he has to
close up his business temporarily? Not
very many hours. This uncertainty
about getting back what had been in
vested, and the consequent rush to save
all that might be saved. was the cause
of the panic of 1893. Mr.. Ingersoll may
not know 1t. but such the the facts OF the
case. AS O as the Sherman act was
repealed, and the free coinage men side
tracked. the panic passed away imme-
diately. Why? Because there was no
more danger for the time being.
The Sherman act was but a step In
the direction of free coinage Of silver.
so Bryan said, in making the fight in
congress in 1893. This step in the direc-
ton of free coinage was the cause Of the
panic, from which SO many suffered.
And as If the American people had not
had enough experience with the expert
ments of the silver men and the free
traders, the democrats have the audac-
ity to ask for permission to try an
other experiment on the long-suffering
people. Free silver means another
panic like the one Of 1893. for the very
same reasons which caused the one OF
1898. but the difference will be that the
panic Of 1893 was caused by uncertain
ty, while the one Of 1867 will be aus
ed by certainty of loss. and consequent
ly will be so much the more severe and
will mean. not temporary closing up of
business. but the final collapse Of bust
ness in this country. After the collapse
things will start up again slowly, but
on what basis? Not on the basis Of the
civilized countries, but on the style of
Mexico. China, Bolivia and Peru. Pleas
ant prospect, isn't 1t?
Mr.. Ingersoll also says that the panic
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