The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-06-02
LETTERS FROM THE PEOPLE.
AN EXPENSIVE GOLD RESERVE.


A GOOD THING FOR BANKERS, But HARD ON ALL
OTHERS.
To the Editor Of the San Francisco Call-srR:
1t is almost startling 10 Populist TO read in
orthodox old-party newspapers, which never
have evinced any sympathy whatever with the
Peoples party, such open and merclless ex-
posures OF the enormous expense and alb
surdity of boarding 100000, 600 in gold as
reserve for the redemption" OF greenbacks.
quoted in my last letter. Referring to recent
bond issues and the approaching sale of an
other 100000 600 of bonds to maintain this
gold res erye, 1t was said that "these bonds will
cost the people about $3.50, 600, 900 in the
form of interest to maintain $346, 000, 900 of
greenbacks, being $4 100000 more than the
greenbacks, q large part of which are now held
in the treasury, not in circulation, and in the
end the bondholders will receive nearly double
the amount of the green backs"-thatl 1855
600 900 in bonds and the $500, 600, 900 in in
terest or total of S713, 100000 paid to bond
holders to protect $346 600 600 in greenbacks,
which will themselves still remain unpaid or
'unredeemedl"
much more than $713, 600, 900 of the Nations
resources. Not only the gold for the final Ere
demption'' of the greenbacks must be acquired
by the Government, but also for the ultimate
payment of the per cent 40-year bonds (see
Coinage Laws of the United states, March 3,
1896, Government Printing-office, page 1860
sold in 1876 TO purchase the 500 000,O 600 gold
coin reserve Gust twenty years ago., together
with the interest on the same, which in forty
years amounts to S160,000,00O making a
total OF $3.50 100000 for the first sale of bonds
made TO establish tie gold reserve. Now, to
get at the true grand total of the cost of this
reserve we must add this $3.50, 900 to the
above $713,000,000, making it in TACT $685.
600 O00-almost 81 900 900, 600 in gold
1t must now be apparent even to the average
reader OF The CALL that this single scheme de-
vised by John Sherman. which is only a small
and almost insignificant part of his "best
financial system in the world" so much
praised by US before the advent of the Populists,
will inevitably cost the nation nearly 81
600 900 600 not one dollar of the actual
$9I3,O000 900 being even for one day neces-
sary Tor any such purpose. twould be strange
indeed ii Senator Butler or some other Popu-
list Senator did not introduce bill to prohibit
the PRESIDENT from issuing any more bonds
with which to replenish the gold reserve with
out the consent of Congress. But what are
these dreadful greenbacks which have already
cost almost three times their face value in
gold? Let one of the greatest men of recent
years answer this question.
James u. Blaine, in a speech at Skowhegan,
Me-, IN 1864, taking greenback from his
p0cket ana holding it up to his audience, said
what Is this? A dollar And it is good dol
iar-good Tor the farmer, the mechanic, the
merchant and everybody. What makes it a
good dollar? Because every dollars worth of
property in the United States is behind it and
the llfe's blood of every true and loyal citizen
is behind 1t. And that makes it good dol
i"i' ihus opOhe IUe statesman ana the
trlot, out his name was not John Sherman.
Blalne stood for his country and its honor
John sherman stands for the money lords and
thelr prohts-the one patriot, the other a
traitor: and yet once admired Sherman and
wanted to vote for him for President of the
Nation he had BETRAYED
Homer tells us IN the Odyssey of the old
mythwherein Atlas supports the world on his
shoulders An inquisitive Populst of that day
raised the impairment inquiry: "And what
supports Atlas?" "The earth,' he was an
swered Like a modern Populist he then
asked: but what supports the earthf" "The
turtle, was the reply-the earth being fiat, as
was then believed. "And what supports the
turtle?' queried the pestilent old Populist.
wv ny the mud" said the John Sherman of
the olden times. In our day John Sherman
says the National banks are all based on Sup
ported by Government bonds: But the in
qulsltlve Populist asks: "What is the basis or
support OF the bonds?" Our greatest fnan-
cler,' the fabricator of our "best financial sys-
tenn In the world" replies: "Tbe pledge and
good faith of the Government" But what
upholds the Government asks the trouble
some Populist. "The loyalty of the people
backed by the army and navy" says John
Sherman And what constitutes the army