The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1896-08-08
WERE THEY PROPHETS?

| There are perhaps no hlgher fecog-
nized authorities on finance in the
United States than John Sherman and
John G. Carlisle, especially when rated
from gold standard point of view.
They have both served long years in
| congress and each has been secretary
of the United States treasury. Each
has devoted much time to the study OF
finance, and whatever either Of them
says al this time on the question of
money Is received almost with scrip
tural sanctity by the advocates OF the
gold standard. Hence what they said
in the past ought to receive some
| degree OF consideration 'notwithstand-
| ing their minds have undergone some
| sort of an evolution, and their views
have somewhat changed in the past
| twenty years. Nevertheless their past
utterances had the tinge of prophecy
and what they foretold years ago has
really come to pass. In speech de-
livered in the senate on July II. 1873,
Mr.. Sherman said:
'EThe enormous effect of the law In
Germany, and as consequence the
partial characterization of silver coins,
suppose is felt by every man, woman
and child who buys or sells anything.
A struggle for the possession OF gold
at once arose between the great
nations, because anybody could see
that if S3,200,000,0O0 of silver coins
were demonetized, and $4,000, ,00O,0 900
OF gold coin made the sole standard, it
would enormously add to to the value
of gold, and the Bank Of France, the
Bank of England, and the Imperial
Bank of Germany at once commenced
grasping for gold in whatever form.
Therefore, what we have recently
observed is not so much fall of silver
as it is rise of gold, the inevitable
effect of fear of the demonstration
of silver"
Two years later, John G. Carlisle,
then congressman from Kentucky, |
addressing the house on the question
of the characterization of silver, said:
"According to my view of the SUBJ
ject, the conspiracy which seems to
have been formed here and in Europe
to destroy by legislation from three
sevenths to one-half of the metallic |
money of the world, is the most gigan.
tic crime of this or any other age.
"The consummation of such scheme |
would ultimately entail more misery |
upon the human race than all the wars,
pestilences and famine that ever
occurred in the history Of the world
The absolute and instantaneous de-
struction of half the entire movable |
property of the world. including
houses, ships, railroads, and all other
appliances for carrying on commerce,
while it would be felt more sensibly at
the moment, would not produce any
thing like the prolonged distress and
disorganization of society that must
inevitably result from the perma pent
of one-half the metallic
money in the world"
Only few years prior to these utter
ances the United States had closed her
mints to silver and France had ceased
to use 1t as primary money. The
effects were already being felt in all
parts of the world. The leading
nations were scrambling for the pos
session Of gold, and on account of the
increased demand for that metal It's
purchasing power gradually increased,
or in other words, the price of the pro-
ducts of labor, when measured by gold,
fell. This fall was so gradual that it
was scarcely noticed from year to year,
but when covering period of, years it
was most perceptible. A comparison
of the price which the two great
staples, wheat and cotton, commanded
in 1875 and in 1894 show the prophesies
of Sherman and Carlisle, that the price
of gold would increase, were true.
The price of upland cotton for EXPORT
In ,ss5 ,sI55 Was fa-eents, in 1894 it was 7.s
cents. Wheat for export in 1876 COM
manded Sl.12 per bushel, In 1894, 81
cents. A like decline in the price of
nearly every other product of unskilled
abor resulted during that time. And
What was the cause? Sherman and
Carlisle, both able statesmen and .
1nanciers, one republican the other
3 democrat, said twenty years ago that {
It was the natural result of the de-
of silver, and what they
aid then would follow seems to have I
ome true. {