The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1896-07-29

first. that Mexico is couspicuously pros
porous at bome Her increase ir
manufacture, railway earnings aud the
like in recent years is phenomenal
Seeood, Mexico is not q criterion for the
Uoited States, for the reasot that she
has foreign trade Indebtedness oi
about $40 000.0 900 annually in excess
Of the value Of her exports OF cotton,
sugar. coffee, hides, and the | he. which
must be paid for in the produ' of her
mines. Her silver. therefore. goe:
abroad as merchandise and at vaua
ton fixed by the outside world. The
United States on the other hand is q
nation cf seventy millions of people,
scattered on over territory II TIM !
the area "t France A siugle one OF
our railway systems. the Erie, exceeds
the aggregate railway mileage Of all
Mexico. We otfer an employment for
money to ao aggregate greater than
the worlds spare silver will furnish US.
Hence. oar silver money at home aud
abroad. will be valued as the money of
the Uoited States
The opposition threatens US witha
food Of Europe's silver upon our re-
epeued miuts. We answer. Europe
has no silver cut her silver money.
Her silver money values silver at from
three to seven cents 90 the dollal high
er than ours Heoce the European
merchants or bansers must sacrifice
from three 70 seven per cent. of his full
legal teuder money ip order to recoiu it
at eur mints Europe's silverware,
ike America s sllver~are, carries IN II
the addiiona value of labor aud the
mauufacturer's p7o6s
They threaten US with food of sill
yer from the far east. We answer that
the course of silver is invariably east
ward and never toward tbe west. Brit
ish India is perpetual siuk of silver.
absorbing it, never to return, by frcm
30 to so million dollars worth every
year. And Iodias absorptioa "f silver
will be enlarged BY the steadiness of.
price for silver fixed by our re-opeueG
min,s
They shraaten rs with ''suodeo re-
tisemept of $500. 100000 gold With
The accompanying paoic, causing cn-
traction aad commercial disaster uppar
aleled" " We answer that cur total
stock Of gold other than about Sl0,-
600. .o0o or SIS 100000 circol a'ins on
the Pacific coast, is already in retire
mepa Practically all our gold is in
the United States treasury or held by
banks The gold ln the treasury will
remain there if the Secretary avails
himself of his option to redeem United
States uotes 10 silver The gold in the
banks constitutes the quiet and uDdls-
turbed portion of their reserves against
their liabilities. 1t will continue to do
money duty as such after free coinage
of silver is enacted. Hence premium
on it will not contract the currency.
The utmost possible contraction Of the
currency will be the few millions circu
latiug 90 the Pacific coast. I'D this
will be retired but slowly.
A similar prediction of flight of gold
vas made for the Bland act of 1878. Pres.
ident Hayes was urged to veto it. but
congress passed it over the ve:o. instead
of fight Of gold as had been predicted
we gained by importation $4,000. 900
for the first year. $4,000, 900 the next
aud $90,000.000 the third year
During the l2 years that the act was on
the statute books we gained S220.000,-
900 of foreign gold Instead of iujuring
our credit abroad, as bad been predicted
the United States 4 per cent. loan,
which stood a. l01 on the day of the
enactment. sold at 12O per cent within
three years. and at 130 per cent, sub
sequeutly Instead of defeating the re-
sumption of specie payments op Janu-
ary first of the following year. the a.
100000 silver dollars which were
coined in 1878 and circulated by means
of silver certificates. reduced. the de-
maud upon the government for gold
Hence the threat of disaster now is
without historic foundation.
This, then. is wha. will follow the re-
opening of our mipts to silver: The
gold already in the treasurys will remain
there. if common sense dictates the
treasury management; that is if the
treasury exercises the option to redeem
United States notes in silver. A pre-
MUM Oh gold will not occasion a con-
traction Of the currency, bank boards of
gold continuing to serve as portion of
bank reserves against bank liabilities
A premium on gold will tend to in-
crease our exports by causing higher
rate of foreign exchange. that is to say
by yielding a larger net return in dol
lars on the sale Of bills Of exchange
drawn against goods exported a pre-