St. Paul daily globe., 1896-04-10
DUTY OF THE CONVENTION.
PARTY ATZ STE. LOUIS MUST DE-
CLARE AGAINST FREE COIN
AGE EFF SILVER.
W. ID. EustiS Also ON the Programme G
President Nerthrop Also Makes
asFew Remarks.

W. r. Merriam and William H. Eustis dis
cuss money and politics. Carl Taylor, the
president OF the club, presided, and, seated on
the platform with him, were, in addition to
the speakers, President Northrop, Of the state
university, Capt Castle. Sheriff Chapel E.
j. Hodgson, Eli Warner Dean Pattee, Of the
university and Charles E. Hamilton
While the crowd was gathering an orchestra
played number of selections It was nearly
$3.50 before the meeting was called to order
and then not more than half of the seats on
the main floor We're occupied, and there were
probably half a dozen people in the gallery
In calling the meeting to order, President
Herbert Taylor said he was tempted to mal,a
speech, but was enabled to desist because
he knew those present had not come to listen
to him. Nevertheless he went on to saw
that ne saw but one ray of hope for the
democracy In the city campaign, and that
was dependent upon the outsome of the
coh@ehaen next week. When President
hayes wanted secretary of war he had
summoned Alexander Ramsey. When Gar
Held wanted a secretary of the treasury
ne called for William Window, and Presi-
dent Harrison summoned Window again as
member of his cabinet also. And when
the present congress wanted a definition of
the Monroe. doctrine it turned to anotber
son OF the North Star state. Hon. G. X
Davis. When it came to the consideration
OF OF the great financial question, Minnesota
came to the front again with another son
her ex-god, w. R. Merriam, whom the nres-
! 1dent then introduced.
"oF. merriam began by referring to the i'm
Portance OF the money question, and the dutv
tnat races the Republican national conven.
lion at 81. Louis, IN taking right stand on
the question. That convention must declare
III unequivocal, language In favor of sonnd
money and against the free coinage of silver
at 10 TO l., said Coy. Merriam ''If n doec
ho' tahe TINS stand on the financial question
II VIII, and ought. togo down to defeat" -
ne then went on to- explain the functions of
money, saying that it had two-first to servo
a. a standard for the measuring of values
and second, it's use as a circulating medium,
ol eAchange. AS standard, it must be stable.
anu that metal the value of which is the least
variable is the best standard. Thus far gold
| Is the most satisfactory standard. the COM !
merclai world has discovered, because it Is
| the least changeable in value and all the
great commercial nations have therefore
adopted It, The United States adopted IT as
its standard by the law Of 1873
he said the silver coined under the Bland
Allison bill was purely fiat, because it was
eNchangeable for gold, and the silver certif-
| Gates had to be redeemed in gold when de-
manded, because if redemption in silver was
| insisted upon by, the treasury officials that
moment the money of the country went on a
silver basis. No one understood this better
| than the present secretary of the treasury. and
! he knew that the government would not dare
| insist on silver redemption The difference
between the gold men and silver men is that
| one side insists on a gold standard and the
| other insists on gold and silver at 1G to 1 as a
standard, which would Immediately result in
the dearer metal gold, going out of circuIa-
tlon The speaker quoted from the history of
european countries to prove this fact and
| he could not understand how the United States
| could hope to accomplish what all the nations
| of Europe had failed to do.
Inc argument that the decentralization of sill
| yer has resulted in the lowering of prices,
| he disputed, saying that the decline in prices
was due to economic changes in the cost of
| production through the improvement in the
methods of production and transportation
There is no lack Of gold in circulation 1t is
abundant, and obtainable at low rates of in
terest But those who have it insist on being
| paid back in the same kind of coin they loan.
AS soon as assured on that point, they will
not hesitate to open their Golfers and put the
money afoat. How could 1t be claimed that
prices had been lowered by the scarcity of \
money when money plentiful?
Foreigners have loaned money for the devel- 4
| opment Of the country. They have bought
bonds and invested in the stock of some of it's
| corporations. They naturally little
| shaky, therefore lest this country should
! adopt free silver and compel them to accept
| so cents worth of silver for every gold dollar
| they have invested here.
why, the panic of 1898 would be but as a
| whirlwind to a cyclone compared with the
| financial chaos that would result from free
| cCiEage Of silver declared the speaker.
| 1t admitted that imitation of the curren-i .
cy would advance and contraction would lower
| prices, but as long as the volume of money
remains stable, prices are not disturbed by
| the financial system. The variation of price
| then is due to natural causes. The moment
| free silver is adopted one-half the purehas-
| ing power Of all the money in the United
| States is taken away. Could any one con-
ceive Of greater crime? The United States
has system ofr;credit money that is more
| important in the-regulation of prices than is
| the coined money, and just as long as the
standard remains unchanged, this credit money
performs its duty, But as soon as the stand
| ard is changed or change is threatened, con-
/ fdence is haken-and-this credit money fails
/ to perform its function and general iquida-
| tion is the result.
Mr.. Merriam then turned his attention to
the greenback. The greenbacks performed
| the function of money until the crisis came,
| and then the demand for gold for their re-
| demption became so ygreat that issue after
| issue of bonds had to be made to replenish
| the treasury. AS fast as the greenbacks
were redeemed they had to be paid out
again under the law, fast as paid out
| they were presented for redemption again.
thus keeping up the constant flow of gold
from the treasury as fast as replenished
from the sale OF bonds. The government in
| issuing greenbacks is performing the func-
tions of bank, and this is no part Of the
business of government. The greenbacks
! should be retired.
The first thing to- be done was to restore
public confidence. Then the currency sys-
TEN must be completely reorganzed, and
when these two things are done, the people
can look for a restoration of prosperity, and
not until then. The strongest bank in the
world must give way IL confidence Is with
| drawn from 1t. Republicans believed in the
| Republican party because 1t had always
maintained that dollar must be the result
Of labor. and not the product Of resolutions.
Replying to a written question that had
been handed up, as to why silver was not. a
50-cent money when demonetized, but was so
| considered today, Mr.. Merriam said that the
time silver was demonetized 1t was worth over
100 cents on the dollar, while today 1t was
| worth only about 81 cents. Some other ques-
tions were submitted in writing,b but the exact
| meaning of the qpesuener was not apparent,
| and they were passed.
Mr.. Eustis was then introduced. He said
the people have ffeep1 taking lessons in the
school Of adversely. When he came to the
Northwest fifteen years ago everybody was
| prosperous, and c6ntinhed to be down to the
| time Democracy got control Of the govern
| ment. There never was period of low tariff
| that did not result In hard times. He dweIt
| on the history of the acquisition of territory
by the United States, and expressed the