The San Francisco call., 1896-07-23
Their intelligent conclusion win be felt when

Their intelligent conclusion will be felt when
expressed at the polls.
The banker is also without prosperity unless
prosperity is general throughout the United
states. He must learn to distinguish between
cneap money and money commanding low
rate OF interest The dollar worth two bushels
OF wheat is a dear dollar and yet it commands
interest in Wall street at present of but 2 per
cent per annum on call. If the dollar can be
cneapened by increasing the number of dol
lars, so that each dollar will buy less wheat,
the increasing price of wheat viii increase the
demand for dollars to invest in its production.
1nen the borrower of dollars to invest in the
PRODUCTION OF wheat being reasonably sure
ol proht from that employment of the
money can afford to pay interest for its use
part OF his profit. In other words, interest
Is snare OF the profit on the employment OF
money. So that abundant money, money read
lily ootalnable, which is To say really cheap
money, is the money which commands high
.ate OF interest as share of the profit of the
borrower in using it,
As we appeal to the country in the justice of
ouT cause one or two points of common in
Rerlence OF Mexico is held up for our alarm.
We answer:
EirstIThat Mexico is conspicuously prosper
Gus at home. Her increase in manufactures,
is phenomenal
Second-Mexico is no criterion for the United
states LOT the reason thatshe has foreign trade
Indebtedness OF about $50, 600 900 annually
IN excess OF the value of her exports of cotton,
sugar, cohee, hides and the like, which must
mines. Her silver therefore goes abroad as
merchandise, and at a valuation fixed by the
outside world. The United States on the other
hand is a Nation of 10000, 900 of people,
scattered over a territory seventeen times the
area OF France. A single one of our railway
systems, the Erie, exceeds the aggregate rail-
way mileage OF all Mexico. We offer employ
ment OF money to an aggregate greater than
the worlds spare silver will furnish us Hence
our silver money at Eome aud abroad will be
valued as the money of the United States.
The opposition threatens US with q food of
Europe's silver upon our reopened mints. We
answer, Europe has no silver but her silver
money. Her silver money values silver at from
cents 10 cents on the dollar higher than
ours. Hence the European merchant or
banker must sacrifice from three to seven per
cent OF his full legai-tender money in order to
recon 1t at our mints. Europe's silverware,
Ike Americas sliverware, carries in it the ad-
ditional value of labor and the manufacturers
profit.
They threaten us with food of silver from
the far East. We answer that the course of sill
yer is invariably eastward and never toward
the west. British India is a perpetual sink of
silver, absorbing it never to return by from
thirty TO sixty million dollars worth every
year, and India Subscription OF silver will be
larged by the steadiness of price for silver fixed
by our reopened mints.
They threaten us with the sudden retirement
OF $6OO,OOO,o0o gold. with the accompanying
panic, causing contraction and commercial
disaster unparalleled. We answer that our
total stock of gold. other than about S1O,-
100000 or $15 ZOO. 900 circulating on the Pa
CHIC Coast, is already in retirement. Prac-
tcally all our gold is in the United States
treasury or held by banks. The gold in the
treasury viii remain there if the Secretary
aya1is OF his option 10 redeem United
States notes in silver. The gold in the banks
cons 1tutes the quiet and undi stur bed portion
of their reserves against their liabilities 1t
viii continue to do money duty as such re-
serves after free coinage for silver is enacted.
Hence premium on 1t will not contract the
currency. The utmost possible contraction of
the currency viii be the few millions eirculaI-
Ing on the Pacific Coast, and this will be retired
but slowly.
Asimilar threat of a flight of gold was made
for the Bland act of 1873. President Hayes
was urged to veto it, but Congress passed it
over the veto. Instead of fight OF gold, as
$4,000, 600 the first year, $4,000 the next
year and $4,000 900 the third year During
the twelve years that act was on the statute
books we gained 1921 900 600 of foreign gold
Instead OF the destruction of our credit abroad,
as had been predicted, the United States per
cent loan, which stood al 10l on the day of the
enactment, sold at 120 per cent within three
years and l30 per cent subsequently. Instead
OF defeating the resumption of specie pay
ments on January OF the following year. the
tweEty-four million silver dollars which were
coined in 1878 and circulated by means of the
silver certificates reduced the demand upon
| the Government for gold. Hence the threat OF
disaster now is without historic foundation
This, then, is what will follow the reopening
OF our mints to silver: The gold already in the
treasury viii remain there, if common-sense
dictates the treasury management; that is If
the Treasurer exercises The option 10 redeem
United States notes in silver. A premium OF
gold will not occasion a contraction of the cur
Feney, bank boards OF gold continuing TO
serve portion of bank reserves against
| bank liabilities. A premium of gold will tend
| 20 increase our exports by causing a higher
rate OF foreign exchange; that is to
say, by yielding larger net return in dollars
on the sale of bills of exchange drawn against
goods exported. premium will tend to
diminish our imports by increasing the cost of
bills of exchange with which to pay Tor goods
imported. The tendency of increasing our ex-
ports and diminishing our imports will be to
establish credit balance of trade for the
/ United States. A credit balance OF trade means
| that Europe has become our debtor and must
settle with US in money. Europe's silver money
/ is overvalued in her gold, compared with ours,
| by from to cents on the dollar. The Euro
| pean merchant or banker Will, therefore. make
his trade settlements with US in gold more
/ profitably by from 3 TO per cent than in his
silver. With the instant that European trade
settlements with the United States are made in
gold, parity for our gold and silver money is
established in the markets of the world There
with The 37114 grains of pure silver in our
silver dollar and the 1922 grains of gold in
our gold dollar are of exactly equal worth as
| bullion in New York.
Mr.. st. Johns assumption that the con-
vention would prevail upon the patriots
calling themselves the Peoples party to
indorse Bryan and Sewall was received
with great applause, which continued for
nearly minute. The assertion that the
! threatened flow of silver from the East
had no force, and that the entire stock oil
gold in the country would be retired was
also without force, for all of it but ten OF
fifteen millions circulating on the Pacific
Coast had already been retired, was greet
ed with loud applause.
The effect OF the speech upon the dele.
gates was most happy, nearly every sem
tenoe being followed by enthusiastic mani.
festations of approval When Mr.. ST.
John concluded many delegates rose to
their feet and cheered. The next business
in order, Chairman st. John announced
was the appointment OF special commit.
tees.
G. w. Baker of California moved the
appointment OF committee of one from
each State 10 meet a similar COMMITTEES
from the Populist Convention to take up
the question of the differences between the