The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-08-16
SPEECH BY SHERMAN.



Concluded from First PnEe.)
value? And what but gold can be that
standard? What other thing on earth pos
sesses the requisite qualities? : Gold
is the articulation of 1t is the
most potent agent of civilization. 1t is
gold that has lifted the nations from bar
barism. 1t is the common denominator of
values. 1t makes possible the classification
Of labor and the interchange of commod-
tiles. Gold has interviewed in bargains
made between men since the dawn of civ
ilization. and il has never failed TO faith
fully fulfill its part as the universal agent
and servant Of mankind. " . The value
of gold is not affected by the stamp of the
government
Senator Stewart, of Nevada. i'm the
same debate on the 18th OF June. 1874. said:
Sir. the laboring man and the producer
is entitled 10 have his product and his
labor measured by the same standard Of
the world that measures your national
debt. Give him such a standard,
give him money as you require from him.
You require il from the producer. You re.
quire from the laborinS man gold TO pay
the interest on your national debt. which
is right, which cannot be avoided if you
mean to save national honor; but then
paw that debt. The question will
never be settled until you determine the
simple question whether the laboring man
is entitled to have a gold dollar If he
earns it. or whether you are going to
cheat him with something else. That is
the upshot OF the whole thing. Everybody
has TO say that the laboring man was en-
titled to a good dollar. That was fought
fSe same nee par w1il will nfR Win IT. There THer i haVe b sen
a great many battles fought against gold.
but gold has won every time; Gold never
the world respect ii all the time. The
English people once thought they could
get along without gold for awhile, but
they had to come back to it.
Senators Jones and Stewart, and all the
Representatives and Senator's. of the sill
Yer States were urgent and honest in say
ing that gold WoS the hest and OniN
standard OF value, but they changed their
minds when the largely-increased and in
and other States reduced the market value
of silver below that of gold at the estab-
a market for their silver. They wanted to
pay existing debts and obligations con-
tracted upon the gold basis in silver. but
took care In their contracts. to stipulate
for the payment Of gold TO them. and this
has been and is now the general practice
in the silver States.
RESUMPTION OF SPECIE PAYMENTS.
when the coinage law OF 1913 was en-
acted all of the States except those on the
Pacific coast conducted their business upon
the basis of g~reenbacks or United States
notes, then at a discount of about Is per
cent. Neither silver nor gold was used in
domestic transactions, but we collected our
customs duties in gold coin and conducted
our foreign commerce in gold. the money
of the world. 1t was not until January,
1915. that the first step was taken TO re-
sumo specie payments. nor did We resume
yer rapidly fell in market vaIue below
gold at the ratio of 10 to l.. Prior and sub
sequent TO 1873 many changes We're made in
coinage by the leading countries or the
world. Germany in 1871 changed its stand
ard from silver to gold. France, Italy.
Switzerland and Belgium had in 1865 enter
ed into a treaty called the Latin Union to
which other nations became parties and by
which the coins of each of these countries
were received and paid out by all of them.
rms important ~arrangement was 1rst mod
ifled and finally abandoned, and gold be-
came the standard of value i'm those coun-
tries, but in all silver was coined and
largely used as a subsidiary coin, precisely
as in the United States.
In anticipation of the resumption of spe-
Gle payments the resumption act of 1915 pro-
vided silver coins, of dimes, quarters and
half dollars. for the redemption of the frac-
tional currency then in general use In our
country. These new silver coins gave great
satisfaction. They were limited in legal
tender qualities TO $40. At this time Mr..
the free coinage of silver at the ratio of Is
to ] ON the demand OF the holders of silver
bullion. Silver had then declined below
that ratio. One ounce OF gold was worth
more than sixteen ounces of silver. The
Bland bill, if it had become a law as it
passed the House, would have demonetized
gold. Such was not the purpose of Con-
gress. When the bill came TO the Senate
an amendment was made on the motion OF
Senator Allison which changed the scope
of the bill and authorized and directed the
Secretary OF the Treasury TO purchase from
time to time silver bullion at the market
price not less than &, 000.0 900 nor more than
81. OO. 900 worth per month. and cause the
same to be coined into silver dollars as fast
as purchased. II also PROVIDED tnat any
holder of the coin authorized by that act
might deposit the same with the Treasurer
Of the United States in sums not less than
$40 and receive certificates therefor OF not
less than SO each, and hat the coin de-
posted should be retained in the treasury
for the payment of the certificates on de-
- NJ. IL - .A~1 -AaA1 I~tL
m hanss Ihls w DHi Known no ame aE the a Blsna-H s9hh
son act. 1t greatly added to the difficulties
of resumption. and for that reason was We
over his veto. Under its provisions the
United States purchased over 2s1. 600, 900
ounces of silver at the cost of SECS. 27e $50.
1t was hoped that this enormous purchase
would arrest the decline of silver. but in
spite of it silver steadily declined in mar
ket value. and at the present price the loss
to the government on the purchase of sill
oOo. goo.
THE SHERMAN PURCHASE ACT.
when Congress met in December. 1889.
there was a strong desire in both houses to
utilize silver as legal-tender money under
conditions tina would not demonetize gold.
AS the result of long discussions in both
houses and after a conference between
them a bill was passed July IA. 1890. by
which the Secretary of the Treasury was
directed to purchase from time to time sill
yer bullion in the aggregate of $500. 900
ounces a month at the market price. and
to issue in payment of such purchases
treasury notes of the United States which
were made a legal tender in payment of
all debts. public and private. and were re-
deemah.e by the Secretary of the Treasury
in gold or silver coin at his discretion. This
measure. IL was thought. would arrest the
decline in the market value of silver and
enable the Secretary to maintain the two
metals on a parity with each other at the
ratio of IS TO l. But the market value of
silver continued to decline. The govern
ment purchased under the act of July Ii.
1890. l6S. 900, 900 ounces at a cost of $156. 600, 600.
This proved TO be an expensive experiment.
and the act was repealed Nov. l. 1893. This
| repeal was accompanied by the following
declaration, made a part OF the repeating
act:
land Ii is hereby declared to be the pol
icy of the United States 10 continue the use
of both gold and silver as standard money.
and 10 coin both gold and silver into money
of equal intrinsic and e~xchangeable value,
such equality 10 be secured through inter-
national agreement. or by such safeguards
Of legislation as will insure the mainten.