The American guide., 1896-10-10
Ex.sscRsTARY scHuHz.
shows Clearly That Free silver Would
Ruin Industry.

IN NNhlidl -NAoAN nam Nh'NNt, -
tember 8. Speaking of possible free
silver victory, he said;
Consider what the immediate conse-
quences would be II Mr. Bryan were
elected president, with a congress 10
match. Mr.. Bryan would, of course, be
anxious to have his free-coinage law
enacted, but that could not be, even II
he called an extra session of congress,
until some time in April or May, five or
six months after the day of election.
But as soon as on the 4th Of November
the result of the election was announced
everybody would know that the parity
of gold and silver would not be main
taiLed.
1t having been made certain by Mr.
Bryan's election that the parity OF gold
and silver would not be maintained,
there would be a rush upon the treasury
for the gold in it by the persons hold
ing greenbncks entitled TO redemption,
and the gold reserve would be exhausted
in a twinkling. Gold will Instantly
disappear from circulation, to be hoard
ed or exported. Why will it disappearY
Because every sensible person when
making payment viii prefer to mrke
it in the less valuable dollar and hold
the more valuable gold dollar back for
more profitable use. Gold will there
fore quickly rise TO n premium, and we
shall be on the silver basis long before
rree-conage law can be enacted. Our
daily transactions in buying and sell
ing, in paying and receiving wages
will no longer be carried on upon 'he
basis OF the gold dollar worth 200 cents
but of the silver dollar worth SO cents
or tbercabout, for the government Will
no longer hold up the silver dollar TO
the value of the gold dollar. That is
what the silver basis means. You can
study in Mexico how IL works.
The quantity of gold vanishing from
circulation will amount to about Se0o,-
O00UO0, the disappearance Of which
will make tremendous hole in the
volume Of our currency. But, says the
silver man, there will be free silver
coinage to fill the gUp promptly with
coined silver or silver certificates. on,
no, my fellow sufferers. The disappear
6ncc OF gold will happen promptly after
the election Of MIR. Bryan, and there
will not possibly he any free coinage OF
silver for at least six months, AMI it
viii require great many more months
to fiji gap of 5000, 100000
What will happen meanwhile? The
St. Louis Glohc-Dcmocrat reports Mr..
Bryan 10 have said some time ago; 81
think it-mcaning the victory of the
frec-coinagc moyemcnt-will cause Il
panic. But the country is in depIor-
able condition, and It will take extreme
measures to restore it 10 a condition Of
prosperity" Whcrcupon the st, Louis
paper puintcdly remarks Evidently
Mr. Bryan has heard Of the doctor " ho
always threw his patient into fits before
administering any cumtiyc medicine"
Just so.
How, then, would Mr.. Bryan's "ht'
work? The sudden Disappearance OF
our gold from circulation would pro-
duce the most stringent contraction OF
the currency on record. Business men
who own money and at the same time
have money due them will be forced to
collect that money by every means at
their disposal. Nobody will be inclined
TO lend out money except upon ex-
truordinnry security. The banks will
naturally consider II their duty to keep
themselves strong, and therefore to call
! in lonns and to restrict their discounts
and advances TO business men with the
utmost caution. Business establish
meuts, manufactures, mercantile
houses, unable to get the money for
meeting their obligations, will by the
] hundreds succumb TO their cmbarrass'
mrnts and tumble down Hike row OF
/ bricks. Others will cautiously restrict
their operations TO the narrowcst posSi'
| hc limit, and wugc-enrncrs by the thou
/ sands will lose their employment and be
| turned into the street,
How can / forrtcll these things with
30 much insurance? because they have
nlrrndy cast their shadows before. Do
vou remember the crisis Of 1893, when
the silver hnsis was ion sghtP And now
! ,Fuin the mere apprehension Of a posi-
billty Of Mr. Bryuns election and of the
consequent slipping Of our country upon
. the silver basis has already caused un.
told millions Of our securities to be
| thrown upon the market In Europe as
well MS here
Scores Of business orders nre already
recalled. large number uf munuluctur
ingestublishmcuts have nlrcudy stopped
or restricted their operations, enter
prise is already discouraged and nc0rly
paulylcd, many works Of public will.
| iy hy Industrial or railrond companies
/ have already been ordered of, thou
suuds Of worlingmcu are already
thrown out Of employment, gold Is al
ready being honrdcr capital Is alrcady
being sent out Of the country 10 be in.
vested in Europe for safety,
And why all this2 Not ns The silver
men foolifhly pretend, because the cN'
isting gold standard has made money
scarce, for capital is lying idle in heaps,
scores upon scores Of millions, fairly
ycarnng for safe employment. No.
Asl, those concerned why all this hap.
pens, and with one voice they will tell
YOU II II bccnusc they apprchcnd serious
danger to every dollar rcnturcd out
through the change of our standard OF
value in prospect, through the dcbnsc
ment Of our currency threatened by the
frcc-silyer coinage movement, And II
these are the effects Of mere npprc
hcnsion Of possibility, what would be
the effect Of the event itsclf9