The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1896-10-28


in circulation, then there would be but
50,
Such radical and sudden contrac-
ton of the currency would of itself
alone, and entirely apart from any
panic on account OF the depreciation OF
the currency, cause a stringency and
panic such as we have never known.
But coming on top of the other panic,
the ruin 1t would spread would be diff
cult to describe.
Thus railroad stocks with gold mort
cages ahead of them las gold must be
bought to pay interest, thus increasing
If not doubling this fixed charge, and to
that extent diminishing or entirely WHIP
ing out the net earnings applicable to
dividends) with earnings diminished by
the business collapse, would in the gem
eral panic become absolutely unsalea-
BILE. The bottom would have dropped
out of them. Banks therefore would
become absolutely unable to realize on
their collateral, and though a combina-
ton might save the strongest for a
time, ultimately they too must go to the
wall
The decentralization would be COM
plete.
In this general crash all factories.
mills, building operations, etc, would
shut down, and all classes of worlSmen,
mechanics and .laborers except farm
hands be generally thrown out of en-
ployment.
Under the keen competition Of this
mass of unemployed for the little work
! left, it Is clear that wages, instead OF
rising, must in the near future, fall,
even though paid for in deprecated
| dollars, because Of the many who want
employment, and must take it at any
\ price to save themselves and their fam
| flies from starving.
| With no wages, the unemployed la
borers could buy neither food nor cloth
| ing, and the diminished demand would
cause the prices of grain, cotton and all
farm products to fall, as is always the
| case even in small panics; and such
want suffering and misery would be
entailed upon the labortng classes as we
never have known before.
| OF course all mortgages past due or
| in default would be Immediately called
| in, and if not paid, foreclosed, and the
mortgagors largely wiped out.
| 1t is needless to say that there would
| be absolutely no money whatever to
| loan. for who would lend hundred
| cents. or even ninety-fve or ninety, in
order. later on, to get back but fifty
| three?
Mr.. Bryan says he does not believe
the silver dollar would depreciate to So
cents. or at all, but would continue to
| be worth 100 cents in gold as now.
Is this view sound?
If the silver dollar under free coinage
is to remain worth 100 cents In gold it is
apparent that silver bullion must be-
come worth $1.29 an ounce, for ii worth
less, bullion holders would coin it for
the profit, and this process would con-
tinue until no profit remained; that is,
| until the value of the silver dollar was
| lust the same as the value of the bull
lion in it. If on the other hand, the
price of silver bullion is not raised to
81, 20 an ounce, 1t must inevitably draw
| the value of the silver dollar down to
the value of the bullion in it; as bullion
| would be coined until the two values
met
To raise the value Of silver bullion, 1t
| is necessary to raise the value OF the
whole worlds stock of silver which eX-
ceeds four thousand millions of dollars,
from 65 cents, its present price, to $l29
an ounce.
Mr. Bryan admits this. In his speech
of acceptance he said, ''We contend
that free and unlimited coinage by the
United States alone will raise the bull
lion value of silver to it's coinage value,
and thus make silver bullion worth
l H.. IL ftrnr ,orI,n he
world. ''---,~
The question therefore resolves itself
into this: Would the demand in the
United States for silver dollars over
and above the present stock of 437 ,0O0,-
900 of them (treasury statement of Oc-
tober LIST inst), which we already have
on hand, be sufficient to double the
value of the worlds stock of silver?
Mr.. Bryan says it will, but admits he
can't prove it, adding neither can you
prove that it won't
That is his argument. He gives you
his claim and belief, and says that Is
just as good as what all the financiers
claim and believe, as neither can be
proved; and it Is on this showing, and
on this showing alone, that he asks the
American people to elect him, and tt
see If his belief won't come true.
In Brooklyn, on September oath, hi
said, "You cannot prove by mathemat-
les that we can maintain a parity
neither can you prove that we cannot.
Fortunately we are not RENTED tt
Mr.. Bryan's belief alone for our guild
ance The United States has had some
experience in trying to raise the price
of the worlds stock Of coin above it,
market value.
, In 1860 the bullion in silver dolla1
was worth s1.03 in gold; and the golt
dollar, measured by silver, was depre
ciated per cent. Our minis wer
, opened to the free coinage of gold a.
well as of silver. Did that raise tn
price Of gold to par with silver? No
at all. Although the worlds stock o
gold is much smaller than it's stock o
silver, and although it was only neces
, sary to raise it's price 3 per cent, W
J could not accomplish it.
This lasted from 1884 to 1850 AM
: down to 1878. The price Of gold bull
lion was not raised the per cent, an,
, being the cheaper currency, it drov
: the silver OUT of circulation. And a
no silver had been in circulation TO
over IS years, in 1878, after full debate
this coin was omitted from our coinag
list.
In 1892 under the ratio of Is to 1, iii