The herald., 1896-08-30
SENATOR SHERMANS COLUMBUS SPEECH
BY SHIRLEY c. WARD

and other gold monOmetalliStS as TO the
effect of free silver coinage.
BY ascertaining the extent to which
these predictions were realized we may
form some estimate as to how much Gre
dence we should give to the present
prophecies of the same character re-
garding the results of free coinage. We
know, and Senator Sherman does not try
to disguise the fact, that his old prophe-
cles have proved utterly unfounded, but
that the parity of the silver dollar has
been maintained, although the amount
coined reached nearly ten times the
amount which he considered safe to coin.
He knows that instead of the danger
which he feared and the disaster which
he predicted being realized. the country
under such limited coinage of silver
from rs to '92 experienced the most pro-
nounced season of general prosperity
ever known in its entire history. Dur
ing that fourteen years the United States
paid off nearly $500 900, 600 of the national
debt, whereas, under the gold standard
existing from '73 to '7S, and since our
mints ceased the coinage of silver, the
national Indebtedness has been increased
nearly $500. 100000
During the fourteen years of limited
silver coinage above mentioned we built
over $4,000 miles of railroads, being con-
siderably more than 80 per cent of our
total mileage. increased our savings de-
posits from SS79, ,S79, 425 to SLIP. 769, 026.
and our national bank deposits from
S1S9 900, 900 to $519.300, 600. Our foreign
trade grew from S1202, 70S. 900 to S1.S57.-
S06l0. and our domestic commerce grew
in like proportions. Our public and pri-
vate credit was without parallel, and
the amount of foreign capital invested
in our enterprises was never before
equaled, and all Notwithstanding the
baneful prophecies of Mr.. Sherman to
the contrary, and even he is bound to
admit-as shown by the above extract
from his Columbus speech-that every
dollar we have in circula tion is an honest
dollar. having equal purchasing and
debt paying power with every other
dollar, Notwithstanding that the Si23,-
100000 of silver dollars are made out of
bullion ranging in market price at the
time of its coinage all the way from IS
down to 60 per cent of its coin value.
The true explanation of this mainte-
nance of parity is that every silver dol
lar coined had the same legal tender
function as every gold dollar: that is,
by law it was made a legal tender at It's
face value for all debts. public and
private. This explanation. however,
will not suit MI Sherman's purposes
in this campaign, so he says
we were unable to maintain
the parity because the United States
lldu i HlbHOppIH u lHt cOlHdSe anu ne-
cause the amount coined was limited,
whereas. with free silver coinage the
amount will be unlimited. We are
bound to admit that under the law OF
IS and 80 the amount of silver coined
was limited, although it was nearly ten
times greater than Mr.. Sherman consid-
cred safe. having due regard to the
duty of the government to maintain the
parity between its dollars. But how true
is Gt hot l,o hot
will be coined under free coinage law
Will be unlimited. this statement is only
true in the sense that the amount is ur-
limited by any coinage law. but it is
not true in the full meaning of the word,
for it is limited by the amount OF annual
production of silver bullion. In this use
Of the word we may say that our mints
can now be compelled to coin an unlim-
tied amount of gold bullion and there
fore our money is in danger of imitation
and debasement. but we all know that
While we have no coinage law that pre-
vents unlimited quantities of gold being
coined, 'f:-t the limited power to produce
gold op@r;.,@s as an ample safeguard
against .his alleged danger And ii is
this natural limit of silver production
taken in connection with the continuin:.
demand for silver in the arts and the de-
mands of other silver using Countries
which the advocates of free coinage Of
silver rely upon to prevent Improper in
hation of values. or the debasing of our
coin under free coinage of silver
THE SO-CALLED LARGE INCREASE
OF SILVER
The largely increased production Of
silver during the last twenty years is
pointed to by the gold monometalljst,
as indicating the great tendency to over
production and cheapening of silver, ard
while II is true that for few years past
the production of silver has been in
cfeasing somewhat faster tfan the pro-
duction of gold. still estimates to be re-
liable in matters of this kind should NOS
be confined to the production OF a few
years. but should extend over long pc.
RODS OF time; pursuing this course we
1lnd that during the first fifty wears of
this century there was produced in the
world Sl.lS in silver for every 81 in gold;
whereas. the world is now producing
only about $1.10 in silver to 81 in gold
and from 1850 to 1875 there was produced
only about 40 cents in silver to every 81
IN gold. But even assuming for the sake
OF argument that the phenomenal pro-
duction of silver of the last ten wears
may be expected to be continued indefi-
nitely, taking the average of such ten
years. it would give us an annual pro-
duction of about $174000, 0G0 for the en-
tire world. (See report of the director
Of the mint of this year, Setting aside
20 per cent Of this amount as being used
n the industrial arts-a much less;
amount than is usually conceded for this
pllrNHse-and we have remaining sl21.-
1000 per annum to be coined Sattin y
aside one-half of this amount for the l,se
OF other silver using countries-whicn
Is very scant allowance for such coun-
tries, hased upon the proportion of tha
total silver output consumed in the past
by such countries-and we have remain
ing subject to be coined in this country
only SbS,lVo,OO0 per annum, being less
than one dollar per capita per annur1
for each inhabitant of this country
There is certainly nothing in this threat
ened enlargement of our circulation -
create alarm or indicate danger of infla-
ton of values or debasement of silver
NO one Who is familiar with the groWinr
business Oh TINS country and its con-
staNtly increasing demands for money
Tor one moment doubts the power of this
nation to absorb to advantage in III +,
channels of trade annually, without in
Juriously initiating values. a very mucn
larger sum of money than would be af-
fofded by annually adding one dollar
per capita in silver to our circulation
Our population is increasing at the rate
OF 20O0,0UO per annun, and adnittirp .
as the gold monometallists claim. that
we now have in circulation some S22 ner
capita, il would require SAG, 600, 600 of this
annual coinage of $6S, 100 coo even II
MAINTAIN our present per capita cir
culation. leaving out of view our con
Stantly increasing business. The ereat
trouble is that people ordinarily do moi
stop to consider that the inability n
mankind TO produce more than a givar
in