Omaha daily bee., 1896-08-01
PART ".
STATUS OF MONEY IN 1896

STATUS OF MONEY IN 1895.
The amount of money in the world is
constantly increasing.
This may he illustrated by the coinage of
the United States in 1895. In 1895 there was
coined in the United States: Gold, $43, $685.
415; in silver, $4,000 $50; total, 500, 0O2, 1856.
Money coined is not like the products from
the farm. Farm products may increase
from year to year, yet they are also con-
suned every year, and thus disappear from
the product Of the world. The gold and sill
yer coined is not consumed, but remains as
so much money added to the bulk of the
money of the commercial world.
1t is not necessary, therefore. that the
amount of money coined should increase
from year to year in the ratio of increase of
the products of the farm and factory. The
coined money in the United States in 1896
is as follows: Gold coin, $500, 600. 900; stand
ard legal tender silver dollars, $413 900, 900;
subsidiary silver coin, $7S, ZIG, 677. These
amounts are taken from a speech made by
Mr.. Carlisle. secretary of the treasury, in
the city OF Chicago about three months
ago. To this should be added the green
backs and the national banknotes, so that on
May /, 1896, the total amount Of money In
circulation in the United States was re-
ported by the Treasury department to be
81, $40, 007, 0S2.
The position of the republican party, as
proclaimed in it's platform adopted at st.
Louis, is that all our silver and paper
money must be maintained at a parity with
gold and that all our money, whether coin
or paper, must be maintained at the present
standard.
1t is not the contemplation of the re-
publican party to destroy any part of the
American money. The platform contains
no declaration in favor of retiring the
national bank notes. as does the Chicago
platform. 1t contains no provision for doing
away with any part of the silver money of
the country, nor for destroying it's legal
tender character.
BIMETALLISM.
The republican platform has another
proviso, which is that the present existing
gold standard shall be maintained "And
that we are opposed to the free and unlim-
tied coinage of silver except by international
agreement with the leading commercial
nations of the world, which we pledge our
selves to promote
l know that Mr.. Bryan has said in his
public addresses that the republican plat
form is inconsistent with itself and that II the
gold standard is a good thing, why not de-
clare to maintain 1t permanently? If it is
a bad thing and bimetallism Is a good thing
even under international agreement. why
not declare for 1t now without waiting for
the aid or consent of any other nation?
Mr.. Bryan's argument is fallacious.
Let me give an Illustrations: In the CITY
OF Omaha is a merchant; he is engaged in
large business pursuits; he has a wide and
extended trade; his credit in the CONNER
cial world must be maintained. He lives in
a comfortable home, suitable for his domes-
SIN u " us uuducldl
situation. ~
l He goes home and says to his wife: eve
VIII continue TO live in our present home
nntll such time as my business affairs are
SO arranged that without endangering or
hazarding my credit or running my fnan-
cial standing we can build a larger and a
petter house, and when that time comes l
snail build a larger and better home
Ills wlfe says to him, as Bryan says to
the republican party: IF our present
home is a good one, why not continue to
maintain 1t and live in 1t? If our present
nome Is a bad one and a larger and more
expensive mouse would be a better one, why
not decide to build 1t now, without the
ana or consent of any of your creditors? q"
such an argument to a business man needs
no answer.
PANIC OF 1893.
We are Just recovering from the financial
depression OF the panic of 1898.
That panic was brought about very largely
by the agitation Of the silver question and
the effort of the government to maintain a
large amount of currency based on silver,
which weakened our financial credit and
destroyed confidence.
rms agitation, coupled. with the advance
ineht OF Tree trade ideas, destroyed public
confidence and produced the panic of 1898,
me most weighty question before the
thinking American people is whether we
want to reproduce the panic of 1893. even
before we are fully recovered from its evil
effects. "'
This panic of 1893 followed after the great
era OF prosperity from 1880 to 1891. and
yet our itee silver men seem to have for
gotten the enormity of that panic, as well
as the causes which produced it.
Inc horrifying character and results of
tnat panic can best be understood by a
simple statement of a few facts.
The deposits withdrawn from national
pahSs from May 4 to October 81, 1893,
reached the enormous sum of 1878, 900, 900.
rms withdrawal OF deposits compelled
the national banks to call in loans. which
they did to the amount of $3lS, 900, 600.
These facts of themselves were enough
10 produce a s~trinsency in the money
market and to cripple all mercantile in
terests. Yet this is but a small part of the
story.
The number Of banking houses which
closed their doors between January / and
October 81, 1898, may be summarized as
follows: National banks, 1854; state banks,
lSl; savings banks, 40; private banks 1SS.
loan and trust companies, 10; total, 5S5.
Tho liabilities of these suspended ~institu-
lions aggregated the enormous sum of sl69.-
900, 900. '-"''
Yet this is but a part of the calamities
which fell upon the people In 1898 as a
result OF a free trade and free silver aglta-
ton. eN"
The business failures in 1893 were 16. 900.
Inc liabilities OF these business houses
reached the enormous sum of $3.50. 900, 900.
Under these depressed conditions the farm
ers or the United States sold their surplus
wheat at panic prices upon the markets OF
Europe to the extent OF 60, 900, 900 bushels.
The railroads which passed into the hands
OF receivers had a valuation OF 81, 200, 900, 900.
These great misfortunes did not include
The losses OF the shops or factories, neither
does II include the shrinkage of values of
all other kinds OF property.
Mr.. David A. Wells, a political economist
OF great repute, a man of great learning and
ability for detailed investigation, states that
upon an estimate the total losses in the panic
OF 1898 reached the enormous sum of 81, O0O,-
900, 900.
do not stop to add to this story the sur
fcring and deprivation of thousands upon
thousands Of laboring men who were thrown
out Of employment. or the distress which
bore down heavily upon hundreds and thou
sands OF households.
This panic and great financial loss is
traceahle largely TO the efforts OF the United
States to maintain at a parity with gold an
extraordinary amount of cheap silver and
10 the constant agitation OF the men who
favored the free and unlimited coinage OF
silver.
Upon this point David A. Wells wrote:
mus, there Is almost a consensus among
bankers that after the features Of the Bland
bill enacted In 1878, had become generally