Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-04-19

I The trustee asks how that Is; that the
| Mexican dollar contains more silver than
the American dollar, and yet he is only
to be credited with $500, instead of ss
original ten.
The bank Official. Of course, Is inexo-
, BILE. and thus somebody has to lose the
difference Of the 1900
II Is needless to add that this trustee
will never lend any more money In Next
co, nor viii any of his friends or ac-
ouaintances. Now, take the case OF an
! English trustee, who has loaned an
American $1,000. He comes over here
for the payment of It, and the American
promptly hands him over the 1000 silver
dollars, with the additional interest due.
The English trustee protests saying that
If he takes this silver with him to Eng
land he only gets 600 English dollars for
II. but the American says that "this Is
legal tender, and If you don't accept It.
j will raise the question OF quit claim"
He pacifies the English trustee by telling
him, however, that It is all right; that
he can go TO the United States Treasury
and get his $1,000 in gold there; that the
United States Government Is pledged to
give him gold The trustee goes 10 the
I United States Treasury, gets his gold,
and takes II away with him. OF course,
he is badly frightened, and he tells all
his friends In England that the Americans
by their laws can pay their debts TO Eng
lishmen in silver at loss to them Of
40 per cent. but that II may be all right,
because the United States Government is
pledged TO keep gold and silver on an
equality, and he advises his friends, and
they, in turn, advise all their friends 10
collect the moneys due them as soon as
possible; for II the United States Govern
ment could not pay out the gold whenever
demanded they would be frghtful losers
This naturally creates a desire for credi-
tors In Europe to sell AL their American
securities and collect all Their debts and
get gold for them and carry 1t away.
Now, no great harm is done, provided
the United States can always pay gold for
silver, whenever II IS demanded. The
officials at the head OF the United States
Government see that an awful crisis
would occur II this could not be done;
hence they keep large quantity OF gold
I'm reserve. The scare has been so great
however, that the drain upon this gold
reserve has reduced 1t so that II must be
replenished. BY our very laws the
United States Is prevented from replenish-
ing the reserve by demanding that pay
ment to 1t shall be made in gold; hence
the only resource is to issue bonds. and
purchase the gold by adding to the ma
tional debt.
1t follows almost as a mathematical ne
cessity that when the United States goes
into the market to purchase gold 1t prac-
tically becomes a borrower OF money, and
hence the United States becomes a com
petitor for the use Of money, against
every individual and industry of the coun-
try which at the time are borrowers.
This was very clearly shown at the time
Of the last bond issue, when 1t was seen
Tan ell rc1
In the banks awaiting developments as TO
the bond purchasers.
1t thus appears that as long as we have
dealings with foreign countries the United
States must keep all our currency and
coin on an equality. To do this 1t is ne
cessary TO keep a gold reserve. To main
tain this reserve IL Is certainly necessary
to issue bonds. hence as a mathematical
necessity we are forced into the position
of the government competing with pri-
vate individuals for the use or the most ne
cessary tool In the world-namely money.
Were we not compelled to have dealings
with foreign countries or were foreign
countries to accept silver as payment on
debts on the same basis that We coin 1t,
there would be no trouble. but We are
compelled to have an immense foreign
business with countries who will not ac
cept silver as payment on the same basis
that we do
Some demagogues have said, LET US
have no dealing with foreign countries un-
less they come to us; We are a mighty
country and able to stand by ourselves"
1t Is true that We are great country.
but we are In business. What would be-
come OF the enormous surplus OF the cot
ton crop OF the South and the cereal crops
OF the West II We did not have foreign
pu-chasersY
1t seems curious that the majority OF
the silver agltat6rs are mainly from the
South and West. when these two sections
OF tho country raise more products for
export than the rest: or that the few
men comparatively who are interested In
siver-minirg should dominate the mil
lions who are dependent upon all other In
dustries.
The only excuse for the silver men,
other than tho miners, Is the fear Of q
contraction of the currency This should
not DO done. As there Is only about 81
apiece in this country to 60 around
a contraction OF currency would produce
hardship.
II seems 10 me as q layr,an that the
best solution Of the difficulty IL for Con-
gress 20 make an appropriation for q
commission Of the best hnanciers Of the ]