The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1896-07-23

dollars. which Is to say a tendency to.
ward constantly. declining prices
The fountain head of our prosperity
has run dry. our farmers ali owe? the
country have endured the depression In
prices until they get about IS or 50 per
acre. for an expenditure OF $40 per acre,
and the like. Their credit Is exhausted
at their country stores. The country
store ceases to order from the city mer-
chant, the city merchant reduces his
demand upon the manufacturer. Man
ufactures are curtailed. The conse-
quence Is thai. employees and all ele-
merits of labor are being discharged,
and wages are lowered to those who con-
tinue I'm employment. The sufrerings
of the farmers, who constitute nearly
one-half of our popuia ton Is thus en-
forced upon the city merchant. the man
ufacturer and all forms of labor. These
combined elements constitute the over
whelming majority OF voters Their in
expressed at the polls.
The banker also is without prosperity
unless prosperity is general throughout
the United States. He must leain to
distinguish between cheap money and
money commanding low rate of inter
est. The dollar worth two bushels OF
wheat is n dear dollar, and yet it COM
mands interest In Wall street at pres
ent OF but two per cent per annum on
call If the dollar can he cheapened by
each dollar will buy less wheat. the in
c;easing price of wheat will increase the
demand for dollars 10 invest In its pro-
duct!on. Then the borrower of dollars
10 invest In the production wheat, being
rea sonably certain of profit from that
employment of the money, can afford to
pay interest for Its use as Il part of his
pioft In O.her words, Interest Is
share of the profit on the employment
of money. So that abundant money,
Ia 4. IN.
say, really cheap money. Is the money
which commands high raLe Of interest.
as share of the profit Of the borrower
in using it.
AS we appeal to the country in the
justice of our cause one or two points
of common inquiry must b satisfied as
follows:
The experience of Mexico is held up for
our alarm We answer first, that Mex
leo is conspicuously prosperous at home
Her increase In manufacture railway
earnings and the like in recent years Is
phenomenal: second, Mexico Is no critic
rion for the United States. for the reason
that she has foreign trade Indebtedness
of about 100000, 900 annually In excess of
the value of her exports of cotton, sugar
coffee. hides and the like, which must be
paid for In the surplus product of her
mines. Her silver. therefore. goes abroad
as merchandise and at n valuation fixed
by the outsids world. Tile United States
on the o:her hand. is nation of 70. 900 00G
of people, scattered over a territory sew.
enteen times the area of France sin
gle one of our railway systematic Erie
exceeds the aggregate railway mileage
of all Mexico. We OFFER an employment
for money to an aggregate greater than
the worlds spare silver will furnish us.
Hence. our silver money, at home and
abroad. will be valued as the money of
the United States.
The opposition threatens US with a
flood of Europc's silver upon our re-
opened mints. We answer. Europe has
no silver but her silver money. Her sill
yer money values a from 10 cents on
the dollar higher than ours. Hence, the
European banker or merchant must sac.
riiice from 10 per cent of his full le-
gal tender money in order 10 lecon II ait
our mnts. Europe's s!lverware. like
Americas slverware, carries in It the
additional value of labor and the manu-
facturers' profit
They threaten us with a food of silver
form the far East. We answer that the
course OF silver is invariably Eastward
and never toward the West. British
india is perpetual sink of silver alb
sorbinS IT, never to return. by from
thirty to sixty millions dollars worth
every year And India's absorption of
silver Will be enlarged by the steadiness
of price for silver fixed by our reopened
mints.
They threaten us with Sudden re-
tirement of $500 600. 900 gold with tho ac-
companying panic. causing contraction
and commercial disaster unparalleled. /"
We answer that our total stock of gold
other than about $4,000. 900 or $4,000.
900. circulating on the Pacific coast, is
already in retirement. Practically all
our gold is in the United States Trea-
sury or held by banks. The gold In the
Treasury will remain there IL the Sec
retary avails OF his option to redeem
in the banks constitutes the quiet and
undisturbed portion of their reserves
against their liabilities. 1t will continue
to do money duty as such reserves after
free coinage for silver Is enacted.
Hence a premium on ii will not contract
the currency. The utmost possible con-
traction Of the currency will be the
few millions circulating on the Pacific
coast and this will be retired, but
slowly.
a similar threat of flight of gold was
made for the Bland act of 1878. Pres!-
dent Hayes was urged TO veto It, but
Congress passed IL over the veto. In
stead of flight of gold. as had been
predicted. we gained by Importation
$4.000.0 900 for the first year. 10000, 900
During the twelve years that the act
was on the statute books we gained
1921 900 900 of foreign gold Instead of
the destruction of our credit abroad,
as had been predicted, the United States
per cent. loan, which stood at 101 on
the day OF the enactment. sold at 12O
Der cent. within three years. and at 1870