The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-01-14

RESULT OF SPECULATION.
a careful and exhaustive analysis will dis
close but a single source of all this trouble,
human greed. facilitated by the credit. Ions
credit. principle. Did the fires of specula-
ton consume only the investment fund OF
a country the disastrous effect would be
comparatively slight: but when the COM
mercial fund becomes involved. banks must
fall and merchants. trades people and pro-
ducers Of every kind are ruined. This is
just what has been happening all over this
country during the past three years; is
happening to-day and will continue to for
ever unless the money employed in the
CHANNELS OF trade shall be sacred to the
uses of MINER
What can the remedy be? What must
II be for the recurrence of these ruinous
periods of mad speculation? Can ii be the
issue of irredeemable fiat money, pure and
simple? Every man who cares for his
opinion. and for whose opinion any one
cares, answers no. Can IL be the issue Of
more ~greenbacks. redeemable on demand
by the government? Nine hundred and
ninety-nine out of every thousand of those
who approve the continuance of the pres
ent amount outstanding would protest
against the addition of a single link to the
endless chain. Can it be the free coinage
of silver at 10 to /. standing without a re-
deemer. when every two 5O-cent dollars
that are coined brings one fiat irredeem-
able dollar into circulation? But the adj
vocate of free coinage assures us that such
a privilege granted to silver would raise
silver to a parity with gold, and we would
then have the double standard. But upon
what atom of experience or economic prin-
ciple does he base this empiricism? Free
coinage would not raise silver above the
Spectators will, and If ii should we would
not have a double standard. for there never
has been any such thing at any time any
where, and the proposition gives the lie
to all experience and c~ontravenes nature
itself. Free coinage at II TO l did not raise
silver a farthing from 1892 TO 1894. and our
actual STANDARD was silver. Free coinage
at 16 TO 1 did not raise gold "A farthlng from
1894 to 1853. and our actual standard dur
ing that period was gold. and has been
gold ever since. This truth has been fully
established also by the experience of
France.
NEED OF CONSERVATISM.
Then can it be that any one maintains
it would conserve public morals for
this great government to return silver coin
for the goldit has actually received dur
ing the past three years and by law enable
every creditor to cancel all his obligations
with 5O-cent dollars? Would this gigantic
attempting to make four billions of
silver worth eight billions, succeeding or
falling. have n s~alutary effect upon the
tendencies of our people? Would
il not rather neutraliZe all the influence of
their experience to which alone we must
% II DcSt 1tSSOlS ait IlOSl tlltCludl
checks to our gambling instincts? Indeed,
to experience alone and n persistent deter
to confine the commercial funds
the country to the legitimate channels
of trade must We look for greater and
greater conservatism as these waves of
speculation succeed each other and pass
over us in future years.
While this frightful expansion of individ-
credit was going on the United States,
too. was travelling along a parallel road.
Disregarding the light of all experience and
ra0raanf RI tho nld6OoG and DISTINCT nn6ar-
when from supposed necessity the
government issued its ~greenbacks. this Ma
ton has kept its fiat afioat since 1879 to
the cost ana injury OF the people for a net
loss amounting to more than 1923. 600. 600.
after allowing for the interest on the 4
bonds. 1t would have required TO
take up the three hundred and forty-SiX
millionEo greenbacks.
Nor have the people been satisfied with
the three hundred and forty-six million
they thought they were getting fer nothing
pcnSive money they have ever used). but
from that date. which ought to have marked
the retirement Of the last demand obliga-
ton of this government, they went on in
the demand claims without add
ing a dollar to their reserves until the
whole world viewed us with alarm. Well
they night for while we thought that one
hundred million was necessary to protect
three hundred and forty-Six million in 1879
seemed to think IL was sufficient to
guard one thousand million In 1893. The
holders of our obligations at home and
abroad, whether national, municipal, cor
porate or individual. at Il time when the
most frightful strain was resting upon the
people in their attempt TO liquidate
their Improbable investments made dur
ing the speculative period already referred
10, realizing the danger to which they were
exposed. cashed their securities on the eX-
changes and hid away the proceeds or took
il out of the country, while the maturing
obligations were refused renewals or extern
sions. Everything in our financial system
aggravated the panic that followed. Every
facilitated the demands that could
not be satisfied.
CLEVELAND'S ACTION.
The patriotic conduct OF President Cleve-
land. indicating that the last dollar of ma
credit would be exhausted before the
government would dishonor one of its OBJ
alone temporarily checked the
food of demands.
Fortunately for the honor of the Nation,
fortunately for the prosperity of the peo-
pie. the Republican party at the ST. Louis
declared that the gold stand
ard must be maintained. Fortunately for
he Republican party there proved TO be In
the Democratic party a grand army OF pa
triots who loved the honor of their coun-
try more than the success of their party,
md. at the risk or price of future party
preferment. supported Mr.. Mckinney lor
say, we have settled the standard for four
years at least. Think of II, the personal
of the people and the honor OF
the United States being piecemealed out
tor four years more at least.
Should the balance of trade turn against
Is and 500. Oo0, 900 be required to settle the
where could II be obtained except
At the counter of the United States treas
Try? Should fear of our inability 10 mann
gold payments again seize security
holders. what check can there be under
present conditions to the complete eXhaus-
ion of the gold reserve? One protection
,lone remains, that of taxing the people,,
IND this they will not long endure. Nor
should they. for this responsibility should
upon the banks, to which IL snould De
ranferred without delay.
1t is left with the United States alone,
lmong the frst-clasS nations or the earth,
cling to the exploded ana oarparlc prlh-
.iples of state issues of notes. Indeed.
very s~econd-rate nation even has discard
d ii or attempted to. Mark this. the only
that still practice IT are Austria,
hungary. Russia, Italv. Canada, Japan and
-ndia. Canada has only Sl6.20o. 1901 OF Do
notes. which are covered with S3,o32,-
~ of gold and SIC, 196, co. of securities and
sc. 966 of silver, or a total of $ls,Slo.S6O. SO
hat our condition cannon De coihpdleu Win
hat of Canada.
Austria-Hungary has just completed ar
for the retirement OF IT'S OUT
notes. now amounting to only So6,-
"a 600. and we are left alone in the gro
esaue company of India, Italy, Japan and
Russia.
WAY TO ESCAPE BANKRUPTCY.
If the United States government is TO con-
the paying functions of a bank, it
without delay open its doors for de-
,osits and discount the paper of our mer-
,hants, thereby acquiring the power of pro-
.ecting its reserves and establishing such
-ates of interest as will prevent the export
gold whenever such a movement is un-
There are three ways of escap-