Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1900-10-26
SECRETARY GAGE
Continued from page ~

because silver has become relatively
more plentiful than gold. or because
the desires of men have changed
whatever theory you may adopt. the
fact remains unchanged. viz. one ounce
of gold is equal in exchangeable power
to 80 ounces of silver. Yet il is in full
view of these facts that political par
~, or rather. combination of at least
three political parties, PROPOSES. if it
gets control of the government, to re-
open the minis to the free coinage of
silver at the ratio of 16 to l. Why?
Why? If it were desirable to open the
minis for the free coinage of silver
why not do as our fathers did. to wit
make the ratio as near as possible to
the commercial value ratio? They say
it was a crime to close the minis to
the free coinage of silver in 1873 | deny
it; but if it were true, would il cure
that crime to commit an egregious fol-
ly in 1900?
The Democratic champion still AYERS
that on this question the party stands
where it did in 1896. He does not talk
about it 50 much. but when he does
talk about it he uses the same mis-
leading phrases as of old. For instance,
he has repeatedly said: THE Repub
lican administration under Mckinley
is coming silver every day in the month
and every month in the year at the ra-
ito of IS to |. If that is not the cor
rect ratio, why 30 they do it?"
Mr.. BRYAN knows why, but he con-
ceals the reason and allows his hear
ers to draw erroneous conclusions. The
statement. so far as it goes, is true.
4
recting the secretary of the treasury
to buy 1000, 900 ounces per month and
coin it into standard dollars" But
mark this: The coinage was to be for
the government and on government
account, and not on private account
for the benefit of holders OF bullion. In
1890 the Sherman law was passed
which directed the secretary to buy
not less than 4 500, 900 ounces of silver
and to coin not less than 100000
ounces a month. That fact also declar-
ed it to be the policy of the govern
ment to maintain these dollars on a
parity with gold. In 1893 the purchas-
ing clause of the Sherman law was re-
pealed. Since that time the minis have
in truth been engaged in coming up the
purchased bullion.
But mark this: Through the law
and by operation Of the treasury. the
dollars have been kept equal to gold.
They are paid out only by the govern
ment and against the receipt by the
government of an equal amount in
gold. or in service rendered. or goods
bought. With the governments guar
antee Of parity, and the quantity linn
,,,a,,ffactlt- y n indifferent
circumstance whether the ratio We're
Is 10 /. 20 to /. or to l. Ana yet Mr.
Bryan deity insnuates that this prac-
tee justities the free coinage for
everybody at a ratio commercially OBJ
solete without any guarantee Of equal
itv with gold from anybody.
Let me tell you story. IL illustrates
this question of parity and makes II
more clear Four or five years ago l
listened to a conversation between q
certain judge and banker.
The Judge said: II constantly hear
that our silver dollar is worth
only 60 cents. and yet you bankers and
al dealers are glad to take them for
dollar each. How is that? Are they
really worth dollar, or DO you az
give 80 cents more for each OF them
than they are worth? My question IS
IN honest one: / want to know
The banker replied: Well, ! will
answer you by the kindergarter
method" lie held UP a nickel ard
asked the judge. What is that
Answer "A nickel-iive cents
what is the metal in the coin
WORTH"
Judge: 4 don't know"
Banker: II will tell you. II Is worth
about sixth-tcnths Of one cent. Now,
with 50 small value in itself, how does
il come to be worth five cents?
Judge: Why the government, hay
ing issued il for five cents. and having
received five cents for it, will redeem
it for five cents in gold. won't it?''
Banker: Yes. you have It exactly.
You have described what Is perfectly
analogous to the truth regarding the
silver dollar The government buys the
silver at the market price, now about
| 60 cents. stamps certain quantity OF
it a dollar gets dollar for it when it
pays one out and redeems it when pre-
scented for redemption.
! Judge: Does the government re-
| deem it with a gold dollar?
| BANKER. NO. DuI II QctS SubS teit4-
| TALLY the same thing. 1t receives II as
the equivalent Of q gold dollar in the
| payment Of customs dues Being as
efficient as gold for that purpose, il is
| now the equal Of gold for all purposes.
At the same time it does this il pays
| gold to every one that wants il and
has a claim or demand on the treas
ury. Thus the parity is maintained
have been obliged to say 50 much by
way of explanation or preface to my
main question.
How would the interests of wage
earners and salary paid people be af-
fected if the Democratic Bryan propo-
sition should be realized? In the year
1895 | had a conversation with one Of
men Of the brightest and most capable
business men of the West. He was
engaged in large affairs-an employer
of labor. a bank president. and man
| Of reputed wealth. He said to me: II
am persuaded that it is for the interest
of the people OF the United States to
Open the minis for the free coinage of
silver at the ratio of l6 to 1. and to get
onto the silver standard as soon as
possible" | said to him: 1T is SUI
prising to hear such a statement from
You. You must have thought it well