kV "
8 Conservative *
clso a premium is exacted for tUo gold.
It operates in an entirely different
manner from the Bank of England and
the effects of its action are borne by an
entirely different class of people.
The parties desiring the gold may have
ample funds and do not wish to borrow.
They are simply made to pay the penalty
for dealing hi French money and , as Mr.
Oonant testified at the hearings , in con
sequence of this practice , a largo part of
the world's international transactions
has been driven from Paris to London.
Effect of Free Coinage
The most serious , however , of Mr.
White's incorrect statements were con
cerning the value of silver if free
coinage existed at the ratio of 16 to 1.
"Mr. Games < page 47) ) : I say give
silver the same privilege given gold now
in other words the same privilege both
had before demonetization in 1878 , and
yon had a chunk of silver 412) < > grains of
standard silver , would you sell it at 49
cents ?
"Mr. White : Oh , no. I would send
it to the mint of course and a vast num
ber of others would do the same.
"Why would you do that ?
' 'Mr. White : Because I could get the
mint price.
"Mr. Gaines : Then giving it free
coinage would raise it from 49 cents to a
dollar ?
"Mr. White : It wonld raise an ounce ,
but that it would raise all the silver in
the world I deny.
"Mr. Gaines : I am. not talking about
all the silver in the world. "
"This is my final question , Mr. Chair
man , and I want to get it fully answered
and I know Mr. White can do it and I
thank him for his free answers.
"You would not sell your chunk of
silver I have described for 49 cents ?
"Mr. White : No.
"Mr. Games : Would not giving it
the legal right to be corned raise it from
its bullion value of 49 cents to its coin
age value of $1 ?
"Mr. White : It would enable mo to
use that particular piece at the value of
a dollar. "
It scarcely seems possible that Mr.
White seriously intended that his
answers should authorize the construc
tion which they clearly carry.
The distinction he endeavors to make
between silver here and silver all over
the world , is not justified.
If the value of the particular chunk
in question would be raised by free
coinage from 49 cents to 100 cents , why
would not that be the case with every
other similar chunk or any number ol
chunks anywhere ?
The idea is preposterous.
What the exact result of free coinage
might be is a matter of conjecture only
and any definite statement made con
cerning it should be taken only as an
expression of individual opinion. Ii
vould create financial anarchy in the
United States and almost anything could
bo predicted. Under certain conditions ,
t may bo granted , that for a temporary
ary period the bullion price of silver
would be advanced , but oven this is not
absolutely certain. It would all depend
upon the manner in which the business
of the country would accept the situa-
lon.
lon.When
When the legal tender act was passed
n 1862 and irredeemable paper notes
were issued by the government , the
people of the Pacific states and ter
ritories refused to accept them as money.
They were legal tender there as well as
everywhere else in the United States ,
but the so-called law of unlimited de
mand for legal tender money which , it
s claimed , will maintain the value of
such money , had no force upon the
Pacific coast. Business continued to be
conducted there upon the gold standard
and the greenbacks were treated as a
commodity and bought and sold at a
varying discount.
The entire country in 1802 , even if so
disposed , could not then have followed
; he course adopted by the Pacific coun
try for the reason that it did not possess
sufficient gold to supply the need for a
circulating medium of exchange. But
that condition does not exist at this
time , and it could now continue to do
business upon the gold standard not
withstanding the free coinage law. This
being the case , silver coin would be no
more valuable than silver bullion , and it
is by no means certain that the coinage
of silver would be greatly increased. It
might thus follow that no material
change would occur in the price of
silver , and Mr. White's chunk of 412 %
grains would still only go for 49 cents.
But no matter what the result might
be , the idea is wild and visionary which
suggests the belief that an act of legisla
tion by the United States could increase
the value of moneyed capital to the ex
tent indicated by Mr. White's replies.
HENRY W. YATES.
Omaha , Neb. , Feb. 20,1901.
INDIANA , ILLINOIS AND IOWA
RAILROAD.
THE CONNECTING TRUNK LINE ,
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Chicago & Alton Ry Dwight , 111.
( Streator , 111.
Zearing. 111.
Chic. Burl. & Qulncy R. R. gjfgftS
, m.
Walnut , 111.
iDenrock , 111.
Clev. Cln. Chic. & St. TV Ry. .Kanltakee , 111.
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( Fulton , 111.
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( Clinton , Ta.
f Pulton , III.
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Grand Trunk Ry. System. . .South Rend. Ind.
Kankakee. 111.
Illinois t/entral K. It I
/ j
L08tant , m.
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Lake Shore & Mich. So. Ry. | gjjg g Ind >
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Michigan Central R. R } $ South Bend , Ind.
Galieni Mich.
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Pere Marquette Rv St. Joseph , Mich.
Lake Mich. Boat Lines St. Joseph , Mich.
P.C O & 8t.L NorthJudson.Ind
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Yandalia Line South Bend , Ind.
No. Liberty Ind.
R. R { ,
j Reddick , 111.
Operating Fast Freight Service between the
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fast freight lines , thus avoiding the delays to
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jected.
General Offices ,
505 The Rookery , Chicago , 111.
T. P. 8HONT8 , GEO. H. BOSS ,
Pres. & Gen. Mgr. Traffic
NATIONAL SHAWMUT BANK
BOSTON MASSACHUSETTS ,
FEBRUARY 14 , 1901.
$3OOOOOO.OO
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