II THE OMAHA UA1LT ! HEH : WElSxESDAY. PKBUUARY 3. 1892.
SHALL m m mm m
Joint Discussion by Ed "ward Rosewater and
Jay Burrows.
PART n.
.Mr. HotRiviitrr'n ArRiluirnt.
I fully agrco with Mr. Uurrows
tlio vital point at issue in the present
discussion is the expediency of frco and
unlimited coinage of silver ns It alToi'ls
the welfare of our people. I cheerfully
concede that wo ought to have free and
unlimited coinage if thereby the wel
fare of our people could bo promoted.
] f 11 moro Increase In the voluino of
money , regardless of its exchange value
or purchasing power , would insure > gen
eral prosperity , it would bo manifestly
the duty of every government to bond
all its energies toward Increasing the
volume of Its stock of monoy. If , as Mr.
Burrows Insists , the Intrinsic or com
mercial value of metallic money cuts no
figure , every nation could at pleasure
enormously increase Its voluino of money
hy reducing the weight and quality of
its coins.
What Mr. Burrows means by saying
that the volume ot money "involves the
question of prices or the relative pur
chasing power of products or labor and
inonov" is not very clear. If ho had
said that the volume ot money regulates
to a certain extent its purchasing power
of products and labor I would concur ,
but the form in which ho states his
proposition is as misleading as is the
declaration that "In this issue the Inter
ests of the money-lender , or the fixed
income class , or the creditor class , are
at variance with tlio interests of the
producers , the merchants , the me
chanics , the debtor class. "
The advocates of frco coinage assort
that unlimited and free coinage
will enormously increase the volume
of money and that an increase in our
stock of money would make money
cheaper. In other words , they assume
"
that "money is governed by the same law
that governs all other commodities ,
which fall in price when abundant and
riiio in price when scarce. But this is
not true as regards the price or
"rato of interest" which money com
mands in the loan market. A large
volume of money always begets
increased speculation. When money is
plenty men are willing to venture upon
enterprises that promise largo returns ,
and tlio money-lender linds no difllculty
in raising ills interest rates. During
the inllation period following the
war the money-lending and in
come class were in high o'ovpr.
Cheap money loaned on choice city
property and farm mortgage securities
at from 10 to 12 per cent a
year , while what is termed dear
inonoy at the present time can bo
had in abundance on the same class of
\ securities at from 6 to 7 per cent per
annum. Every intelligent person knows
that the money loaned by bankers is
chiefly other people's money. When
there is n money stringency or prospect
of a panic every prudent bunker hauls
in his sails by cutting down bis line of
loans or refusing to loan at any price
for four that the depositors may make n
run on hisbanlc. When business is dull
and money scarce , deposits run low and
legitimate banking yiojds much smaller
prolits than In Hush times , when loans
are made freely and mercantile failures
loss frequent.
Tlio hue and cry that the opposition
to free coinage is in the interest
of the income class is also un
founded. The fixed income class , if
that means the bondholders , wore much
bettor oil whim gold was at a high
pi omium and paper money was super
abundant. Money was cheap then. Ton
per ccn't state , city and county bonds
sold at a discount and Uncle Sam paid o
and ( i per cent on gilt-edged , nontaxable
bonds. Today , with what is called dear
money , state , county and city bonds
drawings } to 5 per cent command a
premium and national bonds sell readily
nt 2 per cent. The bloated bondholders
have suffered a greater shrinkage ot
their Uxecl incomes during the past
iwonty years than woulil have paid the
principal of our entire war debt. The
unly bondholders that have made largo
nrolits are those who have bought their
Lends at a discount. There is ono class
of ll.xcd income poop'.o who would suffer
by the unlimited coinage of 73-cont
dollars , and that Is the veterans of the
late war and their widows and orphans
on tlio national pension roll. It
is to their interest to have a sound cur
rency that will enable.them to buy the
largest amount of tilings with the money
they trot from Undo Sam. Conceding
that free coinage means the raising of
the price of commodities , it becomes self-
evident that the soldiers and soldiers'
widows on the pension roll would suitor
a shrinkage of their incomes , unless they
could induce the government to raise
their pensions in proportion , which of
course would bo improbable. Assuming ,
however , that the government might
increase these pensions , it would simply
mean a forced increase of the pension
roll by from ton to twenty mlllinnsn year
and a corresponding Increase of taxes
The advocates of unlimited coinage
never lire of holding up the man and
women who rely for tholr livelihood
upon fixed Incomes as a dangerous class.
They forgot that hundreds of thousands
of those persons tire widows and orphans
whoso patrimony and horltage has boon
Invested in sccuritic/i by administrators
and guardians.
And who are the debtor class and who
will pro lit by the proposed unlimited
coinage of silver ? Tlio Union and Cen
tral Pacific railroads ewe the govern
ment over $100,000,000 , which begins to
fall due In 18911 and must nil l > paid
within the next seven years unless the
debt is extended. Will It promote tlio
wolfnro of our people to allow Jay Gould
and Leland Stanford to pay that debt In
depreciated silver dollars instead of
inonoy that passe ? current In all parts of
the world ?
The Union and Central Pacific are not
the only corporations that belong to the
debtor class. The lowest estimate of
the debt of the railroads of tlio United
States exceeds $11,000,000,000. What
bo null t will the pcoplo derive from
l * > scaling thai colossal debt , unless in
deed they buy up the railroads entirely
with an Irredeemable paper cur-
. VoncyV Kvory largo corporation , the
Standard oil monopoly , the Whisky
trust , the Hrowory trust , the Sugar
trust , tho.Stool lloam trust and all the
big and little trusts that have been built
up by combination of capital huvo plas
tered their possessions with mortgages
to the tune of millions upon millions , and
therefore they rightfully belong to the
debtor class.
And then there ave the coal barons ,
the iron and copper mine specula
tors , and the silver bulllouairos and
gold quartz millionaires. Every produc
tive mine in America is bonded for all or
moro than it cnn produce. The owners
are among the most grnsplngof outcapi
talists. Will it promote the public welfare
to give this imperious class of debtors the
riglit to scale their honest obligations ?
Lout , but not least , why should the silver
mine bulllonalro DO given the privilege
of selling the product ot his mines nt SO
per cent above its commercial value and
paytng his debt in money ; worth 30 per
cent less than its face value ?
Mr. Burrows' conception about the
function of mints is , to use a mild term ,
decidedly crude. The o 1m of nil gov
ernments has been to issue coins of
weight and fineness corresponding as
near ns possible in their value to the
commercial value of the metal contained
therein. Very slight fluctuations have
boon unavoidable , but whenever the
variation of standard coins is material ,
they are recoinod. Subsidiary coin is
usually below standard and "intended
only for local circulation in limited
quantities. Even those are rccolncd
periodically when reduced below stand
ard weight by wear and tear.
At the riak of being branded as very
reckless and suporliclal , I take Issue
with Mr. Burrows when ho declares
that a coin cannot bo said to ba
debased unless it contains loss
metal than the law requires.
The doctrine that the king can do no
wrong lias long since been exploded.
It is a matter of history that kings and
parliaments have by decrees and laws
arbitrarily raised the face _ value of
coins above the commercial rating of
the metal they contained. Such coins
did not contain loss metal than the law
required , hut they wore denominated all
the world over as debased coin , the same
if they had boon fraudulently alloyed
or reduced in weight by the sweating
process.
Mr. Burrows lots the fiat cat out of
the bap when lie asks :
"Suppose the silver and gold coins of
this country should bo diminished just
one-half , what would result ? Prices in
this country , measured by our coin ,
would bo doubled , but it would have no
effect whatever upon our foreign trade.
Gold and silver would pay balances on
exactly the same basis as before , viz :
their commodity value. "
Well , what would bo the result ?
Would it bo anything else than national
repudiation by n debased currency ?
If wo can increase the volume of money
by a simple Hat that will convert every
llfty-cont piece into a dollar , why not go
a stop further and decree that a dime
shall bo u legal tender for ono dollar ?
That would increase the price of all
commodities tenfold and make debt-
paying so much easier. But what would
become of the poor man who has noth
ing to sell except his labor and has
everything to buy ? Wages are always
the last thing to advance and the llrst
to go down.
What would become of the wage-
workers who have , by hard labor and
thrift , saved up the surplus of their
scanty earnings and placed it in savings
banks with a view to buying a homo or
meeting want and distress in a rainy
day ?
It is passing strange that no champion
of free silver has yet discovered the fact
that several millions of workingmen and
working women belong to the income
claas. The indebtedness of the savings
brinks and trust companies to a great
multitude of wageworkers is computed
at over $2,500,000,000. How would
those industrious toilers faro if they
were paid back in depreciated money
the hard-earned savings which repre
sent labor paid for at gold standard
wages ? \yould it not bo downright rob
bery to pay back those working people
in dollars that would buy only 50 cents
worth of commodities ?
I boldly assert that any party or indi
vidual that would advocate a law that
would give the savings banks the privi
lege of paying back honest savings in
depreciated currency simply advocates
legal robbery.
Mr. Burrows denies that the govern
ment stamp docs not add to value and
he cites the fact that 37H grains of pure
silver when stamped ( coined ) as $1 will
pay a dollar of debt while iJ7H grams of
unstamped pure silver will only betaken
taken hy your creditor at its commodity
price 7i ! cents. What is the dilToronco
exclaims Mr. Burrows. "Ono boars the
evidence that the law has said
it shall pass current for a
dollar. The other does not. Con
sequently coining has added valuo. "
Now what is tno difference ? Would not
a piece of tin or a piece of leather with
a dollarstnmp pay a debt for $1 if made a
legal tender. ? Would not a paper dollar
perform the same function , altnough 100
paper dollars reduced to pulp would not
pass current for a farthing ?
Why then does the 73 cent silver dollar
lar and the valueless paper dollar pay
ono dollar of debt ? simply because these
dollars tire redeemable for 100 cents in
gold at the national treasury , and there
fore they are as valuable as thn gold
dollar 'for which they can bo ex
changed. Why is our government able
to exchange the depreciated silver dollars
lars at their full value in irold ? Simply
and only because the coinage of silver is
limited/ It wore free to all owners of
bullion the treasury vaults would ho
drained of < rold in loss than twelve
months and "tho country would be on a
silver basis like Mexico , China , Japan
and India.
Mr. St , John , president of a Now York
bank tnat is reputed to bo largely in
terested with the bullionairos in booming
mining stocks , points triumphantly to
Franco , is cited by Mr. B. as saying :
After 'JTt ! yuara of widely varying average
relative prices of ijotd mid sliver , under mod-
onito variations of relative production barely
averaging H per cent , the mints of Franco
alone for a period of sixty-two years , to Ib05 ,
under variations of relative production ox-
ccealng HI percent , maintained a practically
unvarying average rolntlva price In market
for gold and silver in splta of divergent coinage -
ago lawn * . * *
JJnder equally frco coinage for t-'olJ und sti
ver , owners of olthor bullion sought the
mints of Franco nt a value fixed for thorn ,
price mud for thorn In purchasing power div
cruod by law. In consequence in tno period
1831 to 1840 , Jll'.OOO.lkW of the world's abun
dant slU'or wai welcomed Into the legal ten
der silver coin of l-Yiinco ,
What are the historic facts ?
In 172 i the ratio of gold to silver was
placed at 1:1-13 : , An ounce ofgcldwna
worth more than 1-H ounces of silver ,
and consequently gold soon disappeared
from circulation. Adam Smith , having
visited Franco in 1701 , snidf "It is there
difficult to got more gold than what is
necessary to carry in your pocket. "
In 178o , Louis XVI. , in an edict , calls
attention to the fact that the legal ratio
of gold to silver dilToring from the com
mercial ratio , had as to tno gold coins
"orlgmited the speculation of selling
thorn to the foreigner , and otters the
temptation of u great profit to thee who
may allow themselves to melt them
down. " Ho then ordains that "ovory
gold mark of Ii4 caruts line shall bo worth
15 } marks of silver 12 deniers lino. " This
established the French ratioof 151:1 : still
existing. In 1700 the revolutionists had
control of Franco. They had confiscated
the lands of the clergy the year before.
They wanted monoy. So they conceived
the ingenious idea of using paper
money , which they called usslgnats ,
basing their value on thusu confiscated
lauds. In April they issued 400,0UOJO ( )
francs in asslgmits. In September 600-
000,000 moro. This they declared would
ho the last. The af > * ignata worked
beautifully. Everybody received and
exchanged them at full value.
Then some ono said , just as the
tfroouback inflationists said in the
seventies and just ns silver men sny now.
"If this franc is as good as any other
franc , how can wo have too many of
them ? The law makes the value of
money. " 3o the presses wore sot to
work , and within a few years they had
issued over forty-five billions of those
paper francs. The government poomod
surprised that any ono should make n
difference between a coin franc and a
paper franc and a law was passed that
any ono making such a dilToronco
in trade should bo imnrisoncd
for six years. They could jail
individuals but they couldn't jail nat
ural laws. No ono would exchange ono
coin franc for loss than nearly 300 paper
francs. Then in 171HJ those political econ
omists tried another experiment. They
cut up the confiscated lands into exact
parcels , exchanged the nssigtiats at
about 3 per rout of their face value for
what they called mandats , and pro
claimed that the holder of manuals
could select any parcel of this land and
pay In mandats. Within a few months
the mandate wore worlhono-sovontioth of
their face valuo. and they wore soon
wiped out altogether.
In 1803 the ratio of 151:1'was : re-
enacted. Mr. Chevalier , the eminent
French economic authority , writes :
In the year 1803when the ratio of 1:15)4 : ) between -
twoon the motiUs was established , this ratio
actually existed In the commercial world ; but
little by little It changed , and soon paid came
to bo worth ordinarily o lltlo moro than lf > K
tlmos as much ns silver. This discrepancy
sunlcod to retire gold from circulation. A
few yearn after the passage of the law of
1SOM , cold bocamn so scarce that people had
to buy it of tno money chnniiors whoa they
wanted to carry that kind of cash on tholr
journeys. In fact , tne circulation of the two
motaUttldo by side had ceased to exist shortly
after the year 1801) ) , and twonty-Ilvo .years
after that date the circulation consisted of
silver only.
Sir G. B. Airy , the royal astronomer
of England , wrote :
In the year 1820 I spent some time in
Franco. The gold coin was a little too rich ,
and no gold coin could be pot. The better
class of farmers went to market followed by
tbolr servants , who carried hURO bags of flvo
franc pieces. In ISM ) I again passed through
Franco ; I wished for gold , and obtained itoy
payniR a heavy prime.
In 1848 came the increased production
of gold in Russia , in 18H ) in California ,
in 1851 in Australia. Silver soon ro.se
to a value higher than 15il : and , consequently
quently , silver rushed out of Franco at
such a rate that a commission oven re
ported the advisability of placing nn
export duty on silver.
Early in the 'OOs Grcsham's law had
pushed out from Franco oven the frac
tional silver coins to such an extent
that it became a , jjreat public incon
venience. Investigation showed that
Belgium and Switzerland were simi
larly troubled. The result was the or
ganization of the Latin Monetary
union in 1805 , comprising Franco.
Belgium , Switzerland and Italy.
Later , Greece became a mem
ber also. All those countries use the
franc system of monoy. They agreed on
a basis of silver coinage , reducing the
metallic value of the subsidiary coins.
After 1859 , silver had again taken the
downward course which has character
ized its value through the centuries. In
1807 , at the international monetary con
ference held at Paris under the presi
dency of Prince Napoleon , it was de
cided , without a dissenting vote ,
that gold should bo the solo
money standard. The spirit
of silver demonetization was
abroad. Silver had been out of circula
tion so long in the United States that
Mr. Hugglos. the American delegate , in
reply to a question of Prince Napoleon ,
said : "Though the double standard still
exists legislatively in the United States ,
it is virtually abolished in practice , and
hence the United States has the gold
standard alono. " In 1871 , after the
Franco-German war , Germany decided
to place itself on the gold stand
ard , and to demonetize silver.
Between 1873 and 1879 Goamany
sold $140,000,000 of iier silver. The
neighboring countries which up to that
time , had always maintained the irco
and unlimited coinngoof goldand silver ,
became Alarmed tit the threatened influx
ot silver and expulsion of gold. So
in 1874 the Latin union mot , and
from that year on there has boon
no free and unlimitoo coinage of silver
in Franco , Belgium , Switzerland and
Italy. They limited the coinage of sil
ver. And in 1878 they slopped the coinage -
ago of legal tender silver in tote , so that
for thirteen years our much applauded
bimettalic France has not coined a single
legal tender silver coin.
Mr. Burrows takes mo to task for quot
ing historical statements in what ho is
pleased to call "tho most .appalling and
roclcloss manner. " Ho ventures to im
peach the correctness of the ligures I
have cited touching the coinage of stand
ard silver dollars. I can only excuse
his fearful misstatements in regard to
silver coinage by supposing that lie lias
never studied coinage statistics and
made his computations from the wrong
columns of his financial abstract.
My figures were taken from the ollloial
report of Edward O. Leech , director of
the United States mint for 1890 , bound
volume , pages 201 and 2(13 ( , also the re
port of Director Leech for the fiscal
year 1801 , bound volume , pages 213 and
215.
According to Mr. Burrows , the total
coinage of silver dollars in 1850 was $1-
800,100 and of minor coins 941,407.50.
According to Mr , Leech , the coinage of
1830 consisted of silver dollars , $17,500 ;
half dollars , $1,311.500 ; quarter dollars ,
$150,700 ; dimes , $211,150 ; half dimes ,
$82.250.
Mr. Burrows assorts that during 18-51
there were coined : silver dollars , $774-
397 ; minor silver coins , $99,1(35.43. ( In
1852 silver dollars , $99,410 ; minor coins ,
$50,030.94.
The director of the mint officially re
ports in 1851 oiily 1,300 silver dollars
coined ; coinage in half dollars , ? 301,375 ;
quarters , $02,000 ; in dimes , $112,050 ; in
half dimes , $82,050 ; in 3-cont pieces ,
$185,022. In 1852 the coinage of silver
dollars wis but $1,100 ; half dollars ,
$110,5i5 ( ; quarters , $08,21)5' ) dimes ,
$190,550 ; half dimes , $08,025 ; 3-cont
pieces , $550,905.
Mr. Burrows oxolnims , "Isn't it
strange that in stating the gold coinage
for the same year Mr. Hosewator should
bo correct ? " Is it
Why strange as re
gards gold when lam also correct oa the
silver coinage ?
Mr. Burrows flatly contradicts my
statement that from 1805 to 1835 , during
a period of thirty yours , not a single
standard silver dollar , or any other sil
ver dollar , was coined in the United
States , and Mr. Burrows makes the
reckless assertion th it during that
period there were coined $41,372,007 in
silver dollars , besides several millions
In minor silver coins , which he had not
taken the trouble to compute.
This is decidedly rich. I take it that
the director of the mint ought to know
as much about the coinage as Mr. Bur
rows , and the director's otliciul report
shows that not a single silver
dollar was coined between the years 1805
and 1830 , but that thorn were coined in
half dollars $38,452,31)3 ) ; in quarters ,
$729,337.75 ; in dimes , $922,409.4) ) : in half
dimes , $511,38-3.
Mr. B. g.iys that in IS'U ! 3,000,100 stand
ard silver dollars were coined.
Director Leech reports onlv 1,000
'
standard silver dollars coined in'l63U.
To recapitulate all the lictillous fig
ures vouched for by Mr. Burrows us ex
act facts would exceed my allotted
suiice. Hulllcit to buy that ho has
massed all his little tornadoes into ono
grand cyclone of inexactness when ho
assorts that the total coinage o ( silver
dollars from 171)2 ) to life } was$147,599,897.
According to the unimpeachable au
thority ot Director H5cch of the United
States mint and sovo'Hu of his predeces
sors the coinage of Mtyor dollars for the
eighty years was only , a fraction over
$8,000,000 , or InroUml liumbors $139,000-
000 below Mr. B.'s cyplpnle computation.
I am not up to Mri , Burrows in hocus
pocus omnibus Lath ) , but in plain Anglo-
Sivxon I repeat baclirrfalso in one , false
In nil !
The whole fabric of fnlso deductions ,
on which Mr. Burrows' hasos his argu
ments relating to silver coinage , which
prove not to bo fact * ? fftlls to the ground
with hia facts. <
I am amazed that a in tin of Mr. Bur
rows' penetration should bo led into
such Inexcusable blunders. The llgurcs
1 have ritcil have boon time and again
quoted In both houses of congress and
no free coinage advocate hns over before
dared to call tholr accuracy In question.
Inasmuch as this is a friendly discus
sion of nn important economic issue I
entertain no doubt but that Mr. Bur
rows will do mo justice by a manly and
frank admission that my historical
statement concerning the coinage of
standard silver dollars is correct.
Mr. lliirrnw's Kt > | tly.
The question of the volume of money
( see Mr. IVs llrst paragraph ) is the vital
question at issuo. But not "regardless
of its exchange value or purchasing
power. " Its volume determines its ex
change value. If this were not BO Shylock -
lock would never have conspired to do-
monolizo silver , and thereby halve its
voluuio and double Its purchasing power.
My supposition as to making our dollars
of half their present weight was a moro
illustration. Mr. It has chosen to reply
to It ns tin argument As 1 used the
illustration it is correct.
In paragraph second Mr. R. attacks
the interest problem , and shows an entire -
tire misunderstanding of the principles
which control it. IIo says "a largo
volume of money always begets increased
speculation. " This is ono of those
common assertions that will not bear
investigation. A largo voluino of money
Increases till legitimate business enter
prises. There is always a certain pro
portion of men who prefer speculation.
In prosperous times this proportion is
fairly maintained. But in times of de
pression , like the present , the proportion
tion of speculators is much greater than
in tlmos of prosperity. In stringent
times legitimate business languishes ,
money accumulates at financial centers ,
and seeks speculative enterprises where
rewards may bo largo and time of in
vestment short. In such times , also ,
interest on long-time loans is nominally
low , while on short-time loans it is ab
normally high. That is exactly the sit
uation nt the present time nnu for so inn
time past. The past ton years has boon
peculiarly a speculative decado. I sup
pose there has novel * before boon a decade -
cado when there was so much specula
tion in proportion tp legitimate trade.
Nor has there over "been a decade when
the burden of interest was so groat. In
terest , ns well as qU. debts , is paid in
products. . The price of products deter
mines the burden- : interest. With
wheat ' X 50 cents a bushel it takes just
twice * much to priy a given sum of in
terest as it docs at $1 rt bushel , though
the nominal rato'of'of interest in each
case is the same. Ag.a matter of fact
the 10 and 12 per cent interest in Mr.
R.'s first period was lower and loss of a
burden than the 6 and , 7 per cent at the
present timo. Ono-.lias only to consult
the prices current , in the two terms to
bo convinced of this fa'ct The men who
were borrowers tKeil and are now will
know this to bo.tru'e , , * ' *
Mr. R. says tHe fixed income class ,
"if this moans the bondholders , were
much hotter off when gold was at a high
premium and paper money was super
abundant" If that is true they did not
know when thjy were well off , and made
some gross mistakes. The bondholders
hastened by the credit strengthening
act to change the terms of payment of
$1,500,000,000 of United States bonds
from lawful money to coin they
hastened to destroy the lawful money
and como to a specie basis they hastened
for the very purpose of diminishing
the voluino of money , to uomonotizo sil
ver at n time when the bonded debt of
the world was the greatest at any period
of its history. They showed that they
preferred to double the purchasing power
of money and diminish the nominal rule
of interest one-half. And if Mr. R. will
recall his forgotten Dabold ho will dis
cover that they wore very right. In
doubling the purchasing power of money
they doubled the value of their princi
pal , while if the rate of interest was only
half what it was before its purchasing
power was not lessened. If this is true
Mr. IJ.'s assertion that "tho bo idholdord
have suffered a greater shrinkage of
their incomes during the past twenty
years than would have paid the national
debt" is simply -absurd. And facts
prove that it is as absurd practically
as it is in theory. The enormous con
centration of wealth in the past twenty
years is well known. Who has
got it ? All the ligures lately
compiled show that the fixed-income-
class has got it. They have got it be
cause the people's debts remained pay
able in dollars , unsealed , while the pur
chasing power of dollars and the accu
mulative power of interest were doubled.
The facts are so plain that I doom argu
ment suporllous.
But when Mr. R. attempts to define
the debtor class ho caps the climax of
absurdity , and shows a beclouded mental
condition that is amazing , ( See para
graphs U and 4. ) IIo 1ms strangely
omitted the national bunkers from his
list of poor debtors. The creditor or
fixed-income class is that class which
derives its income from rents and inter
est in their different forms , in monoy.
That tills class may ewe bonds inukus
no dilToronco , In the case of the rail
roads those bonds are never Intended to
be paid. This interest is an expanse
account , of the s\\\f\n \ \ \ \ nature as oper
ating or repair accounts , These cor
porations have "bpphistnrcd their pos
sessions witli morfeVgos" HO that they
'
can moro ootivonjo'nily and secretly
'
bring to bear ag.a'i'ist | the people the
over-working , all-absorbing , silent , om
nipotent power of jiktornst. They have
plastered them will ! mortgages repre
senting fictitious investments to conceal
the enormous rotuj'h's ' they receive on
capital actually invested. If the debt of
the Pacific road isot'or paid it will be
paid in monov ear/lV.d / by the people.
And is it not bottor'tliat they should ob
tain that money in fair prices for their
product * , such nsH ioy would receive
under the double yt'hjhdard , rather than
in production at .sl . yatioh prices , as at
present ?
The c.hooldobt thing connected with
this silver controversy is found in the
accusation that the fret ) coinage men
wish to scale their obligations and pay
their dent Undepreciated dollars. Every
man at all posted on the question
knows that the money power of this
country and the world performed on
two occasions the most gig.intio job of
scaling the world hiw 'over soon first
when it changed the standard of pay
ment of fifteen hundred millions of bonds ,
second when itrdctnonotlzua silver. It
doubled the value of every dollar and
doubled the "burden of every debt by
those acts. Wo Hover hud a depreciated
silver dollar until cougrutu , at the bid-
dim. of that power. uuiii'Mieti/.cd silver.
Wo would nave a depreciated gold
dollar today if the same moans were
used to depreciate it , and wo will
have no nioro depreciated silver
as soon as silver Is restored to frco and
unlimited coinage.
In connection with his sympathy with
the railroads , whisky trusts , etc. ,
who Mr. Roscwntoi * 'fears will bo
compelled to pay tholr debts in cheap
money , ho associates the poor working
people who are depositors in savings
banks. While the savings account of
Jhoso banks aggregate a largo sum , by
the usual method of swelling deposit
accounts , the amount of actual savings
so deposited is many times los's. Nor
is this money to any great extent de
pended upon for revenue. Only that
part ot It which is deposited on time
draws any interest at all. As for the
welfare of the working pcoplo , all men
know that in times of so-called cheap
money , that is in times of active busi
ness and prosperity , these pcoplo are
all employed al good wages ; while in
times of dear mortoy , like the present ,
many are idle or on short tltno , and
there is much suffering and adversity.
This is a well known fact. They are
crockodllo tears that deplore the cntas-
tropho of paying depositors in any
motioy that is legal tontW.
Mr. Rosewater assorts ( paragraph 17) )
that the reason "tho 73-cont silver dollar
lar and the valueless paper dollar pass
current is because they are redeemable
for 100 cents in gold , " etc. As a matter
of fact the silver dollar and the silver
certificates are legal tender for all debts
public and private , "except whom
otherwise stipulated in the contract. "
In the absence of a special contract sil
ver will liquidate any obligation , the
same as gold. Place it on the same
basis as gold and it will perform exactly
the same functions , as it did from 1792
to 1873 , The reiteration of the idea
that foreign countries would mnko this a
dumping ground for silver , and so bring
us a silver basis by taking our gold , is
baseless. There is not the slightest
danger of any ilood'of silvor. Our own
production is not sulllcient for our In
creased money rcqutromnnt , ami there
is no country in the world that has
silver to spare us. India's import of
silver from 181(1 ( to 1873 was $ a'2,809,000 ! ,
or about six times our total production
for the same period. India's import
for 1889 was $53,029,000 , while our
production for that year was only
$01,610,000. There is no possibility of
our getting moro silver than wo need
for monetary purposes ; mid if wo would
treat silver as real money , as four-fifths
of the civilized world does today , there
would bo no such thing ns cheap silvor.
Instead of refuting or answering the
historical statement I quoted from Mr.
St. John as tothoacliiovemontof Franco
in maintaining a parity of gold and silver
vor , Mr. Rosewater shoots off on a tan
gent about French assignats.
The assignats were simply promises to
pay money which had no existence ,
promises issued in unlimited quantity
to pay coin money which was to bo
derived from the "revenues of confis
cated estates , the titles of which were
in dispute , and which were producing
no revenue. The assignats were all "in
the air , " and to ring the changes on
their history as an argument in favor of
a single gold standard shows a deplor
able lack of good material. But I wish
to say right hero that this discussion has
nothing whatever to do with paper
money in any of its forms. It relates
wholly to the expediency of restoring
silver to a parity with srold in the United
States , and the history of the French
assignats has no bearing upon it what-
ovor. I therefore decline to burden the
discussion with it. I admit that the
ratio of commercial value of the precious
metals may change , either from relative
scarcity of either of the metals or from
unjust legislation. I admit also that if
either metal is undervalued in relation
to the other in coinage it tends to dis
appear from circulation. These arc
good and sulllcient reasons for a scien
tific adjustment of ratio , which has fre
quently taken place in the world's his
tory , and a careful adjustment of rela
tive values in coinage. But they are
not valid reasons for tin-owing ono inotal
out of use as money and thereby concen
trating the world's wealth in the hands
of the money class , as is attempted.
Mr. Rosewater again asserts that Ger
many demonetized silver in 1871. ( See
par. 27. ) I repeat that Germany did not
demonetize silver until July 0 , 1873 ,
nearly six months after the United States
had done so. Let the United States re-
monotizd silver and Germany would he
the first country to follow her example.
Mr. Rosewater has appealed several
times to the Grcsham law , and at the
same time denounced the silver dollar
as a 73-cent dollar , and the paper dollar
as worthless , The Gresliohilaw is little
understood. Mr. R , broadly states it as
a principle that bad money drives out
good. If that is true wo have no bad
money in this country , and Mr. R's. ' 73-
cent dollar" vanishes into thin air. In
daily experience the United States now
circulates as equally full legal tender
money the coin and paper issued under
the acts of 1878 mid 1890 , silver
$400,000,000 , and , according to mint osti.
mates , about $700,000,000 of gold. Be
side ? these are $340,000,000 greenbacks
and $120,000,000 bank notes ; tboso both
redeemable at treasury option , or bank
option , in either gold or silver coin. In
silvor. gold or paper each and ovorv ono
of all thobe $1,030,000,000 is a sfngle ; ,
standard dollar of 100 cents or 1,000
mills , circulating sldo by side at par all
with each. 1 will thank Mr. Rosewater
to indicate where the Groslmm lnor
the driving out process comes in.
A radical difference in the under
standing of certain oDIclal reports has
arisen between Mr. Rosewater and my
self , 1 will say Unit the reports on their
face are absolutely contradictory. Mr.
R , claims that the report of the secre
tary of the treasury is a mistake aris
ing from its facts not being sulllciontly
subdivided. I have before mo the oflicinl
statistical abstract of the Treasury do-
partmontfor the years ' 87 , ' 88 and ' 00.
The facts as to silver coinage in all
these volumes are oxautly as I stated
last week. Mr. Kosowater produces n
single report of the director , Unit for
1891. and I am frank to sny that that
report apparently confirms his position.
do claims that the amount coined- was
correct in its sum total , but that it was
not in dollars , but in minor coins , most
ly halfs. Now up to 1857 , I think , the
coin woigh.t of the halfs rjxnctiy cor
responded with that of the dollars
that is two luilfs wort ) exactly equal
to ono dollar. Tills being the case the
secretary's report und my quotation of
it is practically correct. Whether in
dollars or halfs , it is undeniable
that silver wont into our circulation to
the amount stated in my last article in
every year named , every dollar of which
was "a lawful tender for all payments
whatsoever. " Air. Roscwator was easily
misled by the director's official report ,
and I am willing frankly to exonerate
him from any attempt to misrepresent
in the matter. Ills fault lies in not
knowing the Important fact that I have
staled as to the weight of the halfi ,
and in trusting too implicitly a subordi
nate olllcor who was probably a creature
of Wall street.
But this is a matter of no importance.
And 1 rwgrot to sav that this disc.usnion
hns involved mostly side issues , and had
little to do with the real question. I
propose briefly to refer to some of the
real points of the controversy.
First Silver is today prnctlcallv the
money of the world. The population
of the silver standard countries is , in
round numbers , 770COOCOO ; of the
double standard countrleH 137,000,000 ;
of the gold standard countries 93,000,000.
Even those countries which demonetized
silver retain in use the coinage they
had , and maintain a minor coinage of
that metal , Europe hns 31,100,000,000
in silver coin , of which Franco owns
9700,000,000. Nor could these countries
soaro this silvor. They are already dc-
llclont , and desire moro.
Second. The combined annual pro
duction of both silver and gold Is In-
sulllclont for the annual Increased de
mand of the world for monoy. The
actual money in the United States , and
the bank credits bug oil on deposits , show
the amount actually needed to transact
the business of the country. This
amount is $1,128,000,000. In the United
KiiiL'dom It is$3,800,000,000. In Franco it
Is $2,550,000,000. This is credit money
panic money , out of the use for which
the bankers are laying by millions. It
Is money that shrinks with every adverse -
verso wind that disappears -vith every
financial shock. It is the money of a
system that brings periodical panics and
bankruptcy to thousands every year.
Bui U Is Indispensable today to the busi
ness of the nations. Withdraw it and
widespread disaster is inevitable. It is
built in the United States on the small
basis of $700,000,000 of gold , and the
supply of gold is diminishing and
population and business increasing.
There have boon no moro gold
and silver produced since 1850 than
were required for monetary pur
poses. From 1810 to 1850 the annual
supply of both metals did not exceed
$10,000,000. When California gold was
discovered there was a sudden increase ,
and then Australia increased the output
to about $190,000.000. The disaster then
predicted , and which induced Germany
to demonetize gold , never camo. In
faot the added supply was a blessing in
stead of a calamity. From that time
the combined product has gradually in
creased , until the annual supply is
about $250,000,000. But the Increase
has not boon as great as the Increase of
population , consequently not suffici
ent for the increased demand for money ,
und the rejection of silver has practi
cally cut off the supply of the precious
metals for money , and inaugurated a
money famine which has tilled the world
with woo. And this has boon done to
gratify the avarice of speculators and
the greed of heartless Shvlocks.
Third. The demonetization of silver
has caused incalculable loss to the people
plo of this country , I give the following
table showing the immense increase of
the public debt of the United States in
commodities from the year 18(17 ( to 1880 ,
notwithstanding the great nominal or
fuco vivluu decrease :
1SII7
I'ublluilebt I trii8,127.fl.TSU.w. : ( | . -
I IIW87I .W.'S
1 Kqulvnl't In Commodities
The corn crop of 188 ! ) exceeded that
of 1888 by over 125,000,000 bushels , and
sold for $70,500,000 loss money. The
wheat crop of ' 8 ! ) was greater than that
of ' 88 by 7-1,000,000 bushels and sold for
$412,700,000 less money. The outs crop
was greater In ' 89 than in ' 88 by 49,700-
000 bushels , and sold for $23,600,000 loss
monoy.
The loss to the farmers of the United
States for the eighteen years since silver
vor was domonoti/cd , caused by that in
famous national crime , has not boon less
than $1,000,000,000 per year , or $18-
000,000,000. And as n logical
consequence the farmers of this nation
are $18,000,000,000 in debt. Their
industrial proportion of the nation's
debt is undoubtedly that much.
There has been since 187o" n wiclo-
sp' ' cad depression in prices and a world
wide shrinkage in industries. Find , tno
tlio cause , Mn R. , if you can. Is it
overproduction , speculation , action and
reaction , intemperance , licentiousness ,
extravagance , waste of wars ? No , it ia
none of these. It is the direct result of
the discaso th.it attacked us in 187 ! ! , in
the ill-advised attempt to discard the
use of silver as a full legal tender
monoy.
Wo'are an exporting nation , yet wo
adopted a financial policy directly cal
culated to depress the value of our ox-
ports.
We are a debtor nation , and yet wo
adopted ; a financial policy designed to
compel us to sell tlm maximum amount of
products to pay the minimum amount of
debt.
debt.Wo
Wo are a silver-producing nation , and
yet wo adopt a financial policy intended
to depress the nrico of silver in the
markets of the world.
As n nation we have deliberately
adonted a policy that would have caused
any business man to bo put into a
strait jacket or under n gur.rdinn.
Our greatest competitor in tlio mar
kets of the world , as well ns the best
customer for our products , is England a
creditor nation. We deliberately adopt
ed a financial policy that would make
our trade and our experts of the great
est value to our competitor and of the
least value to ourselves.
For twenty years have values been
shrinking , failures multiplying , suicides
and insanity Increasing.
For nearly twenty years have the
lines between classes become moro
sharply drawn for nearly twenty years
has the base , idiotic aristocracy of
wealth been erecting Itshra/.en images
for ne.irly twenty years has been go
ing on increasing poverty amid un
paralleled production , and a concen
tration of wealth through the agency
of interest and increased purchasing
power of money , greater than was over
before known in the ancient or modern
world. If there is any cause powerful
enough to produce those dire results
other than the one I have named , I ap
peal to Mr. Rosewater to show it.
Fourth. Money , under our present so
cial system , is the basis of civilization.
It lays the stool muscles and stretched the
wire nerves of commerce over all the
countries of tlio world. It tunnels
mountains , spans rivers , and drives
ocean greyhounds into every known
sea. Its possession moans health , plenty ,
luxury , leisure , culluro all , in short ,
that go to make life endurable and
happy.
Want of it means penury , eulToring ,
ignorance , despair.
For thousands of years silver and gold
have boon jointly , money over all the
world , and sinuo iho prohistorlo ages
there bus never been a dav when theru
Hani to ntxil
low the ( jroat ,
griping old-fash
ioned pill ; and
that's not the
hardest part of
I it , either. Your
i troubles are only
beginning wbnn
you get it down.
It's all non-
Kensa. You aw
get moro good ,
and without hav-
Inc to BUfferfor it , with Dr , Pierco'H I'lpoiunt
Pellets. Not merely temporary good , bub
boln that lasts. In a perfectly easy nml nat
ural way they rloonso end regulate the whole
BYeteru , and keep It roguUUal , Hick and.
Bilious Hcudachn , Constitution , Indlgeatlon ,
BlUnuB Attacks , and all derangement * of tlm
liver , etomach ami bowel * arc promptly n > -
UevoJ and pennaiionlly cured.
Thuy'ro tlio original Liver Pills , the small
est , eashat und beet to take and thoy'ro the
cheapest , for thoy'ro guaranteed giva
antkfaction , or your money li returned.
You pny only for the good you eU Thia
is trun only fit Dr , i'lercu'a niedlumca.
A jicrfii-t TcfcHw.kct remedy , In mmll
* , autl ouly one ucxxtiary for a
was a aufllclont amount of metal monoy.
The rise and decline of civilization from
the dawn of history hns boon equal
with the rise and dcollno of the supply
of metallic money. In the palmy
Augustan dnvs Homo possessed 12,000-
000,000 of gold and silver coin , besides
her stores of plate which could bo trans
muted into coin. Hut ns minus were ex
hausted and metallic money gradually
disappeared , until the stock was reduced
to loss than 200,000,000 , the pall of the
dark ngos spread Its gloom over the
world. Civilization fluttered an eclipse ,
and Its revival waltod for the discovery
of gold nnu silver in Mexico and South
America ,
The vandal hand that has stricken
down ono of these metals has boon an I *
mtifcd alouo by the spirit of grood. The
men who have aimed the blow have
been Ignorant of tlio lessons of history
and earoloss of Ha results to mankind. I
appeal to every patriotic American
clli/on to aid in averting these results
and in establishing an American system
of IInanco that shall bo , in the woVdt < of
Hon. Wlllhm M. Stewart , "Independent
ot London speculators In Asiatic products
or European investors in American se
curities. "
MILK CRUST ON BABY
Kppt sproiidlnir until his fae.i wai a raw
sore. He scratched natil blond ran.
He-it physicians sahl iri cure while trnth-
inir. IIoUH cured promptly by
C.itlnir.i.
rur two years IIKII , our 1107 , tlion Ic'-i
than ono jrpnr oM. nn.i Iruiililcnl with mi eruption
on hU lioail , iirnnounctMl \ our bo-t pltf-lclnni to
ho n cnBo of "tnttlc cruat or Infiintlto wet'ina. "
Thor nl n snld Unit It woulil bo liiipovllilu to rur
It until nftpr helm I llnl.iheil lin'tlilnx. Thl < mnlnili
kept NproiidliiK until Ills fnro MTIU n raw -DTP , aiitl
ovorr four iluyi lie noiilil ilriiw lil < llniior nnlli down
on both clipeki.roiimvltiK tli'j ' > cnb , imil lh bli > oil
rnmilni ; down on lit * cliln mndn him prn-ent s
utmMIr slulit. Woeoninionrpil inlnif tlio I'frici'aA
ItKMlDIKt , aim In tno wouki wn r.ollrcit .1 womli'r-
fill IniproTomunt , ntnl In tire niunlhi lilt fuco win
f rosliaiul fair , niul lun bpuii iiarfcntl' well over alnca
Wo uiiboslltlimly ulvo nil ore lit to Uc ricriiA.
lII. . Wll.UAMH , Kurt lloilKO , lo.ra ,
Scaly Humor Yf years
I vrnsuflllctpil for Qventticn o.irH with a ttu.ily ,
nncl blolcby humor over iujruntlrw liro.t't. At lime *
I would serntuli till siirrum compi-lli'il mo to rcin- : ,
Alter remllni : your nilvertliiMitontH nl illlTeicut
Unit1' . I concluded lu Klve Cl'THTli.v n trial. nml to
my aMonl-tunent as w U as Hatlsfac'tluu. 1 wu *
curuil wllli olio i i of Ctmri'itA KKMiiiii. : : lu
about two itnil a half weeks. Tlmt Imi been lumtjr
t ro yearn alnoo , mid no symptoms of return
.lACOII STOKCKI.K ,
WHO I'alm Street , St. Louis , Mo.
Cuticura Resolvent
thn nuw Uloud and Skin I'urltler , Intcrnully , n.i 1
CL'Tlci'HJMb.uKri'nt ' Skin Cure , and Cl'TUT'ilA SOAI- ,
the otiiulMte HUn llenutlllur. nxterniilly. Instantly
relieve ntirt spinml y euro every disease nnd humor of
the skin. 5 < : : ilp and blood , with lots of hair , from
Infancy to ago , from pimples to scrutuln.
Sold every wlioro. Price , OiTTic.uuA.r > OuSiAP.
ii'io : HK OI.VKXT , $1. Prepared by tlio L'orruii
UltUG & CUKMICAI. COIII'OKATION , UoHlOll.
? W ° "IIow to t'uroHklii Dlscasus , " 01 IKIUHS
r > 0 Illustrations and 10J testimonials , mailed
frcp.
I'I'Kf , Made heads , rod , rouxh. chuppod
aiulully slcui cured by OUTICUIIA SOAi1.
HOW MY BACACHESr
ck Ac'lte. Kidney I'alns , und Wenkojii
SoruneIiiimuness , Strain * , und I'nln
rollovilln ; ono mlnuto by the Ul'TICUUA.
ANIM'AI.N 1'I.ASTBII.
La Duo's Periodical Pilli
The Fronoh roniody uots directly upon the
generative organsnuil onroi suppression ot tlm
menses. fcor ! three for IS , und oa.ii bo mailed.
Shouldnnl bo usoddiirln3ra'natiuy. | ) .lobbari.
driiKKlstsandtho uubllo supullad by Uoodmna
Drug Do. . Omaha
I WHY DO YOU CWH ? !
Do yon It 110AV Hint a little VongUS
Is a duiicoroun thing f :
I DOCTOR V
Will Stop a Cough at any time :
and Cure tbo worst Cold in ;
; twelve boors. A 25 Cent bottle ;
! may save you $100 in Doctor's :
I bills-may save your life. ASK
YOUBDJailGGISTFORIT. ;
IT TA-STJES < 3OOJ > .
I Dr. Acker's English Pills ;
Z CURB INDIGESTION. I
Hmnll , plonsant , a favorite with tlio ladlr * . :
W. II. I1OOICE11 ti. CO , (0 Wt-et Broadway , K. Y. :
! § ' § ! !
For sale by Kulin & Co. , and Sherman
& McConnell , Omaha.
f ; < > ii' > rJnn > n , filreTiiiul I onii-f r/inn
uiirod In 3 il.-iys by the Kronuli Hainudy onllt-
led the KINO It dissolves niinlr.st : iinl-l.i l > -
aorbod Intotlio I rill a mod pints. Will rnfimJ
money Ifit douj not euro , or cairns Htrluturo
tientlomon , lioro U a rnllablo iirttulu. $1
paoUiiRo. or 2 forii per moll urou.ild. HoOor-
mlck ic Lund , Omaha.
LEAVES A DELICATE AND LASTING ODOR.
An Ideal Complexion Soap.
rorsnloby olir.riiif n'1 KnnoydnodfinculOfiMirlf
llrmhlo to procure thin Wnmlri-nil Haun Httnit Kfi
vent * In utampa unit recelTo a cakobjr return mull.
JAS. S. KIRK & CO. , Chicago.
NIM'.rTAT.-SlinnrtnnllPlln Wiiltz ( tlm populai
rVx-lctj WnttzlsKTit PICRI * to iinrono lumllwf ill
three wrapper" of BUnn < lon Hull * Uoup.
GOLD , 1878 ,
W. BAKER &Co.'s
Cocoa
from which tlio ezceM ot
oil lias boon romoTod , It
Absolutely Pura
and it is Soluble.
No Chemicals
are used in its preparation. It hns
wore than three time * tie strength of
Cocoa mixed with Starch , Arrowroot
or Sugar , and ia therefore far nioro
economical , coitiuy less than one cent
u cup , It ia delicious , nourishing ,
strengthening , KASU.Y DIGESTED ,
and admirably adapted for Invullclu
aa well as for persona in health.
Sold by Grocers ovorywhoro.
W. BAKER & CO. , Dorchester , Mast
