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| Bryan-Sewall campaign poster. |
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| McKinley-Hobart campaign poster. |
Cortland
Evening Standard, Tuesday, September 29, 1896.
PAGE TWO—EDITORIALS.
What is the Matter with our Currency?
To the Editor of the STANDARD:
SIR—What is the matter with our currency? The silverites say: "It buys too much, its value is too great," and
therefore they favor its debasement.
This is a strange objection, that the money
of the country is too valuable, too good, too expensive, that it buys too much
and costs the producer too much of his products, and therefore should be
debased and depreciated.
Stripped of all disguises, the objection is
that some people have money, while others have little or none—wherefore those
who have should be made equal with those who have not. If the value of money can
be reduced one-half, the Populists
assume that the wealth of owners of money will be diminished one-half, and by
this means that the power and influence of the owners of money will be
correspondingly diminished.
This is undoubtedly true as to the owners of
all kinds of money except gold or its representatives, i. e., contracts,
promises to pay and securities payable in gold. But no legislative enactment,
no human agency, can detract the least fraction of value from gold, the value
of which is fixed by supply and demand in the markets of the world.
All the gold in the country has already been
acquired, retired and hoarded by those whose wealth it was sought to diminish
by the proposed debasement and depreciation of the currency. The only injury
which can now be inflicted on this class of persons is that which they must
suffer, in common with all others, in the derangement of credit, the
destruction of confidence and the consequent injury to business, which has
already amounted to billions of dollars as a result of silver legislation and
agitation. No injury can be inflicted on any class without injuring all and,
worst of all, employers, whose employees are indirectly interested in their
prosperity and security.
How came gold to go out of circulation? The
fear that the currency was to be debased caused it to disappear from
circulation. A bill for the free and unlimited coinage of legal tender silver
was introduced into congress in 1878, which was amended, debated at length, and
resulted in a compromise known as the "Bland-Allison act; whereby the
government was required to purchase the silver and coin not less than
$2,500,000, nor more than $4,000,000 in silver dollars per month. Under this
act $398,000,000 in silver dollars, besides $76,977,002 in fractional silver
currency have been coined, at the instance and for the benefit of the owners of
silver mines, and under the stress of
substantial coercion; because senators and representatives, acting under
the influence of mine owners, refused to vote for or uphold the protectionist
policy of the Republican party in congress unless legislation were
simultaneously enacted which would provide a market for the product of American
silver mines, which these senators and representatives contended would cause the
price of silver to advance in the markets of the world to a par with gold, at
the ratio of 16 to 1, i. e., to $1.29 per oz.
Under the influence of this legislation the
price of silver did advance, temporarily. It created a boom, which enabled the
holders of silver who had bought it with a view of speculation to sell silver
at an advanced price and pocket great profits; but the great stock on hand, and
the great impetus given to silver mining, threw such enormous quantities of
silver upon the market as to break it, and the price promptly fell to a lower
figure than it had ever attained before; and notwithstanding the government
continued to purchase and coin not less than two and a half-million dollars per
month, the price of silver sank from low to lower still, and the contention of
the advocates of the passage of this law, namely, that the coinage of two and a
half millions of silver dollars per month by the United States would consume
the product of American mines and raise the price of silver to $1.29 per ounce
in gold, proved to be entirely erroneous and misleading.
When the McKinley bill was pending in
congress in 1890, another bill for the free and unlimited coinage of legal
tender silver dollars was introduced, the advocates of which refused to support
the McKinley bill and threatened to defeat it unless their free silver bill was
also passed, and they demonstrated that they controlled votes sufficient for
that purpose.
This, again, resulted in a compromise,
called the "Sherman law," whereby the United States government was
required to purchase $4,500,000 ounces of silver bullion per month, to be
deposited in the United States treasury, to be paid for in silver certificates.
Under this law 140,699,760 ounces of fine silver were purchased and $155,931,002
in legal tender silver certificates were issued by the government. Again it was
contended that this law provided for the consumption of the product of American
silver mines, and that the price of silver would advance to $1.29 per ounce or
more. This produced a boom, the speculators, in whose interest the law was
passed, sold silver. The stock on hand proved too much for the market, and it
fell lower and lower still.
The market price of silver continued to
decline. Bankers and financiers took alarm at the excessive proportion of
silver and paper money thus issued by the government, as compared with gold. In
view of the great and continuing decline of silver, they reasoned that the
government would soon be compelled to pay its obligations and redeem its legal
tender notes in silver, which would place all our currency on a silver basis,
worth only what the silver it was redeemable in would bring in weight as
bullion in the markets of the world, i.e., in London.
As these silver certificates and silver
dollars and greenbacks were a legal tender, the millions the bankers had loaned
to business men might in that event be paid in sliver or silver certificates.
If they waited until the government should elect to redeem them in silver,
because of its inability to redeem in gold, they would be compelled to receive
their pay in silver dollars or their paper representatives, worth 53 cents.
Therefore, like sagacious men, they suddenly called in their loans and made
everybody pay who could pay, forced debtors to sacrifice their property to
realize the means wherewith to pay, and produced the panic of 1893 at a loss of
billions of dollars to the country, by which employers and employees have been
the greatest sufferers and all classes have shared in the consequent losses and
depression of business.
The panic thus produced led to an extra
session of congress in 1893, called to repeal the "Sherman law" which
had caused such mischief. The prolonged struggle over its repeal, the inflammatory
speeches of the silver senators, the organization of the Bimetallic league—with
the avowed purpose of making the unlimited free coinage of legal tender silver
at the ratio of 16 to 1 without the concurrence of other nations, the
predominant issue in the presidential election of 1896—and the aggressive and
irrational agitation of the subject, together with the dangerous sectionalism
and class prejudice and hatred engendered, have counteracted and prevented the
salutary results anticipated from the repeal of the "Sherman law," have
added fuel to the flames already kindled and rendered bad worse, until public
confidence, which is the foundation of all credit and the basis of all
prosperous business, is nearly, if not entirely, destroyed.
Like the wolf who roiled the stream as a
pretext for slaying the lamb, these silver agitators blame our currency,
redeemable in gold, for the destruction produced by themselves.
Of the misguided dupes who have ignorantly
participated in the devastation of their country's prosperity, we can only say,
as did the crucified Savior, "Father, forgive them, for they know not what
they do." But there are a class of miscreants represented by the
Bimetallic league who deserve the scourge. These are those who have held up
legislation in congress to boom silver for speculative purposes to line their
coffers with ill-gotten gain. They expect to profit by the election of Bryan
and the boom that silver will thereby temporarily receive, when they will
unload the immense accumulation of silver acquired at a very low price for an
enormously inflated price, as a result of the boom of silver. Glutting the
market will again depress the price of silver below its real value, when these
speculators will buy silver again, and thus fleece the lambs going and
returning.
The price of silver cannot be permanently
enhanced by legislation, or by anything but supply and demand. The mine owners,
who would sell silver during the boom to be created by the election of Bryan,
would derive a temporary, but not a permanent, benefit. A rascally gang of
speculators, some of whom are United States senators, would alone profit at the
expense of all other classes.
The deluded farmer may think that he, too,
has profited when he counts the dollars he has received for his crop. But when
the farmer finds they are worth only half as much as the dollar of gold and
tradesman have marked up their goods to twice their former price; that the
banker charges him the same interest for the loan of the debased fifty-cent
dollar that he formerly paid for the loan of a hundred-cent dollar; and when
the laborer finds that his wages will only go half as far, or buy half as much,
with money based on silver as on gold; then will both farmer and laborer curse
the fatal stupidity which duped them into voting against their own and their country's
interest, for Bryan and Populism, in the interest of a nefarious gang of
speculators.
There is nothing the matter with our
currency. It is the same yesterday, today and to-morrow. It passes current in
all parts of the civilized world—or did until a political party in this country
threatened to debase the coin and repudiate half the value of the government's
promises to pay the holder of paper money. A sensible workingman wants the
opportunity to exchange his services for as much of this currency as possible.
The farmer, the manufacturer and the merchant want to exchange their products
and goods for as much as possible of the currency as it now is. It is not for
their interest to cheapen or debase it. The man who loans money wants to be
sure that the borrower will pay his loan in as good currency as he borrowed.
This will restore confidence and start business in motion, and this is what the
business man wants. He will then again become an employer, and this is what the
wage earner wants. The professional man will then receive the pay for his
services and will rejoice thereat, and everybody except the infamous
speculators who conspired to cheat all classes will be prosperous and happy.
We have shown that gold, the rich man's
money, cannot be debased, but that the poor man's money will be debased by the
proposed free coinage of silver. This is in obedience to a natural law as
potent and invariable as the law of natural selection or the survival of the
fittest.
History and human experience prove that when
two or more metals are coined without limitation or restriction, and are made a
legal tender in the payment of debts at a ratio which overvalues one of them,
the others are immediately excluded from circulation in the country authorizing
such coinage, the metal which is overvalued becoming at once a commodity,
exchangeable for coins of the cheaper metal at a premium.
One who has two or more coins of unequal value,
either of which will pay a debt, will invariably pay the debt with the least
valuable of these coins and retain the others; and where every one does this,
it results in hoarding and excluding the best from circulation. As only the
rich can afford to hoard money, the poorest money is therefore alone left for
the use of the poor. So the free and unlimited coinage of silver at the ratio
of 16 to 1 would make the debased silver currency the money of the working man
and of the poor, while the rich, who hoard and the crafty speculator would
retain all the gold.
It is
known that some supporters of Bryan and free silver have been hoarding gold,
and even investing it in British consols, with the avowed purpose either of
buying property at panic prices, buying silver to sell on the anticipated boom,
or selling gold at a premium. Those who knowingly connive to wreck business in
order to plunder the wreck are the worst of knaves; those who do it through
ignorance are dupes and fools.
This is not a case of the East against the
West and South, or of the rich against the poor, as the Populists and Popocrats
allege it to be, but it is a case of the gamblers and speculators against the
business men—under which latter term are included all who pursue any useful or
productive vocation and contribute to the general welfare.
Very truly yours,
IRVING H. PALMER.
[Mr.
Palmer was a prominent lawyer, ex-district attorney and former two-term mayor of Cortland—CC editor.]
VILLAGE
FATHERS
Are
Asked to Prohibit Peddling on the Streets of the Village.
The board of village trustees in regular session
last evening did little business of special importance. Trustees Glann and Wallace
were appointed a committee to look after the matter of the grade of Charles-st.
The following petition was received and placed on file:
To the Board of Trustees of the Village of
Cortland:
We, the undersigned, taxpayers and business
men residing in the village of Cortland,
N. Y., respectfully show that we are engaged in diverse avenues of trade in
said village and pay large rents for places in which to do business.
That for the past year numerous persons have
been engaged in hawking and vending cheap wares upon the public streets of said
village.
That the persons so hawking and vending said
wares are not residents of Cortland, but are composed principally of persons
from distant counties, having no interest in common with your petitioners for
the welfare of said village and for the success of its citizens engaged in
business.
And being advised that your honorable body
have the power to pass an ordinance prohibiting such hawkers and venders from
peddling their wares in said village, as aforesaid, we respectfully but
earnestly request your body to enact an ordinance restraining such persons from
peddling and hawking, without paying a license therefor. Dated Cortland, N. Y.,
Aug. 3, 1896: F. H. Cobb & Co., C. F. Thompson, G. F. Beaudry, C. W.
Stoker, G. M. Hopkins, Clark & Angell, Price & Co., Harris &
Moore, H. L. Yates, O. F. Allen, J. O. Yates, H. B. Hubbard, E. F. Cotton,
J. F. McDonald, George E. Larrabee, Frost Bros., J. W. Brown, W. Watkins, Muncy
& Son, Jas. M. Churchill & Co., W. J. Nash, G. O. Whitcomb Co., D.
Delaney.
Trustee Warfield was appointed a committee
to procure the necessary lowering of the grade on Groton-ave. between Stevenson-st.
and Graham-ave.
The following bills were audited and ordered
paid out of the appropriation for 1896:
Board of Engineers, C. F. D., $100.00
Water Witch Steamer and Hose Co., 100.00
Orris Hose Co. 100.00
Emerald Hose Co., 175.00
Hitchcock Hose Co., 175.00
Protective Police, 100.00
Excelsior Hook and Ladder Co., 100.00
The meeting then adjourned until 7:30 this
evening, when it is expected the above petition will be considered.
BREVITIES.
—New advertisements to-day are—F. E. Brogden,
worm lozenges, page 7; I. Whiteson, opening, page 6.
—Hon. A. D. Wales of Binghamton speaks in
Taylor hall to-night in the interests of Bryan and Sewall.
—The
executive committee of the Republican county committee held a meeting at the
headquarters this forenoon.
—The Normals defeated the Central school [baseball]
team at the fair grounds Saturday afternoon by the score of 32 to 0.
—It is said that Dr. Didama wished this
morning that Main-st. was paved, when he was picking himself from a mudhole
into which he had been thrown from his bicycle.
—The regular car service to the park will be
discontinued after Wednesday, Sept. 30.
Special arrangements can be made, however, for parties desiring to visit the
park after this time.
—About thirty-five couples enjoyed
themselves at the park at dancing last night. The music furnished by Valentine
Brothers of Rochester, two violins, harp and flute, was highly complimented by
all.
—We surrender our editorial space to-day to
a communication from ex-District Attorney Irving H. Palmer on "What is the
Matter with our Currency?" It is an able and vigorous presentation of
financial truths by a sound-money Democrat.
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