The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
(jforttjjmstfltwl
FIFTY-THIRD CONGRESS, FIRST SESSION.
Against tko Bill to Iteneat the Purchasing Clause or tlio
Sherman Act*
SPEECH
OF
H O N .
R I C H A R D
OF
C O K E ,
TEXAS,
IN THE SENATE OF THE UNITED STATES,
Friday,
September
4,1893.
The Senate having under consideration the bill (H. R. t) to repeal a p a r t of
an act approved July 14. 18$0, entitled "An act directing the purchase of
silver bullion and the issue of T r e a s u r y notes thereon, and for other purposes "—
Mr. COKE said:
Mr. PRESIDENT: T h e message pf President Cleveland on tho
financial condition of tho country is in effect a cle.ir, unambiguous, and urgent recommendation of such legislation by Congress
as will establish and maintain the singlo gold standard as tho
basis of our financial system, discarding silver except in a limited
amount and as a subsidiary coinage, w i t h characteristic boldness and directness, this utterance of tho President sharply and
forcefully presents the issue between gold monometallism and
the bimetallic currency of tho Constitution and tho Democratic
platform, championing tho former in terms about which there
can be neither mistake nor misconception.
This country can not afford to be hold in suspense over such an
issue thus presented. Tho highest public interest demands its
determination and settlement; and t h a t it can be settled finally
and conclusively, and ponce and rest, prosperity and stability
restored to the business und commerce of the country only by
t h e establishment of a bimetallic currency as it existed prior to
1873, when silver was demonetized, the temper of tho country
based on a maturely formed judgment abundantly shows. A decision falling short of this consummation will not be a settlement, nor will it be a postponement of the contest. T h e agitation, unrest, discontent, and demoralization will continue to
vex and harass the country and disturb and unsettle business.
Tho people will never *bo content, until the wrong of 1873,
through which one*half of the money of this country was stamped
out in order to double the purchasing power of the other half,
has been undone and reversed. Since the demonetization of silver in this country, prosperity, which until that time blessed the
agricultural people of the South and West, has departed, and
their labors have met the poorest recompense they have ever
known. They have in large part fed and clothed the world,
and their exported products have maintained t h e balance of trade
with foreign countries in our favor, and have brought to our
Treasury the gold on which specie payments were resumed after
the civil war and have been maintained.
Nearly 80 per cent of the exports of this country have been of
agricultural products, while sliver, the g r e a t factor which produced and sustained remunerative prices in foreign and domestic markets, making our agricultural communities the most prosperous in the world, has been pursued with hostile legislation
until the American Congress has been brought face to face with
the proposition to perform the lust act which shall expunge from
the statute book all recognition of it as money. T h e great agriculture^ staples, cotton and wheat, have declined as silver has
gone down: and to-day silver bullion, degraded as i t has been,
will buy in tne marke'ts of the world as much or more of either
as i t did in 1873 before it was demonetized, thus showing conclusively, if proof were needed, that it is not silver which has fallen
in value, but gold which under the influence of legislation has
risen.
In tho striking down of silver in 1873, twenty long years ago,
the values of houses and lands, of cattle and horses, offlocksand
herds, of all t h e products of t h e farm throughout the South and
327
West wore likewise stricken down and have remained down ever
since. W h o can estimate the loss which has accrued to these
people in all these years from this cause, a loss almost fabulous
in amount, all inflicted upon tho great muss of tho people for the
purpose of onrlching inordinately a comparatively small number.
These things have been burned Into tho minds and memories of
tho people as they havo passed through tho fiery ordeal of adversity, and can never bo forgotten or forgiven.
Ilenco I repeat, Mr. President, if tho power of gold—of which
it has beon said that "' Philip of Mnccdon refuted by it all the wisdom of Athens,confoundod their statesmen, struck their orators
dumb, and at length argued them out of their liberties "—shall
again succeed,as it has heretofore done, in defeating the domand
of the American people for a full and complete restoration of
silver to free coinage and full money power, the financial question which now agitates* t h i s country will remain with us, and
this Congress will have done all in its power to perpetuate it: for
the peoplo will nover cease to resist the attempt to fasten upon
thorn gold monometallism with its inevitable consequence of
e l m nic money famine.
The constitutional right of our people to a gold and sitvor currency can not bo gainsaid or questioned. Gold and silver are
the money of the Constitution. The States are expressly prohibited to make any othor a legal tender in payment of debts.
To the National Government has baen granted the power " to
coin money, regulate the value thereof, aud of foreign coin;" in
other words, to create, from gold and silver bullion, coins of proscribed weight and fineness, and to st tmp their values and designations upon them. Tho power to give the legal-tender quality to any money other than this thus coined or to foreign coin,
the value of which has been regulated by Congress, has been
oxpressly prohibited to tho States.
The Constitution grants to the National Government the exclusive power to coin and declare the value of money, and reserves to the States, respectively, the absolute r i g h t to make gold
and silver coin, and prohibits them absolutely from making any
other monoy a legal tender. The power of tho National Government to coin money and the power of the States to make gold
and silver coin legal tender are correlative powers. The enjoyment by the States of tho rights reserved to them in this regard, the r i g h t to make gold and silver coin a legal tender, is
dependent upon the due performance by the National Government of its duty to coin these metals—not gold alone, but gold
and silver.
All the recognized rules of construction require that the clauses
of the Constitution be construed together, giving the National
Government the full measuro of power granted and the States
tho full measure of powor reserved, and imposing upon each the
corresponding duties in respect to the subject-m itter. If silver
Ciin be demonetized, so can gold. If either enn be demonetized,
on the same principle both may bo demonetized. It would bs no
more a violation of the Constitution to demonetize both gold and
silver, and thereby deprive the States of the power to invest
coins of these metals with the legal-tender quality, than it is to
deprive them of silver when t h e ConBtitution.reservesJto^them
the I'ight to both gold and silver.
Nor would the force of this argument be weakened if it be admitted t h a t the National Government can constitutionally make
other money than gold and silver coin a legal tender, for whatever power the National Government may possess in this regard
can not impair the absolute recognition in the Constitution of
the r i g h t of the States to make both gold and silver coin a tender;
and as long as t h a t r i g h t is recognized and the exclusive r i g h t
of the National Government to coin money for their use or t h a t
of the peoplo is admitted,so long of necessity must i t be the
duty of t h a t Government to coin both gold and silver. In other
words, the Constitution itself, in express terms, establishes bimetallism.
T h e alleged excessive production of silver is now t h e argument
of those who would destroy t h a t metal a s money, creating, as
they sny, a greater supply than the domand, resulting in its depreciation. I n 187H, when silver demonetization was consummated in the United States, we heard nothing of the staple argument of to-day against silver, that it is a cheap dollar, a 70-cent
or a 60-cent dollar, a dishonest dollar. Nothing of t h e sort was
said or could be said, because a silver dollar of 412i grains, ex-
CONGRESSIONAL EE COED.
2
actly the dollar wo htivo now, commanded a promium of 3 por
cent over wimtirt now utlled the standard gold dollar. Silver was
more valuable than gold, yot the bin Icon* n u l capit'disk* of Ku*
rojm and Amorjca engineered its demonetization with tho same
onmcstuc&i nnd
which now characterizes their opposition
\o its restoration to frcu coimtgo and full money power.
, Since tHT.'J, when silver was stripped of its legal-tender power
and of all its money functions, except that of ti subsidiary coinage. and relegated to thu Itatof commodities as bullion, It has
declined largely when compared with gold, say from to
p e r c e n t . Gold mouomotalusts, virtually abandoning their old
sophistries on which they pr&curcd the demonetization of silver
in J87."It have planted themselves on the depreciation of silver,
ascribing it to the increased production of that metal, ignoring
the fact that tho coined silver dollar, possessed of full legaltender power,tathe equal in purchasing power of gold.
Having shifted their ground, their European allies have como
to their aid in tho very nick of time, just beforo tho meeting of
this Congress called to act on this subject, by closing tho mints
of India to silver coinage except on government account. Aided
by tho most powerful forces that over combined in this country for the accomplishment of any purpose, tho great combined
money power of Europe ami A mericahopo and arc striving, by the
passage of tho bill now pending in tho Seriate, to expungo from
our statute boolc any recognition of .silver as money, and thereby
reduce the bullion value MO low in the markets of the world that
its competition with gold as a money metal will not bo feared
again.
Tho great argument now hoard against silver is overproduction. An examination of well-authenticated figures showing tho
product ion of gold and silver from tho year 149!l up toand inclusive of the year J8i*2 will puncture tho argument most effectively. I invito attention to Seuato Miscellaneous Document No.
17, Fifty-third Congress, llrst session, giving a statement of tho
production of gold and silver since tho discovery of America,
which I ask bo published a t this point in my remarks:
Matfmint of ths production of gold vnd sttwr in the world since the discovery of America.
[From MftJ to 1SS3 is from table of averages for certain p e r i o d complied by Dr. Adolpli Sootbcor. Tor tho yeara 183tM8W tho production Is tho annual
estimate of th« Hareau of the Mint.}
1681-1700
1701-1720
1721-1710
1741-17CO.........
1701-1780
178l-t?00
lBat-isiaZIIIIIIIl
1811-1800
1851-1833
i$5*-iseo
im-im....
1866-1070
1871-1875
lertMSSo
1881-1885
18*5
i
g
=
1892
Toui;.
IfW. 470
£30, m
273, WW
219. eoa
237, Cu7
3*1,845
281,055
£577.7(10
412,1*53
613,422
701.211
m, m
571, MS
r>7i,5£i
367,057
457,011
652,201
1,70X502
6,410.324
C, 48*1,262
5,949,682
SIBiSiS
5, M3.110
4, TIM. 755
6,127,750
5,003,034
6,310,412
5,7tf, 050
5,473* 631
5,830,107
6,328,272
Value.
6,221,100 J107.03t,O(D
6,524, 650 1H. £05,000
00,OiW
4,377, 5(4
4,308,120
wioif'oco
4,745.310
OH, 005, ooo
5,478.30) 113,218, (XX)
110,324,000
6, C33.U0 110,571,000
6,05t, ISO 123,034,000
6,021,805 143,0^,000
8,243,260 170,403, (XX)
12,208,440 253.611,000
327,11^000
275,211. COO
230,404,000
118,152,000
76,003,000
3,670,5(38
01.47t>,OCO
4,570,414
6.522.913 131,811,000
17,005,018 563,028,000
32,051,62* Ctf2, 566,000
32,431,312 (170,415,000
59,717,013 614,544,000
31,350,43) 648, on, coo
27,9fxj, CtfS 577, ($3,000
27,715,560 572,031,000
23,373,773 49i\£&*0C0
10*5,000,000
COO
Bowies? 105,302,
109,000,000
5,316,412 118,800,000
6,746,000 113.150,0CO
5,473,631 120,510, COO
5,830,107 130,817,000
6,328,272
Arnuial averago of period.
Flao ounces.
1,511,050
2,890,030
10.017.010
0,628,0C5
13,467,035
13,50-5,235
* 12,054,240
11,776,545
10,631,650
10,002,063
11,432,510
i3,fi*S3,oeo
17,140,012
20,985,501
261.779
28,74f>,tt£2
17,3S5,7S5
10,857
S5,000,312
&?,4SS,507
29,005,42$
35.401,072
43,051,583
63,317,014
78,775,G02
02.003.011
03,276,000
180,000
103,011,000
125,830,000
133,213,000
141,420,000
152,002,000
307,101,823 jS, 201,303,000
I t will be seen from this tablo t h a t from 1801 to 1820 the average yearly yield of gold was $9,710,500; silver, $29,823,503.
F r o m 1821 to 1840 tho average yearly yield of gold was $ll,46tS.000; silver, 821,968,500. From 1841 to I860 tho averago annual
yield of gold was 3101,019,000; silver, $05,600,000. From 1S<31 to
18S0 t h e averago annual yield of gold was 8120,091,500; silver,
$71,257,500. jjYom 1531 t o 1892 t h e average annuol^yield of gold
was $113,203,500; silver, $153,036,000. I t will be seen from this
table t h a t the average yearly production of t h e two metals for
four hundred years run closely together, tho estimated production in tho world for t h a t period standing thus: 0013,88,204,303,000; silver, S9,'120,072,000.
T h e experience of t h e world for so g r e a t a period should exempt us from any fear of a n undue production of either metal.
During all the mutations of time and circumstance and of varying production of tho two metals for four hundred years, gold
and silver wore held in parity without disturbance throughout
the world by t h e legal-tender money function which both possessed, until silver was demonetized in 1873, and a t t h a t time
silver outvalued gold. T h o people who have no access t o tho
t r u t h as exhibited in correct statistical figures are led to believe
we are about being inundated with silver when nothing can be
f u r t h e r from t h o t r u t h . Belatively t o gold, tho production of
silver was much greater from 1801 to 1840 than i t i s now.
From t h e beginning of the present century u p t o 1820 three
times as much silver as gold was produced, and from 1821 to
1S40 t h e production of silver was double t h a t of gold. I a the
327
Coining
value.
11,054,000
3.740,000
l2,fcY„\0G0
Percentage or production.
Total for tho period.
Fine ounces.
Coining
value.
42,509,400
By weight.
Gold.
i§iiiiii§iii§iiiiiiiiiiiiiiiiiiiin
HKMroo
15S1-1M1...
iM5-i?w>.
1561-1580
158l-lGOO
1601-1820
1631-1**0
IGM-ltXO
Fine ounces.
Value.
iiiiiiiiii§§iiiilliliiililiiii§§i§
Fino ottncoa.
mmmmmmmmmmm$
Period.
Silver.
%otal for tho period,
mmBBmmmmBmmwM
mmmmmmmmBmBmrn'mB
Goia.
Annual avorago of period.
11.0
7,522,507,716 0,726,07S, 000
5.0
<W,508,320
100,287,040
12,4:^0,000 102,578,500
(XX) 260,3">2,700
17,570,000 271,021,700
10,561. COO 253,081,803
15,(XX) 235,530,000
14,008,1X50 216, ("<01,000
14,212,000 210,841,700
14.781,000 228,650,801)
17,021.000 £77,261,600
22,1C2,()00 342,812,235
27,133,000
30,510,00)
37,168,000 2S7,460,225
22,470,000 173,857,555
10,114.000 143,070,040
24,703,(KX) 191,758, OTS
32,440,000 250, £<13,422
33,824,000 142,442,080
37,618,000 145,477,142
45,772,000 177,000,862
£15,257,014
81,804,000 316,585,060
101,851,000 303,878,000
460,010,722
120,(!00f000
03,270,000
121.36C.000
00,180,000
142,107,000 100,011,000
162,600,000 125,830,000
172,235,000 133,213,000
184,73^000 144,42rt,000
106,005,000 152,002,000
7.4
2.7
2.2
1.7
2.0
3.1
2.3
2.7
3.1
3.5
4.2
4.4
3.1
2.0
1.9
2.1
IS
6.0
18.4
18.2
14.4
12.7
Is
5.2
U
4.4
4.0
3.0
4.0
Silver.
• 80.0
02,0
07.3
07.8
03.3
08.0
i
00.0
00.5
05.8
05.6
96.9
08.0
Sti
07.0
06.7
03.4
81.0
81.8
85.0
87.3
01.9
03.4
95.0
91.8
95.0
05.4
05.6
96.0
Si
05.0
liy value.
Gold.
66.4
65.0
SO. 4
26.7
22.0
24.4
* 25.2
27.7
30.5
33.5
36.0
41.4
42.5
33.7
24.4
24.1
£5.3
33.0
35.2
52.9
78.3
78.1
72.9
70.0
58.6
53.0
45.5
40.8
Silver.
33.0
44.1
60.6
73.3
78.0
75.0
74.8
72.3
00,5
00.5
63.4
58.0
57.5
60.3
75.0
75.9
74.7
67.0
61.8
47.1
21.7
21.0
27.1
30.0
41.4
47.0
54.5
53.2
as
42.2
60.8
1:1
40.0 ' 00.0
45.8
51.2
next period of twenty years, however, t h e conditions were reversed and tho output of gold was three times as great as of silver. From 1861 to 18S0 the production of gold exceeded that of
silver by two-thirds; whilosin the last twelve years, 1881-1892,
t h e total yield of silver is only about one-fourth greater than
that of gold. Tho production of silver in later years has increased as compared with gold production, b u t t h e ratio of increase is insignificant compared with tho ratio of earlior years,
from which no disturbance of its relationship with gold as a money
metal resulted. Tho world's coinage of silver now exceeds t h a t
of gold only about 16 per cent, when, as I have shown, tho production of silver has repeatedly been in excess to 50,100, 200,
and as h i g h as 500 per ccnt, to bo succeeded in turn by like increase in the production of gold.
B u t i t is said t h a t this country under free coinage would bocome the "dumping ground" of the world for all cast-off silver.
A brief statement of facts which are not controverted will rofuto
this theory. I t is agreed by all the writers on this subject, and
notably by the late Secretary Windom, in his report to the Fiftyfirst Congress, that there is no known accumulation of silver bullion in tho world, and t h a t all the silver coin in Europe is doing
duty as money in circulation. O u r ratio of 16 of silver to 1 of
gold is t h e highest silver ratio of any country in t h e world except Moxico, whose ratio is 161 to 1, and Japan, with a ratio of
16.18 to 1.
I n the gold-using countries, whether monometallic, like England, Germany, and Russia, or bimetallic, like France, Italy,
OONGRESSIOKAIi RECORD.
Spain* and others, thoir siivor clrculatos sido by sido at par and
is exchangeable with gold. Any man dosiring in any of these
countries to exchange his silver for gold can mako thooxchango
in t ho ordinary courso of businoss a t homo, without oxponso or
discount. No reason can bo porcoivod why ho should prefer to
britiir it to the United States, whore tho standard ratio of siivor
to gold is greater in our silver coin, and where, consequently, his
siivor must bo sold at a discount.
All such siivor coins, of course, would havo to bo melted and
reeomed, so that all loss by handling and abrasion would bo doduo ted hero. Tho loss from this source and from tho discount by
reflhon of tho smaller sii vor ratio, tho oxponso of sliipmont, insurance, etc., has boon ostimatcd by experts to be from G to 8 por
cent, when without this loss this silver is being exchanged
everyday at homo at par with gold, of courso It will not bo brought
hero. European siivor would not bo "dumped " into this country for the nil-sufficient reason that it fs needed there to do the
very thing it is doing—that Is, to circulate us.monoy.
Ail tho gold-standard countries uso silver. Gold-stnndrird
England circulates $100,003,000 of it, of limitod-tcnder power.
Germany uses $103,000,000 full logal-tondor siivor, and $108,000,000 of limited-tender siivor. Austria-Hungary, liko Engi?hul
and Germany, a gold standard country, uses $1*0,000,000 full legaltender silver, whilo tho bimotallic couutrios liko Franco, Belgium, and others, circulate great quantities of silver. Gold can
never be used for tho evory-day purposes to which silver coins
are applied throughout tho world. Its subdivisions would bo too
minute for poekot use.
So, Mr. President, tho fear of an inundation of foreign coin, if
our mints should b j thrown open, is groundless and illusory.
This is one of the chimeras conjured up to frighten people into
the belief that we should abandon silver and roly solely upon gold
as a money metal, in opposition to tho oxperienco of tho world
t h a t during all tho ages it hasbaen tho great factor in tho preservation of the equities between dobtor and creditor, in holding
down gold to a fair and just standard of valuation, in securing to
labor fair and reasonable wages, and to tho products of labor and
all commodities just estimates of value.
In other words, silver and gold being mutual checks upon
each other when both possess the full inonoy function, preventing an undue fluctuation of either metal, thoy make conjointly
a st mdard of valuo steady, conservative, and reliable in their
relations to commodities, wages, and property exchanges. The
very best evidenco of tho t r u t h of this proposition is to bo found
in tho universal fall of prices since 1873 when silver was demonetized, and gold unchecked began to rise in value and continues
to rise, commodities falling in the same proportion, until $1
pos esses now the purchasing power over cotton and wheat
which required $2 to command in 1873, and all other commodities being affected, not to tho same extent pessibly, but heavily
in the same direction.
Not only is this true in tho United States, but it is equally
truo throughout Europe, in consequence of the destruction of
silver as money, as is shown by tho following extract from the
Economic Crisis, an ablo work by Mr. Morton Frewen, of London, on encomic questions. H e says:
I t may. Indeed, bo affirmed without fear of contradiction, tho legislation
arranged in tho interest of a certain class, first by L,ord Liverpool in this
country, and again by Sir Robert Peel at tho instigation of Mr. Jones Loyd
and other wealthy bankers, which was supplemented recently by simultaneous antisilver legislation In Berlin and Washington a t the instance of
the great financial houses. This legislation has about doubled the burden
of all national debts by an artificial enhancement of the value of money.
The fall of all prices induced by this cause has been on such a scale that
while In twenty years the national detvt of the United States quoted in dollars
h a s been reduced by nearly two-thirds, yet the value of the remaining onethird, measured i n wheat, in bar Iron, or bales of cotton. Is considerably
greater, is a greater demand on tho labor and industry of tho nation than
was tho whole debt at the time it was contracted.
The aggravation of the burdens of taxation induced by this so-called "appreciation of gold." which Is no n a t u r a l appreciation, but has been brought
about by class legislation to increase the value of gold which is in few hruids,
requires but to be explained to an enfranchised democracy, which will know
bow to protect itself against further attempts to contract the currency and
force down prices to the confusion of every existing contract.
Of all classes of middlemen, bankers have been by f a r the most sncccsful
in intercepting and appropriating an undue j&hare of produced wealth.
While the modern system of banking and credit m a y be said to be even yet
In its infancy, t h a t portion of the assets of the community which Is to-day in
the strongboxes of tho bankers,would, if declared, be an astounding rerelation
of the recent profits of this particular business; and not only has the business itself bccome a most profitable monopoly, but its interest* in a very few
hands are diametrically opposed to the interests of the majority. By leprlslatlon intended tocontract the currency and force down all prices, Including
wages, the price paid for labor, the money owner has been able to increase
the purchase power of his sovereign or dollar by the direct diminution of the
price of every kind of property mcas i*red In money.
This writer graphically describes the origin of the policy sough t
to be engrafted on the Institutions of this country by the gold
mdnometaiiista, its methods, and results. I t is not difficult to
understand why England, Germany, and Russia (said now to be
going to the gold standard), and the lesser powers should be
wedded to the gold standard; all of them monarchies, buttressed
327
3
by hereditary and monoyod aristocracics, nonproduccrs, all of
them, living in luxury and /jplondor through ponsions and annuities, ofhees and other forms of fixed incomes, on tho products
of the labor of tho common poople,
Tho gold standard doubles th& valuo and purchasing pownr of
their incomds, whilo it roducos by half tho pricos of tho products
of labor. Tho ruling classes, clothed in purplo and fino linen,
exhaust ovory form of luxurious living, while tho groat mass
of tho common jieoplo aro bowed down with tho merciless oxactions of unrequited labor, to which they submit-with tho bast
grace thoy may, under tho persuasive inlluenco of fixod bayonets
and double-shotted Gatling guns. This is a fair statement of tho
results of tho European monometallic financial policy now sought
to
forced on tho American people.
Every political party in this country, without exception, has
repeatedly, over and over again, declared for and pledged to tho
Amorican pcoplo tho bimotallic policy, tho freo coinago of both
gold and silver, with full money powor tooach, without discriminating against either. Our r^sponso to these pledges solemnly
maclo is in a bill now ponding before tho Senate for tho unconditional repeal of tho only law on our statute books authorizing
,the coinago of another silver dollar, placing tho'country avowedly on tho single gold standard.
If this bill shall pass as introduced, and tho vast power of tho
Administration is behind it urging its passage, the freo men of
America will havo bowedtheh* necks to tlie yoke of European
domination in their foroign and domestic financial allairs.
Rothschild's and the Bank of England, with their retainers, dictate the financial policies of Europe; and if tho singlo gold standard is established in America, then Rothschild's and tho Bank of
-England, with their Now York associates, will become tho arbiters of Amorican finance and tho dictators of our financial policies, because thoy control tho gold wo'will bo compelled to have.
Tho Director of tho Mint in his latest report, of dato February
.1*6,1893, referring to tho world's productof goldfor the years
1
1S.K>, -181)1, and 1802, says that 'according to tho revised totals tho
ifinountwas as follows: 1890, $113,140,000; 1891, $120,518,800; 1S92,
$130,816,000.
Tho gold product of the United States for tho year 1S92 is estimated by the Director of the Mint to bo 833,000,000. For the
year 1891 heestimates that $10,610,408 was used in tho industrial
arts, and for 1892, $10,044,953 was used in tho arts in the United
States—about half of tho product, leaving tho other half for coining- Tho Director of tho Mint a few years ago estimated t h a t $46,000,000 of the world's annual gold product was consumed in tho
arts in tho manufacture of jewelry, gold plate, in dentistry, etc.
The gold product of the world has" been for many years
dwindling, being about $100,000,000, until in tho last two years
there has been a slight increase. Deducting tho Director's estimate of the world's consumption of gold in the arts from the
gold product of 1892, the largest in many years, and we have
left for coinage $84,810,000 to recruit the losses of tho original
stock by abrasion, handling, and accident, and meet the necessities of the world arising from the growth of population, business, and commerce.
Over this the nations of the earth must struggle and scramble
for accessions to thoir present stock. I t is tho European policy
that this shall bo so, because Europe already holds possession of
it and can fix tho price upon it. There all development is com*
pleted and finished, population is stationary or declining, and
production, if not receding, is at least not advancing. Stagnation is the order of tho day. Our country is young, full of vigor,
gcowing rapidly in population, both from natural causes and from
immigration. Now States, new communities are being founded,
great tractsof nowcountry boin^ populated and opened to, production, new enterprises and nclv industries are beingIncepted
and pushed, and general progressive development the leading
characteristic of the peoplq, the country, and the times.
A people and country like this will starve, will languish under
suppressed development when hold down to a volume of
money circulation allowed by the aristocratic rulers of Europe
to their overcrowded, underpaid, and overworked people. Yet
this is what is proposed for our people in the pending bill. I t
will be said in reply to this that wo have silver certificates,
Treasury notes, national-bank notes, greenback notes, and other
forms of money in addition to gold. There is one conclusive
answer to all such assertions, and i t is t h a t all our paper money
of every sort, kind, and description is held to be ultimately redeemable in gold, and, therefore, the volume of our money
must be estimated on the breadth of the metallic redemption
fund on which i t rests.
Before silver was demonetized tho volume of money rested
on the broad basis of both gold and silver, which was not more
than ample for its redemption, but was deemed sufficiently safo
for a reasonably abundant circulation; but since silver demonetization, the metallic basis for paper money having been reduced
4
CONGRESSIONAL RECORD.
one-half, tho volume of paper, in order to bo safo, had to be ro- masters of tho people, «H history shows is tho condition throughtlttvod una tuljusted to tlio smaller metallic basis On which it out Europe, wh.-ro the single gold standard piovails. Gold
rrsjed for redemption. It is this reduction which has forced being concentrated in value, less in weight and bulk, and almost
down tho price;* of commodities and nil tho products of labor, exactly one-half of tho money of the world, is so much more
which have fallen because tho volume of monoy in which ail oasily iiandlod, possessed, and cornered than silver that the groat
inonoy barons of Europe and their co.idjutors in America, devalues a:o measured has boon contracted one-hulf.
Our oxiMmvuco since I8T-"! in tho fall of pricesconsoquontupon signing to rule thin country as Europe is ruled by the power of
thoriostmctiou of silver money establishes this proposition. The monoy, and to reduce our people to tho same condition in which
itiMitllcioncy of tho gold basis sought to l>o forced upon our peo- the common people of Europe, under tho power of a great
ple by thtilr KurojHsan and Amoriuan financiut musters is thus monied aristocracy, now.oxist, are moving heaven and earth to
madu plainly apparent. That our voiumo of pai>er and credit destroy silver, tho only obsttelo which stands in tho way.
if the Sherman uctsnall bo repealed without being substituted
motiov is a largo overissue
outstanding greatly in excess
of a »ife proportion to tho gold redemption fund is undo mani- by some other which shall provide for tho freo coinage of silver,
fest bv exiwting financial disturbances. The temptation to over- what will bccoino of tho silver already coined and tho bullion now.
issue
always been regarded as one of the principal dangers in tho Treasury':' Thoro are of coined standard silver dollars
of tho single standard. England
hits, since her adoption of tho & 11),335,450, and enough of bullion in tho Treasury when coined
to swell this amount to about $(>00,000,000. What under thoso
gold ftandnrd, been called 4 , tho lurid of panics*."
With a bimetallic currency lirmly ositiblinhed, both metals, circumstances would be tho status of this silver? That with tho
under the friendly and fostering care of tho Government anil unconditional repoal of tho Sherman act silver will fall heavily,
banks alike, instead of having silver boycotted and discrimi- nobody doubts. The depth to which it will tumble must be a
nated against as it Has been by tho banks and tho Government, mero matter of conjecture.
Producing, as this country does, 47 per cent of tho silver proin defiance of tho people's demand that it should bo otherwise,
with our par or anil credit bottomed on the two metals instead duced in the world, its public sentiment tho strongest of that of
of being eon lined to one, wo would now bo enjoy incr peace and any one of the great powers of tho earth in favor of its equal use
prosperity instead of being threatened with universal bankruptcy with gold as a monoy metal, its abandonment by us will be its
by tho greatest financial disturbance that has over occurred dur- death knoll so far as respects its use as money, except in such
subordinate ways and such limited quantities as obtain in all
ing thiw generation.
The gold basis on which our credit paper has been resting has gold-standard countries.
Our experience since 1878, when tho Bland act was passed, as
proved tuo narrow: and it has been an easy matter for tho conspirators who have produced tho existing crisis to topple over silver has been hammered down and boycotted by the national
the pa[>or superstructure, producing chaos and confusion. We banks, by the officers of tho executive department of our Govvividly romember the widespread destruction resulting from ernment without regard to party, who in every conceivable way,
silver demonetization and the resulting contraction of money in thooxocutionof tho laws, have discriminated againstnnd prejcirculation in 1873. Wo now have tho same experience in tho udiced our silver monoy, would bo worth very littlo if it did not
contemplation of tho sweeping away of tho partial remonetiza- teach us that tho same arguments and agencies which assailed tho
tion of silver by tho act of 187H, known as tho Bland act, which silver dollar all along tho line as it was made to decline, first as
a 0v)-ccnt dollar, then as an 80-cent dollar, a 70-cont, and a 00-cent
tho repeal of the Sherman act will complete.
As before remarked, notwithstanding a slight incroaso in the dollar, down as low as silver has fallen, would bo used with tenproduction of gold for the last two or throe years, tho production fold greater effect against tho coined silver dollar when its inof that metal has toon declining throughout the world for many trinsic bullion value'has been reduced to 30, 40, or 50 cents. To
years. The product of tho mines of tho United States, which stop the coinage of silver in tho United States is tho object of the
has been between one-third and one-fourth of tho world's entire present contest, and to rcmovo from our statute book any recogproduction, has been derived almost entirely from tho silver nition of it as inonoy. Tho success of monometallism* on this
mines as an incident of silver*mining: and tho closing down point will bo insured*by the passage of tho bill for the uncondihirgoly of theso mines by reason of the groat depreciation of sil- tional repoal of the so-called Sherman act.
ver, will greatly diminish the supply of gold in tho United States,
Our coined silver, reduced to a more bagatelle in intrinsic
still further reducing the already confessedly inadequate supply value, compared with its legal value as a dollar, will bo scoffed
of that metal.
at as a dishonest, base, depreciated coin, worthless in itself unGold and silver are precious metals tho world over, and havo less made redeemable in gold. Those who have been able to
be n so through all tho ages and will continue to be, silver as bring down silver from a premium over gold, to its present defully as gold. These motals have in all ages been yielded by preciated condition as a commodity, and against the protest of
mother earth In quantities and proportions adapted to the wants two-thirds of the American people shall pass tho pending bill
and necessities of mankind. Notwithstanding tho estimate of abolishing its coinage, will find no difficulty in getting rid of tho
the aggregate of both motals in the world shows nearly equal silver they have succeeded in making intrinsically worthless.
proportions of gold and silver, it is a fact of their history that
It is true that tho legal-tender quality and the debt-paying
their relation to each other has constantly been changing by power may preserve the silver dollar at par; but this will not
reason of the changing proportion of their production.
>revent its persecution by tho monometallists, who are bentupon
Atone time gold has been produced largely in excess, and at ts destruction, in order to supply its place with bank paper.
another silver; but it has been the unvarying history of thoso Tho issuance of bonds to miso gold to redeem these discredited
met :1s that an excess of either has always been corrected by a silver dollars will then be in order; and these bonds, of course,
corresponding increase in the production of the other in it&turn, will be a basis for the perpetuation of tho national banks, whoso
and th i t tho supply of both has keptlpace with the growth of busi- present lease of life is nearly exhausted. The purpose of the
ness and commerce of tho world. The flood of gold which was money power of this country has been for years past, and is now,
poured from the mines of California. Australia, and Bussia be- to make gold and national bank notes the currency of the countween 1S50 and iS~>t>, estimated at 6900.000,000, which
a try
decline or more than 5 per cent in that metal and moved alarmOn the 6th day of December, 1886, in his report to Congress,
ists to advocate its demonetization, as they do now of silver, as Daniel Manning, then Secretary of the Treasury of Mr. Clevewe all know has been corrected by the more recent discoveries land's first Administration, used this language:
of silver; and so it has been for all time.
The act making compulsory post-redemption issues and reissues of United
A law of nature seems to have joined these metals together States
notes, and the act making compulsory Treasury purchases of silver,
and to have denied perfect efficacy to their functions as money are each a separate menace t o the public tranquility, are each injurious to
except as cooperative forces. Under tho double standard, they the public morals, the public faith, and tho public interest.
support each other. If gold is scarce and high, silver becomes
Secretary Manning simply reiterated the recommendations of
more abundant; if silver disappears, gold ilows into its place. his Republican predecessors. The scheme to fund the United
The people who have both to rely on can depend with absolute States notes or greenbacks went hand in hand with that of decertainty on the presence at all times of one of them—a corner monetizing silver.
on both is impossible. I t is through this cooperative action of
These notes, so embedded in the confidence and favor of the
the two metals under the double standard that a sufficient circu- people, are too suggestive of the supreme excellence of auoiform
lation is assured for the demands of trade and commerce, for national currency, issued directly by the Government, backed
living wages to labor, for fair valuations in the transfers of prop- by its power and credit, redeemable at the will of the holder in
erty, and a safeguard is furnished, as far as human wisdom can coin, as are the United States notes, not to have incurred the
devise one, against crises and panics and the loss and ruin they deadly hostility of the national banking interest. A currency
entail.
issued by themselves, put out and called in, expanded or conThe centralization of capital in the hands of a few men is im- tracted at their pleasure, is the object of their desire. Control of
possible with the double standard of gold and silver, while with all the fiscal 'affairs of this Government and country they have
gold alone a few bankers and capitalists become the lords and constantly aspired to and hoped to achieve.
m
OONGRESSIOKAIi RECORD.
While not mooting tho subject to any great extent in tho Inst
low yours, tho recent financial discussion through t h u p r a n has
developed tho fact that this design Is as vigorous and unyielding as ever. Having accomplished tho demonetization of silver,
if this bill p isses, with renewed strength and prestige and assurance, they will address thomselvos to tho accomplishment of
their cherisod purpose. W e have, Mr. President, to deal with tho
exigencies of tne present, but our action should be so framed as
to provide well against tho dangers of tho future.
Our people demand bimetallism almost with ono voice. All
tho organized political parties in tho United Suites, without a
a single exception, demand bimetallism. Yet wo are urged to
puss the ponding bill, which places tho country avowedly on the
single gold standard. Wo are promised bimetallism In tho dist i n t futuro on the impossible condition of an international
agreement—a condition demonstrated by actual oxperionce to
be impossible. England must bo a party to any International
agreement, 11 nd England has repeatedly, over and over again, refused to bo a party to such an agreement.
English capital, English diplomacy, English intrigue, cooperating with allied conspirators in tho United States, have produced this panic, this financial convulsion, which now paralyzes
the business of this country, for the purposo of coercing the
people of tho United Statos into tho adoption of tho monometallic policy, which tho j>ending bill, if passed, will inaugurate.
The $2,000,000,000 duo from corporations in tho United States to
Europe, nearly all of it in England, and tho annual interest accruing thereon, will be paid In gold If England can compel it so
paid; and, in order to do this, England must defeat bimetallism
in this country.
Mr. Gladstone, in a speoch dollverod In tho British Parliament
in February last, und reported March I in the London Times,
scouts the idea t h a t England, a groat creditor nation, owing nothing to other nations, would over consent to an agreement for bimetallism and thereby reduce tho value of the great debts due
from this and other countries to England, by allowing them paid
in a cheaper rnonoy than gold. Mr. Gladstone knows if this
country is forced to the gold basis, gold will riso in value, that
the burden of all debts will bo increased, and the profits of all
creditors will be increased in the same proportion.
England, because she is a great creditor nation, and also Germany, who allies herself with England, has always been an immovable obstruction in the way of an international agreement
for bimetallism, and always will be, because gold flowing into
her coffers from all tho nations of the world is more valuable,
will buy more of the products of labor the scarcer and higher
it is. If additional evidence of England's determination that
bimetallism shall not bo established In the United States, if she
can prevent it. were needed, tho rocont action of -the British
Government in stopping silver coinage in India oxcept on government account, the severest blow yet stricken the silver interest, on the eve of the meeting of this special session of Congress
called to consider this subject, ought certainly to b3 conclusive.
W e have no hope of an international agreement. There is no
idea entertained anywhere that one is possible. Wo must depend on ourselves if we expect ever to havo bimetallism. Our
peoplo have demanded the restoration of gold and silver coinage as they existed prior to 1873—both free and on an exact
equality at tho mints and before the law. In the language of
the distinguished Senator from New York [Mr. HILL], in his
learned and able speech delivered a few days ago in this body:
Bimetallism does not mean the stoppage of f u r t h e r silver coinage while
maintaining o u r present silver currency intact, hut it m e a n s the free coinage of silver and gold by the Government either under a n international
agreement or Independently.
The stoppage of f u r t h e r silver coinage, but the maintenance of existing
silver currency, accompanied by the free coinage of sold, is not bimetallism,
but it is what the famous French financier, Mr. Cernuschi, called "humpedback monometallism," such as exists in France and Germany toniay.
This definition* of the distinguished Senator is an accurate and
felicitous one, and
is in strict accord with the popular signification of the word 41 bimetallism."
Tho Democratic party, in the Chicago platform, on which the
present Administration came into power, pledged itself to the
people on this subject in the following emphatic language:
SILVER PLANK.
We denounce the Republican legislation known as the Sherman act of IS30
as a cowardly makeshift, f r a u g h t with possibilities of danger in the future,
which should make all of its supporters, as well as its author, anxious for
its speedv repeal. We hold to the use of bot h gold and silver as the standard
money or the country* and to the coinage of both gold and silver without discriminating against either metal or charge for mintage, but the dollar unit
of coinage of both metals must be of equal intrinsic and exchangeable value,
or be a d j u s t e d through international agreement, or by such safeguards of
legislation as shall Insure the maintenance of the parity of the two metals,
and the equal power of every dollar a t all times in the markets, and in payment of debts; and w e demand that all paper currency shall be kept at
p a r with and redeemable In such coin. We insist upon this policy as especially necessary for the protection of the f a r m e r s and laboring classes, the
327
5
flrwt and most defenseless victims of unstablo money and a fluctuating currency.
In response to tlip solemn pledge given in this platform, it is
proposed by tho pending bill to r^po>.il unconditionally the-only
law authorizing the coinage of a dollar of silver to bo found on
our statute book, and in doing BO, to erect tho singlo gold standard, discarding and rejecting silver. Pledged to bimetallism,
wo propose to establish monometallism. Pledged to tho equal
uso of gold and silver, and paper redeemable at par in the coins
of both metals, wo deliberately falsify the pledge by abolishing
tho coinage of silver and providing for that of gold alone. Wo
aro driven by no noccs:;ity to thus violate tho solemn promises
of the Democratic party to the people. If they aro thus violated
and broken, tho act is a purely voluntary ono, and utterly without justification or palliation.
There aro well-established precedents in the history of this
Govornment under which our platform pledges can tie surely
and safely redoomod. Tho freo coinage of silver as it existed
prior to 1873, at tho present ratio, it is believed by the great
majority of tho best thinkers in thiscountrv, would in a very
short time, by bringing down tho value of gold and raising that
of silver, bring those metals together in substantial pirity.
Safeguards of legislation, it is confidently believed, could be
brought to the aid of such an act in a way to insure the desired
result.
A decrease in tho number of grains of gold in tho gold coin,
or an increase in tho number of grains of silver in the silver
coin, or a docreaso in tho weight of the gold and an increase in
tho weight of the silver coin, would bring them to parity. The
gold oi'glo (ten-dollar piece) as established in 1792, containing
270 grains of standard gold, was in 1834 reduced to 25S grains of
standard gold. Tho silver dollar established as tho unit of
value in 1792, containing 416 grains of standard silver, was in
1837 changed to a dollar, tho same we now have, of 412J grains
of standard silver.
I t is no now thing to change tho ratio of the metals to each
other. Why cun ;vo not change i t now, and for convenience reduce the number of grains in the gold coin, leaving the silver
dollar, as at present, with 412i grains of standard silver? Go!d is
overvalued about 40 per cent its compared with silver and other
commodities, and a subtraction of a part of this overvaluation,
by reducing its weight, would restore, the proper equities betweon debtors and creditors, and raise the pricesof all commodities from their depression to a fair and conservative level, while
producing parity between tho metals, as the party is pledged to
do.
When Congress possosses tho power, and the Democratic
party holds the majority todo, and do surely and well, that which
therAmerican people have been promised shall be done, shall
the wishes and demands of tho people not be considered and
some effort made to comply with the promise? I t seems not.
I warn Democrats that the people will bo heard from later. W e
are told by the advocates of this bill, or a t least by the leading
ones among them, that we must pass this bill and adjourn and
go home; that nothing more is needed to be done, oxcept to pass
a bill already favorably reported providing for the issuance by
the national b mks of $20,000,000 bank notes, which many believe will be locked up in their vaults as soon as issued, where
all the other money in the country is hoarded instead of being
put in circulation.
No need, say they, to press tariff reform and a repeal of the
McKinley bill. True it is that manufacturers, producers of raw
material, importers and consumers alike, are vitally interested
in knowing what changes are to be made in the tariff, in order
to i n t c l H ^ n t l y nnd-properly-eond^otr t h ^ i r buMnees, which is
languishing almost to the point of paralysis for want of this information. W e are told that i t is too hot now, we must wait
until the regular session in December next before taking hold
of the subject. All that these gentlemen desire, if the pending
bill passes, will have been secured in the destruction of silver
and the inauguration of gold us the crowned despot of our monetary system. That accomplished, their labors are finished.
I t is all they want, except that Congress shall adjourn. The
$50,000,000 of legal-tender Treasury notes required under the
Sherman acteach year to be paid out for silver bullion, which goes
out into circulation, and is tho only source of increase in the volume of money to meet increased demands from increased population and business, will be cut off by the passage of this bill; and
to this extent currency will be contracted, in addition to the universal shrinkage inevitably to occur f rom the adoption of the gold
st indard. The Secretary of the Treasury is reported by the daily
papers of this city, in interviews, as saying that the country
needs no addition to its circulation, t h a t we have money enough,
and that all we need is confidence. The President, in his message, makes but one recommendation, and that is to repeal tho
Sherman act.
6
CONGRESSIONAL RECORD.
Tho bankers, capitalists, aud gold mongers, whoso wealth is
to IK) largely increased if not doubled by tho roponl of tho
Sherman act* are uAng alt thoir powor over merchants and tho
interior banker.*, resorting to ovorv form of coercion. Printed
petitions, with printed letters of instructions, lmvo beenahowou'Jl over tho country from Now York and other Kustern cities,
to bo filled out with signatures and forwarded to Washington
for uffcefc upon niombors of Congress. Tho pressure through
tho national kinks, machlno petitions, the metropolitan pre^s,
and tho vnat power of tho oxccutlvo department of tho Government for tho passage of this bill is tho most tremendous ever
before known.
Tho House, unablo to withstand it, has succumbed, and tho
United States Senate stands to-day tho only barrier betwoen the
peoplo and spoliation. Thrown into dire distress mid rondered
utterly helpless by a panicconcoivcd, oxcltcd, produced, und, manipulated by tho New York national bunks and their co-conspirators in other Eastern cities and in England for tho purpose of coorcing their consent to tho passago of this bill, tho people of tho
United States havo a right to expect Congress to protect them
against tho gigantic combination which is assailing thorn. Do
Senators doubt tho existence of this combination? I call to tho
stand Hon. John G. Carllslo, Secretary of tfio Treasury, who in
1878, on tho floor of tho House, of which ho was then a member,
in n speech of remarkable power, used tho following language.
I t hus been heard before, but will bear repetition:
work In that direction has been started by a number of tho banks in tho solid
communities of the Kast. They aro daily refusing crcdits to the South,
Southwest, and West, fearing the cffccts or tho S h e r m a n law.
" T h o Chicago bankers, it was said, aro carrying out tho same line of policy. Secretary Carlisle, in his talk with tho bank presidents, made his stand
very clear, It is to bo heroic t r e a t m e n t all tho way through on the Sherman
law, and possibly by the next cession or Congress tho silver mine owners
and tho adheroutsof silver in t h o S e n a t o a n d Hotisowill bo ready to cons t a t to a repeal of the law.
" T h e bank presidents, replying to Secretary Carlisle, cordially informed
him t h a t they would bo ready at all times to cooperate with him in tho successful administration of tho financial policy of the Government. Everybody Hhook hands, and there waa harmony ail round." [Laughter. 1
The Ne w York Sun of Saturday, April iM, in Its llnancial column, Bayn:
" T h e conference* yesterday between Secretary Carlisle and a number of tho
hankers of this city wa:t of great valuo in that ft resulted inatlellnito understanding of the financial policy of tlin Administration, a3 indicated in this
cot umif last Tuesday. That policy is to Interpose no obstacle to tho n a t u r a l
operations and logical results of tlieSherman law. I n a word, tho Adtulnistratlon proposes to allow tho people to reap tho r o w a n i s o l their own folly."
W a s my lrieiul from Now York [Mr. CUMMINGS] in tho city of Washington
on the first day of May last?
Mr. CUM si i N I ; s. I was.
Mr. HATCH. I thank tho gentleman for giving mo t h a t information, bocauso
it furnishes a key to the whole situation. Tho Now York Sun, in Its Wash*
ltixtou letter, published May 1,I6V3, says
Mr. CUMMIK(.;H. Will the gentloman pormlt an interruption?
M r . IIATCII. Y e s , n l r .
Mr. CUMAIINGS. Tho gentleman's statement Is correct, but his assumption
Is e rr onoous. [ Laughter. ]
Mr. HATCH. T h a t remark is simply evoked by tho gentleman's modesty.
[Laughter.] 1 will read this statement:
" T h e statement of Mr. Carllslo to tho Now York bankers makes It clear
that, while Mr. Cleveland works In Congress, tho bankers will boexpccted to
work, not in New York only, but throughout the country, doing their utmost
I know t h a t tho world's stock of precious metals is none too large, and 1 to plnrh business everywhere In tho expectation of causiug a money crisis
set? n o reason to apprehend t h a t it ever will be so. Mankind will
fortu- t h a t will affect Congress powerfully f r o m every quarter. There is an expllcn a t e indeed if tho annual production of gold and stiver-coin shall keep pare ltness in these declarations and a boldness in m a k i n g them t h a t would be
w i t h tho annual increase of population, commerce, and industry. Accord- astounding were not tho country too familiar with Mr. Cloveland and his
ing to my viowa of tho subject* tho conspiracy which seems to havo been methrd.* to l>e astonished by anything from h i m . "
Tho circulation and Importance of this paper w a r r a n t tho assertion t h a t
formed hero and in Kuropo to destroy by legislation and otherwi^o from
three-sevenths to one-half tho metallic money of tho world Is the most gt* Mr. Carlisle read these statements. I havo watched In vain for any denial
frantic crime of this o r any other age. Tho consummation of stich a scheme o r oven modillcatlou of them. On tho contrary, proofs as strong as Holy
would ultimately entail mcrro misery upon tho h u m a n race t h a n all the wary, "Writ aro accumulating to Justify and prove their correctness.
Now, my friends, there Is the beginning of this money crisis.
pestilences. and famines t h a t over occurred in the history of tho world.
The absolute and Instantaneous destruction of half the entire movable
Tlio publication quoted by Mr. HATCH has been quoted from
property of the world, including houses, .ships, railroads*, and other appliances for carrying on commerce, white it would be folt more sensibly a t Now York to San Francisco and has never been controverted or
the moment, would not produce a n y t h i n g Uko the prolonged distress and denied. The proofs piled up in this debate, both in the Senate and
disorganization of society t h a t m u s t inevitably result f r o m t h e permanent
House, in support of the truth of tho proposition, that this panic4
annihilation of one-half tho metallic money of tho world.
-Mr. President, this testimony of Mr. Carllslo needs no comment. He denounces tho conspiracy, formed " hero and in Europe," to destroy by legislation or otherwise from throe-sevenths
to one-half of tho metallic money of tho world as tho greatest
crime of this or any other ago. Tho same men, or their successors. animated by tho purpose which moved tho conspirators
in 1873 to demonetize silver, are tnoconspirators of to-day, seeking tlio repeal of the Sherman bill, and, through that, the destruction of siivor as a money metal. Thoy arc doubtless amused
to hear gentlemen who vote for tho unconditional repeal of tho
Sherman bill, and thereby voto against tho coinngo of another
dollar of silver, claim to be biinotallists. Thoy know that tho
power which destroyed silver in 1873, and is able to sweep it from
tho statute book in 181>3. can and will never bo ovcrcomo for the
establishment of bimetallism by anything short of a financial and
political revolution.
Those who cast such votes, honest and conscientious as I admit them to bo, will have tho consolation (if it be a consolation)
of knowing that thoy have donoallin their power to strike down
silver as a money metal, to banish bimetallism from our system,
an I to establish gold as our solo primary metallic money; for
ou.* silver coin is, by tho bill passed by tho House and now before us, in legal effect, mado redeemable in gold.
I make no apology, Mr. President, for reading hero an extract
from tho very able speech of Hon. W I L L I A M H. HATCH, of Missouri, recently made in tho IToiiso of Representatives, gixmoYi l iable information on the subjcct of the present panicjits origin, etc:
And If you desire t o k n o w tho present, direct, a n d most potential cause of
.
they
a r r o g a n t l y claim t o be, t h e i r babbling and bullying declarations f a m i s h the
m o i t damaging testimony a g a i n s t tliem.
I will read some e x t r a c t s f r o m a g r e a t New York paper, one which is at
the very head of New York journalism—my friend f r o m New York [Mr.
CUMMISGS] will n o t controvert t h a t statement—a p a p e r t h a t claims to have
the courage of Its own convictions, a p a p e r independent in all things, cons i s t e n t in but few llanghterL though claiming t o be in tho m a i n Democratic. I read f r o m the New York S u n of F r i d a y , April 28. A f t e r reciting
sonio of the Incidents of the enjoyable conference between Sec rotary Carlisle and the bankers, it says:
"As the Secretary outlined the policy of the Government, It was t h a t nothing- would be don« t h a t in a n y way would r e t a r d o r check the determination
of t h e Cleveland Administration concerning tho repeal of the Sherman law.
T h e Secretary w e n t over t h e currency laws of t h e country, ar.d said t h a t
t h e y were in bad shape, and needed revision. He said the revision should
s t a r t with t h e S h e r m a n law. There Is a determination, also, to show t o the
m i n e r s of silver the evil effects of t h e S h e r m a n l a w on their fortunes.
• P r e s i d e n t Cleveland's advisers have told him t h a t tha only way to induce
the W e s t e r n and Southwestern Senators and Congressmen t o consent to the
repeal of t h e S h e r m a n law, Is to d e m o n s t r a t e to their constituents t h a t they
a r e losing money every d a y t h a t t h i s law Is In operation. The missionary
327
was deliberately brought about for the purpose of placing tho
people in duress, in order to compel their assent to the repeal
of tho Sherman bill and their acceptance of till its consequenccs
in tlio revolutionary and radical changes in our monetai'y system>
is so conclusive as to leavo no room for doubt.
I tako tho liberty of using hero again a quotation from the
Philadelphia Press, ono of tho groat newspapers of tho country,
which has been adverted to here and in the other House,as follows:
The New York banks for several days have been ondeavoring to bring a
home intiuenco on United S t a t e s Senators to induce them to vote for tho repeal of the J u l y silver law.
To this end correspondents of tho Now York banks in tho West and South
have been told t h a t they need not expect to get money f r o m New York until
tho purchasing clause was repealed, and the Southern and Western banker a
havo been strongly urged to write to their Senators and to Insist t h a t they
work and voto for Immediate repeal. This movement has given rise to the
recent feeling in Now York t h a t tho silver m a j o r i t y In tho Senate could be
overcome, as the influence of the banks of tho metropolis, when concentrated
on any object. Is regarded as invincible. There is a feeling t h a t the s t r a i n i s
not a s great as it was, and improvement is hoped for. Somo anxiety exists
as to tho action of savings-bank depositor* when the thirty and sixty day
limit expires noxt month. Tho requirements of money for the crops will
also bo a potent factor, but no ono is disposed to contemplate f u t u r e conditions, especially if they are likely to bo unpleasant.
Mr. VANCE. If i t would not interrupt the Senator from
Toxas, while ho is on that point I will state that I received a
letter this morning from a very respectable business gentleman
in Salisbury, N. C., inclosing a letter from a Nejv York banker,
which is very short, and with his permission I should liko to
xttad.it—
Mr. COKE. Certainly.
Mr. VANCE. The letter is as follows:
N o . 3 BROAD STREET, N E W YORK, August
31,
DEARSIR: Wo a r e obliged to you f o r your favorof theSSth Instant offering
loan on your mills—
This gentleman is connected with a large cotton mill a t Salisbury—
which appears t o be very good. I t is n o t In o u r lino, however, and w e
don't know a n y p a r t i e s here w h o could handle the paper. We hardly t h i n k
t h a t tho times have sufficiently improved to w a r r a n t negotiations.
The Senators from your country arc n o t looked u p o n a s promoters of t h o
general welfare. If their stand represents the views of y o u r people on financial matters, ft will be very difficult for yon t o secure any accommodation
f r o m capitalists lii t h i s section until there is a decided change.
Yours, truly,
E. D. S H E P A E D & CO.
I. H. FotTST. Esq,,
Secretary, Salisbury, W. C.
Mr. COKE. I take tho following from tho New York Sun oT
April 29:
L e t u s p o i n t to another fact, and we a r o d o n e l Never before have t h e
large banking Institutions of Chicago a n d t h e West ordered t h e i r gold i n
such large quantities direct f r o m Europe, and In this fact Is f o u n d ono re*-
OONGRESSIOKAIi RECORD. 263
eon why our bankers are puzzled over tho anomaly that although
these
million* aro coming to the country ihoy experience little or no relief there*
from. The other .reason, eemlemen. Is, in order to force tho repeal of tho
Sherman act and to quickly establish yonr power over tho plain people or
this land, you ttrst neat out of tho country one hundred and ten million* of
tho people's currency In order to assist tho ItotlwchlUU toiluiuoiiottoo silver
l a Austria and elsewhere, and then lot it remain there, to teach tho West
and South an "obJecMoiWon," as tho President called it, until you found It
was necessary to recall it la order to save your own house from destruction.
Now, you hare not only taught tho West and the South an object-lesson, but
yourselves ono as well, and you can bo sure of it.
The?e quotations from tho leading papers of tho country could
be extended greatly toyond tho time I can give to thorn, all establishing tho existence of tho groat conspiracy.
Mr. Prosidont, when tho Sherman act was on its passage
through tho Senato I voted and spoke against it, believing it
a bill that should not pass. That bill repealed tho Bland act of
1878, which partially remonetizod silver and provided for tho
coinage of not less than two nor more than four million legaltender silver dollars monthly. It is now proposed to repeal tho
Sherman act, without restoring tho Bland act or in any other
way providing for silver coinage.
The House bill now before us, as woll as tho substitute reported
from tho Finance Committee, provides for tho unconditional repeal of tho Sherman act, making no provision for or recognition
or silver coinage. Tho House bill is, in my judgment, tho more
direct and manly mode of dealing with the subject. I t ropenls
the Sherman act, destroys silver without making any apology
for it, and makes provision for disposing of the romains (tho
coincd silver) by making them redeemable in gold, if this is
necessary to preserve their parity with that metal. It disposes
of the silver question and leaves nothing undone that is demanded
by the gold monometallists.
The empty declaration of the Senate substitute in favor of bimetallism, in tho same enactment that destroys bimetallism and
establishes gold monometallism, is so grotesquely inconsistent as
to need no comment.
I shall cast my vote against either or both of these bills. It
327
is generally agreed that tho Sherman net has had little or nothing to do with bringing about the present financial disturbance,
and that tho exportation of gold attributed to it is for tho most
part a natural and legitimate outflow for tho liquidation of a largo
trade balance existing against tho United States, which is now
and for some timo, notwitstunding the Sherman act, has been
rapidly returning for the purchnso of our agricultural and other
prod note.
The legal-tender Troasury notes paid out under that act for
silver bullion, amounting to about $50,000,000 each year, has boon
a much-needed accession to our volume of circulation. Its operation in this respect has bjen most bonoficont. This act hn?
been undo a stalking-horse, behind which the plans for the demonetization of silver and tho issuance of gold bonds for the
benelit of tho national banks have been perfected and pushed
by a band of reckless and unscrupulous conspirators against tho
peace, welfare, and prosperity of tho people of the United States.
Tho President of tho United States and his Secretary of tho
Treasury nro honest, patriotic men, dovoted to what they concoivo to be tho best interests of tho country, but they have been
decoivod, dupod, and imposed on, and their confidence betrayed
by the bold, bad men, who, on a cold calculation of enormous
profit to themsolvos and their confederates, backed by unlimited
wealth, havo boon ablo to control tho influences which have precipitated tho present unhappy monetary conditions upon tho
country.
Mr. President, tho victory of organized capital against the
people, if this bill shall pass, will bo a memorabloono. But tho
people havo been taken unawares. They have bsen deceived
and betrayed. Solemn pledges made to them havo been broken
and trodden under foot. They will never submit to tho domination of tho money-changers. The day tho pending bill becomes
law, if it shall pass, will mark a renewal of tho contest, to be
fought ton finish. The supremacy of tho American people in
the administration and control of their own Government will
yet bo vindicated.
@FedFRASER