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F I F T Y - T H I R D
C O I S T G K R E S S ,
Sliver.
English Financial Tyranny and American Subserviency.
SPEECH
H O N .
H .
0.
OF
H A N S B K O U G H ,
NORTH
DAKOTA.
I N THE S E N A T E OF T H E U N I T E D STATES,
Friday, September
F I R S T
for 1885 and 1880. that Being a close approximation to the official figures for
1890, the only year in the period of 1885-1892 for which such figures exist. In
the case of Asia Minor, Persia, and Syria blanks have been filled for 1886 and
1887, and in that of the Cape of Good Jlope one has been filled for 1885 by the
insertion of round-number figures bearing a reasonable relation to those for
other years.
The reason for making these estimates, which it will be seen are in several
cases rather arbitrary, is that by so doing it is made possible to obtain a
total for each year for all the countries in the table, and that this total
.will not be appreciably affected, as regards its value for comparison with
the totals for other years, by such a degree of error as there may be in the
estimates for a few comparatively unimportant countries.
The following is the table:
Approximate statement of the world's wheat crop from 1385 to 1892, inclusive.
Countries.
1893.
The Senate having under consideration the bill (H. R. 1) to repeal a part of
an act, approved July 14, 1890. entitled " A n act directing the purchase of
silver bullion and the issue of Treasury notes thereon, and for other purposes'
United States
Ontario
Manitoba
Argentine Republic and
Chile
:
Austria
Hungary
Belgium
Denmark
France
Germany
Great Britain and Ireland
Greece
Italy
Netherlands
Portugal
Mr. HANSBROUGH said:
Mr. PRESIDENT: The State whose people have honored me
with their confidence does not produce an ounce of silver or of
gold. Therefore I trust that what I shall say on the subject now
under discussion will not be charged up as the utterance of one
moved by selfish motives. I am not a stockholder in any silver
mine, or gold mine, or banking institution; the opinions I hold
are entirely untrammeled. I did not intend to discuss this question from a sectional standpoint, but so many Senators have
shown a disposition to look at it from the New York and New
England point of view that I feel justified in dealing with it, in Roumanian...*
Russia
part at least, in its direct application to the wheat-producing Poland
Servia
regions of the country.
Spain
North Dakota is an agricultural State, as rich in its particu- Sweden
lar industrial sphere as any in the land. Nature has blessed it Norway
with a soil as black as night and as rich as a bed of compost. Switzerland
Turkey in Europe
The principal product is wheat, of which the State produced in India
1891 over 60,000,000 bushels. The output this year will be less Asia Minor.
than 40,000,000 bushels. Naturally our people, in common with Persia
Syria
those of all the trans-Missouri States, are interested in the Japan
prices of wheat.
Algeria
When we know that the world's yield this year is below the Cape Colony
Egypt
average for ten years; that the average annual yield during the Australasia
past decade has not kept pace with the increase of the world's
Total
population and the new and enlarged uses which are being made
of the cereal, and yet in the face of these facts farm prices of
Countries.
wheat have steadily declined from year to year—from SI .25 per
bushel in 1872 to 42 cents in 1893—we conclude that natural laws
of trade, of supply and demand, no longer govern, and that the United States
root of this great inequality is nurtured from a source and by a Ontario
Manitoba
subtle influence hidden from the common everyday view.
Republic
It is asserted here, and has been asserted in the other branch Argentine
Chile
:
of Congress and in the magazines and newspapers that favor the Austria
repeal of the Sherman law, that the cause of the low price of Hungary
Belgium
agricultural products is overproduction. So far as wheat is con- Denmark
cerned, I think that I shall be able to show that this position is France
wholly untenable. The very best authorities, including the De- Germany
Britain and
partment of Agriculture, agree that the world's wheat crop this Great
land
year will be about equal to a ten years' average, and that this Greece ___
year's yield will be about 100,000,000 bushels less than the aver- Italy
age of the past two years. It is also agreed by statisticians that Netherlands
Portugal
the world's consumption is at the maximum, and we all know Roumania
that the world's average price was never so low as now. I will Russia
insert in my remarks at this point a communication and a tabu- Poland
Servia
lated statement touching this question recently Bent me by the Spain
Sweden
Secretary of Agriculture:
APPBOXIMATB STATEMENT OT THE WOBLD'S WHEAT CHOP
It is not possible to compile a statement of the wheat crop of the entire
world, for the reason that there are many countries for which no official
figures are ever published and a number for which there are not even commercial estimates. The best of the statements that are published from time
t o time as statements of the world's wheat crop contain such official figures
as are available, together with estimates for a mimber of countries for which
no official figures are issued. W h e n the statements for different years are
brought together it is exceptional to find two which exactly coincide as to
the countries comprised, and this fact adds greatly to the difficulty of compiling a statement covering any considerable number of years. The table
herewith transmitted covers the eight years from 1835 to 1892, inclusive; and
to make a complete statement even for this limited time it was necessary to
make estimates for two or three years in the case of a few countries.
I n the case of Poland this was done for 1885,1886, and 1887, the estimate being based on the assumption that crop conditions were approximately the
same in Poland as in the adjacent provinces of Russia and Austria. In the
case of Norway, the round-number estimate of 280,000 bushels was inserted
m
S E S S I O N .
Norway
Switzerland
Turkey in Europe
India
Asia Minor
Persia
Syria
Japan
Algeria
Cape Colony
Egypt
Australia —
Total
•Unofficial.
1888.
1885.
1886.
1887.
Bushels.
857,112,000
81,572,931
7,209,479
Bushels.
457,218,000
28,459,322
6,922,723
Bushels.
456,329,000
20,706,452
12,741,050
Bushels.
415,868,000
20,923,709
7,220,640
•25,000,000
48,281,992
113,805,460
18,516,935
5,533,355
311,733,033
95,505,881
•28,800,625
44,644,090
102,816,419
18,219,412
5,201,640
304,427,095
97,973,269
•28,000,000
•28,375,000
51,843,452
135,859,786
15,298,980
3,805,465
280,176,816
02,991,571
82,071,332
•4,965,625
117,027,013
6,325,545
•7,661,250
•22,629,003
178,084,400
$14,110,000
•4,681,875
•113,500,000
3,974,773
65,285,353
•4,937,250
119,793,575
5,194,702
•8,228,750
•22,6^9,063
163,455,273
78,567,593
•5,000,000
126,223,350
6,889,532
76,760,671
•4,823,750
110,095,000
5,243,700
•7,093,750
•51,075,000
313,935,995
14,369,446
•4,540,000
•101,156,875
3,853,736
•312,125
•1,702,500
•42,562,500
$280,000
•2,057,188
•45,400,000
299,155,584
•43,200,938
•26,743,438
•16,457,500
12,362,906
•22,700,000
±3,600,000
•14,187,500
38,412,447
52,351,733
145,906,514
19,887,110
6,024,672
319,094,204
104,013,175
•6,000,000
•1,645,750
•41,143,750
258,317,622
±37,000,000
•24,000,000
278,697,917
$15,600,000
•5,000,000
•95,000,000
4,370,485
•230,000
•2,000,000
•42,000,000
238,585,947
$37,000,000
$14,000,000
16,453,383
•32,915,000
•3,666,022
•16,457,500
132,681,648
$14,000,000
15,571,400
21,215,718
3,692,555
•13,700,000
[45,932,961
$13,100,000
•4,525,813
•131,660,000
3,867,487
$2£0,000
±22,000,000
$22,000,000
266,882,112
•38,306,250
•22,700,000
•14,187,500
15,839,821
•19,862,500
3,932,090
•14,187,500
135,733,671
2,093,859,443 2,113,950,536 2,266,331,368 2,221,519,911
and
Ire-
...
.
1890.
1891.
Bushels.
490,560,000
19,288,933
7,428,511
Bushels.
399.262,000
22,643,193
15,128,034
Bushels.
611,780,000
33,611,074
Bushels.
515,949,000
29,690,129
14,909,420
•24,1J 8,750
38,376,705
93,520,530
19,339,038
- 4,977,875
307,357,350
87,170,362
•60,271,043
44,059,962
148,017,904
19,409,505
4,062,590
331,748,810
104,020,781
•47,256,500
41,070,599
126,263,750
•14,187,500
4,666,445
219,241,787
85,750,011
•47,549,418
+47,123,526
138,223,680
20,748,362
•4,538,683
310,037,795
•100,057,440
78,149,523
•5,000,000
108,934,463
6,473,217
•8,532; 500
•44,784,883
197,883,931
10,052,537
•5,000,000
75,622,213
8,809,037
•283,750
•2,270,000
•39,725,000
237,522,133
•36,887,500
•22,500,000
•12,768,750
16,491,845
•22,500,000
3,776,137
•7,645,000
{35,996,836
78,306,016
•5,675,000
131,433,000
•6,189,120
•8,252,160
53,607,639
213,031,826
12,629,698
•10,315,200
•70,143,360
4,048,962
236,602
•2,475,648
•37,134,720
228,592,000
•37,134,720
•22,693,440
•12,378,240
12,567,996
•22,693,440
2,015,616
•8,252,160
43,861,853
77,016,151
•5,675,000
141,455,050
•3,713,472
•8,252,160
45,672,264
169,108,708
12,680,920
•7,945,000
71,319,094
+4,551,350
•412,608
4,041,766
•33,003,640
255,434,667
•37,029,375
•20,630,400
•12,343,125
18,131,295
•21,281,250
2,748,749
•11,140,416
33,874,000
62,621,756
•3,972,500
+115,676,431
•5,675,000
•6,100,625
•59,828,100
241,578,934
24,440,446
•4,951,296
•78,395,520
+4,559,863
•412,608
•3,300,864
•24,756,480
203,168,000
•37,134,720
•18,567,360
•12,378,240
•13,857,803
19,398,797
2,813,460
•8.252,160
37,096,221
1892.
2,075,027,329 2,172,372,246 {2, £05,251,330 2,217,764,701
+Preliminary.
^Estimated.
CONGRESSIONAL EECOED.
2
Northwest for the past fourteen years, and I think the facts
will bear out the statement that m ten years no material improvements have been made in the methods of harvesting and
handling. The same patterns of binders and the same patterns
* According to this statement the world's wheat crop in 1885 of thrashers in use now were in use a decade since. The plows
was, in round numbers 2,093,000,000 bushels; in 1886,2,113,000,- and harrows are the same and the process of marketing has not
000 bushels; in 1887, 2,266,000,000 bushels. From that date it changed. Farm implements have been reduced in price to some
has steadily decreased,being 2,221,000,000 bushels in 1888,2,075,- extent, but this does not argue that because the cost of machin000,000 in 1889, 2,172,000,000 in 1890, 2,205,000,000 in 1891, 2,217,- ery has been lessened that the producer should be obliged to ac000,000 in 1S92, and, according to good estimates, It will not cept a less price for his wheat. Furthermore, cheap machinery
exceed 2 J00,000,000 the present year.
would mean a greater volume of production, if it means anyI will also insert a statement of the average export price of thing. But there has been a decrease in production.
wheat and cotton for the past twenty-two years and of the price
The contention that cheaper rates of transportation have had
of silver. The figures are from the Statistical Abstract;
a tendency toward lowering the price on the farm is almost too
absurd to call for a reply. I can understand how cheaper transW h e a t Cotton. Silver.
Year.
Wheat. Cotton. Silver. portation rates might inure to the benefit of the consumer who
Year.
pays the freight at one end of the line, but 1 can not understand
why the amount of the reduction in rates should be subtracted
Cents.
Cents.
from
the price paid the producer at the other end. The propo10.8
$1111
81.13
1872
81.47
81.32
19.3
1 . 0 1 sition is illogical and lacks the philosophical vertebrae to enable
1.07
10.5
1.31
1873
1.20 1881..
18.8
1.06
.86
10.6
1885.1.43
15.4
1.27
1874
it to standalone.
.99
9.9
.87
1.12
1.24 1880._
15.0
187 5
I submit, therefore, that the overproduction and transporta.97
9.5
.89
12.9
1.15 1887
1.24
187G
.93 tion theories are entirely without foundation. .Statistics and
85
9.8
1SS8„
1.20
1.17
11.8
1877
.93 reason will not bear them out; and in this connection, Mr. Pres.00
9.9
1889..,
1.15
1.34
1878
11.1
1.01
.83
10.1
1.12
1.07
1879
1S90__,
9.9
.90 ident, this fact should be added, that the population of the world
.85
10.0
1.14 1891...
1.25
3880
11.5
.86 has increasad in ten years nearly 100,000,000; in other words,
.SO
8.7
1.13
1.11
1881
11.4
.75 there are 100,000,000 more mouths to feed now than in 1882. The
.60
7.2
1.13 1893..
1.19
1S82
11.4
per capita of wheat in 1882 was 1.52 bushels, and the price 81.19
This table shows that the export price of wheat was $1.47 per per bushel; the per capita to-day is 1.36 bushels, and the price 65
bushel in 1872, and that it has gradually declined to about 60 cents per bushel—.16 less bushels of wheat per mouth, and 54
cents the present year; that the price of cotton was 19.3 cents cents less price per bushel.
Now, what has caused this fall in price in the face of underper pound in 1872, and that it is 7.2 cents the present year; and
also that silver was then $1.32 per ounce, and it is now 75 cents production and increased demands? Clearly and undeniably It
is the increased purchasing power of gold that has caused it. It
per ounce.
The wheat crop in 1887 was the largest in the history of the takes more pounds of wheat to buy a dollarih gold now than it
world. As I have shown, the Department of Agriculture reports didt wenty years ago. That much must be conceded. "The ratio
it to have been 2,266,331,368 bushels. The average price of ex- of wheat to gold has grown larger year by year, Just as th& ~
port wheat that year was 89 cents. In 1888 the world's crop was ratio of B i l v e r to gold has increased. It is a statistical and his45,000,000 bushels less than in 1887, and the average prico was torical truth that the world's prices of wheat and cotton in this
4 cents per bushel less* In 1889 it was 191,000,000 bushels lea* "country have fallen with consistent regularity with the decline
than in 1887, and the average price was only 1 cent higher. In in the price of silverIt is further claimed by those who hold to the overproduction
1890 the crop was 94,000,000 less than in 1887, and the average
price was 83 cents, or 6 cents less than in 1887. In 1891.it was theory that prices are influenced by the surplus, or the visible
supply,
or stocks in millers' hands, or stocks in farmers' hands*
61,000,000 bushels less than in 1887, and the average price was
85 cents, 4 cents les3 than in 1887. In 1892 the crop was 49,000,000 The " surplus " has many designations. I admit, Mr. President*
bushels less than in 1887, and the average price was 80 cents per that the surplus is the instrument used by dealers, more parbushel, or 9 cents less than in 18S7. The crop of 1893, the present ticularly by wheat speculators, to manipulate prices up or down
year, will be 166,000,000 bushels less than in 1887, while the aver- to suit their ourposes. Now, what is a surplus? Webster says
age price will not exceed 65 cents, or 24 cents less than it was it is " that which remains over when use or need is satisfied, or
in 1887. Pricesin Chicago during the late panic ranged from 58 when a limit is reached." A t what time in the year is the surto 62 cents. The farm price in my State has been down to 40 plus of wheat measured? A t what time can it be measured? A t
cents. These figures show a marked decrease in the output dur- what time is use or need satisfied?
Mr. President, wheat seeding is in progress every month in:
ing the past seven years, and yet the price has gone down
the year at some spot upon this terrestrial sphere. Wheat harsteadily below the profit line.
I will ask to insert at this point an extract from a recent edi- vesting is going on every week in the year somewhere on the
torial in the New York Sun, showing the gold value of an aver- globe. The marketing of wheat is going on. every day in the
year in every wheat-producing region in the world. If the yield,
age yield of an acre of grain and hay.and cotton:
The following- tabto shows, in five-year averages, the gold value per acre the production of wheat, should Everywhere cease at the same
(In the local farm markets) of the product of the five staples named, for moment, the greatest surplus ever recorded would not suffice to
quinquennial periods, since 1866, and an estimate of the value, with average feed the people of the world for a period of sixty days. There
yields, of an acre under each such staple in 1893 at present prices:
is and always has been a surplus. It is a wise provision of nature
that there shall be a few bushels of wheat on hand all the time.
Value of an acre's product.
Ai*
no iiuio i n i h e pa&i iwenfey
htts the «tu?pluft been, sufStaples.
1866-1870. 1871-1875. 1876-1880. 18S1-1855. 1886-18S0. 1893.
ficient to cause the tremendous decline in prices that has taken
place since 1872.
$12.84
811.30
89.62
$10.25
IS. 81
Concerning this question the Secretary of Agriculture says:
CotlL.................
18.35
A l l statements purporting to giro ttio crops of the world are necessarily
very incomplete from the fact that for various countries no authentic data
are obtainable, and such, incomplete statements as are possible could not be
given for any considerable period without enormous labor, if at all.
Wheat
Oats
Hay
Cotton
„
-
Total
Average
....
13.16
10.92
13,23
28.01
1LS0
9.81
14.33
28.53
12.00
8.53
11.57
17.65
10.20
9.17
11.15
15.63
9.07
7.50
10.19
13.84
6.00
5.75
10.00
10.65
78.21
15.61
73.91
15.19
59.42
56.40
11.23
49.44
9.89
40.75
8.15
ii.sa
In commenting upon this table the Sun makes the following
remarks:
If T as is altogether probable, the revenue derived from the cultivation of
each acre of the staples named has not since 1S85 been to excess of the cost
of production, then It is readily seen that the workers among the 30,000,000
w h o inhabit the f a r m s of the United States have for eight years received no
mor© than laborer*' wages, and could purchase but the barest necessaries.
A s prices now current are ill per cent below the average of 1896 to 1890 it follows that the products or the farm are n o w sold below tho cost of produc*
t!on y and that the farmer is wholly without purchasing power other than
such as results from his wages as a common laborer.
While one class is prophesying decline in relative supply as population
increases, another goes to the opposite extreme and assumes the probability
of overproduction, the ability to "feed the nations," and practically milimited production. Such views often originate in lack of Information and
excess either of patriotic or partisan z e a l W h i l e there has been In productive years positive overproduction of certain crops, from adhesion to the
agricultural traditions of the fathers, preventing diversification necessary
to supply old wants not met under primitive agricultural conditions and
the new wants of advancing civilization, there is now underproduction o r
nonproduction, which has a very repressive effect on agricultural activities,
resulting In rural stagnation and depression.
Again, the Secretary of Agriculture says:
I t Is proper t o say that the tendency is toward a better distribution of
crops and to higher prices and better profits. The proportion of agricultural labor win decrease, nonagricultural will Increase, agricultural pro- "
auction will be more varied, rural intelligence and skill will advance, and
the farmer be i n better position to demand and secure an equitable share ill
the net profits of national industries.
This hopeful view has not been realized with respect to wheat*
It is also asserted by those who advanee the overproduction
Now, Mr. President, there is another phase of this controversy
theory that improved methods of handlings and reduced rates of that I desire to touch upon briefly. W e have been told by
transportation have tended to cheapen the product. Mr. Presi- statesmen in bath ends of this Capitol—Democrats and Repubdenty I have haen a close observer of farm operations in thegreat licans who favor repeal—that the wages of our working peopla
473
OO^GEESSIOSTAIf BECOBB.
have not fallen. W o are to infer from this, of course* that the
decline in the prices of agricultural products is not due to the
decline in the price of silver, wages having remained stationary.
I want to congratulate tho Democrats who have asserted this fact
for their wisdom in putting themselves upon a protective-tariff
basis, on a parity with Republican doctrine. Last year* before
the election took place, they declared that wages in this country
had declined to the starvation point, and that the only help for
it was a Democratic victory and a revenue tariff. We welcome
them to tho protection fold with open arms.
But what must bo the surprise of all men to hear Republicans,
who have been contending that the good wages paid our workingmen is entirely due to protection, now arguing that this fact
refutes the theory that the fall in the price of silver has caused
a decrease in the value of agricultural products? What becomes
of our argument that protection insures good wages, regardless of such side issues as finance? For my part I refuse to
abandon protection in this way. The good wa^es paid in this
country are due to protection. Tho country is now having a
very instructive object lesson in confirmation of this fact. Verily, the single gold standard feeling makes somo people wondrous kind. One touch of monometallism makes all the gold
men akin.
Mr. President, what produced tho late panic? To this question I havo heard a great variety of answers. In my own judgment the inception of it was injudicious speculations by European capitalists, beginning in the Argentine Republic, where a
thousand millions is said to have been, lost by speculative Englishmen. Then came the Baring failure, and in 1891 the general
failure of crops throughout Europe, Tho Argentine trouble
practically antedates the Sherman law. The Baring failure
came before the extreme enemies of silver had discovered that
the Sherman law was bad legislation, and tho crop failure in Europe in 1891 brought such prosperity to this country by reason
of increased demands for our cereals that such a thing as a panic
in 1893 did not suggest itself to the minds of our wisest financiers. The effect of these three remarkable events in Europe
was an unusual financial stringency.
Tho banks there simply refused further advances ta those of
their customers who had been unfortunate in their investments.
Pressed for immediate money, tho holders of American securities were obliged to realize, and, as is well known everywhere,
America is the only country that is doing business on a cash
basis and is able to pay its debts as they fall due. Our bonds
and stocks returned to us in largo volume. Our gold went abroad,
in equally large proportions to pay for them. And in the midst
of this situation, the balance of trade turned against us.
These facts are historical. In them we find the germs, fully
matured, of the late unusual depression. Then came the success in this country of a political party that has declared its purpose to turn prosperity's stream in tho opposite direction. What
followed is told in the record of failures and suspensions, the extent of which has never been equaled in so short a space of time
In any country or under any circumstances.
It was at this critical moment that the enemies of silver, advocates of a singlo gold standard, opened their campaign against
the Sherman law. They began to urge that distrust had arisen
in Europe in respect to certain financial legislation in America.
They asserted that foreign capitalists were fearful that wo should
adopt a policy antagonistic to our European creditors, and that
the only way to obviate a terrible monetary disaster was to wipe
from the statute books the last vestige of law recognizing silver
as air element in our financial economy. The onslaught upon
certain classes of our currency was shameful in the extreme.
Patriotism, if they ever possessed it, vanished from the minds
of the money-changers and bond-buyers. A n assault was made
upon the gold reserve in the United States Treasury.
By every device known to the manipulators of money an attempt was made to force an issue of bonds. This had been resisted throughout the incumbency of a Republican President,
and, be it said to the great credit of the present Secretary of the
treasury, it has been successfully resisted by him. But greed
and selfishness had gone too far and the crash came, crumbling
the* temple about and upon the heads of those who had. sapped
its foundations.
And here we are to-day, Mr*. President, the great American
Congress, said to be the wisest and most dignified legislative
body on earth, in extra session, hastily assembled, under orders
ta repeal a statute because somo designing individuals have said
that somebody in Europe was afraid that something might hapjten in this country in the remote future. A more ludicrous
eight never presented itself to the gaze of man. Gilbert and
Sullivan, of comic-opera fame, would find it difficult to picture a
more ridiculous situation.
I once heard of a man who jumped from a third-story window
at midnight because a sleeping neighbor had cried " f i r e " in a
473
3
dream. His surprise when he struck ttos ground and discovered,
that there was no fire, could not have been any greater than is
the surprise ot some Senators here about mo who are fast reaching the conclusion that the outcry against the Sherman law is
after all a false alarm, rung in from Wall street*
But, Mr. President, the serious part of it is, that if it were
true that our financial affairs are in such shape as to cause an
honest alarm throughout the businoss world, what power have
wo, what may Congress do, to bring permanent relief? In his
message the Chief Executive has told us what wo must do. Nothing is left to the discretion of Congress. Tho wisdom that is
supposed to abide in this body is not to be applied to the adoption of any remedy save the solitary one suggested by tho President of the United States. Repeal the Sherman law! repeal
the Sherman law! is
cry. It was first started in the financial precincts of New York. Then it was taken up by tho banking people of Boston and Philadelphia. They passed tho word
to others of their guild in other cities, and they to their customers and the public generally.
How much more patriotic it would have been for our Chief
Executive, instead of yielding to the pressure of the money changers, to have declared that he would not lend his high office to a
premeditated attack upon the integrity of our currency or any
part of it.
Mr. President, the character of our currency is as delicate and
as easily destroyed by evil report as is the character of a virtuous woman, and it seems to me it should be the duty of those in
power to defend it against the slanderous tongues of foreign
enemies and their domestic agents, as it is the duty of any individual to defend the angels of his household against the vultures
of society. But the President did not take this position. He
yielded to the pressure of the gold monometallists.
He joined in the cry against our silver money, and after convening Congress in special session ho proceeded to direct what we
should do, framing his edict in mandatory terms, and leaving us
no alternative.
It is said, and doubtless upon authority, that the President will
sign no other bill than that which carries tho unconditional repeal of the Sherman law. A majority of the Senate may differ
with him upon this vital question, yet by the language of his
message and in tho report of the Committee on Finance we read
no sign and see no hope that anything but repeal, and unconditional repeal, can be had. Already has discussion here developed the fact that the Shorman law may not have had anything
to do with our recent financial troubles. The great financier
whose name the law bears does not say it is so. Eminent statesmen on the other side of this Chamboi; do not attribute the late
panic to it, yet any measure that Congress might agree upon to
pro vent future financial trouble is vetoed in advance of its passage.
EiTen the-chairman of the Committee on Finance is obliged to
abandon his former convictions on this great question in order
that he may carry out the edict of the President. Is it not
a dangerous precedent to establish? Should the lawmaking
power thus become subservient to the Executive? Only a few
months ago the President practically suspended a statute onacted by the last Congress in order that the Supreme Court might
pass upon its constitutionality. Mr. President, in a country
where such things can take place, it is only another and a very
short step to the empire.
And now, Mr. President, what is the full significance of that
which the President has told us that we must do? He has said
thb Sherman law must be repealed, or at least thak portion of
it which provides for the purchase of four and a half million
ounces of silver bullion each month. If the final result of this
extra session is the repeal of this law, tho discontinuance of the
use of silver that comes from the American mines, following as
it would the recent destandardizing of silver in India; it means
that the existence cf one of the leading industries in this country
must cease. It should not be forgotten that mining for the precious metals is one of tho greatest and one of the most important
industries on the western hemisphere.
The European nations that have thrown silver overboard did
so under conditions far different from the conditions existing in
this country. They do not produce silver. They have no great
silver properties* When they eliminated silver as a money
metal tney did not strike down a great domestic industry. I
would as willingly consent to vote for a measure to forbid the
production of wheat in this country as to support a proposition
to close the gold and silver mines of our great mountain region.
It has been stated in the debate here, and stated very forcibly
in the able speech of the Senator from Idaho [Mr. DUBOIS] that
nearly 40 per cent of the product of our silver mines is gold, and
that if the silver mines are closed our product of gold is decreased by that amount; so that in discontinuing the use of the
product ol silver ^ as proposed by the repealers, and placing the
COFGEESSIOKAXi RECORD.
4
country upon a gold basis, by the same act we cut off from onethird to one-half of our gold product.
Now, let us for a moment inquire into the extent and importance
of the silver industry on the American continent. The world's
product of silver for the three years of 1890,-1891, and 1892 was
in round numbers $555,000,000. Of this amount the western
hemisphere produced $455,000,000, and all the other nations of
the earth only $100,000,000. Is it any wonder that the PanAmerican countries have a friendly side for silver when they
produce nearly five-sixths of the world's total output? Silver
is an American institution and is entitled to the strong protecting arm of the American people. Further disparagement of
silver in this country at the behest of the great financial Moloch
of Europe would be a national crime.
What is to follow the repeal of the Sherman law? Many of
the friends of repeal say that the Government should buy gold
to maintain the parity between our metallic moneys. The reeal press is now advocating gold purchases, and that seems to
Ee the policy which the Administration proposes to pursue.
To
do this a new issue of bonds would be necessary. The gold thus
purchased would soon be taken from the Treasury by the money
manipulators. Silver certificates and Treasury notes would be
presented for redemption in gold then, as now, until the stock
of the yellow metal became exhausted. It would then be necessary to issue more, bonds to buy the gold back again.
It is claimed that as soon as this Government enters the market and declares its intention to have its share of the four billions of gold in the world, Europe will take fright and make
immediate proposal for a bimetallic conference, and that international bimetallism would then become an assured fact.
Mr. President, international bimetallism was a prominent issue in the last campaign. It was advocated by the Republican
speakers everywhere. It was not advocated by Democratic
speakers. They wanted the " money of the Constitution." They
wanted it worse then than many of them seem to want it now.
A goodly number have changed their views and are advocating
international bimetallism. I favored international bimetallism
a year ago because I believed it could be brought about through
international agreement. Since then I have read the reports
of the various monetary conferences, especially the reportofthe
Brussels conference, and I regret to say that I have been obliged
to change my opinion on this subject. The burden of the discussion in the last conference was that England must take the initiative in any arrangement that would lead to an international
agreement.
That seems to have been conceded by the majority of the deleates in the conference. Baron de Rothschild, the English
elegate to that conference, said explicitly and emphatically
that England did not want bimetallism and would not adopt it.
This is a matter of record. I shall quote from Mr. Rothschild
further along in my remarks, in order that there may be no misunderstanding in respect to the position of England.
Now, where is the gold to come from when the United States
enters the market as a purchaser? Mr. President, I have received letters recently from a friend of mine in London, a gentleman engaged in the business of bond-buying. He is well
known to financiers onboth sides of the water and his statements,
upon a subject with which he is entirely familiar, may bs relied upon. In his letters to me he says that the United States
can not buy $50,000,000 of gold in all Europe; that the countries
over there, which ar.e on a gold basis, will not permit their gold
to come here; that they can pay as much for it as we can pay,
unfl will
This describes the situation exactly. If we should buy Europe's gold, or any considerable portion of it, the financial stringency which we have been experiencing here would simply be
transferred to the other side of the Atlantic Ocean. They will
not let us have it except at an enormous premium. Financiers
know this to be true and are getting ready to take part in the
eontest for gold that will inevitably follow the repeal of our silver legislation and the issue of gold bonds by this country. W e
would have an international scramble for gold instead of an international agreement in favor of silver.
Mr. President, the recent financial difficulties had their inception in 1816, when England demonetized silver and established
the single gold standard. At that time the world's annual product of silver was less than $23,000,000 and of gold only $760,0t>0.
England had most of the gold then in existence. She has it now.
She was then, as now, the financial center of the universe, and
the ambition of her statesmen was to make her the commercial
dictator. Silver was the money of the countries with which
England must trade and from whom she must buy the raw materials for her manufactories and the food products for her people.
In addition to the strong position she occupied with respect
to finance, she was then as now the great maritime nation.
Britannia certainly ruled the waves, and to insure a continuance
f
473
of this rule she must rule the finances and commerce of the
earth. Commercial and financial tyranny in her dealings with
the younger and weaker nations became the science of her politics and of her statesmanship.
Manufacturing was her chief industry. She sent the products
of her mills to every port on the globe. The millions of people
in Asia were dependent upon England for their clothing and
other manufactured necessities. This was also true in a large
degree with' respect to many European nations, and it was true
in some measure with respect to America. With us, however,
dependence upon England has ceased. America is now the foremost nation of the earth in manufactures, and the extent of her
wonderful resources is beyond computation. To maintain her
self respect she must become foremost in financial leadership.
As I have said, silver was the money of the countries with which
England must trade, if she maintained her supremacy. Gold
was the money of England, from whom these countries must buy.
Disparagement of silver would therefore enhance the value of
gold. The people who supplied England with raw materials were
satisfied to take their pay in silver, for they knew no othe*
money. When they made purchases in England they must pay
in gold, for that was the standard there. The wider the disparity in the value of the two metals the greater the prosperity
m England.
India, more than any other country, has long been the victim
of this financial inequality, because she has been and is now
under the domination of Parliament. The condition of her
250,000,000 people is but little better than that of slaves. But
they have not always been without some compensation, for
the English Parliament, not so many years ago, honored the
reigning sovereign of England by bestowing upon her the title
of Empress of India. No doubt this was a source of great gratification to the poor Indians, but they went right along putting up gold for Crown revenues and paying gold for what
they bought in .London, meanwhile accepting rupees for the
wheat, cotton, and rice exported to England, the London India
merchant pocketing the difference between the face value of
the rupee and the gold price of the silver bullion in it. I
mention this little royal incident merely to illustrate the potency
ot that diplomatic article known to untutored minds as taffy.'*
I say that the people of India have been the victims of England's nonreciprocal system of finance, and so have the American agriculturists, who havo been obliged to meet the Indian
agriculturists in Liverpool with their surplus products. Of our
total product of wheat, we sell in the Liverpool market about
15 per cent, and the price paid us for it there is the price we
receive, less the carrying charges, for our entire product, because we must compete there with the Indian surplus which has
been purchased at Bombay and Calcutta with silver rupees worth
48 cents each in India, the bullion in which cost, perhaps, 36
cents in gold in London.
As a result of this inequality in finance, which gives an kdvantage to the English dealers in India products, the exports of
wheat from that country increased from 5,500,000 bushels in 1882
to over 50,000,000 bushels in 1892. The producers of wheat and
cotton in America are the principal victims, the chief sufferers
from the conditions that I have attempted to describe, because
our wheat and cotton are the principal agricultural products that
compote in a foreign market with similar products grown in
foreign soil. It will be found upon an examination of the statistics that the price of meats, butter, and eggs have remained
steady, and that there has been a fair profit m producing these
ai tielos, the prieee^of which
fixed
in our homa-market in
conlormity with the law of supply and demand.
I know, Mr. President, that these facts are susceptible of being construed into a strong argument against the free use of
silver in the United States. The gold monometallists naturally
ask us u Do you propose that we shall adopt a siUxr standard in
this country?" I answer no; we do not want a single silver
standard here, and we are in no danger of getting it. What I
am contending for is financial leadership for the United States,
instead of financial subserviency. ^ What is wanted in this country and wanted now is a declaration of financial independence.
The commercial yoke fastened to our necka in the time of
George III was not more oppressive than is the financial harness
we are now wearing by order of the house of Rothschild. W©
threw off the one by force of arms; we have*it in our power to
relieve ourselves of the other by legislation. The Hessians are
with us now as they were then. They are clad in different
raiment, it is true, but they are no less dangerous. Then they
came in coat of mail; to-day they appear in purple and fine
linen. What they attempted then by brute strength they are
accomplishing now by the persuasive power of gold.
England is the bondholder of the world. Her people are creditors to the extent of $12,000,000,000. The debt is being paid
day by day in a monetary medium the world's total volume of
5 CONGRESSIONAL EECOED.
which is less than one-third the total amount of the debt. In lions. The unhappy English capitalist owns worthless paper based on enin every corner of the world that have lured him to open his purse
other words, the world owes England more than three times as terprises
and laughed at him when it was empty.
much gold as there is gold in the world. English capitalists
Mr.
President,
the " unhappy Englishman" does not need a
can, in thirty days, call for more gold than all the world would
financial guardian. In every instance of a dollar's loss to him
be justified in paying in ten years.
When England desires to squeeze a commercial rival all she by injudicious investments in Argentines and Brazilians, Aushas to do is to call in her gold. Thus the power is in her hands tralians, or Venezuelans, he has recouped the loss a hundredfold
to force the business world into liquidation whenever it suits her by judicious investments in Americans, and a liberal recognipurpose. Furthermore, a panic or business contraction in the tion of silver by this Government will not drive his money away
United States makes a market for English goods. The closing from us. He has loaned us his gold and we will pay him in gold.
of manufacturing institutions here, resulting in a smaller output No one is better aware of this fact than he is himself. Even toof goods and wares, makes a market for cheap foreign products day, in the midst of this outcry against silver and our silver paper and when the credit of this country is being attacked by
at good prices when business revives.
Ours is not the first nation to yield to the money influence of designing men, and the onslaught supported by a President
England. Germany succumbed to it in 1872, and with the $1,000,- elected by the American people, the English capitalist is in000,000 in gold exacted from France as a war indemnity, and in vesting his gold in our securities in greater volume than ever
the vain hope that she mij>\ht become the financial and com- before.
Confidence has returned to our land because the owners of
mercial rival of England, Germany destandardized silver and
erected the standard of gold. France, and what is known as the money are beginning to realize the folly of withdrawing it from
circulation,
and are wisely offering it for investment. In proof
Latin Union, did likewise at a very early date thereafter, and in
1873-74 the United States trailed in behind them all and took her of this I desire to submit an interview with one of the leading
place among the other nations that had been subjugated to the business men of this country, well known by reputation to every
Senator upon this floor. I refer to Philip D. Armour, of Chicago.
financial policy of England.
So long as England can maintain herself in the position of a The interview was published in the Herald of that city on the 1st
financial dictator , so long will she prosper at the expense of the day of this month:
The financial situation," said Philip D. Armour, yesterday," has changed.
nations which submit to her terms by permitting her to plan
It is wonderful how amazing and sudden it has been. Money, so scarce a
their financial policies.
few weeks ago, is now being offered from every source. All the banks are
It is estimated that the people of other nations of the earth trying to place funds now, and are urgent about it. W e had offers of money
pay English capitalists every year $600,000,000 in interest upon from eight different sources yesterday—$250,000 oven from New York. It
not be long before money is as cheap as anybody ever saw it. It is, and
the money they have borrowed from them. A t the very liberal will
has bten, all a matter of sentiment. The banks have had the money right
estimate of 5 per cent per annum this would indicate an in- along, some of them carrying over 40 per cent of their deposits in their redebtedness of $12,000,000,000 that the people of other nations serves, but they were carrying it to provide against something they appreNow, the fears are gone and the money is for use. There has been
owe to the money-lenders of England. The interest figures I hended.
the same change in the savings bank depositor. He catches the new spirit
quote are given upon the authority of the British vice-consul at as quickly as the banker. His money withdrawn, because of some dread, Is
St. Paul, Minn., who, in a recent interview on the financial ques- now back in the bank again.
tion, gave utterance tb these significant words:
So confidence, the fickle goddess of finance, is with us again.
Mr. P L ATT. Is the Senator willing to be interrupted?
How she must smile when she looks in upon this august assemMr. HANSBROUGH. I have no objection.
bly!
Mr. P L A T T . I should like to ask the Senator if he has ever
England will never consent to a bimetallic standard. Whatseen any statistics which he considers reliable as to the amount ever else may be said of the English capitalist he is not a fool.
of American indebtedness held by England or in England?
Henas loaned his money^oira-gold basis; he proposes to collect
Mr. HANSBROUGH. I have seen recently in the report of a it on a gold basis. If by law he or his agents can enhance the
speech made by Mr. Gladstone a statement to the effect that the value of his loan by compelling the debtor to pay in greater quanamount of American securities held in England would reach tities of products than would have been required when the loan
$10,000,000,000, upon which he reckoned the interest would be was made they will not hesitate to do so; they have not hesitated
about $500,000,000. The statement which I here quote is from to do so. Their philanthropy is not of the brand which hesitates
an interview with the British vice-consul at St. Paul, Minn., in cases of that kind. A few days ago the Democratic leader of
and he s?ems to speak as if he know exactly what he was talk- the House of Representatives, in a speech which was heralded
ing about.
to every part of the globe as being not only a most eloquent
Mr. P L A T T . If the whole indebtedness of the world to Great effort, but as carrying a most convincing argument in favor of
Britain is only $12,000,000,000, it is scarcely credible that, even repeal, used this illustration in proof of the proposition that our
if Mr. Gladstone said so, our Bhare of that indebtedness is $10,- trade was increasing in Europe and that England was sending
000,000,000. I have heard the amount stated all the way from her gold here to purchase our products. He said:
two to five billion dollars; and I have heard, too, that Mr. GladI hold in my hand a report from the Treasury Department of the exports
of wheat forfrhelast three months and for the corresponding three months
stone stated that our indebtedness to England was $10,000,000,- of
1892. It tells the whole sad story. I find that in lSirj there were exported
000, but I have never seen any reliable statistics on the subject. 28,004.336
bushels of wheat, and they brought t35.722.835. In the correspondMr. HANSBROUGH. Nor have I. I have only seen the two ing three months of 1893 there were exported 32.400,791 bushels of wheat, and
they
brought
524,599,794. That is to say, in 18>3 we exported 4,400,000 more
statements to which I call the attention of the Senator. Per- bushels of wheat
than In 1892 and received 1.200,000 less dollars for them.
haps Mr. Gladstone has been misquoted. He may have said that
If the wheat exported during June and July, 1893, had been sold at the rate
the world's indebtedness to English capitalists was $10,000,000,- which prevailed during the corresponding period in 1892, that is to say, at
90 cents a bushel, 120,760,719 would have been realized instead of $17,289,964,
000. The British vice-consul at St. Paul, Minn., said:
which shows that the agricultural producers of this country have sustuned
Great Britain is the great capitalist of the world. The accumulations of
wealth there, resulting from the Industry of cezitttriee, are almost unimaginable in amount. It is stated, for instance, that England receives $600,C0Q(<XX) annually merely as interest on her investments; and all this income,
together with new principal, the profit of her immense industries, is always
seeking occupation. The English have been the great investors of the world,
and they have tried almost all kinds of securities by way of experiment.
They were made doubtful about the desirabiUty of the American field when
they burned their fingers with our railroad stocks, at a time when speculation
was rife and the wrecking of railroads was a pecuUarly fashionable and remunerative pastime.
a loss of $3,500,000.
. From that time they fought a little shy of us, and elected to try their fortunes elsewhere. And never did money-loaner have a sadder experience.
They put money in Egypt and Turkey and are never Ukely to get it out,
even although they have to keep up an armed occupation in order to look
after their debtors.
I am strongly opposed to any radical change as regards the metallic circulation or Great Britain. * • * What would be tho position of the Banic
of England if bimetallism were to be introduced throughout Europe? I
venture to think an extremely dangerous one.
If the gentleman'had"been prosecuting the case agnlnat the
gold standard he could not have used a stronger argument. Of
course he made the specious plea that the fall in prices was
owing to the existence of our silver-purchasing Itetw.
I have said that England would never consent to a bimetallic
standard by international agreement or otherwise, and I have
the proof here from the pen and the mouth of the man who dicThe incidents enumerated here, Mr. President, transpired tates her financial policy. In a letter written to the governor
long before the Sherman act was passed. The interview con- of the Bank of England in November, 1886, Baron Alfred de
Rothschild said:
tinues:
Towards the close of this letter Mr. Rothschild made use of
If any Senator upon this floor or any one else who does not this significant language. I quote it literally:
agree with the repealers should even hint at the possibility of
As regards Germany, that country has also certainly a gold standard;
the debtors of the world going a-gunning for the creditors of but it would be difficult, if not impossible, to obtain any large amount of
tho world as it is here suggested that the creditors may be under gold from Berlin or from any of the branches of the Imperial State bank.
Then, again, as to Italy, there is a large amount or gold stored away there;
the necessity of going a-gunning for the debtors, what a howl but,
as in reality it dees not see daylight, that country might as weU not
would go up from the gold intrenchments.
have departed from its paper currency.
Therefore, to sum up the situation in a few wordf, London being the cenThe vice-consul goes on to say:
They pat millions in the Argentine Republic, and their greatest banking
house collapsed when the experiment turned to disaster. They put money
in Australia, and their losses there are counted to-day by hundreds of mil-
ter of the financial world, we have to be doubly careful to protect our stock
of gold; but if bimetallism were introduced throughout Europe we should
have much greater difficulty in doing so, and should be obliged to increase
our stock of sfiver whether It suited us or not.
6
COHTGEESSIOFAl* BECOBD;
- the volume of money decreased and; the average price of. commodities da*
creased steadily, reaching a lower point in 1887 ana 1893 thanany other time
since the circular was made up, 18fl .
In view of these facts, wha can deny that gold haa appreciated? Gold lsi
now coming back to this country, but under these conditions, namely, by
our farmers selling their cotton and wheat at a discount of 20 per cent to 50
r cent, which shows the purchasing powerof gold to be from SOpercentto
per cent premium. Question; Must our farmers continue to supply the
Advocates ofbimetaUism maintain that the fall In the price of sliver-has
basis of replenishing our gold, or will the powers that be sell gold bonds and so <
brought about a corresponding-flail in the-prices of various commodities.
This may o r may not be the case; hut, supposing the former hypothesis to lighten and distribute the burden of our gold importations until our supply
he correct I am not prepared to Bay thatit> would be a misfortune for Eng- • of the precious metal is sufficient to restore confidence?
land or tho world in general; nor do I share the opinion of certain distinMr. HANSBROUGH. I have here another publication on this
guished exponents of that theory who deplore the fact of the Indian exporter
being able to send wheat remuneratively to England, thus interfering teri- subject,, embracing the opinion of a very prominent politician in
ously with the-interests of the British farmer; but I hold that wheat at SO*, the State of. Massachuse tts. The article is taken from the Boston
a quarter, instead of 45s., is rather a blessing than otherwise.
kt
This letter, written in 1886, was incorporated in.what is known
as " tho proposition of Mr. Alfred de Rothschild," who was th.e
delegate from Great Britain to the ihternationalmonetary conference that met in Brussels last year. In the course of his remarks
tho baron made use of this language:
News Bureau, which is put down as a State street financial orAn unqualified plea of guilty to every indictment foundagainst gan," and both the articles were republished in the Home Market
the English financial system, the single gold standard. Mr. Club Bulletin^ very reputable publication, I am told. I will ask
Rothschild then proceeded to tell the conference that in his that this be also read by the Secretary.
judgment the cause of the fall in prices was overproduction and.
The Secretary read as follows:
the increased facilities of communication. He it was who set
One of Boston's ablest financiers, who has the reputation of doing his own.
the pace for this argument, which is now being used by the gold- thinking,
and whose name is as widely known throughout the country as
standard advocates all over the United States.. I h a v e already : that of any other Bostonian, in fact one who Is named in the daily press as
shown the folly of it. Whoever cares to examine the tables that a possible candidate for governor, says:
" I have no patience with this Idea of reckoning-everything from the comI have submitted will see it. But I will give the Baron's exact modity
value of silver. It is mathematically clear to my mind that if all
language, to which I call the attention of Senators who favor the silver in the world is to have its money valuation taken from it the value
the repeal of the Sherman'law as a means of securing inter- of the gold in the world will be doubled and the value of all property in the
world must be cut in two, and. a bushel of wheat or a bushel of corn will sell
national bimetallism;
for one-half its former price. At the coining ratio there are only about,
But, gentlemen, the question as to whether the fall in silver la really the equal amounts of gold and silver in the world, say a little under 54,000,000,000
cause of the fall In the value of certain commodities Is a very biff, one, and of each; and each has-cost the full measure of labor in production.
I should not be justified in talcing up your time by dwelling too long on tho
" T h e mistake that is made in the East here is to reckon every thing from
subject; b u t ! think the fall In tho prices of commodities is due to overpro- gold. It is like a man with a gold watch in one hand, and a silver watch in
duction, ovrlng in great part to tho development of new regions In all parts the other, declaring that the sUver watch is slow, when it may appear to
of the world and to the increased facilities of communication which Ttiave him later that the gold watch is fast. Dry rot has been the ruin of the busienabled these products to bo placed at low prices In the European,markets. ness world for twenty years, or since the demonetization of silver in 1873.
Apart from other considerations, It seems to mo impassible to come to an It is either universal bankruptcy or the remonetization. of silver..
universal arrangement In respect to a general currency question, as no two
countries are alike as regards their individual wealth,resources, and expen- :
Mr. HIGGINS. Will the Senator from. North Dakota yield for
diture;
a question?
But, gentlemen, although I venture to hope I have conclusively shown
Mr. HANSBROUGH. Certainly.
that bimetallism for England is an absolute impossibility, still the question
arises whether it is not possible to extend the use of silver generally and
Mr. HIGGINS. I ask him what justification this gentleman*
thereby stop a further fall, the disastrous consequences of which no one can fromJBoston,or the writer in that financial paper, had for saying
foresee;
" Bimetallism for England is an absolute impossibility," says
England's financier.
Mr. Rothschild then proceeded to make his famousJ^pcoposition," which was that the United States should, continue to
purchase 54,000,000 ounces of silver annually, and that all the
nations of Europe should join in the purchase of bullion to the
extent of £5,000,000, or $25,000,000. It was a very safe proposition for Mr. Rothschild to make, because he knew i t would,
not be accepted. He closed his argument in this languager
Gentlemen, I need hardly remind you that the stock of silver In the world
Is estimated at some thousands of millions, and if this conference-were to
break up without arriving at any definite result there would be a depreciation In the value of that commodity which it would be frightful to contemplate and out of which a monetary panic would ensue, the far-spreading
effects of which it would be impossible to foretell.
The conference did not reach a conclusion, but adjourned, expecting, however', to be reconvened upon the invitation of England; but that invitation has not been issued and will not be. On
the contrary, a resolution offered in the British House of Commons a few weeks ago to reconvene the conference was defeated
by a large majority.
And so I submit the facts embraced in the statements of he
who holds tho purse strings of Great Britain as a complete reply
to the proposition so often made here that if we repeal the Sherman, law we shall force England and the balance of Europe to a
bimetallic agreement.
Now, Mr* President, here in the East it is ganaually held that
whoever defends silver is either the owner of a silver mine oris
a political crank, and that in any event he hails from the West
or South. In this connection, I desire to submit a letter written
by a gentleman named Mr. J. M. Bemis, who is said to be a wellknown business man of Boston, Mass., and a careful student of
public questions. The letter is published in tho Boston.Daily
Advertiser of a recent date. I ask that the Secretary read i t at
the desk.
The VICE-PRESIDENT. The Secretary will read as requested.
The Secretary read as follows^
According to good statisticians, in the year 1890 there were four billions of
gold in the world as money, about four billions silver, and about four billions
of paper, or twelve billions of money for the world's commerce-, equal to
111 per capita for the world's inhabitants. If silver Is demonetized it not
only takes four billions of itself out as money, but also two billions of paper
issued against it. In other words, it reduces the money of tho world to six
billions instead of twelve billions, as it is to-day, or a per capita of 55.50,
equal to the per capita for the sixteenth century.
i t will be readily admitted by the average business man of to-day that the
per capita of money in the sixteenth century would not begin to do the business of tho world at this period. I have before mo a circular of January 23,
based on and taken from the journals of the London Statistical Society,
showing that from 1851 as tho volume of currency (gold) increased the average price of all commodities increased. The volume of money and the highe^t average price of commodities culminated in 1873. In thisyear Germany
demonetized silver and the scramble for gold commenced; f r o m this time'
473
that $4,000,000,000 of silver have been destroyed, or will be destroyed, or that there is any proposition to destroy it, or why
should misstatements like that be further circulated by the Senator's speech throughout h.is importsmt^Dnslituency?'
Mr. HANSBROUGH. I think the author of the communication holds to the general proposition that the demonetization of
silver practically retires all silver in the world as a money metal,
Mr. HIGGINS. I ask my friend, then, if silver is not doing
its money work now and here to the extent we use it; and so in
England, and so in Prance, with the eight or nine hundred million
dollars, or about that amount in India, and so on the world over?
Mr. HANSBROUGH. And so is all the paper money in the
world.
Mr. HIGGINS. Exactly.
Mr. HANSBROUGH. But every cent of it is redeemable in
gold.
Mr. DOLPH. I should like to ask the Senator from North
Dakota a question pertinent to the inquiry which was just made
bv the Senator from Delaware.
Mr. HANSBROUGH. Certainly.
Mr. DOLPH. Is there any considerable stock of silver in the
world, except that which is stored in the vaults of the Treasury,
which is not in use in the arts or in uso as money?
Mr. HANSBROUGH. I think a large share of the world'*
stock of silver is possessed and used by this country; but the
Senator from Oregon is, of course, a profound s tudent of finance
and will know more about thair technical question than. I do*
Mr. S T E W A R T . W i l l the Senator from North Dakota let me
answer?
Mr- HANSBROUGH. I will let the Senator from Nevada answer. He knows all about it*
Mr. S T E W A R T . The silver in the Treasury is not doing duty
asmoney. The Administration has refused to use it. It pays
out gold. The President says he is compelled to pay out gold
*under the Sherman act.
Mr. P L A T T . Are there any silver dollars in the Treasury
that can be paid out as the. lav/ stands to-day?
Mr. S T E W A R T . I t is the duty of the Secretary of the Treasury to coin sufficient silver to provide for the redemption of the
Treasury notes, but he will not do it. He is constantly treating*
it as pig silver, in the language of a prominent member of the
Cabinet, and that is what causes a great deal of the trouble.
The predecessor of the present President continued to treat silver as pig silver, and now Senators talk about using, it as money.
That is what I have been complaining of. The statute provides
that it shall be used as money, but tho Administration of alt
parties refuse to use it as money and have degraded It until,
as the great Senator from Iowa [Mr. A L L I S O N J stated, our silver certificates and Treasury notes and greenbacks all rest upon
8100,000,000 of gold.
CONaBESSIOHAX* KECOED.
Mr. DOLPH. I Bliould like to ask the Senator the question I
propounded to the Senator from North Dakota, whether except
the silver bullion stored in the Treasury of the United States
there is any silvor which is not used in the arts and not doing
money duty?
Mr. STEWART. Certainly none.
Mr. DOLPH. That is all there is.
Mr* STEWART. That is all there is, and you say there shall
not be anjr more outsido doing duty as money. There is not
enough of it, and prices are falling, as I showed before.
Mr. HANSBROUGH. The great difficulty with some gentlemen is that they have not yet learned torecognizo the difference
between silver as a money metal and silver as a commodity. I
thinkthat my friend from Delaware [Mr. HlGGlNS] is laboring
under that tribulation now.
Mr. STEWART. Let me say one word further, A gold basis
means that gold alone shall be the money of ultimate payment.
That is the way all monometallists speak of it. They say you
can have but one metal, and the object is to destroy the other
metal. Every argument that has been used by them from the
beginning of the conspiracy until now has been to show that wo
could use but one metal. That is the purpose of this conspiracy.
Mr. HANSBROUGH. Now, in connection with the interviews I had read at the desk, the News Bureau of Boston goes on
to Bzyr in commenting on this communication, that these are not
the views alone of the State street party, but are fully subscribed
to by somo of the representatives of the largest aggregation of
railroad and corporation wealth i n the country. So, Mr. President, these Boston viows, coinciding with Western views in a
great measure, I trust that the untruthful and unfair criticisms
against the people of the West may hereafter undergo somo modification. I commend the eminent Boston gentlemen who can
write and speak as these two have spoken to the tender mercies
of the young Senator from Massachusetts who modestly opened
the financial debate in this Chamber at the beginning of this
session—and then wanted to close it.
Boston is not alone in furnishing thoughtful opinions in behalf of silver as a money metal. At least two leading New York
dailies have come out as strong champions of bimetallism. I
refer to the Recorder and the Press. In a recent issue of the
latter journal I find a very succinct and intelligent statement of
the situation. I will not occupy the time of the Senate by having it read, because I do not wish to be charged with filibustering. I will ask leave to insert it as a part of my remarks:
Contention Is made by somo of the advocates of the single gold standard
that the value of gold is a permanent quantity, and that the quality which
peculiarly commends the metal as a measure of value is that it is stableIt stands; in shorr, that it is unchangeable. We venture the assertion that
there are few men of reputation in financial science in this or any other
country who would express such an opinion.
An examination of the subject will prove that the theory of the stability
of gold i3 completely untenable. If there were but two kinds of flesh food,
beef and mutton, and a law should bo passed forbidding mutton to be used
as food, what would be the effect unon beef? The price would at one© rise.
If there are but two money metals In the worl 1, silver and gold, and the law
should deprive silver of its money function, its debt-paying quality, is It
not equally certain, the demand being concentrated upon gold, that gold
would rise in value?
In that event, what phenomenon with respect to the prices of commodities
would be observed? Must they not decline, and for the reason that the volume of metallic money having been reduced by one-half, more commodities
would bs required to obtain possession of gold . And, as the volume of business expanded in a time of profound peace, creating a continuously increasing demand for gold, would not prices persist in falling all along the line?
These results could have been clearly foreseen in 1873 by any thoughtful
man. They are results that may be observed now by any man who will
merely open his eyes. Prices of all the staple commodities have been falling steadily for twenty years. The decline began in the year 1873, when silver was demonetized here and in Europe, and it is attributable chiefly to the
fact that the material in which all other values are measured has itself advanced in value. If further proof were required, It may be found in the fact
that prices In silver-using countries have not declined, but silver to-day
buys a3 much of any other commodity as it bought two decades ago.
It is asserted that this theory is not sound because the price of labor has
not fallen. But labor is not a mere inanimate commodity. It ha3 a resisting force and that force has been made effective by organization against the
influence which would thrust down wages. It is urged that mechanical inventions and improvements in processes have put prices down. But there
has been no great labor-saving invention of a revolutionary character since
1873. The cost of producing wheat in some regions has been reduced, but in
no such degree as to account for a 60 per cent fall in the value of the cereal.
Cotton has declined nearly 50 per cent; but in what particular are cottonculture and cotton-picking any less costly than they were twenty years ago?
No evidence can be produced tosustain the claim that theplanter has any considerable advantage now that he did not have then.
Every gold monometallist insists that the full remonetization of silver
would decrease the value of existing debts. This, indeed, Is the main argument used against remonetization. But, if to remonetize silver in 1803
would bs to decreaso debt?, was not the result of demonetization in 1873
necessarily to increase them? Can It be seriously held that the argument
is good in one ca>e and not In the other? Why would silver remonetization
decrease debt? Because it would depreciate gold. Why did silver demonetization increase debt? Because it appreciated gold. Suppose gold should
he demonetized, as silver was, and silver should be made the sole standard;
who will venture to urge that the value or gold would remain stable? Beyond dispute it would fall far below the value of silvor, for silver would at
;>nce advance. It is possession of the money function that give3 value to
jold, and the loss orlt that depreciates silver.
With the question of the morality of decreasing the dimensions of debt by
473
7
legislative action we do not propose now to deal. But the man who contends that It would be immoral to remonetizesilver for that reason must confess that it was equally immoral to demonetize It in 1873. The truth is that
every creditor is benettted by that which increases the general prosperity
of debtors. The man In New York who holds Kansas mortgages cannoVim
the long run, profit by a system that urges his debtors toward- bankruptcy.
What the wealth producers of all lands require Is that there should be such,
stability of values as will permit no- change for or against the creditor or
debtor, and that stability can be had only by resort to bimetallism.
# And now, Mr. President, a few words to those Senators on this
side of the Chamber who favor unconditional repeal. It is unnecessary for me to read the financial plank adopted at Minneapolis, or the financial planks in all previous Republican plair
forms. As a party, whenever in convention assembled, or whereever our speakers have proclaimed Republican doctrine, we have
declared for the freest and fullest use of silver as a part of the
currency of the country, and by inference, if not in express terms,
we have favored silver as a money metal. This doctrine and
these professions were proclaimed from every Republican stump
in the campaign of last fall, less than one year ago.
I do not know of a single instance wherein our speakers or
our Republican newspapers did not during that campaign and
during the campaign of 1890 declare that the law called the
Sherman law was one of the wisest and most beneficent measures ever passed by the American Congress. It was defended
because it possessed the virtue of providing constant additions
to the volume of our currency, filling a financial vacuum caused
tyr the retirement of national-bank circulation, and supplying us
with the additional money necessary for the business of a coun*
try whose population was ever increasing and whosa resources
were being rapidly developed.
What good reason can we give so soon after such arguments
were made for striking the law from the statute book? Where
is the consistency of our party leaders and of the great statesmen
to whom we younger Republicans have looked for counsel and
inspiration in coming here, within ten months of the date
they gave hearty indorsement of this law, and declaring against
it? How will my^ friends on this side of the Chamber return to
their constituencies next year to tell them, as they will tell them,
that the cause of the panic of 1893 was not in Republican financial legislation, but in the threatened uprooting of our protective
systenTDy the Democratic party. This is the Republican doctrine, and the doctrine that will be expounded by our speakers
in the next campaign.
Here we are with a minority of our party in both Houses of
Congress and a Democratic Executive in the White House. W o
have been driven from power by the long-continued and untruthful charges of our political opponents that the Republican party
was the friend of the money power and the ally of corporations.
Defeated by reason of the reception of these false charges, industriously and ingeniously circulated, a majority of Republicans
in this bedy and in the other wing of this Capitol stand in their
places to-day and enter a plea of guilty.
It is a sad and humiliating spectacle. Standing, as many of
you intend to stand when a vote is i-eached, by the moneyed interests of the opulent section of this country which of late years
has been hastening toward free trade and which threatens to
adopt a policy that will fill this country with the cheapness of
pauper nations, you anxiously await the opportunity to deal a
death blow to the producing interests of another section that has
followed the flag of the Republican party through all the vicis%
situdes of party warfare and until last fall never lowered the
banner.
own party leaders on this question is partially assuaged, and I
feel comforted and consoled while contemplating the stultifying
position occupied by the Democratic party as represented in the
Fifty-third Congress. In complete possession of every branch
of this great Government, your victory won upon repeated promises to the people that the great Democratic party was their true
political savior, and that it is the friend of silver; promises proclaimed from the house tops and at every crossroads that when
the great party of Jackson and Jefferson should come into power
you would erect a financial structure that would be the envy of
the world, your great leader at the other end of the avenue, and
a majority of your leaders here, now spurn and stamp upon the
"money^ of the Constitation," and await the moment when they
may strike it the last deadly blow.
You will never have a better opportunity than now to show
your love for " the money of the Constitution." I doubt if you
ever will havo another opportunity. Repeal this Sherman law
unconditionally and you bin d the country an d yourselves as a party
and as individuals to the single gold standard for the next four
years at least. You will know the full significance of such action
when you return to your homes. You will have enjoyed, perhaps, the little crumbs of patronage picked up in this city, and
have made a few devoted friends happy by giving them place,
CONGRESSIONAL EECOED.
8
but when you again meet the people who hare so long honored
you because you never before had a chance to deceive them, you
will then realize what it is to bear the burden of political responsibility.
Mr. President, my protest here now is against all legislation
uhat will oblige the producers in this country to pay their English or other creditors 2 bushels of wheat or 2 pounds of cotton
when 1 bushel or 1 pound was equivalent to the sum of tbe debt
at the date it was contracted.
Where is the advantage of a large per capita circulation if
all our money is subject to redemption in a small per capita of
gold? The per capita of gold in the world is a little orer $2.
This would give the United States about $150,000,000 as its share
of the world s gold. Of course we have more than that, because
of the great extent and diversity of our business interests, but admit ting that it is twice this amount, I submit that it is bad financial
policy to undertake to conduct the business affairs of a great
country like this upon so small a money basis.
Our per capita circulation is no more, no less, than the amount
of the redeeming money to each inhabitant. We may put into
use every ounce of silver the world produces, but so long as it
stands as a commodity, upon a gold basis, it is no better than
iron or tin or any other commodity. When the creditor wants
gold, liquidation begins, and our silver and our agricultural
products, which are always on a par with silver, must be sacrificed to supply him with it. The frequency of panics or " hard
times " depends entirely upon the selfish whims of the creditor.
473
This condition of things will not be changed until gold has
been partially relieved of the burden placed upon it as the money
of ultimate redemption; until some medium is selected to do a
part of the work now being done by gold, and in which gold
itself may be redeemed at par. Silver is the most convenient,
the mo3t stable money metal to be had for that purpose. Nature
intended it as an assistant to gold. It was so used for thousands
of years until avarice found out the way to make one metal more
valuable by retiring the other metal from use. Selfishness and
greed have driven silver out of use as a money metal and branded
it-as a commodity redeemable in gold.
Mr. President, the agricultural and mining wealth of this
country is as great in point of intrinsic worth and in point of
national importance as is the manufacturing industry. When
applying the law to the regulation of finance we are expected to
observe the same rule that has so long and so successfully prevailed with respect to commerce, viz: Protection to American
interests and American industry. The agriculturist and the
miner do not ask for any advantage over the manufacturer or
over persons having fixed incomes. They do not seek to discharge a single obligation of theirs in any kind of money worth
less thin any other kind of money. The imputation that they
entertain s Jch a desire is a base fabrication and a cruel slander.
They want a dollar whose purchasing power is no greater than
its paying power. Such a dollar would be based upon honesty,
equity, and justice. To such a dollar they are entitled. They
ask no more.
@FedFRASER