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"We have inscribed on our standard the old and time-honored ratio of 16 to 1, and will .make our fight under that banner." —Dubois, SPEECH Off HON. FRED T. DUBOIS, OF IDAHO, IX THIS SENATE OF THE, UNITED STATES, August 22, 1893. WASHINGTON 1893. SPEECH OF FEED T. DUBOIS. The Senate having under consideration the hill (S. 570) discontinuing the purchase of silver b u l l i o n - Mr. DUBOIS said: Mr. PRESIDENT: More than three years ago, when I was a Delegate in Congress from the Territory of Idaho, I commenced a speech in favor of silver in these words: The silver question, as w e understand it in the West, is a very serious one. W i t h us the contention f o r its restoration is not one of policy or expediency, but of justice and absolute necessity. W e l o o k upon the conspiracy which culminated in the demonetization of silver as the most gigantic robbery of modern times. W e think the injury that it has already inflicted upon the nation is m o r e terrible, so far as mere property is concerned, than would have been an exhaustive war with some first-class foreign power. I do n o t stand here to-day to speak in the interest of silver mines. They can bear the loss that the unrighteous robbery inflicted upon them, but the people at large, and more especially the producers of the East, can n o t m u c h longer stand u p under the shrinkage which has already driven all profit f r o m the f a r m and shop. I will allow those remarks to stand as the preface to the observations I have to make to the Senate on the very serious question and condition which we are now called upon to meet. Time has strengthened, not weakened, my opinion. , The current of debate has turned swiftly and sharply at this session of Congress. Those who have opposed free coinage in the past have always insisted that they were bimetallists, notwithstanding the fact that they opposed vehemently every proposition brought forward by th3 friends of silver which was designed to cause true bimetallism, and ridiculed as the veriest nonsense every effort of the silver men to stop falling prices. They arose in their places, each and every one of them, and proclaimed in loud and plain terms that they were bimetallists and favored the use of both gold and silver as money. During all the discussion (up to this session) I do not recall a single instance when any Senator or Member has avowed himself in favor of gold monometallism. But lo and behold, all of a sudden a change has occurred upon the face of the bimetallic moon. Silver disappears, and from the great prophet, President Cleveland, down through the ranks to the latest convert in Congress, all are satisfied that it is hopeless to keep up the fight any longer; that our only safety lies in a gold standard. It is a 'most sudden, strange, and unanimous transformation. They evidently think the time is auspicious to 63 3 4 throw oft the mask. They must believe that they can shackle the people before they can strike. I should like it if these honorable Senators who are now so earnest and anxious to fasten a gold standard upon the people of the United States would tell the country from whom they receive their instructions. As I understand the spirit of our Republic the people rule, and the representatives of the people carry out their wishes as expressed in conventions and at the polls. What convention or what vote of the people has instructed Congress to abandon bimetallism and adopt the gold standard? There is not a Senator on this floor who was not elected on a platform which pledged him to bimetallism. Certainly their instructions jdo not come from the people; for the Republican party and the Democratic party, in their national conventions last summer, declared in favor of bimetallism. The Populist party declared in favor of gold, silver, and paper, and not for gold alone. No national party, in any convention, at any time in this country has declared in favor of the gold standard, and in my judgment they never will. I most earnestly insist that no representative of the people has a moral right by his vote to bind the country to gold monometallism on his own hasty judgment. It is a betrayal of the people which will be bitterly resented by them. You were not elected or sent here for that purpose. On the contrary, each and every Senator is bound by every sense of honor to secure and continue forever the use of both gold and silver as money unless otherwise directed by the people. It will not do to resort to the transparent subterfuge that you are not contending for a gold standard, nor will it avail to try to fool the people by saying you will discontinue the purchase and coinage of silver and continue to coin gold, and if this does not bring relief you will return to the coinage of both metals. I am quite familiar with the line of argument of those who say that they are still in favor of bimetallism. The distinguished Senator from Massachusetts [Mr. HOAR], for whose ability I have the most profound respect and for whose integrity I entertain the highest opinion, told us that there are about $600,000,000 of gold and about $600,000,000 of silver in the country, and if you pass the proposed law you would still be on a bimetallic basis, because the Government would continue to keep the metals on a parity. The venerable Senator from Vermont [Mr. MORRILL] reiterated this statement, and I have no doubt that every one of our opponents will repeat it, for it is their last straw. But if you now stop the coinage of silver, as silver is lost through abrasion or other causes you come nearer and nearer to a gold standard, and it is simply a question of a short time when you reach it. You are not bimetallists when you repeal the act of 1890. Other countries besides our own float different moneys; they are on the gold standard, and so you will be. You will still outlaw silver. There can be no true bimetallism until you open your mints to the coinage of both gold and silver, until you treat both metals equally under the law. I say I am familiar with their only argument, and it is not worthy of serious consideration and is untenable. 8a 5 President Cleveland's message, which you-heard read in this Chamber on the 8th of this month, closed in these words: I earnestly recommend the p r o m p t repeal of the provisions of the act passed July 14,1890, authorizing the purchase of silver bullion, and that other legislative action m a y put beyond all doubt or mistake the intention and the ability of the Government to fulfill its pecuniary obligations in m o n e y universally recognized by all civilized countries. As a matter of fact no money is universally recognized by all civilized countries. Money, whether it be gold, silver, paper, or what not, is recognized only in the country which makes and supports it. When gold or silver money gets beyond the borders of its own country it is a commodity and is valuable only as such. The President might have been a little more exact in his language in a state paper, but what he meant by "money universally recognized by,all civilized countries " was gold. The message could not have been plainer, and those Senators who indorse it indorse a gold standard without equivocation. It has been admitted time and time over by Senators who helped to pass the act of 1873, which demonetized silver, that they were ignorant of the fact that it did> demonetize silver. There was no sentiment in the country at that time for the demonetization of silver, and had the question been discussed and submitted to the people the act of 1873 could not have become a law. All admit this; all agree that the people were cheated and wronged, yet for twenty years they have vainly struggled to undo this wrong. If in the broad light of day you follow the President's message, repeal the Sherman act, strike down the last prop of silver, and announce that you intend to put this country on a gold basis, double the debts of the producers, double the value of money, and reduce by one-half the products of labor, how long will it take the people to right the wrong and how will they do it? In contemplating financial legislation in this country since 1873 I do not know if they could ever emerge from their thralldom by peaceable and legal methods. It is quite evident that they would get no relief from this Administration unless they secured a two-thirds majority in both branches of Congress. Prices have been falling in the United States since 1873. Wheat, cotton, corn, oats, all the products of labor and the daily rewards of labor itself have gone down until there is no longer universal prosperity. There has been individual prosperity among those who have fixed incomes and large accumulations of money. It has never been successfully controverted, nor can it be, that silver measures the value of all commodities. While on account of unjust and vicious legislation silver has fluctuated in value as compared with gold, it has yet served as a perfect measure of value of the products of labor. If you strike it down still further, as contemplated by the President's message, refuse to purchase or to coin it, and make it bring in the market what it is worth to make spoons of, you will take a fearful risk and responsibility. It is a new proposition to put the United States on a single money b isis, and before it is done the people should be consulted. They were called upon to decide in regard to the tariff. Their decision does not meet my judgment as to what is for their best interests, but after repeated discussionsconventions, and elections, they decidedprac- 15 tically in favor of free trade, and the Democratic party has their indorsement to remodel the tariff so that it shall be a tariff for revenue only. I believe in the protective doctrine of the Republican party, and think the country will desire a return to it after trying a tariff for revenue only; but no one who believes with me has just cause for complaint because we were beaten, for the issue was fairly made and presented to the people, who in this Republic are and should be the judges. It is not so with this financial question, however. If it should be submitted to a vote of the people whether they would adopt bimetallism or monometallism, nine-tenths of them would decide in favor of bimetallism. I am of the opinion that the monometallists would not carry a single State in the Union. It is urged that there is a scarcity of money and lack of confidence in the country, which is destroying business of all kinds. While we of the West point to our idle mines and closed stores, the New Englander says that the hum of their factories has ceased; that the thousands of men and women dependent upon them are out of employment; the men of the South aver there is no living price for their cotton; that they can not even get the money to move it in order to keep actual distress away. So the complaint comes from all quarters. None escape: not even the bankers in the cities. The President oE the United States gravely tells us to repeal the purchasing clause of the Sherman act, and go home in peace. Having said this to us, he informs the country that his duty is done, and it now remains for the members of Congress to do theirs—whereupon he takes a rest and recreation. Senators stand up in this Chamber and declare that this era of panic and disaster must be stopped by the immediate repe tl of the Sherman act. No one says what is to be done after it is repealed, and no one tells us how its repeal will make more money or restore confidence. Through the Sherman act over $3,000,000 of currency is added to our stock of money each month. The average individual can not see how you will relieve the scarcity of money by stopping the issuance of $3,000,000 each month. The junior Senator from Massachusetts [Mr. LODGE] did inform us, I think, that the repeal of the Sherman act would restore confidence in London, and that the English money-lenders would then buy up some of our most valuable stocks and bonds, and thus money would flow in. The people in this country who need money most and who have lost confidence are. not those who have valuable stocks and bonds to sell. The gold monometallists, ever since trouble began last spring, have charged all of our ills to the Sherman law, and now they urge that peace will be restored by its repeal. They do not specify how. Perhaps they are loth to prophesy, inasmuch as their prophecies in the early spring are shown to be idle in middle summer. With one accord they proclaimed that gold was leaving us on account of this poor and friendless and fatherless piece of legislation. Gold is now returning, despite the fact that the act is still with us. I do not claim that gold is returning because we still have this .law, but I might so assert with as much reason as they insisted that it was leaving us because we had it. 88 7 If the monometallists are determined to put us on a gold basis it would be manlier to say so plainly and give their reasons than to thinly disguise their intentions by such weak inventions. They themselves know that the Sherman act is not responsible for the present crisis. If they much longer continue this masquerade they will have to do as the priests of old did. In early days it was customary for the priests to offer up lambs and oxen to appease the wrath of offended deities. The sacrifices were made in the presence of the people, with great pomp, cei'emony, and high-flown language. All went well and solemn for some time, but long before the folly and hypocrisy of the ceremony dawned upon the people the priests had laughed in their sleeves and at the masses. finally it became such a joke that, to avoid detection, they P greed among themselves that when invoking the Deity to spare them His wrath, they would turn their backs upon one another to avoid laughing at the absurdity of the performance. The junior Senator from Massachusetts [Mr. LODGE], in his interesting speech the other day, said that there were 300,000 people out of employment in Massrchusetts and 3,000,000 in the Northern States, and intimated so tha t the masses of the people at home would understand him, that this was due to the Sherman act. I think, perhaps, he got his figures a little high; but , no matter. He did not say plainly to the Senate that these millions of people were out of employment and in distress on account of the Sherman act, for he was facing us and would have been compelled to laugh. I agree fully with the distinguished Senator from New Hampshire [Mr. GAELINGER], that the uncertainty as to what the dominant party will do with the tariff, is the prime if not the sole cause which blighted the industries of My ssachusetts and the Northern States. The gold monometallists are not very explicit in stating their reasons why they wish to takeaway the money function of silver. If they were, it would be easier to argue with them. As a rule they content themselves with abusing silver and silver advocates. I will endeavor briefly to answer some of the objections which they urge against silver as I recall them. We hear much of the dishonest silver dollar which is worth but 54 or 65 or whatever .cents the bullion it contains will sell for. I a m pleased to bear witness to the intelligence of the Senate that such nonsense is seldom uttered in this Chamber. A silver dollar will buy as much as a gold dollar and is ES highly prized. If, through unjust, unwarranted, persistent, and indefensible legislation, a silver dollar has depreciated in value as compared with a gold dollar, the gold dollar, through this same legislation, is more dishonest than the silver. Just eo much as the silver dollar has depreciated, the gold one has appreciated. The silver dollar, as always, most nearly measures the value of commodities. It is the dollar of the farm, the factory, and plan^ tation, and goes hand i n hand with the results of labor. Just so much as it is depreciated and is dishonest, just so much is the toiler injured and just so much the gold dollar is appreciated and dishonest and the creditor benefited. The gold advocates express fear that we can not maintain bimetallism on account of the overproduction of silver. I call their 88 8 attention to the very exhaustive and carefully prepared statement of the distinguished Senator from Missouri [Mr. VEST], who proved conclusively that when the production of silver exceeded that of gold more than thirty times, silver was worth more than 129.29. Unless .silver is legislated*against, and when it has been treated equally with gold as a money metal, no matter what the disparity in production between the two, their relative value on the agreed ratio has varied but a trifle. In addition to the facts presented by the distinguished Senator [Mr. VEST], it must not be overlooked that for centuries gold and silver have been the money metals of the world. Both metals have, inconsequence, been struggledfor,hoarded, and preserved by the nations of the earth, until now there is an enormous accumulation of each. I do,not know that anyone could give the amount of each now in the world. It is known that there is about as much of one as of the otherj and that there is somewhere near $4,000,000,000 of each. The world's output of gold in 1892 was $130,816,627, and of silver $196,605,184. About two-thirds of the gold production is used in the arts, so that but $43,605,542 of the output of 1892 was used for coinage. About one-tenth of the silver production is used in the arts; so, assuming that all of it was brought to the mints which were open for its coinage, there was of the production of 1892 but $176,944,666 coined into money. In considering the effect of the production of the precious metals on their value you can not overlook the amount of these metals now doing service as money. The product as it is accumulated year by year is added to the general stock, which it can affect only in the slightest degree. The further fact in this connection, that the business of the world is constantly increasing in every avenue of trade and carries with it a demand for more money which is stable and certain, can not be ignored. Almost all of the known world has been explored and prospected by seekers for the precious metals. It is altogether unlikely that any new worlds remain undiscovered, so that it is a fair assumption that while through improved machinery the gold and silver output may increase some for a few years, it is almost certain that the increase will not be such as to unduly affect prices, when such increase is considered in connection with the uses of gold and silver in the arts and the swelling volume of business resulting from the constantly increasing population. It has sometimes beenurged by the opponents of the free coinage of silver that its cost of production has been so cheapened tjiat its ratio of 16 to 1 to gold should be enlarged, and that it ought not to be worth 1.2929. This charge is usually made by those far removed from the mining countries and who have no practical knowledge on the subject. As a rule they take some of the highest grade and greatest producing mines which are in full operation and base their calculations upon them. The consensus of opinion of those who have studied and followed the business of mining is that it has required and now requires more than a dollar to dig out a dollar's worth of silver. Be this as it may, for I will admit that it is somewhat conjectural, if their argument is good as applied to silver why is it 83 9 not equally so as applied to gold? Silver has always been found in conjunction with gold, lead or copper, granite, porphyry, and other refractory substances, so that the process of extracting the silver is and always has been expensive. Nine-tenths of all the gold has been found in the sand and in streams, in the shape of nuggets, and has cost in labor and expense but a trifle as compared with silver. While it is true that most of the placer mines have been exhausted the fact yet remains that a very respectable percentage of the gold output still comes from placer diggings. That which is found in quartz costs no more in its separation than does silver. I do not think the cost of production is a pertinent argument, but, inasmuch as I have heard it used in this Chamber against silver, I submit, in fairness, that it should also be applied to gold. The contention of bimetallists that there is not enough gold in the world to serve as a safe basis for money can not be avoided or put aside. The gold-st indard men seem to dodge this dilemma. The distinguished Senator from Massachusetts fMr. HOAR] in his very able and ingenious argument admitted that he was not clear on this point. He tried to save himself in his advocacy of a line of policy which, it seems to me, must put this country on a gold basis, by saying that he would not consent to the passage oE any law which would forever close our mints to the free coinage of silver. The doubt in his mind as to the adequacy of gold to serve as a basis was evidently so great that he is not willing to go farther than an experiment. The output of gold in the United States in 1892 was $33,000,000. The gold product varies but little from year to year, so that we can s ifely calculate on $33,000,000 for sometime to come as the annual yield. When you refuse to purchase and coin silver, you cut off 40 per cent of this annual yield, for 40 percent of the gold comes in conjunction with silver. It is a rare thing when a sufficient amount of gold is found in this combination to make it profitable to mine for the gold alone. This will leave your annual gold yield $19,800,000. Two-thirds of this is used in the arts, which leaves but $6,663,333 each year for coinage. When you stop the coinage of silver gold will be more valuable, and, in consequence, more and not less of it will be used in the arts, leaving even less for coinage. It will not be surprising if all of the $19,800,000 is so used. The more precious gold becomes the more anxious the rich people will be to have it for ornaments, tableware, etc. They will pay more for it in bullion than the owner of it can receive by having it coined, and, in consequence, he will not take it to the mint. But even should no greater amount be used in the arts than at present, does anyone contend that the addition of $6,663,333 a year is a sufficient increase of the money basis to satisfy the demands of our constantly growing business and our ever-increasing population? 1 have already adverted to the fact that the world's output of gold in 1892 was $130,816,600, one-third of which, or $43,605,533, was coined, the balance being used in the arts. If $6,663,333 yearly addition to our own money basis is not sufficient for our wants, surely forty-three and one-half millions is not sufficient for the entire civilized world. You will be compelled, almost at 88 10 once, to institute some other kind of money. What sort will you choose? The silver advocates will never consent to fiat money. They have no patience with those who favor irredeemable paper money. They wish all forms of money based on the precious metals. There is not enough of gold alone to serve as a safe basis, and all of the honorable Senators who are now striving to put us on a gold standard know it. Is their hostility to silver so great that they prefer to run the risks of fiat money rather than hold to bimetallism, which has been tried and found so successful in this country? By this legislation which you would now enact you strike down silver, which is one-half of our money. When you do that you make gold twice as hard to get as now. It will require twice as much of all products to secure a dollar then as it does now. There can be no cessation in the struggle for money. All the people must have it. The more you curtail it the harder it is to get, and when you contract it to such narrow limits as you propose, such a demand will go up from the people for an enlarging currency as will force recognition. In my judgment, you should pause now and consider well whether, if at this time you stop the coinage of silver, you will not lay the foundation for such misery and unrest as will result in an agitation among the people the culmination of which will be fiat money. I am opposed to any; change in the ratio. I voice the sentiment of all the representatives of the silver-producing States when I say that " w e have inscribed on our standard the old and timehonored ratio of 16 to 1, and will make our fight under that banner". Our mines are now closed, our business stagnant, and we realize that a ratio of 20 to 1 would make our canons resound once more with the joyful sound of the pick and shovel, would quicken the arteries of trade and partially restore prosperity, because it would make silver worth about $1 an ounce; but while we may not be versed in the science of finance or the arts and polish of the more civilized and luxurious East, we are a game people who will stand by our friends the wage-earners and the producers ol the world, who are making this fight on principle. The proposition to alter the ratio is a compromise of principle. The legislation of 1S73, which demonetized silver, and the persistent attacks which have been made upon it since, have depreciated the value of wheat, cotton, and all the products of labor, and have appreciated the value of gold. A larger ratio means a surrender of a portion of this advantage which has been gained by the bondholders. It means that the depreciation of commodities and the appreciation of securities shall be unalterably fixed upon the people. Mr. MCPHERSON. Would it interfere with the Senator if I should ask him a question? Mr. DUBOIS. Not at all. Mr. McPHERSON. I do not know but that the information may be contained in a statement which the Senator has already made, and which I did not correctly hear or understand, but do I understand him to say, speaking for the interests which he 88 11 represents, and, I suppose, the interests of the silver States very largely, that he would not agree to a ratio of 20 to 1? Mr. DUBOIS. I said that while I live in a silver-producing State, which would be benefited by a ratio of 20 to 1,1 and those who live in that section of country would stand by the wageearners and the producers who are making this fight, not, as even the Senator himself would say, for silver, but for principle. The gold monometallists are in the habit of prophesying as to the direful results of all silver legislation. Their prophecies have not been fulfilled in the past, and it is likely they will not be in the future. They say that silver can not maintain itself at a ratio of 16 to 1; that it will drive gold out of the country, and put us on a silver basis. How do they know this? It did not do it before 1873, and it is simply a guess on their part that it will now. The bimetallists are willing to stipulate that it will keep its place firmly if you establish the ratio at 16 to 1. They are willing to further stipulate that if it does not, they will then agree to a higher ratio. It is mean and unjust to establish a ratio now, based upon the bullion value of silver as compared with gold. Gold has been given every opportunity; has had the especial care of legislation, while silver has been battered down and legislated against for twenty years. Now, when silver is weakest, through unjust legislation and at the end of a long struggle, you condemn it for being weak. Remove the restrictions; put it back where it was; give it the sanction of the same laws which you give to gold, and if it does not maintain itself then we will talk to you about increasing the ratio. Mr. President, I represent, in part, a State which has been a subdivision of the United States for but little over thirty years. Idaho was created a territory in March, 1863, and a State in July, 1890. In this brief time it has given to the world $150,000,000 m gold and some $75,000,000 in silver. It is entitled to some consideration for this contribution. It is peopled with Americans who are your kin. The young, the strong, the brave and ambitious from the New England, the Northern, the Southern, and the Middle-western States make up her citizenship. They have redeemed the deserts, have compelled the reluctant hills to yield up their treasures, and have braved hardships which you know not of, that the world might be enriched. They and their neighbors have laid deep and strong the foundations for mighty commonwealths which will be the pride and bulwark of American institutions in years to come. When you strike down silver, when you say to the Rocky Mountain region that you will neither purchase nor coin any more of this precious metal, you strike a blow at your kindred which is as cruel as it is unjust. I would say to you that there should be no doubt in your mind as to the wisdom of your action before you commit this deed. You should be very certain that the result will justify the sacrifice. You should remember, also, that all of our supplies except those for food are purchased from you, and that all of our debts are owing to you. Either yourselves or your allies in this legislation own our railroad, State, county, and municipal bonds and other securities. You can not paralyze us without injuring yourselves. We can survive. Men 88 12 who have conquered the frontier will neither starve nor beg, nor cease to be law-abiding, law-preserving, and patriotic Americans. I ask leave, Mr. President, to embody as a portion of mv remarks some resolutions passed by the State convention held in Idaho a few days ago. I shall not take up the time of the Senate by reading them, but ask that they be made a portion of my remarks. Thev are worthy of careful perusal. The P R E S I D I N G O F F I C E R (Mr. P L A T T in the chair). Without objection the request will be agreed to. The paper referred to is as follows: AN ADDRESS TO THE PEOPLE. The c o m m i t t e e on resolutions presented the f o l l o w i n g memorial, which was adopted unanimously: To the, People of the United States: T h e N a t i o n a l C o n g r e s s is n o w assembled i n e x t r a o r d i n a r y session, h a v i n g been s u m m o n e d t o m e e t f o r t h e p u r p o s e of p r o v i d i n g a r e m e d y f o r the extraordinary business conditions w h i c h have f o r weeks convulsed the c o u n t r y . T h e financial q u e s t i o n is t h e a b s o r b i n g t h e m e of d i s c u s s i o n , a n d a m u l t i t u d e of plans are b e i n g p u t f o r t h f o r c h a n g i n g t h e status of silv e r i n o u r m o n e t a r y s y s t e m . I n this c r i s i s o f o u r financial h i s t o r y t h e p e o ple of t h e S t a t e of I d a h o , t h r o u g h their d u l y a c c r e d i t e d d e l e g a t e s a s s e m b l e d m S t a t e c o n v e n t i o n , p r o m u l g a t e t o the w o r l d t h e i r a b i d i n g belief that n o final s e t t l e m e n t of this g r e a t q u e s t i o n c a n be effected u n t i l C o n g r e s s shall r e s t o r e t h e l a w p r o v i d i n g f o r t h e f r e e a n d u n l i m i t e d c o i n a g e ,of silver, at t h e r a t i o t o g o l d of 16 to l . \ I n s u p p o r t of this belief w e ' s u b m i t the f o l l o w i n g f a c t s f o r t h e c o n s i d e r a t i o n of o u r f e l l o w - c i t i z e n s , a s k i n g t h a t t h e y b e c a r e f u l l y w e i g h e d b y all w h o desire t h a t t h e p r i n c i p l e s of r i g h t and j u s t i c e shall b e s t a m p e d upipn t h e fiscal l e g i s l a t i o n of t h e c o u n t r y . W e k n o w w e a r e r i g h t , a n d w e b e l i e v e t h a t e v e r y s i n c e r e m a n w h o w i l l clear h i s m i n d of p r e j u d i c e and e x a m i n e the s u b j e c t l o g i c a l l y w i l l e v e n t u a l l y s h a r e o u r belief u p o n this a l l - i m p o r t a n t i s s u e . T h e q u e s t i o n b e f o r e the c o u n t r y is w h e t h e r its b u s i n e s s shall be e s t a b l i s h e d u p o n a basis of b i m e t a l l i s m o r b e finally m a d e t o c o n f o r m t o a s i n g l e g o l d s t a n d a r d . GOLD ALONE INSUFFICIENT. I t is v e r y g e n e r a l l y a d m i t t e d t h a t g o l d a l o n e d o e s n o t c o n s t i t u t e a s u f ficiently b r o a d b a s i s t o sustain the v a s t s t r u c t u r e of c r e d i t w h i c h r e p r e s e n t s t h e t r a d e and i n d u s t r y o f the w o r l d . T h i s p o i n t is s o w e l l e s t a b l i s h e d t h a t n o a r g u m e n t is n e e d e d t o s u s t a i n i t ; it i s v o i c e d all o v e r o u r E a s t e r n States, and e v e n b y t h e g r e a t financial and p o l i t i c a l leaders o f the U n i t e d K i n g d o m ; a n d yet, s t r a n g e a s it a p p e a r s , m u l t i t u d e s o f t h e A m e r i c a n p e o p l e , r e n d e r e d desperate b y a situation which they do n o t understand, are willing to f o l l o w t h e lead o f the b o n d h o l d i n g class i n t h e a t t e m p t t o finally establish t h e s i n g l e g o l d s t a n d a r d in this c o u n t r y . MOTIVES OF THE MONOMETALLISTS. "Why w a s t h e p o l i c y o f m o n o m e t a l l i s m i n a u g u r a t e d , and w h a t h a v e b e e n i t s r e s u l t ? I t was devised f o r the p u r p o s e of e n h a n c i n g t h e v a l u e of m o n e y and s e c u r i t i e s . T h e p u r c h a s i n g p o w e r o f g o l d h a s b e e n a p p r e c i a t e d v e r y n e a r l y 100 p e r c e n t , and t h e a p p r e c i a t i o n h a s d o u b l e d the a c t u a l v a l u e of t h e w o r l d ' s t h o u s a n d s of m i l l i o n s of d o l l a r s o f i n t e r e s t - b e a r i n g securities. I t h a s b e e n e n o r m o u s l y p r o f i t a b l e t o the h o l d e r s of t h o s e s e c u r i t i e s ; it h a s b e e n d r e a d f u l l y d i s a s t r o u s t o all w h o s e l a b o r c o n t r i b u t e s t o t h e f u n d f r o m w h i c h t h o s e securities, p r i n c i p a l a n d interest, a r e paid. H e r e i n t h e W e s t w e h a v e b e e n led, b y r e a s o n o f t h e d i r e c t and d i s a s t r o u s effect u p o n o u r l e a d i n g i n d u s t r y , t o g i v e t h i s s u b j e c t t h a t c a r e f u l t h o u g h t n e c e s s a r y t o a r r i v e at c o r r e c t c o n c l u s i o n s . T h e p e o p l e of t h e E a s t h a v e n o t g i v e n i t s u c h t h o u g h t ; t h e y h a v e carelessly accepted t h e e x p l a n a t i o n t h a t t h e p r i c e o f the p r o d u c t o f h u m a n l a b o r h a s d e c l i n e d b e c a u s e o f o v e r p r o d u c t i o n . T h a t i s a m o n s t r o u s a s s u m p t i o n . W e tell y o u p r i c e s h a v e s h r u n k bec a u s e of t h e a p p r e c i a t i o n of pasic m o n e y , a s a r e s u l t of the a p p l i c a t i o n o f t h e p r i n c i p l e of m o n o m e t a l l i s m . Y o u w i l l a g r e e w i t h u s i n this p r o p o s i t i o n w h e n y o u h a v e g i v e n t h e s u b j ect t h a t i n d e p e n d e n t s t u d y a n d i n v e s t i g a t i o n t o w h i c h its i m p o r t a n c e entitles it. ALL VALUES SHRINK. "We w a n t t o tell y d u a g a i n , t h a t t h i s r u l e o f m o n o m e t a l l i s m , if it b e finally fixed u p o n us, m u s t a p p l y t o all classes of p r o p e r t y . V a l u e s m u s t all s h r i n k . T h e v a l u e of y o u r lands, t h e v a l u e of y o u r buildings, t h e v a l u e o f y o u r f a c tories, t h e v a l u e o f y o u r r a i l r o a d s , m u s t all be p a r e d d o w n . Y o u c a n n o t es83 13 c a p e f r o m i t ; neither t h e efforts of financiers n o r the i n t e r v e n t i o n of cleari n g - h o u s e a s s o c i a t i o n s c a n p r e v e n t the fall. W h e n the p r o c e s s of s h r i n k a g e shall h a v e "been finished, 75 per cent of o u r s t o c k s w i l l h a v e been e n t i r e l y w i p e d off t h e b o a r d of the e x c h a n g e s . T h o u s a n d s of m i l l i o n s of d o l l a r s o f y o u r i n v e s t m e n t securities w i l l n o t be w o r t h as m u c h as t h e p a p e r u p o n w h i c h t h e y are p r i n t e d ; t h e y r e p r e s e n t o n l y a n e q u i t y ; the b o n d h o l d e r c o m e s first, and the v a l u e of the p r o p e r t y w i l l n o t be sufficient t o m o r e t h a n p a y the b o n a w h e n finally m e a s u r e d b y t h e s i n g l e g o l d standard. BENEFITS o r FREE COINAGE. F r e e c o i n a g e of silver w i l l e n l a r g e the v o l u m e of basic m o n e y ; it w i l l s t o p t h e f a l l of p r i c e s and establish t h e m u p o n a m u c h higher p l a n e ; i t w i l l a d d t o the r e w a r d s of all w h o t o i l ; it w i l l i n c r e a s e w a g e s ; i t w i l l m a k e t h e b u r d e n s of life e a s i e r in the h o m e s of the m a s s e s ; i t w i l l l i g h t e n the s k y of ind u s t r y ; it w i l l m a k e m u s i c a m o n g the spindles; i t w i l l p u t t h a n k s g i v i n g i n t h e h e a r t s and s o n g s o n the lips of m i l l i o n s ; i t w i l l o v e r t u r n the b o n d h o l d e r s ' c o n s p i r a c y and take t h e y o k e of h o p e l e s s p o v e r t y f r o m t h e n e c k s o f t h o s e w h o h a v e been g r o u n d i n t o the d u s t b e n e a t h the w h e e l s of this j u g g e r n a u t of g o l d . M o r e o v e r , w e w a n t to s a y t o t h o s e w h o o w n f a c t o r i e s t h a t a r e s t a n d i n g idle, t h a t f r e e and u n l i m i t e d c o i n a g e of silver w o u l d at o n c e c r e a t e a n e w and a l m o s t b o u n d l e s s m a r k e t f o r t h e m . I n M e x i c o a n d the o t h e r L a t i n - A m e r i c a n c o u n t r i e s , b u s i n e s s h a s suffered t o s u c h an e x t e n t t h a t t h e s h e l v e s of t h e m e r c h a n t s s r e e m p t y . F r e e c o i n a g e in t h e U n i t e d S t a t e s w o u l d a t o n c e b r i n g a flood of o r d e r s f o r g o o d s ; s u c h fluctuations i n e x c h a n g e w o u l d be d o n e a w a y w i t h . T h i s trade w o u l d a m o u n t t o tens of m i l l i o n s o f d o l l a r s a n n u a l l y ; i t w o u l d p e r m a n e n t l y t u r n t h e g e n e r a l b a l a n c e of trade i n o u r f a v o r and w o u l d o b l i g e E u r o p e t o send i t s b a l a n c e t o u s in g o l d , aye, i n g o l d . W h i l e d r a w i n g t h e silver o f M e x i c o w e w o u l d d r a w the g o l d o f E n g l a n d , and t h e b i m e t a l l i c U n i t e d S t a t e s w o u l d b e c o m e the m o n e y center of the world. Our t r a d e w i t h all t h e s i l v e r - u s i n g c o u n t r i e s w o u l d b e c o m e direct» t h u s building u p our merchant marine. MR. SETD'S PROPHECY. T h e r e m a r k a b l e p r o p h e c y o f the F r e n c h e c o n o m i s t , Mr. E r n e s t S e y d , i s w e l l w o r t h q u o t i n g i n this c o n n e c t i o n . S o f a r b a c k as 1871, t w o y e a r s b e f o r e s i l v e r w a s d e m o n e t i z e d i n t h e U n i t e d States. M r . S e y d u s e d these w o r d s : " I t Is a g r e a t m i s t a k e t o s u p p o s e that the a d o p t i o n of a g o l d s t a n d a r d of v a l u e s b y o t h e r s t a t e s besides E n g l a n d w i l l be beneficial. It w i l l o n l y lead t o t h e d e s t r u c t i o n of the m o n e y e q u i l i b r i u m h i t h e r t o e x i s t i n g and c a u s e a f a l l i n the value of silver, f r o m w h i c h England's trade and the Indian silver valuat i o n s w i l l s u f f e r m o r e t h a n all o t h e r i n t e r e s t s g r e v i o u s l y . T h e r e w i l l b e a g e n e r a l d e c l i n e of p r o p e r t i e s all o v e r t h e w o r l d . * T h e s t r o n g d o c t r i n a i r i s m e x i s t i n g in E n g l a n d a s r e g a r d s t h e g o l d v a l u a t i o n i s s o blind t h a t w h e n t h e t i m e o f g e n e r a l d e p r e s s i o n sets in, then w i l l be t h i s s p e c i a l f e a t u r e : T h e e c o n o m i c a u t h o r i t i e s of t h e c o u n t r y w i l l r e f u s e t o l i s t e n t o t h e c a u s e s h e r e f o r e s h a d o w e d . E v e r y p o s s i b l e a t t e m p t w i l l be m a d e t o p r o v e t h a t t h e d e c l i n e of c o m m e r c e is d u e t o all s o r t s o f c a u s e s and i r r e c o n c i l a b l e m a t t e r s . T h e w o r k i n g m a n and his s t r i k e s w i l l b e t h e first c o n v e n i e n t t a r g e t . T h e n s p e c u l a t i o n and o v e r t r a d e will h a v e their turn. M a n y o t h e r a l l e g a t i o n s w i l l be f o u n d c o n v e n i e n t b y t h e financial w r i t e r s . T h e g r e a t d a n g e r o f t h e t i m e w i l l b e t h a t a m o n g all this c o n f u s i o n and s t r i f e E n g l a n d ' s s u p r e m a c y i n c o m m e r c e and m a n u f a c t u r e s m a y g o b a c k w a r d t o a n e x t e n t w h i c h c a n n o t b e r e d r e s s e d w h e n t h e g r e a t cause, t h e d e m o n e t i z a t i o n of silver, b e c o m e s r e c o g n i z e d and the n a t u r a l r e m e d y is a p p l i e d . " T h e l a s t c l a u s e e x p r e s s e s t h e o n l y p o r t i o n o f t h i s p r o p h e c y unfulfilled, a n d clearly presents a w a y b y w h i c h the United States m a y again obtain c o m mercial supremacy. THE ADVOCATES OF SOUND MONEY. I n a d v o c a t i n g this c o u r s e w e c l a i m t o b e t h e r e a l c o n s e r v a t i v e c h a m n l o n s o f s o u n d m o n e y . T h e a d v o c a t e s of the g o l d s t a n d a r d w e l l k n o w t h a t t h e r e is n o t e n o u g h o f t h e i r f a v o r i t e m e t a l to s u s t a i n t h e s y s t e m t h r o u g h o u t t h e w o r l d , a n d y e t a r e s o p r e j u d i c e d against t h e use o f s i l v e r t h a t t h e y p r e f e r flat m o n e y a s a n e c e s s a r y assistant. W e h a v e b e e n o n a g o l d standard s i n c e 1873. I t h a s b r o u g h t s t a g n a t i o n and r u i n , and yet, s o f a r f r o m t u r n i n g t o s i l v e r t o h e l p p u l l t h r o u g h t h e t r o u b l e , t h e y i s s u e d fiat m o n e y , g o o d a m o n g b a n k e r s o n l y , i n defiance of t h e U n i t e d S t a t e s statute, w h i c h i m p o s e s a t a x o f 10 p e r c e n t u p o n s u c h c i r c u l a t i o n . T h e b a n k e r s of v a r i o u s cities h a v e a l r e a d y i s s u e d §50,000,(XX) in c l e a r i n g - h o u s e c e r t i f i c a t e s i n a c c o r d a n c e w i t h t h i s s c h e m e . W e c o n d e m n t h i s e v a s i o n o f t h e l a w as a n a t t e m p t t o a v e r t t h e n e c e s s i t y o f f r e e c o i n a g e b y d o u b t f u l financial e x p e d i e n t s . W e e a r n e s t l y r e c o m m e n d t h a t C o n g r e s s m a k e certificates issued u p o n d e p o s i t of s i l v e r coin full legal tender as the c o i n s o deposited. £S 14 R e c e n t e v e n t s e m p h a s i z e d t h e f a c t that* t h e r e s t o r a t i o n of silver t o free, u n l i m i t e d c o i n a g e at a r a t i o of 16 t o 1 i s t h e p a r a m o u n t issue b e f o r e the A m e r i c a n 'people, and the p e o p l e of I d a h o h e r e b y r e c o r d their c o n v i c t i o n t h a t if C o n g r e s s shall fail t o p a s s a f r e e - c o i n a g e l a w at t h i s session it w i l l b e n e c e s s a r y f o r all bimetallists, l a y i n g all o t h e r issues aside, t o u n i t e i n a p o l i t i c a l o r g a n i z a t i o n w h o s e s o l e a i m shall be t o r e c t i f y the d i s a s t r o u s e r r o r c o m m i t t e d i n the d e m o n e t i z a t i o n a c t of 1873. AN AMERICAN POLICT. T h e r e i s a v o r y l a r g e and r e s p e c t a b l e c l a s s of o u r f e l l o w - c i t i z e n s w h o w o u l d ha g l a d t o see silver r e s t o r e d , b u t w h o d o n o t t h i n k the United S t a t e s c o u l d m a i n t a i n t h e p a r i t y of t h e t w o m e t a l s i n t h e a b s e n c e of a n i n t e r n a t i o n a l a g r e e m e n t . W e w o u l d c a l l t h e a t t e n t i o n of all s u c h t o a s t a t e m e n t m a d e b y t h e late M r . B l a i n e , that t h o s e h a v e a l w a y s been m o s t s u c c e s s f u l i n dealing w i t h t h e financial affairs of o u r G o v e r n m e n t w h o h a v e had the g r e a t e s t c o n fidence i n t h e r e s o u r c e s and c r e d i t of t h e c o u n t r y , "VVe believe t h e U n i t e d S t a t e s is s t r o n g e n o u g h , and t h a t its w e a l t h and credit a r e s o g r e a t t h a t i t c a n d e c r e e w h a t the p o s i t i o n o f s i l v e r i n t h e b u s i n e s s w o r l d is t o be. W e k n o w t h a t E n g l a n d f o r eighty-seven y e a r s h a s m a i n t a i n e d a fixed v a l u e u p o n g o l d ; w e k n o w t h a t S p a i n fixed the r a t i o of s i l v e r and g o l d t h r o u g h o u t t w o c e n t u r i e s ; w e k n o w t h a t t h e little K i n g d o m of P o r t u g a l a t a l a t e r d a t e fixed t h a t r a t i o and l o n g m a i n t a i n e d it, a n d w e b e l i e v e t h a t w h a t E n g l a n d h a s d o n e w i t h g o l d and w h a t S p a i n and P o r t u g a l at different t i m e s did f o r silver c a n n o w b e d o n e b y the g r e a t U n i t e d States of A m e r i c a f o r t h e latter m e t a l . W e a s k t h a t i t be tried. W e are n o t a s k i n g t h a t a d e p r e c i a t e d c u r r e n c y be established. If, u n d e r a f r e e - c o i n a g e l a w , t h e p a r i t y o f g o l d and s i l v e r s h o u l d , a f t e r a f a i r trial, f a i l t o be sustained, the p e o p l e of I d a h o w o u l d b e first t o s u p p o r t s u c h o t h e r l e g i s l a t i o n as s h o u l d be s h o w n t o be n e c e s s a r y . C o m r o m i s e s m a y b e o f f e r e d ; w e a r e o p p o s e d t o a n y and all c o m p r o m i s e s . W e n o w t h a t t h e g o l d - s t a n d a r d c o n s p i r a t o r s w i l l t r y a n y e x p e r i m e n t as a c o m p r o m i s e p r o p o s i t i o n ; and w e c h a l l e n g e t h e m t o t r y t h e s i m p l e p l a n of the c o n s t i t u t i o n a l f r e e c o i n a g e of b o t h m e t a l s . W e t h r o w d o w n t h e g a u n t l e t t o t h e m ; w e k n o w t h a t t h e y w i l l n o t take i t up, b e c a u s e t h e y a r e a w a r e t h a t w e a r e r i g h t a n d t h a t this m e t h o d w o u l d h o p e l e s s l y w r e c k all t h e i r c a r e f u l l y laid plans; s o w e appeal to the people of the country, asking them t o unite t h e i r v o i c e s w i t h o u r s i n d e m a n d i n g t h e a d o p t i o n of t h e o n e p l a n w h i c h t h e l o g i c of t h e s i t u a t i o n s u g g e s t s . NO* OVERPRODUCTION OF MONET. T h e r e a r e t h o s e w h o f e a r w e m i g h t h a v e t o o m u c h silver, a l t h o u g h t h e s a m e p e r s o n s w o u l d n o t e n t e r t a i n s u c h a f e a r in r e l a t i o n t o g o l d . T h e r e c o u l d be n o s u c h t h i n g a s t o o m u c h m e t a l l i c m o n e y . T h e h i s t o r y of the w o r l d p r o v e s t h a t t h o s e p e r i o d s w h i c h h a v e witnessed t h e g r e a t e s t p r o d u c t i o n of t h e m o n e y m e t a l h a v e been the m o s t p r o s p e r o u s t h a t t h e h u m a n r a c e h a s k n o w n . G r e a t p r o d u c t i o n o f t h e s e m e t a l s e n r i c h e s the arteries o f com* m e r c e , s t i m u l a t e s e v e r y d e p a r t m e n t o f h u m a n i n d u s t r y , and s p r e a d s s m i l i n g p r o s p e r i t y a m o n g a b u s y , h a p p y p e o p l e - B u t t h e r e c a n b e n o h o p e of p h e n o m e n a l p r o d u c t i o n . T h e l i f e of a m i n e i s limited. T h e l a r g e s t p r o p e r t i e s b e c o m e e x h a u s t e d i n a v e r y f e w y e a r s , and n e w m i n e s c o m e f o r w a r d n o w n o f a s t e r t h a n o l d p r o d u c e r s a r e c l o s e d . T h e m i n i n g t e r r i t o r y o f this c o u n t r y has been well explored, and but f e w bonanza districts can remain t o b e d i s c o v e r e d . T h e p r o d u c t i o n m a y r e a c h s o m e w h a t h i g h e r figures u n d e r f a v o r a b l e c o n d i t i o n s , b u t i t w i l l fluctuate a n d c a n n o t p e r m a n e n t l y b e m u c h larger than during recent years. A FOREIGN FOE. I n c o n c l u s i o n w e w o u l d p o i n t o u t t h e f a c t t h a t the h e a d q u a r t e r s o f t h e b o n d h o l d e r s ' a n d a n t i s i l v e r c o n s p i r a c y a g a i n s t t h e p e o p l e is in G r e a t B r i t a i n . W i t h i n a f e w m o n t h s the B r i t i s h p r e m i e r , w h e n i n t e r r o g a t e d in P a r l i a m e n t u p o n t h e a t t i t u d e of his G o v e r n m e n t in r e g a r d t o a l a r g e r use of s i l v e r , s t a t e d t h a t G r e a t B r i t a i n w o u l d n o t assent t o s u c h a p o l i c y . " A l l t h e w o r l d o w e d E n g l a n d , " h e said, and* t h e d e b t s w e r e p a y a b l e i n g o l d . I t m i g h t b e p h i l a n t h r o p i c t o t a l k a b o u t m a k i n g p a y m e n t easier t h r o u g h a n e n l a r g e d u s e o f s i l v e r , b u t t h a t w o u l d n o t be i n h a r m o n y w i t h B r i t i s h b u s i n e s s p r i n c i p l e s . S o w e s a y t o o u r f e l l o w - c i t i z e n s , the c o n t e s t is p r i m a r i l y a g a i n s t a f o r e i g n f o e ; i t is i n t h e i n t e r e s t o f t h e h o m e s o f the m a s s e s of o u r p e o p l e ; w e fiimply ask o f e v e r y p a t r i o t i c c i t i z e n t h a t h e i n v e s t i g a t e t h e s u b j e c t i n d e p e n d e n t l y of t h e i n f l u e n c e s t h a t his s u r r o u n d i n g s m a y t h r o w a r o u n d h i m , l o r w e k n o w t h a t s u c h a n i n v e s t i g a t i o n m u s t , i n e v e r y Instance, lead t h e Inq u i r e r i n t o t h e r a n k s o f t h e s u p p o r t e r s of c o n s t i t u t i o n a l f r e e c o i n a g e . 83 O
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