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Washington, 1). C., January 27, 1892*

The committee met at 10:30 a. m. for the purpose of hearing the Director of the
Mint on the free-coinage bill. Mr. Leech stated that he was present on the invitation
of the committee, not for the purpose of making any speech or argument on the silver
question, but to furnish the committee any information in his possession bearing on
the subject. He submitted^ some tables on the production, movement, and use of
gold and silver for recent |>eriods.
The CHAIRMAN. Any gentlemen desiring to ask Mr. Leech any questions are at
liberty to do so.
Mr. BARTINE. I would like to ask Mr. Leech if he has any data or information
which affords an explanation of tlie extraordinary fall in the price of silver in the
face of the increased purchases by the United States ?
Mr. LEECH. It is difficult to tell. In my judgment it is on account of the increased
product and lack of demand for silver over and above that which the United States
buys. *It is said that a large amount of Australian silver is being placed on the
European market. About twelve or fifteen million ounces were produced in Australia
last year from lead ores. That silver goes to the European markets, and it has had
a tendency to glut those markets. There is not enough active demand for silver in
Europe, and that lias had a tendency to lower the price.
Mr. BAIITINE. Can you tell anything about the present amount of silver in sight?
Mr. LEECH. I can tell you from the report from the New York Stock Exchange the
amount of silver in sight; that is, the silver on deposit with the American Security
and Trust Companv, and upon which it issues certificates. The amount to be a little
over 3,000,000 ounces.
Mr. BAIITINE. That is all you know about it?
Mr. LEECH. That is all in sight; how much more there is no one can tell.
Mr. BARTINE. The amount is smaller than it was a year ago?
Mr. LEECH. It has not changed materially, recently. It goes down to about
3,000,000 ounces after the Government has completed its monthly purchases, and
then goes up to 4,000,000 ounces in the interim before purchases are renewed. It is
a little less now than it was a year ago. On July 1, 1890, it was 6,000,000 ounces.
On July 1, 1891, it was 5,000,000 ounces.
Mr. BARTINE. Suppose that there were none at all on the market, would that have
an effect upon the price ?
SIR. LEECH. I think it would have a decided effect.
Mr. BARTINE. Suppose that our purchases had been sufficient in amount to completely absorb all the silver product of the world, what would have been the effect
on the price?
Mr. LEECH. The price would be higher.
Mr. BARTINE. What would have been the maximum price in that case?
Mr. LEECH. I would not like to say absolutely. It would depend somewhat upon
how that affected the demand for silver from other quarters.
Mr. BARTINE. I am assuming that we would purchase a sufficient amount to take
it all.
Mr. LEECH. If we were to buy all the silver and pay gold for it, it would probably
remain at the price we paid for it.
Mr. BARTINE. I mean to buy it just as we buy it now.
Mr. LEECH. We are paying gold for it now.
Mr. BARTINE. We are paying notes now.



Mr. LEECH. Well, notes redeemable in gold on presentation.
Mr. BARTINE. That is a question.
Mr. LEECH. The man who sells knows it to be so.
Mr. BARTINE. Suppose we bought all of the supply; what would be the price of it?
Mr. LEECH. Just as long as we could pay gold for it
Mr. BARTINE (interposing). I mean, just as long as we pay for it as we are now
Mr. LEECII. We are now paying gold for it.
Mr. BARTINE. Suppose we take it all in some other way; would it not then be out
of the way f
Mr. LEECH. What other way?
Mr. BARTINE. In any way by which the market would be relieved of the surplus.
Mr. LEECH. Can you suggest a way?
Mr. BARTINE. Well, by free coinage, for instance.
Mr. LEECII. AS long as wo can pay $1.29 an ounce in gold for it
Mr. BARTINE (interposing). Just so long will we maintain the parity of silver
with gold.
Mr. LEECH. Yes, sir; at our rates.
The CHAIRMAN. I do not dispute your proposition that we are practically paying
gold for silver bullion. I want to kuow if that of itself is not making a greater demand upon gold and increasing the price of it, as compared to silver bullion? '
Mr. LEECH. YOU mean the fact that we are paying for silver bullion in gold? That
is a matter of argument.
The CHAIRMAN. In other words, if the $54,000,000 of paper that we are now issuing
is redeemable in gold, and not silver to be redeemed in gold, we are increasing to
that extent the demands for gold for redemption purposes, are we not?
Mr. LEECH. I think we are increasing the amount of legal-tender money to the
relief of gold.
The CHAIRMAN. But do you suppose it is a relief of the gold to issue paper redeemable in gold?
Mr. LEECH. Yes, sir; as long as we have a gold standard.
The CHAIRMAN. YOU take the position that hoarding gold for redemption purposes
is not making a demand for gold.
Mr. LEECH. We are not hoarding for redemption purposes.
The CHAIRMAN. There are now $100,000,000 of gold in the Treasury.
Mr. LEECH. It was put there to redeem United States notes, to keep specie payments in the United- States.
The CHAIRMAN. Is it not held for redemption purposes ?
Mr. LEECH. I do not consider that that gold is held there for any purpose, except
to maintain gold payments.
The CHAIRMAN. It makes an increased demand for gold.
Mr. LEECH. I do not see how it makes any present demand for gold, because it has
been there since 1878.
The CHAIRMAN. The Secretary of the Treasury, in his statement before the New
York Chamber of Commerce, spoke of these silver bullion certificates being redeemable in gold, and he claimed that he had authority at any time, under the act authorizing the issue of those Treasury or bullion notes, to procure gold for their redemption, even if he was compelled to sell bonds.
Mr. LEECH. AS I understand the Secretary's position, it is that all gold in the
Treasury of the United States is available for any of the obligations of the Government for which gold payment is demanded, and that he would use any gold in the
Treasury to meet any obligation for which gold is demanded; and that if the amount
of gold in the Treasury should get too low to maintain gold payments, he could, in
his judgment, under existing law, sell bonds to secure more for that purpose.
The CHAIRMAN. YOU take the position that that does not necessarily of itself make
a new demand for gold?
Mr. LEECH. I do not think it does. I think we have plenty of gold in the Treasury.
The CHAIRMAN. Do you think if you undertook to carry out the proposition of
paying gold for the redemption of these notes, that that would raise the price of gold f
Mr. LEECH. Do you mean that if we go into the market and sell bonds?
T h e CHAIRMAN. Y e s , s i r .

Mr. LEECH. It might. They might give us greenbacks. In my judgment, if we
sold bonds for gold it would not affect the quality of the United States legal-tender
note at all.
The CHAIRMAN. If a holder of one of these notes should present it and demand
gold, would the Secretary pay in gold or in greenbacks?
Mr. LEECH. He would pay in gold if the party demanded gold.

The CHAIRMAN. If he sold bonds for the purpose of procuring gold he would hold
the gold?
Mr. LEECH. What would be the difference t They could draw it out again with
legal-tender notes.

Mr. WILLIAMS, of Illinois. If it is not in the Treasury they could not pay it out.
Mr. LEECH. But it would he there, practically.
Mr. WILLIAMS, of Illinois. You are not going to buy, are you F
Mr. LEECH. We are not going to buy until we need it. I think the Secretary
would buy just as soon as the stock of gold in the Treasury got so low that anybody
would have a reasonable doubt of our ability to redeem in gold on demand
The CHAIRMAN. According to your view, it makes no difference if all of this bullion
was recoined and those notes were redeemed ?
Mr. LEECH. It makes no difference as to the amount of gold the Treasury holds.
The CHAIRMAN. If all that bullion was coined into standard silver dollars and
notes were issued upon it and redeemed in silver, would not that of itself relieve the
strain that is made upon the gold for redemption and reduce the value of gold as
compared with silver?
Mr. LEECH. If there is any strain it would reduce it; but I do not think there is
any strain.
The CHAIRMAN. If we make our money redeemable in gold and not silver would
that tend to raise the price of gold and reduce that of silver?
Mr. LEECH. It would have a tendency to make a divergence between gold and'
The CHAIRMAN. The divergence has nothing to do with it.
Mr. LEECH. Not in this country, so long as our money is all interconvertible into
The CHAIRMAN. Why not in this as well as in any other country?
Mr. LEECII. Because everybody in this country is satisfied that the Government
will always redeem in gold or its equivalent.
The CHAIRMAN. Does not that very fact very greatly increase the divergence between gold and silver bullion?
Mr. LEECH. I do not think it has anything to do with it. I think the price of silver bullion is fixed entirely by the quantity on the market and the demand for it,
and not by anything else.
The CHAIRMAN. You think primary money has nothing to do with it ?
Mr. LEECH. I think it has not.
The CHAIRMAN. You think that if we coined silver dollars enough to redeem every
piece of paper and every bond, and if it was so used, that gold would still retain its
value as to silver?
Mr. LEECH. DO you mean if we had free coinage?
Tho CHAIRMAN. I do not care, but if we coined sufficient silver for that purpose.
Mr. LEECII. I believe that whenever the people of this country are satisfied that
the obligations of the Government will only be redeemed in silver dollars that gold
will go to a premium. The purchasing power of the silver dollar will then be lower.
Tho CHAIRMAN. If we coined sufficient silver for all redemption purposes, and it
was understood that all our obligations would be redeemed in silver instead of gold,
would not that of itself servo to some extent to lessen the strain upon gold?
Mr. LEECH. I think it would have a tendency to immediately put gold at a premium.
The CHAIRMAN. YOU think gold would go to a premium, as compared with silver?
Mr. LEECH. I think so.
The CHAIRMAN. HOW would it be as compared to commodities ?
Mr. LEECH. Well, you are now going into a pretty broad field. I do not profess
to be an expert on commodities. , In my judgment the price of commodities is determined more by other causes than the relative value of gold and silver.
The CHAIRMAN. IS it not a fact that silver bullion and commodities usually rise
and fall together?
Mr. LEECII. No, sir. I am very certain it is not. The price of silver bullion under
the operation of this act has fluctuated from 91 cents to $1.20 an ounce, while the
price of commodities has been higher the last year than in 1889 and 1890.
The CHAIRMAN. Some commodities have been higher.
Mr. LEECH. The general range of commodities has been higher.
Mr. BARTINE. Have not the fluctuations which have taken place during the last
year upon prices been unusual and extraordinary—has it not been the result of speculation ?
Mr. LEECH. I do not know what it has been the result of. Doubtless there has
been speculation. Just how far that has affected prices I can not say.
Mr. BARTINE. Yon have expressed the opinion that the price of silver bullion is
owing to tho amount of surplus on the market. In that I fully agree with you. Of
course, you understand, and we all understand, that the price of that product is
measured in gold. Now, if in any way the value of gold is raised, does it not necessarily depress the price of silver?
Mr. LEECH. AS an economic principle that is true.
The CHAIRMAN. Do you claim that since 1 8 7 3 — I believe it is generally admitted
that silver has fallen about 30 per cent, or gold has risen by that much; that all other



commodities, or most commodities, as measured by gold, have fallen in the same proportion 1
Mr. LEECH, There is no question but that prices have fallen since 1873. Silver has
fallen considerably more than some other commodities.
The CHAIRMAN. IS it not a fact, as shown by most statistics, that since 1873 silver
bullion, as well as all commodities, has fallen in the same ratio as compared with
Mr. LEECH. I do not think they have fallen in the same ratio. Silver has fallen
The CHAIRMAN. I want to know if, according to statistics, the fall of silver and
other commodities has not been the same as the rise in gold ?
Mr. LEECH. There has not been any uniform range.
The CHAIRMAN. There are different ranges in different periods. Take the average,
say fifteen or twenty years, is it not about the same?
Mr. LEECH. The price of silver bullion is lower to-day than it ever has been in
modern history, and yet the prices of commodities are higher than they were a few
years ago, in 1889.
The CHAIRMAN. That may be. I am not taking a period of six months or a year,
but a longer time.
Mr. LEECH. I do not profess to be an expert on the prices of commodities.
The CHAIRMAN. We should confine ourselves, not to this country, but to the general level of international prices. Prices might abnormally rise here, as they have
done in some articles of agriculture.
Mr. LEECII. The i>rices of commodities are fixed in the markets of the world, and
not in our market.
The CHAIRMAN. I do not understand that in the world in general there has been
any increase in the prices of commodities.
Mr. LEECH. Within the last year there has been.
The CHAIRMAN. There may have been in some years, but not on the average. I
think if you take cotton, there has been a decided fall in the price.
Mr. LEECH. Yes; and wheat and other products have risen.
The CHAIRMAN. Any recent period of six months or a year is not a fair test.
Mr. WILLIAMS, of Illinois. If the value of the Treasury notes depends on the confidence of the people that they will be redeemed by the nation in gold, why not issue
more greenbacks instead of buying silver?
Mr. LEECH. We buy silver under a law of Congress.
Mr. WILLIAMS, of Illinois. Why would not paper money be just as good?
Mr. LEECH. The absorption of this large amount of silver by the Government has
had a tendency to steady the price of silver. Moreover, it shows a disposition on the
part of this republic to help sustain silver in the hope of a restoration of bimetallic
Mr. WILLIAMS, of Illinois. If we take silver, should we not also redeem in silver?
Mr. LEECH. I think it might make a decided difference in the value of the notes.
Mr. WILLIAMS, of Illinois. Would it not make a positive difference between silver
and gold bullion as to their value ?
Mr. LEECH. I do not think it would increase the price of silver bullion.
Mr. WILLIAMS, of Illinois. How can the fact that we simply issue notes for silver,
and that those notes are redeemable in gold raise the price of silver any more than
if we should issue greenbacks?
Mr. LEKCII. It is a question of supply and demand. By purchasing a large amount
we reduce the supply or increase the demand.
Mr. WILLIAMS, of Illinois. You mean supply of gold?
Mr. LEECH. No, silver.
Mr. TAYLOR. YOU said that in a certain time gold would go to a premium. Wliat
did you mean by that ?
Mr. LEECH. If we undertook to buy all tlie silver that was offered at our coinage
rate in gold, we would not have gold enough to do it, and gold would go to a premium, because our legal-tender money could only be redeemed iu silver, and we
would be on a silver basis.
Mr. TAYLOR. Do yon mean that gold would go higher in the markets of the world?
Mr. LEECII. Certainly not. I mean that it would go out of circulation in this
country, and would be at a premium as compared with our other money.
The CHAIRMAN. You mean silver would be at a discount ?
Mr. LEECH. Yes, sir; that is the same proposition.
Mr. WILLIAMS, of Illinois. That is assuming that gold has a fixed value, and that
everything else is changeable. That is a disputed proposition.
The CHAIRMAN. I believe you gave us a table giving the amount of circulation.
M r . LEECH. Y e s , sir.
The CHAIRMAN. I wanted'to

considered in circulation.

take the amount of money outstanding that would be

Mr. LEECH. The table which I gave you, showing the approximate stock of gold and
silver in the world, has never before been made up for publication in its exact present form.
The CHAIRMAN. Without taking the time to foot up the amount redeemable in gold,
I find that in the United States the paper money approximates $900,000,000,.taking
the greenbacks, national-bank notes, and gold and silver certificates.
Mr. LEECH. YOU should leave out the national-bank notes, because they are sustained by bonds put up and not by the gold in the Treasury.
The CHAIRMAN. What are the bonds sustained by?
Mr. LEECH. By the credit of the Government.
The CHAIRMAN. And what is the credit of the Government sustained by?
Mr. LEECH. Well, we might go on and enlarge upon that proposition until we
would ask what is the world sustained by.
The CHAIRMAN. Well, what is it sustained by?
Mr. LEECH. The bonds are sustained by the credit of tho Government, and it represents the borrowing power of this people.
The CHAIRMAN. In what does the Government pay ?
Mr. LEECH. That is a matter for future development.
The CHAIRMAN. Does it pay in coin?
Mr. LEECH. Yes, or checks; just as we pay for our silver.
The CHAIRMAN. I understand your position to be, and you stated awhile ago, that
the policy of the Government was to redeem these bullion notes in gold?
Mr. LEECH. The policy is to redeem them in gold if anybody insists upon it.
The CHAIRMAN. Then all our money is redeemable in gold?
Mr. LEECH. Practically.
The CHAIRMAN. If the"national-bank notes must be redeemed in gold, and every
thing else is paid in gold (because we propose to pay it in gold), then you have
$900,000,000 issued, and you have onlv $100,000,000 to redeem with.
Mr. LEECII. We have more than $270,000,000.
The CHAIRMAN. You do not claim that there is any particular part of that set apart
as a redemption fund?
Mr. LEECH. I do not. Others do.
The CHAIRMAN. HOW piuch have von in excess?
Mr. LEECH. We have about $120,000,000 of free gold.
Mr. PIERCE. In regard to the promise to pay and as to what is back of the promise
to pay, does that make it good?
Mr. LEECH. When we can borrow money at 2 per cent it is pretty good.
Mr. PIERCE. Iftliatisthecase why is not a jiiece of paper promising to pay money
equally as good?
Mr. LEECH. It is pretty near as good; There is a dollar's fiat in one and 25 cents
of fiat iu the other.
Mr. PIERCE. DO you prefer the fiat?
M r . LEECH. I d o n o t s a y s o .

The CHAIRMAN. It seems to me that greenbacks are as good as bonds if both rest
on faith.
Mr. PIERCE. DO I understand it to be your position that the bond is made good by
the promise of the United States to pay?
Mr. LEECH. Yes, sir. It is the borrowing power of the Government.
Mr. TAYLOR. It is good, provided our credit is not carried too far?
Mr. LEECH. I do not think that we could place our bonds at 25 per cent if we were
on a silver basis.
Mr. BARTINE. Of course you do not come here as an expert on the general subject
of political economy, but there is one question I would like to have you answer before you go, because it is a monetary question and bears directly upon what we are
considering. We have been speaking of the surplus bullion upon the market, as fixing the price of silver bullion and furnishing the market quotations. Now I care
not in what way that bullion was taken off the market; if it had all been taken off and
converted into coin, whether by America or by any other country, what would the
market quotations of silver be based upon?
Mr. LEECII. It would probably be based upon the coining rate of some country if
there was no bullion on the market.
Mr. BARTINE. The value of that silver would fix the value of all silver.
Mr. LEECII. If one country alone should undertake to pay gold for all the silver
Mr. BARTINE. I am speaking of simply taking the bullion off the market.
Mr. LEECH. How take IT off? You have got to pay for it.
Mr. BARTINE. Suppose there were open mints. I ani putting a hypothetical question. The silver simply flows into the mints. There is nothing left on the market in
the form of bullion; and I ask you, in that case, upon what the market price of silver
would be based ?
Mr. LEECH. Just as soon as we did other countries who wanted to get on a gold
standard would sell silver.



Mr. BARTINE. That is assuming that some country has silver and is so anxious to
get rid of it that they would submit to a loss?
Mr. LEECH. Yes, sir; that is what it means.
Mr. BARTINE. IS it not a fact that the great objection to silver is based upon its
assumed depreciation ?
Mr. tiEECH. Yes, sir.
Mr. BARTINE. If it is all taken off the market in any way, depreciation disappears.
Mr. LEECII. Coining it into silver dollars does not take it off the market.
Mr. BARTINE. Why not?
Mr. LEECH. It has not taken it off in Mexico and other countries which have free
Mr. BARTINE. DO I understand you to say that the United States and Mexico
furnish parallel cases?
Mr. LEECII. Mexico has open mints.
Mr. BARTINE. Mexico is a silver-standard country. There is a connecting link between the two metals ?
Mr. LEECII. It is a silver-standard country. So that all comes back to the effect
of redeeming in gold.
Mr. BARTINE. The whole theory of bimetallism is this, is it not? That under free
coinage both metals, being coined, are thrown into the common reservior of the currency, and just as long as they remain interconvertible parity is maintained.
Mr. LEECH. I have no doubt that if several nations did that, that would practically be the case.
Mr. WILLIAMS, of Illinois. You say there were 193 millions of dollars of gold in
the Treasury on the 1st of December?
Mr. LEECH. There are $270,000,000 in the Treasury in gold.
Mr. WILLIAMS, of Illinois. How much of that is represented by gold certificates ?
Mr. LEECH. All except $120,000,000.
Mr. WILLIAMS, of Illinois. In figuring on this matter, you do not count both the
gold in the Treasury and the certificates issued upon it?
Mr. LEECII. N O ; we have separate columns, and there is no duplication.
Mr. WILLIAMS, of Illinois. You would not count both as money in figuring upon
the amount of currency in the United States, whether in circulation or not ?
Mr. LEECII. NO, sir; there is no duplication.
Mr. WILLIAMS. Is it the policy of the Government to redeem silver certificates in
Mr. LEECH. We practically do.
Mr. WILLIAMS. DO you say that they have been redeemed in gold?
Mr. LEECH. Yes, sir; practically. So long as we receive them in payment for the
obligations of the Government that is practically paying them in gold.
Mr. WILLIAMS. There is nothing in the law or the certificates to that effect ?
Mr. LEECH. NO, sir. It is on its face a promise to pay the silver dollar.
Mr. WILLIAMS. Do you know what amount of the new Treasury notes have been
redeemed in gold ?
Mr. LEECH. I speak without any positive knowledge, but I would say about
$5,000,000 or $6,000,000. We do not use that term iii the same sense that you do.
We speak of redemption as destruction.
Mr. BARTINE. What do you mean by the new Treasury notes ?
Mr. LEECH. The notes of 1890. We have redeemed them over the counter in gold
to the extent of four or live millions of dollars. As a rule they figure in the settlement of clearing-house balances in New York.
Mr. BARTINE. What is done with those when redeemed in gold?
Mr. LEECH. They are paid out again. The law requires that.
The CHAIRMAN. You say the silver certificates are practically redeemed in gold
because the Government takes them at par?
M r . LEECH. Y e s , s i r .

had the free coinage of silver would not the same result
Mr. LEECII. Do yon mean that they would then be redeemed in gold?
T h e CHAIRMAN. Y e s , s i r .

Mr. LEECH. AS long as we had any gold they would be.
The CHAIRMAN. They are practically redeemed in gold because the Government receives them for its dues ?
Mr. LEECH. Yes, sir. The Government pays all its obligations in gold if so demanded.
The CHAIRMAN. The amount that would be added to it by free coinage would not
do away with that arrangement?
Mr. £EECII. In connection with the fact that the Government pays all its obligations in gold I think it would.
The CHAIRMAN. That is, the fact that the Government receives silver and silver

certificates for all of its dues and taxes, and also pays gold when demanded, makes
it all gold money ?
Mr. LEECH. Practically it is token money redeemable in gold.
The CHAIRMAN. Suppose we had free coinage of silver, what difference would that
Mr. LEECH. AS long as we could keep all our money at par it would he all right.
The CHAIRMAN. It would still be redeemable in gold ?
Mr. LEECH. AS long as we had the gold to redeem it with it would.
The CHAIRMAN. Suppose all our silver dollars and certificates were at par with
gold, would you call that gold redemption ?
Mr. LP^ECH. I say practically we have a gold standard in this country now.
The CHAIRMAN. The question I ask is if, under free coinage, the silver dollar and
the silver certificate being at par, would you still claim that the Government, by receiving them for all its debts, dues, and taxes, woiild be maintaining the gold
standard ?
Mr. LEECH. Yes, sir; as long as it paid all of its demand obligations in gold.
The CHAIRHAN. It is a mere matter of speculation as to how much silver certificates might be issued, whether it would displace gold?
M r . LEECH. Y e s , s i r .

to know if before resumption the Secretary did not announce that he would receive Treasury notes or other greenbacks.
Mr. LEECH. Yes, sir; I believe he did.
Mr. MCKEIGHAN. Will you state what the object of the Secretary was in that?
Mr. LEECH. It was partly to get some of them out of the -way by making them interchangeable with gold on demand. We were reaching around to see how we were
oing to make all our money as good as the gold dollar, and that was a step in that


Mr. MCKEIGIIAK. Excuse me for saying that your answer may be well intended,
but it does not answer me fully. Is not the receivability of that paper dollar for
customs what enhanced its value?
Mr. LEECH. Undoubtedly.
Mr. MCKEIGHAN. In speaking of trade balances did you state to the committee
what England does when shefindsthe balance of trade against her as a nation ?
Mr. LEECH. It is a question with individuals and not with a nation.
Mr. MCKEIGHAN. Does not the Bank of England usually take some action in case
of that kind ?
Mr. LEECH. The Bank of England raises the rate of discount.
Mr. MCKEIGHAN. What effect does that have?
Mr. LEECH. It has the effect to draw niouey to London or prevent its leaving there.
Mr. MCKEIGHAN. It raises the price of money?
Mr. LEECH. It raises the rate of interest.
Mr. MCKEIGHAN. The point I wish to bring out is whether the raising of the rate of
discount does not make commodities in England cheaper?
Mr. LEECH. I do not think the raising of the rate of discount affects the price of
commodities particularly at that moment.
Mr. MCKEIGHAN. How does it bring money into England?
Mr. LEECII. By paying a higher rate of interest for it.
Mr. MCKEIGHAN. Speaking of the balances of trade, India sells more than she buys,
but I do not take that as an evidence of India's prosperity, but exactly the opposite,
for the x>coj)le of other countries buy of her because she sells cheaper.
Mr. LEECH. I believe it is generally conceded that a country which has a larger
balance of trade in its favor is in a prosperous condition.
Mr. MCKEIGHAN. And yet the fact remains that when the balance of trade was in
our favor the condition of our people was such that we had to cushion the bumpers
on our trains in order to carry the tramps.
Mr. LEECH. That may be. 1 don't know about that.
Mr. STONE. Do the papers which you have presented show the average price paid
for silver during the past year ?
Mr. LEECH. It was 98ft- cents perfineounce.
Mr. STONE. AVhat is it to-day?
M r . LEECH. I t is 91|.

MR. STONE. Does that paper which you have presented show the average price
paid for silver during the past year ?
M r . LEECH. Y e s , s i r . I t w a s 9 8 , V
Mr. STONE. AVhat is it to-day?
Mr. LEECII. It is 91£ cents.
Mr. WILLIAMS, of Illinois. Your papers

silver since 1873?

M r . LEECH. Y e s , s i r .

show tho animal production of the world's

you any means of knowing how much of those metals has



been consumed during that time, and what proportion has been coined by each
country ?
Mr. LEECII. My report has a table showing the coinage of each country for several
years back, and also a table of recoinages. I have another paper, which I will send
to the members if desired, which contains the only answer which I can give to that
question as to the amount used in the arts.
Mr. WILLIAMS. You have estimated the amount of silver consumed in different
ways ?
Mr. LEECH. I have made a compilation from such foreign statistics as have been
furnished as to the amount used in the arts. It contains nothing very reliable, except
so far as this country is concerned. We collect accurate statistics on this subject,
and the other countries do not. The amount of silver used annually in the arts and
industries is supposed to be about $25,000,000; maybe more.
Mr. WILLIAMS. I wish you would send mo a copy of your report.
Mr. LEECII. I will send a copy to each member of the committee.
Mr. WILLIAMS, of Massachusetts. When you gave your answer concerning the
probable surplus of silver in the world, which might come here in case we opened our
mints to the free and unlimited coinage of silver, you must assume always, must you
not, that all the other governments o 1 the world will continue on their present monetary basis. That is true, is it not?
M r . LEECH. Y e s , s i r .

Mr. WILLIAMS. Therefore any calculation which you or any person may make
may be absolutely overthrown by a change in the monetary system of any single
important country in the world?
Mr. LEECH. That is true.
Mr. WILLIAMS. Was not the deliberate change on the part of Germany from a
silver standard to a gold standard the cause which closed the mints of the Latin
Union and closed every open mint on the continent of Europe?
Mr. LEECH. That is true.
Mr. WILLIAMS. Is it not true that at that time it was the purpose of France to do
just the thing which Germany did—to put itself on a gold basis?
Mr. LEECH. I am not sure about that. I doubt whether that was the intention of
France at that time.
Mr. WILLIAMS. I suppose that there has been testimony to the effect, in the monetary conferences that have been held, that France and the other nations of the
Latin Union were hoping and expecting that they might thus be placed upon a gold
Mr. LEECH. It was the intention of some people in France and a good many in
Mr. WILLIAMS. The result is that Germany actually did put its purpose into execution first.
M r . LEECII. Y e s , s i r .
Mr. WILLIAMS. Is it not

also true that the mere sale of about thirty or forty millions of dollars worth of silver in the open market by Germany was sufficient to
close the free mints of the Latin Union?
Mr. BARTINE. YOU mean pounds sterling?
Mr. WILLIAMS. - No, I mean dollars. I mean to ask if the closure of those mints
to the free and unlimited coinage of silver was not on account of the fear of Germany ?
Mr. LEECH. They undoubtedly closed for fear of Germany's silver.
Mr. WILLIAMS. It was not because their mints were flooded with silver?
Mr. LEECH. NO, it was because of fear they w ould be.
Mr. WILLIAMS. Are you aware of the fact that in 1 8 7 1 - 7 2 (if my memory serves
me correctly, and if not, I trust Mr. Bartine will suggest a correction) there were
about 15,000,000 francs offered for coinage in Belgium and about 15,000,000 francs
offered in the French mints; that after the demonetization of silver by Germany
began, the silver offered for coinage in the Belgium and French mints amounted to
some 266,000,000 of franqs for those two countries alone, whereas in 1 8 7 1 - ' 7 2 they
had amounted to only about 38,000,000 francs.
Mr. LEECH. That is possibly true. I do not remember the figures.
Mr. WILLIAMS. Therefore, the flooding of the mints of the Latin Union was contemporaneous with the sale, or the beginning of the sale, by Germany of its silver?
Mr. LEECH. There is no question but what Germany's silver went immediately to
the French and Belgian mints.
Mr. WILLIAMS. It is also true, is it not, that that same thing compelled Holland to
close her mint ?
Mr. LEECH. She did close her mints for that reason.
Mr. WILLIAMS. -I)o you know whether Germany completed her proposed demonetization of silver-, and whether it is completed to-day?
Mr. LEECII. It is not completed, I believe.

Mr. WILLIAMS. Does not Germany still possess a large amount of German thalers
-which she desires to put upon the market and get gold in return?
Mr. LEECH. Yes, sir; she has about $100,000,000 worth of them.
Mr. BARTINE. Did not Secretary Windom, in his annual report, in which ho advocated the adoption of the so-called Windom plan, make the distinct statement that
Germany had 110 more silver to dispose of?
Mr. LEECII. NO, sir; he said she had no more melted bars to dispose of.
Mr. BARTINE. Did not Germany sell ail of her silver a few years ago.
Mr. LEECII. All the silver she had melted.
Mr. BARTINE. Was not the Secretary's remark that " Germany had no more silver
to dispose off"
Mr. L E E c n . There is no question as to the fact? The fact is that Germany lias disposed of all the silver she redeemed, and she has $100,000,000 worth of old thalers left
in circulation.
Mr. BARTINE. Does she propose to sell them?
Mr. LEECII. I do not know.
Mr. BARTINE. They are in circulation?
Mr. LEECH. Yes, sir. Austria, it is said, wants to call in tjie Union thalers, bearing her imprint, amounting to about $23,000,-000.
The CHAIRMAN. I will read a little extract from Mr. Windom's report. I will not
read it all, but will insert it in the record more fully. It is as follows:
"From the above it will be seen that the annual surplus product of silver, which
would probably be deposited at the mints of the United States, approximates
$51,000,000 (coining) value, corresponding to 39,445,312 tine ounces, worth, at the
present market price of silver ($0.96), $37,867,500.
"At the present price of silver $4,000,000 will purchase 4,166,666 fine ounces, or
for the year 50,000,000 fine ounces, an excess of 10,554,688 fine ounces above the estimated surplus.
" There is in fact no known accumulation of silver bullion anywhere in the world.
Germany long since disposed of her stock of melted silver coins, partly by sale,
partly by recoinage into her own new subsidiary coins, and partly by use in coining
for Egypt. Only recently it became necessary to purchase silver for the Egyptian
coinage executed at the mint at Berlin.
"It is plain, then, that there is no danger that the silver product of past years
will be poured into our mints, unless new steps be taken for demonetization, and
for this improbable contingency ample safeguards can be provided.
"Nor need there be any serious apprehension that any considerable part of the'
stock of silver coin of Europe would be shipped to the United States for deposit for
Treasury notes.
"There is much less reason for shipping coin to this country than bullion, for while
the leading nations of Europe have discontinued the coinage of full legal-tender silver pieces, they have provided by law for maintaining their existing stock of silver
coins at par.
"In England, Portugal, and the States of the Scandinavian Union there is no stock
of silver coin except subsidiary coins, required for change purposes, the nominal value
of which is far in excess of the bullion value. Germany has in circulation about
$100,000,000 in old silver thalers, but ten years have passed since the sales of bullion
arising under tho antisilver legislation of 1873 were discontinued. It is safe to say
there is no stock of silver coined in Europe which is not needed for business purposes.
''The States of the Latin Union and Spain, which has a similar monetary system,
are the only countries in Europe which have any large stock of silver coins, and the
commercial necessities of these countries are such that they could not afford, without
serious financial distress, to withdraw from circulation silver coins which are at
par with their gold coins, to deposit them at our mints for payment of the bullion
value in notes."
Mr. LEECH. That is true.
The CHAIRMAN. When was it that Germany demonetized silver?
Mr. LEECH. The law was passed in 1871 and took effect in 1873.
The CHAIRMAN. The next question is, When was thefirstlimitation put upon coinage by France ?
M r . LEECH. IT w a s i n 1874.

The CHAIRMAN. Was it not in 1873 that we stopped coinage?
Mr. LEECH. HOW much had we been coining?
The CHAIRMAN. My question is this: Is it not a fact that no closure of the French
mints took place until 1874, when we stopped, and can you claim, as a matter of fact,
that France was intimidated alone by Germany, or was it because of the action both
of this country and Germany?
Mr. LEECH. It was by Germany alone, according to the testimony of her financiers.
The CHAIRMAN. Did we not begin to coin silver before the closure of our mints in



Mr. LEECH. Possibly; but it went abroad immediately and was melted.
The CHAIRMAN. Then it is not true, as stated, that we had coined no silver dollars
at that time ?
Mr. LEECH. W O had coined about $8,000,000.
The CHAIRMAN. We coined a million dollars two months prior to the passage of that
Mr. LEECII. After 1873 we immediately went into the market as a large purchaser
of silver. We were also coining the trade dollar. Our purchase of silver and coinage
from 1873 to 1878 was enormous.
Mr. WILLIAMS, of Illinois. There was a limit?
Mr. LEECH. There was no limit to the trade dollar.
Mr. WILLIAMS. Can you say what the effect upon France was? Their testimony is
that they did not want Germany's silver.
Mr. LEECH. That is their testimony. France did not close her mints because we
did. They did not pay any attention to us, because we were on a paper basis, and
not using metallic money.
Mr. WILLIAMS, of Massachusetts. I suppose the chairman took up the examination
on the assumption that I was finished, and I will take it up where I left off. The
chairman has already asked some of the questions I intended to propound. There is
no doubt, then, that it was simply the legislative action of one leading nation on the
continent of Europe whicli stopped the free coinage of silver there?
Mr. LEECH. I have no doubt on that subject.
Mr. WILLIAMS. Following some of the suggestions of the chairman, I will ask if
there is any doubt in your mind that if the Latin Union had closed or limited its
coinage at the rate of 15£ to 1 and that the American mints had been open at the ratio
of 16 to 1 at that time, that all of that silver would have found its way into our mints,
and that we would have furnished gold to Germany in exchange for silver under our
free-coinage plan?
Mr. LEECII. I do not know. We had no gold then, as we were on a paper basis. I
do not think we could have sent them anything but legal-tender money. I do not
think it would have cut much figure in the matter.
Mr. WILLIAMS. Suppose that we had had a free-coinage law that provided for the
free coinage of gold and silver at a fixed ratio which should be authorized legaltender coins of the United States?
Mr. LEECH. We did have at that time.
Mr. WILLIAMS. Of course this ratio of 15£ to 1 would take the silver of France as
soon as her mints were opened ?
M r . LEEdfi. Y e s , s i r .

you any reason to suppose, from your knowledge of this
financial question, that any of the so-called bimetallic countries of Europe are necessarily bound to their present systems ?
Mr. LEECH. NO, I think they would be glad to get away from them.
Mr. WILLIAMS. There has been some talk of an international agreement. What
effect, if any, would the passage of a free coinage act have on that question?
Mr. LEECH. I think it would very seriously affect the possibility of securing one.
I think this agitation is a great drawback in that direction. They desire free coinage
by us in order that they may get all the gold they want to relieve them of their difficulties.
Mr. WILLIAMS. They could only get it at a loss.
Mr. LEECII. There might be a slight loss, but they need it, and would submit to the
Mr. WILLIAMS. YOU think they would bring their silver here?
Mr. LEECH. I have no doubt of it.
Mr, PIERCE. Did not the United States demonetize silver first?
Mr. LEECH. The legislation in Germany was enacted in 1871.
Mr. PIERCE. Germany did not demonetize it until 1874?
Mr. LEKCH. Yes, sir, in 1871; but the law did not take effect until later, 1873.
The hour of 12 m. having arrived, the committee adjourned until Wednesday
February 3, 1892.



Washington, D. C., Wednesday, February 3, 1892.

The committee met at 10 a. m., all the members present.
Mr. STONE. What was the amount of coinage in this country from 1873 to 1878 as
compared with previous years?
Mr. LEECH. We coined more in that period than in the eighteen years previous;
including the trade-dollar coinage we coined more than in the thirty years previous.
Mr. STONE. During those years the mints of the United States were free, so far as
the coinage of the trade dollar was concerned?
Mr. LEECH. Yes, except there was a small coinage charge.
Mr. STONE. The amount of silver in circulation in this country is about $60,000,000?
Mr. LEECH. Yes, sir; the amount of silver dollars in bodily circulation.
Mr. STONE. How lias the actual circulation of silver in this country been affected
by the immense increase in the coinage of silver? To what extent has it increased?
Mr. LEECH. The amount of silver dollars has not increased at all in recent years.
Mr. STONE. Then the large amount of coin turned out from the mint is simply
stored in tho vaults of the Treasury ?
Mr. LEECH. Yes, and certificates issued against it.
Mr. STONE. You do not issue the coin itself?
Mr. LEECH. The coin itself is stored.
Mr. STONE. Are you informed as to the extent of the coinage of France?
Mr. LEECII. Yes, sir; France has coined no silver except change money.
Mr. STONE. What nations of the world, if any, besides the United States have a
system of paper money based on silver coinage?
Mr. LEECH. I should say that no country had, unless it be some of the South American countries. None of the European countries have. Russia has a silver standard
theoretically, and so has Austria. Practically, Russia has a paper currency based
upon gold, because she discriminates against her own silver coin as to the limit of
tender. There is no considerable quantity of silver in Russia, either in banks or in
circulation. Austria recently has adopted the gold standard, or is preparing to do so.
Mr. BARTINE. When you state that there is no country which uses paper currency
based upon silver, I suppose you mean that there is no country that issues certificates
as we do upon deposits ?
Mr. LEECH. No, sir; I mean that there is no European country which issues paper
money redeemable exclusively in silver coin.
Mr. STONE. In your judgment, what would be the effect of opening our mints to
the free and unlimited coinage of silver upon the adoption of a bimetallic standard
by the leading countries of the world?
Mr. LEECH. I think it would seriously embarrass the consideration of that subject, which at present is in very fair shape.
Mr. STONE. What is the view, if you know, of leading advocates of bimetallism
in the leading European countries as to the effect of opening the mints of the United
States, independent of any agreement with any other nation ?
Mr. LEECH. Without exception they are all of the opinion, and have so expressed
themselves, that it would be disastrous to the cause. All the economists and writers
on silver in Europe have expressed that opinion. I could furnish extracts from their
writers, but probably the members of the committee are as familiar with them as
I am.
Mr. STONE. To your knowledge, is there any difference of opinion among the
leading and eminent advocates of bimetallism in European countries on that point ?
Mr. LEECII. I do not know of one who does not hold that view.
Mr. STONE. What is the percentage of silver used in the arts and sciences in the
United States, as near as it can be ascertained ?
Mr. LEECII. We used last year about $9,000,000 worth of silver in this country in
the arts and manufactures, of which about $7,000,000 worth consisted of new bullion; the rest was old material and coin.
Mr. STONE. What was the production of silver in the United States last year?
Mr. LEECH. I would put the minimum amount roughly at 58,000,000 ounces. It
was 54,500,000 ounces in 1890. I see that Wells, Fargo & Co. and the Mining Engineers' Journal place it at a very much larger amount.
Mr. STONE. If you deduct from the total production of the United States last year
the silver used in the arts and sciences, the balance going into coinage would be less
than the amount the Government has purchased. In other words, the Government
is now purchasing more than the amount of American silver available for coinage,
after deducting the amount used in the arts and sciences.



Mr. LEECH. More than the amount produced from our own mines available for
monetary purposes.
Mr. STONE. What is the amount of currency per capita in this country of all kinds
in circulation ?
Mr. LEECH. Outside of the Treasury, in hanks and circulation, there are about
Mr. STONE. HOW does that compare with the J>er capita amount in circulation in
other countries?
Mr. LEECH. It is larger than in other commercial countries, except France.
Mr. STONE. HOW does it compare with that of Great Britain?
Mr. LEECH. It is larger. There is a table in my report that gives the circulation
of the principal countries of Europe.
Mr. STONE. I believe in Great Britain it is about $18 per capita?
Mr. LEECII. That is my recollection.
Mr. STONE. Is there, in your judgment, any lack of a circulating medium in this
-country ?
M r . LEECII. N o , s i r .
Mr. STONE. Will you state the facts?
Mr. LEECH. New York banks hold about

$35,000,000 of money over and above their
lawful reserves.
Mr. STONE. What is the rate of interest?
Mr. LEECH. It is from
to 2 per cent on call loans.
The CIIAIKMAN. Do I understand you to say that there is no paper money in circulation in European countries based upon silver?
Mr. LEECII. That was not the shape in which the question was put to me. I said
that there was no country in Europe whose paper money was redeemable solely in
The CHAIRMAN. I see from the report of Secretary Windom, made in 1889, that he
gives the amount of silver in European countries at a late date, and the notes issued
against them, which shows that the Bank of England had £19,519,659 of notes in
Mr. LEECH. The question was whether the circulation was based on silver, and
not as to the amount of notes.
The CHAIRMAN. In England it is based on gold. The Bank of France had
£51,930,000 of gold, and £50,247,000 of silver.
Mr. LEECH. I did not say that there were no countries whose notes were not redeemed in either.
The CHAIRMAN. Mr. Windom gives a table exhibiting at a late date the amount of
gold and silver coined in certain countries, which are mentioned.
Mr. LEECH. The question is whether the notes are based exclusively upon silver.
Mr. Stone's question was whether, outside of the United States, there were any countries which had paper money based upon silver.
The CHAIRMAN. It gives the amount in the Imperial Bank of Germany at
£26,746,000 in gold, and £11,000,000 in silver.
Mr. LEECH. There is no question about that.
The CHAIRMAN. It foots up £73,094,000 of silver in European countries against
which there are notes.
Mr. LEECH. Notes against both gold and silver; I did not deny that.
Mr. WILLIAMS, of Illinois. In speaking about the amount of silver which was coined
from 1873 to 1878, can you tell the committee how much was coined per month during the last six months preceding the act which was passed demonetizing silver?
Mr. LEECH. I could not tell that from memory. I could furnish it to you.
Mr. WILLIAMS, of Illinois. Do you know whether silver coinage was increasing
•then in the United States?
Mr. LEECH. Mr. Bland stated that about a million of silver dollars had been coined
just prior to the passage of that act.
The CHAIRMAN. I think that during the months of February and March something
-over $900,000 in silver had been coined. I think that $3,000^000 had been coined in
the six months previous.
Mr. BARTINE. That would be the natural effect as the price of silver gravitated
toward $1.29.
Mr. WILLIAMS, of Illinois. Do you regard it as any objection to the free coinage of
silver that silver certificates have been issued instead of issuing the silver dollar?
M r . LEECH. N o , s i r .

Mr. WILLIAMS, of Illinois. Then the fact that they are in the Treasury and represented by certificates would be no objection to them?
Mr. LEECH. Possibly it is preferable that they should be represented by certificates.
The CHAIRMAN. YOU find the same circumstances in regard to gold.
Mr. LEECII. Not to the same extent.

The CHAIRMAN. Is not nearly all the gold in this country coined in $20 pieces for
the convenience of hankers f
Mr. LEECH. We have about $690,000,000 worth of gold in the United States, and of
this about $270,000,000 are in the Treasury. The other $420,000,000 are supposed to
be somewhere in the country in banks and in circulation. Of the $270,000,000 in the
Treasury, about $150,000,000 are represented by gold certificates outstanding.
The CHAIRMAN. The question I was asking is, whether in the coinage of gold it is
not a fact that nearly all the gold coinage is in $20 gold pieces, and made so for the
accommodation of bankers ?
Mr. LEECH. In the West we coin $20 gold pieces principally; but in the East we
coin eagles and half eagles.
The CHAIRMAN. Could you give the percentage in pieces above fives and tens ?
Mr. LEECH. No, sir; I could not.
The CHAIRMAN. I remember that when Mr. Burchard was Director of the Mint,
there was a complaint that the larger gold pieces did not get into circulation.
Mr. LEECH. Mr. Burchar.d favored the small gold coinage, as he had an idea that
it would circulate better.
Mr. WILLIAMS, of Illinois. Do you think for the free coinage of silver in the
United States any foreign coin would come to our mints?
Mr. LEECH. I believe an immense amount of it would.
Mr. WILLIAMS, of Illinois. In what way would it be brought here ?
Mr. LEECII. I think it would come here in shiploads just as fast as they could
bring it.
Mr. WILLIAMS, of Illinois. Who would bring it?
Mr. LEECH. I think the Bank of France would sell her silver to start with, which
amounts to some $250,000,000. I think Belgium would immediately sell hers.
Mr. WILLIAMS, of Illinois. Would the people of France send it here? Why would
it come?
Mr. LEECH. While there is a large amount of silver in France, it cuts no figure in
fojeigu commerce. It is rejected even in domestic circulation and gravitates gradually into the vaults of the large banks, where it is used as a reserve for paper money..
It lias no actual value to the Government which issued it over and above its commercial value as bullion, and the Bank of France, for ,instance, could issue a larger
amount of paper money safely on $240,000,000 worth of gold than they could on $250,000,000 worth of silver. All Europe is practically committed to the gold standard,
partly from choice and partly from necessity; and the nations of Europe are inclined
to adapt themselves to the prevailing standard. It facilitates their business better
and I do not believe any loss of a small percentage would stand in the way of their
selling their silver. Besides that, they believe that we could not permanently maintain the price at our coinage rate, that it would be an experiment on the part of this
country which must fail, and they would take advantage of our experiment to take
our gold in exchange for their silver. That is substantially the view held by the
financiers in Europe on this subject.
The CHAIRMAN. I would like to read again from the report of the Secretary of the
Treasury: "The States of the Latin Union in Spain, which have a similar monetary
system, are the only countries in Europe which have any large stock of silver coins,
and the commercial necessities of these countries are such that they could not aftord,
without serious financial distress to withdraw from circulation the silver coins which
are at par with gold coins, and deposit them at our mints for the payment of the bullion in notes."
Mr. LEECH. Mr. Windom's plan was an entirely different proposition from free
The CHAIRMAN. You claim that they would send their silver here by the shiploads;
why would they do it ?
Mr. LEECH. They w ould do it to get our gold ami to buy gold exchange.
The CHAIRMAN. HOW much gold would they get?
Mr. LEECH. They would take it as long as they could get it. When it was not profitable, they would cease to send it here.
The CHAIRMAN. Do you claim that we would be compelled to give them gold for
silver ?
M r . LEECH. I d o .
Mr. LEECH. Because we

would have to pay them by check or in legal-tender money,
which is practically interconvertible with gold in this country. I
The CHAIRMAN. If gold, according to your opinion, would go abroad, and if your
view of it is correct and gold would be more valuable than silver, do you suppose
that our people would exchange their gold for that silver ? .
Mr. LEECH. We would, unless it went to a premium. It would be a question of
exchange. Here is a man who has $100,000 in silver and he wants gold for it. He



goes to his hanker and says, u Give me $100,000 in gold certificates." What difference does that make?
The CHAIRMAN. IS the banker compelled to give him gold?
Mr. LEECII. No; but he would do it as a matter of business.
The CHAIRMAN. Then as a matter of business a banker in this country would be
swindled into that transaction ?
Mr. LEECH. NO, sir; the banker would do it to accommodate him.
The CHAIRMAN. You think gold would go immediately to a premium?
Mr. LEECII. I think it would either go to a premium or go abroad.
The CHAIRMAN. If it did not go to a premium it would not matter.
Mr. LEECH. I think it would. I think our silver money would not stay at par
with gold.
The CHAIRMAN. That is a matter of opinion.
Mr. LEECII. All these things are matters of opinion.
The CHAIRMAN. What I want to got at is this: If all the silver in Europe came
here, it would have to come here for some purpose.
Mr. LEECH. It would come here for its value in gold or in products.
The CHAIRMAN. We have not got as much gold as France has silver.
Mr. LEECH. They would send it here as long as they could get $1.29 in gold for it.
The CHAIRMAN. Could we pay for a shipload of it?
Mr. LEECH. We could pay for a good many shiploads, as silver is very bulky.
The CHAIRMAN. Have we* got gold enough to buy a shipload of silver ?
Mr. LEECH. Some people think we have enough to buy the stock and product of
the world.
The CHAIRMAN. In order to part with it tliey would have to come here, where they
can not buy as much as they could get at home for it.
Mr. LEECII. They bring it now at a loss from its nominal value of from 30 to 4 0
per cent.
The CHAIRMAN. Full coins?
Mr. LEECH. Yes; South American and Mexican coins. Austria-Hungary is proposing to melt her coins.
The CHAIRMAN. HOW much has she sent here?
Mr. LEECH. She is contemplating selling $23,000,000 worth. Roumaiua, too, sold
$5,000,000 worth recently. The transaction is not completed by Austria-Hungary.
She proposed to redeem $23,000,000 worth of thalers.
The CHAIRMAN. Germany proposed to do something of that sort, and was stopped.
Mr. WILLIAMS, of Illinois. Do you think silver coin in circulation among the people would come here under free coinage?
Mr. LEECII. I think it would have a tendency to come here from the banks. I
think it would accumulate in the banks for gold. For instance if the Bank of France
should sell its silver, it would offer the 5-franc pieces and get gold for them.
Mr. WILLIAMS, of Illinois. That could only go on while gold and silver are at par.
Mr. LEECH. It would go on as long as they could get paid in gold for it. You
must recollect that the debtor States of the Latin Union owe France a great deal of
money in these 5-franc silver pieces which she holds. Under the terms of the compact, those 5-franc pieces are redeemable in gold by the debtor countries at the end
of any year. The Bank of France can call on Belgium to redeem her 5-franc pieces at
any time in gold. Belgium could not redeem unless she sold her silver. The press
of Belgium has been urging that country to do that for some years.
Mr. WILLIAMS, of Illinois. Are not the silver coins now at par with gold coins in
France ?
Mr. LEECH. Undoubtedly.
Mr. WILLIAMS, of Illinois. Do you think the free coinage of silver in the United
States would tend to weaken /the confidence of the European powers ^ our silver
Mr. LEECH. I have expressed my views on that subject fully. I believe that
Eurojiean financiers, bankers, and statesmen believe that we can not sustain the
price of silver at a parity with gold, and that they would take advantage of our
experimental trial to rid themselves of the embarrassment now existing from the
use of silver coin. That is my belief.
The CHAIRMAN. DO you believe that our attempting free coinage would relieve
them of their embarrassment?
Mr. LEECH. It would increase our embarrassment and relieve theirs.
Mr. WILLIAMS, of Illinois. How much longer can we continue increasing our
currency as rapidly as we are now doing?
Mr. LEECH. That is a problem. It depends largely upon other conditions. If our'
crop conditions should be favorable, we can continue for a considerable period of
time; but if our crop conditions should be unfavorable, we might not be able to
continue very long.

Mr. WILLIAMS, of Illinois. Then your remedy would be' for the Government to
issue bonds and buy gold, if we need it?
Mr. LEECH. I do not propose any remedy. I think we have the power legally to
do that.
Mr. WILLIAMS, of Illinois. That is what I gathered from your suggestion when
you were before the committee last.
Mr. LEECH. I never suggested that. I think we have the power to sustain gold
payments in this country by selling bonds, and I believe that power would be wisely
Mr. BARTINE. What did you say the agreement was between the States of the
Latin Union whereby they mutually agreed to redeem silver coins in gold?
Mr. LEECH. If you will look into the testimony of the last session you will find
the agreement.
Mr. BARTINE. I do not read it as you do. If I understand the English language
correctly the agreement is that those States can redeem in 5-franc pieces or in
gold or checks.
Mr. LEECH. They must redeem in gold. There is 110 question about that. The
understanding is that all the 5-franc pieces held by one belonging to the other
must be redeemed in gold or its equivalent.
Mr. BARTINE. It reads: "Or in drafts payable in either."
Mr. LEECII. I do not think it says that. The fact is that under the terms of the
Latin Union the debtor countries must redeem their 5-franc pieces in gold.
The CHAIRMAN. Mr. Williams, of Massachusetts, indicated a desire to question Mr.
Leech during the meeting. He is here now, and can do so, if he desires.
Mr. WILLIAMS, of Massachusetts. I notice 011 page 8 of the report that there are
some mistakes in thefigureswhich I think I did not use in asking the question. It
is on page 8, about a dozen lines before the end of the page. I am quoted as saying
that about 15,000,000 francs were offered for coinage in Belgium and about 15,000,000
francs were offered for coinage in the French mints. What I did say was, that
5,000,000 were offered in Belgium and 33,000,000 in the French mints, and I understand that that is what the stenographer^ notes show. I was not in when you began, and I will ask if you have stated whether or not envoys of Austria-Hungary are
now in London in connection with this business.
Mr. LEECH. I did not go into details. I stated that Austria-Hungary had decided
to adopt the gold standard and had sent envoys to Germany to ask her to call in all
the thalers bearing the Austrian stamp. It is believed that she is accumulating
gold for redemption purposes.
Mr. WILLIAMS (of Massachusetts). Are you aware that the London press has already
taken up the question of the efforts of Austria to put itself upon a gold standard?
Mr. LEECH. I have seen some articles in the Economist.
Mr. WILLIAMS (of Massachusetts). Have you seen any reports or articles in the
London Daily News ?
M r . LEECH. N o , s i r .

Mr. WILLIAMS (of Massachusetts). Referring to the fact that the envoys of that
Government are now present 111 London trying to secure gold in order that AustriaHungary may be put 011 a gold basis, I see by your table that Austria-Hungary has
$90,000,000 of full legal-tender silver.
M r . LEECH. Y e s , s i r .

Mr. WILLIAMS (of Massachusetts). Have you any question that, if this Government
now had its mints open to free coinage of silver, Austria-Hungary would send that
silver here and secure gold for it ?
Mr. LEECH. I believe it would. I have no question in my mind on that point.
Mr. WILLIAMS, of Massachusetts. Is it not true that Germany when she decided
to put herself on a gold standard began to sell her silver at 59-^ pence, arfd did she
not end by selling it finally at 50 pence an ounce?
Mr. LEECH. It declined 9 pence, about 16 per cent.
Mr. WILLIAMS, of Massachusetts. Germany still continued to sell at that sacrifice?
M r . LEECH. Y e s , s i r .
Mr. WILLIAMS, of Massachusetts.

You say that Belgium, if these figures are correct, has $55,000,000 of silver.
Mr. LEECH. Y es, sir.
Mr. WILLIAMS, of Massachusetts. And the same would be true, in your judgment,
of Belgium?
Mr. LEECH. Yes, sir. In addition to that, the Bank of France owns some $20,000,000
worth of Belgian 5-franc pieces.
Mr. WILLIAMS, of Massachusetts. Have you any question in your mind that if
this country should undertake a free coinage of silver, that substantially all the
bimetallic countries of Europe would at once take advantage of their opportunity
to send their silver here, even at a great sacrifice, and secure gold instead?
Mr. LEECH. There is no question in my mind of that.



Mr. WILLIAMS, of Massachusetts. I believe you disclaim having proposed that
bonds should be sold in order to keep a parity between gold and silver coin; but I
believe your superior, the Secretary of the Treasury, has advanced that proposition
publicly, has he not?
Mr. LEECH. I would rather he would answer for himself. These are matters I do
not care to speak of.
Mr. WILLIAMS, of Massachusetts. Have you statistics with reference to the movement of money in this country ?
Mr. LEECH. You suggested to my secretary that you would like some'data on that
subject, and I have procured some through the kindness of the editor of the New
York Commercial Bulletin and other friends. I have here statements which I will
leave with the committee showing the currency movements from New York to the West
and the South during the crop season and back again. The total amount shipped by
the express companies for individuals, according to this table in 1891, was $68,000,000,
while the amount shipped by the express companies for the Treasury Department,
which was for four New York banks, was about $50,000,000, making the total amount
$118,000,000, which actually went to move the crops this last yaar. We offered the
banks of New York that we would supply their customers in the West with currency
at our rate, which is cheaper than theirs. We shipped $49,000,000 worth and the
other banks about $68,000,000 worth. The total shipments for the first six months
of 1891 was $82,000,000, of which $36,000,000 was shipped by the Treasury. From
July to December the total amount shipped by individuals was $48,000,000, and by
the Treasury $52,000,000.
The CHAIRMAN. Yon will have no objections to having those printed?
Mr. LEECH. NO, sir. The statement shows also where the money went, how much
went West, how much went to Philadelphia and the South, and how much to San
Francisco. I will leave these papers with yon. I.have brought also some interesting tables compiled by the Comptroller of tlie Currency. These tables have never
been published, and they are valuable and instructive. They were prepared by him
for his fiscal report, but were crowded out. There are other tables showing the
amount of cash—gold, silver, and paper money—held by all the national banks in the
United States at the several dates named, and the classification of the same. Thesetables are for different dates, February 28, May 17, July 18, October 17, and December 19. He divides the amount between gold and silver certificates, bank notes, and
United States notes, showing the changes in the amount held by the banks, and thecash at those different dates; it also shows what was held in Western States, in the
Middle States, in the Southern States^ and in the Pacific States and Territories, in
the New England States, in Chicago, in Boston, and in the city of New York. We
have always thought that the farmers required a large amount in their pockets at
certain seasons of the year. These tables show that the actual amount of money,
cash, in the banks does not change materially during the crop seasons.
The CHAIRMAN. Did no money come from other countries to help move the crops?
Mr, LEECII. Possibly the money came from abroad.
Mr. JOHNSON. Has this Government now agents employed in Europe in the interest
of an international bimetallic standard?
Mr. LEECH. We hardly have what might be called agents. The Secretary of the
Treasury requested certain gentlemen who were going to travel in Europe, and who
had the social and financial standing to do it, to talk with leading financiers, bankers, and others and get their views in regard to the probability or possibility of some
international conference; that is, ascertain the disposition in'Europe on that subject.
They had letters from the Secretary of the Treasury. There was no compensation
paid them or anything like that offered. These gentlemen have written to the Secretary letters embodying the results of these conversations. Those letters have been
placed in^the hands of the President.
Mr. JOHNSON. HOW recently?
Mr. LEECII. They have covered a period of the last three or four months?
Mr. TRACEY. You are somewhat encouraged to believe that something of that kind
may eventually be effected?
M r . LEECH. '\Ve a r e .
Mr. TRACEY. What reason

have you for supposing that these several governments
would desire to do that ?
Mr. LEECH. England has shown a favorable disposition toward silver; just to what
extent I could not say.
Mr. TRACEY. What advantage would it be to her?
Mr. LEECH. It would be a great benefit, I think, to all mankind.
Mr. TRACEY. Would not they receive more benefit from it if we were to act alone
in this country? Suppose a free-coinage bill were passed and gold went to a premium, would it not be to their interest to have that done?
Mr. LEECH. Possibly. It would be largely to their interest. Just which wonld
be more to their interests I would not like to say.

Mr. TRACEY. Assuming that we would not he able to bring gold and silver to a
Mr. LEECH. I think they might prefer free silver coinage here.
Mr. TRACEY. That might be regarded as an inducement for them to hold off.
Mr. LEECH. Yes, sir; it would be.
The CHAIRMAN. IS it not a fact that these international agreements, and the talk
about them generally arises about the time we get to work on the silver question
here, and get to talking about afree-coinagebill ?
Mr. LEECH. NO, sir. I think we have been working quietly on this matter while
you gentlemen were at home.
The CHAIRMAN. Whenever we undertake to legislate on this subject, we hear about
international agreements. I have been waiting now twenty years, and I do not see
anything like it yet.
Mr. WILLIAMS, of Illinois. I desire to ask a question, which I hardly think Mr.
Leech answered on last Wednesday. I asked him if the Treasury notes depend on
the confidence of the people that they will be redeemed by the nation in gold, why
should we not issue greenbacks as well, to which he answered, "We buy silver under a law of Congress." I then asked him why would not paper money be just as
good, and he answered the absorption of these large amounts of silver. (To Mr.
Leech.) Can you tell me what injury will be sustained by silver by the issue of
legal-tender notes without regard to the effect upon silver.
Mr. LEECH. What would we issue greenbacks for ? We have to buy something to
issue money.
Mr. WILLIAMS, of Illinois. You could issue greenbacks under an act of Congress.
Mr. LEECII. If we had fifty laws we could not issue money unless we could buy
something for the money. We must issue it in payment for something.
Mr. WILLIAMS, of Illinois. How was it issued during the war?
Mr. LEECII. It was issued to buy supplies to carry on the war, to buy powder and
muskets, and to pay the troops.
Mr. WILLIAMS, of Illinois. < 1ould it not be paid for pensions.
Mr. LEECII. We have got enough money to pay pensions with.
Mr. WILLIAMS, of Illinois. According to your theory there is 110 difference in that
Mr. LEECH. I hold that the new Treasury notes and the old legal-tender notes are
substantially the same.
Mr. WILLIAMS, of Illinois. Then the Government has used that at the price of
silver bullion?
Mr. LEECII. It has purchased the bullion with them.
Mr. WILLIAMS, of Illinois. You might use it sometimes.
Mr. MCKEIGIIAN. What is the difference? Suppose you held wheat or grain, or
anything of that kind.
Mr. LEECH. Wheat and grain are not yet used for money purposes; they may be,
some day.
The CHAIRMAN. If a deficit should occur in the Treasury or some extraordinary
demand for money that would require the issue of Treasury notes, how would it be
in that case ?
Mr. LEECH. They would be treated just the same as legal-tender notes.
Mr. WILLIAMS, of Illinois. Why not issue greenbacks in lieu of these?
Mr. LEECH. These are legal-tender notes. I see no reason for not lumping them
both together.
Mr. WILLIAMS, of Illinois. The law does provide that they shall be redeemable
111 silver.
Mr. LEECII. NO, sir; they shall bo redeemable in coin, at the discretion of the
Secretary of the Treasury. That is the same provision in regard to the old legaltender notes.
Mr. WILLIAMS, of Illinois. At the option of the Government?
M r . LEECH. Y e s , s i r .
CHAIRMAN. You claim that all our gold is a basis for that circulation?
M r . LEECH. I d o .
Mr. MCKEIGIIAN. IS it not a fact that silver is held simply as so much assets ?
Mr. LEECH. It is part of the assets of the Government. We have gold and silver


coin and bullion and paper money among the assets. This silver is money or can be
made into money.
Mr. MCKEIGIIAN. It is assets for proper redemption.
MR. LEECH. We can not lawfully redeem in silver bullion, nor can we in gold bullion.
Mr. MCKEIGHAN. IS it not held there as part of the assets of the Government, just
the same as other property is ?
Mr. LEECII. It is held just the same as all other money is held in the Treasury.




Table exhibiting approximately the stock of gold and silver in the principal countries of
the world.
Stock of silver.
Stock of gold.


'Zrtof 1
900, 000, 000
500, 000,000
65,000, 000
140, 000, 000

United States...»
United Kingdom
Scandinavian Union.

2, 000,000
100, 000,000

40, 000,000
40, 000, 000
25, 000, 000
32, 000, 000
190, 000,000
50, 000,000
100, 000,000
100, 000,000
000, 000




Central America.
South America

J 02,000,000

50,000,000 I.,
500,000 ':..
25,000,000 i.
50,000,000 .
900,000,000 j.
700,000,000 .

90,000, 000




The Straits
Cuba, Haiti, etc


$76,566, 000
102, 000,000
6,600, 000

3,600, 000

" " 3," 200," OOO*

100,000,000 !.



iLinrite*! tender.


25, 000,000

800,000 j
544,166,000 | 3,939,571,000


3,395,412,000 ;

* Includes $82,212,000 in gold bars.


t Includes $53,969,000 in silver bars.

Production of gold from the mines in the United States, 1880-'91.
Calendar year.

Fine ounces.

Value. 1 I

Calendar year.

1,741,500 $36,000,000 1886
34, 700, 000 1887
1, 572,187 32, 500,000 1888
30,000,000 , 1889
1,489, 950 30,800, 000 1890
31,800, 000 1891

Fine ounces.


1, 587,000 j 32,800, 000
1,588,880 ! 32,845,000
1,596,037 | 33,000,000

Product of silver from the mines in the United States, 1878-91,
187 8
187 9

Fine Commercial Coining
27,650,000 $35,750,000 $35,750,000
28,849,000 36,869,000 37,300,000
24,518, 000 30,549,000 31,700,000
, 30,009,000 34, 690,000 38,800,000
30,783,000 36,970,000 39,800,000
34,960,000 40,270,000 45,200,000
31,550,000 ; 35,430, 000 40,800,000
. 30,320,000 34,720, 000 39,200,000
33,260,000 37,850, 000 43,000,000
36,200,000 41,120,000 46t 800,000




* Estimated.

Fine Commercial Coining
. ounces.
value, j value.

$39,660,000 $46, 200,000
42,500,>, 000
57,304,T, 000






Product of gold and silver in the world, calendar years 1873-90.
Calendar year.


Fine ounces

97,500, 000
114, 000, 000
119,000, 000
109, 000, 000
106, 500, 000
103, 000, 000
102, 000,000
95, 400, 000
101,700, 000
108, 400,000
110,197, 000



Silver bullion purchased under act of 1878
Coat of silver bullion purchased under act of 1878
Average cost per ounce
Silver bullion purchased under act of 1890
Cost of silver bullion purchased under act of 1890
Average coat per ounce

55, 300,000
62, 262, 000
67, 753, 000
73, 476, 000
74,250, 000
74, 791.000
78, 890,000
89,177, 000
81, 597, 000
93,276, 000
108,827, 000


78,322, 000
83, 383,000
85, 636, 000
89,777, 000
98, 230, 000
98, 986, 000
90, 817, 000
97, 564, 000



Silver dollars coined:
A c t of 1878
A c t of 1890
From trade-dollar bullion


Silver dollars in Treasury


Silver dollars in circulation
I n Treasury, covered by certificates


I n Treasury not covered by certificates
In Treasury which can not be covered by certificates


In Treasury upon which certificates can be issued
Profits on coinage of 1890 bullion
Silver certificates in Treasury, cash
January 21, 1892.


Amounts of gold and silver coins and certificates, United States notes, and national-bank
notes in circulation January 1, 1892.
General stock,
coined or
Gold coin
Standard silver dollars
Subsidiary silver
Gold certificates
Silver certificates
Treasury notes, act July 14,1890
United States notes
Currency certificates, act June 8,1872.
National-bank notes

411, 543, 740

In Treasury,


Amount in cir- Amount in circulation
Jan. 1, 1892.
Jan. 1,1891.
320, 817, 568
333,767, 351
9,265,000 |

600,864,267 J 1,588,781,729

21,896, 783



Population of tlie United States January 1, 1892, estimated at 64,800,000; circulation per capita, $24.52.
Comparative statement showing the changes in circulation during December, 1891.
In circulation
Jan. 1,1892.

In circulation
Dec. 1, 1891.

Currency certificates, act June 8,1872.


62. 326.191
62. 776, 830
320,817. 568
75, 296,057
333. 767. 351
9. 265, 000
168.427. 433

$405. 931, 402
b2, 697, 204
142,649. 969
320, 873, 610
333, 364. 309

68, 607
56, 042


1, 577,262,070


4, 312, 771
12, 515,321

Net increase, $11,519,059.

Comparative statement of changes in money and bullion in Treasury during December,
In Treasury
January 1,

In Treasury
December 1,
Gold coin
Standard silver dollars
Subsidiary silver*».
Treasurv notes, act July 14, 1890
United States notes
National-bank notes
Gold bullion .
Silver bullion
Trade dollars as bullion


4,841, 754

349, 217, 549
2, 031,045

49, 794, 302
522, 534

579,236, 797
82,212, 689





Net increase, $10,542,593.
Gold certificates held in cash
Silver certificates held in cash.*
Currency certificates held in cash...






Decrease since December 1, 1891
Increase since December 1, 1891
Decrease since December 1, 1891



[From Sharps and Wilkins' Bullion Circular, January 1, 1892.]

The reduction of shipments of silver to India and China has amounted to nearly
three millions sterling. Notwithstanding the large purchases of silver which have
been majle by the United States Government in accordance with their silver legislation, America has been a frequent seller of silver to Europe, the net exports to this
side for the year being more than four millions sterling.
Our exports of silver to Spain and Portugal have been about three and one-half
millions sterling in excess of those of 1890 and to Japan more than one and a quarter
millions in excess.







Exports of silver from London to India and China for six months ending December 81,
1890 and December 31,1891.




Equivalent in
United States







Cost of coinage at each mint, 1891.

12, 542, 565

San Francisco...........
New Orleans
Carson . . . . . . .
Total and average

coined, exclu- for salaries,
sive of minor wages, and


Location of mint.


12, 542, 565
9, 870, 913
2, 384, 767

134, 667.25

56,207, 327


Cost per
Cost per
piece, includ- piece, excluing minor sive of minor

. 0239—
. 0203+

0.00992+ |


Statement showing by months amount and cost of silver bullion purchased dttring the calendar year 1891.

Fine ounces.


4,853,860, 263
4, 649,524,866

4,391, 025. 55
4,495,578. 04
4, 582, 384.32

Fine ounces.



4,447, 299, 348
4,599,885, 699
4,542,208, 857

370,661. 54


54,393, 912,540




Average cost per ouncefine$0,989.

Coinage executed at United States mints during calendar year ended December 31, 1891.



San Francisco.


Double eagles...
Half eagles
Quarter eagles

11, 040

$28, 840.00
306, 065.00






25,762, 500.00





1,543,856 |

1,543, 856.00


8, 694,206.00






554, 000.00
319, 611.60


Act February 28, 1878
Act July 14, 1890
Act March 3,1891 (trade dollar bullion)
Subsidiary :
Half dollars
Quarter dollars
Total subsidiary
Total silver
One cent.


Total nickel
Total coinage





873, 611.60




6,169, 611.60










Coinage executed at United States mintsy etc,—Continued.
Carson City.

New Orleans.

Pieces. - Value.






27,600. OO

Double eagles..
Half eagles
Quarter eagles.

5, 000 $100,000
103,732 11,037,320
208,000 1,040,000


Total . . . .

316,732 2,177,320



16, 564,350



Act February 28, 1878
1,618,000 1, 618,000
Act July 14, 1890
Act March 3, 1891 (trade dollar bullion)

1,919, 913 $1,919,913
2,500,000 2,500,000

Half dollars..
uarter dollars .



5, 078,472.00





23, 046, 716


!, 304,671.60


471,000 j 29,451,916


1,618,000 1,618.000 ( 12,562,529 8,425,529 j 53,014,651


10, 834,350
47, 072,350

841, 717.50

Total subsidiary.
Total silver

, 534, 616

7,954,529 7,954,529


1, 618,000 1,618,000

Total .

Five cents One cent.. Total nickel ...

I 63,906,700


12, 562,529 8,425,529 jll8,691, 971



Total coinage.

1,934,732 3, 795,320

Imports and exports of gold, calendar year 1891.










November .
December .

$204,634 $1,193,284
169,034 1,225, 721
940, 580 6, 510,848
2,786,684 14,111,263
3,338, 564 5, 533,153
2,486.486 3,532,365

$3,420 $1,401,338
$48,048 I $680,198
572,447 3,012,204 I 997,942
720,232 | 4,435, 504
32,740 14,130, 376
289,338 30,291,422
37,128 15,785, 272
38,268 1, 067,416 • 52,415 6,610, 259
23, 386 1,418,141 i 15,344
156, 824
10,771 7,462,199 !
15,095 16,913,042 : 127,202
8, 254 8,879,971
9, 043 6,027,894
47, 298


30, 580,760
6,662, 696


110,814,703 34,155,407

22l,G47 45,191,757 4,511,386 74,576,926






Imports and exports of silver, calendar year 1891.


451, 095

1,842. 419



$596,988 $1,915, Ml
759,077 1,736,043
769,119 1,818, 787
712,083 1,543,036
929,472 2,070,808
968,316 1,993,975
880,803 2,785,945
929,528 2,590,296
825,671 2,407,076
821,472 3,244,499
798,527 2,997,046
740,650 2,821,304

1, 643,894



| Total.

$676,564 $43,998 $1,662,462
619,834 10,226 1,633,262
540,777 12,215 2,082,455
693,023 11,758 2,104,376
593,546 13,931
2,900 1,552,406
1,023,544 22,650 1,683,384
2,520 8,152,003
1,400,024 82,777 2,617,350
7,451 3,238,196
2,797,810 13,687 4,623,400

5,222,233 12,970,517 -9,731,706 27,924,456 12,760,119 jl4,935,818 ,224,113 27,920,050

Currency movements from New York from July 1 to December 31, 1890 and 1891.


13, 473,000
1,250, 000

West and Northwest...
New Orleans and South.
Philadelphia and other .
San Francisco


$40,410,000 j $49,766,000

Total .

Financial chronicle estimates—shipments from January 1 to December 31,1891.
Total, (including Treasury)
Same, 1890


Chronicle estimates—receipts of currency by banks.
January 1, 1891, to December 31, 1891
January 1, 1890, to December 31, 1890

81,095. 000

Provisional monthly statement of stock of gold and silver coin in the United States to February 1, 1982, by the Director of the Mint.
Silver coin.
Gold coin.


Last official statement, July 1,
Gain or loss subsequent to
above statement (estimated).

Full legal


$405,659, 268


6, 210,472


411,869, 740

76, 910,813

606, 287,197
Estimate for February 1,1892..

Gold bullion.

Total gold
and silver

Total silver.

$483,507,968 $1,068,648,018
5, 272,585 |


488, 780,553 j 1,095,067,750
Silver bullion. Total bullion.

Bullion at mints and assay
offices (silver at coining
Total coin and bullion...




563,693,710 | 1,254,280,596


E . O . LEECH,

Director of the Mint.


Amount of cash held by all national banks in the United States, at several dates named,
and classification of same.
Feb. 28,1890
May 17,1890
July 18,1890
Oct. 2,1890
Dec. 19,1S90
Feb. 26,1891
Mav 4,1891
July 9,1891
Sept. 25,1891

Gold coin. ! Silver coin.

Gold cer- t Silver certificates. j tilicates.


'U.S. notes-l


$72,286, 956.05 $12, 072,559. 85 $82,425, 560 $14,761, 061 $21, 318,480 $9i 381, 602; 5298,246. 219.80
! 72,001, 180. 24^ 10, 077,467. 19 80,484, 720' 15,002, 127, 1.9 813,670 96, 223, 992 294, 203, 156.43
; 73,989, 092.34; 11, 318,553. 22' 77,431, 100, 15,865, 318 21. 184,428 102, 305, 469 302, 093, 960. 50
' 74,664. 828.34 10, 810.141. 50 96,804, 60.5 13,629, 284' 18. 492,392 86, T>9, 7311 301,160, 981.84
77, 325, 784.30; 11, 647, 203. 90 8.3,60O, 980 13,484. 038 18. 832,221; 87, 937,126 296,832, 353.20
82, 050, 509. 31 i 13, 181. 694. 51 j SS.610, 900 17,397, 259, 19, 076.085101, 055,399 321,371, 446.82
82, 801, 098.98 12, 037,071. 73 81,738. 460 18,272, 78L! 20, 456; 257 107, 890, 249 323,285. 917.71
87, 695, 142.11 12, 635, 390. 35! 70,616. 310 19,802, 695 21 418, 977 119, 244, 811 331.433, 325.46
84,464, 347.24; 11, 167, 323. 07J 67.473, 670 20,409, 735 19, 991,167 113, 335,608 316,841, 850.91

Amount of cash held by the national banks in the Middle 8tu1e$, at several dates named
and classification of same (exclusive of the cities of Xew Fork and Philadelphia).

Gold c

Silver coin.

Gold cer- j Silver certificates. | tificates.

Feb. 28,1890 $10,983, 833.74 $2,365, 108.80' 56,159.920
Mav 17,1890 10,035, 036.92 1,921, 416.93' 5,581,650:
July 18,1890 11,287, 585.54 2,260, 182.55; 6,420.170;
Oct* 2,1890 11,565, 175.80 2,382, 208.13) 6,867, tUOj
Dec. 19,1890 11,782, 680.50 2,468, 035.90; 5,695,860
Feb. 26,1891 12,272, 885.92 2,634, 574.80 7,033,830
May 4,1891 12,819, 913.25 2,419, 175.65 6,252,650:
July 9,1891 13,789, 250.49 2,545, 359.36 5, 076.860j
Sept. 25,1891 ! 12,812, 987.42i 2,367, 654.54i 5,524,960


IU. S.notes.

$2,254,782; $3.174,765 $15.144,258!
2,210, 306: 2.791.932 1 5,014,548]
2,696,954! 3,447,899 14,980,153
2, 582. 692 2,886,621! 14,138,388
2,828.845 2,772.593 14,631,719
3,007,215 3,004,769 14,909,102
3,109,380 3,157,434 14,826,942
3. 515, 464 3,510,076 16,470,534
3,361,779 2,940,592 10,073,655

$40,082, 667.54
>. 85
41.092, 944.09
40,422, 724.93
40,179. 733.40
42,862, 376.72
42.585, 494.90
44,907. 543.85
45,081, 627.96



Amount of cash held by the national banks in the Southern States, at several dates named,
and classification of same.
Pel). 28,1890
May 17,1890
July 18,1890
Oct. 2,1890
Dec. 19.1890
Peb. 20,1891
May 4,1891
July 9,1891
Sept. 25,1891

Gold coin.

Silver coin.

Gold cer- Silver certicates.


$3,473, 893.54 $2,418,573.74 $1,355,490 $2,048,178
802,370 1,801,862
3,515,215.37i1 2,024,594.76
583,630 1,848, 482
3, 516, 345. 03 2,144,404.75
878,710 1,440,317
3,936,449.22 1,728,463.99
6,163,785.87 1,908,380,03 1,057,510 1,351,425
6,691,507.42 2,775,801.14 1,323,860 1,592,794
5,350,625.82 2,417,306.92 1, 053,260 1,508,157
4,884,834.36 2,448,653.01 1, Oil, 260 1, 422, 673
4,347,454.30 1,827,989.97
655,760 1, 777,731

U. S. notes.


$3,193,726 $12,693,228 $25,183,089.28
2,554,516 10,716,487 21,415,045.13
2,212,611 10,015,870 20,321,342.78
2,315,715 9, 649,472 19, 949,127.21
2,373,849 9,940,221 22,795,170.90
2,497, 442 10,026,847 24,908,251.56
2,107,428 9,442,03] 21,878,808- 74
2,139,623 9,091,382 20,998, 425.37
1,986,203 9,549,986 20,145,124.27

Amount of cash held by the national banks in the Pacific States and Territories, at
several dates named, and classification of same.

Gold coin.

Peb. 28,1890 $9,932, 339.07
May 7,189?
July 18,1890
Oct. 2,1890
Dec. 19,1890 10,483,896.35
Peb. 26,1891 10, 809,241.60
May 4,1891 10, 663, 901.99
July 9,1891 j 9,858,339.2Z
Sept. 25,1891

Silver coin.
658,435. 01
840,923.20 !
965,843.71 I
955,151. 73
1,000,287.13 j

Gold cer- Silver certificates. tificates.


U.S. notes.


$147,195 ' $944,545 $2,610,405 $14,782,538.93
981,432 2, 592, 728 14,659, 529.61
398, 870
236,233 1 1,125,582 2,646, 595 13,827.176.96
652, 990
222,907 ! 1,155,598 2, 844,585 14,745,177.20
219,194 ! 1,175, 830> 2,658,230 15, 756, &53.55
246,986 1,010,312 2.924,524 | 16,531,547.31
984,559 • 2,813.208 16,656,872. 72
236,241 !
226, 661!' 1,001,585i 2,519, 903 15,226,035.36
995, 248j 2,348,812 , 14,781,743.52
215, 680



Amount of cash held by the national banks in the New England States, at several dates
named, and classification of same (exclusive of the city of Boston).
Peb. 28,1890
May 17,1890
July 18,1890
Oct. 2,1890
Dee. 19,1890
Peb. 26,1891
May 4,1891
Julv 9,1891
Sept. 25,1S91

Gold coin.

Silver c5in.

$5,033,365.64 $1,105,751,32
961,960. 58
5, 039,939. 43
5,251, 475.59 1,120,274.90
5,282,557.97 1,144,872.18
5,095, 712. 98 1,117,759.56
5,282,467.50 1,164,271. 87
5,416, 203.38 1,094,430.54
5, 602,513.95 1,257,435. 27
5, 691,974. 29 l t 088,238.50

Gold cer- Silver certificates. tificates.

1,096, 035
1, 034, 660


U.S. notes.


$2,403,140 $3,897,762 $13,907,376.96
2,169,543 3,650,131 13, 260,341.01
2,792,491 4, 244,100 J 15,157,069.49
2,262,944 3,976,227 ! 14,445,866.15
2,308,665 4, 006,364 | 14,443,446.54
2,082,313 3,699,674 J 14,116,546.37
2,265,272 3,689,468 14,376,929.92
2,774,541 4,337,333 : 16,163,016.22
2,368,526 3,887,897 | 15,158,451.79

Amount of cash held by the national banks in the city of Chicago, at several dates named,
and classification of same.

Gold coin.

Peb. 28,1890
May 17,1890
July 18,1890
Oct, 2,1890
Dec. 19,1890
Peb. 26,1891
May 4,1891
July 9,1891
Sept. 25,1891

10, 990,932.00
11,745, G42.50

Silver coin.

Gold cer- Silver certificates. tificates.




$425,698,23 $3,208,100 $1,379,139
$876,955 $8,313,292 $24,010,761.23
353,713.48 3 031,100 1,685,003 1,279,800 11,001,961' 28,586,181.58
390,831.18 2,812,250
810,464 1,043,811 9,738,4021 25,471,949.48
413,956.72 5,215,400
586,340 7,790,6031 25,383,602.22
489,050.22 4, 606,000
584,257 7,386,876 23,659,459.72
409,537.08 4,997,000
743,389 1,072,143 8,651,912 26,864,913.08
412,888.55 5,591,980 1,962,137 - 2,407,461 12,749,9761 34,870,085.05
383,389.90 5, 219,000
983,031 1,408,668 9,135,360' 29,820,949.40
424,376.25 5,449,500 1,250,591 1,153, 643 11,024,540' 32,320,795.75

Amount of cash held by the national banks in the city of Philadelphia, at several dates
named, and classification of same.
Silver coin.

Gold coin.


Feb. 28,1890
May 17,1890
July 18,1890
Oct: 2,1890
Dec. 19,1890
Feb. 26,1891
May 4,1891
July 9,1891
Sept, 25,1891


Gold cer- Silver certificates. tificates.

tJ. S. notes.


$1,705,672.00 $507,136.45 $6,376,280 $782,411 $253,044 $5.189,832;1 $14,814,375.45
253,808 4,774, 643 15,783,518.84
410,591.34 7,974,260
222,318 5,965,5521 16,812,244.49
537, 754.99 7,236,400 1,136,706
239,519 5,720,538; 15,513,786.81
597,913.31 6,300,210
169,866 5,189,531 15,590,364.77
2,199, 374. 50 617,236.27 6,378,830 1,035,527
1,849, 893. 00 613.793.68 8,911,670 1, 207,098 191,549 5, 242,546! 18, 016,549.68
217,631 6,322,572; 21,879,719.26
401, 536. 7611,889,690 1,176,015
249,841 6,452,688; 21,698,561.82
649, 327. 8210,648,840 1,586,172
235,969 7,374,827 20,083,562.55
533,419. 55 8,415,720 1.651,178

Amount of cash held by the national banks in the city of Boston, at several dates named
and classification of same.

| Gold coin.

Silver coin.

Gqld cer*

Silver certificates.


U. S. notes.


Feb. 28,1890 ! $3,871,130.00 $189,998. 54 $5,123,500 $881,048 $759, 595 $4,351,229 $15,176,500.54
760 000 3,632,780 16,117,862.42
148, 534.42 6,601,380
May 17,18&0 1 4,054,967.00
188, 569. 93 5,061,170 1,363,629 1,036,895 4,381,453 15, 861,945.93
July 18,1890 3,830,229.00
832,858 3, 629, 328 15,820,796.51
Oct. 2,1890 3,651,524. 50 172,270. 01 6,538,790
904,210 4,768,091 17,201,280.89
196,159.89 6,571,610 1,467,959
Dec. 19,1890 3,293,251.00
644,282 4, 087, 543 15,183,436.99
198,825.49 5,977, 620 1,081,972
Feb. 26,1891 1 3,193,194.50
720,447 3,713,294 15,565,680.93
189,354.43 6,517,500 1,209,464
May 4,1891 ! 3,215,621.50
953, 287 5,114,292 15,924,535.05
July 9,1891 ; 3, 375,228.00 225, 081. 05 4,607,360 1,649,287
Sept. 25,1891 1 3,414,499.35 195,384.95 3,835,130 1,481.759 1,008,138 6,840,705 16,775,616.30

Amount of cash held by the national banks in the Western States, at several dates named,
and classification of same (exclusive of the city of Chicago).
Gold coin.

[ Silver coin.

$18,472, 048.96
18, 789,589.83
20,483. 383.28
19, 776,997.19
21,014, 341.10
23, 241,751.37
23,759, 126.29
25,366, 071.40
24,038, 243. 96

Gold certificates.

Silver certificates.



U. S. notes.


£3,548,685. 53 $3,449,860 $2,274,845 $8,206,746 $24.815,353 $60,767, 538.49
3, 039, 002.43 3,743,640 2,131,408 7,523,!, 909 25, 242 122 60,469, 671.26
i, 323 26, 286,' 591 63, 904,231.52
3, 532,852. 24 3,407,070 2,249,012 7, 885,
3,145,267.59 3, 966, 240 2, 308,069 7,522,!, 544 25, 150, 491 61,869. !. 78
3, 407, 248.94 4,577,220 2,144,705 7,309,,799 23, 250,492 01,703, 806.04
3,856,907.24 3,657,300 2,303,722 7,118,1,770 23, "38, 717 63,917, 167.61
!53. 506 66,083, 080.77
2, 585,034.48 3, 942,140 2,667,949 7,275,i, 325 24,853,500j
3,626,341/43 4,151,130 2,492,831 7,740, 464 23, 031,954' 66,408, 791.83
3,302, 419.32 4,238, 740 3.600,600 8,007, 720 22,248,956| 65,416. 679.28

Amount of cash held by the national banks in Xew York City, at several dates named, and
classification of same.

Feb. 28,1890
May 17,1890
July 18,1890
Oct. 2,1890
Dec. 19,1890
Feb. 26,1891
May 4,1891
July 9,1891
Sep. 25,1891

Gold coin. 1 Silver coil. j Gold cer- Silver eer! tiScates. ! tificates. I



$623,882. 37 $55,794,500 $4,224,685 $1,505.
538,866. 13 51,289,6201 4,483, 706 1,498,
485,247, 67 50,705,190! 4,523,460; 1, 417,
595.602. 03 65,551,590j 3,681, 745; 690,
602, 409.89 55,521,560; 4,621,802 1,233,
562,139. 50 55,281,820 6,179, 423j 1,454,
502,192. 27 44,632,560 5,351,752 1, 320,
519,515.38' 38,298,120 6, 719,853 1,640,
556, 783.49, 37,523,360 5,871,631 1,295,

TJ. S. notes.


366, 24a $89,522,371.37
598, 592 86, 326,116.73
046, 753 89,627, 055.82
860, 099, 93,010, 292.03
105, 602 85.502,537.39
774, 534 98,971, 048.50
474,251! 89,389, 245.02
091,365! 100,285, 466.56
986,230 87,078, 249.49



FEBRUARY 3, 1892.

Mr. STARK then appeared before the committee and read the following paper:
GENTLEMEN OF THE COMMITTEE: Economies being the science of exchanges, all
live questions within its scope are at bottom a contention as to how much of the
things another has, but which I want, can I get for the things I have to spare f Stated
impersonally it is, what shall be the rate at which different classes of economic quantities swap for each other?
The classes of these quantities and their swapping rate, involved in the legislation
under consideration, are just two, viz, the money of account in this country, i. e.,
the money in which our business is transacted and prices made, on the one side, ana
all vendible things on the other; and the evil or mischief complained of is the abnormal and oppressive'change in the swapping rate between these two forms of
wealth, which, commencing in 1873, is still going on, to the detriment of all products.
It is what is familiarly known as the fall of prices, and the distress it entails upon
the prodiicing classes.
It is vain to attribute that change in the value or purchasing power of our money
to anything else than the act of 1873; whether that act caused the two metals to depart from their old-time value ratio (as I believe, for the pretended disproportion of
production is sheer humbug), or whether gold rose so in relation to silver from forces
over which legislation had no control, makes no difference for my point here, for that act
snatched away from silver the dollar definition and put it upon gold alone, and compelled our money to follow the fortunes of gold. But for that act we should have resumed on silver, and howsoever gold might have behaved our valuing unit could
never have risen in value above 4121 grains of standard silver, because anchored to
that by law with an open mint.
The redress demanded is free from legal complications. The end is to reconstitute
our money standard so that,first,its farther appreciation shall be arrested; and,|second,
so far as may be without departure from long established money definitions,tnat normal prices may be restored. The mode of the redress is simple, viz: a repeal of the
legislation which caused the mischief. Put our money back again upon the double
standard, or if you prefer, upon the alternate standard, i. e., the right to that metal
which for the time being may be the cheaper, if it shall happen that the commercial
ratio does not coincide with our legal rating.
By that means, as every person of competent intelligence understands, we shall
get the best guaranty compatible with a metallic definition of the money unit, that
is open to us against any further increase in the value of money, i. e., any further
fall of prices.
Please observe, that in this discussion, by the phrase appreciation or increase in
the value of money is meant exactly the same fact as a fall in the general range of
prices, while depreciation or lessening value of money is the same fact as rising prices.
These propositions are fundamental for science or any coihpetent thinking on this
subject, because they have direct relation to the chief practical use of" money.
Such phrases therefore as "intrinsic value/' or value outside of a market relation to
some other and different thing, and the inveterate habit of measuring the value of a
dollar or expressing its value-change in terms of money, are delusive, incompetent,
and illegitimate. Such conceptions doom discourse to travel in a vicious circle of
money words that leads nowhere.
For the purpose of the main inquiry we have no need to take advice of dealers
in foreign money. The practices of loan agents, foreign or domestic, and the skill
of security mongers, are alien to this quest. The mental habitudes and methods
begotten of a counting-house training are disqualifies. The melting pot will not
help here. The data for sound reasoning on this subject are all derived from the
transactions of the marts; all places where goods and money are offered and
exchanged for each other.
This whole discussion is belittled to contemptibleness, if narrowed to a study of
how a dollar of one kind will swap for another kind of a dollar or with a pound sterling, under the proposed legislation. Not only is the subject belittled and rendered
unimportant to all but one in a hundred thousand of our population, but a competent
treatment of the petty question of the commercial relation possible or probable to
accrue between the two kinds of dollars, is impossible if it proceeds in disregard of
the reciprocal action of all goods on one side, and the entire mass of money, however
made up, on the other. The forces constituted by that interplay dominate as valuechanging forces, and will submerge and often totally obscure the lesser forces constituted by the competition or cooperation of different kinds of money.
Single-standard arguments, emanating from high quarters, ignoring—or, shall I say
more charitably, in ignorance of the nature of value, how it arises at all and how it

undergoes change, i. eignorant of both the statics and dynamics of value—predict
comical incompatibilities in their frantic propliesyings. For example, they predict
as concurrent phenomena a " debased" or " cheapened dollar/7 and lower prices
made in the terms of such debased dollars—i. e., a cheaper dollar with increased purchasing power. They talk about a dollar "really" worth but 75 cents, yet in commercial fact buying a&^much of everything as another dollar which they pretend
has a monopoly in being worth 100 cents. They represent the greedy silver producer
as taking 75 cents worth of silver to the mint, getting a coin dollar for it, thus
cheating the mint out of 25 cents, then passing it on as 100 cents to some poor laborer
and cheating him again out of 25 cents; and foreigners will bring 75 cents worth of
silver here and compel us to pay them a gold dollar for it.
The imbecility or hypocrisy, for I will not mince words, betrayed by such twaddle (and it constitutes the staple of the argument from that side) consists in a disregard of the fundamental propositions above laid down and the travel in the vicious
circle of money words. Moreover, such views assume that the chief business of
money is to buy other money with, foreign or domestic; according to which view a
fixed par with\vhat is euphemistically called "best money" "honest money" becomes the criterion of legislative duty and the test of commercial honor, whereas
that employment of it does not constitute a thousandth part of the uses of money,
and so cuts no figure as a force determinant of its value any more than a bucketshop ticker determines the value of stocks. The real force is found just where
money is functioning in its supreme office of swapping with goods. In that office,
not parity with foreign money, but stability and constancy in value, or at least no
continuous or permanent appreciation, is the desideratum in monetary legislation.
As before stated, that is the same fact as stability of prices. Such a constitution of
money secures equity in time contracts, gives confidence to enterprise, occupation
to the willing, opportunity, and encouragement to the wealth-creating energies.
As constituted for the last eighteen years, that has not been the behavior of money
of gold. The inconsequent thinking, above exposed, crops out here again by such
comment as this: "Oh, yes, prices have fallen about one-third, and so of course a
dollar will buy more than it used to. But this imports no change in gold, for goods
are produced more cheaply and have become more abundant." These gentlemen do
not know that by admitting a fall of one-third in prices they confess an appreciation
of 50 per cent in the value of money. But not attempting to carry our argument by
definition alone, we reply, suppose "that pari passu with this increase of goods there
had been a corresponding increase of standard money. Suppose all this time the mint
had been open to silver, and so silver had become the pricing instrument, could priceshave so fallen? No competent intelligence will affirm it.
A practical proof and illustration is furnished in the case of British India. There
is no great country and people on the globe with whom in the last twenty yearsthere has been a more rapid advancement in the arts and appliances of production
than in India. She has enormously increased her production of the great stajdesfor
food and fabric and has become our most formidable competitor in European markets, She has in that time become a formidable competitor in manufactured products, cutting into England's fabric trade with China. With all this rapid advancement prices nave not fallen in India. The rupee, a freely-coined silver money, has
been and is still constant as an instrument of valuation and has given to that country's industries a marvelous growth; and industrial India is prosperous. Will any
one pretend that if our money were put back upon a silver basis it would not raise
prices? Why, one of the stock objections to free coinage is, that it will enormously inflate prices. This confesses our claim with a large margin of exaggeration.
What is the supreme excellence of a money? With one accord the answer comes,
constancy or stability of value. This statement is so much a common place in monetary discussion that it easily, almost flippantly, gains assent ; but tho first step
taken in its application and the argument is mired in the slough of popular misapprehension as to just what that word constancy in value as applied to a dollar means.
Till we know what value is, and how a value change in money or a standard metal
is to be ascertained, and how expressed, discourse is vain. It is thought by these
incompetents that "100 cents" adequately defines and fixes the value of a dollar
and 20 shillings a pound. As though an affirmation that a real thing-dollar, had
any more or any less than 100 cents in it was not a fellonious assault upon our decimal notation and an insult put upon the dictionary. The crucible may tell you the
chemical composition and the scales the weight of a coin, but you can never know its
value but by going to the market and seeing how much you can swap it for of something that is not money. From that verdict there is no appeal.
Therefore, it is that the merits of free coinage is not to be tested by the way one
dollar will swap for another, or submitted to the umpirage of gold. The gist of our
complaint is that gold, under a monometallic policy, has become an inequitable
and extortionate valuing instrument alike to silver and all goods, and we impeach
its assumed sovereignty in that office. Having by the act of 1873 usurped the throne



when it pronounces judgment against silver as a short, a cheap, a dishonest money,'
we decline to abide by that judgment. We deny that that piece of legislation is the
very Lord's anointed with divine right of perpetual succession.
"Well, gold is the world's standard anyway, and we can't help it." We do not
legislate a money constitution for the world, but only for this country, is our reply.
" But why disturb and unsettle everything now since the price range has become
adjusted to a gold level?" We are reminded of the reply of the fishwoinan, when
remonstrated with for the cruelty of skinning her eels alive; it was, " Oh, yes j it
used to seem cruel when I first began, but now the eels have kinder got used to it
and don't seem to mind it." The income classes may think everything is lovely, but
a gold "level" of prices is no level. It is a down grade toward a bottom whose
depth no man has sounded. It is no adjustment, it is a malhdjustment and a continuing spoliation of the producing classes. They have long felt that something
was wrong, and they are beginning to understand now what it is that hurt them,
and the feeling of patient endurance as of a hardship is now assuming the form of a
sense of wrong, demanding redress, and it will not be put off by a promise of an international palaver.
WTe are threatened by our adversaries with a gold premium and nebulous calamities; just what, we are not informed, but it will be something awful. But in all
seriousness we ask, What useful industry, what honest vocation will be hurt by a
gold premium, and how will it come? Will some person give us a coherent and
reasoned answer to that question? Every attempt at it I have met with (and it has
been my vocation to read them all attentively), every one of them, runs into absurdities and self-stultification similar to those referred to above. The value changes of
everything else are computed and expressed in gold money, but the value changes
of gold arc measured by itself and it is found to have no value changes at all! By
that method anything—iron, putty, or nutmegs—can be shown to be unchanging in
But if by a redundant volume of silver money all our gold should go abroad, the
entire six hundred millions, if it should bring home an equivalent of our securities it
would be a good thing for us. As to our having money to pay international balances
in that event, if our output of gold and silver is insufficient to pay an adverse
balance, that would be a good time to stop having an adverse balance.
In case gold should go to a premium and hold a varying ratio to our silver money,
if we are correct in our claim of superior stability of silver, those countries which still
keep their domestic industries and commerce upon a fluctuating gold basis must be
at a disadvantage.
But since we are having perpetually cast up before us as a bugaboo a gold
premium, a word or two on that point. Of course it is like all other economic problems, a question of quantities, and no careful student would affirm aggregate results
while the principal factors can not be ascertained with an approximate definiteness
But assuming that there will come to our mint for certification into money two
hundred millions the first year and from seventy-five to one hundred millions annually
thereafter, I should say that not for ten years to come could there accrue to gold
any greater premium than would suffice to determine it as the metal to pay international balances rather than silver, r. e., say one-half of 1 per cent.
This assumes that no increase of uncovered legal-tender paper will take place; a
rash assumption, perhaps, from the present indications. Any considerable increase
of national or state bank money would, of course, complicate the problem very much;
but I trust the day for that sort of money has gone by.
I thank you, gentlemen, for your courteous hearing, and shall be most happy now,
or any time here or elsewhere, to answer any questions that may be put so far as I
am able to.
Mr. WILLIAMS, of Massachusetts. As I gather from hearing your article read, you
look forward without any feelings of discomfort to the sending abroad of all our gold f
Mr. STARK. Yes, sir. I say that if we get a full return for it when it goes.
Mr. WILLIAMS. YOU have no apprehension that any trouble will arise from all our
gold going away ?
M r . STARK. NO, s i r .
Mr. WILLIAMS. In other

words, I suppose you mean by that that you desire a silver
standard for this country and the abandonment of any bimetallic standard?
Mr. STARK. I believe in having a legal right to use both metals. That is what constitutes a double standard.
Mr. WILLIAMS. WThat do you mean by that} "the legal right to use both metals?"
Mr. STARK. I mean free, open mints; that is what I understand to be the double
Mr. WILLIAMS. You would, in conjunction with that, give the legal-tender quality
to both?
Mr. STARK. Yes, sir; that is what I mean.
Mr. WILLIAMS, I understand, also, that you have no apprehension from what is called
a premium on gold?

Mr. STARK. Not at all. I do not think there is any danger in it.
Mr. W I L L I A M S . You thiuk it would be a good thing?
Mr. STARK. My notion is that there would not be any such thing. I have no apprehension of any harm in case it should.
Mr. W I L L I A M S . You can not see that anybody would be injured by that?
Mr. STARK. I can conceive of a possibility that some people's interests might be
affected. Every change will affect somebody; for example, a speculator on margins.
I can not comprehend any injury to any great industry of ours, or to any useful or
honest occupation.
Mr. WILLIAMS. TO your mind it is a very powerful argument for the free coinage
of silver that India has progressed easily under it. Do I understand that to be your
position—that because India has flourished, therefore it would be a desirable thing
for us.
Mr. STARK. I mean India industrially considered. There are two Indias: there is
a debtor India and a productive India. The former has been in great stress, her debts
being sterling debts, but industrially and productively India is prosperous under
her present monetary situation.
Mr. W I L L I A M S . Those two are not separated on the map.
Air. STARK. They are distinct in all competent thinking on this subject.
Mr. TAYLOR. If the gold in this country should go abroad it would take from us
much of our circulation.
Mr. STARK. It would not go abroad until it is displaced.
Mr. TAYLOR. But suppose it should go abroad?
Mr. STARK. It will go abroad only by reason of silver coming here to take i g
place. If it went abroad by reason of a redundant circulation it would be a good
thing to the country.
Mr. WILLIAMS, of Massachusetts. Your proposition is that you would consider it
a fortunate thing for us if our gold went away and we got silver in return ?
Mr. STARK. Yes, sir; provided our money volume remained ample.
Mr. T A Y L O R . Where and how is the price of cotton, wheat, and grain fixed?
Mr. STARK. There is an erroneous idea about somebody "fixing" the price of everything. The price is fixed by the two parties who agree on a price.
Mr. TAYLOR. IS not the price governed and controlled by the market price at Liverpool ?
• Mr. STARK. NO, sir; the price is not controlled there. It is controlled by the cotton fields and the seats of production generally.
Mr. TAYLOR. Are not the prices fixed in Liverpool?
Mr. STARK. They register the price in Liverpool, but that is not the controlling
force in setting the price.
Mr. T A Y L O R . Do not they look over the field and see how much cotton is being produced?
Mr. STARK. If they fix the price wisely they fix it by reference to conditions, and
the pricing money is a controlling factor.
Mr. TAYLOR. HOW are we going tofixprices if this country be put on a silver basis?
Mr. STARK. YOU are making a confusion there by having in your mind two kinds
of money which are assumed to have a disparity in value simultaneously with
identity. If we had free coinage the price would be in silver, wherever gold may
go. Then prices would all be in silver in this country.
Mr. T A Y L O R . YOU take the ground that one dollar worth 7 0 cents and another
dollar worth 100 cents will circulate together?
Mr. STARK. No; there is a confusion in that question.
Mr. TAYLOR. I mean in the markets of the world.
Mr. STARK. I say if a gold dollar shall be commercially worth a quarter more than
a silver dollar, it will buy a quarter's worth more of everything.
Mr. TAYLOR. They would not float side by side?
Mr. STARK. They would not nominally be at par.
Mr. T A Y L O R . One would have to go out of circulation ?
Mr. STARK. Not necessarily, but one probably would.
Mr. T A Y L O R . I should not think there would be any probability about it.
Mr. STARK. All men are at liberty to do as their interests dictate in that matter.
Mr. W I L L I A M S , of Massachusetts. What do you say in reference to Senator Stewart's accusation that the bankers and tradesmen of England have been combining to
depress the price of silver in order that they can have advantage in trade with India t
Mr. STARK. I have no opinion of that. That is alleged, but I am not competent
to answer that question.
Mr. W I L L I A M S . YOU are aware that Senator Stewart has raised it?
. Mr. STARK. He has said that.
Mr. W I L L I A M S . YOU say it has been your business to study this subject ?
Mr. STARK. It has been my business almost exclusively for a number of years.
Mr. W I L L I A M S . In what capacity?
Mr. STARK. I have followed it perhaps for fifteen years as a side business with



the practice of law, and for the last three years I have devoted almost my entire
attention to its study and have made it a business to read everything that I could
find on the other side.
Mr. WILLIAMS. Are you doing this for yourself or are you acting in anyone's
interest ?
Mr. STARK. I have purely and simply a public interest in it. I have no other
interest. I never had any mine, and never expect to have; none whatever. I will
say very frankly that I am not bearing my own expenses. Some persons have made
small contributions to my expenses, but I am a sincere advocate in this matter.
Mr, WILLIAMS. YOU are a lawyer by profession?
M r . STARK. Y e s , s i r .
Mr. WILLIAMS. DO you consider that vou are in anyone's service?
Mr. STARK. I speak entirely for myself.
Mr. WILLIAMS. Are your expenses borne by any organization or combination?
M r . STARK. YE^, s i r .
Mr. WILLIAMS. What, may I ask?
Mr. STARK. I am paid a sum by the National Silver Committee.
Mr. WILLIAMS. I suppose you have given Senator Stewart's proposition some con-

sideration, having made it your business to study the subject?
Mr. STARK. Yes, sir; but I always distrust the imputations made by one interest
by way of attributing improper motives to those on the other side.
Mr. WILLIAMS. YOU will excuse me, but I was not asking questions with the view
of imputing motives to any one, but merely to ascertain the fact as to whether in
your judgment Senator Stewart is right in saying that parties in England have
purchased council bills for the purpose of depressing silver in India with the object
of getting it cheaper.
Mr. STARK. I understand that is the motive.
Mr. WILLIAMS. I ask for the fact merely.
Mr. STARK. I do not know that that is done.
Mr. WILLIAMS. You do not know that that is done?
Mr. STARK. I can easily see how it might be so.
Mr. WILLIAMS. Have you followed the sales of these silver council bills?
Mr. STARK. Yes, sir; I have understood the operation of them somewhat.
Mr. WILLIAMS. Have you found any indications such as Senator Stewart has
found, that the sales of those paper securities for silver have been directed to the
depreciation of the prices of silver in India?
Mr. STARK. I can see how it would operate that way.
Mr. WILLIAMS. Have you found that sales were actually made and that the object
was to depress silver?
Mr. STARK. I have supposed that they have been made for that purpose with a
view to getting a commercial advantage. I can easily see how importing England
would be benefited.
Mr. WILLIAMS. I ask you whether you have seen, in the sales of those council bills,
any indication that sales have been made for the purpose of depressing the price of
silver in India ?
Mr. STARK. There are some indications—Ldo not say conclusively.
Mr. WILLIAMS. Where do you find it and when?
Mr. STARK. If they can make these council bills serve their purposes they will do it.
Mr. WILLIAMS. I am asking when and where you have seen any actual indications
that those sales have been made for the purpose of depressing the price of silver?
Mr. STARK.—No further than the fact that they have been made. I do not pretend to impute to any one improper purposes.
Mr. WILLIAMS.—If you did not know anything about the sale of these council bills
that would make it different; but if you have studied these sales, being interested
in this question and an advocate on one side of it, you ought to be able to state
whether, watching the course of the market, you have seen any indication that they
have been sold for the purpose of depressing silver.
Mr. S T A R K . — I have said to you that I understand that sales of those bills would
tend to depress the ]>rice of silver.
Mr. WILLIAMS.—That is all you know aboiit it ?
Mr. STARK.—That is all I intended to say. I can not answer you any further.
Mr. BARTINE.—If, instead of sending $60,000,000 a year in silver direct and bodily
to India, these council bills had been sold, you can see that that would depress the
price of silver.
Mr. STARK.—Precisely; it would have that effect.
The CHAIRMAN.—Mr/Newlands desires to be heard, and if the committee want to
hear him we can indicate the time. We have from now until next Wednesday for
that purpose. What is the pleasure of the committee ?
Mr. WILLIAMS (of Illinois).—I move that we meet on Monday next at 1 0 : 3 0 o'clock.
The CHAIRMAN.—If there is no objection the committee will stand adjourned until
10:30 o'clock Monday next.


Monday, February 8, 1892.
The committee was called together at 10:30 o'clock.
The CHAIRMAN (Mr. Bland). I suppose if Mr. Newlands is ready, we might as well

Mr. NEWLANDS. Mr. Chairman and gentlemen of the committee: I intend to address myself simply to the question as to whether it is possible by international conference to effect the restoration of silver to its old place. You are all aware that
there have been three monetary conferences within the past twenty-four years which
embraced the principal commercial nations of the world. The first was held 111 1867 ;
the second in 1878 ; and the third in 1^81. These conferences embraced all the principal nations of Europe and the United States of America.
At the first conference in 1^67, which was called, I believe, at the instance of
France, the sole question under discussion was the adoption of a uniform monetary
standard of all the world. The powers there represented, including the United
States, unanimously declared themselves in favor of the single *g<>ld standard. The
debates contain 110 suggestion of the now familiar axiom of monetary science that
the value of each unit of money depends upon the quantity in circulation, not upon
the quality ; that if the quantity of units is increased the purchasiug power of each
unit is diminished, and that if the quantity of units is diminished the purchasing
power of e^ch unit* its control over debts aud products, is increased.

There was no suggestion that gold was becoming too scarce for sole use as money.
There seemed to be a general acquiescence that there should be a single standard of
value, just as there was a single standard of weight or bulk or measurement. But
they lost sight of the fact that money is not only the staudard of value, the term in
which the value of other things is expressed, but is itself the one thing that is exchangeable for all other things. The yardstick or the peck measure is not exchanged
for the thing it measures. The accuracy of the yardstick as a standard of measure
is not dependent upon the quantity of yardsticks in existence. But the value of the
dollar, its purchasing power, is dependent upon the number of dollars in existence.
An increase in the number of dollars means expansion and higher prices for commodities. A reduction in number means contraction, and consequently lower prices
of commodities and higher,value of money.
The argument proceeded entirely upon the idea that gold was more portable, convenient, and valuable, and it never seemed to enter into the consideration of any
mind there, according to my reading of the report of that conference, that a metal
might be too scarce to use as money.

It is evident that master minds controlled this conference of 1867, aud that powerf u l interests backed it. It is true that people then had not learned the lessons In
monetary science which hard experience has taught us, but it seems incredible that
the members of that conference could have been ignorant of the effects of the international policy which tney then outlined.
As the result of that conference we find there was a movement in this c o u n t r y
headed by Mr. John Jay Knox, Comptroller of the Currency, and Senator Sherman
to put- this country upon a gold standard. Similar movements went on in Europe,
all doubtless the result of the concerted influence of the money-lending classes.

In 1871 Germany took a partial step toward the gold standard by remonetizing
gold. Prior to that, in 1857, yon will recollect that she had put herseif upon a monometallic silver basis, in obedience to the fears of that class of writers upon monetary
science who declare that as the result of the discovery and opening of the gold fields
in Australia and California gold was becoming too plentiful, and that the safety of
the creditor nations demanded that they should put themselves upon a monometallic
silver basis. But in 1871 Germany partly reversed her course by restoring gold to its
old place side by side with silver as the money of the country. She did not demonetize silver at that time, but simply put herself upon a bimetallic basis instead of remaining upon the monometallic silver basis.




The first nation of the world which followed the advice of the conference of 1867,
though it did so ignorantly and without the knowledge that it passed the fatal act,
was the United States of America. In February, 1873, she not only deuied silver the
right of coinage ni her mints, but also destroyed its quality as a legal tender, and
thus deprived herself of the utilization in the payment of her debts of the vast body
of silver, which together with gold, constituted tbe money of the world. The result
of the action of the United States was, ihat two or three months later, Germany
demonetized silver, and later on the Latin Union, consisting of France, Belgium,
Switzerland, and Italy, finding that Germany was throwing her silver upon their
mints, limited the coinage of silver, and finally stopped it altogether.

You all recollect the financial depression from 1873 to 1873, which led to a great
agitation of the silver question in this country, and the result was a bill, called the
Bland-Allison bill, passed in 1878, which fully restored silver as a legal tender, and
partially restored the coinage of silver in the mints.

During that year, at the instance of the United States, a conference was held in
France in which all the nations, I think, which had participated in the conference
of 1867, took part. That conference resulted 'in nothing. The nations refused to
take international action upon the subject.

Another conference was held in 1881, with the same results, and it is humiliating
to an American to read over the proceedings of those conferences and find America
in the position of a suppliant begging European nations to help her to restore silver,
which she wasfirstto strike down.

Later on, in 1886, Mr. Edward Atkinson was sent by President Cleveland to Europe
as a commissioner to make inquiry as to the condition of public sentiment there, and
ascertain whether it would be wise to bring about another international conference.
He reported that no sentiment existed in Europe which would warrant our calling a

President Harrison also, in his last annual message, said he had kept a close observation of public sentiment of European natious on the question of bimetallism, and
had not found it to be such as to justify him in pressing au international couference.
Notwithstanding these statements certain gentlemen on the Republican side who
had always oppostd free silver coinage, and certain Democrats who were active in
attacks on the Republican party last year for delay in restoring silver, were urging a
postponement of free silver legislation to await an international conference.
So that we find nothing in the experience of past conferences, nothing in the experience of President Cleveland and his advisers, and nothing in the observation or
judgment of President Harrison and his advisers, to warrant us in the hope ti at an
international conference will accomplish anything.
Now there are many reasons why an international conference will utterly fail to
adjust this question.

We all realize that this is the age of combines, corners, and trusts. The effort of
the wealth-seekers of the world had been to accumulate some product, either natural
or manufactured, which mankind universally needs or desires, and then by limiting
the production to raise the price^and clear a profit. Snch have been the corners,
trusts, and combines relating to sugar, iron, steel, oil, and wheat. All such combines
have been successful, where, the demand remaining the same, production was limited. All have been unsuccessful where nature or man's energy has broken the corner
by increasing the production.
The evidence is indisputable that prior to 1873 the greatest combine, trust, and
corner known to history was organized in Europe. Its purpose was not only to limit

the production of money in the future, but to destroy the efficiency of half the money
of the world by taking from silver its legal tender quality, and thus increase the
value of the other half in the shape of gold, of which, represented either by cash or
by interest-bearing gold obligations, the members of the combine were the owners.
The world was to be deprived not only of its annual crop of money from the silver
mines, but one-half of its store collected through the ages was to be destroyed.

The nations of Europe, the gold-owning nations of the world, were the creditor
nations of the world. Those communities are all built up; their populations are
fixed; there is little need of development in any of those countries, and hence the
accumulations of their citizens were invested in the development of other countries,
in interest-bearing bonds and securities. As the owners of moneys it was to their
interest to make money more valuable, and the only way they could make it more
valuable was by limiting its quantity. The easiest way of limiting its quantity was,
first, to prevent the coinage of silver by the mints, and second, to destroy the legaltender quality of the silver then existing in the world. They succeeded in accomplishing this in this country. They also succeeded in accomplishing it in Germany,
and finally in France, and the other small nations of Europe (which are hardly worth
considering, foT those mentioned are the leading financial nations) followed their

The object, doubtless, was to make money more valuable, and to make gold the
only money and thus limit the quantity. The store of gold is being diminished every
day by the dema1 ds of arts and dentistry. It is estimated that the natural product
of the gold mines is not sufficient to satisfy these demands, and that the store of gold
in the shape of coin is now being invaded for those purposes. On the contrary, silver
was somewhat increasing in quantity.
Now, then, these nations are owners of gold to-day, and they succeeded in the perfection of this gold trust at a time when three of the greatest nations of the world-,
the United States, Germany, and France had just passed through exhausting wars,
and had contracted large war debts. The money owners of the world, therefore, had
received a great advantage by limiting the quantity of money, and thus increasing
the burden of those obligations.

Let us compare the condition of England with that of the United States. We consider ourselves a very wealthy nation, and we are in everything but money. England's wealth consists principally in money. England is a creditor nation. We are
a debtor nation. England has money scattered all over the world, loaned out ou interest-bearing bonds. We have no money whatever loaned to any other country.
We not only utilize the money which we own in this country in the development of
our own country, but we also utilize ail the money that we can borrow from England,
Germany, and France, and to-day we owe those countries many times the entire volume of money that now exists in this country. We have in this country only
Si,500,000,000 in money.

A large portion of our national bonds are owned abroad. Our State, municipal, and
railroad bonds, and the other bonds that are given in our various enterprises, are
also largely owned abroad, and amount to very much more than the volume of money
which at present exists in this country. The fact is, the money that exists in this
country to-day is largely borrowed money. We have about $500,000,000 in gold in
this country, but we owe it abroad, and it can be called for at any time. It may
be said that we owe all this money on bonds which have many j ears to run before
maturing, but you must recollect that whenever any emergency occurs in Europe
which tightens the money market, either England, Germany, or France, can immediately call upon this country for her money, by selling those bonds, and we are obliged
to absorb them, for unless our moneyed men in this country, our men of property,
sustain the bonds of the enterprises in which they are interested, there would be'a
general destruction of values.
Mr. BARTINE. YOU are referring to bonds of private enterprises.
Mr, NEWLANDS. Yes, sir; bonds of private enterprises, and United States bonds
also. They can market the United States bonds here at any time aud can take away
the money from the country. We hid an illustration of that one vear sf"2338





The English had invested quite heavily in A r g e n t i n e securities, and those investments had reduced England's bank reserves. The English were also loaning out
their money very largely to other countries. In this condition of things Russia made
a sudden call upon the Barings lor £5,000,000, and precipitated a panic. England
was not able to replenish her bank reserves quickly enough by calling on her debtors
for money, so she had to borrow money from France to tide over the emergency, but
she soon commenced to realize upon other securities in this country. Seventy-five
million dollars of American securities were sold by England in America within six
months, and $75,000,000 of gold was withdrawn from this country. Now, you all
recollect the effect of that upon the enterprises of this country. Remember before
that cloud appeared in the English sky, there was no trouble whatever in the United
States. We were in a prosperous condition, our crops were good, business was on a
good basis, and our e n t e r p r i s e s were being pursued with energy, everthing was prosperous, but as soon as this scarcity of money appeared in England a wave of contraction spread across our ^ptire continent, and the result was a panic. It would
have resulted in universal bankruptcy had England been compelled to call for more
money—more than $75,000,000.

The banks of New York were practically in suspension. They were compelled to
issue a kind of emergency money, called clearing-house certificates, which were simply certificates by clearing-houses that they held so much valuable property of these
banks in the shape of negotiable notes, etc., which certificate passed the banks by
common consent as money because the common danger compelled their acceptance.
In a discussion which I had with Mr. Horace White, of the New York Evening Post,
*who is a decided monometalist, he told me there were more bankruptcies last year in
the United States than there were in any year since 1873.

No one can imagine the general destruction of values that would have taken place,
had England called on us for more, and yet our §500,000,000 in gold can be called for
whenever a tightness in Europe occurs. Every business man knows the perils of the
man who conducts large enterprises with money borrowed on call.
That is the position of the United States with reference to these creditor nations,
notably England and Germany, and to a less degree, France.

The reason why international action is impossible is apparent upon reflection. No
international agreement is contemplated which does not embrace one or all of the
principal commercial nations of Europe—England, France, or GermEtny.
Why should they join us ? Their positions are entirely different. With reference to
all other nations they are creditor nations, and the United States is a debtor nation.
They are interested in having money dear and products cheap. We rely upon good
prices for our products to pay our debts. Onr interests are diametrically opposite.
They have a call on us for all the money we have in our country. They have gained
an advantage for their money by our legislation, which, in connection with the legislation of other countries, has largely enhanced the value of gold.
Was it ever known that a debtor, by a mere conference with his creditor, could induce him to forego his advantage ? The only way a debtor can bring his creditor to
terms is by going into bankruptcy. Are we prepared to go into baukruptcy and to
repudiate our obligations in order to brinir about a successful conference with our
creditors ?
What reason can we give to England for urging her to join ns in restoring silver!
That it will take from gold its enhanced value. Her answer will be, We own more
gold than any nation in the world. We wish to maintain its enhanced value. The
last declaration of England was the utterance of her royal commission which inquired into the cause of the fall of prices, and which found as a fact that that cause
was the demonetization of silver. They say in their report:
" It must be remembered that this country is largely a creditor country of debts
payable in gold, and any change which involves a rise in the price of commodities
generally—that is to say, a diminution of the purchasing power of gold—would be
"to her disadvantage.7'
England knows what is to the interest of a creditor nation even though the United
States does not know what is to the interest of a debtor nation.


But we were told that England was upon the verge of a panic one year ago because
of an insufficiency of money. The answer is that she bad loaned her money toother
countries. She had her investments in the shape «f bonds and securities all over th©
world, in Africa, South America, India, China, and particularly the United States.'
She had loaned out to advantage all this money, and when the stringency came she
could not quickly call it in and was obliged to borrow from France. She, however,
relieved herself of this temporary loan and of allfinancialdifficulty by calling upon
us for a part of what we owed ber. Seventy-tive millions of gold went from this
country in response to her call, and we were close upon the shoals of bankruptcy.
As a creditor nation England can make her local money volume what she pleases by
calling upon her debtors. The United States is best able to respond, and will always
be called upon in an emergency.
We staud in the position, with reference to England and Germany, of a debtor
owing money on call. The entire six hundred millions of gold in this country are
really owing to England and Germany, and can at any time be taken away by their
sale of American securities. No one could measure the panic that would follow. Our
financial system puts us at the mercy of every European storm. We do not have
England's advantage. England is built up and populated. It is afinishedcountry.
The accumulations of her people are invested in other lands. We employ not only
all the money we have in developing our country but all we can borrow, and when a
stringency comes the only relief we have is to borrow more, and that is difficult,
sometimes impossible. Yet our President in his message said that he knew no more
effectual way of promoting a favorable sentiment to silver in Europe than by accumulating gold here ; that a scarcity of gold in the European reserves would be the
most persuasive argument for the use of silver there.
In other words, we are to distress Europe by borrowing more gold of her, and
borrowing it substantially on call responsive to any demand she may make in an
emergency. One is at a loss to understand how a debtor can get a creditor under hia
control by borrowing more money of him. It should be remembered always that
the bank reserves of England were low simply because she loaned her money out;
that this money could be recalled at almost any time, and the volume indefinitely
increased. Such also was the case with Germany. Germany is a creditor nation ana
and is now the commercial rival of England in South America, Asia, and Africa.
She owns a large amount of American sureties payable in gold.
Why should she join in legislation which would diminish the value of her gold and
increase the value of our products? She at any time could increase her money volume by calling upon her debtors.

France also is a creditor nation, though in a less degree. What argument can we
address to her—the scarcity of her money volume 1 No. She had $5? per capita in
circulation, while we had only $24. She has maintained this large money volume
for years, and it has been the principal cause of her stability. What necessity was
there for her to throw her mints open to the free coinage of silver? Can she not
rightfully say that for forty years she, in conjunction with three inferior European
states, sustained the silvt-r of the world, and that we, with 60,000,000 of population,
with a vast amount of property, great resources, and unexplored country requiring
development, could easily afford to stand where she did for so long a time until our
per capita circulation should be made at least equal to hers.

We find, then, that we are the only one of these great nations which is interested
in increasing the money volume. We are the only debtor nation ; we are the only
nation that is suffering from a permanent scarcity of money, which can only be relieved by borrowing. The question is whether we shall continue to borrow with all
the harassing dangers which the borrower on call is subject to, or whether we shall
avail ourselves of the beneficence of nature and make our money out of the acknowledged money metal of the world—a money metal which is now used by nine-tenths
of the people of the world as against the one-tenth which constitutes the population
of monometallic gold countries.

Mr. Leech, in his statistics, states that the whole world's product of silver last year
was $166,000,000, that its coinage value was $166,000,000. The number of ounces
produced was about 134,000,000. Now, if we restore free coinage in this country, how



much of the world's auuual product shall we expect to coin ? How much of this
money will betaken by other countries? Mr. Leech's statistics, I think, show, that
of the world's population of over 1,200,000,000, bimetallic countries have 244,000,000,
the gold-standard countries 160,000,000, and the silver-standard countries £31,000,000,
showing that very nearly nine-tenths of that population either use silver exclusively,
or use it in connection with gold.
Now, it is true, silver is used largely by natious which have not reached a very
high degree of civilization. They have not, as yet, learned the importance of the
function of money ; that it is as essential to civilization as language is. Language
conveys ideas ; money couveys values; but they have not learned to use money, as
we have, and they may not absorb, and will not absorb it, as much as a country like
the United States, which knows what an important factor in the development of the
enterprises and advancement of civilization money is.
I assume out of this w.-rM's product of $16(5,000,000 the arts call for $-<25,000, 000;
that India and China call for $25,000,000, which makes $50,000,000, and that would
leave $116,000,000 to be absorbed by the United States, assuming that no other nations but India and China absorb any.

Can we absorb $116,000,000 annually without inflation? First, what is necessary
in order to maintain our per capita ? We all kuow that the national-bank notes are
being retired at the rate of about $30,000,000 per annum, and unless some other
money takes the place of that circulation within six years, if the retirement goes on
at the present ratio, $180,000,000 of money will have disappeared from the country.
We can, therefore, use $30,000,000 of money in taking the place of these nationalbank notes. In addition to that, our population is increasing at the rate of about
2,500,000 per annum. In order to maintain our present per capita of $24 per head,
we shall have to absorb about $60,000,000. That would make $90,000,000 of the
$116,000,000, leaving about $26,000,000, which could go to the increasing of our per
capita at the rate of about 40 cents per aunum. Thus in six years, the period covered by the retirement of the national-bank notes, we would have our per capita
ouly increased by absorbing all the world's product of silver, except that absorbed
by the arts, and India and China, to only $26.40 per head.

But it is said that we shall not only be called upon to absorb the entire product of
the mines, but we shall also be compelled to absorb the bullion which is produced
from the silver coin of Europe, which, it is said, will be thrown upon the-market,
and displace our gold. With reference to that, I have simply to say, that it is impossible to believe that the nations of Europe will dispose of their silver, which now
commands $1.33 per ounce at a loss of from 4 to 5 per cent besides the cost of double
shipment across the sea. Silver is firmly intrenched in their circulation, and it would
be almost impossible to withdraw it. It can ouly be withdrawn at a loss; but if you
are called upon to legislate with reference to these fears, it would be very easy to
provide that no bullion shall be admitted to our mints which is the product of the
melting pot.

By pursuing this course we could compel Europe to continue IHT present limited
bimetallism ami at the same time avail ourselves of the annual product of all the
mines of the world to swell our money volume and secure our financial independence
from Europe.
With reference to the practicability of this I have ouly to say, that in a conversation with Secretary Windom, I called attention to a portion of one of his reports in
which he declares:


"There is in fa^fc no known accumulation of silver bullion anywhere in the world.
Germany long since disposed of her stock of melted silver coins, partly by sale,
partly by recoinage into her own new subsidiary coins, and partly by use in coiniug
for Egypt. Only recently it became necessary to purchase silver for the Egyptian
coinage executed at the mint at Berlin.
" I t is plain, then, that there is no danger that the silver product of past years
will be poured into our mints, unless new steps be taken for demonetization, and
for this improbable contingency ample safeguards can be provided.
"Nor need there be any serious apprehension that any considerable part of the
stock of silver coin of Europe would be shipped to trie United States for deposit for
Treasury notes.

"There is much less reason for shipping coin to this country than bullion, for while
the leading nations of Europe have discontinued the coinage of full legal-tender silver pieces, they have provided by law for maintaining their existing stock of silver
coins at par."
I asked him what he meant by that term "ample safeguards.7' He said that it
would be easy to prevent bullion which is the product of coins from coming into
our mints. I asked him how he could distinguish between the two. He said that
that would be very easy; that the Treasury Department could adopt regulations
which would trace"silver bullion from the mines themselves to the mint, by a perfect chain of evidence, thus enabling the mints to reject all silver bullion derived
from the coins which Europe might gather together to throw upon and embarrass us.
If you will only think for a moment you will recall the various Treasury regulations with reference to customs, etc., which are no iuore difficult of enforcement than
would be the regulations which Secretary Windoin suggested. I say, then, there is
no danger that the large store of European silver which is now in the shape of coin
will be precipitated upon us, because the nations who have that silver can not spare
it from daily use, and could only throw it upon us at a heavy loss; and, second, because it will be perfectly easy to compel them to retain that silver by opening our
mints only to the bullion that comes fresh from the mines of the world, and denying
fereign coins or bullion the product of foreign coins the privileges of our mints by
means of the Treasury regulations suggested by Mr. Windom.
Mr. BARTINE. Before you leave that subject,' Mr. Newlands, I wish you would explain to us how we pay for this silver. You say we absorb silver from other countries. How are we to pay for it?
Mr. NEWLANDS. Well, we would simply give the privilege to every owner of silver
bullion which is the product of the mines ot the world to have it tnrned into coin
of a certain weight and fineness. If he wishes to have the silver coined into silver
dollars, or to receive treasury notes for it, he has his choice. Whether these owners
of silver bullion in foreign countries, in Australia, South America, and elsewhere
will avail themselves of the privilege, remains to be seen.
Mr. BARTINE. You do not suppose that these countries will avail themselves of
this privilege ?
Mr. NEWLANDS. I do not think so to any great extent.
Mr. BARTINE. Then, there would not be any danger ofaqt*
Mr. NEWLANDS. NO, sir. My figures are addressed to the question as to whether
free silver coinage will attract to this country more silver than we can safely absorb without inflation; and assuming the worst possible ease, viz, that we shall be
compelled to take all the world's anuual product from the mines except that which
goes into the arts, besides what is taken by China and India, I say that it will
barely maintain our present per capita. I do not mean to say, however, that we shall
be able to get all this silver. I don't think we shall get under free coinage as much
as we ought in order to maintain a proper tnouey volume.
Mr. T A Y L O R . YOU would not be in favor of buying it with gold ?
M r . NEWLANDS. O h , n o .
The CHAIRMAN. Iwill ask

you, Mr. Newlands, if we do not pay for all onr imports
in products and in labor, and if this silver should come here, if it would not be exchanged for our corn, wheat, and cotton f Do we not really pay for it in that way?
M r . NEWLANDS. Y e s , sir.
Mr. T A Y L O R . Why didn't we pay for those
ds that they sent back last year?
M r . NEWLANDS. W e d i d .
Mr. TAYLOR. YOU say we paid for them in gold ?
M r . NEWLANDS. Y e s ; w e d i d .
Mr. T A Y L O R . Well, we did not pay for them in that way.
Mr. BLAND. DO you not remember it takes labor to buy gold as well as silver ?
M r . NEWLANDS. Y e s , sir.
Mr. T A Y L O R . Your idea is, if we should pass a free-coinage measure, that it would

bring the two metals, gold and silver, together.
M r . NEWLANDS. Y e s , s i r .

Mr. TAYLOR. That they would be of equal value ?
Mr. NEWLANDS. Yes; in a certain ratio.
Mr. T A Y L O R . Would it raise the price of silver?
Mr. NEWLANDS. The silver that is now in Europe in the shape of coin? Its value
to-day is fr .111 $1/29 to $1.33 an ounce, and the only silver that is selling for less than
that is the annual product of the mines.
Mr. T A Y L O R . Would it increase the value of silver or lessen the price of the value
of gold—one or the other ?
Mr. N E W L A N D S . It would increase the bullion value of silver to $ 1 . 2 9 an ounce.
Mr. T A Y L O R . In gold ?
Mr. N E W L A N D S , Yes ; it would have the effect of increasing the value of silver and
of diminishing to some extent the purchasing power of gold.



Mr. TAYLOR. It would raise the price of silver from 9 1 cents to $1.29, in round
numbers ?
Mr. NEWLANDS. Yes; to $1.29.
Mr. TAYLOR. How much gold have we in the Treasury that can be used for purchasing anything, that is not covered by certificates ?
Mr. NEWLANDS. I think we have only about $100,000,000, or $120,000,000.
Mr. TAYLOR, How much silver. What I* it estimated that the world's supply o f v
silver is t
Mr. NEWLANDS. The world's supply of silver is estimated, according to Mr. Leech,
to be about $3,800,000,000. The world's supply of gold is about tho same.
Mr. TAYLOR. Then you think by the passage of a free-coinage act that that act in
itself would raise the value of this 4,000,000,000, substantially four thousand million
dollars, in round numbers, to 38 cents f
Mr. NEWLANDS. I think as to that $3,800,000,000 of silver that is in the shape of
coin in the world, that its value to-day is $1/29—from $1.29 to $1.33—that is its exchangeable value for products, and that the ouly silver in the world to-day that is
worth any less is about $3,000,000 of surplus in the New York market.
Mr. T A Y L O R . The world's balance is worth that?
Mr. NEWLANDS. Its purchasing power is from $1.29 to $1.33 now.
Mr. WILLIAMS, of Massachusetts. That is a very different proposition from the one
that you first laid down—that silver is sold, all except the annual product, at $1.33
an ounce. That is the proposition that you stated here.
Mr. NEWLANDS. I mean to say that ali the silver in the world, with the exception
of this annual product, or this surplus that now exists in the shape of bullion, is exchangeable for other products at the rate of from $1.29 to $1.33 an ounce.
Mr. WILLIAMS, of Massachusetts. Is that true outside of any country where the
silver is held ?
Mr. NEWLANDS. Well, really, I can not say as to that; I do not know,
Mr. WILLIAMS, of Massachusetts. Can you tell me a country where silver will sell
to-day above the market price as bullion, except in a particular country where that
silver is in the shape of coin f
Mr. NEWLANDS. Well, I imagine that in England to-day a banker wonld not hesitate to take SI,000 of our silver certificates or United States Treasury notes at a very
slight discount.
Mr. WILLIAMS, of Massachusetts. That is not silver. I am talking about- silver,
and that is what you are talking about. Now, stick to silver. Tell me a single
Mr. NEWLANDS. But silver certificates represent silver.
Mr. WILLIAMS, of Massachusetts. I am talking about silver; not about silver certificates in any form, or bank notes, or Treasury notes, or anything of
kind. I
am talking about silver.
Mr. NEWLANDS. Well, what do you mean ? Silver bullion or silver coin T
Mr. WILLIAMS, of Massachusetts. I am asking you what you mean when you refer
to silver. What did you refer to ? You made a statement here that silver all over
the world sells for $1.33, except the annual product of the mines.
Mr. NEWLANDS. I do not think I made exactly that statement.
Mr. WILLIAMS, of Massachusetts. I think if you will look at the notes of the stenographer you will fmil that you used substantially those words.
(The stenographer read the*words referred to.)
Mr, WILLIAMS, of Massachusetts. You said that silver was selling in the world for
$J.33 an ounce. There is no occasion for any misunderstanding.
Mr. NEWLANDS. I said iu silver coin.
Mr. WILLIAMS, of Massachusetts. You said silver was selling for that.
Mr. NEWLANDS. What <lo YON refer to—silver bullion f
Mr; WILLIAMS, of Massachusetts. I refer to silver. I do not care what form it is
in. You said it was selling for $1.33 an ounce.
Mr. NEWLANDS. I think my statement is a clear one.
Mr. WILLIAMS, of Massachusetts. Weil, then, you do not wish to change it.
Mr. NEWLANDS. No ; it is all right.
Mr. WILLIAMS, of Massachusetts. All right.
Mr. TAYLOR. I understand your statement to be that of the silver in the world
none of it is worth but $1.29 an ounce, except two or three million ounces ever here
in New York. What do you mean by that statement f
Mr. NEWLANDS. I mean to say that the silver in the world is either in the shape
of coin or of bullion ; that that portion of it which is in the shape of coin is worth
to-day, and is exchangeable in value for, from $1.29 to $1.33 an ounce ; that that portion of it which is in bullion, and which all authorities agree, I believe, amounts to
a very small sum, is valued at what is called the market rate I believe, which I think
cents now.
Mr. W I L L I A M S , of Massachusetts. I want to follow up that point. Is that true in

India ? In other words, can you exchange for $1.33 in gold an ounce in silver in
Mr. NEWLANDS. Oh, there you are getting hack to the bullion question.
Mr. WILLIAMS, of Massachusetts. No, sir; I am asking you about silver in any form.
I do not care what form it is in.
Mr. NEWLANDS. Wha 11 mean to say is this, the silver rupee of India has the same
purchasing power that it always had.
Mr. WILLIAMS, of Massachusetts. Has it any more than the purchasing power of
bullion. Can you get 1 cent more for a rupee than you can get for the bullion that
is in it in London, save of course the question of transportation.
Mr. NEWLANDS. Will you r>lease repeat the question ?
Mr. WILLIAMS, of Massachusetts. Please read the question, Sir. Stenographer.
(The stenographer read the question.)
Mr. NEWLANDS. 'Well, my understanding is, that in India the silver rupee will
buy as much of the products of that country as it ever would, and that indicates that
there has been no change in its value at all, but that gold has appreciated.
Mr. WILLIAMS, of Massachusetts. You mean to say that there is no depreciation in
the value of silver as bullion.
Mr. NEWLANDS. Yes, sir ; that is what I understand to be the case in India.
Mr. WILLIAMS, of Massachusetts. You have not heard the universal, the almost universal complaint in India of the decline in silver, have you?
Mr. NEWLANDS. Yes, sir; I have heard of complaints from certain classes there.
Mr. WILLIAMS, of Massachusetts. This is true, is it not—and is universally claimed
by gentlemen who are interested in the free coinage of silver—that that which India
owes the rest of the world costs them more to pay to-day than it ever did before.
Mr. NEWLANDS. When she makes tho exchange into gold.
Mr. WILLIAMS, of Massachusetts. She has to pay her debts in gold, practically,
does she not f
M r . NEWLANDS. Y e s , s i r .

Mr. WILLIAMS, of Massachusetts. So that to that extent you certainly will admit
that the silver standard has injured her.
Mr. NEWLANDS. In the relations existing between the Indian government and the
British Government, the Indian government has a right'to complain of the demonetization of silver, because, when she pays England in gold she has to turn her silver
into bullion and sell it at the gold price, and thereby loses in the transaction. I do
not think she has any reason to complain of the silver standard. What she has a
right to complain of is the demonetization of silver, which has injured its bullion
Mr. WILLIAMS, of Massachusetts. But she has to turn her rupees into bullion in
order to pay England, and to sell that bullion at a gold price.
Mr. NEWLANDS. Yes, sir; sell that bullion at a gold price.
Mr. WILLIAMS, of Massachusetts. I will ask you this question: When India pays
England, you say she turns her rupees into bullion ?
M r . NEWLANDS. Y e s .
Mr. WILLIAMS, of Massachusetts. What is that for f
Mr. NEWLANDS. Because England demands gold.
Mr. WILLIAMS, of Massachusetts. Can she not buy

gold with rupees, just as well
as she can with bullion f
Mr. NEWLANDS. I presume she can with rupees at their bullion value.
Mr. WILLIAMS, of Massachusetts. Does India send any silver to London with which
to pay her debts.
Mr. NEWLANDS. Really, I can not say ; I presume she does. If she does she sends
it at its gold value. But I imagine she does not send any rupees.
Mr. WILLIAMS, of Massachusetts. Now, to your mind, if in order to pay her debts
she has to pay more silver than she ever did before, that is no indication that the purchasing power of India's silver has decreased.
Mr. NEWLANDS. Yes; I think that the power of silver bullion to purchase gold bullion has decreased.
Mr. WILLIAMS, of Massachusetts. Now, that is not an answer to my question.
That is no indication to you that the purchasing power of Indian silver, rupees or
bullion, has decreased.
Mr. WILLIAMS, of Illinois. In India, yon mean ?
Mr. WILLIAMS, of Massachusetts. Anywhere; I do not care where.
Mr. NEWLANDS. Well, I mean to say that in India
Mr. WILLIAMS, of Massachusetts. Can you answer the question, Mr. Newlands ?
Of course, I am willing that you should answer it in your own way, but it is a simple question.
Mr. NEWLANDS. Well, I think your question is put in a way almost to mislead—
not intentionally, possibly—and that the plain answer " yes" or " no" can not be
made to it.



Mr. WILLIAMS, of Massachusetts. Well, answer it in your own way then.
Mr. NEWLANDS. I mean to say, that in the domestic commerce of India, which of
course covers the great bulk of the transaction, silver has its old purchasing power,
and that the use of silver there has been a great blessing instead of a great curse,
because otherwise there would have been a great scarcity of money, which would have
brought about universal distress.
The CHAIRMAN. In this connection I desire to ask you a question: Is it not a fact
which is thoroughly proven by statistics, that not only in Europe, bnt the world over,
silver bullion will purchase as much of the commodities of life now, and more
than it would in 1873, more than it has for the last seven years.
Mr. NKWLANDS. The statisticians claim that, and I think they prove it. I am not
a statistician myself, bnt I have read strong tables to that effect.
The CHAIRMAN. Well, is it not a fact that the British Royal Commission examining
into that subject has found that there has been no depreciation in the purchasing
power of silver ?
Mr. NEWLANDS. The appreciation has been in the value of gold.
The CHAIRMAN. Not a depreciation of silver?
Mr. NEWLANDS. Not to the same extent as the appreciation in gold.
The CHAIRMAN. Did tliey not claim that there has been a slight appreciation in
silver by the Brit'sh Royal Commission ?
Mr. NEWLANDS. I do not recollect that, Mr. Chairman.
The CHAIRMAN. Well, I recollect it.
Mr. WILLIAMS, of Illinois. What do you meau when you state that India had a right
to complain of the demonetization of silver ?
Mr. NEWLANDS. Because it compels her to pay her bullion balances in gold, and in
order to, do that she has to part with her silver at a discount.
Mr. WILLIAMS, of Illinois, Then in your view it is only in an international relation
that she has been injured ?
Mr. NEWLANDS. In the domestic relation she has been benefited. Let me correct
it; it is only in an international relation that she has been hurt by the demonetisation of silver. The existence of silver as money in that country has been a great
blessing to her.
The CHAIRMAN. In that connection allow me to ask you a question : Is it not true,
and is so alleged by political economists, that the fact that India may lose on exchange
of her silver for British gold, that instead of exporting her money she exports her
wheat, corn, and other commodities, which exports come into competition with our
own ?
Mr. NEWLANDS. It increases their exports largely. Those exports would be diminished probably if silver was restored to a parity with gold.
Mr. BARTINE. Mr. Williams's question is calculated to leave, I think, this matter in
just a little obscurity. Do you think India has suffered internationally in her dealing with silver-using countries in consequence of the change; or when you say internationally, do you mean really to state only the debtor aud creditor relation existing
between the Indian and the English government*?
Mr. NEWLANDS. When I speak of internationally, I refer to the relation of debtor
and creditor. I do not know exactly what the relation is between silver-using countries.
Mr. BARTINE. It could not make any difference, could it ? The fall is relatively to
gold ?
Mr. NEWLANDS. I should think not,
Mr. BARTINE. As I understand you your position is this : that the Indian rupee will
buy as much of cotton, or rice, or any commodity of Iudia as it ever would; and the
fall is only relatively to gold ?
M r . NEWLANDS. O h , y e s .
Mr. WILLIAMS, of Illinois

: If India should suspend the coinage of the rupee would
it make it come easier to pav this debt to England, or would it make it more difficult I
Mr. NEWLANDS. It would make it more difficult, because it would take away to
that extent the world's use of silver, and thereby further diminish the value of silver
and increase the value of gold, and hence in settling her balances with England she
would have to buy gold at a higher rate.
Mr. WILLIAMS, of Massachusetts. Then the result of your experience on this question is, that silver is not affected much in a specific country, where silver is the basis;
but that it is a depreciated currency with reference to international trade.
Mr. NEWLANDS. Well, my answer is, that the bullion value of that silver in terms
of gold of course is reduced by its demonetization; and that, so far as the silver
using country has the relations of a debtor to a gold-using country, it is compelled
to part with its silver at a discount in order to pay its gold obligations.
Mr. WILLIAMS, of Massachusetts. Then, Mr. Newlands, is not this the logical result, that India has, in your judgment, continued to use silver in its domestic busi-

ness without loss, whereas the moment it goes outside of its own boundaries to purchase anything of a foreign country its rupees are worth no more than that amount
of bullion ?
Mr. NEWLANDS. That is true.
Mr. WILLIAMS, of Massachusetts. If that is true, therefore, the rupee is no more
useful and no more valuable in an international business than the same amount of
Mr. NEWLANDS. Yes; that is true. But you must recollect that this international
balance amounts to very little as compared with domestic transactions.
Mr. WILLIAMS, of Illinois. If you were a resident of England and had 100,000,000
of our standard silver dollars, that are worth here in the United States as much as
gold dollars, would you be willing to sell them there in England at a very large discount ?
Mr. NEWLANDS. NO; I would not.
Mr. WILLIAMS, of Illinois. Not if you could get a dollar for them in the United
States ?
Mr. NEWLANDS. NO ; I would not. If I should turn them into bullion, I would get
less there.
Mr. WILLIAMS, of Illinois. If you should turn them into bullion ?
Mr. NEWLANDS. But as silver coins they would be worth more than the bullion
Mr. WILLIAMS, of Massachusetts. Mr. Newlands, you have referred to the fact that
certain members of the Republican party—I think you said in the Senate
Mr. NEWLANDS. No, L did not speak of the Senate.
Mr. WILLIAMS, of Massachusetts. Well, in the House. You say that certain members of the Republican party and certain members of the Democratic party have been
tending toward the idea of the plan of having an international conference.
M r . NEWLANDS. Y e s , s i r .

Mr. WILLIAMS, of Massachusetts. That is something rather new. You refer to that
as something rather new ?
Mr. NEWLANDS. Well, it is an old idea, but it is a new suggestion from Democrats,
I think.
Mr. WILLIAMS, of Massachusetts. Well, did you not say that Republicans who had
formerly been favorable to silver legislation were now rather hostile to it,
MI\,NEWLANDS. N O ; Democrats who had been favorable
Mr. WILLIAMS, of Massachusetts. I understood you to say Republicans. How about
Senator Teller? Is it not a fact that he introduced and" advocated and now advocates a plan for an international conference ?
Mr. NEWLANDS. I understand that he has introduced a measure with that in view,
but I do not understand that lie has abandoned at all his advocacy of the immediate
resumption of silver coinage by this country.
Mr. WILLIAMS, of Massachusetts. Has he not distinctly stated that the reason he
favors an international conference at the present time is that it is certain there can
be no free coinage law passed.
Mr. NEWLANDS. I really do not know whether he said that or not.
Mr. WILLIAMS, of Massachusetts. I make the statement that he has so stated.
Mr. NEWLANDS. There is a general feeling that no free coinage bill will pass at
this sessiou and become a law ; that while it may pass Congress, it would be vetoed
by the President.
Mr. WILLIAMS, of Massachusetts. 1 take it, you may or would agree that the true
solution of this whole question would be au international agreement; that is, including some of the leading nations of the world, who would agree to fix a ratio between gold and silver aud maintain it. That would be economically the true solution, would it not ?
Mr. NEWLANDS. It would be a satisfactory solution.
Mr. WILLIAMS, of Massachusetts. Would it not be the best solution beyond any
question whatever?
Mr. NEWLANDS. Well, I am not prepared to say that, fori am pretty confident that
the adoption of free coinage by this country will restore silver to its old value.
Mr. WILLIAMS, of Massachusetts. If you are right in that judgment, is it not much
more certain that that end will be accomplished if the bimetallic countries of Europe
join in accomplishing the same result ?
Mr. NEWLANDS. Well, what countries in Europe do you call bimetallic ?
Mr. W I L L I A M S , of Massachusetts. Well, sir, if you wish them stated I would include
France, Belgium, Holland, Switzerland, Italy, and Greece.
Mr. WILLIAMS, of Illinois. You would not iuclude England in that conference?
Mr. WILLIAMS, of Massachusetts. Not in that conference: but that was not the
question. He asked me what I would include as bimetallic countries. That was the
question, was it not, Mr. Newlands?



Mr. NEWLANDS. Yes, sir. My understanding is that .Belgium and Holland are both
on a monometallic gold standard.
Mr. WILLIAMS, of Massachusetts. They are using silver just as France is, are they
not ? They are using a large amount of legal tender silver in conjunction with gold,
just as France is doing to-day.
Mr. NEWLANDS. In that sense they are.
Mr. WILLIAMS, of Massachusetts. Well, it is only in that sense that France is a
bimetallic nation, as I understand it?
M r . NEWLANDS. Y e s , s i r .

Mr. WILLIAMS, of Massachusetts. Do you understand me.
Mr. NEWLANDS. Yes ; I understand you.
Mr. WILLIAMS, of Massachusetts. Have you any question, but that the problem
would be the much easier if those countries would join the United States in fixing
the ratios.
Mr. NEWLANDS. Oh, I think it would create more public confidence. It would
create no more confidence in my mind, for I am just as confident as I can be that the
United States can accomplish that result as easily as it can in conjunction with
those nations.
Mr. WILLIAMS, of Massachusetts. You are aware that economists and bankers and
others do not agree with you on that ?
Mr. NEWLANDS. It would increase the general confidence.
Mr. WILLIAMS, of Massachusetts. And you will also admit, I presume, that the element of confidence in the result is a very important one ?
Mr. NEWLANDS. Undoubtedly.
MR. WLLLIAMS, of Massachusetts. Now, then, if you could secure those other nations, together with the United States, the probabilities of success would be very
much increased, would they not?


Mr. WILLIAMS, of Massachusetts. I want now to ask you this question: whether
the monetary system in the world has ever offered a parallel to the present monetary conditions ? Do you understand that part of the question ?
Mr. NEWLANDS. I think not. I understand by that, that you refer to the destruction of the parity between gold and silver by the demonetization of silver.
Mr. WILLIAMS, of Massachusetts. Precisely. I do not think there has ever been
such a monetary revolution in the world as there has been since 1873, and never
in the history of the world has there been a time wheu the mints of the leading commercial nations of the world were closed to the coinage of silver.

Mr. WILLIAMS, of Massachusetts. Now, therefore, you can draw no histori al or
analogical lesson from the past. The problem, in other words, is a new one.
Mr. NEWLANDS. Yes; it is a new one. I think, however, that we could safely
assume that as silver has been the acknowledged money of the world
The CHAIRMAN. Yon do not mean to say that from the past you can not reckon as
to the future ? Is it not a fact that France has opened her mints for over forty years,
and as a historical precedent kept the two metals together at 15£ to 1?
Mr. NEWLANDS. That is so; but we have no precedent in this country. We have
had none whatever since silver was demonetized.
The CHAIRMAN. We are speaking of the light of the history of the past. Mr. Williams says we have nothing to go by. Is not the action of France a very good
example f
Mr. WILLIAMS, of Massachusetts. What is that question ?
The CHAIRMAN. I say that you spoke of the light of the history of the past as
giving no guide for our information. Now, I desire to know whether France, that
has kept the ratio of 15£ to 1 for nearly seventy years, and also kept the two metals
at par, has not some bearing upon the situation ?
Mr. NEWLANDS. I think so.
Mr. TAYLOR. I want to ask you one question which was drawn out by Mr. Williams. I understood you to say that our coined silver is worth more in England than
bullion ?
Mr. NEWLANDS. Yes, because they know there that a coined silver dollar will buy
as much here as a gold dollar.
Mr. TAYLOR. It would be redeemed, according to your theory, in silver, would it
Mr. TAYLOR. Wh would it be worth any more ? Do you not know, Mr. Newlands,
that all gold coin and all silver coin are taken in England by weight and their value
is computed the same as bullion ?
Mr. NEWLANDS. I do not know whether that is the case or not.
Mr. T A Y L O R . Certainly it is. It is taken no other way.
Mr. W I L L I A M S , of Illinois. There is no money sold at that.

Mr. TAYLOB. Every gold dollar that is shipped from the other side is weighed and
Mr. WILLIAMS, of Illinois. Let me ask you a question. Suppose you were in England with $100,000 United States standard silver dollars and wanted to sell them,
what discount would you sell them at in England? Would you discount them 5
cents on the dollar ?
Mr. TAYLOK. I could sell them on a gold basis if this couutry was paying gold for
Mr. BLAND. Gentlemen, it is time for the House to meet. The committee must
The committee adjourned at 12 o'clock m.
He said:
Mr. Chairman and gentlemen of the committee: Being well aware of the value of
your time, aud disposed as I am to trench upon your patience as little as possible, I
shall confine what I have to say at this time to a single aspect of the question. It is
urged by some, who I fear are not friendly to the free coinage of silver, that the United
States should forbear action upon that question until report can be had from another
international conference which shall be called at some future time to talk over again,
as in the past, the irreconcilable differences of interest and of opinion which sepa*
rate nation from nation and make them competitors rather than comrades in the
journey of life.
That this purpose is not wise ; that it is a step backward and not forward; that it
is fraught with the dangers of delay, and is hopeless of success, I firmly believe, and
shall undertake to show by evidence that cannot be opposed. Did I propose to argue
for the free coinage of silver simply, it could be very brietly done, so briefly, indeed,
that it will hardly detain you to present here and now all that is essential to the argument.
In modern society the production of wealth, the existence of money, and the extension of credit are ever present and controlling factors.
All just considerations require that these three factors maintain a due proportion
to each other.
If wealth production outstrip money production, the money of the rich obtains increased power over the products of labor If credit extends faster than the supply
of money will warrant, it becomes insecure—tends toward panic and destruction.
Production naturally increases with population and invention ; and credit is forced
to supply all lack of money. The sole source of natural increase of money is the product of the mint, and is limited to gold and silver. The free use of these two metals
never yet increased money out of proportion to production of wealth ; and they are
powerless to do so to-day.
The most extravagant estimate of the product of the world's mines will not ap*
pear a due relative proportion of the most conservative estimate of the product of
the world's labor.
Therefore if the free mintage of the money metals is insufficient to do justice to
labor, and to maintain the proper balance between wealth production, money, and
credit ex ten-ion, restricted coinage becomes a crime. I challenge the members of this
committee to show wherein the premises are opposed to fact, the reasoning unsound,
or the conclusion other than unavoidable.
But men's minds are not now open to argument upon the general question. Their
opinions are crystallized by prejudice and interest; and where reason has not already
entered at the open door she is hopeless of admission.
Now let me return to the object which has brought me here, and affirm it one
worthy of your attention.
Why should the United States seek an international agreement as to how she shall
make use of her own? Has she not already twice sought counsel from her distant
rivals across the sea; and has she not been already twice told that the European
nations will look out for their own interests while she is free to tniud her oivn business and guard her own interests as best she may ?
If a reasonable request be made ouce and refused, it carries no reproach ; if it be
made again and refused, it cuts the thin skin of self-respect to the quick ; but will
someone tell me how the same request cau be made a third time and then be kept
out of it the tone that always distinguishes the subdued whine of the beggar ? ^
I can easily understand how the Wall street banker, who lives upon the commissions paid to him by European investors, can doff the hat and crook the knee to the
source of his profit; but I can not understand how a representative of the American
people, chosen to uphold the dignity and honor of this great nation in its Congress,
can propose, much less consent to an act so well calculated to bring it into contempt.



If the nations of Europe ever come to feel the need of an international agreement
upon the subject of coinage or any other, we are justified in the belief that they will
also be able to remember our post-office address.
We are told that if we remonetize silver it svill cause the abandonment of the gold
standard and degrade us as a people to the level of the effete nations of the Old World
and the semibarbarous ones of the new. To lift up silver will be to drag ourselves
down. According to this doctrine the man who pays a bill with a piece of gold is
ennobled by the act, and approximates in character to the exalted level of the British
banker; on the contrary, if he pay the same bill with a piece of silver he sinks by
insensible degrees and approaches the true Chinese type of character.
What is true in particular must be true in general, and national use of silver becomes national degradation. In the light of this wonderful discovery how grateful
become the American people for the vast hoard of silver in the Treasury. What an
inconceivable amount of possible degradation do those millions represent. What if
we had spent it all—used it as money. Doubtless by this time we should have discarded plug hats, if not collars and neckties; work upon the National Library building would have ceased, and we should all be engaged in raising pyramidal monuments
to the memory of the dead kings of finance.
Now we understand why, in all ages past, civilization has dragged its weary length
along with many a painful halt and long delay. Men would use silver.
This was the unbreakable chain that tied humanity fast to the lower levels of existence. It was the malign influences of the shining white metal that rendered futile
Alike the superhuman power of the Christian religion, and the kindly influences of
human nature. The present is anno auri 19.
In the year 1H73 the new dispensation was ushered in—the golden age of the world
when nations shall not use silver any more ; and the mighty heavings of popular unrest which have marked the recent "yeaTS are but birth throes of the coming millennium.
I would beg pardon for bringing such stuff before the committee if it were not that
it passes current in the halls of legislation, and wins the well paid praise of a venial
But if such a matter can be treated seriously, how does the remonetization of silver
place us on an exclusively silver basis ? The nation stands to-day, financially speaking, upon its golden leg, with its silver member in a sling, much as you have seen, a
baulky horse prepared for travel.
It is claimed that if we cut the bonds so that we can put. both feet upon the ground
the European nations will immediately run away with our golden leg, leaving us as
one-legged as ever. I venture the prediction that once the United States gets both
feet upon the ground whoever tries to take one of them will gain new ideas of the
weight and standing of the United States.
Our security will not then depend upon the miserly clutching of a little hoard of
gold, but upon our ability to commaud the entire metal money of the world. Whence
comes this insane delusion of the nations of Europe? In their very anxiety to get
money they first throw away one-half of the common stock and then engage in a wild
scramble for the remainder.
The most successful enemies that the United States ever met 011 land or sea are
those who forced her to despise her treasures of silver and grovel in unseemly strife
for the possession of the world's meager stock of gold.
If we give Europe an even chance she will take our gold and leave our silver.
Well, when choice is freely offered it is expected that it will be freely accepted. But
are not we equally free? If Europe is free to take gold, are we not equally free to
make her take silver? But she will take pay for her debts in gold and sell us goods
only at a higher price for silver. Not until we become imbeciles. If she forces a
difference in price, I am prepared to guarantee that the United States will have the
wit to pay her debts in the cheaper metal and buy her goods with the dearer one.
Our dependence upon Europe has been iterated to the sickening point. Europe buys
our food for her hungry millions, and we get in return articles of luxury to gratify
the pride of the rich and the refuse of her cities to swell the ranks of our poor. Beyond these, except for thefinancialadvice imported duty free, Europe, so far as our
comfort is concerned might as well be sunk beneath the ocean. She would carry
down little of moment to us except a few chance travelers and some thousands of
millions of bonds and securities, which latter loss would not cost us a single tear.
Whence comes this insane dread of parting with our gold ? Gold at its noblest use
is but money, and money is not the good we seek, but only a means of getting it.
Money is power, not enjoyment; it is expectation, not realization ; it is hope rather
than glad fruition. Mouey is unlike any other created thing; it receives a hearty
welcome in every home, but it has for man none but a parting blessing.
The sole use of money is to spend. Deny the right to spend and money is shorn of
its power. No poverty is so abject as is his who possesses nothing but nnspeudable
money. No power on earth can take this gold from ns except with our glad consent.



We shall not part with it until men come after and lay at our feet all the good that it
is potent to command, and this not their estimate of good, bnt our own estimate of
its value to us, and then we shall be fools not to part with it.
The enemies of silver address the American people, now as if they were children,
then as if they were fools, aud again as if they were oppressed by the despicable
passion of the miser.
I say to these gentlemen, yon are not acquainted with the American people ; you
judge of their intellectual resources from the result of an inventory of your own mental
What is all this agitation about; what the question that has been gradually plowing way downward to the very subsoil of society for nearly twenty years, and that
brings us face to face to-day ?
It is simply the question of the restoration of silver. And why the restoration of
silverf Simply and only because silver lias been degraded from its time-honored
place as a money metal. There is nothing wonderful or sudden ur strange about thisdegradation of silver. We know when it commenced, how it was begun, and why it
has continued. We shall never be wiser upon this subject. When we can plainly see
that certain forces are driv ng a certain thing in one direction, we also see then as clearly
as we ever shall that the reversal of the force and its application to the other end of the
object will drive it in the other direction. Would we restore silver? Thou let us reverse the operation that degraded it. We are told that the price of silver has fallen.
Fallen,I ask,from whence? It has not fallen from its old-time place as a purchaser
of this world's goods. That was all the place there was for it to fali from ; and that it
has not fallen is certain because it will buy just as much goods asever. But it has fallen
in relation to gold. Given any two things and one can always be made lower than
the other by putting the other higher than it. Given a kite with a long enough string
andthetop of Washington's monument can be made to stand at a lower level. Let
gold be tried by the infallible test of its power over goods and you will find it to be
the rogue that has not kept its place. But let us say that gold and silver have separated. When did they separate ? Never until the United States drove silver from
her mint. Is it any wonder that they separated from that moment ?
It is use that gives power. Use your right arm alone while the other haui*s inactive at your side and it will wither. The strong left arm of the nation has withered
and shrunk. The"Scribes and Pharisees urge us to call an international council of
financial doctors ; and in the din of their babbling tongues is almost lost the voice
of the prophet, who says, stretch forth thine hand and it shall be restored by use.
The contention is that; while the small United States of twenty years ago could bear
silver down by getting on top of it, the far greater United States of to-day is unable
to lift it up by getting under it. It were a waste of breath to argue that point.
But why this desire for an international conference so long as we have no scheme
of robbery and outrage on foot ?
The universal law of life is selfishness, mitigated in individual instances by the
law of human kindness.
Nations know neither love, pity, nor remorse. When did they over unite except
for plunder—some partition of Poland or kindred enormity?
And why do we wish them to unite? Can any suppose them unable to see that our
sole object is to draw them into a bargain to take our silver in the payment of our
debts at the same rate that they value gold?
The man who goes atishing in European waters with only this kind of bait is
either a fool confessed or is only fishing for delay.
But why seek an international agreement to take our silver at its foreign gold value,
when we can make Europe take it at that rate whether or no ? We owe to Europe
thousands of millions of dollars, and the silver dollar is the coin mentioned in the
bond. Was there ever a more awful instance of idiotic imbecility than that which
issues in the proposition that we should pay these thousand of millions in gold when
we have not the gold ? We are putting the gold into our teeth to bury with our dead,,
making it into wedding-rings and other adornments for the loved and the fair.
We are becoming so rich that we can not spare gold for monetary uses.
To pay this vast debt in gold we must raise great crops with which to borrow a
little of that rare metal; having paid this to our loving creditors, we can borrow it
over again and pay it some more ; and keep on doing so to all eternity, for if fools
enough to begin, what hope remains that we should ever be wise enough to stop ?
This is not exactly the kind of luxury that the horny-handed sons of toil have in
mind as they stand over the ballot box with the fate of politicians and of parties in
their hands.
But why an international conference when there is no international business on
hand ? It is the sole business of nations to get what each can and to keep what each
To the United States belongs the honor of being the first nation that out of the



security of its strength has proposed the adoption of a nobler code of international
But this great question that engages our attention to-day has nothing to do with
international affairs. It is enough for one government to administer justice upon
that broad domain that stretches from sea to sea. This is a question of the right of
the American people to dig into the everlasting hills and bringing thence to the mint
their gold and silver to use them both equally for money.
This right is rooted deep in the Constitution of the nation; and though the tree
has been broken down and the fruit destroyed by means of legislation that finds no
other responsible parent bub the devil, the root has never ceased to be watered by
the tears of a suffering people.
The last great court of appeals in the people. I come here to-day to represent the
The majority of the last Congress that bowed the knee to the Golden Baal—where
are they?
Gentlemen, if vou can afford to let this great question go over to the.Fifty-third
Congress so also can we.
1 will only detain you long enough to present the testimony of some eminent
authorities, which, however, is hardly needed, to demonstrate the folly of depending upon foreign aid in the minding of our own business.
There have been held three international mouefcary conferences, all in Paris, in the
years 1867, 1878, and 1881.
The first was called by the French Government in pursuance of the policy which
had achieved the quadruple monetary treaty of 1865, the so-called Latin Union.
Twenty states were represented. " That conference, animated by a controlling desire to
secure a uniformity of money pieces among the nations there represented, and deeming that it saw iu gold monometallism the means of doing this, recommended that
policy, and with very little consideration of the sacrifices it would require from production and trade."*
The conference of 1878, called by the United States, met at Paris. Twelve states
were represented. The object was u to agree upon a commou ratio between gold and
silver for the purpose of establishing, internationally, the use of bimetallic money
and securing fixity of relative value between those two metals."
Mr. Broclj stated (p. 18) that i f if the conference had for its exclusive object the
relation to be established between gold and silver, it was clear that for the Scandinavian states, as for all states which have a single standard, this question could offer
no practical utility." * * * The resolution upon the part of t-fie states of Sweden
and Norway to take part in the conference was formed upon the assurance that the
British Government had determined to send delegates with the understanding that
in doing so it did not commit itself to any conclusions which may be reached.
The result of the conference was the following expression :
(1) That it is necessary to maintain in the world the monetary functions of silver
as well as those of gold, but that the selection for use of one or the other of the two
metals, or of both simultaneously, should be governed by the special position of each
state or group of states.
(2) That the question of the restriction of the coinage of silver should equally be
left to *he discretion of each state or group of states according to the particular circumstances in which they may find themselves placed, aud the more so in that the
disturbance produced duriug the recent years in the silver market has variously affected the monetary situation of the several countries.
(3) That the differences of opinion which have appeared, and the fact that even
some of the states which have the double standard find it impossible to enter into a
mutual engagement with regard to the free coinage of silver, exclude the discussion of
the adoption of a common ratio between the two metals.
In regard to this declaration of the conference it was said by Count Rusconi (p.
164): " I t appears, however, that in drawing up this response special care has been
taken to avoid anything that might give rise to a hope, even the most vague, of a
future understanding. Not a word is said which reveals the idea of a possible international agreement, and the response is limited to a statement that each one will
continue to do at home everything that he pleases (p. 165, upon the same subject).
Mr. Goschen said that the instructions given by the Government of Her Britannic
Majesty to its representatives would not permit them to adhere to a formula which
would be in opposition to the monetary system of the United Kingdom. But as the
propositions which the president had just read do not in any way attack the single
gold standard, the English delegates are free to support them. * * * It would
be impossible for his colleagues and himself to support any declarations in favor of
the double standard (p. 16G). As for the .desire which has been expressed that the
hope be left open that some day a fixed relation may be established between gold

* Report of Am. Com., p. 204.

and silver, and an international value be given to them, he declared that in his view
it was impossible to realize this, impossible to maintain it m theory, and that it was
contrary to the principles of science.
Mr. I<Yeer-Herzog ^page 160) " shared the views which had been expressed by the
delegates of Belgium aud of Great Britain." Page 1(53, Mr. Garner said: " In order
to maintain silver in its monetary functions, the delegates of the United States have
proposed to establish between gold and silver a fixed relation of value, aud my honorable colleague, Mr. Pirmez, has demonstrated that this means is admissible
Page 166. Mr. De Thoerner said He thought it was his duty "especially to guard
against the possibility of any interpretation which should be made of that auswer in
the sense of veiled adhesion to the system of the double standard. Rnssia was under the
regime of the single standard. Public opinion there was absolutely opposed to the
double standard, and he thought he could say, without fear of being mistaken, that
the double standard would never be introduced in Russia."
Page 169. The president, Mr. Say, speaking of the conference, declared that "no
active measure, no common resolution, has come forth from our discus*ion,arid none could
Page 204. The American Commission, speaking of the conference of 1878, says:
"The early sessions of the conference disclosed that political complications would
combine with economic objections to prevent the accomplishment of the immediate
object of the act under which your Commission was cojstituted, namely, the establishment by international agreement of a fixed ratio in the coinage between gold
and silver.

It is a fact full of significance that at the last international conference, that of
1881, the delegates, almost without exception, took occasion to announce at the very
start that they had neither authority from their respective governments nor personal inclination to do more than play with the business as a compliment to the
United States. The following are some of their expressions:
Declaration of the delegates of Germany.
The Imperial Government of Germany, in taking part in this conference, called
for the object of establishing an international monetary system based upon bimetallism, does not intend by so doing to prejudice its further determination in the
premises; the declaration of its delegates should not, therefore, be regarded as definitely binding on the Imperial Government, but rather as a basis for further negotiations. (Page 27) * * * Germany, * * * whose general monetary situation
does not seem to call for a change of system so vast in scope, does not find herself in
a position to concede the free coinage of silver. Her delegates are, therefore, not able
to subscribe to a proposition looking to such action. (Page 30.)
Declaration of the delegates of Great Britain.
The monetary system of the United Kingdom since 1816, that is to say, for more
than sixty years, has rested upon gold as a single standard, and this system has
satisfied all the needs of the country without giving rise to those disadvantages
which have shown, themselves elsewhere and under other monetary regulations;
and for these reasons it has been accepted by the governments of all parties and by
the nation.
The Government of Her Majesty could not, therefore, take part in a conference as
supporting the principle of the double standard, and its answer to the invitation of
France and the United States necessarily set forth the reasons which prevent it from
taking part in the reunion which has been proposed. (Page 31.)
Declaration of the delegates of British India.
The Government of British India, in sending delegates to the conference, is not to
be regarded as having, by this fact, admitted the adoption of the principle of bimetallism in the British Indies; and in order that it may be free from responsibility for
the conclusions which might be reached by the conference, its delegates are not
authorized to take part in the votes of that body. (Page 32.)
Declaration of the delegates of Canada.
I am instructed by the government of Her Britannic Majesty to state, on behalf of
the government of Canada, that; while it will give the most respectful consideration
to the conclusions of the conference, the government of Canada desires to reserve irfTrfect freedom of action in respect to such conclusions.



Declaration of the delegates of Denmark.
As the Danish Government has no intention of abandoning the single gold standard introduced into the country a few years ago, I have received instructions on the
part of my Government to abstain from all discussion of the manner (quo modo) by
which the bimetallic system could be regulated. (Page 32.)
Declaration of the delegate of Portugal.
The Portuguese Government, in accepting the cordial invitation of the Governments of France and of the United States of America to be represented at this conference, desired, while fulfilling a duty of international courtesy, to give to these two
Governments a proof, in all respocts deserved, of consideration and deference; but it
frankly stated to them that the Portuguese monetary system now in force would
not allow of its entry into the bimetallic union now contemplated. (Page 33.)
Declaration of the delegate of Russia. _
The Russian Government reserves to itself entirely its right of opinion upon this
whole matter, and in nothing renounces its liberty of action by reason of any resolutions of the conference. So far as concerns my personal position in the midst of this
assembly, I can not do better than repeat what has just been said on his own behalf
by my honorable colleague'the representative of Portugal. (Page 33.)
Declaration of the delegate of Greece.
The delegate of Greece, in presence of the declarations made by the honorable delegates of England, of Russia, of Portugal, etc., considers it his duty also to declare
that, in his capacity of representative of a state which has adopted monometallism,
he would not be able to join in any measure which might lead to a change of this
system. (Page 34.)
Declaration of the delegates of Austria-Hungary.
Our attitude will therefore be chiefly one of friendly reserve, and while taking
ad referendum the results of our deliberations, we are not able to enter into any engagement upon any particular point. And further, if any one of us should think
proper to take part in the discussion, it would only be to express his personal opinions. (Page 35.)
Declaration of the delegate of Sweden.
My Government, while reserving the entire liberty of action upon the subject of
its monetary system, has given permission to its delegate to take part in the discussions of the conference.
Declaration of the delegate of Norway.
The Scandinavian countries have a monetary union based upon the single standard
of gold ; my Government reserves all its rights, but has given me entire freedom to
take part in the discussions, saving only my obligation to report to it finally. (Page
Declaration of the delegates of the Swiss Confederation.
The invitation to the new conference implying, as it does, the desire to arrive at
the conclusion of an international treaty authorizing the free coinage of gold and
silver as bimetallic money, the Swiss delegates will confine themselves to hearing
the reasons which have moved the Governments of the United States and France in
their initiation. * * * The Swiss delegates will, therefore, not take part in any
decision of whatever nature it may be.

[Government Printing Office, 1887.]
Page 84. The conference of 1881 closed without any formal declaration and without making any real advance towards an international agreement.

It was held at Paris, and the invitation to European Governments was extended by
France and the United States. (Page 85.)
Said Mr. Primes, of Belgium : " The gold monometallic states seem completely satisfied with their situation. In vain do bimetallists seek to alarm them by pointing
out the evils from which they ought to suffer, the perils which threaten them ; they
continue to declare that they feel neither ill nor uneasy." (Page 46.)
Mr. Broch, of Norway, said : " I therefore persist, aB I did in 1867, and as I did in 1878,
in advising the states of Europe and the United States to adopt the single standard
of gold." (Page 3.)

In reporting this case for discussion (in Europe) my method has been as follows:
I have stated that the circumstances of the times in the United States, such as the payment of all the interest-bearing bonds which are now due, the impending contraction
of the paper currency by the withdrawal of bank notes from circulation, the probable
accumulation of the surplus revenue iu the Treasury in the form of legal tender
United States notes or coin and other influence, might soon render important legislation an absolute necessity, both in respect to our monetary system as well as to the
reduction of taxation. I next called attention to the fact that in the meantime this
contraction of the paper currency might or must in almost any case continue long
enough to render the circulating medium of the United States insufficient for the
wants of the country. (Page 4.)
(1) From the beginning of my work, early in the month of June, until the present
date (October 1) 1 have called urgent attention to two points which I consider of
paramount importance.
(2) That for reasons which will be fully given hereafter, silver had been unduly
discredited and depressed ;in its price asbullion in Europe, while it [still retained
substantially its full value or purchasing power among the vast populations of other
continents, among whom it is and must remain the principle and necessary money
metal for use in the form of coins. (Page 5.)
I believe most fully that the bimetallism exists de facto, and that the use of both silver and gold as monetary metals is an absolute necessity. (Page 2.)
Having thus stated how I have endeavored to perform the duties assigned to me, I
now report that in my judgment—
(1) There is no prospect of any change in the present monetary system of European states which can modify or influence the financial policy of the United States
at the present time.
(2) There are no indications of any change in the policy of the financial authorities of the several states visited by me which warrant any expectation that the subject of a bimetallic treaty for a common legal tender, coupled with the free coinage
of silver, will be seriously considered at the present time by them.
(3) There is no indication that the subject of bimetallism has received any intelligent or serious consideration outside of a small circle in each country named, as a
probable or possible remedy for the existing causes of alleged depression in trade,
(4) There is no considerable politically organized body of influential persons in
either country with whom a combination could be made, if such a combination or
cooperation were desirable on the part of a similar body in the United States, for
promoting any definite or practicable measures of legislation to bring about the
adoption of the bimetallic theory according to the commonly accepted meaning of
that term. The discussion is as yet alihost wholly personal, and without any concentration of purpose or the presentation of any well devised measure capable of
being acted upon. (Page 7.)
The possibility of a bimetallic treaty without the concurrence of Great Britain
has been suggested, but it has apparently no prospect even of consideration in Germany, and very little elsewhere. (Page 9.)
The most important point which I be^ leave to present is this:
I am convinced by my own observation, sustained by the observation of others,
that it would be unwise and inexpedient for the United States again to take the initiative in promoting action for a general adoption of a bimetallic legal tender,
coupled with the free coinage of silver, for the reason that such action is misconstrued and may tend to retard rather than to promote the object aimed at.
The reason is this: The general conviction among the financial men in Europe is
that the United States Government is loaded with an excessive quantity of silver
dollars which it can not get into circulation. * * * Any effort of the United
States to promote a bimetallic treaty and to restore the free coinage of silver is not,
therefore, regarded as a sincere effort to promote a better monetary system, of which
all nations may share the benefit, but rather as being induced by a desire to promote
the special interest of the United States at the coat of whom it may concern. (Page




So long as the present coinage of the silver dollar of the United States is continued no proposition for a bimetallic treaty for the full legal tender of silver coin can
be entertained by European states, since they will not consider, under any circumstances, a proposition for the recoinage of their own silver in order to adjust it to
the standard of the United States.
* * * The present coinage acts of the United States depreciate silver as compared to the European and East Indian standard. (Page 15.)
If we compute transactions, bargains, sales by number rather than by amount,
silver is even now the principal money metal of the world, circulating as money
more freely, fully, and widely than gold.
[Extract from President's message, Congressional Record, December 10, 1891.]

" I have endeavored, by the use of official and unofficial agencies, to keep a close
observation of the Btate of public sentiment in Europe upon this question (bimetallism) and have not found it to be such as to justify me in proposing an international
[Senate Mis. Doc., No. 34.]

SEC. 105. We would further observe that if the question is to be entertained at all,
it appears to us that it should only be on the basis of a ratio between silver and
gold, approximating to the present market ratio of the two metals. It would not of
course be practicable, for obvious reason to adopt, as the basis of the arrangement,
what happened to be the market ratio at the day fixed for its coming into operation.
It would probably be thought desirable to take the average ratio for two or three
SEC. 115. A further danger to be apprehended is that the nations who were parties
to the bimetallic arrangement might not continue to adhere to it.
At present the action of this country is unfettered and not dependent upon the
course taken by any other power. This condition of freedom would cease as soon as
she became a party to an international agreement. Dangers arising from this cause
would be aggravated if it were found necessary, as we think it would be, to embody
in an international agreement detailed stipulations with regard to the coinage, currency, or internal financial arrangements of the several countries joining in it.
SEC. 120. Under all these circumstances, while fully impressed with the difficulties
of the present situation, and more especially with those which affect the Government
of India, we are not prepared to recommend that this country should proceed to negotiate with other nations a treaty embodying a bimetallic arrangement. We feel
that the matter needs much more discussion and consideration in the financial world
and by practical men than it has yet received, and that we are not in a position to
advise with any confidence that the change could be made safely, or without the
risk of creating evils exceeding those which we at present experience.
Sec. 128. It must be remembered, too, that this country is largely a creditor country of debts payable in gold, and any change which entailed a rise in the price of
commodities generally; that is to say, a diminution of the purchasing power of gold,
would be to our disadvantage.
Mr. WILLIAMS, of Massachusetts. I was interested, Mr. Newlands, in your statement of the amount of money invested by Europe in American securities, and you
stated that those securities were many times in amount the volume of our money in
circulation ; have you any data on which you base that statement f
Mr. NEWLANDS. I have no exact data, but I think the correctness of my statement
will be conceded.
Mr. WILLIAMS, of Massachusetts. Now, as I understand your proposition, it is, that
when those countries which hold our securities need money, they will do, and can do,
just what Eugland did when the Baring embarrassment occurred, and that is, send
their securities over here, sell them and realize money, if they need it, and take it
M r . NEWLANDS. Y e s .

Mr. WILLIAMS, of Massachusetts. Now, I want to ask you, how the free coinage of
silver, or any other financial arrangement that we may make, will prevent those security holders from doing that very thing hereafter t
Mr. NEWLANDS. Well, we will then engage ourselves more in making money and
less in borrowing it.

Mr. W I L L I A M S , of Massachusetts. We have borrowed our money and we shall have
to pay it, will we not ?
M r . NEWLANDS. Y e s .
Mr. T A Y L O R . Our securities are on the other side now—they are
M r . NEWLANDS. Y e s , sir.
Mr. W I L L I A M S , of Massachusetts. Can you answer this question:

over there now.

Is there anything
in any financial system which you can suggest which will prevent the holders of securities there from putting them upon our markets at such a sacrifice as they choose
to make, at any time, taking money in return, and going home with it f
Mr. NEWLANDS. NO, there is nothing that will prevent them from realizing upon
their securities at any time. But let me answer that further. We borrow money
from other nations because we need more money. Now, the free coinage of silver will
give us more money ot our own, and we will be compelled to borrow less and less.
While we may not be able to do away entirely with borrowing, and will not as long
as we have a country to develop, yet we diminish that necessity and also the danger.
Mr. TAYLOR. Please explain, right there, how it will give us more money.
Mr. NEWLANDS. I have already shown that the coinage value of the product of the
mines, of the world, according to Mr. Leech's statement, is $ 1 6 6 , 0 0 0 , 0 0 0 , and that
India, China, and the arts absorb about $ 5 0 , 0 0 0 , 0 0 0 .
Mr. T A Y L O R . I understand all that.
Mr. NEWLANDS. This leaves a possible $ 1 1 6 , 0 0 0 , 0 0 0 for us to absorb. But I do not
think that we will get all of this $116,000,000. It may be, however, that we will get
all of it; we will certainly get more than $ 5 0 , 0 0 0 , 0 0 0 , the amount that we are now
getting by a limited purchase of silver.
Mr. TAYLOR. I understood you to say yesterday, Mr. Newlands, that you did not
think we would get any silver, any foreign silver, simply because they will have to
take silver dollars when they come here. That is what I understood you to say
Mr. NEWLANDS. We will get none of that silver which is in the shape of silver
ooin. •
Mr. T A Y L O R . HOW about silver bullion f
Mr. N E W L A N D S . I think we will get a portion of the world's product of the mines.
We may get a portion from the Mexican, South American, and Australian mines.
Mr. T A Y L O R . YOU said yesterday in your statement to me, and we agreed on it,
that you thought we would not get any more silver from abroad.
Mr. NEWLANDS. I think if you will look over the report of my testimony that you
will find that I limited that statement to that portion of the silver that is now in
silver coin.
Mr. T A Y L O R . Whether you did that yesterday or not, yon want to do that this
M r . NEWLANDS. Y e s , s i r .

Mr. W I L L I A M S , of Massachusetts. I would like to have you follow up that question
and answer it. You can not deal with the development of the future. But you stated
that there is in existence at the present time a demand by foreign security holders
upon us for money, as I judge from your statement, many thousands or millions dollars of money, or whatever they may demand in payment. Does your statement offer
any cure or relief against the danger of that demand being precipitated whenever the
foreign holders of securities may choose to do sot
Mr. NEWLANDS. It may not diminish the danger of that demand being precipitated. It will diminish the injurious effect of it.
Mr. W I L L I A M S , of Massachusetts. Well, now, how ?
Mr. NEWLANDS. By giving us larger money volume.
Mr. W I L L I A M S , of Massachusetts. How would it give ns a larger money volume ?
Mr. NEWLANDS. Under the present silver act we add about $ 5 0 , 0 0 0 annually to our
money volume. Under free coinage, as I have shown, we might be called upon to absorb $ 1 1 6 , 0 0 0 , 0 0 0 annually out of a total coinage value of $ 1 6 6 , 0 0 0 , 0 0 0 , the world's
annual product. This would be a possible increase of $ 6 6 , 0 0 0 , 0 0 0 annually. Let
me give an illustration of that. The Secretary of the Treasury, Mr. Foster, states
that free coinage of silver, the increased volume of money issued under the present
silver law of 1890, saved the country during the crisis of last year, when England
took away from us about $ 7 5 , 0 0 0 , 0 0 0 in gold by selling in her markets her American
securities. As it was, our business men were much cramped and great suffering and
loss resulted. We might have saved our people much of this loss, if during the
period of three or four years past we had absorbed annually $ 5 0 , 0 0 0 , 0 0 0 more of the
world's silver.
Mr, W I L L I A M S , of Massachusetts. My proposition is, whether we can prevent these
things from being done at any given time. That is my question.
Mr. NEWLANDS. We can never prevent our creditors from calling on ns for the money
which we owe them.
Mr. WILLIAMS; of Massachusetts* Now, Mr. Newlands, is not thiB true, that what is



more likely than anything else to precipitate such a sale of securities is a want of
confidence, reasonable or unreasonable, in the minds of the owners of those securities
in our financial systems.
Mr. NEWLANDS. A want of confidence in our ability to pay our debts, and a disposition to realize upon their securities, might precipitate upon us a demand for the
realization of those securities. But it is my impression that no such fear exists.
Mr. WILLIAMS, of Massachusetts, Well, that is another question. .
Mr.NEWLANDS. All these obligations are payable in gold; they will be paid in
Mr. WILLIAMS, of Massachusetts. Are they all payable in gold F
Mr. NEWLANDS. I will correct that. The United States bonds are payable in coin,
but you will find that almost all the other kind of securities that have been made of
late years, railroad bonds, municipal bonds, and the bonds given in the various enterprises of the country, are made payable in gold.
Mr. WILLIAMS, of Massachusetts. That is true.
Mr. NEWLANDS. But, you must realize that yon diminish the value of every unit
of gold by increasing the number of the units of silver; so it makes no difference
whether these obligations are payable in gold or in silver, provided we do not pay
them in appreciated gold. That is what I object to. I do not object to paying gold,
but I do object to paying an appreciated gold.
Mr. WILLIAMS, of Massachusetts. I suppose you are aware, Mr. Newlands, that
many millions or hundreds of millions of these securities are not distinctly payable
in gold.
Mr. NEWLANDS. I can not tell what proportion of them are. I presume all the
national bonds are payable in coin.
Mr. WILLIAMS, of Massachusetts. Undoubtedly; but then you take the railroad
securities, they answer the same purpose as the government securities for prepipitating the danger that we are now discusing, and hundreds of millions of those, I think
you will agree with me, are not distinctly payable in gold coin in the United States.
Mr. NEWLANDS. I do not think so. I think, as a rule, they are payable in gold
coin. That is my information, although I do not know it personally. I have no accurate knowledge.
Mr. WILLIAMS, of Massachusetts. Now, it is true, Mr. Newlands, is it not, that the
ability of this country to pay its debts is a very important element in the keeping of
thotre securities on the other side and preventing just such a general sale as you suggest?
M r . NEWLANDS. Y e s ,
Mr. WILLIAMS, of Massachusetts.

Is it not true that the most important element in
that confidence is faith in our financial system, whatever it may be ? That is true,
is it not ?
Mr. NEWLANDS. That is an element, yes.
Mr. WILLIAMS, of Massachusetts. That is an element, and a very important element.
Now, suppose the European holders of American securities which are not payable in
gold believed that this country would be precipitated to a silver basis by the enactment of a free coinage law, no matter whether you or I am right as. to the judgment
of the result—if they believed it, would it not tend to precipitate just the misfortune which you describe as possible?
Mr. NEWLANDS, It has a tendency to, if they believe it. I say they do not believe
it. On the contrary I believe that the Europeans have more confidence in their investments in American securities than they have in any other kind.
Mr. WILLIAMS, of Massachusetts. In their investments of whatever kind, if they
should have the least fear of our ability to pay gold, or our purpose to pay gold for
their securities generally, payable in American money, would that not tend to bring
every dollar of that security here the minute that confidence was broken ?
Mr. NEWLANDS. It would have that tendency, if that belief existed. But, now let
me say on the other side, by way of illustration, that a friend of mine went to London shortly after the act of demonetization in 1873, to negotiate some railroad bonds.
He went to see a prominent London banker and writer on political economy, whom
he expected to act as intermediary in that transaction. In the course of the conversation, this American alluded to the financial condition of the United States; that
we expected soon to be in a very prosperous condition ; that the mines of the West
were producing rapidly, and would tend to solve all our financial difficulties and to
restore us to specie payments.
This gentleman said to him "Yon forget that you have denied yourself the use of
your mines. " The American asked him what .he meant. He said, " You have
demonetized silver," and that was the first information this American had of the
demonetization of silver in the United States, information acquired in England, too.
This gentleman went on to say the effect of the demonetization would be to contract
the money volume, and that he did not think it a good time to invest in American
securities. So you see they realized—these thinkers, and they had more thinkers

upon this subject than we had prior to the agitation of the last 10 years—they realized the effect of a money contraction and they know the effect of a moderate money
expansion, which brings prosperity. I believe that among thinking men of Europe
it will produce a greater confidence. I believe that Englaud laughs at us to-day for
our folly in refusing to enjoy the benefit of our own product.
Mr. WILLIAMS, of Massachusetts. One more question, Mr. Newlands. You must
excuse me, but this is an opportunity for us to find out your opiniou upon points
which suggest themselves to us. I want to say just a word about your statement
concerning the demonetization of silver by the United States. It was not known,
and was not for three or four years, or until 1876, when we saw that it was beginning to affect us ?
Mr. NEWLANDS. Mr. Bland can tell us about that. I think it was found out in a
year or so.
The CHAIRMAN. The next year.
Mr. WILLIAMS, of Massachusetts. A year or two after, and np to that time, as near
as you can get at it, nobody suspected what the operation of the law would bo.
Mr. NEWLANDS. I will not say that nobody suspected.
Mr. WILLIAMS, of Massachusetts. Did you know anybody who had realized it F
Mr. NEWLANDS I think it was very well known by that time.
Mr. BARTINE. John J. Knox claims that he knew it all the time.
Mr. WILLIAMS, of Massachusetts. Excuse me, Mr. NewlandB, I do not want to take
up much time, if you will just
Mr. NEWLANDS. I think that John J. Knox knew it, and I think that Senator Sherman also knew it. I do not know of any other public men who knew it.
Mr. WILLIAMS, of Massachusetts. Do you know of any public men abroad who
knew it?
Mr. NEWLANDS. I have stated to you that* this Englishman knew it before an
American who was quite active in public affairs.
Mr. WILLIAMS, of Massachusetts. Do you know that it was appreciated anywhere
what the result of that act would be? You have stated but those two men.
Mr. NEWLANDS. I do not think it was appreciated in this country at all. I believe
that it was thoroughly understood by the money-lenders of Europe, and the prominent men in great banking institutions, that there would be an effort to demonetize
silver and to make gold the only money, and that they were perfectly aware of that
fact outside of this country.
Mr. WILLIAMS. YOU think, then, that all the European financiers having charge
of European finances were well aware of that, and that we were so deluded that not
one of our leading financial experts, except Mr. Sherman, had any idea of it—not
one of them ?
Mr. NEWLANDS. I have not said that. I said I know of none.
Mr. WILLIAMS, of Massachusetts. That is the result of it.
Mr. NEWLANDS. I will not say that all the leading financiers of Europe knew i t ;
I will not say that all of them did; but I believe there was a general understanding,
however, among those great houses who either loan money themselves or lend it on
account of others, that a great increase in the value of Government securities, railroad securities, etc., would take place if silver could be demonetized, and that every
effort was made by them to secure that result.
Mr. WILLIAMS, of Massachusetts. You do not think it was so generally understood
here ! It was known to England before it was to the people in the United States ;
that is, it was known by her financial men.
Mr. NEWLANDS. Yes, sir; but my impression with reference to Europe is that all
these Governments in regard to financial matters are under the control of the great
money lenders. I do not believe there is a sovereign in Europe who can do business
without a banker as a partner.
The CHAIRMAN. Is it not true that Mr. Hooper reported a bill demonetizing silver,
stating at that time that they had had the advice of foreign financiers in the preparation of that bill.
Mr. WILLIAMS, of Massachusetts. Mr. Chairman, he was a bimetallist, and was
favorably disposed to silver.
The CHAIRMAN. I do not know anything about that. I know Mr. Hooper made
that statement on the floor of the House, and it is in the Congressional Record.
Mr. NEWLANDS. It is well known that Mr. Earnest Sayd, who was supposed to represent European interests in American securities, was here, and that he was an advocate of the demonetization of silver.
The CHAIRMAN. It was so stated by Mr. Hooper, and it is in the Congressional
Mr. NEWLANDS. Whether or not his work was secret, I do not know. The general
impression among bimetallists is that it was secret.
Mr. WILLIAMS, of Massachusetts. Then your impression is, that the financial policy
of Germany was based upon this secret unknown quantity in the bill of 1873 ?



Mr. NEWLANDS. Partially.
Mr. WILLIAMS, of Massachusetts. Well, now, to what extent and what authority
have you for stating that it had no information whatever ?
Mr. NEWLANDS. Well, we all know that prior to 1873 Germany was a silver standard country. Prior to 1871 she had gone upon the silver standard. In 1885, in
obedience to that class of economists who declared that there was too much gold
being produced in the world, and that it was to the interest of the money-owning
classes to make silver the only standard
Mr. WILLIAMS, of Massachusetts. Just a question. Do you not know that Germany's policy was practically announced in 1871, before the measure of 1873 had
been seriously thought of in the United States.
Mr. NEWLANDS. I do not understand that it was. All that Germany did in 1871
was to restore gold. In other words, she put herself upou a bimetallic basis by her
action in 1871. She never demonetized silver until two months after the United
States had done so. Now I assume that the fact that the United States, which is a
silver producing country, proposed to reject its own silver bullion and to throw it
upon the nations of Europe was a potent factor in the determination of Germany.
Mr. W I L L I A M S , of Massachusetts. Yon are aware, I suppose, that up to that time
and within the five years previous the coinage of silver in the United States had not
exceeded $3,000,000, and that the silver coinage of this country was not a factor in the
coinage of the world at all ?
Mr. NEWLANDS. That is true, but you must recollect that the silver dollar in
America was worth $1.03, and that the holders of bullion could get more
Mr. WILLIAMS, of Massachusetts. I understand that.
Mr. NEWLANDS. For it in Europe than they could here, and hence they sent their
bullion over and it was not coined here.
Mr. W I L L I A M S , of Massachusetts. And for that very reason the United States was
not a factor in the question which Germany had to meet.
Mr. NEWLANDS. But recollect the product of silver was largely increasing up to
that time.
Mr. WILLIAMS, of Massachusetts. Well, not in 1873.
Mr. NEWLANDS. All along there.
Mr. W I L L I A M S , of Massachusetts. The great increase was made after that, was it
Mr. NEWLANDS. Well, I can not say
Mr. BARTINE. It was in 1873 or 1874—it began in 1872. That was the crowning
point. The great output of the Comstock lode was made in 1872.
Mr. T A Y L O R . I understand you to say, Mr. Newlands, that you think to-day under
a free coinage act $50,000,000 or $60,000,000 would come to this country.
Mr. NEWLANDS. I think, in all, we would be called upon to absorb between
$ 8 5 , 0 0 0 , 0 0 0 and $ 1 0 0 , 0 0 0 , 0 0 0 annually.
Mr. T A Y L O R . Well, that would be $50,000,000 or $ 6 0 , 0 0 0 , 0 0 0 from foreign countries,
would it not ?
Mr. NEWLANDS. We have about $50,000,000 here.
Mr. T A Y L O R . Then $50,000,000 ?
Mr. NEWLANDS. Well, possibly $50,000,000, though I hardly think it would reach
that amount.
Mr. TAYLOR. Forty millions of dollars ?
Mr. NEWLANDS. But, you must recollect it is not simply an increase of the money
volume, but it is also increasing
Mr. T A Y L O R . Excuse me. Wait until I get through, then you can make your
speech. It would increase the circulation of this country then that much, would it
Mr. NEWLANDS. Yes; I wish it would increase it. I wish we could absorb
Mr. T A Y L O R . When they bring that silver here they will have to have something
for it, will they not ?
M r . NEWLANDS. Y e s , s i r .
Mr. TAYLOR. What would they get for it ?
Mr. NEWLANDS. They would probably take it in products at a
Mr. TAYLOR. Take things they need ?
Mr. NEWLANDS. Take things they need, and we do not want.
Mr. T A Y L O R . If they could not pay for it in silver, they would

something else, would they not ?

very good price.
have to pay for it in

M r . NEWLANDS. Y e s .
Mr. T A Y L O R . They would have to pay for it in gold, would they not?
Mr. NEWLANDS. It might be, if they wanted to.
Mr. T A Y L O R . Well, I say
Mr. NEWLANDS. YOU will find that it will simply create a new demand


for our

Mr. TAYLOR. They would not take anything that they did not want, simply to get
rid of their silver, would they ?
Mr. NEWLANDS. I will show you the immediate effect of it.
Mr. TAYLOR. You can answer that question ?
Mr. NEWLANDS. You say I make a speech whenever I reply. I can not answer these
questions monosyllabically.
Mr. TAYLOR. You can answer the question, whether they would take anything
they do not need, simply to get rid of their silver.
Mr. NEWLANDS. No, they would not take anything they do not want. But they
would take things from us that they might not be able to get from other localities.
Take for an instance India. Suppose we just restore the value of silver to $1.29 an
ounce. England would then, instead of doing as she has heretofore, buy silver in
this country at 91 cents—from 91 cents to above $1 an ounce—and then use it at its
old purchasing power in India in buying wheat and cotton there, she would do away
with her purchases of silver bullion here, and would purchase her wheat and cotton
here. Now, that was demonstrated when the rise took place in silver after the passage of the present act. A rise to about $1.20 an ounce took place, and exports of
wheat and cotton from India almost ceased. The exports of wheat aud cotton from
this country revived. We prospered, but India almost went into insolvency, aud
great distress ensued. Of course, I do not take any particular pleasure in seeing one
nation benefited at the expense or destruction of another, but that it is the fate of
all nations.
Mr. TAYLOR. Yes; but, under your theory,silver would go to $1.29 in India.
Mr. BARTINE. That is just exactly the same thing.
Mr. TAYLOR. I say that is out of the question.
Mr. BARTINE. Why, of course yon can sell it for $1.29. There is no question about
selling it.
Mr. NEWLANDS. Not one dollar's worth of bullion under free coinage of silver
would be purchased by the Government here. The owner of silver bullion would
simply have the right to take it to the mint and have it coined into dollars.
The CHAIRMAN. If it should go to $1.29 in Tudia that would stop speculation in it.
Mr. NEWLANDS. For an illustration, Sir Robert Fowler, of Eugland, formerly lord
mayor of London, and afterwards a member of Parliament, a member I believe of
the East India Company, declared before the Royal Commission, that it was to the
interest of England to continue the demonetization of silver, for by reason of it she
could purchase cheap silver in America, and utilize it buying wheat and cotton in
India, and in that way build up India at the expense of America. Those men justified their conclusions with reference to these questions. It was a matter of calculalation with them.
Mr. BARTINE. Mr. Williams stated to yon that a large amount of these American
securities held in Europe were actually payable in silver.
Mr. WILLIAMS, of Massachusetts. Oh, no, Mr. Bartine; gold and silver.
Mr. BARTINE. NOW, assuming them to be payable either in gold or silver, and that
Mr. Williams's statement is correct—and I am prepared to accept it—would it not, if
we should pass a^Tree-coinage bill at once, be to the interest of the holders of these
securities to uphold and sustain the value of American silver coin ?
Mr. NEWLANDS. I should think so, unqualifiedly.
Mr. STONE. If I understood you yesterday, when you commenced, you stated that
your purpose here was, particularly, to give us some reason why an international
conference would be futile of result.
M r . NEWLANDS. Y e s .
Mr. STONE. The only

reason that I am able to find that you gave was that England
and the European nations—England and Germany especially—were creditor nations
of ours; that they hold our obligations, and that if we should go to them with a
proposition for an international conference that we make to them a proposition to
scale down their debts.
M r . NEWLANDS. Y e s .
Mr. STONE. Your judgment is that that is the way it would
M r . NEWLANDS. Y e s .
Mr. STONE. Aud that they would regard it as a scheme to

be received by them?

scale down the debts
which we owe them to some considerable extent, sufficient to influence their judgment ?
M r . NEWLANDS. Y e s .
Mr. STONE. And you

think that that would be a logical and proper position for
them to take ? Is that not true ?


Mr. STONE. The same effect which that mode of proceedings would have upon their
debts, it would have upon all debts of our own wherever held, would it not?'
M r . NEWLANDS. Y e s .


Mr. STONE. That is, if it had the effect of scaling down the debt of England it



would also have the effect of scaling down debts held in the United States in private
enterprises ? It would be a general scaling down of indebtedness.
Mr. NEWLANDS. I object to that term scaling.
Mr. STONE. I used the word you did.
Mr. NEWLANDS. I say they would regard it as such.
Mr. STONE. That is the way you expressed it. " We propose to scale down our
debts." Now just let me follow it up
Mr. NEWLANDS. But, I would like to explain there, I do wish that expression to be
put in my mouth as an original one. I do not regard this as a proposition to scale
Mr. STONE. YOU say that is the way they would look at it.
Mr. NEWLANDS. I regard it simply as a proposition to deprive the creditor of a dishonest advantage which he has got by legislation.
Mr. STONE. That is the way they look at it, as I understand ?
Mr. NEWLANDS. That is the way they would look at it.
.Mr. STONE. And you think, that that would not be a fair argument in their
Mr. NEWLANDS. I do not think it would be a fair argument.
Mr. STONE. And that would apply to all otber debts? How do you come to say
that this would be a dishonest proposition, so far as debts that have accrued since
1873 are concerned ?
Mr. NEWLANDS. Simply because the debts that have been made since 1873 have
been with reference to this existing agitation which has gone on for the restoration
of silver. BHt, all these men who are opposed to it say, " admit-that it is wrong then
the statute of limitations ought to prevent it." Now my auswer is this, that within
one year after the act demonetizing silver was passed, the opponents of that act went
into court, and commenced proceedings for its reversal. They have been before the
popular court ever since pressing the reversal, and the gold men can't say that the
statute of limitations should protect them in the wrongful advantage they gained
by legislation.
The CHAIRMAN. It is just as competent for this Congress to restore silver to free
exchange, as it was for the Forty-second Congress to demonetize it ?
Mr. NEWLANDS. I should think so.
Mr. STONE. Now, then, return to the proposition, Mr. Newlands. Debts created
since 1873 are not specially payable in gold, are they ?
Mr. NEWLANDS. I do not know about that. I make obligations payable in gold,
and I do not hesitate to make them.
The CHAIRMAN. They are payable in legal tender currency.
Mr. WILLIAMS, of Massachusetts. If you should go to borrow on permanent security,
would you have to pay in gold?
Mr. NEWLANDS. Sly view of it is this: While it is true, if I borrow money on bonds
payable in gold, and if that gold is constantly appreciating in value, I will be hurt;
yet I say that silver legislation will tend to deprive gold of this dishonest appreciation, and hence my bond will not call for any more value really than if they were
payable simply in lawful money of the United States.
Mr. STONE. Will you answer this question, Mr. Newlands? Whatever the effect of
silver coinage would have upon debts held in Europe, it would huve the same effect
npon every debt—municipal, railroads, corporations, or citizens of this country whereever held ?
Mr. NEWLANDS. Oh, yes; and that is tho reason why you will find this conflict of
interest in this country. The people who live in the money centers are opposed to
this legislation—the creditors are on the one side, and the borrowers and producers
on the other.
Mr. STONE. Was it not Mr. Newlands purpose here to give us some reason why an
international conference would be futile. This is the only reason given, and that
was not the reason you gave a year ago in your testimony, Mr. Newlands, in discussing the same topic.
Mr. NEWLANDS. I do not recall what I said a year ago. I have thought a good
deal upon this subject since. Possibly I have gained some new information.
Mr. STONE. DO you not remember that as a matter of fact you did not give this
reason, but that yon did give one single reason, and that is, as to the character of the
commission who were sent by the United States to attend this conference.
Mr. NEWLANDS. I recollect that I did give that reason. We have had reason to
complain of the men who were sent over to represent us.
Mr. STONE. Have you, for the purpose of putting it on record, the names of the
gentlemen who represented this country in those three conferences in connection with
your criticisms on their representative character.
Mr. NEWLANDS. SO far as the first conference is concerned I think Mr. Groesbeck
and Mr. Evarts represented us. I think no objection could be made to either of

The CHAIRMAN. And Mr. Sherman, also.
Mr. NEWLANDS. And Mr. Sherman. What I had in mind at that time was a later
development. I refer, for instance, to* the appointment of Mr. Edward Atkinson by
Mr. Cleveland to go over there and represent the bimetallic interests of this country.
Mr. STONE. At a conference ?
Mr. NEWLANDS. NO J not at a conference, but in a diplomatic capacity.
Mr. STONE. YOU have talked about the reason why a conference would be futile.
Now, you have given the names of the delegation to the first conference. You say
there is nothing in their character that would bear out your objection. Will you
give us the names of the delegates to the other conferences.
Mr. NEWLANDS. The second conference ? N O ; I do not recollect them.
Mr. WILLIAMS, of Illinois. It is a matter of record.
Mr. STONE. Yes; it is a matter of record.
Mr. NEWLANDS. The statement might have been too sweeping, because I had not
examined the proceedings of those conferences as closely as I ought to have done.
There was a general feeling among the silver men that the gentlemen sent to represent this country were not thorough bimetallists, and I think the appointment of Mr.
Edward F. Atkinson tended to convince them of that more than anything else.
Mr. Newlands made the following additional statement:
The United States is now thoroughly committed to silver. About one-third of her
entire money volume consists of silver, or silver certificates and Treasury notes based
upon silver. She must sustain silver. The question is how shall it be done ? If she
concludes to stop the further use of silver, then silver bullion in the world's market
will decline, and the difference between the bullion value of silver and the coinage
value of our silver in circulation will be emphasized. If she goes on with the present limited purchase of silver, the decline in its bullion value will be progressive.
Free coinage of silver alone will restore the value of silver, for no man in the world
will take less than $1.29 per ounce for his silver, provided he can have it freely turned
into coin in the United States mints.
Under the present limited purchase of silver the bullion value of silver must steadily decline, for the reason that there is no real competition in the world's markets.
The demand for the world's product of silver, which amounts to about 134,000,000
ounces per annum, comes from the United States, the arts, and the purchasers made in
England upon Asiatic account. England's purpose is to keep down the bullion value
of silver, as by so doing she secures a large profit in her dealings with India, and she
advances the use of Indian wheat and cotton. The silver product of the world is for
sale in New York or London markets. The transactions are all made by a f^w
brokers who are engaged in that business in New York and in London, and who have
a perfect understanding by which the price of silver is kept down. The purchasers of
silver are few, and the transactions are in large amounts. The sellers of silver are
the numerous mining companies engaged in silver production. There can be no competition among them, for they are too numerous and too much dependent upon current sales for the payment of expenses. It is perfectly easy, however, to make a
combination amongst the buyers of silver. That such a combination exists no observer of events can deny. The buyers of silver know that the compulsory-purchase
law of the United States must be complied with. They therefore stand out of the
market when the United States is a buyer. When she has secured the 4,500,000
ounces in a month required by law, it is comparatively easy to divide up the remaining 5,000,000 or (3,000,000 ounces among the few brokers who are bidding for it.
If a piece of land is for sale at auction, and there are but three bidders, and each
bidder agrees with the other that he will take only one-third of the land, it will be
easy for them to fix the price themselves which they are to pay. Such combinations
amongst bidders at auction sales will invalidate the sale at law, and yet these combinations amongst the various buyers of silver to secure silver bullion at their own
price is successful every month, and that success has resulted in the constantly continuing decline of the price of silver.
Gold would decline if it were subjected to the same conditions. The only way to
restore silver is to give it the same privileges as gold. The gold-owning nations of
Europe will not join in this. The United States, aided by all the Central and South
American silver-using countries, aided also by silver-using Asia, aided in the future
by Africa, which will call upon the world or a portion of its money in order to facilitate its exchanges, can easily restore silver to its old parity by courageous action.
There is no choice left to the United States. There is not enough gold in the world
for use as money. It will only increase the gold famine to reach out for more gold.
It will effectually impair the value of one-third of its currency if it does not adequately protect silver.
Mr. Newlands added by way of explanation to his answers to Mr. Williams and
Mr. Taylor, that the only countries from which it was feared silver would be precipitated upon us from the existing store of silver coin were European countries. He
stated that in those countries the ratio was 15£ to 1, and that the silver coin there in



its exchang3able value for products was $1.33 per ounce in gold, and that lience'there
would be no danger that the Europeans would put this silver coin in the melting-pot
and send it to America, where its coinage value would be only $1.29 per ounce. The
countries which were exclusively on a silver basis had, as a rule, no other money, except, perhaps, paper, and it was clear that their silver would not come to us. Hence the
only surplus silver which free coinage would have to lift up was about 3,000,000
ounces on the New York market. Free coinage would cause this to disappear and
would absorb the current product of the mines, and the result would be that no silver
in the world would bring less than $1.29 in gold.

February 9 , 1 8 9 2 .

The committee met at 10:30 o'clock.

Mr. RHONE said:
Mr. Chairman and gentlemen of the committee, I appear before you in behalf of the
legislation committee of the National Grange, an organization of farmers in this country that extends throughout every State and Territory in this Union. It is not often
that farmers appear before legislative bodies to advocate their claims. This is not
owing to a lack of patriotism, but it is on account of the peculiar situation that surrounds the farmer. It is true that they represent a great deal of wealth, but it is
divided up into small parcels and holdings, which makes it expensive for the farmers
to appear at the Capitol of our great nation and advocate their interests. With the
other interests of our country that have centralized wealth it is comparatively easy
for them to appear before you to advocate that which may be of special interest to
their industries.
The farmers are interested in this question of the free coinage of silver for two
reasons. First, becausc they believe that an increase in the volume of currency will
enhance the prices of their products in the markets of our own country. When
money is scarce, prices depreciate; when money is plentiful, prices advance j consequently, the farmer must be directly affected in this particular. Of course, they have
no silver or stocks to sell upon the market, but they have various products which
are affected in the markets of the world by the policy, not only of our country, but
that of other countries. The farmers are interested in this question in the first place
for the reason that since 1873, when silver was demonetized by the United States,
England immediately demonetized gold in India. Russia was always a silver standard nation. England in turn demonetized silver in England for the purpose of protecting her Indian possessions.
What is the effect to-day when the American farmer goes into the Liverpool or
London markets ? He may possibly realize $1.10 a bushel for his wheat. The Indian
or Russian farmer arriving in the London or Liverpool markets will realize $1.30 for
his wheat in silver; thus placing the Indian and Russian farmer in an advantageous
position in the foreign markets.
Now, for this reason the farmer asks you to restore silver to the position which it
-occupied prior to 1873, believing if the United States Government will do this that it
will go a great way toward advancing the price of silver to a parity with gold, and
thus placing the American farmer on an equality in the foreign markets of the world
with the silver-standard nations. From 1847 to 1860 silver was the dearer metal in
this country; in fact from 1872 to 1873
Mr. WILLIAMS, of Illinois. 1792.
Mr. RHONE. From 1 7 9 2 to 1873 silver was nearly always at a par with gold, and,
•consequently, we realized remunerative prices for our products in this country. The
price of wheat and cotton in this country is fixed by the prices we obtain in foreign
markets. Of course, this does not apply to products which we do not export. It
does and must apply to products that are exported, because the surplus which we
export must fix the price in this country.
I will read to you the resolution of the National Grange, which was not hastily
A d o p t e d , for this matter has been under consideration for the last ten years, a n d was
fully and fairly discussed on the floor of the National Grange. This was reported from
the committee on national finance:
"Whereas the National Grange does not believe that we now have sufficient currency in the nation for the legitimate purposes of trade, and to meet necessary obligations : Therefore, be it
" Besolved, That this National Grange declares and expresses its opinion in favor

of free and unlimited coinage of both silver and gold, just as it existed from almost
the foundation of the Government up to 1873, when silver was demonetized.
" 2 . That we believe that the Government alone should issue money, and that we
do demand that a sufficiency of legal-tender notes be issued."
That is, to meet the business requirements of the country. There is just one other
point upon which the National Grange has expressed itself, and that is on the legalstandard qualification of the currency of the United States. A farmer now finds
himself confronted by the money-lenders, who require that all his bonded or mortgage indebtedness shall be payable in gold. Owing to the depressed condition of
agriculture and the mortgaged condition of our farms, they are at the mercy of the
money-lender, and therefore appeal to you in the hope that the National Government
will take some action in protecting the legal-tender qualifications of the money issued
by the General Government, believing that it is as much treason to our country to
dishonor its currency as it is to dishonor the American flag.
The National Grange has passed the following resolutions upon this question:
Resolved, 1. It is right and just, both to the debtor and the creditor, that all legaltender money should stand upon equal footing in its capacity and power to pay debts.
"2. It is unjust and burdensome to permit any creditor to contract with his debtor
to compel hirn to pay in only one form of legal-tender money.
"3. It is the duty of all the States to give equal value and recognition to all the
forms of lawful money made legal tender by the United States, and the power to
contract to debase one form thereof is unpatriotic and practically nullifies the power
to coin money given by the Constitution exclusively to the General Government.
" S. L . WILSON, Chair man J
Now, as I said in the opening of my remarks, I do not come before you to argue in
detail the general questions involved, but to present to you the sentiments of the
farmers of this country, and of an organization whose membership is made up from
all political persuasions, and that is not partisan or political in character.
Our people are in earnest about this matter. If the farmers are wrong it is because
the markets of Liverpool and London have led them into that error. We believe if
silver is remonetized it will soon come up to a parity with gold, which will place us
on an equality with Russia and India.
I thank you very much for permission to appear before you, and trust that you will
give this matter such consideration as may be necessary and as the agricultural
interests in this country require.
Mr. TAYLOR. I would like to ask you a question. The grain that comes from India
is paid for in silver, is it not ?
M r . RHONE. Y e s , s i r .

Mr. TAYLOR. Could you not get the same amount of silver for your grain if you
would always take silver in money exchanges between England and the United
Mr. RHONE. If we take silver.
Mr. TAYLOR, If you take anything in silver, would you not get the same for it?
Mr. RHONE. If you have silver bullion come to this country, you would have to
sell it.
Mr. TAYLOR. Everything is measured in bullion in London. You can get just as
much silver for your grain as the Indian gets for his, can you not ?
M r . RHONE. Y e s , s i r .
Mr. TAYLOR. Well, then, what is the difference ?
Mr. MCKEIGHAN. Let me ask the gentleman a question.

If you bring your silver
home here, is it placed at a disadvantage by being dishonored here ?
Mr. RHONE. That is precisely the situation. We must sell the silver in order to
bring it back unon the market, and take what the market pays. If we sell our grain
in the Upited States market for a silver dollar, why the silver dollar is worth as
much as the gold dollar.
Mr TAYLOR. What makes it worth as much as the gold dollar ?
Mr. RHONE. Why, the stamp of the United States, I suppose.
Mr, TAYLOR. Is it not because it is redeemable in gold ?
Mr. RHONE. It is not redeemable in gold.
Mr. TAYLOR. Listen to me.
Mr. RHONE. It is redeemable in silver certificates.
Mr. TAYLOR. They are redeemable in gold too, are they not ?
Mr. RHONE. Not always.
Mr. TAYLOR. They are redeemable in gold.
Mr. WILLIAMS, of Illinois. How do you make a silver certificate redeemable in
gold ?
Mr. TAYLOR. A silver dollar is always redeemable in gold.
Mr. RHONE. They are redeemable in silver certificates.
T h e CHAIRMAN. YOU could n o t g e t a dollar in g o l d for it.



Mr. RHONE. YOU understand if an American farmer goes into the Liverpool
market he can get either silver or gold bullion for his wheat, but when he comes to
the American market he must sell that bullion.
Mr. TAYLOR. When he gets here he can sell his gold or silver.
Mr. BARTINE. He can get just as much silver bullion as the Indian can for his
wheat ?
Mr. RHONE. But it is not worth as much. When the Indian farmer goes home with
his silver bullion, that being the currency of that country, he can exchange it for
grain or coin.
Mr. TAYLOR. No j it is not so. When he goes back he can not buy any more grain
than he conld get here.
Mr. RHONE. That has been proved the other way, Mr. Taylor.
Mr. TAYLOR. I guess not.
Mr. RHONE. It is different when the Indian farmer goes home with his silver. He
can get it coined, and it is worth more to him than any other metal.
Mr, TAYLOR. Are you in favor then of putting this Government on the same basis
as India ?
Mr. RHONE. I should think if silver was coined here free it would go a great way
toward bringing it up to a parity with gold.
Mr. TAYLOR. That does not answer my question. Are you in favor of putting this
country on the same basis as India—on a silver basis ?
Mr. RHONE. Of course, if you go back to 1865, when we had an inflated currency,
and when a farmer realized in that currency $2 a bushel for his wheat, you will find
there has been no time in the history of this country when the farmers were so prosperous.
Mr. TAYLOR. Well, I did not ask you for a speech. I asked you a question that
you could answer. Are you in favor of putting this country on a silver basis, the
same as India ?
Mr. WILLIAMS (of Illinois). Do you mean on a silver basis or a gold and silver
basis ?
Mr. RHONE. On a gold and silver basis.
Mr. WILLIAMS (of Illinois). That is what I supposed.
Mr. RHONE. Put the metals on a parity with each other.
The CHAIRMAN, Free coinage of both.
Mr. TAYLOR. Mr. Newlands said yesterday that all silver coming to this country
from a foreign country would be purchased in silver, and not in gold, Do you agree
with him ?
Mr. RHONE. I would not like to answer Mr. Newlands' question.
Mr. TAYLOR. This is my question. Is that your position, that we would purchase
it with silver. That is, the bullion that comes here from a foreign country, we would
pay for it out of the Treasury in silver dollars, would we n o t !
Mr. RHONE. That would be entirely fair.
Mr. TAYLOR. YOU say it would be fair. Is that what you would do t Is that the
way it would operate.
Mr. RHONE. It would operate in this way: You could get either silver or gold
for it.
Mr. MCKEIGHAN. It seems to me there is a misapprehension. This gentleman is
asked if the Treasury would pay for it. There is no proposition under free coinage
for the Treasury to buy silver. v
Mr, TAYLOR. We will strike that out.
Mr. RHONE. When the American holder of gold bullion comes to the United States
mint he can get his bullion exchanged for gold dollars.
Mr. TAYLOR. Do you think there is gold enough this in country to buy all the
silver in the world ?
The CHAIRMAN. There is property and products enough.
Mr. TAYLOR. I asked Mr. Rhone the question ; not the chairman.
Mr. WILLIAMS, of Illinois. I think the cross-examination has gone entirely too far.
Mr. RHONE. I said at the beginning that I simply came here to appear before yon
gentlemen, and present the wishes o f the farmer in this matter.
Mr. TAYLOR. I understand what you came here for.
Mr. RHONE. So far as the details iu this matter are concerned, we must trust to the
patriotism and wisdom of the members of Congress to adjust it. If it is just to the
farmers, as well as to the bankers of this country, we shall be satisfied.
Mr. TAYLOR. I wanted to ask you whether it was to the advantage of the farmers.
That is what I want to ask. I wanted to find out whether there is gold enough in
this country to purchase all the silver that would come here—purchase it in gold.
Mr. RHONE. We would not necessarily need purchase it in gold.
Mr. TAYLOR. We would purchase it in silver?
M r . RHONE. Y e s .


it not be to our advantage to purchase it in silver t



Mr. RHONE. That depends. The United States Government now purchases $5,000,000
or more worth of silver bullion a month. Why, it is done under the direction of the
Mr. TAYLOR. Well, it is not all paid for in gold ?
M r . RHONE. Y e s , sir.
Mr. TAYLOR. Every dollar of it.
Mr. RHONE. It is not necessarily.
Mr. WILLIAMS, of Illinois. Mr. Taylor, you are assuming a good deal.
M r . TAYLOR. N o , I a m n o t .
Mr. RHONE. It is paid for in silver certificates.
Mr. TAYLOR. IS it paid for in gold. Is there a dollar of it ever paid for
Mr. WILLIAMS, of Illinois. It is paid for in silver certificates.
Mr. TAYLOR. I only wanted to know. Yon said you had two reasons.

in silver?

I was trying to get out of you one of your reasons. How are you going to increase the money
of this country hy a free-coinage act? That is what I have been trying to get you
around to, but I have not been able to as yet. I will ask you that question.
Mr. RHONE. We of course believe that. If the coinage of silver is made free, all
the silver bullion mined, which is not needed for the arts, will go into silver currency.
Mr. TAYLOR. Well, I suppose you know
Mr. RHONE. And into the vaults of the United States Treasury and coin certificates
issued upon it.
Mr. TAYLOR. I suppose you know that nearly all that has been mined now has
been, and silver certificates issued upon it.
Mr. RHONE. I think the market reports are correct, for immediately after the passage of the late silver act the charge was made that the claims of the silver men
had not been met by the Government. There is some silver now, even, that the Government could buy.
Mr. TAYLOR. Yes; but I mean the product of this country. It has all been going
into silver certificates.
Mr. RHONE. Not necessarily so.
Mr. TAYLOR. NOW, SO it is all to go into silver certificates ?
Mr. RHONE. Of course, that is a question that you people must determine.
Mr. TAYLOR. Yes; but, my dear sir, will you not determine this question for yourself!
Mr. RHONE. We determine in this way. In the first place
Mr. TAYLOR. IS it going to give you any more currency t
Mr. RHONE. That is what we think it will do.
Mr. TAYLOR. YOU ought to agree on that and see what it is going to do.
Mr. RHONE. Besides, the experience of this Government, I think, has shown that
this would be made the dumping ground for silver. Of course, it will increase the
volume of currency.
Mr. TAYLOR. Undoubtedly. If you take away our gold, would that benefit usf
Mr. RHONE. It was predicted when we commenced coining silver, gold would flow
to foreign countries, but we have not realized that during the last six years. I think
the gold currency has been increased over $300,000,000.
Mr. WILLIAMS, of Massachusetts. It is equally true that those interested in silver,
just as confidently predicted that silver would go to $1.29 an ounce?
Mr. WILLIAMS, of Illinois. Not under the laws that have been passed. The enemies
of free coinage did predict last year that such would be the case.

Mr. MERRICK said:
exordium. It has seemed necessary that some clean cut definitions should be put
upon the record of this committee. There has been evidently here a disposition to
treat the free and unlimited coinage of silver as a sale of all the silver bullion that
might be offered to the mints, and as a purchase of it by the Government of the
United States, or by the Treasury Department of the United States, paying in gold.
Now, there are three propositions in relation to legislation upon the coinage question in this country—free coinage, unlimited coinage, and gratuitou coinage. Free
coinage maybe defined as follows: That every citizen has the right to take his bullion
to the mint, within a limited quantity, and have that bullion converted into pieces or
coin for his use and benefit. Unlimited coinage comprises free coinage, and the tender of all bullion which anyone may acquire through the medium of his industry or
through the medium of commerce, without regard to its origin, and have it converted
into coins or pieces for his use and benefit, and in these propositions the ownership of



the metal is in the man who deposits it and not in the Government in any sense, nor
iB it in any sense a purchase or sale of anything.
Gratuitous coinage does not include the metallurgical processes by which impure
bullion is refined, parted, and prepared for the mint, nor is that a question at issue
or under discussion at all. We have eminent authority for the statement that it is
claimed that free and unlimited coinage is a purchase by the Government. It was
said by Senator Sherman on March 13th, last, in a speech upon a free coinage bill:
" Should such a measure go into effect it would be notice to all the world that the
United States will pay $1.29 for every ounce of silver bullion which may be offered
to it from any part of the world."
Further on he says:
" The United States is bound to purchase all the bullion that is offered it at the
price of $1.29, but has no option as to the mode of payment, for the option is in the
hands and in the power of the owners of the bullion."
To offset that I will refer to the U. S. Treasurers Report, on page 25, where he says
in relation to gold :
" Gold coins are manufactured at the mint out of bullion brought by a private citizen, who receives back weight for weight and value for value. They charge for the
work done, and to all intents and purposes the gold remains throughout the operation what it was at first, the private property of the owner."
We say that the necessities of the situation demand the free and unlimited coinage
of silver, and it is only necessary to refer to what Mr. Leech said to this committee
to substantiate that claim. He emphasizes the necessity by referring to the fact
that money was borrowed upon call in the city of New York at 2 per cent. If true,
that is the only kind of evidence this committee and this Congress need to justify
them in at once passing a free and unlimited silver coinage bill. What does that
single fact mean? It means shrinking prices; it means crippled industries; it
means panic and financial crises if it is not remedied;
Upon the monetary conference question, I wish to say that it is a scheme for delay.
and delay only. We have not any time to go into it.
Mr. Taylor. That is 2 per cent a year.
Mr. MERRICK. I understand. Two per cent a year; not 2 per cent a month.
The CHAIRMAN. That is on call.
Mr. MERRICK. No business can be conducted on that.
Mr. TAYLOR. I understand that.
Mr. MERRICK. Upon that question (international conference), the remarks of Mr.
Charles Sumner upon a proposition to make all United States bonds payable in
London, Paris, Amsterdam, and Berlin in pounds, francs, and thalers, are peculiarly
appropriate. He said:
" I can not forget my own country, nor can I forget that great primacy which I
hope to see her assume in the money markets of the world. Why should we revolve about European money centers ? Let us keep our owr center here at home."
This is good advice for this committee and this Congress. There is one other bit
of advice to which I want to refer.
We had a President once who is credited with a vast amount of patriotism and a
large degree of worldly wisdom. He is popularly spoken of as the father of his
country, and in his last message, his farewell address, he advises strongly against
''entangling European alliances;" and if you gentlemen can devise any more disastrous or dangerous entangling European alliances than it would be to hang the
financial policy of the Government of the United States as a bob to the tail of European monetary kites, I want you to find it. With that, gentlemen, I am done, and I
am within my five minutes. [Applause.]
Mr. TAYLOR. YOU are the first free-coinage man whom I ever Baw that kept within
the time.