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Bimetallism

SPEECH
OT

HON. A. M. D O C K E R Y ,
OP M I S S O U R I ,

IN THE HOUSE OF REPRESENTATIVES,
Friday, August 25,1893.

The House having tinder consideration the t i l l (H. R. 1) to repeal a part of
an act, approved July 14, 1890, entitled "An act directing the purchase of
silver bullion and the Issue of Treasury notes thereon, and for other purposes"—

Mr. DOCKERY said:
Mr. SPEAKER: For the twelfth time in the history of the Republic, Congress is convened in extraordinary session. The President in his message has adverted to the alarming* gravity of the
business situation. The untoward depression which first made
its appearance some months since has enlarged its scope untih
it has embraced within its grasp agriculture, commerce, manufactures—indeed, all the varied interests of this great country.
Confidence is utterly overthrown. Banking institutions of great
stability are suspending, capital, timid and hesitating, has gone
into retirement; manufactories are closing down or running upon
half time, railroads reducing the compensation of their employes,
and thousands of laboring men out of employment tramping the
country.
Confronted with this startling condition, the people's representatives have been called together, to quote the language of
the Executive, " that present evils mny be mitigated and dangers threatening the future may be averted." The President
expresses the opinion that these adverse business conditions are
" principally chargeable to Congressional legislation touching
the purchase and coinage of silver by the Government," as au?
thonzed and directed by the act of July 14, 1890, commonly
known as the Sherman act.
The situation is so alarming that it should invoke dispassionate, intelligent, and patriotic consideration, with the view of determining the causes which have contributed to the stupendous
decline in values and the consequent widespread industrial par145




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alysis. The causes of the trouble must first be definitely ascertained before there can be an intelligent selection and application of % remedy. Inasmuch as the President suggests that the
pernicious features of the Sherman law are mainly responsible
ior the economic ailments which afflict us, it may be well to give
a brief summary of the coinage legislation of the United States*
COINAGE LAWS.

The act of April 2,1792, established a mint for the purpose of
national coinage, and made the standard silver dollar the unit of
value* It gave free coinage to both gold and silver, the gold dollar containing 24.748 grains of pure gold or 27 grains of standard
gold, and the silver dollar 371.25 grains of pure silver or 416
g rains of standard silver. The act further provided that the relative value of gold and silver in the coinage of the two metals
should be as 15 to 1; that is to say, "every 15 pounds weight of
pure silver shall be of equal value in all payments with 1 pound
weight of pure gold, and so in proportion as to any greater or less
quantities of the respective metals."
Under this act silver was first coined in 1794 and gold in 1795.
The ratio between the two metals established by the acts of 1792
proved to*be unsatisfactory, an ounce of gold being in fact more
valuable than its equivalent in silver. The result was that gold
was purchased by speculators and shipped abroad, there being a
profit of a fewfc cents on the dollar. The inequality of the ratio
was further emphasized by the fact that the Government received for a time underweight foreign coins in payment of custom dues. Silver, therefore, constituted the greater part of our
metallic circulating medium until the second administration of
President Jackson, when, by the act of June 28,1834, the grains
in the gold dollar were reduced from 24.748 to 23.20, the ratio
thus b3ing changed from 15 to 1 to 16.002 to 1.
The act of January 18,1837, provided that both the gold and
silver dollar should be 900 parts fine and 100 parts alloy, and increased the grains of pure gold in the gold dollar from 23.20 to
23.22, or 25.8 standard gold—the silver dollar containing 371.25
grains of pure silver, or 412£ grains of standard silver. The
coinage ratio between gold and silver is thus fixed by this act
at 1 to 15.988, or in round numbers 16 to 1. This ratio has been
maintained until the present time. During the greater part of
the period from 1834 to 1860 gold constituted the larger part of
our metallic circulation because France was coining at the ratio
of 15} to 1, our ratio being 16 to 1, and for the further reason,
subsequent to 1849, of the immense output of the California gold
mines.
I may also state in this connection that the amount of pure silver in the standard silver dollar authorized by the aot of April
2,1792, has not been changed by anv subsequent legislation, but,
because of the enhanced value of silver as compared with gold,
the act of February 21,1853, reduced the weight of the silver
coins of less denominations than a dollar; the weight of the halfdollar being fixed at 192 grains of standard silver, and the smaller
coins sharing a proportional reduction.
This legislation was made necessary in order to prevent the
further exportation of our subsidiary coin, and thus to furnish
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the people with small change for the transaction of business.
The act also limited the legal-tender quality of subsidiary coin
to $5.
The coinage act of February 12,1873, demonetized the standard
silver dollar by discontinuing its coinage and establishing the
gold dollar as the unit of value. It also slightly increased the
weight of the subsidiary coins in order to put them upon an
equal footing with the minor coins of France.
This law was the initial step of the hostile movement to silver
in this country, and was obnoxious to the great body of the
American people. This fact, together with the stealthy manner
of its enactment, provoked a storm of opposition, which finally
culminated in a partial remonetization of silver by the passage,
over the veto of President Hayes, of the act of February 28,1878,
known as the Bland-Allison act. This bill directed, among other
things, that the Secretary of the Treasury k< purchase from time
to time silver bullion at the market price thereof, not less than
$2,000,000 worth per month, nor more than $4,000,000 worth per
month, and cause the same to be coined monthly us fast as so purchased " into standard silver dollars.
The Bland-Allison act remained upon the statute book until
the Fifty-first Congress, when it was repealed by the Sherman
law of July 14, 1890. This latter statute was enacted as a result
of a conference between the Senate and the House, the vote in
the Senate being yeas 39, nays 26, and in the House yeas 122,
and nays 90. The Republican party gave the measure a united
support, whilst the entire Democratic strength in both bodies
was recorded against it. In so far, then, as legislation is responsible for our financial condition, the Democratic party is acquitted of responsibility.
In view of the importance of tho issue raised by the President's
message, I quote the exact terms of the act, so far as it relates
to the pending question:
SHX&MAN AOZ.
A n act directing t h e purchase of silver bullion a n d t h e issue of T r e a s u r y
n o t e s thereon, a n d for o t h e r purposes.
Be it enacted, etc.. T h a t t h e Secretary of t h e T r e a s u r y is hereby directed t o
purchase, f r o m t i m e t o time, silver bullion t o t h e aggregate a m o u n t of 4,5(0,000 ounces, or so m u c h thereof a s m a y be offered i n each m o n t h , a t t h e m a r k e t price thereof, n o t exceeding $1 f o r 371.25 g r a i n s of p u r e silver, a n d to iss u e in p a y m e n t f o r s u c h purchases of silver bullion T r e a s u r y n o t e s of t h e
United S t a t e s t o be prepared by t h e S e c r e t a r y of the Treasury, in such f o r m
a n d of such denominations, n o t less t h a n $1 n o r m o r e t h a n $1,000, a s h e m a y
prescribe, and a s u m sufficient t o c a r r y i n t o effect t h e provisions of this act
i s hereby a p p r o p r i a t e d o u t of a n y m o n e y in t h e T r e a s u r y n o t o t h e r w i s e appropriated.
SEC. 2. T h a t t h e T r e a s u r y n o t e s issued In accordance w i t h t h e provisions
of t h i s act shall be redeemable o n d e m a n d , in coin, a t t h e T r e a s u r y of t h e
U n i t e d States, o r a t t h e office; of a n y a s s i s t a n t t r e a s u r e r of t h e United
States, a n d w h e n so redeemed m a y be reissued; b u t n o g r e a t e r or less
a m o u n t of s u c h n o t e s shall be o u t s t a n d i n g a t a n y t i m e t h a n t h e cost
of t h e silver bullion a n d t h e s t a n d a r d silver dollars c o i n e i t h e r e f r o m , t h e n
held i n t h e T r e a s u r y , purchased b y such n o t e s ; a n d s u c h T r e a s u r y notes
s h a l l be a legal t e n d e r i n p a y m e n t of all debts, public and private, except
w h e r e otherwise expressly stipulated In t n e contract, and shall be receivable
f o r customs, taxes, a n d all public dues, and w h e n so received m a y be re*
issued; a n d such notes, when held by a n y n a t i o n a l b a n k i n g association,
m a y be counted a s a p a r t of i t s l a w f u l reserve. T h a t u p o n d e m a n d of t h e
holder of a n y of t h e T r e a s u r y notes herein provided f o r t h e S e c r e t a r y of t h e
T r e a s u r y shall, u n d e r such regulations a s he m a y prescribe, redeem such
n o t e s i n gold o r silver coin, a t his discretion, i t being t h e established
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policy of the United States to maintain the two metals on a parity with
each other npon the present legal ratio, or such ratio as may be provided by
law.
SEC. 3. T h a t the Secretary of the Treasury shall each month coin 2.000,000
ounces of the silver bullion purchased under the provisions of this act into
standard silver dollars until the 1st day of July, 1891, and after that time he
shall coin of the silver bullion purchased under the provisions of this act as
m u c h as may be necessary to provide for the redemption of the Treasury
notes herein provided for, ana any gain or seigniorage arising from such
coinage shall be accounted for and paid into the Treasury.
SEC. 4. T h a t the silver bullion purchased under the provisions of this act
shall be subject to the requirements of existing law and the regulations of
the mint service governing the methods of determining the amount of pure
silver contained, and the amount of charges or deductions, If any, to be
made.
SEO. 5. T h a t so much of the act of February 28, 1878, entitled "An act to
anthorize the coinage of ,the standard silver dollar and to restore its legaltender character," as requires the monthly purchase and coinage of the same
Into silver dollars oC not less than 82,000,003, n o r more than 84,000,000 worth
of silver bullion is hereby repealed.

Mr. Speaker, this measure, in letter and spirit, is antagonistic
to the real interests of silver, because it degrades it to the inferior
dignity of a mere commodity, thus recognizing for the first time
in our fiscal legislation, the vicious principle involved in what is
known as the " subtreasury " scheme. The measure was a compromise born of the political exigencies of the Republican party,
and accomplished the twofold purpose of preventing the enactment of a free-coinage law whilst at the same time relieving the
then President, Mr. Harrison (a candidate for renomination),
from disastrous political complications which it was apprehended
would, in certain Western States, follow the veto of a free-coinage bill.
Mr. Speaker, it is hardly gallant or courageous to designate
the Sherman law as the most vicious and sinister financial legislation enacted during our constitutional history, since it is now
disowned and denounced by its reputed author and is without an
advocate in the commercial world or a champion in any political party. Professedly enacted for the purpose of furnishing a
market for American silver and enhancing its value, under its
operations silver has steadily declined; professedly friendly to
silver, it debases it as a money metal. The Sherman law was
therefore properly characterized'by the national Democratic
platform as a "cowardly makeshift, fraught with possibilities of
danger in the future, which should make all its Supporters as
well as its author anxious for its speedy repeal."
COINAGE OF THE UNITED STATES.

But before proceeding, Mr .^Speaker, to a further brief reference to the existing situation, it may be well to note the
coinage which has been had under the several acts to which I
have referred. The United States has now four coinage mints,
located at Philadelphia, San Francisco, New Orleans, and Carson, Nev. The coinage of silver dollars from the organization of the first coinage mint at Philadelphia until the suspension by the act of February 12,1873, was $8,031,238, the total
subsidiary coinage for the same period being $137,096,047.
Of the standard silver dollars coined during this period, $3,584,198, or about 45 per cent of the whole, were coined in the five
years prior to the demonetization of silver, the coinage being in
1868, $182,700; 1869, $424,300; 1870, $445,462; 1871, $1,117,136;
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1872, $1,118,600, and in 1873, $296,000 up to the 12th of February.
It is proper, however, to state in this connection that the Mexican dollar, containing 377.17 grains of pure silver, as well as the
dollars of Peru, Chili, and Central America, the 5-franc piece
of France, and other foreign coins were a legal tender in the
United States at their face value during a greater part of the
period prior to the pass ige in 1873 of the act demonetizing silver.
The coinage of silver dollars under the BlaTnd act amounted to
$378,166,793 and under the Sherman act to $36,087,185; whilst
$5,078,472 have been coined under the act of March 3, 1891. providing for the redemption and coinage of trade-dollar bullion.
The subsidiary coinage sinca the act of Febuary 12,1873, aggregates $69,503,655. The statement of the Secretary of the Treasury issued upon the 1st of the present month shows that the
standard silver dollars outstanding at that date amounted to
$419,332,450 and the subsidiary silver coinage to $76,563,878, or
a total silver coinage of $195,896,328. In addition to this the
records of the Treasury Department show that under the act of
July 14, 1890, 161,521,003 ounces of silver have been purchased
up to August 16 last, costing $150,669,459, for which Treasury
notes of the same amount have been issued payable in coin.
The total gold and gold bullion in the United SUte3 on the
1st of the present month is estimated by the Director of the
Mint at $603,723,903. T i n Director also estimates the amount
of silver, including sil ve r d ollars, subsidiary silver coins and silver
bullion at cost value, in the United States at the same time, at
$615,174,063. He further state3 that th9 production of gold in the
world in 1892 was of the value of $130,816,600, the production of
silver for the same period being 152,0^1,800 fine ounces, of the
coining value of $196,605,203. He also estimates the annual
average production of gold and silver in the world from 1844 to
1850 to be, gold, $36,216,428, and silver, $34,214,236, whilst the
average annual production since that time has been, gold, $112,887.428 and silver $80,374,857.
CAUSES OF THE PANIC.

Now; Mr. Speaker, leaving the domain of statistics I shall advert very briefly to the causes which have intimidated capital,
paralyzed industry, lowered the price of farm products, and
wrought havoc in the commercial world. It will not be denied
.that the Sherman law is at war with all principles of sound
finance and has operated to enhance the value of gold and decrease the value of silver. The original construction placed
upon the law by the last Administration, whilst technically correct, refused silver a place in our circulating medium upon an
equal footing with gold. It is true that the Secretary of the
Treasury is allowed to coin a sufficient amount of silver bullion
for redemption purposes, but under the practice of the Treasury
Department the nates is3ued in payment of the silver bullion
are redeemable on demand in gold.
The effect of the law, therefore, in its practical administration,
is to issue Treasury notes piyable in gold for silver bullion. In
other words, the Shermm law has added, up to August 16,
$150,669,459 to the volume of p ipar currency, all of which i s
payable on demand in gold. I am not surprised, therefore, that
under this construction gold should constitute a very small part
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of the volume of money which finds its way into the Federal
Treasury. The able gentleman from Tennessee [Mr. PATTER^
SON], commenting upon the decreasing volume of gold in the
Treasury, says:
I n June, 1888, the Government collected f r o m customs a t the port of New
York 810,996,484,74 per cent of which was paid in gold. In June, 1889, it received $10,697,716, of which 74.7 per cent was paid in gold. I n June, 1890, t h e
Government received $14,992,128, of which94.50per cent was in gold. I n June,
1831, it received $9,131,418, of which only 12.50 per cent was in gold. In June,
1892, it received $9,591,270, of which only 8.2 per cent was in gold. In 1893, in
the month of June, the Government collected a t the port of New York $18,068,530. Not one cent of i t was paid in gold.

Mr. Speaker, the gold in the Treasury has not only been thus
decreased by the operation of the Sherman law, but the adverse
balance of foreign trade under the McKinley tariff law has made
large drafts upon our gold resources. The exports of gold for the
fiscal year ending June 30,1893,exceeded the imports for the same
period by about $37,500,000. These two causes, associated with
the necessities of Austria-Hungary for gold to inaugurate and
maintain a gold standard, together with the general depression
which has encircled the globe since the failure of the Baring
Brothers, have nacessarily reduced the gold in the public Treasury very largely. With the steady decline of the Treasury gold
balance, the apprehensions of the people began to grow more
pronounced. It seemed to be an impression in the public mind
that the $100,000,000 gold reserve had been provided by law, and
should remain intact for the redemption of greenbacks.
It is true the law did not require the fund to ba maintained at
this amount, but nevertheless such an impression was prevalent
among the people. When, therefore, in April last, this fund
was invaded, Wall street speculators sought to coerce the Government into an issue of bonds to restore and increase the goldreserve fund. The alarm occasioned by their demands intimidated the country, confidence began to be impaired, timid depositors withdrew their money from banks, and thus a panic
without parallel or precedent in this country was inaugurated.
REMEDIAL LEGISLATION.

Confronted with this situation, Congress is convened for the
purpose of providing remedial legislation which shall restore
confidence and set the wheels of commerce again in motion.
The distinguished gentleman from West Virginia [Mr. WiL-1
SON], upon the 11th of the present month, offered the following
bill:
An act to repeal a p a r t of an act, approved July 14,1890, entitled "An act directing the purchase of silver bullion and the issue of Treasury notes
thereon, and for other purposes."
Be it enacted, etc., That so much of the act approved July 14, 1890, entitled
"An act directing the purchase of silver bullion and issue of Treasury notes
thereon, and for other purposes," as ditects the Secretary of the Treasury
to purchase f r o m time to time silver bullion to the aggregate amount of
4,500,000 ounces, or so much thereof as may be offered in each month, a t the
market price thereof, not exceeding $1 for 371.25 grains of pure silver, and
to issue in payment for such purchases Treasury notes of the United States,
be, and the same is hereby, repealed; but this repeal shall not impair or in
any manner affect the legal-tender quality of the standard silver dollars
heretofore coined; and the faith and credit of the United States are hereby
pledged to maintain the parity of the standard gold and silver coins of t h »
u n i t e d States a t t h e present legal ratio, or such other ratio as may be established by law.

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This bill, Mr. Speaker, as will be noted from a cursory glance,
provides simply for the unconditional repeal of the purchasing
clause of the Sherman act, and pledges the faith of the United
States to maintain the parity of tjie gold and silver coins outstanding.
My colleague from Missouri [Mr. BLAND] offered the following
resolutions, which provide the method by which the Wilson
bill should be considered, and also for a vote upon certain substitutes therefor. The order is in these terms:
Mr. BLAND. Mr. Speaker, I desire to present t o t h e House a n order embodying a n a g r e e m e n t as t o the m o d e in which proceedings shall be had in
t h e consideration of the bill j u s t offered, on which order I shall demand the
p r e v i o u s question, w i t h the statement——
T h e SPEAKER. T h e Chair will s t a t e t h e question. T h e gentleman f r o m
W e s t Virginia [Mr. WILSON] offers a bill in t h e absence of a n y r u l e s of t h e
House, a n d t h e g e n t l e m a n f r o m Missouri [Mr. BLAND] offers a resolution
providing f o r t h e m e t h o d in which the Hotise shall consider t h a t bill. T h e
Clerk will r e p o r t t h e resolution of t h e g e n t l e m a n f r o m Missouri.
The resolution w a s read, as follows:
" Ordered by the House, T h a t H. R. No. 1 shall be t a k e n u p f o r i m m e d i a t e
consideration a n d considered for f o u r t e e n days. D u r i n g such consideration
n i g h t sessions m a y be held, f o r debate only, a t t h e r e q u e s t of either side.
T h e dally sessions t o commence a t 11 a. m . a n d continue u n t i l 5 p. m . Eleven
d a y s of the debate o n t h e bill t o be given to g e n e r a l debate u n d e r the r u l e s
of t h e last House r e g u l a t i n g general debate, the t i m e t o be equally divided
between the t w o sides as the Speaker m a y determine. T h e last t h r e e d a y s
of t h e debate m a y be devoted t o t h e consideration of t h e bill a n d the amendm e n t s herein provided for, u n d e r t h e u s u a l five-minute r u l e of the House,
a s m Committee of t h e Whole House. General leave t o p r i n t is hereby
granted.
" O r d e r of a m e n d m e n t s : The vote shall be t a k e n first o n a n a m e n d m e n t
providing f o r t h e f r e e coinage of silver a t t h e p r e s e n t ratio. If t h a t fails,
t h e n a s e p a r a t e vote t o be had o n a similar a m e n d m e n t proposing a r a t i o of
17 t o 1; if t h a t fails, on one proposing a r a t i o of 18 t o 1; if t h a t fails, on one
proposing a r a t i o of 19 t o 1; if t h a t fails, o n one proposing a r a t i o of 20 t o 1.
If t h e above a m e n d m e n t s fail, i t shall be i n order t o offer a n a m e n d m e n t reviving the act of t h e 38th of F e b r u a r y , 1878, r e s t o r i n g t h e s t a n d a r d silver
dollar, commonly k n o w n a s the Bland-Allison a c t ; t h e vote t h e n t o b e t a k e n
o n t h e e n g r o s s m e n t a n d t h i r d r e a d i n g of t h e bill a s amended, or o n t h e bill
Itself if all a m e n d m e n t s shall have been voted down, a n d o n t h e final passage of the bill w i t h o u t other intervening m o t i o n s . "

It may be* well to state in this connection that the Director of
the Mint has submitted a statement to > the House showing the
number of grains of standard silver in the dollar at the ratios
referred to in the foregoing order, as follows: 17 to 1, 438.60;
18 to 1, 464.40; 19 to 1, 490.20, and 20 to 1, 516.
Now, Mr. Speaker, as I have just stated, the Wilson bill pro*
vides for the unconditional repeal of the purchasing clause of the
Sherman act. The propositions to be submitted by my colleague
provide for the free coinage of silver upon ratios ranging from
16 to 1 up to 20 to 1. In the event of the failure of each and all
of them, then the Bland-Allison act is to be offered as a substitute. In other words, the Wilson bill repeals the purchasing
clause of the Sherman law without any substitute, whilst the
propositions to be offered by my colleague also repeal the purchasing clause of tho Sherman law, but with conditions author*
izing the free coinage of silver upon one of several ratios, or the
coinage of silver upon the terms of the Bland-Allison act.
BATTLE o r THE STANDARDS.

Mr. Speaker, the issue is thus clearly joined. The unconditional repeal of the Sherman act leaves silver for the future
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without any statutory recognition whatever, gold still being allowed free coinage privileges at the mint. This action unquestionably contemplates a single gold standard. If there were any
doubts, they have been put beyond cavil in this debite by the
declaration of leading advocates of the Wilson bill that it was
impracticable to execute the provisions of the last national
Democratic platform demanding the coinage of both gold and
silver without discrimination.
This is a battle of the standards, a contast between a single
gold standard on the one hand and a double standard on the other.
There is no division of sentiment in the Democratic ranks as to
the propriety of repealing the purchasing clause of the Sherman
act, but a majority of the Democratic Representatives on this
floor insist that the entire pledge made to the people should be
kept, both as to the repeal oi the Sherman law and the enactment of such legislation as'will admit gold and silver to our
mints upon equal terms. Our contention is that the platform in
its entirety should be maintained, and that we should not defer
to a more convenient season the obligations of the present hour.
J quote the language of the vows made at Chicago in 1892:
W e denounce the Republican legislation known as the S&erman act of 1890
as a cowardly m a k e s h i f t f r a u g h t with possibilities of danger in the future
which should m a k e all of its supporters, as well as its author, anxious for
its speedy repeal. We hold to the use of both gold and silver as the standard money of the country, and to the coinage of both gold and silver without discriminating against either metal or charge for mintage l but the dollar
unit of coinage of both metals must be of equal intrinsic and exchangeable
value or be adjusted through international agreement or by such safeguards
of legislation as shall insure the maintenance of the parity of the two metals,
and the equal power of every dollar at all times In the m a r k ts and i n the
payment of debts; and we demand t h a t all paper currency shall be kept a t
p a r with and redeemable in such coin. We insist upon this policy as especially necessary for the protection of farmers and laboring classes, the first
and most defenseless victims of unstable money and a fluctuating currency.

Mr. Speaker, the language of the platform clearly, rightfully,
and unequivocally commits the Democratic party to the advocacy of a double standard. This doctrine is fundamental and
of paramount importance, inasmuch as money performs the twofold duty of measuring values and exchanging values. It is a
medium of exchange and a measure of value. When, therefore,
the currency of the country is sound and stable and the volume
of money is maintained at a normal standard, prices rule satisfactory; but whenever legislation or any other cause limits the
money supply it necessarily operates to decrease the price of commodities. In other words, it is important that the money selected to fix values and to exchange values should be stable, and
of sufficient volume; else the standard will appreciate, prices of
commodities and property of all kinds will depreciate, and injustice will be done the debtor classes. It is alike and equally important, Mr. Speaker, that the money selected should not be
depreciated or redundant; else the cheapening of the standard
will increase the prices of commodities and prop arty, and work
injustice to the creditor classes. We must avoid the extremes
of contraction on the one hand and inflation on the other—the extr
eciation.
twilight of history gold and
silver have been recognised as money metals. Now, then, the
practical question wnich confronts us to-day and which this
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Congress must solve, is this: What standard will best recon*
cile the conflicting interests of the debtor and creditor classes,
preserve the golden mean, and thus give the country a stable
circulating medium, of ample volume to meet the demands of
trade and commerce?
The eloquent gentleman from Nebraska [Mr. BRYAN], in his
able argument submitted to this body a few days since, said:
The Government does n o t t r y t o fix t h e p u r c h a s i n g pdwer of t h e dollar,
either gold or silver. I t simply says, i n t h e l a n g u a g e ot T h o m a s Jefferson,
t h a t ' t h e money u n i t shall s t a n d u p o n t h e t w o metals,' a n d t h e n allows t h e
exchange value of t h a t u n i t t o rise o r fall according a s t h e t o t a l product of
both m e t a l s decreases o r increases i n proportion t o the d e m a n d f o r money.

Commenting further upon the same line of thought, he says:
Gold and silver a r e called precious m e t a l s because t h e p r o d u c t i o n is limited a n d can n o t be increased indefinitely a t will. If this Government or a
n u m b e r of g o v e r n m e n t s can offer a m a r k e t u n l i m i t e d a s compared with t h e
supply, it can m a i n t a i n t h e bullion value of gold and silver a t the legal
ratio. T h e m o m e n t one m e t a l tends to cheapen, t h e use falls o n it and Increases i t s price, while t h e decreased demand f o r the d e a r e r m e t a l r e t a r d s
i t s r i s e a n d t h u s t h e bullion values a r e k e p t n e a r t o the legal r a t i o , so n e a r
t h a t t h e v a r i a t i o n can cause f a r less inconvenience and i n j u s t i c e t h a n t h e
v a r i a t i o n i n t h e exchangeable value of t h e u n i t would inflict u n d e r a single
s t a n d a r d . The option Is always given t o t h e debtor in a double s t a n d a r d .
I n fact, t h e s y s t e m could n o t exist if t h e option r e m a i n e d w i t h the creditor, f o r he would demand the dearer m e t a l a n d t h u s Increase a n y fluctuat i o n i n bullion values, while t h e option i n t h e h a n d s of t h e debtor reduces
t h e fluctuation t o t h e m i n i m u m . T h a t t h e u n i t u n d e r a double s t a n d a r d is
m o r e stable i n i t s r e l a t i o n t o all o t h e r t h i n g s Is a d m i t t e d by J e v o n s a n d ,
p r o v e n by several illustrations. Mr. Giffen t r i e s t o avoid t h e force of t h e
admission by s a y i n g t h a t t h e difference i n f a v o r of t h e donble s t a n d a r d is
only In t h e p r o p o r t i o n of 2 t o 1, a n d t h e r e f o r e n o t sufficient t o j u s t i f y I t s
adoption. I t would seem t h a t w h e r e stability i s so important—and i t n e v e r
w a s so i m p o r t a n t a s to-day, when so m a n y long-time c o n t r a c t s are executed—even a s l i g h t difference i n f a v o r of t h e double s t a n d a r d o u g h t t o make
It acceptable.
EFFECTS o r J SINGLE STANDABD.
L

Mr. Speaker, a single gold standard increases the demand for
The increased demand therefor enhances^its value, as is shown
by the result of the action of foreign countries in demonetizing
silver. If, then, the United States, by the legislation now pending, shall devolve upon gold alone the sole duty of measuring and
exchanging values,It will necessarily still further appreciate its
value by increasing the demand for it.
The result logically follows that the United States and other
single gold standard countries will be ceaselessly engaged in the
effort to increase their gold reserves in order to maintain a gold
standard, and thus disasters will multiply and follow in the
wake of the unconditional repeal of the purchasing clause of the
Sherman act. If the annual production of gold was ample to
meet the requirements of a single gold standard, its adoption
would not, of course, be followed by industrial disaster; but the
annual supply of gold is utterly inadequate to meet the wants of
the civilized governments of the world as a money metal.
The average annual production of gold since 1851 has been only
$112,887,428, of which amount two-thirds has been used in the arts,
leaving but one-third to be added to the volume of gold money.
The conclusion must, therefore, be reached that the adoption of
a single gold standard by the United States will result in a lower
wage for labor, the depreciation of farm values, farm products,
145




10
and property of nearly all kinds, even if our population should
remain as at present and there were no expansion in the volume
of trade and commerce.
That industrial disturbances would follow the adoption of such
a policy becomes more apparent when it is remembered that the
average annual increase of our population ranges from 1,000,000
to 1,500,000, and that the enterprise and tireless energy of our
people are constantly exploring and discovering new fields for
the investment of capital and the employment of labor. The
addition to the volume of our circulating medium under the provisions of the Sherman law has been $150,669,459, or about
$50,000,000 annually, being less than $1 per capita; and yet it is
Sroposed by the Wilson bill to strike down the law authorizing
tils annual increase without offering any substitute therefor.
This proposition evidently rests upon the theory that silver is
constantly depreciating in value, but it wholly disregards the
rugged fact that, during the panic through which we are passing, silver dollars have commanded a premium in the city of
New York. It will not be denied that silver has declined in
value, or rather that gold has appreciated in value, thus making
the disparity between the two metals pronounced.
The overproduction of silver is the explanation most frequently offered for the relative decline of silver as compared
with gold. I append to my remarks an exhibit prepared by the
Director of the Mint, showing the production of gold and silver
in the world since the discovery of America, from which it appears that while silver in recent years has outstripped gold in
the volume of production, yet the same inequality in the production of the two metals has heretofore obtained without disturbing
the harmonious relations which existed between them as money
metals.
Senator VEST, commenting upon this table in its relation to
overproduction, says:
This table shows t h a t the two precious metals have fluctuated, as they necessarily must, in all ages of the world; first silver being produced in excess
of gold and then gold in excess of silver. How is it possible t h a t it could be
otherwise? W h a t intelligent m a n for a moment could advance the idea t h a t
two metals dependent upon the quantity discovered in the bowels of the
e a r t h should be mathematically or logically equal a t all times in quantity
o r ratio?
F o r m a n y years, a s shown by this table, gold w a s produced i n t h e most
insignificant amounts, while silver was produced twenty, thirty, and thirty*
two times in excess annually of the production of gold; yet the price of silver was n o t affected and it maintained its place as a money metaL
I n order to show t h a t m y statement is absolutely correct, I have taken the
trouble to m a k e a calculation, based upon the Soetbeer table. F r o m 1833 to
1840 there was produced thirty-two times a s much silver as goldin the world;
f r o m 1841 to 1850, fifteen times as much; f r o m 1851 to 1855, five times as much;
f r o m 1855 t o 1860, four times as much; from 1861 to 1865, six times as much;
f r o m 1866 t o 1871, three times as much; from 1871 to 1875, twelve times as
much; f r o m 1876 t o 1880, sixteen times as much; f r o m 1881 t o 1885, twenty
times as much; and f r o m 1886 to 1892, f r o m eighteen t o twenty-five times a s
much.
Now, I assert t h a t these tables show, if they are worth t h e paper upon
which they are printed, t h a t the relative proportion of silver to gold h a s
never been as great as i t was in the e r a s l have named here, f r o m 1833 to 1844
and f r o m 1844to 1850.
W e hear upon every side the assertion t h a t the production of silver which
amounted to $74,000,000, according to the report of the Director of the Mint,
i n 1892 in the United States has caused its decline. There were 133,000,000 of
gold produced in this country for 1892, the production of silver being about
145




11
2 t o 1, and It is said that this accounts for the attack upon silver as a money
metal and the attempt now to destroy it throughout the world. F r o m 1832
t o 1840, thirty-two times as much of silver was produced as of gold. If it he
a logical proposition that the overproduction now has destroyed silver, why
was it t h e n ' n o t blotted out f r o m the face of t h e earth as a medium of exchange and of standard value?
I call the attention of the Senate to the price of silver, which i t is said is
affected by overproduction. F r o m 1833 t o 1840, when there was thirty-two
times as much silver as gold produced in the world, silver was worth in
t h i s country $1.29 and $1.32 an ounce. F r o m 1841 to 1830, when there was fifteen times as much silver as gold produced, stiver was still worth $1.29 to
11.31 an ounce. I quote from the report of the Director of the Mint. F r o m
1851 t o 1853, when there were five times as much silver produced as gold,
silver sold in the United States from $1.32 to $1.35 a n ounce, being an increase of f r o m 3 to 5 cents on the ounce. F r o m 1855 to 1860, when there were
four times a s m u c h produced, it sold from $1.& to $1.36 an ounce.
The decrease in the production of silver, as i t would appear f r o m this table,
was not really a decrease in the mining production, but there was a vast increase f r o m 1850 t o 1855 In the production of gold on account of its discovery
i n California and Australia and the reworking of the mines in Siberia. I t
is absolutely impossible under the rules of logic, if our friends be correct,
t h a t overproduction is the cause of the present condition of silver, that this
enormous overproduction should have existed in the e r a s I have named and
y e t not have brought about the same result.

Now, Mr. Speaker, it will be conceded that the two metalB
upon the basis of commercial value have parted company to a
marked degree, the silver in the standard silver dollar being
worth only about 57 cents as compared with the value of the
gold dollar* The explanation, however, is found almost solely
m the fact that certain foreign governments have within recent
years discriminated against silver by suspending its coinage.
The coinage of full legal-tender silver was suspended by Portugal in 1854, by Germany in 1871, by the Scandinavian union in
1873, by the Netherlands in 1877, by Finland in 1877, by Austriar
Hungary in 1892, by Russia in 1878, by Spain (on private account)
in 1878, by India (on private account) in 1893, and by the Latin
Union, consisting of the governments of France, Italy, Switzerland, Belgium, and Greece, in 1878. This unfriendly legislation
is the explanation for the constantly widening commercial chasm
between gold and silver.
CONCLUSION.

Mr. Speaker, we are confronted with this situation: Shall
the United States adopt the Wilson bill, which contemplates
a single gold standard, and continue its efforts to secure an international agreement, or shall we redeem the pledges of the
Chicago platform and endeavor to maintain, single-handed and
alone, a double standard?
Mr. Speaker, it seems to be trifling with the interests of a
great people to' make any further effort at this time in the direo
Son of an international agreement. So long as England maintains her commercial prestige, she will not consent to abandon
the gold standard adopted in 1816, and the United States finds
itself handicapped in this contest by the mistaken tariff policy
of the last thirty years which has permitted England to dominate and control the commerce of the world. So long as the
commerce of all nations passes through her clearing-house, just
so long will England insist upon the maintenance of a single gold
standard, because she is a creditor nation.
It is a matter of profound regret, therefore, that in this great
oontest between the standards, the United States is shorn of the
145




12
influence among the nations of the earth to which she would be
entitled under a policy which shall reestablish her old-time commercial prowess. Hence an international agreement at this time
is wholly improbable. What then? I appeal to the Representatives on this floor, especially to those on this side of the Chamber from the West and South, to ponder well their answer to
that C[uery before they respond to the roll call on the pending
question on Monday next* I know not what others may do; but
my action shall be in harmony with the pledges made by the
party at Chicago, not only to repeal the Sherm. n law, but also
to provide for the coinage of both gold and silver without discriminating against either metal. [Applause.] The constituency I have the honor to represent have no fixed incomes arising
from bonds, or other securities of that class, which would be
appreciated by a single gold standard, and they demand the
redemption of those pledges which command us to bear aloft
upon equal terms the banners of both gold and silver.
I know, Mr. Speaker, that the pathway which leads to independent national bimetallism in this country is not strewn with
flowers. It is scarcely enlightened by precedent or experience.
There is nothing in our fiscal history like the present moment.
Heretofore we have had, to some extent at least, the coSperar
tion of foreign countries in the effort to maintain a double
standard. But now almost every great commercial nation qf the
world is in arms against silver, and its last refuge is to be found
alone in the United States. [Applause.] I believe, sir, that the
enterprise, the energy, business sagacity, and genius of the
American people, sustained as they are by the almost illimit*
able natural resources of the Republic will yet achieve a triumph
for the double standard—the gold and silver money of the Constitution. [Applause.] The unconditional repeal of the Sherman
act means the unconditional surrender of silver. Voicing, as I
believe, the almost unanimous sentiment of my people, without
regard to party, I shall vote to restore silver to its ancient honor
and dignity. [Applause.]
145




APPENDIX.

Monetary tyetema and approximate etoche of money in the aggregate and per capita in the principal countries of the world.
Ratio between gold
Monetary system. and full
legal-tender
silver.

Countries.

United Stated
Gold and silrer.
United Kingdom . . Gold
Prance
Gold and silrer.
Germany
Gold
Belgium
Gold and silver.
Italy
....do...........
Switzerland

1 to 15.08 I t o 14.05
I t o 14.28
I t o 14.38
I t o 13.957
'i'toTs'}"*"" I t o 14.38
I t o 15}
I t o 14.38
1 to 15}
I t o 14.38
I t o 15$
I t o 14.38
1 to 15}
I t o 14.38
I t o 14.08
1 to 13.69
I t o 15
1 to 15}
I t o 14.88
I t o 15,
I t o 15}
1 to 15.1
I t o 14.28
I t o 15.68
I t o 16}
1 to 15}
I t o 15}
I t o 16.18
I t o 15
1 to 15}

Spain;
•. •.do . * • . . . . . . . •
Portugal
Gold
Auatria-Htingnry.. ....do
Netherlands
Gold and silver.
Scandinavian Union Gold
Russia
Silver
Turkey
Gold and silver.
Australia
Gold
ypt
Silver
Mexico
Central America... ....do
do
South America..
Gold and silver.
Japan
Silrer
India
China
The Straits
Canada
Gold
Cuba, Haiti, e t c . . . . . . — d o . . . . . . . . . . . 1 to 15}
Total

Ratio between gold
and limited Population.
tender silver.

>

I t o 14.95

Full tender.

67,000,000
38,000,000
39,000,000
49,500,000
6,100,000
31,000,000
8,000,000
2,200,000
18,000,000
5,000,000
40,000.000
4,500,000
8,600,000
113,000,000
33,000,000
4,000,000
7,000,000
11,600,000
3,000,000
35,000,000
40,000,000
255,000,000
400,000,000

$604,000,000
550,000,000
800,000,000
600,000,000
65,000,000
93,605,000
15,000,000
2,000,000
40,000,000
40,000,000
40,000,000
25,000.000
32,000,000
250,000,000
50,000,000
100,000,000
100,000,000
6,000,000

4,500,000
2,000,000

16,000,000
20, Q00,000

...

TREASURY DEPARTMENT, Bureau of the Mint, August Iff, 1893.




Stock of silver.
Stools of
gold.

45,000,000
90,000,000

Limited
tender.

Per capita.
Total.

$538,000,000 $77,000,000 $615,000,000
100,000,000 100,000,000
"650,"666" 000 50,000,000 700,000,000
103,000,000 108,000,000 211,000,000
48,400,000 6,600,000 55,000.000
16,000,000 84,200,000 50,200,000
11,400,000 8,600,000 15,000,000
1,800,000 2,200,000
4,000,000
120,000,000 38,000,000 158,000,000
10,000,000 10,000,000
90,660,666
90,000,000
61,800,000 " 8" 0 , 6 o 65,000,000
,2 0* 6 *
10,000.000 10,000,000
22,000,000 38,000,000 60,000,000
45,000,000 45,000,000
7,000,000
7,000,000
15,000,000 15,000,000
50,000,000
50,000,000
. 500,000
500,000
25,000,000
25,000,000
50,000,000
50,000,000
900,000,000
900,000,000
700,000,000
700,000,000
100,000,000
100,000,000
5,000,000
6,000,000
2,000,000
*""i*266,"666*
800,000

Uncovered
paper.

$412,000,000
50,000,000
81,402,000
107,000,000
54,000,000
163,471,000
14,000,000
14,000,000
100,000,000
45,000,000
260,000,000
40,000,000
27,000,000
500,000,000

SilGold. ver.

$9.01
14.47
20.52
12.12
10.66
3.01
5.00
.91
2.22
8.00
1.00
5.55
8.72
2.21
1.52
25.00
14.29
2,666,666 .43

2,000,000

600,000,000
56,000,000
28,000,000

$9.18
2.63
17.95
4.26
9.02
1.62
5.00
1.82
8.78
2.00
2.25
14.42
1.16
.53
1.30
1.75
2.14
4.31
.17
"L29" .71
2.25 1.25
3.53
1.75

Paper. Total.
$6.15
1.32
2,09
2.16
8.85
5.27
4.67
6.36
6.56
9.00
6.50
8.89
3.14
4.42
.17
.67
17.14
L40
.11

$24.84
18.42
40.56
18.54
25.53
9.91
14.67
9.09
16.56
19.00
9.75
28.88
8.02
7.16
2.88
26.75
16.43
4.91
.84
19.14
4.90
3.64
1.75

•"40,"000,*66o"
T i i * 8*89* 13*56
40,000,000 10.00 1.00 20.00 31.00

3,469,100,000 553,600,000 4,042,700,000 ^2,635,873,000

I

1

Statement of the production, of gold and silver in the world since the discovery of America.
[From 1493 to 1885 Is from table of averages for certain periods compiled by Dr. Adolph Soetbeer. F o r the years 1886-1892 the production Is the annual
estimate of the Bureau of the Mint.]
Gold.

Fine ounces.
1493-1530..;
.1521-1544
1545-1560.
1561-1580.
1581-1600
1601-1620
1621-1640.
1641-1060
1661-1680
1681-1700
1701-1720
1721-1740
1741-1760
1761-1780
1781-1800
1801-1810
1811-1820
1821-1830
1831-1840
1841-1850
1851-1855
1850-1800
1861-1865
1866-1870
1871-1875
1876-1880
1881-1885
1886
1887
1888
1880
1890
1891
1892
Total




186, 470
230,191
273,596
219,906
237,267
273,918
266,845
281,955
297,709
346,095
412,163
613,422
791.211
665,666
571,9-18
571,503
307,957
457.041
652,291
1,760,502
6,410,324
6,480,262
5,949,582
6,270,086
5,591,014
5,543,110
4,794,755
5.127,750
5,093,984
5,316,412
5,746,950
6,473,631
5,830,107
6,328,272

Value.
93,855,000
4,759,000
5,656,000
4,546,000
4,905,000
5,662,000
5,516,000
6,828,000
6,154,000
7,154,000
8,520,000
12,681,000
16,350,000
13,701,000
11,823,000
11.815,000
7,600,000
9,448,000
13,484,000
36,393,000
132,573,000
134,083,000
122,989,000
129,014,000
115,577,000
114,586,000
99.110,000
103,000,000
105,302,000
109,900,000
118,800,000
115,150,000
120,519,000
130,817,000

Sliver.

Total for the period.
Fine ounces.
6,221,160
6,524,056
4,377,544
4,398.120
4,745,340
5,478.360
b, 330,900
6,039,110
5,954,180
6,921,895
8,213,260
12,208,-140
15.8:24,230
13,313,315
11,438,970
5.715,627
3,679.568
4,570,444
6,522,913
17,005,018
32,051,621
32,431,312
29,747,913
31,350,430
27,955,068
27,715,550
23,973,773
5,127,750
5,093,984
5.316,412
6,746,950
5,473,618
6,830,107
6,328,272

Annual average of period.
Fine ounces.

Value.

ii¥i§i¥i§iiiiiiiliiiiiiilllillllii

Annual average of period.

897,191,823 8,204,303,000

Coining
value.

1,511,050
2,899,930
10.017,910
9,628,9:15
13,407,035
13,590,235
12,654,240
11,770,545
10,831,550
10,992,085
11,432,540
13,803,080
17,140,012
20,985,591
28,201,779
28,746,922
17,385,755
14,807,004
19,175,807
25,090,342
28,488,597
29,095.428
35,401,972
43,051,583
63,317,014
78,775,602
92,003,944
93,276,000
96,189,000
109,911,000
125,830,000
133,213,000
144,426,000
152,062,000

$1,954,000
3,749,000
12,952.000
12,450,000
• 17,413,000
17,579,000
10,361,000
15,226.000
14,008,000
14,212,000
14,781,000
17,924,000
22,162,000
27,133,000
36,540,000
37,108,000
22,479,000
19,144,000
24,793,000
32,440,000
36,824,000
37,618,000
45,772,000
65,663,000
81,864,000
101,851,000
118,956,000
120,600,000
124,366,000
142,107,000
162,690,000
172,235,000
186,733,000
196,605,000

Percentage of productl'n.

Total for the period.
Fine ounces.
42,309,400
6 J, 598,320
160,287,040
192,578,500
269,352,700
271,924,700
253.084,809
235,530,900
216,691,000
219,841,700
228,650,800
277,261,000
342,812,235
419,711,820
6G5,235,580
287,469,225
173,857,555
148,070,040
191,758,675
250,903,422
142,442,986
145,477,142
177,009,862
215,257,914
316,585,069
393,878,009
460,019,722
93,276,000
96,189,000
109,911,000
125,880,000
133,213,000
144,426,000
152,062,000

By weight.

Coining
value. « Gold.
554,703,000
89,986,000
207,240,000
218,990,000
348,254,000
351,570,000
327,221,000
304,525,000
280,100.000
284,240) C O
O
295,029.000
358,480,0JO
443,232,000
542,658, ( , 0
K<
730,810,000
371,677,000
224,780,000
191,444,000
247,930,000
324,400,000
184,169,000
188,092,000
228,861,000
278,313,010
409,322,000
509,250,0.KJ
594,773,000
120,600,0i>0
124,3(56,000
142,107,000
162,690,000
172,235,000
186,733,000
196,605,000

7,522,507,716 9,726,072,000

Silver.

By value.
Gold.

Silver.

11.0
7.4
2.7
2.2
1.7
2.0
2.1
2.3
2.7
3.1
3.5
4.2
4.4
3.1
2.0
1.9
2.1
3.0
8.3
6.6
18.4
18.2
14.4
12.7
8.1
6.6
'5.0
5.2
5.0
4.6
4.4
4.0
3.9
4.0

89.0
92.6
97.3
97.8
98.3
98.0
97.9
97.7
97.3
96.9
96.5
95.8
95.6
96.9
98.0
98.1
97.9
97.0
96.7
93.4
81.6
81.8
85.6
87.3
91.9
93.4
95.0
94.8
95.0
95.4
95.6
96.0
96.1
96.0

66.4
65.9
30.4
26.7
23.0
24.4
25.2
27,7
30.5
33.5
36.6
41.4
42.5
33.7
24.4
24.1
25.3
33.0
35.2
52.9
78.3
78.1
72.9
70.0
58.6
53.0
45.5
46.8
45.9
43.6
42.2
39.7
39.2
40.0

33.6
44.1
69.6
73.3
78.0
75.6
74.8
72.3
6J.5
66.5
63.4
58.6
67.5
66.3
75.6
75.9
74.7
67.0
64.8
47.1
21.7
21.9
27.1
30.0
41.4
47.0
54.5
53.2
54.1
56.4
57.8
60.3
60.8
60.0

&0

96.0

45.8

612