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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 2 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 146 3 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 145 4 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; 313 5 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 146 6 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. 146 7 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 145 8 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 313 9 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 JL SINGLE STANDABD. 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,"200,*66o* 65,000,000 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 Value. ii¥i§i¥i§iiiiiiiliiiiiiilllillllii Annual average of period. 897,191,823 8,204,303,000 Annual average of period. Fine ounces. 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) COO 295,029.000 358,480,0JO 443,232,000 542,658, (K,<0 730,810,000 371,677,000 224,780,000 191,444,000 247,930,000 324,400,000 184,169,000 188,092,000 228,861,000 278,313,010 409,322,000 509,250,0.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
@FedFRASER