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( t o g m s i f l t t a ! lUcot'd. FIFTY-THIRD CONGRESS, FIRST SESSION-. Silver Coinage. S P E E C H or HOK. W I L L I A M A . P E F F E R , OF K A N S A S , IN THE S E N A T E OF THE U N I T E D STATES, Thursday, August 1898. The Senate having under consideration the bill (S. 570) discontinuing the purchase of silver b u l l i o n - Mr. PEFFER said: No member of this body, Mr. President, has a keener appreciation of the need for our acting promptly in response to the President's call than I have; and were it not that the people whom I have the honor in part to represent have commissioned me to present their views upon the pending question, I should not at this time ask the attention of the Senate, and I will thank Senators if they will give me their attention. In what I am going to say to-day I wish Senators to understand that I represent at least a million and a half of voters who believe just as I do, and they have a right to be heard here through one who is authorized to speak for them. W e are deliberating now, and the views of every member of this body are worth listening to, they are worth considering; for the conditions which are now presented for our consideration are new in the history of this country. They are coming upon us like a storm which has been gathering for many years, but the cloudbursts are just now opening, and we are beginning to look to see what is behind them. So I ask in advance that I may be heard attentively and patiently, as I have listened to every other Senator who has spoken upon this subject. It would have been very gratifying to me, Mr. President, could I have found time in the midst of this hurried occasion to reduce my thoughts to writing, that I might express them more clearly, if not more forcibly; but that could not be done. This subject is not new to me, and that is one reason why I again appeal to the Senate. I have been thinking for years along the lines which have converged into what we now see. So, while my thoughts may be roughly expressed, they are not crude or new. It was suggested the other day by the venerable Senator from Vermont [Mr. MORRILL], whose seat is just in front of where I am speaking, that those of us who venture to discuss this question before we have become warm in this Chamber should tarry at Jericho, as certain of our ancestors had been advised to do, until their beards had grown. If the newspaper and the magazine caricatures are to be taken in evidence, Mr. President, I have been at Jericho some time. [Laughter.] At the outset I wish to say that I am not interested personally in mining, nor are the people of Kansas. Seventy-five per cent of the men whom I represent here are farmers. I had rather have one good Kansas farm to-day than an equal number of acres, in the best mineral region in the world. Kansas farmers and the farmers of the entire country are always prepared with something to live upon. A little while ago, passing through the mountains in the mining regions, I saw that upon the closing of the mines there were thousands and thousands of men clustering in the cities out of employment. A few days afterwards I saw that they were marching to Denver, and that the whole populace there were aroused. I stopped one night in July last in the city of Leadville, almost at the top of the Rocky Mountains. In the morning the sidewalks were covered with frost, so cold it was—in a drear, rocky, barren region—barren of everything except silver and gold and iron, Those men, thrown out of employment, have no place to go, no place to rest their heads, no farming lands to occupy their time, no deep, rich soil, out of which to raise wheat and corn and other articles of subsistence. They must go out upon the cold charities of a heartless world—no, not heartless, but they are thrown out upon the charity of a sympathizing world. That is a better word. The farmer is always at rest so far as something to eat is concerned. While we in Kansas produce as much wheat, as much corn, and as many cattle and horses in a single year as will outweigh in value the output of all the mines in the country, while we have no special interest in mining, we have a great inter est in the subject of money; and I am receiving letters every day from the people of that splendid agricultural region saying " Give us mon9y! Give us money! Twenty-two and 25 cent wheat we can not live upon except to feed ourselves." It is money the people want. In that respect, Mr. President, we are broad enough to understand that the people of the entire country are just as much interested in this matter as the men who live among the silver mines; just as much interested as those pioneers who have entered the fastnesses of the Rocky Mountains, and wrought out every year since they have been there, as the Senator from Idaho [Mr. DUBOIS] told us the other day, millions upon millions of gold, which our Eastern friends are clamoring for. One of the most astonishing feats of modern civilization is the course of progress in that stony and rugged region. The only wonder is that men and women have ever undertaken to live there. Were it not for the mining interest, were it not for the mineral stores which are there, nothing of the kind would ever have been accomplished. While we, the people in the States contiguous to the mining regions, are interested indirectly because it makes a market for us, still we are broad enough to understand that the whole country is interested. I have never heard any Senator upon this floor, or any Representative of a mining region, whose people are directly interested in the mining of silver and gold, urge upon the attention of the Senate that it is their peculiar interest, and that, therefore, they ask the protection of the law. Much and vitally as those people are interested in the development of the mining regions, they are manly enough and patriotic enough, Mr. President, to appeal to the people upon broader grounds. They put it upon the ground of the public necessity, and not their local needs, and it is a principle that statesmen ought always to act upon that the public interests are greater than private interests, no matter how intensely they may be involved. It was suggested by one Senator, a few days ago, that the wiping out of the mining industry would destroy much valuable property. That is true, but in the progress of civilization there must needs be wrecks left in the wake, and society can not afford to pay for all of the losses that are occasioned as the great army of the people moves forward. We could not with any degree of consistency, either in law or in morals, stop to pay our friends in the mining regions the value of their interests before we shall conclude to coin their silver and their gold into money. The people need money; the people want the gold, and they want the silver for public purposes—to make money out of; and for that reason, and that reason alone, do I insist upon the free and unlimited coinage of silver. Mr. President, in the great war through which we passed some years ago, the physical courage and the prowess of the people were exhibited in such a marked degree that the whole world looked on in admiration. We have no question about that today; we are all Americans, all Anglo-Saxons. Now, I submit there is coming a war of greater importance, a war in which there shall be no South and no North, and I pray that there may be no East and no West, but that we shall have one undivided country, that all of us shall be actuated by patriotic principles, and that we shall consider these questions from a patriotic standpoint, and only that. I t is a war of reason now, and not a war with engines of destruction in our hands. I need not call the attention of the Senate to the importance of the subject. It was expressed in the message of the President very plainly and very succinctly; that it reaches out into all the avenues of trade and of commerce. I need only go back about twenty-five or twenty-six years to the time when the distinguished Senator from Ohio, who sits upon my left \Mr SHERMAN], stated CONGRESSIONAL 2 in this Chamber the proposition still more distinctly, if possible, than the President has done. He said then that in all of our legislation touching finance we are treating of matters which pertain to the vital interests of the people, that our laws upon finance reach to the homes of the poor, the humble, the lowly, and that when we are proposing to decrease the volume of our currency and appreciate the value of the basic metals, we are adding to the debts of the people, as was the case at that time; when we promised to pay 100 bushels of wheat, we shall have to pay 135 or 140; that where we promised to pay $100 we shall have to pay $140; so to-day the legislation which we enact will have its effect for good or evil in every dwelling in the land, for we are touching upon a subject which is of vital interest to every human being in this and in every Other part of the world. The President in calling Congress together gave us what, in his opinion, was the cause of the present troubles, and he puts it in this way on page 5 of the printed message, as we have it before the Senate; The knowledge in business circles among our own people that our Government can not make its flat equivalent to intrinsic value I beg close attention to this language— The knowledge in business circles among our own people that our Government can not make its flat equivalent to intrinsic value, nor keep inferior money on a parity With superior money by its own independent efforts, has resulted in such a lack of confidence at home in the stability of currency .values that capital refuses Its aid to new enterprises, while millions are actually withdrawn from the channels of trade and commerce to become idle and unproductive in the hands of timid owners. The President gives Congress to understand that our own people have lost confidence in the ability of the Government, acting as "the people's agent, to pay their debts. I beg leave to place side by side with the President's statement the language of the Senator from Indiana [Mr. YOORHEESJ. With his usual eloquence, powerful always in debate, clear and succinct in expression, the Senator gave us to understand in a speech day before yesterday that it was not want of confidence on the part of our people that has caused all this trouble and commotion. I have that Senator's speech before me, and I wish to call attention particularly to a paragraph on page 390 of the RECORD. The Senator says: The national credit of the American Republic, tried by every test which can be applied, i s better and stronger to-day than the credit of any other government on the globe. Her bonds, her promissory notes to pay her debts, as they may be called, bearing a low rate of interest, stand at a premium in the money markets of the whole earth, and even the cold, cowardly instinct of hoarded, inactive, interest-hunting capital, in its cautious search for permanent investments, seizes upon them with swift greed wherever they can be found. The safety of the security appeases somewhat even the usurer's highly seasoned appetite for richer profits. And, strange as it may appear, the Senator from Indiana is not only authorized to speak for the Administration and to explain the President's views, if they need any explanation, but the Senator kindly and deliberately says so to the Senate. In the first paragraph of his able and lucid speech he says: It is undoubtedly true that the calm, unbiased public opinion of the great body of the American people, irrespective of parties, justifies the action of the Executive in assembling the legislative branch of the Government at this time, and yet the causes which have made such action necessary are I think, widely and dangerously misunderstood and by certain classes purposely and persistently misrepresented. Then the Senator proceeds to state what the causes are not; and the first one is that it is not that the people have lost confidence in the credit of the Government's paper. The people of this country are not afraid of the public credit; they never were afraid of it. In the time of the nation's need we were all pleased to receive and to use as money that which the Congress of the United States authorized and directed that we should receive as money; and so it is to-day. There is no clamor upon the part of any class except the usurers. They and they only are clamoring about the credit of the Government, and it is only because they desire to add to their already illgotten gains. If the people were afraid of the credit of their Government, and feared that we would dishonor our notes, they would not hoard them as they are doing now, and the national banks would not feel themselves compelled to issue clearing-house certificates and require that they shall be used as money, nor would they be paying a premium upon currency. The first week of our meeting, Mr. President, the usual report of R. G. Dun & Co.'s Mercantile Agency was given to the world. On the first page there is a long recital of the business failures and embarrassments, the breaking of banking houses, the hoarding of currency, the closing of manufacturing establishments, the throwing out of thousands of working people upon the streets without employment. These things show that something else, everything else, if you please, except what the President urges 203 EECOBD. upon the attention of Congress, has caused our present misfortunes. Mr. President, far be it from me, and it ought to be far from every patriotic citizen, to even suggest that our own people are ashamed or afraid of their own currency. Let me read from this report of the Mercantile Agency: The long-desired meeting of Congress, a President's message which fully answered expectations, and the arrival of $13,280,000 gold from Europe with $10,000,000 more on the way, have Inot brought the improvement many anticipated. Stocks are stronger, but failures continue, and the closing of industrial establishments; idle hands multiply and silent shops; and the disorganization of domestic exchanges is even greater than a week ago. Yet there is a more hopeful spirit, though the nation looks to Washington with some impatience when the Senate seems disposed to rival the mills in working short time. While statesmen consider, merchants and bankers and unemployed thousands anxiously wait, knowing that the wrecks of each passing week make the task of recovery more difficult. There has been no startling crash, but the formal failures of banks, including one in this city and several in Nashville, number thirty-four, while refusals to pay except through a clearing house or with limitations are becoming more common. The commercial disasters, three hundred and ninety-four in number, Include such names as R. H. Coleman, the 4'iron king;" J. H. Walker & Co., of Chicago, in dry goods, and H. L. Hotchkiss, In stocks. Whatever relief Congress has power to give may be less fruitful for good if long deferred. The machinery of exchanges has almost stopped. When $30 per $1,000 is paid for New York exchanges at Chicago, and $15 or $20 at other Western cities, settlements between the East and the West, which ordinarily amount to $3,200,000,000 in a year, become extremely difficult. Even the New York Central could not get currency here on checks of the Boston and Albany, and was obliged to send to Boston for the money. The root of the trouble is that, according to reports of July 12 to the Comptroller, over [3131,000,000 of deposits had been withdrawn in two months from part of the national banks, and probably $177,000,000 from all, besides unknown sums from savings, State, and private banks, and during the month, since July 12, the withdrawal and hoarding must have been relatively even greater. A premium of 1 to 2 per cent is paid for gold, and 3 to 4 per cent for currency. The Government is printing$l,250,000 bank notes daily. The clearing house has issued $5,000,000 more certificates, and the hope is that confidence may be revived and hoardings unlocked. There are multitudinous other evidences besides those of the commercial reports. I have nearly an armful of newspaper clippings that I collected for the purpose of ascertaining what these troubles have come from. Evidently the President is mistaken. All the testimony is against him. I do not wish to be understood as criticising the President or his motives. I am discussing statements made in a public document, and that only. I have great faith in the personal honor and in the patriotism of the President of the United States. I would honor any occupant of that office because of his high office; but I am calling the attention of the Senate and of the country to the actual facts as they exist, for the purpose of showing before I get through that it is not want of confidence on the part of the people, but it is because of practical treason upon the part of a few of our citizens, a class which I hope will some day be relieved from the responsibility of stealing from the people. I mean the usurers and the fortune wreckers at the great trade centers who fatten on the misfortunes of other men. There are other alleged causes, and I will refer to two of them before going further. The speakers and the writers of both the great political parties have been telling us for years, upon the one side, that our protective policy was carrying the country to ruin, and, upon the other side, that the free-trade tendencies of the opposite party were doing exactly the same thing; and that now what ails us, one party says, is our protective tariff laws, and the other party says it is the fear of the people that our tariff legislation will be disturbed. Let us think a moment about this matter. It can not be that our protective policy has injured us to this extent or that it would ever do it, for if I should cite no other argument one alone is sufficient. To-day more than one-half in value of the goods that we are receiving from foreign countries come in free of duty, and the duty we pay upon the rest amounts to onlv about $150,000,000 a year. Then, on the other hand, I take issue with those friends who insist that it is the free-trade tendencies of the Democratic party that are causing all the trouble in the factories, in the mines, in the workshops, and other places. That can hardly be true. Carpenters and builders and that class of men who are to-day idle have no interest, either directly or indirectly, in tariff duties. What fear have the farm hands, the miners in the mountains, the sailors, the clerks in the mercantile establishments and in the business houses as to the prospective danger to manufacturing establishments by the course of the Administration now in power? Mr. H AWLEY. May I make a suggestion to the Senator just there? Mr. PEFFER. Yes, sir. Mr. HAWLEY. Suppose a manufacturing town that has been thriving and growingis so afraid of alterations iQ the tariff that it concludes to suspend all building operations, pigeonholes the plans for a new factory or a new wing, what becomes of the 3 CONGRESSIONAL EECOBD. carpenters who expect to work a year upon it, for example? It involves the prosperity of the whole village. Mr. PUFFER. I remember once upon a time seeing a young man of a romantic turn of mind sitting down and resting himself beneath the shade of a towering rock. In the midst of his meditations I inquired what he was thinking about. He said he was thinking that if in the future he should bring his chUd there to look at the magnificent scenery surrounding him and the rock Should fall and kill the boy how lonely he would be in his old age. Whenever manufacturing establishments do, as a matter of fact, close their establishments because they expect or because they fear any tampering with the tariff, I will then answer the Senator's question. I do not believe there is one such case in a thousand. I have no doubt, Mr. President, that there are a good many cases where gentlemen do not proceed with projected enterprises, because they fear that possibly they will not receive the protection that the laws have afforded those who have been at work in the same line in past years. I can understand that very well. I know of some instances of that kind, and it is entirely logical. But I insist that the records of the failures to-day and for the last half-dozen years in the manufacturing establishments show that it is not fear of being closed by any prospective tariff policy, but it is for want of orders. The people in the country have not money to buy with. My own constituents are selling wheat at from 25 to 40 cents a bushel, corn at no more than the cost to produce it, horses at one-fourth of their value, and cattle at one-third less than their value. They are unable to prosecute their accustomed marches to the merchant for goods; the merchant fails to sell, and the manufacturers do not receive order?. That is the trouble. Mr. President, I have often listened to this outcry with wonder and astonishment. I have no party prejudice in the matter. 1 have always been a protectionist and I am at this hour. But I do not believe in protecting one man against other men in matters of business. I do not believe in protecting one interest against other interests, and taxing the masses of the people to support a few men. I am utterly opposed to that, and so is the whole party to which I belong. But protection means protection to national industries as a national matter. That was the theory of the fathers. It was the theory of the old party that I loved so well, and never departed from until it abandoned the policy of its own early history. Now, if the Senator from Connecticut [Mr. HAWLEY] will turn to the Democratic platform in the year 1884, he will see that while there is a proposition to revise the tariff, it is expressly stipulated that whatever revision is done shall be along the line of saving to the working people of the country whatever they have gained by reason of this protective policy. The President in his message in 1887, which was made the rallying cry of the party afterwards, took the same ground. He gave the people to understand that their industries should not be molested except upon a fair line which would save to the workingman whatever he is entitled to to make him equal with his competitor upon the other side of the ocean, with his cheaper labor and his cheaper clothing. I see the Senator from Texas [Mr. MILLS] standing before me and honoring me with his attention. He, as chairman of the Committee on Ways and Means in the House of Representatives, presented a bill to that body for their action early in 1888, after the President's message had been given to the country. The bill was drawn upon the lines of the message, and was so stated by the distinguished chairman of that important committee; and the Senator from Connecticut will remember that the woolen mills which are established in his own Stats and all through New England and New York were left with a protection averaging about 40 per cent. The same class of men who managed to get along in 1846, and from that to 1857, with a tariff duty averaging about 30 per cent or along there, and a still lower one in 1857, and did not then even ask for any increase for the purpose of protection, are not scared now at the tariff outlook. When Congress met in 1861, in view of the great war that was coming, called together for the purpose of raising armies and equipping them, and revised the tariff, it was done not for protection to manufacturers, but to raise revenue, and every increase that was made afterwards was made not for protection, but to save the manufacturers against the effect of a tax levy made upon them to support the armies. In 1884 we authorized them to go abroad and employ labor and bring it here, under contract and a year's mortgage on their income; and not until nearly a dozen years afterwards were the masses of the people aware that such an act had ever been passed. We are now reaping its fruits in Pennsylvania, where men are marched to the polls and vote by number, instead of by name, 203 Somsbody in the city of New York is sending to me regularly the weekly publication known as American Industries. It is in the Democratic party the same as the American Economist is in the Republican party. The editor sent out a very intelligent and capable reporter among the manufacturers to ask their opinions about the revision of the tariff, and in not a single instance that has come under my observation did those men recommend a duty below 40 per cent, the average of the Mills bill, on the lower grades of woolen cloth. The Democratic party dare not, if it wanted at this hour, to establish free trade in this country. The very men who are controlling both the great parties to-day are the men who are standing behind the great manufacturing interests, and all the money power in Christendom, if need be, will be brought to bear to prevent the consummation of a plan of that kind. There is no danger of free trade unless this fight is forced upon us to the end, and then every custom-house will be closed and the trade of the world from that time on will be free. That is where we are drifting; and the men who are behind the throne to-day are the men whom I blame for hastening that consummation when it comes. Ail that we ask is, to use the language of the old Virginia slave, that "you tote fair." If we upon our farms are compelled to compete with wlrnt you call the pauper labor of other countries, you can do it, and we say you must do it before this fight ends. Be fair with us and we will be fair with you. But if the tariff was what ailed us the President would have been careful to say so. The very fact that it is omitted from his message is evidence to the country that the interests of the people are not going to be disturbed by any proposed legislation of any party. There is as much patriotism among the Democracy as there is among the Republicans. Thank God, tho great war of the sections is over. A little while ago I read a speech delivered by the distinguished Senator from Georgia [Mr. GORDON], who thirty-odd years ago was at the head of an army in gray uniform. He was talking to the old veterans of the rebellion, and he said to them, " The time has come when this Union and this whole country is ours. " We have but one flag, we have but one destiny. Our hearts and our hands are united as citizens of a common country, and woe be to the enemy that strikes at our vitals." I have heard no more patriotic utterances in this body than have fallen from the lips of men whom we went down to visit in 1861,1862,1863, 1864, and 1865. I did not expect to be drawn off in this sort of a discussion, Mr. President, but the well-meant interruption of the Senator from Connecticut, kindly disposed as he always is, for the time being stimulated a thought upon that line. The President of the United States was not well advised. Who were his advisers? They were the same to whom his predecessors since 1873 have gone for counsel. And who were they? By reference to the current newspaper chronicles of September, 1890, we find that the Secretary of the Treasury then paid a visit to New York City, and the cause of his visit was an alleged 6 ' stringency in the money market." Out in Kansas, in Nebraska, in Iowa, in all of that splendid region down in the Carolinas and in the Virginias and through to Texas, in all the country west of the Alleghany Mountains, there was the same stringency in the money market. On the 31st day of March, 1890, the average market price of corn in Kansas was 15 cents a bushel, when i t cost 21 cents to raise it. We made known our wants. Our farmers and those from every agricultural State in the Union poured in letters by the thousand to the Secretary of Agriculture and to all the officers of the Government who had any connection with the business ot farming. The Secretary, in response to their appeal, wrote a long letter in small print, occupying four pages of foolscap, in which he conceded the justice of their complaint. He spoke kindly about their condition, and the only encouragement the Secretary could offer them was that Congress was at that time discussing the currency question, and he thought in due time the same body would increase the duties upon wheat and corn and other agricultural products brought in from foreign countries. Then, he thought, the farmers would have more money and they would have more protection. That was the condition of the farming population at that time. The Secretary of the Treasury made a visit to New York to confer—*not with the people; he paid no attention to the people in the West or the South; he paid no attention to the masses of the people anywhere; but this is what he did: He sent out cards of invitation to a few bankers and other capitalists to meet him at the subtreasury building, and they met and discussed the situation. Now, if Senators will turn to page 29 of the report of the Secretary of the Treasury for that year they will find a clear, sue- CONGRESSIONAL 4 cinct statement of why he called upon those bankers and other capitalists and what the result of his call was. The result is put down in a table on page 30 of the report of the Secretary of the Treasury for 1890. It shows that he purchased bonds from those bankers and other capitalists at a premium of 25 to 26 per cent; that he advanced nine months' interest on a large number of bonds that were not yet due, the total amount of the disbursements being $98,276,682.10. The amount of the advanced interest was $12,009,951.50. These several transactions are fully set out in the Secretary's report, on pages 28, 29, and 30, as follows: EECOBD. No sooner did the wires carry the news of this suggestion than a gentleman from New York City, whose name was given at the time and need not now be repeated, started for Washington. The next day the newspapers came out with this heading: " The President speaks," and the President gave to the country in his own language his determination concerning the payment of thoss notes. The New York World, in commenting upon the President's statement that all the obligations of the Government will be paid in gold, used this language: President Cleveland evidently feared that Secretary Carlisle's statement, given to the public on Thursday, was misunderstood, or at least that it did not afford a very clear explanation of the present financial situation and Accordingly, on July 19,1890, a circular was published rescinding that un- the adopted policy of the Administration, and so for the second time within der which purchases had been made since April 17, 1888, and inviting new three days he has taken the management of the Treasury into his own proposals, to he considered July 24, for the sale of the two classes of bonds hands. The complaint can not be made that he has not spoken plainly or before mentioned. Under this circular there were offered on the day pre- that he has kept the public in doubt as to just what he thinks should be scribed $6,408,350 4 per cents and $594,550 per cents, at prices varying from done and what he intends to do. 121.763 to 128^63 for 4s, and from 103J to 104.40 for 4js, of which there were purchased all the 4 per cents offered at 124 or less, amounting to $6,381,350, The President gave the country to understand that every one and all the 4}s offered at 1031 or less, amounting to $584,550. As the amount of the Treasury notes would be paid in gold. obtained on this day was less than the Government desired to purchase, the On the 26th of April the newspapers gave us some knowledge provisions of the circular were extended, with the result that further purchases were made, amounting in the aggregate to $9,652,500 4s and $706,450 of the gentleman who was moving backward and forward between 4i per cents. New York and Washington. His name is given as Jordan. The It was soon apparent that these purchases were inadequate to meet existing conditions; therefore, on August 19 the Department gave notice that reporter says: 4i per cent bonds would be redeemed with interest to and including May 31, Assistant Treasurer Jordan did not give up yesterday to a series of confer1891; and two days later the circular of August 21 was published, inviting the ences on the subject of gold. The bankers are less disposed to talk with Jorsurrender for redemption of twenty millions of thosebonds, upon condition dan. They are not convinced that he represents anybody above him, and of the prepayment after September 1,1890, of all the interest to and including they prefer to await the arrival of Secretary Carlisle, that they may talk diAugust 31,1891, on the bonds so surrendered. Under this circular there were rectly to him. redeemed $20,060,700 4i per cents. Then the Secretary kindly went over, as the newspapers inNotwithstanding the disbursements resulting from purchases and redemptions of bonds under the circulars of July 19 and August 21, the industrial and formed us, and in a little while he and the bankers agreed to discommercial interests of the country required that large additional amounts agree. After the trouble came, when there was a deficit in the should be at once returned to the channels of trade, Accordingly, a circular was published August 30,1890, inviting the surrender of an additional twenty Treasury so far as the $100,000,000 mark was concerned, the bankmillions of 4J per cents upon the same terms as before. This was followed ers of Chicago, the bankers of Denver, and the bankers of Kansas by another, dated September 6, inviting holders of the 4 per cent bonds to ac- City offered gold to the Government, and some of the little banks cept prepayment of interest on those bonds to July 1,1891, a privilege which was subsequently extended to the holders of currency 6s. Under this circular way in the back woods tendered a few thousand dollars—if that of August 30 there were redeemed $18,678,100 4J percent bonds, and under was all they had—in gold to help the Treasury out; but the that of September 6 there was prepaid on the 4 per cent bonds and currency bankers of Wall street could not agree with the Secretary and Cs interest amounting to $12,009,951.50. These prepayments of interest are expressly authorized by section 3699 of they advanced not a dollar, yet they were the President's adthe Revised Statutes. They were deemed expedient because of the disposi- visers. tion of the holders of bonds to demand exorbitant prices for them. Now, Mr. President, it is very important that we should know The amount of public money set free within seventy-five days by these several disbursements was nearly $76,660,000, and the net gain to circulation who is dictating our financial policy; and in saying that I do not was not less than $45,000,000, yet the financial conditions made further wish to be understood as saying that the Chief Magistrate of the prompt disbursements imperatively necessary. A circular was, therefore, American Republic is being dwarfed by anybody's influence. published September 13,1890, inviting proposals, to be considered on the 17th, What I do mean to say is that the President of the United States, for the sale, to the Government, of $16,000,000 of 4 per cent bonds. The offerings under this circular amounted to $35,514,900, of which $17,071,150 were of- honestly believing that the policy dictated by the bankers and the fered at 126f, or less, and were accepted. "Napoleons of finance " was the proper policy of the country, so The total disbursements since June 30,1890, by the means above set forth, says boldly to the people. He has never gone into the backare recapitulated as follows; Bonds redeemed. -82,133,350 17,324,850 560,050 20,060,700 18,678,100 (*) 17,071,150 Under circular of Apr. 17, 1888 Under circular of July 19, 1890 Under circular of Aug. 19, 1890 Under circular of Aug. 21,1890 Under circular of Aug, 30, 1890 Under circular of Sept. 6,1890 Under circular of Sept. 13, 1890 * Total - Disbursement. $2,358,884.00 21,225,989.46 581,138.12 20,964,868.42 19,518,176.83 12,009,951.50 21,617,673.77 75,828,200 98,276,682.10 ........... •Prepayment of interest. The people who needed money in the transaction of their business were not heard. The back of the Government was turned upon them. The face of our officers was toward Wall street and the bankers and capitalists there. The Secretary of the Treasury could pay money into their pockets by the purchasing oi bonds, the premium on which amounted to $17,000,000. He could advance them nine months' interest upon bonds not yet due, amounting to $12,000,000 more, making in all over $27,000,000 of the public money paid to the bankers and other capitalists of Wall street, without adequate consideration, while the people were left to dig a little deeper and to raise a little more 15-cent corn. I remarked that the present Chief Executive consulted with that class of men, the men whom his predecessors consulted since 1873. I will not go back beyond 1890; it would take too much time. Now, who were the President's advisers in this case? Coming a little closer home we will see how like the proceedings of 1890 were those of 1893. It was currently reported in the newspaper dispatches along about the 21st, 22d, and 23d of April last that the Secretary of the Treasury thought, speaking for himself, that the Treasury notes which had been issued in payment for silver bullion might properly be paid in silver. He carelessly dropped the remark somewhere in company, as it was alleged, r< There is plenty of silver in the Treasury; there is no danger of a collapse there." 203 ground to say this thing. It has not been said in a corner. Mr. Cleveland (and I honor him for his courage) is willing to say before the whole world what he believes. He has done it from the beginning. He is doing it now. No, no; the President is great among strong men; but he believes in a wrong philosophy that was taught to him in his childhood. Instead of learning his law at the feet of Gamaliel he learned his law at the feet of the Rothschilds, Baring & Co., Clews, Drexel, and that class of men—the men who received their teaching from the economists that built up the Bank of England and all the great banks of antiquity except only one. Now, I wish to inquire a little into the character of those men in order that we may see and that the country may see who it is that is talking to us. Away back about thirty-four or thirty-five years ago a young man in the city of New York, having a speculative turn of mind, was anxious to become a member of a body of gentlemen who then met in the basement of a building in that city to transact their business. They refused admission to the young man. He came to the conclusion that he would follow a system of tactics that would force somebody to terms, just as our traders in grain force people to terms sometimes. He says: After numerous efforts to gain admission to the exchange without success-- I am talking about the stock exchange of New York— I finally made up my mind to force it. I at once inserted an advertisement in the newspapers, and proposed to buy and sell stocks at a sixteenth of 1 per cent each way. This was such a bombshell in the camp of these old fogies that they were almost paralyzed. What rendered it more distasteful to them still was the fact that, while they lost customers, I steadily gained them. The result was that they felt compelled to admit me to their ranks, so that I could be kept amenable to their rules, and do business only in their own conventional fashion. My membership cost me in all, initiation fee and other trifling expenses in connection therewith, $500. This— Says the gentleman— presents a striking contrast to the recent price of a seat, $35,000; but though this difference seems very large, yet the changes in every other respect connected with Wall street affairs have been in similar proportions. Then he goes on in the next page and says: Youthful speculators- Like himself— Had not then learned the "crooked CONGRESSIONAL RECORD. In quotation marks— methods of the young idea of modern times. It was there also that Daniel Drew began to accumulate those millions that afterwards were subject to such a rude scattering. It was there that the celebrated " corners " in Rock Island. Prarie du Chien, and Harlem were concocted. It was there that the wealth was accumulated which built 20,000 miles of Western railroads, causing many millions of acres, that would otherwise have been a wilderness, to blossom like the rose, in spite of Mr. Powderly's opinion that no material good can come out of speculation, and thus adding immense wealth in real estate to the country, besides conferring incalculable benefits on trade and commerce, and preparing comfortable homes not only for the pioneers and surplus population of the Eastern States, but a teeming soil that has attracted the downtrodden of every nation to come and partake of the blessings of freedom and prosperity. I have read from pages 9 and 10 of " Twenty-eight Years in Wall Street," by Henry Clews. Now, Mr. President, going along a little further to pages 19 or 20,1 will simply call attention to what is said there, without reading more than a portion of it. My object in this is to show the character—moral, financial, and political—that the advisers of our public men put before the world. I am doing it in their own words. Henry Clews is the young man I was speaking of, a recognized banker and stock-broker, a man standing high not only in his profession, but standing high in social and religious circles in the city of New York and everywhere, notwithstanding he goes before the world exposing himself and his coworkers as the most extensive gamblers in the world. Those are harsh words, I understand; but wait, Mr. President. It is time that the people have these things exposed to them in all their nakedness and deformity. On page 16 Mr. Clews says: 5 The club has already issued $2,000,000 in 6 per cent bonds, with the proceeds of which the site for their club building was purchased. Then they invested a large amount in the erection of the building, and now this dispatch tells us that they have put on an additional mortgage of $2,000,000 for the purpose of furnishing it, putting up finishings of marble and the most costly woods in the world. In the same paper, on the same day, I saw a description of the balls, the costly revelries that that class of men in New York City indulge in. These are the men, I repeat, with whom our executive officers confer—half a dozen speculators who rule the country with an iron hand. It is time, Mr. President, that we dissolve partnership with Wall street. Since the dawn of history the money-changers have been against the people, always against the people and for themselves. It has been reserved for a Christian civilization in the closing years of the nineteenth century to throw a garb of respectability about the business of the usurer. It may seem a little harsh to characterize those people as I have done. Let me quote the language of the distinguished Senator from Indiana [Mr. VOORHEES] delivered in this body the day before yesterday upon the same subject. graph of his speech: The Senator says in the second para- For the last five months and a little more, the cry of the pessimist— And as he used that word and paused a moment to breathe I straightened myself, while sitting near him, expecting a thunderbolt at my devoted head and at the people for whom I am speaking, that we were to be termed the pessimists, although I Wall street has furnished the money that has set the wheels of industry had taken advantage of many occasions to deny that there was in motion over the vast continent, and in one century has brought us any truth in such a charge so far as we were concerned. But abreast, in the industrial arts, of countries that had from one to two thou- the Senator proceeds, and says: sand years the start of us. For the last five months and little more, the of the pessimist, the Claiming the progress of our American civilization, grand as voice of the prophe t of financial aevil, and the wail crythe apostle of national of it is, to be the output and the legitimate offspring of this gam- bankruptcy have all been heard in the land. These sounds of warning and menace against the authorities of this Government have gone up from all bling institution in the very heart of our country. It must be galling to some of these people that we are now the most available candidates- Speaking of the people of other countries— for the commercial and industrial supremacy of the world, and we have obtained this position, in a great measure, through the instrumentality of Wall street as a civilizer. Then I refer, without reading it, to the portion of chapter 3, beginning on page 16, which I have marked in red, to show the methods by which those men accumulated their vast fortunes; and he speaks of them as having grown gray in their business. He says that they will come down from their comfortable homes in the time of panic, and these panics occur with reasonable certainty three or four times every year. They wait until they see a cloud no larger than a man's hand presaging the coming of a storm in the financial world. Then, he says, they go out of their homes like spiders in advance of a storm. They go down to their offices and rake in a few million dollars that somebody else has lost and then retire again to the bosom of their happy families. These men are fortune-wreckers. They think no more of throwing a mortgage of fifteen, twenty, or one hundred million dollars over a railroad, or county, or State, or a nation than they do of eating an oyster for breakfast; and these are the class of men from whom we seek advice. This is what Mr. Clews says of them: But few gain sufficient experience in Wall street to command success until they reach that period of life in which they have one foot in the grave. When this time comes these old veterans of the street usually spend long intervals of repose at their comfortable homes, and in times of panic, which recur sometimes oftener than once a year, these old fellows will be seen in Wall street hobbling down on their canes to their brokers' offices. Then they always buy good stocks to the extent of their bank balances, which have been permitted to accumulate for just such an emergency. The panic usually rages until enough of these cash purchases of stock is made to afford a big "rake-in." When the panic has spent its force, these old fellows. who ha ve been resting judiciously on their oars in expectation of the inevitable event, which usually returns with the regularity of the seasons, quickly realize, deposit their profits with their bankers, or the overplus thereof, after purchasing more real estate that is on the up grade, for permanent investment, and retire for another season to the quietude of their splendid homes and the bosoms of their happy families. If young men had only the patience to watch the speculative signs of the times, as manifested in the periodical egress of these old prophetic speculators from their shells of security, they would make more money at these intervals than by following up the slippery 44 tips "of the professional "pointers" of the stock exchange all the year round, and they would feel no necessity for hanging at ithe coat tails, around the hotels, of those specious frauds who pretend to be deep in the councils of the big operators and of all the new " pools " in process of formation. I say to the young speculators, therefore, watch the ominous visits to the street of these old men. They are as certain to be seen on the eve of a panic as spiders creeping stealthily and noiselessly from their cobwebs just before rain. If you only wait to see them purchase, then put up a fair margin for yourselves, keep out of the "bucket shops" as well as the "sample rooms,' 1 and only visit Delmonico's for light lunch in business hours, you can hardly fail to realize handsome profits on your ventures. What else is there about this? We read the other day, all of us, that in the city of New York there is a club known as the Millionaire Club. Seven hundred of the wealthiest men in the city belong to the club, of which J. Pierpont Morgan is president. 303 those financial centers where money, its gains and its power, constitute the chief objects of human worship, and from those— Not from our poor fellows who dig in the soil and among the rocks, but— from those centers have also emanated the cruel edicts of great financial corporations, commanding a stern contraction of the currency, a sudden and harsh shrinkage in its circulation, and the consequent inauguration of a panic, a distress period in the public mind. And not satisfied with that presentation of the case, not satisfied with that arraignment, harsh as it was, after again calling attention to the good quality of our public credit, the Senator in the third paragraph following, says: Not only do the traffickers in money and the permanent investors of capital hunger and thirst after all the Government bonds now in existence, but their chief complaint against the present Administration is that the President and his very able Secretary of the Treasury have refused their demand to issue at least there hundred millions more. This additional block of national indebtedness, increasing in a time of profound peace the interest-eating burdens of American labor, would be hailed with the keenest delight and swept with miser enjoyment and avidity into unpatriotic vaults by the very parties who have most loudly and continuously declared, ever since the present Administration came into power, that the credit of the Government was in deadly peril and its Treasury practically bankrupt. I think, Mr. President, with the views of the Senator from Indiana added to mine, we can let Wall street rest a few minutes at least. And now what kind of advice do they give us? Their advice to the President was, "repeal the Sherman law," and the bill to which l a m speaking was presented in due course of proceedings. I have here a letter which I have no doubt was sent by copy to every other member of this bodjr. It is from the same gentleman whose named is appended to this book as its author, Mr. Henry Clews. It is dated New York, August 16, 1893. He says: To insure the repeal of the Sherman silver law it may not unlikely be necessary from present appearances— Yes, I should think so— to offer as a compromise some measure that will continue the recognition of silver as a money metal, in which event why not reenact the Bland silver law with the necessary amendments, changing the parity of the dollar to either 22 to 1, or 24 to 1? Why not reenact the Bland silver law that was repealed two years ago in order to give us what we now have? In that c a s e - Here is the reason, Mr. President. He answers it himself— In that case the monthly purchases of silver would be at the discretion of the Secretary. That is it precisely; it would be 44 at the discretion of the Secretary." You remember, Mr. President, and so do the Senators who are honoring me with their attention, how the Bland law was executed. It was on the statute books a little over twelve years, and during that entire period the law was never executed to its maximum nor beyond a few dollars in advance of the minimum. As Mr. Clews recites very properly, the Secretary was directed to purchase at least $2,000,000 worth of silver bullion, CONGRESSIONAL EECOBD. 6 and he was directed to purchase not more than $4,000,000 worth. chusetts [Mr. HOAR], we in the West are! not alone to blame in this matter of sectional discussion. I have here something Not less than two nor more than four. As a matter of fact, while the Secretary did have the discre- which is but a repetition of many similar expressions that I have tion which Mr. Clews wants to clothe him with again, to coin found in the metropolitan press of the East, It is from the New $4,000,000 worth a month, he gave us but $2,000,060 a month in- York World: stead of $4,000,000, as he ought to have done, and by that means The strength of this organized oppositionkept away from the people during the period of the operation Speaking of the opposition to the repeal of the Sherman law— of that law about 375,000,000 silver dollars that they were enti- and its inspiration come primarily from the States of Nevada, Colorado, tled to. They would have secured that much more than they Montana, Idaho, Wyoming, and the two Dakotas. did secure if the law had been executed. The writer omits Kansas and Nebraska, who are of the same The total amount of silver bullion purchased under the Bland family with the hardy mountaineers; and I say to them here act (act of February 28, 1878) to August 12,1890, when the Sher- now, speaking for the people of Kansas without regard to party man law took effect, was 323,635,576 standard ounces, costing affiliations, we are their neighbors and their friends. Their God $308,199,261, an average of $1.05 per fine ounce. The number of is our God and we worship in the same tabernacle with them. silver dollars coined out of that bullion was 378,166,793. If the W e will defend them in their mountain gorges to the last, and maximum amount of $4,000,000 worth of bullion had been pur- when we get through with this, fight and their mines are open chased and coined every month during the time the law was in we will send them our wheat and our corn and our cabbage and force instead of $2,000,060, the total number of dollars coined our potatoes and w e will be their friends forever. The writer would have been about 753,000,000, or an increase of about $375,- goes on to say that: 000,000 above what was actually coined. These seven States have a total population, according to the Eleventh CenMr. Clews, one of the class who advise our public officers, asks sus, of only 1,146,735. Yet they have fourteen Senatorial votes against two us, inasmuch as they can not get rid of silver, to go back to the for New York, with its 6,000,000 inhabitants. Bland law and let the Secretary of the Treasury coin just as And that writer was then about a hundred miles from the home many dollars as he pleases, and send out silver certificates upon of my friend from Rhode Island [Mr. DIXON], whose splendid little them, and then, as was so well said by my distinguished friend State, with all its romantic history, is about as large as two of our from Iowa [Mr. ALLISON] yesterday, they are not lawful money; Western counties. you do not pay any taxes upon them; you can not pay your debts These seven States, with less than a million and a quarter population all with silver certificates unless your creditor is willing to receive told, counterbalance in the Senate New York, Pennsylvania, Massachusetts, Ohio, Illinois, Michigan, and New Jersey, with their population of 24,385,760. them; and if he is a money lender he sticks gold into the note. Then he goes on in the concluding paragraph and asks: That is the kind of advice we get! Why should those have such preponderence of power, a Mr. President, this kind of treatment of a vital matter is breed- power so wholly out pocket boroughs their numbers or their importance in of proportion to ing bad blood in some parts of the country and insolence in others. any other way? The people at Denver, wild with excitement and under the inThe same day I picked up the New York Herald and I find a fluence of a temporary invasion of unemployed workmen, fearing complimentary reference to the Senator from Idaho [Mr. DUthe worst, voiced in the language of their governor, patriotic as BOIS]. If he will give me his attention a moment it may be any man in the country now or in past years, let loose some wild interesting to him to hear what the Herald had to say about him expressions which were thrown out upon the wires, and the peo- in connection with the same sort of criticism that I read from ple were led to believe that the citizens of Colorado, always a the World: loyal and law-abiding people, were upon the verge of revolution. What rubbish— The metaphors of language at such times must be passed over. The writer says— If we can smother the conduct of a Government agency to-day in DUBOIS to talk of people!" the form of United States banking^ institutions, surely we can for Mr. suppose the scattered"battling for the rights of his own the teemDoes he population of Idaho could prosper if forgive a little looseness of expression among the miners, whose ing millions of the East, whose capital, brains, and labor make the country thoughts may be crudely expressed. After all, they are like the what it is, were to be immersed in irretrievable ruin? jewels that they dig from the mountain. Take away the dross When I read that I was moved to take up the statistical record and you have the pure metal left. Let our country get into war, of Idaho, Kansas, Montana, Nebraska, Nevada, Colorado, North nobody would come quicker than those boys who work in the Dakota, South Dakota, Washington, and Wyoming. I find that mines from day to day and feed their little families upon the" pro- the population of those ten States amounts to 4,000,000 and over, ceeds. made up in large part, as the Senator from Idaho said the other There is another sentiment sometimes expressed that is equally day in choice language, of the best brain and muscle of the Eastto be deprecated and to be discouraged. It is the attempt—I do ern States. They are not foreigners, such as we find to-day in not know that it is an attempt, but it has the effect of arraying many of the large business establishments and hotels in the cities one section of the country against another. I heard the other of Boston, New York, and Philadelphia. day a gentleman not connected with the party to which I belong, Go out upon the magnificent prairies of Kansas and of Nebraska either, say that the two great parties of the country will soon and you will find the very best form of American manhood and divide upon the Rocky Mountains. I heard another man say womanhood there. So it is all through that splendid region. that Mason and Dixon's line will be turned half way round, so W e are Americans all. There may be some, and there are a that, instead of lying between the North and the South, it will lie few, who were born in other lands, but they came here to be a between the East and the West. Mr. President, let us all here part of this thriving and prosperous people; they have assimilated in this Chamber, and wherever our influence can extend, dis- themselves with our population; they are citizens of the States courage all such language as that. and of the Republic; they vote with us; we elect them to office; I would not array one section against another. I would heal they are honored and respected citizens. In addition to the four million population, I find that their all the wounds between different parts of the country. You could not blot out the little State of Massachusetts without ex- aggregate valuation in 1890 of taxable property—not the estipunging a part, and a very important part, of American history. mated, but the actual valuation of their property for taxable You could not blot out of our history the city of New York with- purposes—was nearly a thousand and a quarter million dolout taking away a large part of our most valuable history; nor lars—$1,187,156,990. I find that the six New England S t a t e s could you sink the old Keystone, the home of my childhood, Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, without sinking to a very great extent the wealth of this coun- and Connecticut—have a population of 4,700,745, just a little try, and its enterprises, and its important historic recollections. more than the population of the ten States to which I have called Let us be for the whole country; and whenever we find a cus- attention. The value of their property is $3,558,215,480, just tom, no matter whether it be in the West, or the East, or the about three times as much as that of the people in the ten States North, or where it may be, that is wrong, let us expose it; let us whose names I have mentioned; and yet Kansas was admitted fight against it; let us undermine it and destroy its influence. into the Union in 1861, Nebraska several years later, Colorado How ably and eloquently my distinguished friend from Min- in 1876, and Idaho, the Dakotas, and the other new States only a nesota [Mr. WASHBURN] fought here against the great gamblers few years ago. in Chicago last fall, and how eloquently the able Senator from Tnose people have accumulated yast amounts of wealth in the Louisiana [Mr. WHITE] defended them! It is a condition, not a ten census years that have just passed, amounting in all to $753,section, that confronts us. I have not yet said a word against 709,711. Their progress, their industry, their loyalty, their enthe East. There are customs and practices in the East that are ergy, their sobriety calls for commendation rather than for condestroying this country, and it is those customs, those practices demnation. They are yet in their swaddling clothes, while New that I am contending against. It is that that I would expose in England is two hundred and fifty years old. all its deformity before the American people and before the As to the representation in the House of Representatives, those world so that we may understand what ails us. ten States have 24 members and they have 20 Senators, while As was expressed a few days ago by the Senator from Massa- the six New England States, with about the same population, 203 15 CONGRESSIONAL EECOBD. In order that there may be no question about the correctness of the figures which I have given, I will insert as part of my remarks, Census Bulletion No. 104, under date of August 22,1891, being a preliminary statement showing the assessed valuation of real and personal property of the several States and Territories for 1880 and 1890. have 27 Members and 12 Senators—a total representation of 44 for the ten new States against 39 for the six old ones. The area of the ten States is 921,500 square miles, while that of the six is a little over 66,000 square mfl.es—a proportion of 14 to 1.' I hope we shall hear no more invidious distinctions here or elsewhere concerning the pocket boroughs of the West. [Census Bulletin No. 104, August 22,1891.] Preliminary statement showing the assessed valuation of real and personal property of the several States and Territories for 1880 and 1890. Total assessed valuation. Increase of assessed valuation. States and Territories. 1880. Total. Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia., Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming 1890. $16,902,993,543 $24,249,589,804 $7,346,596,261 122,867,228 9,270,214 86,409,364 584,578,036 74,471,693 327,177,385 59,951,643 99,401,787 30,938,309 239,472,599 6,440,876 0786,616,394 •727,815,131 398,671,251 160,891,689 350,563,971 160,162,439 235,978,716 <2497,307,675 1,584,756,802 517,666,359 258,028,687 110,628,129 532,795,801 18,609,802 90,585,782 29,291,459 164,755.181 572,518; 361 11,363,406 2,651,940,006 156,100,202 8,786,572 1,534,380,508 52,522,084 1,683,459,016 252,536,673 133,560,135 11,534,958 211,778,538 320,364,515 24,775,279 86,806,775 308,455,135 23,810,693 139,622,705 538,971,751 13,621,829 74,213,213 197,080,441 12,164,553 21,434,767 85,999,133 5172,408,497 486,524,291 61,071,102,327 114,439,632 188,911,325 31,736,521 358,913,906 14,182,758 674,134,401 53,905,754 153,307,541 45,988,629 76,926,938 377,366,784 - 137,894,185 19,140,429 25,581,305 $59,200,142 <?727,416,252 55,056,995 782,872,126 79,646,997 6478,318,248 129,702,022 290,593,711 162,051,535 512,615,506 74,158,341 234,320,780 73,150,385 309,129,101 015,122,851 / 482,184,824 569,377,824 2,154,134,626 427,783,641 0945,450,000 330,503,056 588,531,743 46,890,777 6157,518,906 053,547,952 786,343,753 87,783,090 106,392,892 94,184,523 184,770,305 04, 628,074 24,663,385 87,966,835 252,722,016 115,790,826 688,309,187 34,677,604 646,041,010 3,775,325,938 1,123,385,932 55,597,085 212,697,287 69,607,964 h78,394,536 243,777,949 1,778,138,457 366,025,731 2,592,841,032 321,764,503 132,182,638 131,592,587 347,510,103 7*695,842,320 104,758,750 161,551,328 362,422,741 6124,795,449 169,927,587 592,890,719 631,431,495 113,503,647 69,227,830 <21,877,497 120,057,629 135,731,565 375,477,805 79,783,471 74,744,553 53,967,606 100,984,756 30,304,882 153,918,968 17,809,668 Population. 1880. 50,155,783 62,622,250 1,262,505 40,440 802,525 864,694 194,327 622,700 146,608 177,624 269,493 1,542,180 32,610 3,077,871 1,978,301 1,624,615 996,096 1,648,690 939,946 648,936 934,943 1,783,085 1,636,937 780,773 1,131,597 2,168,380 39,159 452,402 62,266 346,991 1,131,116 119,565 5,082,871 1,399,750 36,009 3,198,062 174,768 4,282,891 276,531 995,577 98,268 1,542,359 1,591,749 143,963 332,286 1,512,565 75,116 618,457 1,315,497 20,789 1,513,017 59,620 1,128,179 1,208,130 412,198 746,258 168,493 230,392 391,422 1,837,353 84,385 3,826,351 2,192,404 1,911,896 1,427,096 1,858,635 1,118,587 661,086 1,042,390 2,238,943 1,301,826 1,289,600 2,679,184 132,159 1,058,910 45,761 376,530 1,444,933 153,593 5,997,853 1,617,947 182,719 3,672,316 61,834 313,767 5,258,014 345,506 1,151,149 328,808 1,767,518 2,235,523 207,905 332,422 1,655,980 349,390 762,794 1,686,880 60,705 Assessed valua- Increase Increase tion per capita. per cent percent of asof valua- popula1880. 1890. tion. tion. $337.01 a$387.62 43.46 24.86 60.40 131.22 99.53 83.23 153.67 9.70 23.66 54.23 148.65 57.58 297.17 d7.53 7.56 19.98 80.61 46.23 46.30 31.00 d3.04 35.93 82.64 128.00 42.39 47.59 471.70 103.97 015.80 53.39 20.22 305.17 42.36 36.26 792.21 15.89 19.84 47.43 40.58 39.72 112.12 19.84 14.93 29.71 45.24 19.14 158.77 24.32 10.82 17.68 43.27 12.73 19.01 1.87 11.49 25.57 27.92 66.74 13.96 23.56 237.49 134.06 026.51 8.51 27.74 28.46 18.00 15.59 395.05 14.83 529.14 216.11 493.12 .54.02 931.28 27.41 114.83 01.03 400.21 1,040.82 196.61 64.09 311.27 117.20 503.88 322.84 485.98 86.10 218.86 17.50 357.18 424.12 222.77 21.70 351.47 35.06 517.77 130.74 79.53 22.77 24.94 15.63 234.60 14.60 40.44 44.42 .04 9.48 365.13 23.34 28.23 192.01 97.32 229.23 107.67 676.05 383.23 525.42 408.92 559.62 114.80 155.28 197.51 255.57 367.90 245.39 161.52 212.63 170.40 363.64 531.91 888.77 316.24 330.48 97.76 245.71 475.24 200.23 470.42 474.81 506.15 95.04 521.74 111.52 238.06 479.78 458.30 480.95 439.99 665.42 196.53 205.39 303.15 190.11 357.08 250.18 203.63 275.80 209.48 467.61 462.58 962.12 451.53 452.08 122.15 293.50 805.04 174.49 538.96 671.19 476.36 299.76 629.45 131.46 429.04 484.20 300.52 393.07 913.23 134.15 117.38 137/31 201.27 172.09 261.24 203.93 316.99 225.76 333.69 655.24 130.26 359.52 152.82 a The assessed valuation of Oklahoma not being given, the population of that Territory is omitted in calculating the assessed valuation per capita for 1890 of the United States. 6 Annual report of 1889. c The State board of equalization declares that in 1880 the assessed value was 50 per cent and in 1890 only 25 per cent of the true value; hence the reduction. d Decrease. e Valuation for local purposes; amount for State purposes, $459,187,408. f Valu ation for State purposes; amount for local purposes not reported. Q Assessment of 1886: assessment made every five years. n Not including unorganized counties, Under the protection of our laws, Mr. President, an aristocracy of wealth has grown up among us, and upon that subject I wish to quote a passage in a speech which I had the honor of delivering in this body on the 12th day of May, 1892. It describes the nature and effect of this wealth of aristocracy of which I have spoken. levies tribute on toil, collects revenue from trade, has an interest in every State, and a lien on every town. It "moves the money that controls the affairs of the world," says a distinguished banker—Mr. Henry Clews. It wields a " mighty power," he says, a power greater than that of monarchies. That is the power which demands gold in payment of debts payable in lawful money; the power that will not accept the bonds of a people whose mountains are rich in gold and silver, miless they are made payable, principal and interest, in gold. That is the power that demanded 12 per cent annual interest on loans of bank paper to the Government at a time when farmers and mechanics, merchants and clerks, and field and shopmen all over the country volunteered their bodies for use in war; the power that depreciated our currency that it might purchase our bonds at a discount, then demand payment in gold; the power that banks on nontaxable bonds and charges 1 per cent a month on its paper loans; the power that has grown rich on the losses and misf ortunes of the people; the power that has usurned the functions of government; that has wrested the prerogatives of voters from their grasp; that nineteen years ago demonetized silver, and has three times since prevented its restoration to its ancient place as one of the money metals; that kept from the people $375,000,000 of silver coin that they were entitled to under the Bland law; that withdrew $240,000,000 of national-bank notes at a time when the people needed a large and steady increase of currency. We have fostered and fed and fattened men at the expense of the people until they have become a standing menace to popular liberty. Fabulous fortunes have been gathered in the course of a few years. We have many men whose checks are good for a million dollars each at any bank where that amount of money is on deposit. The interests of all these people are virtually the same. Their combined influence is often greater than that of the Government itself, and it grows greater every year. So powerful has this great moneyed interest become that we find it operating in the business affairs of the country everywhere; in the hovels of the poor, the little stores of the country merchant, on the farm, in the shop, as well as in the great manufacturing establishments, banks, and clearinghouses. It amounts to an all-pervading force, reaching out through every avenue of trade, through every channel of commerce, into every department of business, into the details of every vocation, into every phase and condition of life. It owns every railroad and steamboat line, every telegraph and Then in this hour of need to whom shall we look for counsel? cable, every packing house, elevator and merchant mill, every bank and stock exchange, all the great newspapers of the country, and the important I have been criticising the class of persons with whom our public agencies for news; it has local attorneys at every county seat, trained law- officers had conferred. Shall we look to them still further for yers at every court, skilled lobbyists at every capital; it dictates party plat forms, controls important nominations, and laughs at the popular will; it our counsel? To the men that fatten upon the people who toil, CONGRESSIONAL RECORD. 8 8 or shall we look to the people that produce the wealth of the country and pay the taxes? Shall we look to the bankers who expand and contract the currency at their pleasure and kindly transact the people's business for them at 1 to 4 per cent per month, or shall we turn to the people who have commissioned us, take them into our confidence, and listen to their complaints and act on their demands? Do you tell me, Mr. President, that only professional financiers shall be heard, and that the demands of boards of trade, stock exchanges, and other commercial bodies shall be taken as the voice of the people? I do not believe that it is too much to say that 75 per cent of the bankers of this country to-day, take them all as a body, have never given twenty-four hours' solid study to the subject of finance. They understand how to shave notes, how to collect interest and rents, but they know nothing about the foundation principles upon which monetary systems are reared. Judging by our past legislation, these advisers have not been safe ones. Immediately after the great war they insisted upon a contraction of the currency, which cost our people in the end more than the great war cost us, notwithstanding that that in dollars and cents amounted to at least $10,000,000,000 when Lee surrendered or was captured in 1865. Since that time we have paid about $2,000,000,000 in principal of our debt. We have paid a good deal more than that in the way of interest. We have paid about $70,000,000 in premiums and advance interest, and to-day we have a pension roll of over a million persons, requiring a yearly expenditure of from $150,000,000 to $160,000,000. Yet, I say, following the advice that was given us by the financiers, cost us twice as much as the whole war in its active operation cost us. I mean that it has cost us that much in the depreciation of property. There has been a constant effort on the part of the Treasury Department of late years to conceal from the people the true facts in relation to the contraction of our currency. Our debts were all contracted with the understanding that they were to be paid with paper. The people had no money but paper. Our contracts were made with reference to the paper standard, and so we continued until what was called " the resumption of specie payment," under the act of 1875, which was to take effect on the 1st of January, 1879. Notwithstanding all our business was done with paper, and our promises to pay were promises to pay in paper, still, at the conclusion of the war, Wall street demanded payment in coin. During the fiscal year 1866 something near $400,000,000 of our currency was withdrawn from circulation and most of it put into interest-bearing bonds. During the next three years, some $900,000,000 more currency was withdrawn and put into bonds, so that at the beginning of the fiscal year 1870, about thirteen hundred millions of our paper money had been withdrawn from circulation and the currency volume contracted to that extent. At the beginning of the fiscal year 1866 (July 1,1865) the amount of paper money in circulation in the United States was $2,122,437,841.02. During the year, as appears from the report of the Secretary of the Treasury for 1866, on page 164, $211,239,515.41 was " retired, counted, and destroyed," as follows: Old issue demand notes New issue legal-tender notes One-year 5 per cent notes Two-year 5 per cent notes Two-year 5 per cent coupon notes Six per cent compound interest notes Gold certificates First issue fractional currency Second issue fractional currency Third issue fractional currency Discounted on above for mutilations - $200,440.75 6,764,370.65 6,316,104.50 2,506,427.50 33,363,097.50 81,246,829.00 64,913,800.00 2,897,307.88 7,598,479.78 5,414,844.49 17,813.36 211,239,515.41 During the year $181,096,804 was retired from circulation, but not destroyed, as appears from page 168 of the same report, as follows: Demand notes redeemable in coin One-year 5 per cent notes Two-year 5 per cent n o t e s — Two-year 5 per cent coupon notes Three-year compound-interest notes $288,121 2,151,287 5,209,335 1,078,550 172,369,511 181,096,804 On the 30th day of June, 1866, as appears on pages 25 and 26 of the report, the amount of Government paper money out was $1,550,506,311.61, as follows: Compound-interest notes due 1867-'68 Treasury notes, seven-thirties, due 1867-68 Temporary loan, ten days' notice Certificates of indebtdedness past due United States notes Fractional currency Gold certificates of deposit $159,012,140.00 806,251,550.00 120,176,196.65 26,391,000.00 400,891,368.00 27,070,876.96 10,713,180.00 1,550,506,311.61 303 At the beginning of the year the amount of national-bank notes out, as appears from the Treasurer's report, was $179,595,210. Adding these several amounts together we have a total of paper money out on the 1st day of July, 1865, of $2,122,437,841.025, as above stated. The total amount of money in the country June 30,1870, was $700,645,668. The currency contraction to this extent, in five years, while population and business were rapidly increasing, cost the people fully one-half the value of their property and doubled the burden of their debts. But what was lost by the people was gained by a class, and they are the class of which I have spoken—the gold speculators. Let us not deceive ourselves, Mr. President. We are face to face with the gravest problem of the century. No amount of partisan discussion as to where the responsibility for this condition lies will relieve the situation, nor remove from our path the plain duty that we owe to the people in this supreme hour of their need. The situation is full of peril. Dangers beset us on all sides. Involuntary idleness soon brings want, and want brings desperation. Nothing but food satisfies hunger. In this great crisis the country has no use for the partisan. Against him who would strengthen his party at the expense of his country, the verdict*of his fellow-citizens will be, "Away with him; crucify him." But what shall we do? First, let us do what the people ask us to do; give them money. That is what they are asking for. The farmers want money; the manufacturers want money; the laborers want employment in order that they may get money; the bankers themselves want money, and that is all the people are asking for. Let us pass a bill giving them money. I had the honor a few days ago to introduce a bill here for the purpose of issuing$250,000,000of money. It has not yet been reported, and I dare say it will not be. That is the quickest way out, and that is my advice. Then, second, let us have free coinage of silver. What does free coinage mean? A banker asked me the other day, apologizing at the same time, what free coinage meant. When I explained to him that it was simply taking silver bullion in proper condition for mintage to the mints and having it formed into coins for him and taking his coin away, " Why," said he, "that is just like taking wheat to the mill and having it ground into flour." Precisely so, and that is what we are asking. But we are told that we can not have free coinage of silver. No, not now. They will see us later. Mr. President, my position has been taken upon this subject. It is free and unlimited coinage of silver at the present ratio of 16 to 1—that or nothing. It is a matter of principle upon my part, and upon principle I have no compromise to offer, and will accept none. I have heard since this discussion has com© up men of distinction say that they prefer a ratio of 15£ to 1; I have even heard it put down as low as 11 to 1. I can not understand, in view of our past history, why we shall measure silver with gold, rather than measure gold with silver. In 1831 a committee of this body, composed of distinguished men, was made up, charged with an investigation of the history of our coinage, with a view of enacting some new and important legislation upon the subject. That committee reported that our coinage was gold and silver, and that the object of the committee had been to conform the gold currency to the silver standard, and I assert in this presence that we have been measuring gold by silver continually from the beginning of our Government until 1873, and that at this hour the law of the land is that 371i grains of pure silver is the standard of our dollar, notwithstanding its representative is to be made out of 2 5 ^ grains of standard gold. The act of 1792, in section 9, prescribed the standard of our money to be a dollar, not silver or gold, but a dollar; that the dollar piece should contain 371^ grains of pure silver, and that the value of the dollar should be the value of the Spanish milled dollar. The value of the Spanish milled dollar was ascertained by melting up a thousand of them and dividing the product by a thousand. The quotient was 371i grains. That was the value of the dollar authorized and coined by the fathers of the Republic. It means that either 37li grains of silver—that and that only—shall be the value of the dollar, or else it means the value of the products of the country which that much silver would buy. In either case we have the advantage in this argument. Mr. MITCHELL of Oregon. May I ask the Senator a question? Mr. PEFFER. Yes, sir. Mr. MITCHELL of Oregon. I wish to know if it is not a fact that the prices of wheat and flour and cotton, as well as of most agricultural products for the last twenty years, commencing before the demonetization of silver and following along down to the present time, have not been regulated and controlled with an accuracy which is remarkable by the price of silver bullion and not by the price of gold? 9 CONGRESSIONAL EECOBD. Mr. PEFFER. Yes, Mr. President, that is true, and there is something more in the same connection that is true; I thank the Senator for calling my attention to it at this particular place in the discussion. A table of a large number of articles has been compiled by the eminent statistican, Mr. A. Sauerbeck, who finally settled upon forty-five of them. I can not now enumerate all of them, but I am expecting before my remarks go to print that I shall have a list of all of the articles, so that they can be inserted as part of my remarks. Forty-five of them are articles in daily use among the people of the country. Taking them and getting the greatest common divisor of their value as people use them, as the starting point, as the unit, and beginning back in 1874 and coming on down to the present time, the prices of that unit have dropped from year to year, and silver has kept pace in uniform ratio substantially from that time until the present. The following table gives in parallel columns, for the years 1874-'92, (1) the index numbers for the 45 commodities, and (2) the index numbers of silver for the same years: Mr. Sauerbeck?8 index numbers. Year. Index numbers Index of 45 number principal of silver. commodities. 102 96 95 94 87 83 88 85 84 82 76 72 69 68 70 72 72 72 68 1874 1875 1877 1882 1884 1888 1889 1890 1891 95.8 93.3 86.7 90.2 86.4 84.2 85.9 85.0 84.9 83.1 83.3 79.9 74.6 73.3 70.4 70.2 78.4 74.1 65.4 •Lowest price of wheat on record. Lowest prices of stocks since 1884. June and July lowest price of wool in its history. Fall in price of opium 17 per cent in one week. Lowest price of silver on record. Between 1850 and 1870 there was a slight rise in the value of commodities, and during the same period silver was at a slight premium compared with gold. You talk to us about a dishonest dollar. I ask you whether a 70-cent dollar is any more dishonest than a 140-cent dollar or a 150-cent dollar? If you will lay down your 140-cent dollar beside our 70-cent dollar, and strike an average between them, and call that the dollar, then you may talk about an honest dollar, but until that time, I believe it would be better if we would follow the dollar that follows our products, and not the one that follows the banker's receipts. We only ask to have the old coinage law restored, as it existed before the act of 1873. In this connection, I desire, without going into a history in detail of our coinage, to include in my remarks a sketch which I prepared some time aero, giving a history from the beginning, in 1782, when the Continental Congress appointed a committee to look after the subject, and a final report was made in 1791 to the National Congress, with the concurrence of Jefferson and Madison, establishing our bimetallic system. HISTORY OF OUR MONETARY UNIT. As early as 1782 the Continental Congress instituted an investigation into the condition of the coins of the country. A t that time every one of the separate States had its own particular coins and values. The money of account was written in pounds, shillings and pence, the British style of counting, though the Spanish dollar was generally current. Mr. Robert Morris made an elaborate report to Congress on the subject, but nothing further was done about it until two years afterwards, when the matter was taken up and referred to a committee of which Thomas Jefferson was a member. Mr. Jefferson was not satisfiedwith the report of the financier, Mr. Morris, because, he said, while the principle was sound and was ingenious, yet the unit which he proposed was too minute for ordinary use, too laborious for computation either by the head or by figures. As Mr. Jefferson put it, u The price of a loaf of bread would be one-twentieth of a dollar, or 72 units, and a pound of butter would be one-fifth of a dollar, or 288 units." Some written correspondence passed between Messrs. Morris and Jefferson on the subject, and finally Mr. Jefferson wrote out his views in what he called " Notes on the Establishment of a 203 Mint." They were submitted to members of the Continental Congress, and finally reported to that body, and were in the end adopted as the rule of our coinage. The notes of Mr. Jefferson, to which reference is made here, may be found on page 162 of volume 1 of his works. In fixing the unit of money Mr. Jefferson laid down three rules: First, that it be of convenient size to be applied as a measure to the common money transactions of life; second, that its parts and multiples be in an easy proportion to each other so as to facilitate the money arithmetic; and, third, that the unit and its parts or divisions be so nearly of the value of some of the known coins as that they may be of easy adoption for the people; and, he added, " the Spanish dollar seems to fulfill all these conditions." Mr. Jefferson gave the following as his reasons for selecting the dollar for the unit: The unit or dollar is a known coin and the most familiar of all to the minds of the people. It is already adopted from South to North, has identified our currency, and therefore happily offers itself as a unit already introduced. Our publicdebt, our requisitions and their appointments, has given it actual and long position of the place of the unit. The course of our commerce, too, will bring us more of this than of any other foreign coin, and therefore renders it more worthy of attention. 1 know of no unit which can be proposed in competition with the dollar but the pound. But what is the pound ? 1,547 grains of fine silver in Georgia, 1,289 grains in Virginia, Connecticut, Rhode Island, Massachusetts, and New Hampshire, 1,031} grains Jin Maryland, Delaware, Pennsylvania, and New Jersey, 960f grains in North Carolina and New York. Which of these shall we adopt? To which State is that preeminence of which all are so jealous, and on which impose the difficulties of a new estimate on their corn, their cattle, and other commodities ? Or shall we hang the pound sterling as a common badge upon all their necks? This contains 1,718| grains of pure silver. It is difficult to familiarize a new coin to the people. It is more difficult to familiarize them to a new coin with a new name. Happily the dollar is familiar to them all, and is already as much referred to as a measure of value as their respective provincial pound. On the 15th day of April, 1790, the House of Representatives passed a resolution asking the then Secretary of the Treasury, Alexander Hamilton, to prepare a report concerning the establishment of a mint and the coinage of money, and in response to that resolution the Secretary prepared a report and presented it to the House on the 28th day of January, 1791. He sets out by saying that a plan for an establishment of this nature, that is to say, a mint, involves a great variety of considerations, intricate, nice, and important. The general state of debtor and creditor, all the relations and consequences of price, the essential interests of trade and industry, the value of all property, the whole income of both the state and individuals, are liable to be extensively influenced, beneficially or otherwise, by the judicious or injudicious regulation of this interesting institution. After discussing the importance of the subject and the interests involved he divides the subjects into six different heads, the first two of which are these: First, what ought to be the nature of the money unit of the United States; and, second, what the proportion between gold and silver, if coins of both metals are to be established. As to the first of these two divisions, the Secretary, after an elaborate discussion, came to the conclusion that the dollar ought to be established and maintained as the money unit 4 for the currency of the United States, and he used the word ' national," as a " national" coin; and he was of opinion that the dollar then generally current, namely, the Spanish milled dollar, ought to be used as the money unit, and it was made of silver. So we have the opinion of Secretary Hamilton that the unit of value for the United States ought to be a silver dollar—a national coin. As to the second proposition, whether the standard of money ought to be a single one or a double one, the Secretary was of opinion that we ought to establish and maintain the double standard, namely, gold and silver. He was aware, and called attention to the fact, that in the discussion of the subject by public men generally, our American statesmen largely leaned to the opinion that the standard ought to be single, and that silver. But the Secretary came to the conclusion that the double standard was better, and among the reasons he assigned the following: But, upon the whole, it seems to be the most advisable, as has been observed, not to attach the unit .'exclusively to either of the metals, because this can not be done effectually without destroying the office and character of one of them as money, and reducing it to the situation of mere merchr. ndise, which, accordingly, at different times, has been proposed from different and very respectable quarters; but which would probably be a greater evil than occasional variations in the unit from the fluctuations in the relative value of the metals, especially if care be taken to regulate the proportion between them, with an eye to their average commercial value. To annul the use of either of the metals as money is to abridge the quantity of circulating medium and is liable to all of the objections which arise by a comparison of the benefits of a full with the evils of a scanty circulation. After discussing at some length the probable results of a single standard, the Secretary concluded that the chief if not the sole effect of such a regulation would be to diminish the utility of one of the metals. He then proceeded to discuss the proportion in which the metals ought to be used; that is to say, what amount of silver in pounds or in ounces of weight should be equal to 1 pound or 1 ounce of gold by weight, and he came to the same con- CONGRESSIONAL EECOBD. 10 elusion t h a t S i r Isaac N e w t o n h a d a r r i v e d a t i n h i s report t o t h e treasury of G r e a t B r i t a i n i n 1717, t h e p r o p o r t i o n of about 1 t o 15. O n e u n i t of w e i g h t i n g o l d t o 15 of t h e s a m e u n i t s of w e i g h t i n 'Silver; a n d s u c h , i n fact, w a s t h e p r o p o r t i o n established i n our coinage law the n e x t year. T h i s r e p o r t of Mr. H a m i l t o n w a s b y h i m s u b m i t t e d to T h o m a s Jefferson, w h o w a s Jthen S e c r e t a r y of S t a t e , for h i s inspection and consideration. A f t e r a v e r y c a r e f u l r e v i e w and study of Mr. Hamilton's report, Mr. Jefferson made a few suggestions w h i c h w e r e i n t h e m a i n a c c e p t e d b y M r . H a m i l t o n , and t h e report as i t w a s finally p r e s e n t e d t o C o n g r e s s w a s a substantial a g r e e m e n t b e t w e e n M r . H a m i l t o n and Mr. Jefferson. If t h e r e was any differe n c e b e t w e e n t h e m i n r e s p e c t t o t h e s u b j e c t i t w a s upon t h e m a t t e r of a s i n g l e or a double standard. Mr. Jefferson i n c l i n e d t o t h e s i n g l e standard and t h a t s i l v e r , w h i l e Mr. H a m i l t o n pref e r r e d t h e double standard, t h a t of s i l v e r and g o l d . T h e report of Mr. H a m i l t o n i s found i n v o l u m e 3 of h i s w o r k s , b e g i n n i n g a t p a g e 149. H a v i n g a d o p t e d t h e s i l v e r dollar as t h e u n i t , t h e n Mr. Jefferson s u g g e s t e d t h a t w e o u g h t t o h a v e a t l e a s t four coins—one a g o l d e n p i e c e e q u a l i n v a l u e t o $10; second, t h e u n i t or dollar itself, of silver; t h i r d , t h e t e n t h of a dollar, of s i l v e r also; and, f o u r t h , t h e h u n d r e d t h p a r t of a dollar, t h i s t o b e m a d e of copper. A n d h e s u g g e s t e d t h a t p e r h a p s i t w o u l d n o t be amiss t o coin t h r e e m o r e p i e c e s of s i l v e r , o n e of t h e v a l u e of half a dollar, t h e o t h e r 20 c e n t s , and t h e o t h e r 5 cents. H e c o n c l u d e s h i s n o t e s i n t h e s e words: My proposition, then, is that our notation of money shall be decimal, ae scendmg at the liberty of the person noting; that the unit of this notation shall be a dollar; that coins shall be accommodated toit from $10 to the hundredth of a dollar. A s to t h e w e i g h t of a dollar, i t w a s finally a g r e e d t h a t i t should b e 371i g r a i n s of p u r e s i l v e r , w i t h s o m e a l l o y of copper. T h i s w a s incorporated i n t h e first c o i n a g e l a w , passed A p r i l 2, 1792. Mr. Jefferson's s u g g e s t i o n s t h r o u g h o u t w e r e a d o p t e d . H a v i n g p r o v i d e d t h e d e t a i l s for e s t a b l i s h i n g a m i n t , s e c t i o n 9 of t h e act p r o v i d e s as follows: SEC 9. And be it further enacted, That there shall be from time to time, struck and coined at the said mint, coins of gold, silver, and copper, of the following denominations, values, and descriptions, namely: Eagles—each to be of the value often dollars or units, and to contain two hundred and fortyseven grains and four-eighths of a grain of pure, or two hundred and seventy grains of standard gold. Half eagles—each to be of the value of $5, and to contain one hundred and twenty-three grains and six-eighths of a grain of pure, or one hundred and thirty-five grains of standard gold. Quarter eagles—each to be of the value of two dollars and a half dollar, and to contain sixty-one grains and seven-eighths of a grain of pure, or sixty-seven grains and four-eighths of a grain of standard gold. Dollars or units—each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four-sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver. Half dollarseach to be of half the value of the dollar or unit, and to contain one hundred and eighty-five grains and ten-sixteenth parts of a grain, or two hundred and eight grains of standard silver. Quarter dollars—each to be of one-fourth the value of a dollar or unit, and to contain ninety-two grains and thirteensixteenth parts of a grain of pure, or one hundred and four grains of standard silver. Dimes—each to be of the value of one-tenth of a dollar or unit, and to contain thirty-seven grains and two-sixteenth parts of a grain of pure, or forty-one grains and three-fifth parts of a grain of standard silver. Ha>i dimes—each to be of the value of one-twentieth of a dollar, and to contain eighteen grains and nine-sixteenth parts of a grain of pure, or twenty grains and four-fifth parts of a grain of standard silver. Cents—each to be of the value of the one-hundredth part of a dollar, and to contain eleven pennyweights of copper. Half cents—each to bo of the value of half a cent, and to contain five pennyweights and a half a pennyweight of copper. T h o m a s J e f f e r s o n m a y b e j u s t l y r e g a r d e d as t h e author of our m o n e t a r y s y s t e m . If h e was n o t t h e a u t h o r of t h e first c o i n a g e law, h i s v i e w s , a t l e a s t , a r e e m b o d i e d i n it. H e originated t h e d e c i m a l s y s t e m of c o i n a g e — t h a t i t s h o u l d g o b y tens; h e sugg e s t e d and a d v o c a t e d t h e a d o p t i o n of a s i m i l a r s y s t e m as t o w e i g h t s and measures, and m a d e a n e l a b o r a t e r e p o r t upon t h e subject i n connection w i t h h i s report on coinage. T h e Constitution, i n p r o h i b i t i n g t h e S t a t e s f r o m c o i n i n g m o n e y , contains a p r o v i s i o n t h a t n o S t a t e s h a l l m a k e a n y t h i n g e x c e p t g o l d and s i l v e r c o i n a l e g a l t e n d e r i n p a y m e n t of debts. A l l of our public m e n w h e n r e f e r r i n g t o our standard of m o n e y invariably used t h e w o r d s " g o l d and s i l v e r . " T h o m a s H . B e n t o n i n h i s T h i r t y Y e a r s i n C o n g r e s s r e f e r s to t h i s m a t t e r r e p e a t e d l y , u s i n g t h e words " g o l d and s i l v e r " as if t h e y m e a n t one and t h e s a m e t h i n g , u s i n g t h e m i n t h e s i n g u l a r number. A n d t h a t w a s t h e rule before 1873. I n f a v o r i n g f r e e and u n l i m i t e d c o i n a g e u p o n t h e o l d system, I d o b u t r e p e a t t h e d e m a n d s of t h e p e o p l e i n t h e i r local State and n a t i o n a l p a r t y platforms. I h a v e h e r e a l o n g l i s t of platforms i n 1390—Arkansas, California, Colorado, Florida, and g o i n g o n w i t h a n u m b e r of others, g i v i n g t h e p l a t f o r m s of t h e different parties, and c o m i n g d o w n to Kansas w h e r e w e are particularly s e n s i t i v e u p o n t h i s point—all p a r t i e s w i t h o u t d i s t i n c t i o n f a v o r i n g t h e f r e e and u n l i m i t e d c o i n a g e of s i l v e r . T h a t h a s b e e n t h e d o c t r i n e of D e m o c r a t s f r o m t h e t i m e of t h e i r party's b i r t h t o t h e present, and i n t h i s t h e y b u t followed t h e t e a c h i n g s of t h e i r g r e a t l e a d e r and t h e a u t h o r of our monetary 203 s v s t e m . A s far back as 1838 D e m o c r a t s , as a p a r t y , declared t h a t " G o l d and s i l v e r is t h e o n l y safe and c o n s t i t u t i o n a l c u r r e n c y . " I n 1880, i n t h e i r national platform, t h e y d e c l a r e d i n favor of '' H o n e s t m o n e y , c o n s i s t i n g of g o l d and s i l v e r , and paper conv e r t a b l e i n t o c o i n o n demand." T h i s d e c l a r a t i o n w a s r e p e a t e d i n t h e i r national p l a t f o r m i n 1884. D e m o c r a t s i n t w e n t y - t h r e e of t h e S t a t e s w h i c h h e l d S t a t e c o n v e n t i o n s i n 1890 declared, i n one f o r m or a n o t h e r , i n favor of f r e e c o i n a g e of s i l v e r . H e r e i s w h a t t h e y said: DEMOCRATIC PARTY PLATFORMS I N 1890. Arkansas.—'We denounce as iniquitous the silver bill as passed by the present Republican House of Representatives, as an attempt to demoralize silver and to build up the fortunes of the favored few, and we favor the free and unrestricted coinage of silver, and an increased volume of currency, restricted alone to the necessary demands of the country, which shall be a legal tender for all debts, public and private. We believe the power to issue and control the volume of the currency belongs alone tolthe Government, and that this power should not be delegated to or controlled by any other authority. California.—We favor the free coinage of silver, and demand that it be made an unlimited legal tender for all purposes, public and private. Colorado.—We condemn the present Administration for reckless and unnecessary waste of public treasure, by means of which the surplus fund accumulated under the wise and economic Administration of Grover Cleveland has practically disappeared, in place of which the country is threatened with a deficiency arising from the increase of expenditures over receipts for the present fiscal year. We demand the free and unlimited coinage of silver. Florida.—We persistently and continuously oppose the pernicious system of contracting the circulating medium of the country, as now conducted by the National Government. The consideration of the subtreasury bill in Congress indicates a desire unon the part of the whole people for an increase of a circulating medium, and that it is the duty of our members in Congress to secure the passage of some law that will give the r e q u i r e d relief. Idaho.—We tender our gratitude to the Democrats in Congress for their almost unanimous votes in both Houses for the free and unlimited coinage of silver, and congratulate the people of our new State that there is one great political organization in the country committed by its votes in Congress to a measure so essential to the prosperity of Idaho. The silver bill as enacted by the Republican Congress is a compromise in the interests of Wall street, clothes the Secretary of the Treasury with power to refuse to purchase bullion on the pretext that bullion is not offered at the market price, and enables him to bear the silver market by refusing to purchase except at his discretion and at such prices as he may determine. Illinois.—We demand that all unnecessary restrictions be removed from the coinage of silver. Indiana.—We denounce the silver bill, so called, recently enacted, as an ignominious surrender to the money power. It perpetuates the demonetization of silver and the single gold standard, whereas the interests of the people require the complete renionetization of silver and its restoration to perfect eonaiity with gold in our coinage. We demand the free and unrestricted coinage of silver upon the basis existing prior to 1873. Iowa.—Wo demand the free coinage of silver, and that it may be made a lesral tender for all debts, public and private, and denounce as unjust and dishonest the provision of the law recently enacted allowing parties to stipulate against payment in silver and silver certificates, thus setting one standard of value for the creditor and one for the debtor, one for the poor man, and the other for the rich man. Kansas.—We favor the free coinage of silver. We favor such change in our fiscal laws as will leave the control of our circulating medium of the country wholly in the hands of the Government. Massachusetts.—We recall with pride the financial policy of the Federal Government when the Treasury was under control of the Democratic party, when confidence was felt in the prudence and sagacity of its methods, and we ask the business men of this State to contrast that administration with the short-sighted and dangerous policy that has prevailed lately, a policy which has several times threatened and may at any time lead to a financial panic. Michigan.—We believe in the free and unlimited coinage of gold and silver, imhaiiroered by conditions as to the legal-tender qualities of either and unhampered by the proviso suspending coinage of silver after July 1. 1891. We condemn the Republican policy because it demonetized silver and still refuses the demand of the people for the restoration of silver to a complete equality with gold. Missouri.—We are in favor of the free and unrestricted coinage of silver and the increase of currency to meet the legitimate demands of trade, and we believe that the power to issue and control the volume of such currency should be assumed by the Government. Nebraska.—We favor the placing of the silver dollar on its former footing with gold coin in our coinage law, with equal legal-tender qualities, and we denounce as unjust and dishonest the law recently enacted as a discrimination in favor of the gold coin for the benefit of the money power, and we further declare ourselves in favor of the free coinage of silver. Nevada.—We declare for the free and unlimited coinage of standard silver dollars of the present weight and fineness, to bo legal tender for all debts, public and private, equally with gold. North Carolina.—The Democrats of North Carolina favor the free coinage of silver and an increase of the currency and the repeal of the internal-re venue system. * * * We demand the abolition of national banks and the substitution of legal-tender Treasury notes in lieu of national bank notes, issued in sufficient volume to do the business of the country on a cash system, regulating the amount needed on a per capita basis, as the business interests of the country expand, and that all money issued by the Government shall be legal tender in payment of all debts, both public and private. Ohio.—We favor the free coinage of silver with its present ratio with gold. Oregon.—We reaffirm the position which has ever been maintained by the Democratic party, that gold and silver are equally the people's money; we are opposed to all measures of discrimination against silver, and demand free coinage to supply the needs of business; and that all money issued by the Government be made legal tender for all debts, both public and private. South Carolina.—We demand the abolition of national banks, and that legal-tender Treasury notes be issued in sufficient volume to do the business of the country on a cash system, and that all money issued by the Government shall be legal tender in payment of all debts, both public and private. * * * (We favor) the free and unlimited coinage of silver, the increase of currency, and the repeal of the internal-revenue system. South Dakota.—'That we are in favor of the full remonetization of silver, the free and unlimited coinage thereof, and the issuance of coin certificates based thereon, which shall be a full legal tender. Tennessee.—We demand a currency of gold and silver, and also of paper convertible into coin at the option of the holder, and we demand the free CONGRESSIONAL BECORD. 11 The other day an old friend came to me and said: 11 1 have coinage of silver on the basis originallyfixedby law, and that it and the gold dollar shall be equally a unit of value. learned something; I have learned that there is no such thing Texas.—We are opposed to the continuance of the national banking system and demand the abolishment thereof as soon as by law the same can be done. as a money of the world. I have just sent my boy away on a # * * w e are in favor of the free and unlimited coinage of silver, and in- trip to Europe. He is going to ride among those people there dorse the action of our Senators and Representatives therefor. on his bicycle, and take a little exercise. I found, in order to West Virginia.—That the Democrats of West Virginia * * * declare that procure money with which the boy could travel, I had to pay a they are unalterably in favor of the free and unlimited coinage of silver. Wyoming.—'We demand the free coinage of silver, and we denounce the Re- discount. I had to run around from place to place, and finally I publican party for the enactment of a law which makes it discrotionary with succeeded in obtaining what he could use when he got to a forthe Secretary of the Treasury to demonetize silver. eign country." The same year Prohibitionists in Arkansas, Colorado, KanFrom the time when money was invented we have had moneysas, Michigan, Minnesota, Missouri, and Ohio adopted free-coin- changers and bankers, who have made i t a business to supply age resolutions, and independent voters in Iowa, Kansas, Min- the citizens of one nation with currency which will pass among nesota, Nebraska, North Dakota, and South Dakota declared in the citizens of another nation. That is one of the legitimate favor of unlimited silver coinage. functions of banking. Let these speculators procure their gold Republicans in their national platforms in 1884 and 1888 adopted just the same as I procure my flour, or as my friend from Orethe following resolutions: gon [MR. MITCHELL,] procures his lumber. We go into the flour 1884.—We have always recommended the best money known to the civilized market and into the lumber market and pay for it in the money world, and we urge that an effort be made to unite all commercial nations in of the country. If I am dealing with a citizen of Great Britain, the establishment of an international stand ard| which shall be for all the rela1 can easily procure the money which passes current in Great tive value of gold and silver coinage. 1888.—The Republican party is in favor of the uss of both gold and silver as Britain when I get there. money, and condemns the policy of the Democratic Administration in its I come now to a very interesting part of the subject, passingefforts to demonetize silver. over some points which I intended to make, and that is the matThat language was properly interpreted to mean free coinage ter of fiat money. I regret that the distinguished Senator from of silver equally with gold. Republican writers and speakers Massachusetts [Mr. HOAR] is not present. Perhaps some Senaso construed it. No other construction could fairly be put upon tor who takes the same view of monetary philosophy as he does the words. Bimetallism means the use of two metals alike as a will represent him. I hold in my hand a small bar of gold about money standard—gold and silver as one. Republican voters so 2 inches in length and one-third of an inch in width. It is standunderstood it, and they appealed to the country on that con- ard gold, Mr. President, 22 carats line, such as we put into our struction. The junior Senator from Colorado [Mr. WOLCOTTJ, coins. It is pure, with the 10 per cent alloy, ready for mintage. in a speech delivered here on the 17th day of June, 1890, stated It weighs exactly 258 grains. It is equal in weight with a gold the case thus: eagle. Now, I ask any Senator upon this floor—and I am sorry, The open and avowed views of ex-President Cleveland, while they con- I repeat, that the Senator Iron). Massachusetts is not here, for I vinced nobodv apparently, either in the Democracy or out of it, were yet wanted to submit the proposition to him, and I wanted to ask sufficient to paralyze the efforts of the friends of silver in both political par- him to take this gold bar in his hand, and, being an honest man ties to secure its full recognition. The day star of hope did not rise for us until the national convention of 1388. Then the Republican convention de- and a profound lawyer, to answer me the question: clared for silver. It seems droll now to recall the enthusiasm created in the If I owe to the Senator from Illinois [Mr. CULLOM] $10, can I far "West in the last campaign. The Republican candidate for the Presidency compel him in law to accept this gold bar in payment of the debt? had been in public life, but his utterances had not been many or particularly important. * * * B u t w e hunted u p t h e CONGRESSIONAL RECORD, and Can I compel any citizen "to accept it in the payment of a debt? being ardent and sanguine, and our hearts being illumined with hope, many Is there any Senator upon the floor who is willing to risk an anof us found here and there a phrase or a sentence which indicated a friendiv feeling for silver. And we labored among the farmers in the valleys and on swer to that question? We all know what the law is, and we all the plains and with the toilers in the mining camps in the mountain gulches knaw yesterday, when we were discussing the bill concerning the and canons with the^a as texts. national banks, what the law was, but nobody seemed willing to When it was proposed in 1890 to fasten upon the country the have it enforced. We all understand very well that this bar is Sherman silver law, which I then predicted would disrupt the not money in any sense of the word; yet Sena-tors who insist upon Republican party, and it will do so yet, our Republican friends the. intrinsic value of money, and who quarrel over the word in Kansas met in solemn convention and declared quite as sol- "fiat," say that the gold which is in our coin, not the coin itself, emnly that while the Sherman law was a step in the "right direc- but the gold which is in it before it is stamped, is worth as much tion,^'we, the Republicans of Kansas, favor free and unlimited as the coined metal. coinage of silver." So said my distinguished predecessor in this Now, I put the question before them in the presence of the Chamber just a few days before his successor was elected. American Senate, and I ask again, is there any Senator upon the You say we can not maintain the ratio of 16 to 1. Why not? floor who will say as a Senator that a piece of standard gold, Did we not do that thing about eighty years, and had anybody thoroughly tested, weighing as much as the eagle, can be forced complained? Have we ever been compelled to call to our aid the upon any creditor against his consent? Everyone will answer assistance of our brethren on the other side of the Atlantic? W e no, of course. I place before you now a gold eagle, coined according to the do not ask them to help us in our tariff affairs; we do not ask them to assist us in reference to any of our local matters. Now, when law. of precisely the same weight and fineness of the bar I have a great cry comes up from the people to restore to them the old shown to you. I ask you whether that coin can be forced upon law which was taken away from them without their knowledge any creditor? " W h y , " you say, it d o e 3 not need a n y forcing. and without their consent, some influence come3 in between us The law of the land makes that legal tender, and no one would and our lawmakers and says, ''You shall not do this thing;" and think of refusing it." Now, I ask the Senators why is it that the coin is money, and the gold bar is not? we do not. I put the question so plainly that the wayfaring man, though The proper thing for us to do was well stated a few days ago by the Senator from Idaho now in the chair [Mr. DUBOIS]: Place a fool, can not err in the answer: What makes the coin money gold and silver upon the same plane; either restore the protec- and the bar a commodity? The law, and only the law. The law tion of the law to silver, or remove the protection of the law alone makes money value. This bar was made for me by a firm of jewelers in the city oI from gold, and the people' do not care which you do. So far as I am concerned, I had rather see all of our coinage Chicago. I sent the order through a jeweler of Washington. laws wiped out, place gold and silver on the markets the same When it was returned I saw it weighed upon scales, so that I as we do wheat, and corn, and cotton; let the Government pur- know the exact weight of the two pieces. There is a trifling difchase every dollar's worth of both metals which is offered, and ference—a hair or two only—between them, yet one is money, a as long as the people want silver and gold to rest their paper full legal tender, and the other is not money, though of precisely upon, lay it away and let it rest as a basis without abrasion, and the same weight, the same metal, and the same quality. What, then, becomes of this theory of fiat money? The Senwithout counterfeiting, and without any sort of change whatever. The time is not very far distant when the people will discover ator from Massachusetts spoke about maintaining a fifty-cent that they do not need any gold or any silver to base their paper dollar at a parity, insisting that 50 cents of the dollar was clear upon; but so long as they want it, let them have it, and let them fiat; yet we are maintaining it at a parity, and we are forcing a have all that the miners can dig out of the mountains, and base fraud upon the people according to this argument. I have here some of the old Continental notes [exhibiting] that our paper upon that. I do not believe in the Government supplying individual persons with gold or silver, except that they there is so much talk about, which helped the boys out of their troubles during the war of the Revolution. may buy it the same as they would buy corn or wheat. Under the authority of the Continental Congress not a legal Oh, but you ask me, "How aie you going to get along with your foreign trade; how are you going to supply the necessary dollar could go out, no taxes could be levied, no revenues could gold to meet balances with foreign nations?" etc. I would do it be collected, and yet this paper passed among the soldiers of the just the same as I would do in relation to wheat and cotton and Revolution as money. It was different when we came to the war corn; I would let the hoarders go and buy it when they want it. of the Rebellion. W e then had a Government established, au303 CONGRESSIONAL KECOKD. 12 thorized to coin money and to regulate the value thereof, and we made our own money. I think a little more of the same medicine would be very acceptable to the people at this time. Mr. COCKRELL. Does the Senator intend to have the form of those notes printed? Mr. PEFFER. No, I had not thought about that. Mr. COCKRELL. Why not let the form of them be printed i n t h e RECORD? Mr. PEFFER. The peculiar designs and the borders can not be reproduced without a good deal of trouble and expense; but I will state the form and dimensions of the several pieces and give the reading matter on their faces. Number 1 is a rectangle, 2i inches by 3i inches, and reads: " One-third of a dollar, according to a resolution of Congress passed at Philadelphia February 17, 1776." Number 2 is 3 by 3i inches, with bordering, and reads: 44 This bill entitles the bearer to receive six Spanish milled dollars, or the value thereof in gold or silver, according to a resolution of Congress passed at Philadelphia May 9, 1776." Number 3 is in similar form and reading. It was issued from Baltimore, Feburuary 26,1777, and is for $7. Number 4 is for $8, issued from Philadelphia, September 26, 1778. Number 5 is for $4. No place of issue is stated, but the date is January 14, 1779. The reading of the several bills is nearly alike—*4 The bearer is entitled to receive * * * Spanish milled dollars, or the value thereof in gold or silver." Number 5 reads: 44* * * Spanish milled dollars, or an equal sum in gold or silver." Mr. GALLINGER. I am extremely interested in the discussion on the part of the Senator from Kansas, and, if it will not interrupt him, I should like to propound one question for information. Mr. PEFFER. Very good. Mr. GALLINGER. I should like to ask the Senator what is the value of the gold bar which he has exhibited to the Senate? Mr. PEFFER. I thank the Senator for the question. I had intended mentioning it, but forgot to do so. Among the jewelers this gold bar would bring $8.80. Mr. GALLINGER. What is the value of the coin which the Senator exhibited? Mr. PEFFER. It is $10. Mr. GALLINGER. So that, after all, the Government stamp or the Government authority does not give the entire value to the coin? Mr. PEFFER. Oh, no. Mr. GALLINGER. And th9 gold bar is not fiat money? Mr. PEFFER. The gold bar is not money at all, fiat or any other kind; but the coin is money, and it is fiat money. It s iys upon its face 44 $10." That is all. That is what the law says its value shall be, and there is no other way of gauging its value, Mr. President, but by the terms of the law. The law says it shall be of the value of $10. Mr. BUTLER. May I make an inquiry of the Senator for information, for I was very much interested in the question of the Senator from New Hampshire? Mr. PEFFER. Certainly. Mr. BUTLER. I understood the Senator to say that the value of the bar is only $8.80. So the stamp of the Government increases its value $1.20. Mr. PEFFER. Yes, sir. In connection with that, I do not wish to be understood as saying that the value of $8.80 is intrinsically in the metal, because that is not the truth. A large part of the measure of the value for commercial purposes is given to it by reason of the Government using such a large quantity of gold for money. More than 50 per cent of the gold product of the world is used for monetary purposes. Take away the protection of the law, throw it upon the open market the same as you do silver, and it will go down like silver has gone down to the level of other property, and then we shall have justice done, and not until then. Mr. MITCHELL of Oregon. There is 10 per cent of alloy in the bar? Mr. PEFFER. There is—the same as in the coin. Mr. MITCHELL of Oregon. There is 10 per cent of alloy? Mr. P E FFER. It is nine-tenths fine. Mr. MITCHELL of Oregon. Suppose there was no alloy at all in the bar, leaving the alloy in the coin, what would be the difference between the bar and the coin in value? Mr. PEFFER. The jeweler gave me a statement showing how jewelers measure the value of their gold. It is done by carats per pennyweight. Pure gold is 24 carats fine, dividing the weight into pennyweights of 24 grains each. For every pennyweight of 8-carat gold, the worth would be 32 cents. For a pennyweight of 10-carat gold the value would be 40 cents; of 203 14 carats the value would be 56 cents; of 18 carats, 72 cents; of 22 carats (the coin standard), 88 cents; and of44 carats, pure gold, 24 the value would be 96 cents. I asked him, When I bring this bar back to sell to the jeweler, what can I get for it?" and he replied , $8.80. Then he gave me a card showing how gold is valued by the jewelers. Just one word, Mr. President, about bimetallism. It is a very indefinite term. I may be a bimetallist and yet believe in using silver for onty the minor coins. I may be a bimetallist and be willing that silver shall be a legal tender to the extent of only $5. Upon the same principle I will be a trimetallist, because we use nickel as money—gold, silver, and nickel. By the same philosophy I might be a quadrometallist, because we use gold, silver, nickel, and copper—four different metals. But the test of a bimetallist, from my standpoint, is, do you believe in the free and unlimited coinage of silver at the old ratio of 16 to 1? In this bill there is a platform utterance at the end of the statutory provision which declares .that it is the policy of this country to maintain a parity between the metals. That same platform utterance was enunciated in the Sherman law, that we propose to maintain a parity between the metals. Mr. President, we do not do anything of the kind. When we enacted the coinage law of 1873 we dropped the silver dollar utterly out of the list of coins. In 1878, when an attempt was made to restore the old law, we were put off with a compromise of $2,000,000 a month— not to exceed $4,000,000 a month—and the Treasury Department, with the advice, consent, and direction of the Chief Executive under both parties, gave us one-half the law and kept the other half away from us. Now, gentlemen may say what they please, this is an attempt to drive away from the people every vestige of legislation in favor of silver. 44 Ah, but you say, 44 We intend to keep the silver coin that we have at a parity." I do not know whether you do or not. I only know what you have done, and if you succeed in carrying through this legislation your next step will be utterly to demonetize silver. But if I be mistaken about that, if we can maintain a parity at one ratio we can do it at another. I will now pass on very hurriedly, omitting a good many things I had intended to say, for the purpose of giving way for other matters. It is said that this will drive us to a silver standard. Suppose it does, who will be injured? Who will be benefited? I would much prefer that our business, if it has to be transacted upon a monometallic basis, be upon the basis of silver; and I think I can give very good reasons for it. The nations of Europe, with whom a large part of our trade . is conducted, are as to a great many articles compelled to pay a large tribute before they are permitted to land them upon our shores. W e tax them upon their manufactured goods; we tax them upon their cloth, their wool and their cotton; we tax them upon their cutlery; we tax them upon their coal and upon their salt, and upon a great many other articles which our people are constantly using. Instead of throwing open our doors wide for the trade of the world, we tax the trade of that portion of the world that to-day is most largely interested in the things we have to sell, and those are gold-using countries. We can get along without the trade of those countries, if we have to do it, so far as our manufactured goods are concerned. Here we have upon our southern border twelve States in South America; we have six States in Central America, and we have Mexico. There is a field for our manufactures, while on the other side of the Atlantic is a field for our farm products. I have bsen surprised at the character and drift of our legislation the last four or five years in that respect. Our farmers are to trade in Europe, where we levy taxes upon their products, while our manufacturers are permitted or asked to trade in the South American states, where the people raise their own wheat, and their own corn, and their own cattle, and their own sheep, and their own wool. If we need tea or coffee that we can not produce in our own country, both are grown extensively in Brazil. If there are spices that we need, we can get them in the islands of the sea. If there is anything that we need, that our people do not produce, we can find it somewhere without landing a ship upon British, or German, or French soil. All of the countries to which I have referred are silver-using countries. They would be ready at any time to unite with us upon an international monetary standard, while, if Mr. Gladstone speaks the truth—and we all think he does—we need never expect any international agreement with Great Britain upon any other basis than gold. I would be willing to have an international conference for the purpose of agreeing upon a unit of value, that value to be based upon the common divisor of a large number of articles in general use among the people. Give to that unit of value a name, whatever it is, I care not what. Give it a name. Then let it be represented by a sign on paper which shall be an obligation of the CONGRESSIONAL RECORD. government whose stamp it bears, and have no other kind of international agreement except one between the nations as nations. Let individuals settle their own balances in their own way and accommodate their trade to that condition of things; but as to a metallic basis or a local monetary system, I believe in having an American standard, an American system, just as we have in all the rest of our administration. Mr. President, we are looking in the wrong direction for the primary cause of our trouble. W e are but infants at the beginning of the alphabet. 4 4 Standing as we do in the evening of the most fruitful century of human progress, looking backward over achievements grand in their scope, astounding in their numbers, and bewildering in their effects—discovery, invention, development in all departments of effort, change and improvement everywhere; and looking forward toward the dawn of a higher and broader civilization, with fresh discoveries of genius, and nobler reaches of mind, when we shall have happier conditions, with larger liberty, purer pleasures, and the enjoyment of more abundant leisure, strange it is that we are just beginning to study one of the most subtle and cunning agencies of human activity, operating in men's affairs as the alchemy of spring sets the forces of nature at work to bring forth verdure and flowers and move vegetation on toward the harvest time. How strange that this should be true. That while we have changed our methods in all departments of industry and are now searching for new and better ways along every avenue of growth, we hold with an almost desperate grip to a money system that descended to us from the barbarism of the past. The time is at hand when we need improvement in our methods of providing and distributing this most convenient repository of values. The things which are bound up in the one word "money*' are an innumerable host that no man can number, involving endless development of mind and thought and energy, perpetual progress and growth. As healthy blood imparts vigor and strength to the human body, so money in active circulation quickens the pulses of trade, encourages the toiling poor, gives employment to willing hands, and brings prosperity and peace to the people. The great trouble with us arises from the simple fact (and I speak the words with emphasis) that we permit a few men to control our finances. Am I to be censured for suggesting this thought? Was Cyrus H. McCormick an outlaw because he invented a machine that laid the old grain cradle and the sickle in the shade? Was Watts to be excommunicated because he invented the eccentric wheel in the steam engine, or Stevens for inventing the elevator to carry wheat and flour from the lower floor to the upper one? Are the Cramps to be censured because they have brought down the cost of shipbuilding to a level with the mechanics on the Clyde? Are the men who propose changes by way of improvement to be ostracized because they ask that something new be tried? W e have tested our financial system and find it wanting. Now, let us look about us and see if there is not something better. We are at the mercy of the usurers to-day, and the usurer is he whose bounty is toii, whose blessing is want, whose rule is poverty. His breath is pestilence, his presence is a perpetual menace to liberty and to every interest which men hold dear. I have spoken about the repeal of the Sherman law. As that is not responsible for our misfortunes its repeal will add nothing by way of relief to the people, and, so far as I am concerned, it shall never be repealed unless in connection with the act repealing it we have the old coinage law of our fathers restored to the statute books. In this time of trouble to whom shall we turn? Let us ask the people. What do they want? They ask bread and we offer them a stone. They ask for more money and we propose to give them less. They ask the loan of money and we close the banks. They ask for the use of their own funds now in bank and they are compelled to pay a premium. They ask for means to carry on their daily business and we permit the usurers to corner the currency, and we tell the banks to hoard all the lawful money they can get hold of and give out their own certificates to be used as money. Who asks for the repeal of the Sherman law? Let the distinguished Senator from Indiana [Mr. VOORHEES] answer. The repeal of the Shermanlaw means, as was so well stated by the Senator from Missouri [Mr. VEST] afew days ago, a gold standard. It is said on the other side that they propose to maintain the present silver coins as money. I understand that very well: but you propose to measure them by a gold standard, and that is what we object to. Take away the protection of the law from gold and we are ready to meet you halfway; but until you do that we are on this side of the line with our faces to the front. I wondered, when I heard the Senator from Indiana the other day, how it will appear in print when the historian comes to m 13 speak of the political apostacy of that distinguished Senator. He labored hard and eloquently to show that he has abandoned none of the views that the people understood him to entertain in the years gone by. 1 have quoted that distinguished m m frequently upon the public platform. 44 Here is what Senator VOORHEES, of Indiana, said upon the floor of the American Senate," I said to the people. "We have one great apostle of liberty in our ranks battling for the rights of the common people, that they may have their money restored to them." The Senator still insists that he is a bimetallist, but he is following in the lead of one who says all our obligations shall be paid in gold. He is following in the lead of one who says that silver coinage ought to be discontinued and not another silver dollar coined. He is following in the lead of men who are headed the other way; and, while grasping the hand of Wall street in one hand, they slap the people in the face with the other. There can be but one construction put upon this whole proce3ding. You are attempting to drive the country to the standard of the gamblers. That is what it means, Mr. President, nothing more or nothing less, stripped of all verbiage. I ask no better description of that class of men whom I have denominated gamblers than that used by the distinguished Senator from Indiana, for whom I have the highest personal regard. Mr. President, when listening to that speech, and after reading it again in print that I might not be mistaken, it seemed to me that I could read the old story of Isaac and his boys. The old man's eyes had become dimmed and they played a trick on him. There was a skin of fur put upon his son's hands, and the old man heard his voice, and he said, "Come near, that I may feel whether this is all right. The voice," he says, "is Jacob's voice, but the hands are the hands of Esau." (See Genesis, 27, to verse 29.) The Senator is talking for the people, but he is voting with their enemies. The next proposition is to increase the national bank circulation; and yet when I introduced a little innocent resolution in this body yesterday asking for information from the Treasury Department whether the banks were doing business in violation of law, immediately a storm in this Chamber arose which has spread its effect all over the country. It will reach out into every hamlet, into every lodge of the Knights of Labor, and into every assembly of the Farmers' Alliance; it will be discussed at the firesides of the people, by the threshing machines, by the forges, and in the mills. The people will wonder why that resolution was not adopted, in view of the fact that a bill was pending which proposed to give to the banks an additional $20,000,000 of notes to lend to the people. I have here the resolution which I submitted. It is as follows: First. Whether, and in what respect, the national banks, or any of them, in the cities of Boston, New York, and Philadelphia are being now conducted in violation of law. Second. Whether said banks are paying depositors' checks promptly in lawful money. Third. Whether said banks, or any of them, are demanding rates of interest higher than those provided by law for the loan of money or in discounting notes and bills. Now, Mr.President, I wish to say in this connection, lest I may not have the opportunity to do it again, that I made no charge against the Secretary of the Treasury nor the Comptroller of the Currency nor against anyone. It was common rumor that the banks of the country were violating the law; that they were refusing to honor the checks of their depositors; that they were issuing clearing-house certificates and compelling the people to use them as currency in their daily transactions. I simply wanted to have this matter officially contradicted, or I wanted to have the country know that there was some reason why it was permitted; that was all. I did not want to censure anybody. I believe that under the present condition of things the New York banks did just what they had to do to save themselves, under the circumstances. I believe the whole system is wrong. M r . MCPHERSON r o s e . Mr. PEFFER. The Senator will please pardon me until I get through on this point. I believe the whole system is wrong; but having brought us to this trouble, having the country and its business upon their backs, there was nothing left for them to do but to send out their'clearing-house certificates, just as 1 have known merchants in the time of a currency famine to issue their own orders or checks to pass as currency among the people until the storm is over. Mr. MCPHERSON. Will it interfere with the Senator if I should ask him a question? Mr. PEFFER. No, sir; it does not interfere with me. Mr. McPHERSON. The Senator stated that it was common rumor that the banks were acting illegally. I should like to know if he expects the Comptroller of the Currency to dispute every common rumor that may appear in the newspapers or in the open air? Unless complaints should be made to the Comp- CONGRESSIONAL 14 EECOBD. conceded upon this floor to be the truth, I would have an additional argument to urge upon the Senate for the destruction of that system, and after we have adjourned, having discharged our duty here, I might go before the people and show to them the defects of this system that has grown up under our fostering care; that was all. I did not expect to court-martial anybody or ask that any man be sent to prison. I wanted the facts, that the Senate might first have them, and that the country might have them next. I have a table here showing the stock of money in the country on the 1st day of July, 1893: troller of the Currency in a formal manner how is he to take cognizance of the matter and proceed as against common rumor? Mr. P E F F E R . In the discussion that we had here yesterday abundant reasons were shown Mr. A L L E N . W i l l the Senator yield to me for a question? Mr. P E F F E R . Certainly. Mr. A L L E N . Is it not true that the assistant treasurer at N e w York is a member of the Clearing House Association at New York, and therefore the Treasury Department is charged with a knowledge of the violation of the law? Mr. P E F F E R . I have no doubt that there are members of this body and members of the other House who are members of the Clearing House Association in New York or some other city. I have no doubt that members of the Administration are bankers and members of clearing-house associations. But, Mr. President, this was not a charge against any of the officers. It was a simple request for information, and upon that point a quibble was raised yesterday as to the legal status of it. The Comptroller of the Currency is placed in charge of the national banking law. It is his business to know when the law is violated. It is his business to understand the working of the banking system, just as a jeweller understands the working of a clock. During the great war, a part of the time at Fort Donelson, I was placed in charge of the stores belonging to the commissary department, and it was part of my business to sell supplies to the officers. There were many times that we could not effect the proper change, and in order to supply the want of a currency I simply wrote a little check with my name signed, as "Good for 10 cents—PEFFER"; and those checks circulated throughout all the camp month after month as money. So in this case, all I wanted to know, all that the resolution asked for, was to know what is being done by the banks. Then we could determine what else ought to be done, if anything. I wanted the country to understand officially whether the banks of the great cities are using anything else than lawful money as currency. I wanted to know whether they are paying their depositors. I wanted to know whether they are charging unlawful rates of interest. I was satisfied that with the honor, the intelligence, and the capacity of the Secretary of the Treasury and his able assistant, the Comptroller of the Currency, they would understand just what the Senate wanted and would give us the actual facts. Then it was my purpose, I will state very frankly to the Senate, that if it should be shown upon official evidence what was Statement showing the amounts of gold and silver coins and certificates, United States notes and national-bank notes in circulation July l, 1893. General stock, coined or issued. Amount Amount In Treas- in circula- in circulaury. tion July tion July i,is:'2. 1,1893. $513,743,623 $110,109,923 $403,633,700 $408,7C7,740 Gold coin 419,332,450 362,302,707 57,029,743 56.790, 484 Standard silver dollars 77,256,212 11,855,944 65,400,268 62,rU5,518 Subsidiary silver 94,041,189 1,071,170 92,970,019 141,2;>5,*83i) Gold certificates 330,957,504 4,468,339 326,489,165 326,830,803 Silver certificates Treasury notes, act July 14, 1890 147,190,227 6,528,533 140,601,694 98,051,657 United States notes 346,631,016 25,805,333 320,875,683 311,814,840 Currency certificates, act 430,000 11,935,000 29,830, C O O June 8,1872 12,385,000 National-bank notes 178,713,872 3,982,733 174,731,139 167,308,057 Total 2,120,281,093 526,554,682 1,593,726,411 1,603,073,333 Let us turn our faces to the people and give them, say, at least $250,000,000 now, and then after having done that we can talk about ratio a little while again. W e must have more money. There is not enough gold in the world to make money plenty at present rates of value. W e must have silver in addition, and particularly for payments of comparatively small amounts. But there is not enough of gold and silver combined for use as money. W e must have paper also, and there is not enough of gold and silver and paper money, all as one, now in use to supply the common need. A s we can not suddenly increase our coinage to any great extent, we must resort to paper to supply immediate and pressing demands. Here is an interesting table taken from RothwelPs "Universal Bimetallism": Monetary systems and approximate stocks of money in the principal countries of the world, 1891. Ratio of silver to 1 of gold. Countries and money systems. Limited tender. Stock of silver. II 11 $ to 65 United States, gold and silver 15.98 United Kingdom, gold France, gold and silver 49.5 Germany, gold 6.1 Belgium, gold and silver -----31 Italy, gold and silver 3 Switzerland, gold and silver 2.2 , Greece, gold and silver 18 Spain, srold and silver 5 Portugal, gold 40 Austria-Hungary, gold 4.5 Netherlands, gold and silver 8. Scandinavian Union, gold 113 Russia, silver 33 Turkey, gold and silver 4 Australia, gold 7 Egypt, gold 11.6 Mexico, silver 3 Central America, silver 35 South America, silver 40 Japan, gold and silver 255 India, silver 400 China, silver The Straits 4.5 14.95 Canada, gold Cuba, Haiti, gold Total. $654,000,000 550,000,000 800,000,000 600,000,000 65,000,000 93,600,000 15,000,000 2,000,000 Full Limten- ited Total. der. tender. 498 650 103 48.4 16 11.4 1.8 575 50 700 108 6.6 34.2 3.6 2.2 38.6 40,000,000 120 40,000,000 10 40,000,000 " 9 0 25,000,000 61.8 "2.2 32,000,000 10 250,000,000 38 50,000,000 45 100,000,000 7 100,000,000 15 5,000,000 50 .5 25 45,000,000 50 90,000,000 900 700 100 16,000,000 20,000,000 3,632,600,000 1.2 100 Sil- PaSil- Uncov- ToGold. ver. ered tal. Gold. ver. per. paper, .8 5 2 40.00 78.57 50.58 65.36 37.35 30.46 34. 40,000,000 40,000,000 10.00 20.00 20.00 6.72 3 . 7 2 45.92 28.57 96.98 5,000,000 26.23 2,000,000 32.26 5 5 3 . 6 4 , 0 0 2 . 7 2,629,660,00010,264,960,000 35.18 14.28 44.27 22.89 31.60 16.33 34.09 13.42 53.02 42.10 10.50 10.26 23. 19.23 50.00 46.38 14.49 30.86 7.41 52.62 47.37 93.46 6.54 86.95 13.05 8.77 87.72 100,000,000 100 Mr. President, the people are going on guard to-day. Their posts are i n the farmhouses and in the dwellings of the poor, in the workshops, in the mines, in the forests, on the lakes and rivers, and along the highways of commerce. Their counter203 Uncovered Gross total. paper. $405,790, 000 §1,634, 790,000 700, 000,000 50,000, 000 81,400, 000 1,581, 400,000 918, 000,000 211 107,000, 000 174, 000,000 55 54,000, 000 307, 270,000 5 0 . 2 163,470, 000 44, 000,000 15 14,000, 000 20, 000,000 14,000, 000 4 298, 000,000 100,000, 000 158 95, 000,000 45,000, 000 10 260,000, 000 000,000 90 40,000, 000 130, 000,000 65 27,000, 000 10 69, 000,000 500,000, 000 60 95, 000,000 45 107, 000, coo 7 115, 000,000 15 57, 000,000 50 2,000, 2, 500,000 2,000, 670, 000,000 25 600,000, 196, 000,000 50 56,000, 928, 000,000 900 28,000, 700, 000,000 700 77 100 Per capita. Percentages. 1=$1,000,000. Stock ot gold. 100.00 100.00 8.20 3.23 Total. 24.82 15.93 $10.06 16.24 $25.15 7 . 1 5 6.82 14.47 2 . 6 3 1.32 18.48 5.15 15.40 20.52 17.95 2.09 40.56 11.65 8.95 12.12 4 . 2 6 2.16 18.54 31.05 1.70 10.66 9 . 0 2 8.85 28.53 5.27 9.91 53.21 2.99 3.02 1. . 4 3 5.00 5 . 0 0 4 . 6 7 14.67 31.82 .91 1.82 6.36 9.09 .19 70.00 33.56 2 . 8 9 2.22 8 . 7 8 5.56 16.56 . 9 3 8.00 2.00 9 . 0 0 19.00 47.40 66.66 3.81 1.00 2.25 6.50 9 . 7 5 30.77 1.26 5 . 5 5 14.44 8.89 28.88 39.13 .68 3 . 7 2 1.16 3.14 8.02 7.16 . 5 3 4. 61.73 7 . 8 9 2.21 2.88 . 9 3 1.52 1.36 26.75 1.03 25.00 1.75 16.43 1.13 14.29 2.14 . 4 3 4.31 .57 .17 4.91 3.51 .84 .17 .67 80.00 .02 .71 17.14 19.14 89.55 6.53 1.29 1.40 4.90 35.51 1.91 2.25 1, 3.53 .11 3 . 6 4 3.02 9.03 1.75 1.75 6.82 .97 . 5 9 3.56 1.11 8.89 13.56 65.57 10.00 1.00 20.00 31.00 64.51 100.00 sign is " loyalty to the Republic;" the Stars and Strides is their flag; equal rights is their motto; Anglo-Saxon blood is their inheritance; freedom is their birthright, and to be rulers in their own country is their destiny.