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True Bimetallism, Repeal t h e S h e r m a n law, m a k e the silver dollar as good as gold, and all t h e dollars equal. S P E E C H OF HON. GEORGE OF W. COOPER, INDIANA, IN THE HOUSE OF REPRESENTATIVES, Monday, August 21,1893. The House h a v i n g u n d e r consideration t h e bill (H. R. 1) t o repeal a p a r t of an act, approved J u l y 14.1890, entitled "An act directing the p u r c h a s e of silver bullion and t h e issue of T r e a s u r y n o t e s thereon, and f o r o t h e r p u r p o s e s " — Mr. C O O P E R of Indiana said: Mr. SPEAKER: T h e P r e s i d e n t , exercising t h a t discretionary power lodged in him by t h e Constitution of t h e United States, has convened t h e Congress in extraordinary session. T h e emergency which has impelled h i m is clearly and strongly set f o r t h in the message which is before us. " T h e existence of an alarming and e x t r a o r d i n a r y business situation, involving t h e welfare and prosperity of all our people," to which h e directs attention, is by h i m clearly traced to t h e operation of certain financial legislation, t h e evils and dangers growing out of which t h e executive d e p a r t m e n t of t h e Government finds itself powerless to stay or avert. T h i s legislation is embodied in what is known as t h e Sherman law, passed July 14, 1890. T h e first section of the law directs 14 T h e Secretary of t h e Treasury to purchase, from time to time, silver bullion to the a g g r e g a t e of 4,500,000 ounces, or so much as may be offered in each month, at t h e m a r k e t price t h e r e o f , " and to issue in payment therefor United States Treasury notes. I t is this provision of t h e law which it is now proposed shall be repealed. T h e repeal bill reads as follows: Be it enacted, etc., T h a t so m u c h of t h e act. approved J u l y 14, 1890, entitled "An act directing t h e p u r c h a s e of silver bullion and issue of T r e a s u r y n o t e s thereon, and f o r o t h e r p u r p o s e s , " as d i r e c t s the Secretary of t h e T r e a s u r y t o p u r c h a s e f r o m t i m e to t i m e silver "bullion to the a g g r e g a t e a m o u n t of 4,500,000 ounces, or so m u c h thereof as m a y be offered in each m o n t h at t h e m a r k e t price thereof, n o t exceeding one dollar f o r 371.25 g r a i n s of p u r e silver, and t o issue in p a y m e n t for such p u r c h a s e s T r e a s u r y notes of the United States, be, and t h e same is hereby, repealed; b u t t h i s repeal shall not i m p a i r or in a n y m a n n e r affect the legal-tender quality of t h e s t a n d a r d silver doll a r s h e r e t o f o r e coined; and the f a i t h and credit of t h e U n i t e d S t a t e s a r e hereby pledged to m a i n t a i n t he p a r i t y of t h e s t a n d a r d gold and silver coins of t h e U n i t e d S t a t e s a t t h e p r e s e n t legal r a t i o or such other r a t i o as m a y be established by law. T h i s bill, as will be observed, has two distinctive features: F i r s t . I t stops the purchase of silver bullion. 289 Second. I t protects the silver which we now have from depreciation, and maintains its legal-tender quality. Mr. Speaker, there ought to be no necessity for the discussion of either of these propositions. The purpose of the enforced purchase of silver bullion by the Government, as openly expressed at the time of the adoption of that policy, was to enhance its price—to bring if possible its commercial value back to that relative position with gold expressed in the legal ratio of 16 tg 1. In this it has utterly failed. If this failure to realize our expectations as to the rise in the value of the silver bullion were the only unfortunate outcome of this legislation there would be no sufficient provocation for this extraordinary session. But, sir, it is not because those who are interested in mining and marketing this precious metal have been disappointed t h a t we are here, but because, in our effort to force into our circulation a vitiated current we have poisoned our whole financial system, brought dismay and distress to our business interests, and finally, idleness and want to our laboring people. If there has been any attempt at a defense of this measure I have not read or heard it, and if any yet remains to be made, I can not conceive upon what ground or along what line it can be done. But, sir, by a kind of parliamentary jugglery this real vital issue upon which it appears we could all agree and to dispose of which we are here convened, this urgent, burning demand for relief is postponed, and while the country suffers and waits we are to make a test of the strength of each of an assortment of views upon kindred financial measures. Six independent propositions offered as substitutes for the repeal bill are to be disposed of first. First, the free and unlimited coinage of silver at the ratio of 16 to 1; Second, the same at the ratio of 17 to 1; Third, at the ratio of 18 to 1; Fourth, at the ratio of 19 to 1; Fifth, at the ratio of 20 to 1; and Sixth, the substitution of the Bland-Allison law of 1878. Mr. Speaker, what is meant by the term ratio as applied to t h e coinage of gold and silver, and whence comes the necessity for legislation upon that subject? By ratio in this connection we simply mean the relation which these metals sustain to each other in point of value. W h e n we speak of a given ratio as 16 to 1 we mean that 1 pound of gold is worth 16 pounds of silver, or vice versa. In a country where these metals are both coined into currency the necessity for establishing this ratio by law is easily understood. In our country the unit of value is the dollar. Now, when this dollar is to be made of different metals, as of gold and silver, the very first thing that would suggest itself would be how much metal shall each piece contain. By the act of April 2, 1792, our fathers adopted the Spanish milled dollar as the monetary unit. I quote the language of the law: T h a t there shall be, f r o m time to time, s t r u c k and coined at the said mint, coins of gold, silver, and copper, of the following denominations, values, and descriptions, viz: * * * dollars or units, each to be of the valueof a Spanish milled dollar, as the same is now current, and to contain 371X4S grains of pure or 416 g r a i n s of standard silver. In 1837 the weight of this dollar was changed to 4121 grains, and that is the weight of the standard silver dollar to-day. How much gold now should be put into a gold dollar, which was to 3 circulate by the side of this silver dollar, which was to perform the same functions, take the place of, or be exchanged therefor? Clearly it must be a dollar's worth of gold. It became, therefore, necessary to ascertain how much gold the dollar agreed upon would buy, and this amount, whatever it might be, should be contained in the dollar to be coined of gold. At this time— 1792—Hamilton estimated that in the commercial world, 1 pound of gold was worth 15 pounds of silver, and therefore adopted the ratio of 15 to 1. Section 11 of the law of 1792reads as follows: SEC. 11. And be it further enacted, That the proportional value of gold to silver in all coins which shall by law be current as money within the United States shall be as 15 to 1, according to the quantity in weight of pure gold or pure silver; t h a t is to say, every 15 pounds weight of p u r e silver shall be of equal value in all p a y m e n t s with 1 pound weight of p u r e gold, and so in proportion as to any greater or less quantities of the respective metals. THE WAR OF RATIOS. Mr. Speaker, at the time the ratio was established there was no strife over ratios; no powerful interests were arrayed against each other; no silver miners demanding a market for their product; no " f r i e n d s of gold " and " f r i e n d s of s i l v e r " struggling for the mastery. Hamilton was a bimetallist and desired to furnish the people with a sound and stable currency coined from both the precious metals. In this view Jefferson entirely agreed with Hamilton, and they labored together to t h a t end. But why, I ask again, was it necessary that some ratio should be established and observed for the coinage of these metals, and why should the ratio fixed by law correspond with the ratio as it existed in fact in the commercial world. W h y not say one pound of gold shall be equal to one pound of silver, a ratio of 1 to 1? Because, Mr. Speaker, they would not so circulate. Whoever might have a gold dollar as large as a silver dollar would not part with it for a silver dollar, nor for a silver dollar's worth of goods. The thing would be preposterous upon its face. I t must also be remembered that both gold and silver have other uses than as money. They are used in many different ways and are quoted in the markets and bought and sold as merchandise, the prices depending, like that of any other commodity, upon supply and demand. If, therefore, the ratio fixed by law does not correspond with the commercial ratio, it is clear t h a t the coin which is undervalued by the law will drop out of circulation. To illustrate: Suppose t h a t when Hamilton fixed the legal ratio of 15 to 1,15 pounds of silver were not worth 1 pound of gold, what then would have happened? Why, the man who had a pound of gold would not coin it into dollars which would be exchangeable with silver at that ratio, but he would sell it wherever he could get the greatest number of pounds of silver for his pound of gold. Now, Mr. Speaker, this is precisely what did happen. Hamilton made a mistake in fixing the ratio at 15 to 1. Gold was worth a little more than 15 to 1 in the market, the actual commercial ratio being at that time 15.17 to 1, which will appear from the table of ratios which I will append to my remarks. The consequence was t h a t gold very soon disappeared from circulation, and from 1810 to 1834 there was not any gold seen or to be had in our country. Its absence was noted in the discussions here in Congress, and measures were discussed and plans proposed to recover our share and to maintain it in circulation. Manifestly, gold had gone where it could do better. 4 In France a pound of gold would exchange for 15£ pounds of silver, and in most other European countries a like ratio prevailed. To correct this inequality, in 183-1, when Jackson was President, the ratio was changed by reducing the weight of the gold coins and thus bringing the metals into the relation of 15.98 to 1, or, as commonly expressed, 16 to 1, the present ratio. Here again an error was committed, for the commercial ratio was then—1834—15.73 to 1, instead of that agreed upon. This time silver was undervalued, and consequently silver at once disappeared. It is a fact that from that time down to 1873 the silver dollar did not circulate, but gold took its place. GRESHAM'S LAW. Mr. Speaker, inasmuch as the question of relative value or ratios is at the bottom of this whole controversy, I beg leave to call attention to, and explain the operation of, what is known as Gresham's law. As early as the sixteenth century, Sir Thomas Gresham, a wealthy English merchant and philanthropist, discovered and proclaimed this law of finance, viz, that if there is a depreciated coin circulating by the side of a full-weight coin in a country, the depreciated or bad money will drive the good money out of circulation. This law, based perhaps upon human selfishness, is universal and unvarying in its operation. Whoever has two coins, one of which only is clipped, mutilated, or debased, but either of which will pass, will always rid himself of the damaged coin and keep the other. I t is for this same reason that cheap money drives out dear money. Now, Mr. Speaker, 1 shall not subscribe to any particular dogma or set of views; neither do I wTish to be classified as my able friend from Massachusetts [Mr. EVERETT] has said, as any kind of an " i s t , " but I do earnestly desire that we adhere to t h a t policy and enact that legislation which will give us both gold and silver in circulation. I t is true we have them both in circulation now, and it is also true t h a t the legal or coinage ratio and the commercial ratio are wider apart than they have ever been at any time in history. But how is this accomplished, and how long could this be maintained? It is accomplished by t h e Government standing in the breach and offering to and actually making good the difference. I t is true t h e silver dollar has a bullion value of only 58 cents, but the Government says she will take it for taxes, for customs, and for all public dues, and inasmuch as the Government has a great capacity for taxes, customs, and public dues, the silver dollar takes the place of the gold and performs the same function. Again, the Government is pledged by law, in express terms, to the maintenance of the parity of the metals, and the Secretary of the Treasury, as I believe, honestly obeying the spirit of t h a t law, is paying over the Government counter, on coin certificates issued under the Sherman law, either gold or silver at the option of the holder. I know the discretion is with him, but should he at any time refuse the gold, then, in my humble judgment, silver would at once be discredited, and the only thread which holds them together would be broken and the metals parted forever. THE DECLINE IN THE PRICE OP SILVER. But gentlemen say that the depreciation in silver is due to hostile legislation: that free coinage at the ratio to be fixed by ~89 5 law of 16 to 1 will "restore silver," will "rehabilitate" silver, whatever that may mean; that the opening of our mints to the free and unlimited coinage of silver will, eo instanti and ipso facto, spring the price and close the chasm. Mr. Speaker, if I ever believed that—and I presume I did—I do not believe it now; if that wey?e ever possible it is not possible now. There has been some legislative discrimination against silver both in this country and in Europe. I t is true that the price of silver has declined almost simultaneously with this hostile legislation; but let us see whether this result can be attributed to t h a t cause or whether what we observe is a mere coincidence. In other words, let us determine from the facts whether legislation beat down the price of silver, or whether increase in its production did not suggest the hostile legislation. I wish to call the attention of the House to a table which I have before me, prepared under the direction of the Treasury Department, showing the production of gold and silver in the world for the last hundred years. By reference to this table it will be seen that, commencing in 1792 and continuing down to 1848, a period of fifty-seven years, the average annual product was about $30,000,000. Beginning in 1849 and continuing down to 1860, the average annual product was about $40,000,000. From 1860 to 1870 the average annual product was about $50,000,000. From 1870 to 1880 the product increased to $80,000,000 per annum; and from 1880 to the present time it has increased to an average of about $137,000,000 per annum. The most marked increase, perhaps, was the increase from the year 1870 to the year 1871; and I call attention to the figures for those ydars. The amount of the product for 1870 was $51,575,000; in 1871 the amount of the product was $81,050,000, or an increase of nearly $10,000,000 in a single year. From that time the increase has been gradual but enormous, advancing at the rate of about $8,00C,000 per annum. So that, beginning with 1792, when the annual product was about $25,000,000 or $30,000,000 per annum, we find that in 1892 the product of the world's mines amounted to $196,605,000. The mines of the United States produced, in 1880, 1,700,000 ounces of gold and 30,000,000 of silver, or seventeen times as much silver as gold. In 1890 they produced 1,500,000 ounces of gold and 60,000,000 ounces of silver, or forty times as much silver as gold. The ratio in value of silver to gold was, in 1872, 15.63 to 1; in 1882, 18.19 to 1; in 1892 it is worth about 28.52 to 1 of gold. Now, Mr. Speaker, we must distinguish between cause and coincidence. It is true that hostile legislation began about 1872, and it is true that about that time silver began to decline in the market. Was it the hostile legislation which caused it to decline. or was it the enormous increase in the output of the mines, to which I have called attention? I leave this question for thoughful men to determine: but to my humble judgment it seems perfectly clear that the increase in the output of the mines, rather than hostile legislation, caused the decline. Again, we must not forget the cheapened cost of production as an element in the reduction of price. We have improved machinery and increased facilities for transportation, the mines are more accessible to the people, and capital has found rich rewards for its investment. Mining, especially silver mining hfss 289 6 become one of our industries. I t is not therefore wonderful that the production of silver should increase and t h a t t h e price should decline. SILVER MONOMETALLISM. Now, Mr. Speaker, we are face to face with the operation of the financial law to which I referred, and we must act like men commissioned to discharge a great responsibility in an emergency. W e must act intelligently and without regard to our feelings. If we do this, it seems to me we shall be obliged to come to the conclusion t h a t if we continue the purchase and coinage of silver at the present ratio, notwithstanding its great disparity to gold in commercial value, we shall ultimately and speedily drive the gold out of the country and shall find ourselves upon a silver monometallic basis. We are asked to declare by law t h a t 1 pound of gold is only worth 16 pounds of silver, when, in fact, it is worth 28.52 pounds in the world's markets. W e may so declare, but we can not m ike it so. W e may coin the silver, but we must p a r t with the gold. I have before me, Mr. Speaker, in tabulated form, a statement of the monetary systems of the several nations of the world, and I make this declaration here, without any fear of successful contradiction, t h a t there is no nation at this time on the face of the earth maintaining the free and unlimited coinage of silver in which gold circulates by its side. If we are to judge by the experience of other nations, or by our own in the past, if the ordinary laws which are known to govern the financial world are to prevail here in our country, then what I say must be true, that if we continue in the path we are now pursuing we shall come, and inevitably, to a silver basis. I t is also true that there is no country on the face of the e a r t h where gold does circulate that silver can not be also found in circulation. I t helps to fill out the volume of the currency; it supplements the gold and aids in performing the functions of money. Wherever gold is found in circulation silver goes with it hand in hand. This being true and being acknowledged on all hands, it seems to me t h a t we ought to be able to find a path where we can maintain both metals in circulation, and in doing so keep, as I have always insisted we should, as large a volume of currency composed of both the precious metals as the people can use or need in their business affairs. It is not well to indulge in terms of denunciation. W e cannot arrive at correct conclusions by taking counsel either of our feelings or our fears. If we proceed in defiance of the operation of the Gresham law, and then sit down at last amid the wreck and ruin which will on every hand serve as monuments of our folly, we shall not then be able to excuse ourselves by harsh epithets and bitter reproaches heaped upon those who warned us of the coming danger. As well might we denounce the law of gravitation, and curse Newton for having discovered it, because we sometimes fall and suffer through its operation. E F F E C T OF U N L I M I T E D S I L V E R C O I N A G E . Mr. Speaker, what will happen if we open our mints to the free and unlimited coinage of silver at the ratio of 16 to 1? Certainly, every person who may own any silver bullion may send i t here and have it coined into American dollars. To-day in all 289 7 the markets of the civilized world, silver is worth about 75 cents per fine ounce. The silver contained in our dollar is therefore worth just 58 cents. Suppose we permit the silver-miners and all the owners of the stock of bar silver to deposit in the mint 58 cents' worth of silver ^nd to take away therefor a standard silver dollar. W h o is benefited by that speculation? The Government? No; she has done the work and paid the cost; she has created out of 58 cents a coin which she herself must take inpayment of taxes at its full face value of a dollar. WILL IT A I D THE DEBTOR? Some one says: Yes, but it will relieve the debtor class; it will give him a cheap dollar with which to pay his debt. This, Mr. Speaker, I most earnestly deny. And first let me say that there are no more mischievous or misleading statements made in this entire discussion than those which declare this controversy to be between debtor and creditor. Gentlemen have supposed that they could get aid and sympathy h e r e b y an appeal to prejudice; they have arrayed section against section and class against class, and have not left untouched any chord of human passion. This is not a contest between debtor and creditor; between rich and poor. The President of the United States and the Secretary of the Treasury, and all who cooperate with them are not deep-dyed conspirators in league with Shylocks, who have come to an agreement to drive struggling humanity to the wall. No; it is simply a question whether t h e Republic will calmly, dispassionately, and sensibly settle her financial policy and establish it upon sound business principles. But, Mr. Speaker, how is the debtor to be benefited by the 58-cent dollar? How is he to obtain it? W e must remember t h a t these gentlemen tell us that as soon as we get their plan in operation the 58-cent dollar will become the equal of a gold dollar; t h a t it will have the same intrinsic value and purchasing power of a gold dollar. Now, if this be true, will some gentleman please tell me wherein and how the man who must get this dollar has been benefited? If it is to be worth as much as a gold dollar, must we not work as long for it, or bring as much product for it, or make as great a sacrifice to obtain it, as we should for a gold dollar? But I do not believe that unlimited silver coinage at the ratio of 16 to 1 will bring it to a parity with gold. I believe that the instant that the law should go into effect gold would go to a premium; t h a t banks and money changers would buy, and sell, and hoard gold; and that immediately our gold would disappear from circulation, the volume of currency be to t h a t extent"contracted, all values unsettled, all business suspended, credit withdrawn, and that in the readjustment which must at last be made the poor debtor himself would be the greatest sufferer. In the mean time we shall have become a silver country, just as Mexico and China, and the half-civilized countries of South America are to-day. Mr. Speaker, I turn away from the contemplation of such a possible calamity as I would from t h e defeat of our national arms in battle. THE CHANGE OF RATIOS. W e are next met with the proposition to change the ratio. Mr. Speaker, I shall not consider these several propositions sep> 8 arately, but together. W h a t is to be gained at this time by a change of ratios? How can we know that we shall hit the happy medium to which the metals will finally gravitate and at which they will balance and remain in any kind of stable equilibrium. My own opinion is that this can be accomplished only by international agreement. No one, I believe, denies t h a t international bimetallism is practicable. But we can not reach international bimetallism through free coinage. We can suspend the purchase of silver bullion, we can repeal the Sherman law by which we are obliged to buy, whether we need it or not, tons of silver every day, and we can keep our silver now in circulation, coined as it is at a ratio of 16 to 1, and by pledging gold in exchange for it we can keep it at par with gold just as we do our nickels and coppers and subsidiary silver—we need not lose one dollar from the circulation. W e can do this and then we can make some provision for the future. Besides, Mr. Speaker, there is another equally fatal objection to the proposed change of ratios, and that is the cost and danger of making the change. In answer to an inquiry made by me some days ago, the Secretary of the Treasury has kindly furnished me with a statement upon the subject, which I will read: T R E A S U R Y D E P A R T M E N T , O F F I C E OF THE SECRETARY, Washington, D. G., August 19, 1893. SIR: I n reply to your tetter of the 17th instant, m a k i n g inquiry as to what wo uld be the probable loss incident to the change f r o m the present coining r a t i o between gold and silver, 1 to 16, and t h a t of 1 to 20, you are respectfully informed t h a t the n u m b e r of silver dollars already coined aggregates 419,332,450. W i t h o u t any allowance for abrasion, and loss incident to melting the same, the coining value of these dollars, at a r a t i o of 1 t o 20, would be $333,222,162, or $84,110,228 less t h a n their present face value. To recoin these dollars at, a r a t i o of 1 to 20 would r e q u i r e the addition of 81.376,700 ounces of new bullion, which, at the average price paid for silver under the act of J u l y 14, 1890 ($U.93£), would cost $75,883,700. I n addition to this I estimate t h a t there would be a loss f r o m abrasion and in the melting of these dollars of at least $3,000,000, which a m o u n t together w i t h the difference in the face value of the coins ($84,110,288) w r ould have to be reimbursed to the Treasury by an appropriation for t h a t purpose. F r o m the fact t h a t the silver dollars are distributed t h r o u g h o u t the count r y it would be necessary, as they are redeemed at the several sub-treasuries, to t r a n s p o r t t h e m to the mints, and the expense of t r a n s p o r t a t i o n for $300,000,000, the a m o u n t outside of the stock on hand at the sub-treasuries, and m i n t s at Philadelphia, San Francisco, and New Orleans, would av^tage at least H per cent, or $4,500,000. I therefore estimate the cost of recoining the silver dollars already coined as follows: New bullion to be added. $75,883,700 Loss by abrasion and melting. 3,000,000 Cost of coinage (labor, materials, etc.) 6,290,000 Copper for alloy 68.200 Transportation of dollars to m i n t s 4,500,000 Total Very respectfully, J. G. C A R L I S L E , HON. GEORGE W . House of 89,741,900 Secretary. COOPER, Representatives. Can we afford this experiment? Is it necessary? No. If we are to have internatio bimetallism it would prove a serious hindrance. If we are not, it would be a useless cost, If we are to abandon what now is purely an arbitrary ratio, t h a t of 16 to 1, in hopes of striking the commercial ratio, why take 20 to 1? It is not plausible, even. I t can not be seriously considered. 289' 9 D U T Y OF R E P R E S E N T A T I V E S . Mr. Speaker, we are told that the people demand the free and unlimited coinage of silver and that they expect us at this time to make the experiment, regardless of consequences. In this connection much is said about platforms and pledges and party politics. Representatives who have heretofore been known to favor the free coinage of silver, but who are now convinced that under the existing conditions the experiment would prove disastrous, are taunted with the charge of inconsistency and threatened with retirement to private life. Well, Mr. Speaker, I have gone over all that ground, and I have this to say in answer: Very many people, like their representatives, at one time believed that by the free coinage of silver we could obtain a larger amount of currency, and at the same time maintain its stability and that of the public credit. At that time it was hoped and believed that the depression in the price of silver was temporary merely and due to hostile legislation only. Let me call your attention to what was said on this subject by the senior Senator from Nevada [Mr. S T E W A R T ] at the time of the passage of this Shermau law. I read from the CONGRESSIONAL, RECORD of July 8, 1890: Mr. STEWART. Mr. P r e s i d e n t , if t h i s bill becomes a law and is executed in good faith, as we are bound to a s s u m e t h a t it will be, and f o u r and onehalf million ounces of silver are p u r c h a s e d each m o n t h it will give g r e a t relief, and I a m confident it will be a n object lesson t h a t will lead to f r e e coinage. # * • * # * * I believe tliat we shall p u r c h a s e t h e f u l l f o u r and a half million ounces each m o n t h ; t h a t it will raise t h e price of silver and e n h a n c e t h e price of f a r m products, relieve the A m e r i c a n people m o r e t h a n m a n y n o w anticipate, and t h a t u l t i m a t e l y we shall h a v e t h e f u l l use of silver. Senator Plumb, who closed the debate in behalf of the bill, also said, on page 7104: Mr. PLUMB. If this bill is passed m y own belief is t h a t d u r i n g t h e n e x t Congress, if n o t before, so easily and noiselessly will t h i s work, so h e l p f u l will it be t o all the people of the United States, so t h o r o u g h l y will it commend itself to the good j u d g m e n t of the people, t h a t t h e n e x t s t e p will n o t only be f r e e coinage, but it will be a s h o r t one and t a k e n by t h e p r a c t i c a l l y u n a n i m o u s concurrence of t h e A m e r i c a n people. These were the conditions upon which men declared in favor of free coinage. They were led to believe, and did believe, t h a t the parity of the metals could be and would be restored at the ratio of 16 to 1. I myself believed it, and so believing was glad to join with the gentlemen and use my utmost endeavor to make it so. But, Mr. Speaker, their prophecies have failed. The times have changed. Instead of silver having gone up to 16 to 1, it has gone down to 28 to 1. Because I had hoped to follow these gentlemen up, is it true that I am to be considered inconsistent because I refuse to follow them down? Or is it true t h a t a Representative charged with the grave responsibility of legislation, upon which depends the weal or woe of millions of his fellowcitizens, must blindly, yes, stubbornly, follow any certain dictum previously made, but which, when interpreted in the light of new surroundings, leads to consequences not contemplated, and which he afterwards learns would inevitably bring harm instead of good? Representatives are commissioned to think as well as act. Look at the condition of our country. Confidence is destroyed, 239 10 capital is unemployed, business is stagnant, labor is idle in t h e streets, yea, even in some places begging for bread, and winter is coming on. I t is believed t h a t it is within our power to relieve t h e situation. The President has called us together that we may take some action, and now we are told that we must look out for ourselves; t h a t we must settle this question with reference to our own political fortunes, so that we may hold our seats hereafter. Mr. Speaker, the way to be consistent is to do right; and the only road to public honor is along the path of self-denial. Whoever acts out his own honest convictions will have his self-respect, and by and by the confidence of others. But he is to be pitied indeed who belies his own convictions to gain some temporary advantage, for sooner or later he will be known as a dishonest man. T H E P A R T Y P L A T F O R M ON S I L V E R . Some gentlemen have assumed to speak for the Democratic party and say that if we do not provide for,free coinage at 16 to 1 we shall not keep our platform pledges to the people. Mr. Speaker, who are the people, and how are we to know when they have spoken, or what they have said when they have spoken. Sir, the district which I have the honor to represent is equal in intelligence and in patriotism to any in this Union. T h a t district in its preliminary conventions, selected for its delegates to the Chicago convention two able and representative men, each of whom was unalterably pledged to the nomination of Grover Cleveland for the Presidency. At Chicago they met t h e duly accredited representatives of their Democratic constituencies from all the States and Territories, and there was practical unanimity in favor of the President's nomination. These delegates were the direct representatives of the people. I t was remarked on all sides t h a t the convention was free from the domination of the professional politician, and in this respect it contrasted sharply with the convention which was held at Minneapolis. If ever a man was nominated by the people, that man was Grover Cleveland. This convention also gave us a platform of principles upon which their candidate should stand, and to this platform I wish to call attention. T h a t part which refers to this subject reads as follows: "We denounce the Republican legislation known as the S h e r m a n act of 1890 as a cowardly makeshift, f r a u g h t with possibilities of danger in the f u t u r e , which should m a k e all of its supporters as well as its a u t h o r anxious for its speedy repeal. We hold to the use of both gold and silver as the s t a n d a r d money of the country, and to the coinage of both gold and silver w i t h o u t discrimination against either metal or charge for mintage, b u t the dollar u n i t of coinage of both metals m u s t be of equal intrinsic and exchangeable value, or be adjusted t h r o u g h international agreement, or by such safeg u a r d s of legislation as shall insure the m a i n t e n a n c e of the p a r i t y of the t w o metals and the equal power of every dollar at all times in the m a r k e t s and in the payment of debts: and we demand t h a t ail paper money currency shall be kept at p a r with and redeemable in such coin. We insist upon this policy as especially necessary for the protection of the f a r m e r s and laboring classes—the first and most defenseless victims of unstable m o n e y and a fluctuating currency. That, Mr. Speaker, is the Democratic platform. The Democratic party is in favor of the free coinage of both metals without discrimination against either, '-but,'' to use the very language of the platform, (1) " t h e dollar unit of coinage of both metals must be of equal intrinsic and exchangeable value," or (2) "be adjusted through international agreement," or (3) "by 289 11 such safeguards of legislation as shall insure the maintenance of the parity of the two metals." Sir, I am willing to enact that platform into a law and I will vote for free coinage with any one or with all of the three conditions named. W h y , Mr. Speaker, I am a partisan. I do not wish to have it understood otherwise. I believe in partisan politics. I do not believe t h a t the world has ever seen the triumph and consummation of any great reform without the intervention of partisanship. Whenever a great man has evolved an idea which he believed would help or bless mankind he has always endeavored to bring others to his side, that, by their united efforts, his hopes might be realized. I am a partisan Democrat. I do not say I should always follow my party where I knew it was clearly wrong, but it is with great pleasure that I follow it now, because I can see that its present course leads up to that high and solid ground which insures individual prosperity and national honor. WHO LEAVES THE PLATFORM. But now, when we are seeking to carry out that platform, endeavoring to enact its principles into laws, what do we find? W e see that some gentlemen who have cooperated with us in the party have plunged into the trenches lately evacuated by the enemy, and having seized their deserted guns, they now fire into the ranks of the very party to which they claim allegiance. W h o now defends the Sherman law? Not the Republican party. W h o now standing behind that law use it as a f u r t h e r menace to public weal and demand some kind of concession and compromise as a condition to its repeal? Not those who are responsible for its existence; not those who gave it birth. No; they have disowned and dishonored it. Shall any of us who are Democrats now defend it? We lately found great cause for congratulation that we as a party had at last become thoroughly united for a reformation of the tariff. Before this Congress adjourns we fondly hope that that good work will be fully entered upon. But suppose that when we begin to write the schedules some gentlemen, who happen to live where protected interests are located, shall plant themselves behind the McKinley law and fight until the Government subscribes for an indefinite number of blankets, or steel-plated ships, or other product. Suppose we hear them say, You shall not strike down our industry; you shall not " lay the bloody hand of sacrifice " upon wool, nor woolen goods, nor upon steel; you shall not proceed until we are fully placated and provided for. M O N E Y OR M I N E S . Mr. Speaker, let it be understood t h a t when men talk about striking down silver they mean the silver industry, not the silver money. And let it be known that when men wish this Government to put its shoulder under the burden of free coinage, unaided by other countries, they propose that we shall attempt to pay $1.29 per ounce for all the silver that may be offered, when to-day it is only worth 75 cents per ounce in the market. Let it be understood that every coined dollar which now bears the imprint of our mints is with difficulty made as good as gold, and that by the adoption of free coinage our entire stock must inevitably fall into depreciation and dishonor, then we can clearly see what the gentlemen mean. I t is not the silver in the currency 289 12 for which they fight; but the silver in the mines and the bullion which may be in stock. No, Mr. Speaker, we are for the silver dollar. We propose to make and keep it good. W e are not hostile to the silver miners of Colorado and Nevada; they are our fellow citizens; but we can not subscribe to the doctrine that because we have used silver as money in the past, and that, relying thereon, they have developed the mines and made heavy investments, that therefore we as a nation have incurred an implied obligation to continue to coin all the silver t h a t comes, whether we need it or not. You will not find that in a Democratic platform. You will not be able to either drive or persuade us to enact it into a law. BIMETALLIC FRANCE. But gentlemen refer us to France, and say that she carries $700,000,000 of silver in her currency, while we have barely $600,000,000 in ours with nearly twice the population. They ask why, if France can use a per capita circulation of silver so large as that, why can not also we. This is a reasonable and natural question, and inasmuch as it has been often asked both here and elsewhere I have been at some pains to get the facts and the reasons for this condition. There are very many points in the laws and monetary system of France which have been entirely overlooked or misunderstood by the gentlemen who so often hold her up as a model. France has not free silver coinage. France has not national bimetallism; she has not even international bimetallism in the sense in which gentlemen use that term. France has the largest stock of metal money of any nation on the globe. She has $600,000,000 of gold, $700,000,000of silver. Her entire per capita circulation is $41.07, which is also greater than that of any other nation. I t is natural that gentlemen who desire a large increase in the coin money of the country should turn to France. I, too, Mr. Speaker, desire that we shall have more money—more coin money—as much, in fact, as the people need or will use. I am willing, therefore, to take lessons from France; to learn, if possible, how she circulates this unparalleled volume of currency and at the same time maintains the parity of her mstals and the stability of her whole financial fabric as well. How does she do it, Mr. Speaker? In the first place, she does not do it alone. She has entered into covenant relations with Italy, Greece, Belgium, and Switzerland; this helps. I a m willing to try t h a t part. In t h e second place, she has limited silver coinage. W e must have some limit, too, if we follow France. In the third place, these nations which I have mentioned, and which constitute the Latin Union, have provided in their compact for the final redemption by each nation of its own silver coin and the payment of any differences after settlement in gold; in other -words, for ultimate gold redemption. I hold in my hand a document prepared by the Director of the Mint which contains a synopsis of these laws, and I will read the provisions to which I have referred: The convention of the 23d of December, 1865. expired on the 1st of J a n u a r y , 1880. A new convention of the 5th of November, 1878. prolonged the duration of the L a t i n Union for five years. The convention now in force is dated November 6, 1885. By its t e r m s the suspension of the coinage of the 5-franc silver piece is maintained in the countries of the Union: but any of the con289 13 t r a c t i n g states may resume the free coinage of silver on condition of exchanging, during the entire duration of the convention, the 5-franc silver pieces bearing its stamp and circulating in the other states of the Union, for gold, on demand. The latter, however, would t h e n be at liberty not to receive the 5-franc silver pieces of the state t h a t resumed the free coinage of the white metal. I t was likewise stipulated in the corrvention of 1885 t h a t the coins of each of the signatory powers should be received by the treasuries of the others as well as by the banks of F r a n c e and Belgium, and t h a t the Union m i g h t be terminated any time a f t e r J a n u a r y 1,1891, by giving one year's notice. During the year following the t e r m i n a t i o n of the convention, the several governments are to proceed to the exchange and r e t u r n to the country t h a t issued them of the 5-franc silver pieces. Any balance r e m a i n i n g a f t e r the exchange has to be settled in gold, or bills of exchange, on the debtor state. Here, then, we have: First. International agreement; Second. Limited silver coinage; and, Third- Ultimate gold redemption. In addition to these, two other facts should he mentioned: First, France has no paper money in circulation of less denomination than 50-franc notes. Second, the French people really prefer their silver coin: and, perhaps because they have confidence in it, gladly accept it and miserly hoard it. Are the gentlemen willing to adopt the bimetallism of France or the Latin Union? No, Mr. Speaker; they would like to obtain the result, but they are unwilling to adopt the means by which alone it can be achieved. CURRENCY AND PRICES. One of the errors into which gentlemen here and elsewhere have fallen, is that the volume of money in existence regulates and fixes the value of property. This is not true. W e need no better illustration of the inaccuracy of that proposition than the conditions which now confront us. There is more money in the United States to-day than ever before. I have before me a table prepared by the Treasury Department, showing the per capita circulation in this country for a series of years, and at no time, I repeat, has the volume been so great as now. In 1860 it was $13.65, and it has gradually increased to $24.44. I t is not the money in existence, but the money in circulation t h a t affects prices. We are now witness to the fact that with a very large volume of money in existence we may have but little in actual circulation. Much more, therefore, depends upon the velocity of the current than upon the volume. Again, money not only multiplies itself by its activity, but it is supplemented by credit. By far the greater part of the world's exchanges are made without the intervention of actual money. W h a t part now has credit in measuring values? Mr. Speaker, the doctrine that the volume of actual currency controls prices, which has been quoted here, is entirely erroneous and should be discarded. It is the volume of actual money, supplemented by whatever is taken and used as money, which controls prices. It is cash and credit combined t h a t forms the volume of our currency. The philosophy which gentlemen have imbibed and teach is drawn from the experience and observation of that day when every man had his own "strong box," or carried his treasure in a leather belt; of the day of the camel and the caravan; of walled cities and fortified towns. W h a t might with some safety have been affirmed of a time or 289 14 country in which every exchange was performed with actual cash, would be wholly unsatisfactory when applied to a country and conditions like ours. WHAT CAUSES A FINANCIAL PANIC. Mr. Speaker, if we would decide this question intelligently, we must look beneath the surface: we must not treat the symptoms, merely, but endeavor to get at the root of the evil and apply the remedy there. I t is not a lack of money t h a t causes a panic. I t is the panic that causes the lack of money. The word currency is from the Latin currere, to run; the same from which our word courier is derived. I t is the currency that runs which serves the people. Is it not plain that any legislation or policy which would cause any portion of the currency to cease to run would to that extent operate as a measure of contraction? W e have more money, as I have already shown, than ever before, but it will not run. My friend, the gentleman from Louisiana [Mr. B L A N C H A R D ] , likened the currency to the b ood, which is the circulating medium of the body. The figure is not inapt, and I quite agree with him in his opposition to phlebotomy as applied either to the human body or to the body politic. To bleed either might be to debilitate or destroy. But, Mr. Speaker, no one proposes to draw away from the currency any part of the vital liuid. The trouble is t h a t we are, by a most unnatural process, forcibly injecting about 41 tons averdupois of white metal every day into the patient's veins, and it is this only which we propose to suspend. But I like the figure of the gentleman and will follow it a step f u r t h e r . W e must not forget the important part which the heart plays in this matter of the circulation, for the blood will not run when the heart ceases to beat. If our currency shpll run, there must be in the country some pulsating energy, some motive power, and this is and can be no other than the heart of hope, the spirit of trust and confidence. It is this t h a t speeds and spreads the actual money through the channels of trade, and it is this that, with magic power, breathes life into new forms, with which it supplements and expands the volume of the actual currency to the limit of the country's need. Just as our volunteer soldiery has, when called upon, filled and swelled the ranks of the regular Army, so does credit augment our actual money. Mr. Speaker, it is in the effect produced upon credit that the panic contracts the currency more than in all other ways combined. As I have said, cash is supplemented by credit. * Credit is one of the necessary concomitants of our civilization. One man's debt is another man's property, and, in a certain sense, in some forms, may even be his money. The Comptroller of the Currency, in his last annual report, treating of this subject, says (I read from page 31, volume 1, of t h a t report): The s u b j e c t of t h e c u r r e n c y of t h e c o u n t r y , a l w a y s one of i n t e r e s t and imp o r t a n c e , is especially so a t t h e p r e s e n t time, because of t h e differences which o b t a i n in t h e m i n d s of the people in r e g a r d to w h a t tlie c u r r e n c y should be and u n d e r w h a t a u t h o r i t y it should be created. I t will a p p e a r f r o m t h e s t a t i s t i c s given in t h i s r e p o r t to w h a t e x t e n t t h e use of m o n e y is m i n i m i z e d by m e a n s of clearing-house o r g a n i z a t i o n s in our p r i n c i p a l cities, and, for the p u r p o s e of showing to w h a t a limited e x t e n t 289 15 actual money enters into the business transactions of the country, I have followed the precedent set by my predecessors in office, in 1881 and 1800. and asked all the banks under the supervision of this Bureau to report all receipts for the 15th day of September, 1892. separately stated and classified. My object in this report has been to f u r n i s h reliable d a t a f r o m which the public could see and realize how small a percentage of business transactions are represented by actual money, and how impossible it is for the Government to f u r n i s h a volume of currency sufficient to meet the w a n t s of the people at all times; t h a t is, in times of general distrust or quasi panic. Over 90 per cent of all business transactions are done by ijieans of credit. W h e n the public lose confidence, and credit is impaired and refused, over 90 per cent of all business transactions are directly affected. It is easy to realize how impossible it is for the r e m a i n i n g 10 per cent of money to carry on the business of the country without monetary stringency and financial distress. The following table, taken from that report, will convey some idea of the limited extent of the use of money as compared with the various forms of credit: September 17, 1890. September 15, 1892. United States. Gold coin Silver coin Paper currency.. Checks, drafts, etc Total 3,474 banks. 3,473 banks. $3,702,772 1.399.991 24.210.463 297, 965,025 Per ct. 1.13 .43 7.40 91.04 $2,907, 017 1,372,054 26, 815.'621 300,110, 521 Per et. .88 .41 8.10 90. 61 327,278, 251 100.00 331,205,213 100.00 Some gentlemen may ask, W h y not have more money and less credit? My answer to that is that with credit you would not need the money and you would not want it, and without credit it would not circulate and you could not get it, however great the volume might be. Besides, the world is not moving in that direction. The time has come when " a good name is rather to be chosen,'' even in the commercial world, " t h a n great riches." A good name will cause the transfer of more property to-day than all the camels of Job could have carried. A good name unlocks the vaults of the usurer, turns the wheels of industry, and sets the sails of commerce upon the seas. Cash is the law of the savage, confidence an inspiration and instrument of civilization. Whatever, therefore, weakens or destroys confidence contracts the volume not only of the actual currency but all kinds of credit which take the form and fill the place of currency as well. In my humble judgment the present deplorable condition of our financial affairs is due and attributable more largely and directly to the operation of our silver policy than to any other or to all other causes combined. The President has well said in his message that— The knowledge in business circles among our own people t h a t our Gove r n m e n t can not make its fiat equivalent to intrinsic value, n o r 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 t h a t capital refuses its aid to new enterprises, while millions are actually withdrawn f r o m the channels of trade and commerce to become idle and unproductive in the hands of timid owners. Foreign investors, equally alert, not only decline to purchase American securities, but m a k e haste to sacrifice those which they already have. Mr. Speaker, it is not often that a people is able so clearly to trace its misfortunes to the existence of bad laws. It is not often that the opportunity is given to legislative bodies to afford 16 a specific and a speedy remedy for evils with which a nation is afflicted. T h a t occasion is before us; t h a t opportunity is ours. For that relief a great people pleads to-day. Shall we give it or shall we withhold it? I t is not necessary, in order to arrive at a correct conclusion of this momentous question, that we should appeal either to class or sectional prejudice, or invoke any feeling of hostility or hatred toward foreign nations. There is no blessing which could come from a correct solution of this problem that would not, like the dew of heaven, fall equally upon all, and there could come no evil out of it that would not, in time, like afoul contagion, spread from the humblest cot to the proudest palace. Love of country, true patriotism, does not consist in self-vaunting; it is manifest in sacrifice and service; it is to be esteemed as much for the wisdom of its purpose as by the measure of its devotion. Let us seek to do that which, in the calm, clear light of reason seems best, not for any special interest, not for any class or section, but for the welfare of our common country. Let us so act t h a t t h e Republic shall not be hindered in her progress; so that she shall go forward and not backward; so t h a t she shall not follow, but lead in that great procession of nations, which, though sometimes halting, still moves gradually and grandly on toward the high destiny of the human race. [Loud applause.] Friday, August 25, 1893, Mr. COOPER of Indiana said: Mr. SPEAKER: On a former occasion, when I had the honor to address the House at some length on the subject of the repeal of the Sherman silver law I made reference to various tables which I now desire to put in the RECORD. First, I call attention to the table showing the amount of gold and silver produced in the world during the last one hundred years. That table is as follows: Production of gold and silver in the world, 1792-1892. S i l v e r (coining value). Calendar years. 1792-1800. 1801-1810. 1811-1820. 1821-1830. 1831-1840. 1841-1848. 184 9 185 0 185 1 1852 1853. 185 4 185 5 185 6 1857 185 8 185 9 186 0 1861 1862 1863 289 $106,407,000 118,152, 000 76,063,000 94,479,000 134,841,000 291,144,000 27,100,000 44,450,000 67,600, 000 132.750,000 155. 450,000 127, 450,000 135,075,000 147, 600,000 133.275,000 124,650, 000 124,850.000 119.250,000 113. 800.000 107. 750. 000 106,950,000 $328,860,000 371, 67 T, 000 224,786, 000 191,444,000 274,930,000 259, 520, 000 39,000, 000 39, 000, 000 40,000, 000 40. 600, 000 40, 600,000 40,600,000 40, 600, 000 40,650,000 40,650,000 40,650,000 40,750,000 40. 800,000 44. 700, 000 45. 200, 000 49, 2C0,000 17 Production of gold and silver in the world. 1792-1892—Continued. Gold. Calendar years. 1864 186 5 186 6 1867 1868 186 9 187 0 187 1 187 2 187 3 187 4 187 5 187 6 18J7 187 8 187 9 $113,000,000 120,200,000 121,100,000 104,025.000 109,725,000 106, 225,000 106,850.000 107,000.000 99,600| 000 96, 200,000 90,750.000 97,500,000 103,700,000 114, 000,000 119,000,000 109,000,000 106,500,000 103,000, 000 1880 1881 1882. 102,000,000 Silver (coining value). $51.700,000 51,950,000 50, 750,000 54, 225,000 50,225,000 47,500,000 51,575.000 61,050,000 65,250,000 81,800,000 71, 500. 000 80,500,000 87, 600,000 81,000, 000 95,000,000 96,000,000 96,700,000 102,000,000 111,800,000 188 3 188 4 188 5 95,400,000 101,700,000 108,400, 000 115,300,000 105,500,000 118,500,000 1886...... 105,775,000 110,197,000 123,489, 000 113,150,000 120.519.000 130.817,000 124,281,000 140,706,000 162,159, 000 172, 235,000 186,733,000 196,605,000 5,633, 908,000 5,104,961,000 106,000,000 188 7 188 8 • 1889. 189 0 189 1 189 2 Total 120, 6 0 0 , 0 0 0 TREASURY DEPARTMENT, Bureau of the Mint, August 16, 1893. Second. I call attention to the decrease in the market price of silver as shown by the following table: Highest, lowest, and average price of silver bullion, and value of a fine ounce, bullion value of a United States silver dollar, and commercial ratio of silver to gold, by fiscal years, 1874 to 1893. Fiscal years. Highest. Average London price Lowper est. ounce standard, .925. Pence. Pence. 1873-'74 — 59| 57f 55j 1874-'75 — m 1875-'76 — 574 50 50i 1876-'77... 58? 55| 1877-'78_._ 52^ l878-'79_._ 48| 52tf 1879-'80... 53| hli 1880-'81.__ 52| 51 1881-'82 50| 52 iV 289 2 Pence. 58.312 56.875 52.750 54. 812 52. 562 50.812 52. 218 51.937 51.812 Bullion value of EquivaEquivaUnited Comlent value lent value merof a fine of a fine silver dol- cial ounce ounce lar at ratio with ex- based on average of silchange average price of ver to at par, price. silver, ex- gold. $4.8665. change at par. $1.27826 1.25127 1.15184 1.20154 1.15222 1.11386 1.14436 1.13852 1.13623 $1.28247 1.25022 1.15954 1.20191 1.15257 1.11616 1.14397 1.13508 1.13817 $0.98865 .96777 .89087 .92931 .89116 . 86152 .88509 .88057 .87880 16.17 16.52 17.94 17.20 17.94 18.55 18.06 18.15 18.19 18 Highest, lowest, and average price of silver bullion, ^ . — C o n t i n u e d . Fiscal years. 1882-'83 1883-'84.__ 1884-'85... 1885-'86 1886-'87 1887-'88... 1888-'89_._ 1889-'90... 18S0-'91.__ 1891-'92__. 1892-'93___ July Highest. EquivaEquivaAverage lent value London of a value fine lent of a fine price ounce Lowounce per with ex- based on est. ounce change average standpar, price. ard, .925. at $4.8665. Pence. Pence. Pence. 51.023 52/g 50 50x5b 50.791 51 § 49.843 48f 50*f3 49T g 42 47.038 44.843 47| 42 45 f \ 43. 675 41f 44* 41 *S 42. 499 44.196 42 49 47.714 54£ 43i 39 42. 737 46f 30i 38.375 40 33.060 32£ , 34f $1.11826 1.11339 1. 09262 1.03112 .98301 . 95741 .93163 .96883 1. 04195 .93648 .84123 .72471 $1.11912 1.11529 1.09226 1. 03295 .98148 .95617 .93510 .96839 1.04780 .93723 .84263 .72037 Bullion value of a United States silver dollar at average price of silver, exchange at par. $0.86490 .86115 .84507 . 79750 .76029 .74008 . 72055 . 74932 . 80588 .72430 .65063 .56052 Commercial ratio of silver to gold. 18.48 18.56 18.92 20.04 21.02 21.59 22.18 21.33 19. 83 22.07 24. 57 28.52 TREASURY DEPARTMENT, Bureau of ike Mint, August 1, 1893. Third. Upon the subject of the amount of money in circulation I submit the following table prepared by the Treasury Department: Amounts of money in the United States, and in circulation, on July l of each year from i860 to 1892, inclusive. Amount of Amount in cir- P o p u l a t i o n money in culation. J u n e 1. United States. $442, 102,477 452, 005,767 358, 452,079 <374, 867.283 705, 588,067 770, 129,755 754. 327,254 728, 200, 612 716, 553,578 715, 351.180 722, 868, 461 741, 812,174 762, 721, 565 774, 445,610 806, 024,781 798, 273,509 790, 683.284 763, 053, M7 791, 253,576 1,051, 521,541 1,205, 929,197 1,406, 541,823 1,480, 531,719 1,643, 489,816 1,705, 454,189 1,817, 658,336 1,808, 559,694 289 $435, 407,252 448, 405,767 334, 697,744 595. 394,038 669, 641,478 714, 702. 995 673. 488,244 661, 992,069 680, 103, 661 664;452.891 675, 212,'794 715, 889,005 738, 309,549 751 881,809 776, 083,031 754, 101,947 727. 609, 388 722. 314, 883 729, 132, 634 818, 631,793 973. 382,228 1,114, 238,119 1,174, 290. 419 1,230, 305,696 1,243, 925,969 1,292, 568,615 1, 252, 700,525 31,443, 321 32, 061,000 32,704,000 33,365,000 34,046,000 34,748. 000 35,469! 000 36, 211,000 36,973,000 37,756,000 38, 558,371 39,555,000 40,596,000 41, 667,000 42,796,000 43,951,000 45,137,000 46,353,000 47, 598,000 48,866.000 50,155,783 51,316,000 52, 495, 000 53,693,000 54,911,000 56,148,000 57,404,000 Money per capita. $14. 06 14. 09 10.96 20.23 20.72 22.16 21.27 20.11 19. 38 18.95 18.73 18.75 18.70 18.58 18.83 18.16 17.52 16. 46 16. 62 21.52 24.04 27.41 28.20 30.60 31.06 32.37 31.50 19 Amounts of money in the United States, and in circulation, on July 1 of each year from i860 to 1892, inclusive—Continued. July 1 1887 1888 1889 1890... 1891 1892 Amount of Amount in cir- Population money in culation. June 1. United States. $1,900,442, 672 2,062,955, 949 2,075,350,711 2,144,226,159 2,195,224,075 2,372,599,501 $1,317,539,143 1,372,170,870 1,380, 361,649 1,429,251, 270 1,497,440,707 1,601,347,187 58,680,000 59.974,000 61,289,000 62,622,250 63,975,000 65,520,000 Money per capita. $32.39 34.39 33.86 34.24 34.31 36.21 Circulation per capita. $22.45 22.88 22.52 22.82 23.41 24.44 NOTE.—The difference between the amount of money in the country and the amount in circulation represents the money in the Treasury. Currency certificates, act of June 8, 1872, are included in the amount of United States notes in circulation in the tables for the years 1873 to 1891, inclusive; in 1892 they are reported separately. The foregoing tables present the revised figures for each of the years given. And also the following, from which it may be seen that we had in the country $9,149,692 more money on August 1, 1893, than we had at the same time last year, when there seemed to be sufficient for all demands: Statement showing the amounts of gold and silver coins and certificates, United States notes, and national-bank notes in circulation August l, 1893. General stock, coined or issued. Gold coin Standard silver dollars Subsidiary silver Gold certificates Silver certificates Treasury notes, act July 14, 1890 United States notes Currency certificates, act June 8, 1872 National-bank notes Total Amount in Amount in In Treas- circulation 'circulation ury. Aug. 1,1893. Aug. 1,1892. $520,273,567 $103,363, 626 $416,909,941 $410,4Zi, 360 419,332,450 363,108,461 56,223,989 57,031,862 76,563,878 12,556,74$ 64,007,129 63,346,937 93,710 87,611,029 136. 861,829 87,704,739 2,843,114 330,188,390 327,336,823 333,031,504 148, 286,348 346,681,016 4,512,210 143,774,138 101,756,301 22,286,612 324,394,404 311,852,278 8,340,000 183,755,147 485,000 7,855, OOOi 26,720,000 3,620,150 180,134,997 166,595,935 2,123,968,649 512,869,6321,611,099,01711,601,949,325 i 1 In f u r t h e r explanation of this table, it should be understood t h a t of the item standard silver dollars, which the table shows a r e in the Treasury, viz., $363,108,461, the sum of $330,188,390 are really in circulation in the form of silver certificates, as is shov^n by the item under that head. I call attention to this because my attention has been directed tt) an editorial in a very respectable newspaper, which undertakes to account for the panic partly upon the ground that the Government is hoarding these silver dollars, it having escaped the attention of the editor that these dollars were in circulation, but in the other form. Since August 1, when this table was prepared, the circulation 289 20 has in various ways been very much increased. lisle, in a recent interview, said: Secretary Car- No greater m i s t a k e could be committed t h a n to assume t h a t the present financial e m b a r r a s s m e n t is caused by an actual scarcity of money in the country. The f a c t is t h a t the amount of currency of all kinds in the country, outside of the United St ates Treasury, on the 25th day of the present month, was $58,452,350 g r e a t e r t h a n the a m o u n t outstanding on the 1st day of the month, and $70,294,783 m o r e t h a n the a m o u n t outstanding on the 1st day of September, 1892, when business was active and prosperous. There is money enough to t r a n s a c t all the legitimate business of the people, but the difficulty is t h a t it has been w i t h d r a w n f r o m circulation and hoarded. The t r u e remedy is to restore confidence and credit, and t h u s p u t t h e money now in the country in circulation again. 289 o
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