Democratic Sentinel, Volume 1, Number 49, Rensselaer, Jasper County, 18 January 1878 — The Gold Conspiracy. [ARTICLE]

The Gold Conspiracy.

[From the New York Graphic.] In one year we are to resume specie payments. Money must then be either specie or convertible at will into specie. The Government has outstanding, in round numbers, $350,000,000 of greenbacks; the national banks have $320,000,000 of circulation; total, $670,000,000 of currency. Resumption means that the holder of these notes can at will obtain specie for them. Now, experience shows that specie payments cannot be maintained without at least one-third ns much specie as paper. That is, the Government and the banks must bold at least $217,000,000 of specie. They now have only one-half of this. To guard against panics they ought to hold at least $800,000,000 of specie. We must then, during the year 1878, either add between $100,000,000 and $200,000,000 to our stock of specie, or wo must reduce the volume of our paper money one-half. To draw this year $100,000,000 of gold from Europe is quite impossible; it would disturb values there to such an extent that their three great banks that hold the gold would not permit it to leave. We could not even draw in gold the $15,000,000 for the Geneva award, but an arrangement had to be made to remit to us bonds instead of coin. We cannot get it from our gold mines, for they produce only about $40,000,000 per year. If, then, we stick to gold, we must either indefinitely postpone resumption or reduce the volume of our currency one-half. But, if we contract it so much as that, it ruins every bank in the country, for its discounted paper could not be paid; it ruins every man whose property is mortgaged for half its value, for it would shrink one-half in value from its present low point; it ruins the merchant and manufacturer, for their stocks must, as in the past four years, continue to shrink in value. Suspensions and bankruptcies would meet us on every side. But this is just what the gold conspirators want and are working for with might and main. They have now got their hands upon the property of this country through the debts incurred in times of inflation, and they mean to bold their grip until they can sweep it all into their coffers. This, in substance, was confessed by one of them in this city a few days since in the following dialogue, which took place between two men of wealth, whom, in order not to be personal, we will call Mr. C. and Mr. H. Mr. C. is in favor of letting up on the people now. Mr. H., who may have a vote at Washington on the question, wishes to continue to turn screws on the people till their last dollar o f property is squeezed out to pay their obligations. I give the substance, but not the exact words of their colloquy. C.— Mr. H., I have a large amount of money lying idle, and my opinion is it is fi good time now to invest it in property. H.—Mr. C., do not do it yet; the time has not come ; we are not near to the bottom yet. I have $250,000 on deposit at only li per cent., and awaiting investment. If we can defeat this remonetization of silver and hold on to resumption in 1879, property must go down a great deal lower than it is now, and we can get double for our money. You just wait till we see what we can do at Washington. C.—Mr. H., you seem to be looking out well for number one. I think I will follow your lead for a while longer and see whether you succeed. But I am afraid that if you defeat silver you will also defeat resumption, for the people cannot bear much more depression of prices—resumption in gold alone means that. The two parties to the above conversation are widely-known citizens. They disclosed the self-interest that effected by stealth the demonetization of silver in 1873 and now oppose its restoration. They want $2 of property iu payment for $1 of debt,, and they intend to use every means in their power to get it. Our mines produce $40,000,000 of silver per year. If we restore silver to its proper position as money, then with the $40,000,000 products of our gold mines we shall have $80,000,000 added to our stock of specie by the end of 1878. This would bring us close up to the minimum sum required for resumption. Added to the product of the gold and silver mines for 1879, and it would give us an ample supply of coin for permanent and safe resumption; and, do it, too, without any severe contraction or further depression of the industries of the country. The national honor and credit will be preserved by resuming in silver and gold. The two metals are the money of the world, and are the money of the constitution—they are the money of our national bonds. Payment in either or both fulfils the bonds in letter and spirit. To pay in a dearer metal than the bond requires shows weakness akin to appeasing a tyrant with a gift instead of ttendering to him simply his due. So perfectly is this understood by investors, not only in Governments but in other securities, that whan they mean gold they have had gold alone stated in the bond or contract. The courts sustain these gold contracts as they do silver contracts and currency contracts; but they never change the contract from one kind of money to the other. To do so would be the highest exercise of arbitrary power. It would be judicial robbery. To do the gsame deed by legislation is legislative *robbecy. Our railroads, coal mines, factories, furnaces, towns, cities and States have incurred some $4,000,000,000 of bonded debts, all in times when money was either paper or gold and silver. To reduce money to gold alone and require payment in that, is to double upon property the weight of these debts. It will take twice as much property to pay them. It doubles, by legislation, the property of all holders of money or obligations calling for money; that is, of the rich, and it does this not by creating property, but by taking it from the industrial and active business classes and turning it over to the money-lenders. Were it the object of the Government to build up a moneyed aristocracy, this would be an effectual way to do it; but, for a free Government, “ a Government of the people, by the people, and for the people,” to attempt such a thing is suicidal. If accomplished, we may expect a revolution of parties as soon as the people can again come to the ballot-box.

DEXTER A. HAWKINS.

10 Well utteeti