Jasper County Democrat, Volume 1, Number 24, Rensselaer, Jasper County, 24 September 1898 — FINANCIAL SYSTEM. [ARTICLE]

FINANCIAL SYSTEM.

Power of the United Statee to Make Its Own. On May 86. 1898, Hon. John F. Shafroth of Colorado delivered a speech in the house of representatives in Washington which will more than pay the friends of free ooiftage to read. Mr. Shafroth gives a freshness to a subject which has been discussed from the beginning of the government, bat with supreme energy since 1873, when by fraudulent legislation it waß discontinued. Since that date arguments, logic, statistics, statesmanship of the highest order have been ooutinnously arrayed against the legislative fraad in the hope of reinstating silver in its constitutional rights at the mints, and the battle is still on and the friends of silver are as defiant and as aggressive as ever. The free coinage issue, at the ratio of 16 to 1. is perennial, undying and unceasing, and will oontinne to challenge the best thought of the nation. While, through the perpetration of a fraud, error is on the throne and trath on the scaffold, it will require time, patience, loyalty to the right and the indomitable oonrage of conviction to make truth and error change places; bat as certain as the eternal years of Qod are pledged to the trinmph of truth, so certainly will victory at last bud and bloom on the "thorny stem of time.” The speech of Mr. Shafroth is well calculated to inspire the friends of free coinage with courage. The facts ha groups and presents may not be new, and the arguments by which he enforces them may be along old lines of thought, but, nevertheless, their presentation is vigorous and the reasoning cogent, and, as a campaign document, the speech is worthy of recognition in campaign literature. A Flood of Silver. The gold standard advocates have sought to frighten the American people with all sorts of bogies, scarecrows, goblins, eta. to convince them that free coinage would prompt all the nations of the earth to unload their silver bullion, coin, silver spoons, ladles, teapots, buttons and trinkets of every description upon the United States to have it coined into dollars. The speaker quotes Mr. Secretary Gage as saying there is now in the country gold coin to the amonnt of $696,000,000, and that free coinage of silver would banish it from circulation. This is one of the gold standard goblins, but supposing it to be trae, rather than a baseless fabrication, it would as Mr. Shafroth points out create a demand for $696,000,000 of silver ooiu, or $9.94 per capita. Now, suppose that each inhabitant of the United States had $9.94 in his or her possession constitutional money of the government, would it be a source of danger? Would it be in tbe nature of a home wrecking factor—would it shut up mines, dose down factory and forge and prove an industrial calamity? Grouping tbe population into families of five, each family would have $49.70. Would that make the home gloomy? Would that amount of ■Over coin create despondency and despair? Mr. Shafroth effectually disposes of the silver flood bogy. He shows that there la not mare than $86,000,000 silver bullion in tbe world outside of the United States, and that, since 1878, no doe has sought to hoard silver bullion, because prices of the article have steadily declined tinoe that data. He then proceeds to show that the country cannot be flooded with silver from ths arts, that is, from manufactured silver, and in support of the proposition points out that the oost of workmanship, in molding, polishing, gilding aud carving and other ornamentations makes such silver now more valuable than ooin or bullion, and that a man would be an idiot who would ooin into dollars something that was worth more in the shape of a work of art. The speaker is equally strong in showing that Europe would not dump its silver coin upon the United States. "There is,” he says, "a great quantity of silver in the form of coins existing in Europe. It is said that they are of the value in our money of $1,600,000,000, but the man who says that these coins will oome to this oountry in the event that we open our mints to the free coinage of silver is either ignorant of or ignores one important fact—that is, that the oolns of Europe are in circulation upon a gold valuation, just like our silver dollars in this oountry are now in circulation upon a gold valuation. What would you think of the man who would take a United State* silver dollar to our mint as soon as it was open to free coinage and have it coined into another dollar?” Again, says Mr. Shafroth, in his argument relating to the flood of silver which causes the bowlings of the gold standard advocates. The ratio at which coins are in circulation in Europe is 15)4 *° 1. which makes the coinage value of silver in Europe SI.BB an onnoe, whereas in this country the ratio is 16 to 1, which makes the coinage value of silver $1.89 an ounoe. The man holding European coins would lose not only the freight and insurance in bringing those oolns to this oountry, but also would lose 4 sents on each ounoe of stivercoins that he brings. Those Europeans may not be so intelligent and bright as are the Americans, bat they know enough not to lose 4 cents on each ounoe of coins they import to us. Thus it is dear that silver coins in circulation in Europe would not be brought to our mints. But the gold standard advocates see another goblin, or a dozen of them representing free silver countries, such aa China, Slam, straits settlements, Central and South American states, Persia, Tripoli and Japan. Omitting Persia, Siam, the straits settlements, an Asiati* oountry, and Tripoli, wa have Mexioo with tilver amounting to $66,000,000 or $4.64 per capita; Oentnl Amerioan atataa with $19,000 000 of tilver, or $8.14 par oapHa; BoathAmmiean states with $80,000,000 of tilver. er Mm Ohtau with $750,-

000,000 of silver, or SB.OB per capita, and Japan with $84,000,000 of silver, or SB£R || per capita of population. In the countries named it is estimated / there is $931,000,000 of silver in circulation, ou an average of $2.59 per capita, one of the politioal divisions named having but 83 cents per capita. This boing the condition, does anyone not engaged in the scarecrow business apprehend a flood of silver from any one of the countries named. Au Abundance of Silver. .3 The gold standard advocates, (and ia using the term "gold standard advocates” reference is made to the leaders and managers of the Republican party), such, for instance, as Senator Fair- . banks and the lesser lights of the party in Indiana, who would have the people believe that in an abundance of silver dollars the country would suffer ths direst calamities. But common sens* comes to the rescue of all reflecting men and the goldbugs are asked to name a nation that became bankrupt with an abundance of silver, bullion or coin. They are asked to name an individual, or firm, or corporation whose affair ever went into the hands of a receiver because of an abnndanoe of silver assets. When did a farmer forfeit his farm owing to the fact that he had a surplus of silver coin? “No nation,” says Mr. Shafroth, "waa ever injured by its people having aa aboudauce of the precious metals, and instead of being a detriment, it would produce the greatest era of prosperity in the history of this country.” Nevertheless, the enemies of free coinage hav* for years sought to frighten the peopl# with the bugbear that no greater disaster could befall the country and tha people than to have an abnndanoe of silver dollars. Bat the people have discovered that the flood of silver predicted by goldbugs has not arrived—and they are anxions to welcome it to their business houses, factories and shops and to their homes. They demand the free and unlimited coinage of silver at the ratio of 16 to 1, and are not to be stampeded by any of the bugaboos upon which the goldbugs have relied to obscure their schemes. How Millions of Silver Dollars Coaid Bs Used. Mr. Shafroth points out how million# more of silver dollars could be used by the people in promoting their interests. He says: "There are in existence $346,000,000 of credit money, called United States notes, the existence of every dollar of which is dne to the fact that we hav* not enough circulating medium without tnose notes. Every dollar of those notes could be retired by the substitution of the silver dollar or the silver certificate, and thus there would be a demand which the government could * create for $346,000,000 more of stiver. "But these are not all the powers of oar government. There are in existence $231,441,686 of national bank notes. The only excuse for their existence is the fact that they are absolutely needed as a circulating medium. Every dollar of that credit money could be retired and tilver or silver certificates substituted in plaos.” Here we nave it olearly demonstrated that should the government coin 777.441,686 additional dollars, and izsn* ail. ver certificates to that amount, we should timplv retire the greenback and national bank notes, and substitute silver certificates, based upon that number of coined dollars held for their redemption. But where such eminently wise and statesmanlike propositions are the goldbugs display another hobgoblin and repeat their platitudes about a flow of silver, etc., ana with special —"p h nrtt assert that the United States does not possess the power and resources required to establish bimetallism. Referring to the Powsr and Wealth of tha Ualtad Statsw Mr. Shafroth epitomises the facts Ity saying oar population of 76,000,000 is. equal to 700,000,000 of the average at the balance of the world—that atu wealth in 1890 was $62,000,000,000. against $291,680,000,000, or 37 per cent of the wealth of all the nations of tha earth. The United States operates about onw half of the railroad mileage of the world and the freight transported by them was in 1892 846,000,000 tons, against L--348,000,000 tons carried by all the railroads of the world, or more that 69 per cent. The steam power of the United States is 14,400,000 horse power, or more than one-third of the world's steam power. The carrying power of vessels need in lake and river traffic in tha United States is 9,800.000 tons, or onefifth of the carrying power of the world on the high seae. Of the world’s total production of cotton, 18,880,000 bales of 400 pounds each, in 1896, the United States produced 10,286,000 bales, or tea thirteenths, and in 1897, three-fourths of the world’* crop. The United Stales produoee more than one-third of all tha grain products of the world, the product far 1896 being 8,688,180,000 bushels, against 9,900,000,000 bushels of other countries. We produce more than onefourth of the pigiron of the world, onethird of the steel, more than one-half of the oopper of the world, while in ooal we produced in 1892 198,000,000 tons, against 600,000,000 tons of all other countries. Mr. Shafroth continues tha comparison in which the United States steadily rises in overmastering wealth, power and resources, and stands confessedly in the van of the nations of the earth. Why Farad* Such Facta T But why make these astonnding disclosures of wealth resources and power of the United States if they do not deepen and rivit the convictions, that we are capable of determining for ourselves, all measures whatsoever relating* to the welfare of the nation, and the free coinage or tilver is a measure of such vital importance that it is soaroely less than treason to consult any other nation upon the face of the earth aa to the policy we should persue in In all other matters the United Statsa is proud of its prestige, defiant and independent, but when it oome* to shaping our financial poliev the goldbug managers of the Republican party are ready and williimto surrender their oountry and all or wa vast interests to the dictation of foreign powers and arqniasne in such h □ mutations as they ! choose to impose. But tha purpose of! reduoe stiver to redam-!