People's Pilot, Volume 3, Number 29, Rensselaer, Jasper County, 5 January 1894 — SILVER AND THE TARIFF. [ARTICLE]

SILVER AND THE TARIFF.

A Plan to Graft Bimetallism on the Tariff | Bill in Order to Bring Gold Using Countries Into Co-operation. Those who read, in September Arena, the lucid and comprehensive paper of ; George C. Douglas, touching the evils j afflicting the economic world, will fol-1 low with equal interest another article I from the same forceful writer, in the December number, upon the topic “Can the United States Restore the Bimetallic Standard of Money to the World?” The acute monetary crisis experienced since the original article was published strengthens the conclusion of the examination then made, by showing that the shipping out of the country, or withdrawing from sight, of a few mil- | lions of the money of ultimate redemp-1 tion is sufficient at any time to produce a financial convulsion ruinous to all I legitimate business. After pointing ; out the demonstrable fact that a comparatively few people in this countrj' are now in command of sufficient gold to form twenty combinations, either one of which could withdraw from sight enough gold to reproduce, at will, the financial troubles of July, the writer asks: “Can the legitimate business world be blindly led not only to continue but to increase this dangerous condition by adhering to the insufficient and constantly contracting gold standard?” But Mr. Douglas does not confine himself to the propounding of conundrums. After taking up and discussing the various plans of relief proposed, he enters upbn a somewhat elaborate argument in support of his proposition that the United States has it in its power at this time to re-estab-lish bimetallic coinage and to compel the whole civilized world te recognize the silver coinage of this country at its full face value. Nor does he depend upon mere assertion. He first points out the importance of the trade of the Unit d States to the various nations of the earth; groups them according to their position on the monetary standard, whether monometallic gold, bimetallic or exclusively silver, and shows the extent of the import and export trade of each with this country. He analyzes the exports of each nation to the United States and points to the significant fact that the exports of the exclusive gold-using countries are mainly of such articles as can be produced in this country, whereas the countries that consume the greatest quantities of A mericaik productions, raw or manufactured, are'the exclusive silver-using countries, with whom settlements of balances can be made with the silver of this country. Now, after lucidly setting forth the facts, Mr. Douglas clearly shows how, by the discriminating adjustment of tariff duties and the inauguration of reciprocal treaties the United States can enlarge its markets for its own products, successfully compete with Great Britain and Germany in fields never before entered, and make of our silver riches a resource instead of a liability and a burden. “The privileges of paying for our imports with silver at a ratio not higher than our legal ratio,” he said, “would be a valuable consideration, the concession of which would constitute an equitable claim for a reciprocal concession by us; and would therefore obviate the objection that might otherwise be based upon the usual ‘favored nation’ clause in commercial treaties, and fully justify us in granting preferential trade advantages in our markets to countries conceding the valuable consideration to us. The principle can be carried into effect in various ways. One occurs to the writer as simple and effective, and will be roughly outlined, to exemplify the

principle more clearly. It happens that in all probability a new tariff law will be enacted by the United States government in the near future. In that law provide for a minimum and a maximum rate of duty, to be collected on articles of import. First, fix the minimum rate of duty at such a figure as may be deemed expedient for the best interests of the country, irrespective of this question under discussion; in short, adjust the rate that would be adopted if it were to be offered unconditionally and indiscriminately to the whole world. It matters not whether the principle of free trade or that of protection is guiding- the views of those fixing the rates. Then fix the maximum rate as much higher than the minimum as will serve to render competition in our markets impossible between goods paying the different rates of tariff for the privilege, of entering those markets. Provide, by a section of the act, that on the products of countries which accord to silver full legal tender power in the satisfaction of all pecuniary obligations, at a ratio not higher than a legal ratio of the United States, shall be collected the minimum rate of tariff; and that on the products of countries refusing such recognition and use of silver, the maximum rate shall be collected. This will transfer the production of the articles we have been importing from countries snail continue on the single gold standard, either to the United States or to some other bimetallic country. A tariff law on that principle p free bimetallic coinage law' as indicated, given to the country simultaneously, would most certainly bring gold-asing countries into co-operation as soon as they could effect the necessary changes in their laws. If British and German products are superseded in our markets by American, French, Belgian, Dutch, Italian, Spanish, and other products, they will cost us no more, and will so strengthen the force of the demand of the English and German people upon their government for the adoption of the bimetallic standard as to compel the concession in no long time. And thus the United States will have restored to the wwld the bimetallic standard. Our markets are too valuable to England and Germany to be sacrificed in the interest of their moneyholding’ classes. But perhaps someone will say they would retaliate. Why? How? In what way? The principle and the method are both old and fully recognized as legitimate. Hence there is no cause of action. But how are they to retaliate? They buy of our products only what their neces-

sities compel them to; they cannot obtain these indispensable necessaries elsewhere. So that method is unavailable. But we owe them vast sums of money—not the governments; and if the individual creditor should demand payment when his bond is due, we will pay it; if not with onr own, then with money borrowed elsewhere, at equally favorable terms. Our government is master of the situation. Will it use the advantage for the benefit of its people?” Mr. Douglas feels certain that the enactment of an unlimited bimetallic coinage and legal tender law at our old ratio, with an invitation to the bimetallic world to confer with us and agree upon a ratio common to all, would be regarded as a declaration, at least, of our financial Independence of England, and secure to us the confidence and co-operation of the countries adhering to the single silver standard. —Leadville (CoL) Herald-Democrat.