People's Pilot, Volume 3, Number 46, Rensselaer, Jasper County, 4 May 1894 — NOT TO BE TRUSTED. [ARTICLE]

NOT TO BE TRUSTED.

Gold I. Very Brave in Times of Peace and Prosperity but a Great Coward in Times of War. A renewal of the agitation for internal bimettalism is like asking a new trial before the same jury whose interest in the controversy caused the miscarriage of justice. Gold without an international agreement is practically international money, because that has the same value uncoined as coined throughout the commercial world. Such international value of gold subjects the business of this country to the financial convulsions of every other country in the commercial world. Financial disturbances and panics iu England, Germany, or any other European country, affect business in the United States almost as directly as financial trouble in one of the states of the union. The Baring failure in 1890 produced great depression in the United States, and, according to the statement of Senator Sherman in the debate at the extra session of congress, would have produced a panic in this country in 1890 if it had not been for the new money issued under the Sherman act. Last year a European syndicate required a large amount of gold to manipulate the Austrian debt and place that country on a gold basis, while bankruptcy in Australia created a new demand for gold in Loudon to meet the demand. The gold required to supply those extraordinary demands could not be obtained in Europe, because every country in Europe having gold de vised some means to prevent its export. Our secretary of the treasury has power to guard the gold reserves in this country by exercising the option belonging to the United States to redeem government paper and pay all government debts in silver, but, in his excessive generosity to exporters of gold, he gave away that option, and then joined in the hue and cry that the credit of the United States was imperiled by the exportation of gold to Europe. Less than a hundred millions were drawn from this country .to meet the demand of speculators and embarrassed debtors in Europe, and as a consequence values amounting to thousands of millions were destroyed in this country. The country has received more injury in the last twelve months from the gold which deserted us when needed at home than from all the financial calamities of the last twenty years. The repeal of the Sherman act and the adoption of the gold standard nave placed every enterprise in this country at the mercy of foreign speculators. There ought to be some means to save the business of this country from stagnation and panics resulting from the folly or extravagance of foreign countries. The power of international money for evil has been recognized from time immemorial by all civilizations. When war threatens the stability, independence, or existence of a nation, international money always disappears. It will not remain in circulation and fight the battles of any country. It has no home; it is a citizen of the world, and always retires before the smoke of battle to a safe retreat where luxury dwells.

Silver never was quite as cowardly or treacherous as gold when the parity was maintained by free coinage. It was more bulky and difficult of transportation, and besides, it was in circulation among the people at large, which made it very hard to collect in quantities for export. Silver is now good domestic money in every country where it is used. It preserves the equity of contracts, stimulates business and creates prosperity. The 8700.000,000 of silver in France not only does duty at home, but stands guard over 8900,000,000 of cowardly gold and prevents its exportation, as our silver would have done in this country if the secretary of the treasury had not thrown open the gates and invited foreign exporters of gold to raid the treasury. The suspension of silver coinage in India struck down the manufacturers of that country, paralyzed production of every kind, and made it necessary to increase the national debt sixty millions to carry on the government during the current year. The United States has been more fortunate. The wreck of the treasury, with the consent of the secretary, by the exporters of gold, and the adoption of the gold standard have compelled the United States to borrow only 850,000,000 for current expenses. No country has relied on gold or any other international money during a war threatening national existence. All countries in such emergencies have created and used national money. There can be no doubt that the loss in business and by enforced idleness of the people has been greater in the last twelve months than the entire cost of the civil war. If national existence can only be saved in time of war by discarding international and adopting national money, why may not national distress be prevented in time of peace by the same means? National, not international. money made England mistress of the world in the conflict with the great Napoleon; gained the independence of the United States in the war of the revolution, and made possible the preservation of the union in the last civil war. National, not international. money will revive enterprise, find work for every willing hand, and restore contentment and prosperity in every state of the union. —Senator William M. Stewart.