People's Pilot, Volume 4, Number 1, Rensselaer, Jasper County, 22 June 1894 — BRITISH TESTIMONY. [ARTICLE]

BRITISH TESTIMONY.

A London Financial Paper Gives Some Sensible Views on the Silver Question. The assumption of those who are now trying 1 to convince the people that the bimetallic financial policy is all wrong and the Wall street policy all right, is that the moment this country, acting independently of other nations, opens its mints to the free coinage of silver, gold will go to a premium and disappear from circulation, and we shall be on a silver basis. “Look at Mexico!” the Wall street organs cry. “Do you want to be like Mexico?” This assumption is intended to dispose of the whole silver question and to make the financial policy of Mr. Cleveland invulnerable to criticism. But let us examine it. Let us take the assumption at its worst and see what amounts to. Let us admit that the result of the free coinage of silver would be what the Wall street organs claim — that gold would go to a premium and disappear, and that our currency would be on a silver basis. The main question to consider is purely a practical one. Would the silver basis be a better thing for our country and our people than the gold basis which is now displaying its deadly effects? The whole matter is one of practical utility. There is no choice per se between the two money standards. One is as good as another if it be equally as beneficial to the people. One is better than the other i/ it is calculated to improve the condition of the people and enlarge their prosperity. The Mexican argument is the suggestion of gross ignorance. It is the gold standard that is now Mexicanizing our people and destroying the vital forces of their prosperity. The silver standard would have the -same effect in this country that it has in Mexico if our people had no more energy than the Mexicans, if they were commercially isolated as Mexico is by reason of its small export trade, if their resources and their industrial prospects were no greater than those of . Mexico, But how is the silver standard affecting The people of Mexico? The following paragraph, taken from the report of the Mexican Central railway, tellsapartof the story: “The decline in the price of silver has caused a large curtailment in importations, as such importations must be paid for in gold, but Mexico; being on a silver basis, and wages and the necessaries of life not being affected by its decrease in value,' the' effect has been to stimulate manufacturing and other industrial enterprises of the country and increase the local transportation. This is evidenced by the fact that the local freight earnings in the last quarter of 1893 show an increase of 30 per cent, over the same

period of 1892. ” Under the gold standard the loss in earnings of the railways of the United States lias been how much? Certainly not less than 50 per cent, during the past twelve months. But this apart, what would be the result of the silver standard in our relation with Europe and our trade relations generally? We shall permit good British authority to speak on this subject. The Loudon Financial News, which is an undoubted authority, even in Wall street, makes this statement: “There can be no doubt about it, that if the United States , were to adopt a silver basis to-morrow British trade" would be ruined before the year was out. Every American would be protected, not only at home,' but in every other market. Of course, the states would suffer to a certain "extentthrough having to pay their obligations abroad in gold,, but the loss on exchange under head would be a mere drop in the bucket compared with the profits to be reaped from the markets of South America and Asia, to say nothing of Europe. The marvel is that the United States has not long ago seized the opportunity, and but for the belief that the way of England is necessarily the way to commercial success and prosperity, undoubtedly it would have been done long ago. Now, Americans are awakening to the fact that ‘so long as they narrow their ambition to becoming a larger England’ they cannot beat us. It has been a piece of luck for us that it has never before occurred to the Americans to scoop us out of the world’s markets by going on a silver basis, and it might serve us right if, irritated by the contemptuous apathy of our government to the gravity of the silver problem, the Americans retaliate by freezing out gold. It could easily be done, and we propose shortly to show, by evidence collected from perfectly unprejudiced sources, that even now the process has begun, and is proceeding at a rate that will astonish most people, and probably make this country regret that it did not at an earlier stage fashion its monetary policy on principles of friendliness to other nations, instead of on a basis of short-sighted selfishness.” The foregoing appeared in the London B’inancial News of April 30, and it is worthy the attention of all thoughtful men who take an interest in this great question. As far as it goes, and it goes pretty far, the statement of the Financial News could not be stronger. The editor, perceiving that this country has the solution of the money question in its own hands, expresses surprise that our people have not disposed of it sooner. The only reason that.it has not been done is because the interests of British bankers and of eastern bankers are practically the same. Lombard and Wall streets are joined together, and they are backed in this country by the political tories who have thus far controlled our financial legislation. • The Financial News says that the only difficulty this country would find in a silver basis would be the payment of its foreign debt in gold. This would be the case if we were commercially isolated —that is to say, if our exports were of no importance to Europe—\jut our gold debt abroad would be paid in our cotton, wheat and other commodities that Europe finds necessary to its comfortable existence. If the free coinage of silver would really place us on a silver basis, as tfie Wajl street prgans assume, our stock of gold’ would go to a premium here, und be gradually

shipped abroad. This would lessen the financial strain in Europe and cause prices to rise there. They would rise, in fact, to the extent of the gold premium here, and our products would be benefited. We should have no more difficulty in paying our gold debt than we have now —and not as much,for the enlarged volume of currency that the free coinage of silver would give us would revive all forms of business, restore prosperity to all interests, and give a renewed impulse to industrial progress and to the development of our material resources. But, as matters stand, how are our railroads to pay the interest on their securities held abroad? Their earning are decreasing every week, and it is only a matter of a few months when the most prosperous of them will have to default. That is the outlook now and there is no reason why there should be any concealment about it. In addition to this, our gold is going out whenever the European bankei*s choose to put on the screws, and there is nothing to take its place in our circulation, and no way to replenish the treasury except by increasing the bonded debt of the people. Therefore—assuming that the Wall street organs are correct —wouldn’t the silver basis be better for this country than the gold basis that is now crushing out the prosperity of the people?—Atlanta Constitution. A MISFIT. Public Marriage of Silver and Protection. According to the London Fortnightly Review ex-Speaker Reed has taken a bold position respecting the tariff and free silver. It will unquestionably have a considerable influence in England, as well as in our own country. The ex-speaker refers to the monthly purchase of silver, under the act of 1890, as a “most vicious proceeding.” Mr. Reed acknowledges that the situation has entirely changed in the past six months, and the country must hereafter consider silver and the tariff as one question. Mr. Reed’s method of coercing gold governments would be to form a bimetallic league of governments, on a high tariff basis, offering reciprocity as the reward of free coinage of silver. Here it will be noticed that the ex-speaker makes protection as the lever for securing free silver coinage. -This may appear like quite an audacious move for a public man who has been so conspicuously identified With the opponents of silver expansion. As he. means to have inferred in his interview, this change only reflects that which has taken place in the minds of very many public men in the eastern states during the past six or eight months. It will not be forgotten that the ex-speaker defeated, by the use of the power of his office, one free coinage bill from fear that if it received the approval of the popular branch the president at that time would hot have possessed the necessary grit to veto it, and encounter the opposition of the silver ring. “Tom Reed,” the favorite of New England republicans, is always prompt and decisive in what he undertakes, and if it is absolutely necessary for the prosperity of the country that the east should relinquish its old views in favor of a single currency standard, he is the statesman to lead the movement as presidential candidate, although the use of the tariff for war upon England is a younger candidate’s prior invention. It is the only way remaining, apparently, to maintain in -this country the extreme protectionist policy, for which the silver votes in the west are necessary in the senate, as has now been demonstrated.

The immediate future may witness a good many remarkable political occurrences. The promoters of the New England bimetallic movement could not have a more sagacious and intrepid defender of their recently expressed faith than Hon. Thomas B. Reed. Will Mr. McKinley and Mr. Harrison publish their opinions of the international combination projected as a now way of enforcing free silver coinage and reciprocity at the same time?—Boston Traveller.