0050 CONGRESSIONAL RECORD-- . SENATE. OCTOBER 3,
By Mr. HENDERSON of I owa: A resolution for the appoint By Mr. SNODGRASS: P etition of Mary McGuire, adminis m ent of a special committee to investiga.te the sugar trust, and tratrix, of Hamilton, Tenn., pr
1893. OONGRESSION.AL REOORD--SENATE. 2051
BILLS INTRODUCED. dent had on the 2d instant approved and signed the act (S. 721) Mr. HARH.IS introduced a bill (S.1036) for the relief of R. R . to provide for clerical assistance in the health department of Robinson; which wa.s read twice by its title, and, with the ac the District of Columbia. companying paper, referred to the Committee on Finance. ENROLLED BILL SIGli(ED. He also introduced a bill (S. 1037) in relation to the separate A message from the House of Representatives, by Mr. T. 0. property of married women in the District of Columbia, and for TOWLES, its Chief Clerk, announced that the Speaker of the other purposes; -which was read twice by its title, and, with the House had signed the enrolled bill {H. R. 3706) to extend the accompanying papers, referred to the Committee an the District time for completing the work of the Eleventh Census, and for of Columbia. other purposes; and it was thereupon signed by the Vice-Presi Mr. CAFFERY introduced a bill (S.1038)for the relief of cer dent. tainemploy:s of the Uniterl Sktt e ~:; custom-house at New Orleans, PURCHASE OF SILVER BULLION. La.· which was read twice by its title, and, with the accompany ing papers, referred to the Committee on Claims. Mr. VOORHEES. I move that the Senate proceed to the con Mr. PLATT introduced a bill (S. 1039) to amend an act en sideration of House bill No. 1. titled "An act to regulat3 commerce," approved February 4, The motion was agreed to; and the Senate, as in Committee of 1887, in such manner as to secure the just and orderly conduct the Whole, resumed the consideration of the bill (H. R. 1 ) tore of the American railroad system; which was read twice by its peal a part of an act approved July 14, 1~90, entitled "An act titL, and referred to the Committee on Interstate Commerce. directing the purchase of silver bullion and the issue of Treasury Mr. DUBOIS introduced a bill (S. 10-!0) to aid the States of notes ihereon, and for other purposes," the pending question Californh, Oregon, Washington, Montana, Idaho, Nevada, Wyo being on the am3ndment proposed by Mr. PEFFER to the sub ming, Colora.do, and South Dakota to support schools of mines; stitute reported by the Committee on Finance. which was read twice by its title, and referred to the Committee Mr. WHITE of California. M~. President, I :tise to a ques on Public L·mds. tion of personal privilege. After the statements made in the Mr. GALLINGER introduced a bill (S. 10-U) for the relief of Chamber yesterday it is fair to say that I ca.refully examined the widow and children of Dr. Lemuel H. Draper; which was the Bankers' Magazine referred to by the Senator from Ohio read twice byits title, and referred to the Committee on Claims. lMr. 8HER111AN] and find nothing in it to wa:trant the alleged Mr. G,a.LLINGER. I introduce a joint resolution, and being extl
Mr. SHERMAN. I am very glad again to repeat the state sions of law, purchased silver bullion and coined ~b.e same at the rate ot more than ~.000,000 every month. By this process up to the present date 215,759 431 ment I made yesterday, that no one blames the Senator. from silver dollars have been coined. ' California for quoting a matter that had been frequently quoted A reasonable appreciation of a delegation of power to the General Govern befora. I am very sorry, indeed, to hear the making of the quo ment would limit its exercise, without express restrictive words, to the peo ple's needs and the requirements of the public welfare. tation attributed to Mr. Finley, whom I know personally. If Upon thistheory, theauthorityto '·coinmoney" given to Congress by the he was the first to make it it would be a very severe thing for Constitution, if it permits the purchase by the Government of bullion tor him to explain to his people at home, where he is very much re coinage in any event, does not justi!y such purchase and coinage to an ex tent beyond the amount needed tor a sufficient circulat.ingmedium. spected. I think he must probably have been deceived or mis The desire to utilize the silver product of the country should not lead to a led by it. lam very glad to notice another remarkable thing, misuse or the perversion of this power. that in the quotation made from Mr. Hooper by Mr. Beck, he The necessity tor such an addition to the silver currency of the nation as is compelled by the silver-coinage act, is negatived by the tact that unto the quoted Mr. Hooper correctly. present time only about fifty millions of the silver dollars so coined have Mr. WHITE of California. That is very true. actually found their way into circulation, leaving more than one hundred Mr. SHERMAN. And the words which were afterwards in and sixty-five millions in the possession of the Government, the custody of which has entailed a considerable expense tor the construction of vaults for terpolated, by whom we do not know, that Mr. Seyd was then its deposit. Against this latter amount there are outstanding silver certift here, are not in the first quotation of that paragraph from Mr. cates amounting to about $93,000,000. Every month two millidm or gold in the public Treasury are paid out for Hooper. two millions or more of silver dollars, to be added to the idle mass already Mr. WHITE of California. No, sir; they are not. accumulated. Mr. SHERMAN. That shows that the two statements which It continued long enough, this operation will result in the substitution of have led the American people honestly to believe that there was silver for all the gold the Government owns applicable to its general pur poses. It will not do to rely upon the customs receipts of the Government some corruption in the act of 1873 were forged since 1878, or to make good this drain of gold, because the silver thus coined having been about that time, when the Bland bill was pending in the House made legal tender tor all debts and dues, public and private, at times during of Representatives. I was not then a member of Congress, being the last six months 58 per cent ot the receipts for duties has been in silver or silver certificates, while the average within that period has been 20 per Secretary of the Treasury. Probably if I had been connected cent. The proportion of silver and its cerMfi cates received by the Govern with the passage of that act I would have had a chance to cor ment will probably increase as time goes on, for the reason that the nearer rect it. Mr.'Hooperin the meantime bad died. I believe I am the period approaches when it will be obliged to otter silver in payment of its obligations the greater inducement there will be to hoard gold against not in error. [To Mr. ALLISON.] What was the date of his depreciation in the value of silver. or for the purpose of speculating. death? This hoarding of gold has already begun. Mr. ALLISON. He died in February, 1875. When the time comes that gold has been withdrawn from circulation, then will be apparent the ditterence between the real value ot the silver dollar Mr. SHERMAN. He died, then, before the forg-ery occurred. and a dollar in gold, and the two coins will part company. Gold, still the Therefore the two persons who would probably be familiar with standard of value, and necessary in our dealings with other countries, will the truth were out of Congress, one absent on official duty and be at a premium over sil~er; banks which have substituted gold for the de posits of their customers may pay them with silver bought with such gold the other dead. Who first inserted these items I do not know. thus making a handsome profit; rich speculators will sell their hoarded gold Mr. WHITE of California. Will the Senator from Ohio per to their neighbors who need it to liquidate theit foreign debts, at a ruinous mit me to ask him a question for information simply? premium over silver, and the laboring men and women of the la.nd, most de fenseless of all, will find that the dollar received tor the wage of their toil Mr. SHERMAN. CertJ.inly. has sadly: shrunk in its purchasing power. It may be said that the latter Mr. WHlT.E of California. Can the Senator state when the result w11l be but temporary, and that ultimately the price of labor will be · error as to the alleged citation from the Bankers' Magazine was adjusted to the change; but even tl this takes place the wage-worker can not possibly ~ain, but must inevitably lose, since the price he is compelled to first detected? pay for h1s living will not only be measured in a. coin heavily depreciated, Mr. SHERMAN. I do not know; but as a matter of course and fluctuatin~ and uncertain in its value, but this uncertainty in the value when Mr. Finley used it at the date named the forgery had been of the purchasmg medium will be made the pretext tor an advance in prices beyond that justified by actual depreciation. committed. That is the first use I know of it; and perhaps he may The words uttered in 1834 by Daniel Webster in the Senate of the United be able to account for it. I know him very well, and dislike to ~tat-es al:'e true to·da.y: "The very man of all others who has tho deepest say anything to his ~iscredit. I can hardly attribute to him the mterest 1n a sound currency, and who sutlers most by mischievous legisla tion in money matters, is the man who earns his bread by his daily toil." forgery of such a paper or the misquotation of it. The most distinguished advocate of bimetallism, discussing our silver Mr. DOLPH. Mr. President, when the Senate adjourned last coinage, has lately written: evening I had been quoting from the reports of Mr. Manning, ''No American citizen's hand has yet felt the sensa. tion of cheapness, either in receiving or expending the silver-act dollars." · Secretary of the Treasury under the previous Administration of And those who live by labor or legitimate trade never will feel that sensa President Cleveland, for the purpose of showing the policy oE tion of cheapness. However plenty ~liver dollars may become, they will the Administration in regard to the purchase and coinage of not be distributed as gifts among the people; and it the laboring man should receive four depreciated dollars where he now receives but two, he will pay silver. I now propose to quote from higher authority, and I do in the depreciated C'Oin more than double the price he now pays tor all the this for the purpose of calling the attention of our friends on necessaries and comforts of life. the other side of the Chamber, and especially of those who have Those who do not fear any disastrous consequences arising from the con tinued compulsory coinage of silver as now dh·ected by law, and who suppose been advocating the free coinage of silve1:, to the fact that they that the addition to the currenc1 of the country, intended as its result, will are not in accord with their party upon this question, that they be a public benefit, are reminded that history demonstrates that the point are not in accord with the Administration, and not in harmony is easily reached in the attempt to float at the same time two sorts of money of dill'erent excellence, when the better will cease to be in general circula with the great leader and idol of the Democratic party. tion. The hoarding of gold, which has already taken place, indicates that The Democrats at their national convention in Chicago did not we shall not escape the usual experience in such cases. So, tl this silver nominate a new and untried man. They nominated a man who coinage be continued, we may reasonably expect that gold and its equivalent will abandon the field of circulation to silver alone. This, of course, must had been President of the United States for four years, and in produce a severe contraction of our circulating medium, instead of a-dding nominating him they indorsedhis Administration, they indorsed to it. his policy, and indorsed his position upon the silver question. It will not be disputed that any attempt on the part of the Government to cause the circulation of silver dollars worth 80 cents, side by side with gold The extracts from the messages of President Cleveland, which dollars worth 100 cents, even within the limit that legislation does not run I shall read or have read directly, should be read in connection counter to the laws of trade, to be successful must be seconded by the confi with the last national Democratic platform as explanatory of it. dence ol the people that both coins will tetain the same purchasing power and be interchangeable at will. A special ettort has been made by the Secre They just as certainly show what the position of the Democratic tary of the Treasury to increase the amount of our silver coin in circulation; party in the United States is to-day upon the silver question as but the fact that a large share of the limited amount thus put out has soon if they had been incorporated in the platform word for word. retm'lled to the public Treasury in payment of duties, leads to the belief that the people do not now desire to keep it in hand; and this. with the The fact that Mr. Cleveland was nominated with his well evident disposition to hoard gold, gives rise to the suspicion that there known record en this question shows that his position on the sil already exists a lack of confidence among the people touching our financial ver question was indorsed by the Democratic convention, and the processes. There is certainly not enough silver now in circulation to cause unea-siness; and the whole amount coined and now on hand might, after a. fact that he was triumphantly elected on such a platform and with timE", be absorbed by the people without apprehension; but it is the ceaseless such a record, shows that the people of the United States ha-ve stream that threatens to overflow the land which causes tear and uncer indorsed both Mr. Cleveland and his position concerning silver. tainty. I ask to have the Secretary read the parts of President Cleve What has been thus far submitted upon this subject relates almost en tirely to considerations of a. home nature, unconnected with the bearing land's message of December, 1885, I have indicated on pages which the policies of other nations have upon the question. But it is per 32, 33, and a±, omitting- page 35, and reading again what is marked fectly apparent that aline of action in regard to our currency can not wisely be settled upon or persisted in without considering the attitude on the sub on page 36 of the boJic I s end to the desk, it being better than ject of other countries with whom we maintain intercourse through com anything I can say, not only as an argument against the free merce, trade, and travel. .An acknowledgment or this tact is found in the coinage of silver, but against the purchase of silver bullion and act by virtue of which our silver is compulsorily coined. It provides that "the President shall invite th~ governments of the countries composing the the coinage of silver dollars by the Government. Latin Union, so called. and of such other European nations as he may deem The VICE-PRESIDENT. The Secretary will read as indi advisable, to join the United States in a conference to adopt a common ratio cated. between gold and silver tor the purpose or establishing internationally the The Secretary read as follows: use of bimetallic money and securing fixity of relative value between these metals." Nothing more important than the present condition of our currency a.nd This conference absolutely failed. and a. similar fate has awaited all sub coinage can claim your attention. sequent efforts in the same direction. .And still we continue our coinage of Since February, 1878, the Government has, under the compulsory provi- silver at a. ratio different from that of any other nation. The most vital par~ 1893. CONGRESSIONAL RECORD-SENATE. 2053 of the silver-coinage act remains inoperative and unexecut~d, and without age of both silver and gold. He believes that is only practicable an ally or a friend we battle upon the silver field in an illogical and losing with an international agreement, under which the mints of the contest.• • • • * • • great commercial countries of the world shall be open to the We have now on hand all the silver dollars necessarytosupplythepresent free coinage of silver at an agreed ratio. needs of the people and to satisfy those who from sentiment wish toseet~em Mr. STEWART. Will the Senator allow me to put in the 1u circulation; and if their coinage is suspended, they can be rea.dily obtamed President's letter of acceptance in that connection, so that we by all who desire them. It the need of more is at any time apparent, their coilla~e may be renewed. can have the whole matter? That disaster has not already overtaken WI furnishes no proof that danger Mr. DOLPH. I have no objection. I will yield for that pur does not wait upon a continuation of the present silver coinage. We h ave been saved by the most careful management and unusual e:Jq>edients, by a pose. combination of fortunate conditions, and by a. confident expectation that the Mr. STEWART. Mr. Cleveland in his letter of acceptance course of the Government in regard to silver coinage would be speedily says: changed by the action of Congress. The people are entitled to sound and honest money, abundantly sumcient Prosperity hesitates upon our threshold because of the dangers and un in volume to supply their business needs. But whatever may be the form certainties surrounding thi.s question. Capital timidly shr~ks from trade, of the people's currency, national or State-whether gold, silver, or paper and investors are unwilling to take the chanc
Up to within a. short period the coin b,a.d been struc;k by primitive pro calamity, compared with which the loss of the entire fleet and the defeat of cesses being shaped ana s tamped by the ha mmer. T~piece-s, beLngrudely the army would· ha.ve been blessings. m.a.de 'could be pa;·ed down wiLh but little danger ot the mutilation attract But ~he genius of Montague. the young Secreta.ry of the Treasury, was ing attent-ion. Coin-clipping had grown to be a, very common kind of fraud. equal to the crisis. With heroio firllllless and u,npu·alleled eloquence he At fir st disregarded, so great at last d,id the evil become that "in 1695 it could made the tight for honest m oney and won. Aft.er a stormy debate, "which hardly be said that the cotmtlry possessed for practical purpost>s any meas reso~nd ed through all Christendom." Parliament at last. by an overwhelm ure of value of commodities." A half crown Ol"·shilling of.fuU weight was ing vote~ resolved that "the standard of money of the Kingdom should not almost a. curiosity. Tb,e bad e!lects resulting from this state of the currency be altered in fineness, weight, or den omination." - can be r eadily imagined. All pecuniary transactions were thrown into con The defeat of the agitation this time was complete. The country again fusion. Fm· lack of some tu:ed standard of value men could not safely con breathed freely. Une stroke of statesmanship had turned the shadow of tracli without some s tipulation, not always convenient to make, as to the death into morning. "Within four days," says Macaulay. "there was a per quality of coin in which p :~. yment s were to be. made. The officers of the ex ceptible improvement in trade." The tide turned. "From the moment the chequer h aving as an experiment weighed £57,000 in hammered money. re Commons declared their fixed determination to maintain tho standard of the cently paid in. found the weight Rcarceiy one-half what it should have bt>.en. currency, the milled money began to come forth from a thousand strong The great instrument o:l: exchange being deranged. "all tlrade, all industry boxes and private drawers." Great qua,ntities of gold were turned loose was smitten as. with a palay." "It may well be doubted," says Macaulay, from secret corners and from behind t he panels of wainscots. "wheth er all the misery which had been inflicted on the English nation in a "'rhe dead corpse of public credit arose and stood upon its feet." quarter of a. century of bad kings, bad ministers, bad parliaments, and bad Business confidence- recovered from the most tremendous shock it had judges was equal to the misery caused in a single year by bad. crowns and ever sustained, and " the deep and solid foundation had been laid on which bad shillings.'' was to rise the most gigantic fabr ic or commercial prosperity tha.t the world ONE REMEDY. has ever seen." And this happy transformation was the result of est·ablish ing in the policy or the Government one simple proposition: The government had sought to provide a remedy by improved methods "That the wurds • pounds' and ' shillings • should haveaflxedsignification ot c oina~ e. 'l"'he pieces were no longer struck by hand but were turned out that every man should know \Yhat his contracts meant and w.hat his prop by machinery. Their shape being exactly cir cular and the edges inscribed, erty was worth." clipping was not easy nor was counterfeiting as p:ra.ct.ica.ble. But the remedy did not work. The old hammered pieces and the new ·Mr. DOLPH. J evons, in Money and the Mechanism of Ex milled coins being current together and a.li.ke receivable for public and con changes, says: sequently for private du.es, it was found that the perfect coins disappeared Though the public generally do not disr.riminll!te between coins and coins, !rom circulation. In other words, bad and good money being on the same provided there is an apparent similarity. a small class of money changers, f-ooting, tb.e good money was driven out, so while the government mint 1~ bullion dealers. bankers.or goldsmiths m ake it their business to be.acq ua.inted sued the new m oney by tb,e wagon load it did not reappear in the '• till of the with su.ch differences. and know how to derive a protit from them. '.l,'hese. grocer or the wallet of the f~rmer." are the people who frequently uncoin mon,ey, either by melt1ng h or by ex ·"The politicians of the day marveled exeeedlngly that everybody should be porting it to countries where it is sooner or later melted. Some coins are so perverse as to use ligb.ll money in pl!ef renee to good money. In other sunk in the sea and lost, and some are carrled abroad by emigrants and trav 12 10 words, they m arveled that nobody chose to pay ounces of silver when elers who do not look closely to the metallic valu~ of the m oney. But by V(ould serve t he turn." far the greatest part of the standard coina,ge.is removed from circulation by Anot heP.!'emedy was demanded. The obvious one was, of course, to call people who know that they sha:.l gain by choosing for thi.s purpose the new 1n too old m<>ne for recoinage and to declare it. to be I,\Olonger legal, teruler heavy coins most recently issued from the mint. Hence arises the practice a.tter a cert.aiu date, a.nJ this measure. was at las t. decided upon. But there extensively carried on in the prt sent day 1n Engla,nd. of picking a.nd cl).iling, were inconveniences and dilficulties attending this course. rn the first place or, as another technkal expression is, gar bling the coinage. devoting the the collection of tbe c urrency for too purpose of recoinage would produ ce good coins to the melting pot, and passing the old worn coins into cirCl;llation tor a time adeu ciency in the amount in circulation. Then there would be on every suitable oppor &unlty. the loss in value between the old coin and the new. The first trouble was Fwm these consid~tion.s we readily learn th~ tru;th and importance of 11£ provided agai,nst to some extent. But it was in a.rrang]ng the second that general law or principle concerning t.he circulation of money,_which Mr. the politicaJ mounteba nk got in his work. MacLeod has very appr opriately n amed the Law .or '.l,'heorem or Gresham, On the one hand 1~ looked like a hardship- that those who happened a.t the ti:rne to hold the mutilated coin should lose the large difrerence between after Sir Thomas Gresham , who-clearly pel'Cetvfld its truth three centuries the1J: real weight and their stamped value. On the other hand it would ago. This law, briefly expressed. is that bad moneydlives out good money,_ amount to a large tax on the public for the government to mua good the but that good money can not drive out bad money. dil!e.rence to the holder. Continuing, he says: It was at tb.is point that the specious proposition wa.,smade th.at the stand ard of the coin should be lowered, that the new shilling should be worth only The most extreme instance which has ever occurred was in the case ofo ntnepence or ninepence half-penny. This measure was urged by a large the Ja.panese currency. At the time or the treaty or 1858 between Great party as a ready solution of the matter. Britain, the United States, and Japan, which partially opened up the last P a rliament, it iB true. passed a recoinage.act which provided for recoining count1·y to European traders. a very curious system of currency existed in Japan. The mol:lt valuab!e Japanese coin was the koban~, consisting o~ a the money of the realm according to tb.e old standard. But this did not stop thin oval disc of gold about 2 inches long, a.nd tt inches Wide, weighing 200. the agitation of the measure to lower- the s tandard. This was of course grains, and ornamented in a veryprimi:tive m anner. It was passing current popUlar with thousands, who were willing to pay a debt of· £100 with money in the towns in Japan fo · four silver itzebus, but was worth ln E nglish worth only £00. And thousands of others seemed dull enoul$h to suppose money about ISs. 5a., whereas the silver itzebus was equal only to about ts.. 4d. that the Government, by calling ninepence a shilling, coUld m.a.l;te them Thus the Japanese were estimating their gold money at only about one-third equal to twelvepence, forget ting that government can only fix th~&tandard of its value as estimated according to the relative values of the metals in other of money, but can n,otgive it value. Just as.~overnment can fix the number parts of the world. The earliest European traders enjoyed a. rare opportu-, of cubi~ inches in a. quart, so that men in. buymg an,d selling by the quart ca.n know what it will m ean, but it can not mak,e l,ess than that worth. as much nity for making profit. By buying up Lhe kobangs at the native rating they as so many cubic inches. trebled their m onayuntil t,b.e natives, perceiving what was being done, with· England was threatened by this proposition with an act otwholesa!e, con drew from circulation the remainder of the gold. fl.scation forth~ benefit of tlle government and tl;Le debtor class. Mr. President, I think that is enough upon this point. If any The very agitation of such a measure, ba,cked as it was by a large party~ was a. severe shock to credit. one supposes that it would be po.ssible with free coinage of silver The advocates of the .neasure seized upon the. temporary confusion nec at the ratio of 16 to 1, while the commercial ratio is 2.7 or 28tol, essarily resulting from the calling in of the currency for re(.:oina.ge a-; an ex to maintain in concurrent circulation gold and silver coin, I cuse for urging its adoption. They declared tha. t the depression was entirely caused by the ta;ilure of Parlialllilnt to adopt their proposition. and as anew should like to have him show me an example in all history where Par liament was. to assembLe strenuous efforts were mad-e to elec~ members that has been done. Of course, as I have said on other occasions, committed to tbe policy of lowering th-e stand rd. if the q nited States could buy all the silver bullion in the world It became the great issue in the elections. The people were hara.ngued at every place of public resort, "from the chocolate b.ause 1-n St. James street and adopt some plan for the redemption in gold of silver coin to thasande!J, kite ,en of the a~eho use on. t he village ~reen." coined at the r atio of 16 to 1, then it might be possible for the In verse and p:rese th~ sufl'e.ring multitude were incited. to -rise in rebellion, United States to double the value of all the silvel;' bullion and and.to tear in p ieces the m em.bers of Parlian;J.en,t who had stood firm for hon est money. Tumults occurred in many places. The very depres~on of silver coin in t.he world, but that to my IQ.ind is preposterous. which these agitators complained wa.s increased tenrold by the ailllQunce The Senator from California [M.r . WHI'l'Ej the other day stated ment of their proposed method of relieving it. EspeciallY did t.his result · and Peiterated that we could not expect foreign countries to tollow when the genera.! voice of the nation seemed for a time to favor the measure. and t!here was a. prospect, a.t least. of its being adopted. The old agree to any arrangement by which their mints were to be coin since the recoinage act had been hul'ried. to the. exchequ.er in large opened to the fr~ coin :.~ ge of silver at a. given ratio unless the quantities, and. being put under the ban. ha.4. a.J..Inost become. wm;thless as a United States led. the way, meaning~as I understood him, unless medium of exchange. The new milled coins and the gold did not come into circulatjon to take its place. For, wi th the-prospect of the cheaper money, the United States should adopt free coinage of silver -at the no one cared to pay out gold and standard silver. 'li'his was hoarded. "No ratio of 16 to 1. Can it be po3Sible that my friend from Cali person who thought it probable that at a da..Y not far distant he would be fornia has lived so long in the world a,nd has not. learned that able to pay a del;lt of a pound with three crown pieces instead of four was willing to part with a crown piece until that day arrived." Besid~s. no per na.tions, like individuals, in mat.ters of business are not gov son cared to lend money or sell on credit, with the prospect of having tore erned by benevolence or influenced by good example, but that ceive payment in money of less intt•inslc value. 'rhus there was not only they are governed by the la w of s :lf-inter.-est? There is not a almost a totaJ absence of money in circulation. but all trade and enterprise were at a standstill. The cry of distress went up from every c0rner of the nation in the world attempting to maintain in circl..llation both kingdom. - • gold and silver or havin!; the gold sta.nd.ard that would notre Even opulent men could not obtain ready money to pay the weekly bills joice to see the United States adopt free coinage of silver at the or the baker an4 the. butcher. The Bank of England could pay only 15 per cent on its notes. ratio of lti. to 1 and join China and Japan and Mexico, and let But this crueLagony. which extended over a number of months and pro our gold go to the gold-using countries. d uced the crash. of many fortunes, was to suddenly give way to a period of Foreign investors might t ::tke alarm at the prospect of free unbroken prosperity. P arliament met. All eyes were turned to it. Would the demands of the c&il\ lge of silver in the United States and some of them with political motmtebanks prevail? Would the. government m:~oke itself the draw their investments: but the English Gove ~nment know!;~ laughing stock of the busil:\ess world by trying to enrich the coqntry by call that our obligatioJJ.s held in Great Britain, payable by their ing 7 pence l2. pence? Would it continue the depression of commerce by 1a.illng to provide a curL"ency whlch would be received at its stamped value, terms in gold coi.n, must be paid in gold. n ot only 1n London, butinAmsterda.m or Calcutta?· Would it commit the Whe~ t he Senator from North Dakota [Mr. H ANSBROUG;H] blunder of driving out good money by i$Suing n;wney having only an arti was discussing the pending measure the other day, I asked hi.B:J. ficial value? Would it forever ruin p.u,blic credit by~ wholesale confiscation of debts? if there was any silver in the world, except 1h tt stored. i n o.ur Never did m ore hang in t he balance. A IU.istak e. here wou.ld. ha.-ve been a Qwnv~~tults : a.Jld whic.h i.s. rep1·esented in circulation by Treasury 2056 CONGRESSIONAL RECORD-SENATE. OCTOBER 3,
notes, which was not doing duty as money or being used in the Mr. DOLPH. Certai,nly; it is of equal value. Now, I wish to arts? The Senator did not seem willing or able to answer call attention to another thing in this connection. I have been promptly; but the Senator from Nevada (Mr. STEWART] an diverted a little from the line of my argument. We have now in sweL·ed, and admitted that there is to-day no silver in the ~orld circulation over $600,000,000 of silver money. except the silver we have stored in our vaults that is not doing Mr. TELLER. Oh, no. duty as money. Mr. DOLPH. Well, if we have it not all in circulation we If the nations of the earth now having the silver standard have the certificat-es representing it in circulation, which is should stop using silver as money, the European nations could equivalent. It may not be all in circulation. I think it is sub not maintain the gold shndard for a week. The more demand stantially all in circulation except our fractional coin. there is for silver, the more nations that have free coinage of Mr. TELLER. If the Senator will allow, I will call his atten silver, the better it is for those nations, the more gold they will tion tothefactthatthe$630.000,000includesall the bullion bought have. All t he gold and all the silver in the world are doing under the Sherman act. That can not be said to be in circula duty as mo:g.ey. The trouble now is that gold a.nd silver are di tion. vided between the nations. Some nations use gold and use sil Mr. DOLPH. Whatever the amount may be, my argument ver in concurrent circulation by redeeming silver in gold, and is the same. J1 you go to free coinage-and the effect of free other nations use silver only. Let the United States stop the coinage is to make the money value of the silver dollar worth uurchase of silvet• bullion and throw the silver bullion that is but 56 cents, that is, its intrinsic value-you destroy in theh ~nds now being purchased monthly upon the markets of the world and of the people of the United Sta.tes 44 per cent of all thH silver thus decrease the price of silver bullion, and it will force upon money in circulation, because the only provision made by the the attention of the people of countries maintaining both gold Government for the redemption of the silver dollar is its receipt and silver in circulation and which are upon the gold basis the for taxes, and just the moment the silver dollar parts company necessity of at once facing the question of the concurrent circu with the gold dollar just .that moment all public dues will be lation of gold and silver and a larger use of silver bullion, and paid in silver; and the redemption of the silver dollar by its re hasten the day when we can secure an international agreement. ceipt as the equivalent of gold which now goes on by that Mr. STEWART. May I ask a question of the Senator from process would cease. As I say, we would destroy 44 per cent of the Oregon? value of our silver currency in the hands of the holders and Mr. DOLPH. Certainly. destroy it at a blow. Mr. STEWART. What will you do for money in the mean My friend from Idaho [Mr. SHOUPl the other day undertook time? to show how much the Government had made by the purchase of Mr. DOLPH. Oh, Mr. President, the Senator from Nebraska silver bullion and by treating the difference between the pur [Mr. ALLEN] the other day reiterated a statement which had chase price of silver bulli"on and the face of the silver dollars M been made on this floor over and over again, that we were about profit he made out to his own satisfaction that the Govern· to destroy one-half of the money of the country. ment had made a large amount. The Senator never stopped t notes are redeemed on presentation at the Treasury in gold coin case is that each meta.lflnds its true level, according to its intrinsic ut111ty, in the general system of money operations. at their face, and therefore they circulate everywhere at their Having decided to a.dopt the market ratio he found an alternative between faoe. (1) the market ratio of the commercial world and (2) the market ratio solely Mr. TELLER. How with silver? Willnot thatdothesame? ot the United Sta.tes. He frankly admitted his inability to discover the Mr. DOLPH. The silver coin is received for internal taxes former. and for duties a>9 the equivalent of gold. We collect of those That is, the market ratio of the commercial world. To ascertain the first with precision would require better materials than taxes over $500,000,000 annually; and that is a qualified redemp are posaessed, or than could be obtained without an inconvenient delay. tion of the silver dollar by the Government in gold coin. I un Here he committed a. grave financia.l error. No system or bimetallism has dertake to say that if you should repeal the provision for their been able to exist for any length ot time in a. country tradinK with foreign states 1! the mint ratio was not in agreement with the market ratio ot the receipt for public dues, repeal the provision for their redemp chief commercial nations. Hamilton certainly did not then foresee this dtl tion, they would depreciate within twenty-fours until they would ficulty. On a. matter ot monetary -principles he wa.s wholly wrong. Ile be worth no more as money than they are intrinsically worth as should have ma.de the inquiry in regard to the relative values current in "the commercial world" with great ca.re ~or 1! he had no time to conduct bullion. such an investigation it was certain that 1ms bimet&llio system would soon Besides, as I have said, in addition to that there is an impres be disturbed. But, as we shall soon learn he was led to that which was sion (and I hope it is a correct impression) among the people of right in fact, although on a matter ot principles he was wholly in error. this country that the Government proposes, if that provision is Then he goes on to speak of the weight of gold and silver not sufficient, to adopt other provisions for the redemption of coins. its silver coin in gold, so that no holder shall lose on account of It seemed, therefore, to be definitely understood that 24! grains ot fine its depreciation. gold stood as the recognized equivalent ot a silver dollar; and with this The other day when the Senator from Delaware [Mr. HIG starting point Hamilton, havinll already selected the ratio ot 1:15 between the coins, would be led a priori to determine that the s1lver dollar ought to GINS] was addressing the Senate his attention was called by the contain 15 x 24! grains ot fine silver, or 371i grains. And, in all probability Senator from Colorado [Mr. TELLER] to the fact that gold did this was the process by which he arrived a.t his conclusion. He announced not begin to perceptibly leave this country until1810. that the later issues of dollars from the Spanish mint ha.d contained 374. grains ot 11ne silver, and the latest illtmes only M8 grains, which implied a Mr. TELLER. Eighteen hundred and twenty-one. current market ratio in the United States (U these dollars exchanged tor Mr. DOLPH. I interrupted the Senator from Delaware to 24i grain.~' ot fine gold) oUrom 1;15.11 to 1:14.78, or a. mean ratio ot about 1:15. say that that would be an argument, in my judR"ment, to show Ofth18 ratio Hamilton says it is so:rnewha.t more tha.n the actual or marke\ proportion, which is not quite 1:15. But, throughout his inquiry, no one that during the. period from the establishment of the mint to can doubt but that he was honestly seeking for a ratio as near as possible 1810, the ratio between gold ·and silver was nearer 15 to 1 than to that existing in the markets of the United States. He certainly can not it was 15t to 1. The Senator from Colorado promptly inter be charged with an intention of underrating gold, rupted me by saying I was contradicted by history, or I was mis Concerning the ratio of the commercial value of gold and sil taken. ver this author says: Mr. TELLER. If the Senator desires tO quote me I wish he The relative values between gold and silver, computed bY Dr. Soetbeer would quote me correctly. I have never said a word about 1810. trom absolutely credible sourc6S in the omcial quotations twice a week of the prices ot silver a.t Hamburg, are the most reliable. About 1780, Hamburg I was talking about 1821. was a much more important silver market than was London, although 1li Mr. DOLPH. Very well; I stand corrected. I will under later years the English city has easily taken the lead of all other markets. take to show that gold did begin to leave this country in 1810, Another table ot ratios was compiled in 1829 by John White, cashier of the and I will undertake to prove that the suggestion I made to the United States Bank, covering the years from 1760 to 1829. Senator from Delaware in regard to the commercial ratio be Not wishing to read at length from this wo.rk, I will print in tween gold and ail ver was correct. my remarks two tables showing the commercial ratio between. Now, it is quite important which is right in regard to this gold and silver from 1780 to 1833. matter, the Senator from Colorado or myself, but it may be im Mr. TELLER. Whose tables? portant to understand how slight a difference between the in Mr. DOLPH. They are from Soetbeer a.nd White. trinsic value of gold and silver and the legal ratio for coinage Mr. TELLER. Covering what point of time? is sufficient to cause one to drive the other out of circulation, Mr. DOLPH. They begin with 1780 and come down to 1833. and how soon the Gresham law will begin its operation after Mr. TELLER. At London, Paris, or Hamburg? this difference t::Lkes place. Mr. DOLPH. One at Hamburg and the other in the United I hold in my hand -the History of Bimetallism in the United States, at least Mr. White was a citizen of the United States, States by Laughlin, and I shall read brief extracts from it. He and a prominent financier of the country. says, on page 13: The establishment ot a. double sta.nda.rd in the United States is due to Year. Soetbeer. White. Year. Soetbeer. White. Alexander Hamilton. His Report on the Establishment ot a Mint remains the best source of information a.s to the reasons tor adopting the sys 1780 ______tem which has continued, with a slight break, !rom that day to this. As was 1781. ______14.72:1 14.30:1 1807------.• ---- 15.43:1 14.38:1 to be expected, the arguments ur~ed at the present time in ta.vor ot bimet 14.78:1 13.70:1 1808 ____ ••••.• ---- 16.08:1 14.66:1 allism had not occurred to Hamilton. He did not enter into a general dis 1782.------··------14.42: 1 13.42: 1 1810.180!} ---- ______---· --···- 15.96: 1 16.00:1 cuHsion of the effect-s of a. double standard, such a.s we might expect from a. 1783_------.••• ···- H . .S: 1 13.66: 1 15.77: 1 16.00:1 modern bimetallist. In speaking of gold and silver. he was emphatic in 1784 ______1785 _____ 14.70: 1 14.77:1 1812.1811 ••••••••••••.• ______15.53:1 15.58:1 stating his belief that U we must adopt one metal alone that metal should 14.92:1 15.07: 1 16.11 : 1 14.09:1 be gold, and not silver (at variance, as we have seen, with the views of Rob 1786 ______: :::::::: 14.116:1 14.76:1 1818 ______16.25:1 14.04:1 ert Morris, in1782); because, said Hamilton, gold was the mstalleastliableto 1787- ....- •.••.. ···- 14.92:1 14.70:1 1814 ____ ----.• ···- 15.04: 1 15.71:1 variation. In fact, we find in his report thus early in our history a.n ex 1788 ______14.65: 1 14.58: 1 1815 __ ----•••• ---- 15.26:1 16.15: 1 pression ot that preference tor gold over silver, whenever the former can be 1789_ .• ----••.••... 14.75:1 14.76: 1 1816 ____ ------15.28: 1 13.52:1 1790 ______---- had, which ha.s since then played no little part among the influences acting 1791. ______15.04:1 14.88: 1 1817 --·-·· •..••••• 15.11: 1 15.44: 1 on the relative values of the two metals. 15.05: 1 14.82:1 1818 ____ -········· 15.35: 1 15.28: 1 Quoting from Hamilton: 1792.------15.17 : 1 14.30: 1 18201819 .•.••.______···----- 15.33: 1 15.68:1 17941793 ...______------15.00: 1 14.88:1 15.62: 1 15.57: 1 As long as gold, either trom its intrinsic superiority as a. metal, from its 15.37:1 15.18: 1 1821._ ------15.95: 1 15.84:1 rarity, or trom the prejudices ot mankind, retains so considerable a. preemi 1795_ ------15.55: 1 14.64:1 1822 ____ ---··· ---- 15. so: 1 15.77:1 nence in value over silver as it has hitherto had, a natural consequenc-e of this 1796 ..••.••.••• ---- 15.65:1 14.64: 1 1823._ ···------15.84: 1 15.77:1 seeJil8 to be that its condition will be more stationary. 'l'he revolutions, 1797------15.41: 1 15. at: 1 1824 ______··-· ---- 15.82: 1 15.05:1 therefore, which may take pla-ce in the comparative value of gold and silver 1798 ______...•. --- 11>. 59: 1 15.31 : 1 1825 __ ------15. 'iO: 1 15.55:1 will b_e changes in the state of the latter rather than in that ot the tol'lll.er. 1799--- •••• ------15.74:1 14.14:1 18261827 ______------15.76: 1 15.05:1 1800_ ------15.68: 1 14.68: 1 15.74: 1 15.63:1 Laughlin says: 18021SOL ______----•... 15.46: 1 14.33:1 1828 __ ------15.78: 1 15.63: 1 This prophecy ot Hamilton's wa.s fulfilled to--the letter within a tew years 15.26: 1 15.09: 1 1829_._ __ -----.---- 15.78: 1 15.81 : 1 a.tter tho6l words were uttered. 1803_ ------15.41: 1 14.33:1 1830_- ----···----- 15.82: 1 1804 ______15.41:1 14.54:1 • • • • • ~ * 1805 ______183L. --·· ------15.72: 1 15.79: 1 15.00: 1 1832 ______·-·--- 15.73 : 1 It would not do, says Hamilton, to adopt a. single silver standard, for that 1806 ______------15.52: 1 14.12: 1 1833 ______------15.93: 1 would act "to abridge the quantity of the circulating medium." !twas hoped to utilize the existing quantity of silver, and yet keep the gold also. Although he preferred a single standard or gold, he must be content to take These tables show that I was subst!tntially correct in stating what he could get; and silver was most easily secured tor the new currency. There is, he adds, an extraordinary supply of silver in the West Indies, and that it was the decrease of the price of silver bullion that cauSed this will render it easier tor the United States to obtain a. supply of that the exportation of gold to commence in 1810. I desire to read metal. what this author says about the time when gold began to be ex- Skipping and reading at another place: ported. • Having, for these reasons, tully decided to adopt a double standard, the Mr. WOLCOTT. What book is the Senator reading from? Secretary was obliged to face the chief ditll.culty in the problem-the selec Mr. DOLPH. I am reading from the History of Bimetallism tion of a legal ratio between gold and silver. Here was the rock on which as we shall see hereafter, his system was inevitably bound to go to pieces. ' in the United States, by Laughlin. ! ,will state that some years In selecting a. ratio between gold and silver in our coinage there 1s not a ago I verified many of these -quotations and suggestions and reasonable doubt but that, in spite of later changes, Hamilton fully intended found them to be correct. I believe the author to be generally to keep as closely as possible to the market ratio in t"he United States. There can hardly be a. better rule in any country for the legal than the admitted to be correct. market proportion, if this can be supposed to have been produced by the free Mr. McPHERSON. May I ask the Senator from Oreuon a a.nd steady course o: commercial principles. The presumption in such queshlon? o 2058 CONGRESSIONAL RECORD-SENATE. Mr. DOLPH. Certainly. Mr. TELLER. The Senator asserts agaln, as he did the other Mr. McPHERSON. What possible influence oan be exerted day, that the. relation between gold and silver is one of commerce to-day by the principle the Sen<:~.tor is quoting? I underst>md and not of law. I said then that when I had an opportunity I him to say th tat th.:t.t time the- mints of the world were ta.king should show that h_e is in error. I have never had that oppor the silver of the world and establishing a price. The mint price tunity yet.. I want to call his attention to the fact, a-s he must was the world's price of silver. To-day th~re is n.o mint price. in his reading have learned, that Sp·U.n at one time added to The mints of the world are closed to silver, and even the mints gold over a.nd .above the commercial relation that existed at that of the Unit-ed StJ.tes are closed to silver in the sense that they time one-fifteenth, and immediately the commercial relation as ca.n.m1.keany market for silver. Therefore, in w:h t respect does similated to the legal relation. I a-ssert that that is the univer the illustration the Senator is using explain the present situa- sal rulethrot\ghout the world, and thctt it is not, as the Senator - ti~ . statesr the commercial ratio. Mr. DOLPH. I am endea..-oring to show that free coinage of Mr. DOLPH. Mr. President, I can not stop to inquire as to silver at the 1•atio of 16 to 1 is impracticable in this country; th;1t whether the Senator is correct in his statement as to a fact of the operation of the Gresham law would drive go:d out of circu history. I assert the general proposition which I state is true. lation and substitute silver for it. I was discussing the effect of My colleague-the other day interrupted the Sena.torfrom Florida free coina.ge at the ratio of 15 to 1. That wa.s the purpose for [Mr. PAsco] to know if he proposed that we sho~ld have the free which I was quoting the t1.bles. coinage of silver at a ratio of ~7 or 28 to 1, and durinf;r his re Mr. McPHERSON. Would I interfere with the Senator if I ma,rks said that. in his judgment, it would be unconstitutional should make one observation? for the Government to undert •ke to fix the v tlue of the metals. Mr. DOLPH. I yield to the Sen tor from New .Tersey. l\~r<. President, we do not need any prohibition of the Consti Mr. McPHERSON. Theoper-c~.tion of the Gresham lt~Jwbegan tutiOn to prevent Congress from fixing the value of the met:.tls. in our co ~mtr:y in 1834. It bega.n even prior to that time. The value oi the precious metals is fixed like the value of every Mr. DOLPH. It bega.n in ldlO, as.I waa just about to show. other product of human industry; it is fixed by the universal Mr. McPHERSON. I will say 1810. No one argues th tthere law of supply and demand. It would be idle tos ppose th ttleg was more thm a per cent difference between the market value islation CJ.D. fix their value. I admit that Congress might pro of silver and the market·value of gold from 1810, the time of vide new uses for gold or silver, as Congress did provide for the which the Senator speaks, up iO 18:3. It W d S found necessary purchase of 4,500,000 ounces of silver to be stored away in the even then, to keep both metals-in circulation, that there should vaults of the Treasury. That no doubt helped to susta.in the be arevbion of the coins.ge law. If a simple variation of 3 per price of silver. Congress might grant a bounty to silver-miners cent during the pe1·iod of time of which I speak first drove gold to induce the production of silv-er, and so might a:Uect its price. and then silver alternately out of this country, how much more Congress might provide by law for a larger use of silver as certainly would a variation to-day of nearly 70 per ce.nt drive money, and so affect is price indirectly, as it might affect the gold out of the countey? priee of any other product of industry in a like m :1nner. But it Mr. DOLPH. The Sena,tor and I do not disn.greeas to the irn is idle to talk about legislating v <:~. lue. practicabilityof free coina~e of silver, at least as to the imprac I do not sympathize with the idea which seems to be abro:1 d in tic:tbility of securing in this countrv the conourrent circulation the land that the sbmp of the Government creates value; that of gold and silver under the free coinage of silver at lti to l. you C<.tll stamp leatber, or tin, or copper, or any metal with Mr . .MITCHELL of Oregon. Will my colleague allow me a the stamp of the Govei~nment and provide that it shall be a legal moment? tender and it becomes good money. On anothe1· occ~sion I have Mr. DOLPH. If my colleague will allow me to finish my taken occasion to discuss that question. I do not wish to be led statement: I rrefer to answer one question at a time. off into a discussion of it at this time. Mr. MITCHELL of Oregon. Certainly. :1\Ir. PEFFER. Will the Senatorfrom Oregon allowmeto ask Mr. DOLPH. I hardly like to admit that the act of 1834 was him a question? passed for the purpose of securing the circulation of both gold Mr. DOLPH. Certainly. and silver as money. The truth isr as I stated on this ftoor at Mr. PEFFER. What is the commercial value of the bullion one time, many members of Congress were indifferent as to in a silver dollar at this time? whether-we retained silver, but they were bound to have gold, Mr. DOLPH. On the 9th of last Aug·ust, when I addressed and while they were w.:u-ned that the ratio of 16 to 1 would be the Sei;J.ate on the question, it was 56 cents; but I -do not follow an overvaluation of gold and would drivesilveroutof thecoun the markets closely. try, they still insisted on that ratio. The act of l ~a4 was passed Mr~ PEFFER (exhibiting a silver dollar of 1892). Then I ask for the purpose of securing the circulation of gold in this country. the Senator what is the value of this silver coin-a dollar? We do not disagree about that. I was discussing the question Mr. DOLPH. Its intrinsic value is 5ti cents. when the leg,al r atio adopted in the United St.1tes of 15 to 1 Mr. PEFFER. Wh.:~.t is the money value of this coin? ceaoed to be the corrimerci:ll ratio, when the Gresham law began Mr. DOLPH. The money value of it ia 100 cents; because it to orerate, and when gold began perceptibly to leave this country. is redeemed by the Government. As said, it is am tter of history, a matter of fact; and whether Mr. PEFFER. What m J.kes that value? the Senator from Colorado or I may be right, it is indifferent· Mr. DOLPH. My de tr sir, what is the intrinsic value of a but as to the operation of the Gresh lm 1· wand the effect of the twenty-dollar legnl-tender note? It has no intrinsic value what divergence of the legal ratio and the commercial ratio the mat ever. Why is it worth $i0? Because if you carry it to the ter is imrortant. Now I will hear my colleague. Tre1.sury of the United States you can g et $~0 for it. But I d.o Mr. MITCHELL of Oregon. With the consent of my col not care to be led off into a discussion. on that point. '£his is as league, I should like to ask llim and also the Senator from New far as I care to discuss it now. Jersey a question, and that is whether the fact that there is or Mr. PEFFER. But, Mr. Preside.nt-- is-not at a pa.rticular time ·a redundancy of currency makes any Mr. DOLPH. The Sen .ttorfrom Kansas could notconvertme difference in respect to the operation of the Gresham law? to the idea, the d0ctrine of fiat money if he should inte1•rupt. me Mr. DOLPH. None at all. all the afternoon. Mr. MITCHELL of Oregon. And furthermore, whether there :Mr. PEFFRR. I do not wish to do so, Mr. President, but was a redundancy of currency during the time he sta,tes the when the Senator referred to this fiat idea he addressed his re Gresham law operated? marks to me, and I am very glad he did, for it gives me the op Mr. DOLPH. None at all. As I said a little while ago, you portunity of letting him state to the Senate and to the country may search history, you m3.y go b-wk as far as we have any au what makes this coin, which contains 37H grains of pure silver, thentic history, and no commercial country has ever been able to worth a dollar in any market oi the country, while the commer maintain the concurrent circulation of gold and silver under free cial value of the bultion th.tt is in it is worth only 56 cents. coinage when the legal ratio was not the commercial ratio. I Mr. DOLPH. My dear sir, if youcarry that silver dollar over cited the c·1se of Jap.1n. Without foreign commerce, without the Mexican border it is worth 100 cents. cont:tct with the gre'1t world and business, certain ornamentJJ Mr. PE13'FER. I will not do it. gold pieces were in domestic circulation for one-third of their Mr-. DOLPH. You c:tn get ne.1rly t'Yo Mexican dollars that value, but the moment she enterei into treaties with foreign contain more silver than that for th!l.t dollar, beca.use they have countries and had a foreign commerce and ca.me in contact with free coinage over there: and so you would find it with every free foreigners, that moment her gold pieces began to go out of the coinag-e ooun try in the world. Ho ever, I do not care to go into country, and it became necessary to withdraw them from circu that discussion. Twice I h 1893. CONGRESSIONAL RECORD-SENATE~ 2059 Mr. DOLPH. I will yield. terms, is not the gold dollar redeemable because it is pa.id also Mr. TELLER. This seems to be-a sort of academic discussion for public. dues? What is it redeem:tbte in, silver? new. Will the Senator trom Oregon tell us what he means by Mr. DOLPH. The stmdard is gold. Silver dolla.rs are re fiat? deemable .in gold tothJ extentof beingrece.ivaMefor publicdues Mr. DOLPH. I will let the Senator from Kansas answer, who as the equivalent of gold. That is all the answer I need to m :~. ke, said that when I talked about fiat m oney I aimed my remarks at and it is a sufficient answer. If the Senator supposes that that him. He must be posted. I willlethimstq,te whatfiatmoneyis. is not the prov.ision which keeps t he silver coin in circulation M:r. PEFFER. But the Senator from Colorado directed his in this country the equivalent of gold, let him repeal that provi remarks to the Senator fr om Oregon. sion and see how quickly the silver dollar would deprec.iate. Mr. DOl.PJI. It is somethin-g that is attempted to be made Mr. TELLER. What p l'Ovision? money by legislation, making it a lega.l. tender, and by stamping Mr. DOLPH. The provision for receiving silver in payment it with the government stamp, without possessing intrinsic value of public dues. or any provision for exchanging it for th·'tt which has intrinsic Mr. TELLER. Let Congress repeal that provision in reference value. I think that is a very good definition. to any money and it would depreciate it. Mr. TELLER. Will the Senator permit me to askhimaques Mr. DOLPH. No; you may repeal the legal-tender qualities tion? of gold and it would pass in this country as readily as it do ~ s to Mr. DOLPH. I will. day, and it would be just as valuable for exportation and for pav- Mr. TELLER. Will the Senator tell me why gold will not ing bala.nces in trade against us. - p ay 11 debt in China, why it wilt not pay a debt in India, and in Mr. TELLER. I agree to that statement as long as all the some other sections of the vvo rld? 1 want to know if it is not be rest of the world gives it legal-tender quality; but let the whole cause it lacks the .fiat of the government? world withdraw its legal-tender quality and it is not any better Mr. DOLPH. Gold does not pay debts in India, and probably than le3d. not in China, because it is not a legal tender. That is- all there Mr. DOLPH. Oh, well, that is wh:tt a great portion of the is of that. world has been doing in regard to silver, and still the Senator Mr. GRAY. Who has said th:Lt gold does not pay debts there? from Coloeado insists th:tt- Wt3 m '.lst have the free coinage of sil Mr. DOLPH. It will pay debts and it does pay debts. I guar ver at the old ratio of 16 to l,.,and th 'l.t in the f..tce of his proposition antee that nobody ever heard of any one who refused to take just now that if we should repeal the legal-tender quality of gold gold unless he wan-ted to prevent the payment of a debt. But I it would be wor th no more than lead. In the face of all that has understand gold is not a legal tender in India, and yet all their been done in reg -trd to silver by foreign countries the Senator exchanges-are done u~on the gold basis. When a man buyswhru.t from Colorado still insists on the free coinage of silver at the old or any product of Ind1a he draws gold exchange on London. rat.io. M t'. TELLER. Will the Senator a.uswerme another question, The Sena.torfrom-Delaware [Mr. HIGGINS] the other day made which will come nearer home? Why is the creditor not com som'e very sensible remarks about public opinion on the question pelled to take gold bar s in p..tyment of his debt? of free coinage, which I ask to have read at the desk. Mr. DOLPH. Bero.use the United Statescoinsitsownmoney. The PRESIDING OFFICER. In the absence of objection, But I will refer the San ator to a fact to which I alluded in a the Secretary will read as requested. former speech heTe, th1,t in C 1lifornia. in the ear ly days before The >:;ecretary read as follows: the mint was established, private parties m:ide go d coin which I say in all candor to my friends from the South as well as the West, it passed current and was worth there just as much as the gold coin seems to me that the mistake on your part has been that you have not un dertaken to educate your people in what is rig.ht. of the Government. You have foUowed instead· of lea.Jing; you ha.ve listened instead of teach Mr. TELLER. That was done in my part of the country. ing; and when at las.t your party comes into unquestioned and unchecked Mr. DOLPH. In Califm·nia, and in other parts of the country._ power in all the branches of" this Government for the first time since it was turned out on its great failure of thirty years ago, you lind that responsi that was done, because intrinsically it was worth all it purported bility paJ.sies the ha.nd that you had raised. and that you. trusted with the to be worth. responsibilities of government, are compelled to come around for what is Mr. TELLER. I want the Senator's attention attracted to the true doctrine a.nd the tr ue interest of the count ry. I say as much to my friends from the silv~r States. Of course, it my con this point, that money h as legal-tender debt-discharging quali fi.dell.Ce is well placed, that only through. international bimetallism can sil ties, and th·1 t those can only be conferred by law. ver ba made 1!1.29 a.n ounce, t nen the position of their present representa Mr. DOLPH. Oh, nobody disputes that proposition. tives is inde'ens1ble, and only contributes to the disaster of th~ir constitu· ents. 0f course. they are perfectly ea.rnest and sincere that I am. mistaken Mr. TELLER. Th1.t is the fiat, and tha.t-is all there is of it. and they are right. The event will determine. Mr. DOLPH. Nobody disputes the proposition that only the But if tha.t issue is to. come. Mr. President, I have no doubt of the result. Government can m ·tke money that will pay debts; that only the You have already seen what has been done in another body. You see what is going to be done in t.llls body. It I ma.y be permitt.ed to state the line of Government can provide money which is a legal tender; but it the armies as they stand to-day. beginning with Iowa and Minnesota, a.nd does not follow that th legal-tender quality or the stamp· of the talting the States inclusive of them north of the Missouri and the Ohio and Government imp::trts value. I deny it. It does not do it. But the Potomac east to the Atlantic- Ocean. you have a solid wall in ta.vor of repeal and opposed to isolated free coinage by the United States; and when as I said beiore, I do not care to be diverted into a discussion of that great contention is carried before the forum of the people, there is that proposition again. nothing to show tha t it would be changed. Mt·. PE!f.B'ER. How does it get that? I know that the farmers of the South have been left to Populistic teach ers, and· !think to mistal ' 2060 CONGRESSIONAL RECORD-SENATE. OCTOBER 3, countries of Europe, and the fall in the price of silver, and what conference that not only the delegates of Great Britain, but all be was pl~ased to call the demonetization of silver in this coun the other delegates, were in favor of the utilization of both sil· try in 1873, ware brought about by a great conspiracy of the ver and gold. All the delegates were iu favor of it, but they bankers and of the moneyed interests of the country. were not ready, each for himself, to adopt it in his own country. We beard exploded t he other morning a statement which has In response to the Sena fi?r from Colora do I want to reply briefly been going the rounds for years, which affected the honor of the to what has been often sa1d here, that the conference adjourned country and of Congress, to the effect that an English gentleman without action. The conference adjourned for reasons which I had come to America with a large amount of money and ha.d cor endeavored to explain here upon the floor a few days ago; and it rupted Congress and secured the passage of the act of 1873. It was expected, an.d it is now expected, by European states, that turned out that Mr. Seyd was an ardent bimetallist, and had the conference will reconvene. For reasons which I do not un written nume-rous works on the su"Qject, which have been quoted derstand and do not know, the conference was postponed from by Senators on this floor, and that he had not been in the United the 30th day of May until November. So far from the European States since 1856. governments not being interested in this question, there is not Mr. President, the idea of a great conspiracy between the a European government which is not watching, day by day, every moneyed powers of the country is absurd to me. Do you sup step and every movement that is taken here. The Senator from pose that banks will suspend operation; that banks whose busi Oregon has stated truthfully that if you can reach these govern ness it is to loan money and receive interest will reiuse to loan ments they are hoping that this Government in and of itself will money; that the holders of bonds and stocks will sacrifice them get them out of their dilemma by unloosing our gold and taking upon a falling rna ket; that men will export gold at a large ex the whole burden of silver upon ourselves. pense for the purpose of influencing legislation and securing Mr. STEWART. I should like to ask the Senator from Iowa legislation in their interests? if last February there was not a resolution passed in Parlia ment The very proposition is absurd. It is the law of self-interest by 81 majority against the reassembling of the conference. that governs all business operations and governs all business Mr. ALLISON. Notby81majority. A resolution was passed, men. Banks are organized for the purpose of making money, as I recollect, by only 47 majority, and-- as all other industries are, and if any bank has closed its doors Mr. STEW ART. Eighty-one. during the recent panic it was because the industrial situation Mr. ALLISON. That was a question of instruction to the required it, because it was necessary to do so. If any bank h as European delegates. There was no pretense there, as I recollect refused to loan money it is because the managers believed that the circumstance, that the conference would not reconvene. under the existing depression and disturbances it was necessary Mr. STEWART. It was simplv a resolution expressing the to strengthen its reserves in order that it might weather the sense of Parliament that the monetary conf'3rence should recon· storm. If gold has been exported it is because it has been vena, and it wa.s voted down by a majority of 81. profitable to export it. I say it is absurd to talk about a con Mr. ALLEN. Mr. President- spir.•acy by which men would destroy their own business, sacrifice Mr. DOLPH. I have been very good natured. The Senator their own interests, and bring themselves to ruin and bank from Nebraska has made a speech instead of asking a question. ruptcy for the sake of influencing legislation. That is about upon- I do not know whether I can remember it all or not. But I will a pa.r-- • hear him further. Mr. ALLEN. Will the Senator from Oregon yield to me for Mr. ALLEN. It was not a speech. I wanted simply to say a a moment? word in reply to the Senator from Iowa, with the permission of Mr. DOLPH. Certainly. the Senator from Oregon. Was it not distinctly asserted by the Mr. ALLEN. I am one of the persons who believe there is a majority of the English delegates to the Brussels conference conspiracy,and I believe it capable of demonstration. The Sen last December that the unalterable policy of the English Gov· ator says there has been no conspiracy against the masses of the ernment was a gold monometallic policy, and wa.s not the only people by what we Populists call the money power, and which I proposition that was submitted by Mr. Alfred de Rothschild a shall take occasion to define after awhile. How does it come, proposition that this Government should continue the purchase then, as is true, that immediately following the Napoleonic wars of silver under the present act, or some act similar to it, and the elder Rothschild bought up all the securities of the nations that the combined powers of Europe for five years would carry involved in the French war at a large discount and that shortly something like a similar amount? But every English delegatQ after that time the English nation resumed specie payments on at that time, with the exception of Molesworth, I think-I do the gold basis? not recall these names readily-declared that the policy of that How is it that in each monetary conference we have had in country was irrevocably a gold policy, and t.he London Times the last thirty years English influence and gold monometallism last month declared the inefficiency of the Brus:;els conference have dominated those conferences? How is it that the same and stated that the remonetization of silver was a mere chimera. class of persons who owned German secur ities. procured the Mr. DOLPH. I am willing to admit, if it is an admission, I Prussian Government to go upon a gold basis immediately after state that the English Government since 1816 has been upon a the Franco-Prussian war? Granting, for argument's sake, that · gold standard, and in all international conventions has declined the correction of the record which was made here is proper, and to enter into any international agreement for the free coinage I think it is proper, how is it that this Government has been of silver in Great Britain. That she had a perfect right to do. consulting Ernest Seyd, or the subject of any other government, She insists that she will maintain her own shndard, and prob upon its financial policy? ably she never will submit to join other countries in an interna Mr. ALLISON. If t he Senator from Oregon will yield to me tional agreement for the free coinage of silver at an agreed ratio for a moment, I wish to answer one suggestion made by the Sena until the pressure becomes so great upon her and upon her de tor from Nebraska. It is true that in every monetary conference, pendencies as to make it imperative that she should do so. so far as I know, certainly in the last monetary conference, Mr. In regard to the action of Rothschild and others, it simply il Rothschild was very anxious for the utilization of both silver lustrates-- and gold. He stated at Brussels, what I believe to be true, that Mr. TELLER. Will the Senator from Oregon allow me? if there was a complete disuse of silver the world would see a Mr. DOLPH. I wish the Senator would not interrupt me at panic and dis:tster such as were never seen before. So far from present. I should like to conclude this remark. It simply illus the Senator's statement being true, the reverse is true as respects trates what I said a moment ago, that nations and individuals even the delegates from Great Britain. · and corporations are actuated by selfish interest."!, selfish prin Mr. ALLEN. Will the Senator-- ciples; and not unlikely when this financial storm has blown over Mr. TELLER. I should like to correct the Senator from Iowa. we shall find that m any sagacious and speculative wealthy men That is not a correct statement of what Mr. Rothschild said. have profited largely by the depreciation in bonds and stocks Mr. Rothschild stated that that would be the result unless the and have made fortunes. The men who had money to do it have conference came to some arrangement by which there would be made fortunes by the purchase of r ailroad and Government se a.further use of silver, and an extended use of it. curities. That is merely what Mr. Rothschild did, and it proves Mr. ALLISON. Verr, well. nothing. It does not prove a conspiracy. One individual can Mr. TELLER. Not if they should destroy silver. He- pre not conspire. But the talk on this .floor is that all the great dicted, in other words, that if the conference adjourned without moneyed interests of the country have combined together to de affirmative action the result which has followed would take stroy silver and to bring about legislation for its demonetization; place. that they have combined and agreed to act against their own in Mr. ALLISON. Undoubtedly. Of course, I did not pretend terests. I assert again that the proposition is absurd. to quote the exact language of Mr. Rothschild. However, Mr. We have heard a great deal on this fioor-- Rothschild not only conveyed that idea, but so far as he could Mr. TELLER. I do not desire to interrupt the Senator unless in his own way he contributed to have everybody else use silver it is agreeable to him. except England. He may not have stated, in the remarks which Mr. DOLPH. I will yield. · he made, exactly what I said; but it was perfectly evident in that Mr. TELLER. But !desire to correct the Senator from Iowa.. ;.. 1893. CONGRESSIONAL RECORD-SENATE. 2061 · I think I ought to put in the exact language of the distinguished the development of the cotton industry, and the wheat industry, Senator that he quoted, because I think his quotation was very and railroads in India, and all of its developments in the Jast incorrect. eighteen years have not been in consequence of depreciated Amer Mr. ALLISON. I made no quotation. I merely gave the ican silver that was purchased in this country at depreciated general statement as stated by Mr. Rothschild. The Senator prices and coined at full value in rupees in that country? from Colorado must not put tne in the attitude of endeavoring Mr. DOLPH. Oh,no, Mr. President. The prosperity of India. to quote him as though I had the document before me. I made has been increased by immense government outlays, in the con a general stg,tement, -and no quotation. struction of great railroads, in the opening up of new regions Mr. TELLER. If the Senator will leave it in the RECORD as that were before ina~cessible and in making t h em productive. he said it I will have nothing further to say. This is what Mr. I do not care to f!O into that. I deny the proposition that any Rothschild said: prosperity of India has been caused by her being upon a silver I need hardly remind you that t he stock of silver in the world is estimated basis. I have on other occasions talked about the prosperity of at som e t housands of millions. and if this conference were to break up with India and the treatment of India by the Government of Great out arriving at any definite result there would be a depreciation in the value of that comm odity which it would be frightful to contemplate and out of Britain. I do not care to go into it again. I simply deny the which a. monetary panic would ensue, the far-spreading e:!'l'ects of which it proposition. I have stated the reason for the development of would be impossible to foretell. India. Mr. ALLISON. Very well. Now, thatis impliedly just what Mr. President, we hear a great deal about going to the gold I stated; that is to say, that the destruction of silver would cause standard. We are on the gold standard. We h ave prac.tically such a condition of disaster as could not be foretold. been on the gold standard since 1834. There never was a time Mr. GRAY. And, if the Senator from Oregon will pardon when silver under free coinage would circulate concurrently me, it implied negatively the assertion that Mr. Rothschild at with gold in this country. As I have stated before, when we least was a coconspira tor in thegreatconspiracywhich has been adopted the ratio of 16 to 1 we overvalued gold so that g old discovered and exploited on this floor. staid with us and our silver went out of the country, and it be Mr. DOLPH. We have heard a great deal of talk on this floor came necessary in 1853 to reduce the amount of silver bullion in about the price of wheat and cotton. It is alleged that the price the fractional coin in order that we might keep it in this coun of these commodities has fallen as silver has fallen, and it seems try for change. to be intended to create by such talk the impression among the In 1873 it is true that we repealed the law which provided for farmers and producers of the country that in some way their in the free coinage of the standard silver dollar, but the act of 1873 terests are not protected under the gold standard; that they was a free-coinage act. We merely substituted the trade dollar lose something from the fact that the free coinage of silver was pf 420 grains of silver for the standard dollar of 412;} grains; and discontinued. up to 1878 any holder of silver bullion could carry his bullion to The price of wheat and cotton, like the price of every com the mint and have it minted into trade dollars. It was legal modity of which we produce a surplus, is fixed in Ll>ndon by the tender the same as other fra~tional coins from 187i:$ up to 1876. supply and demand of the world. The wheat and cotton raised It was legal tehder for the payment of debts to the amount of $5. in the United States have to compete in the London markets with In 1876 the legal-tender quality of the trade dollar was taken the wheat and cotton produced in India. Our wheat h as to com away from it, and the Secretary of the Treasury was authorized pete with the wheat produced in Russia, and in India, and the to limit its coin'lge to the amount needed for exportation; but Argentine Republic, and in Egypt, and in every quarter of the the law providing for the free coinage of the trade dollar was globe; and whether we go to a silver standard or maintain the not repealed until 1878. gold standard, the price of our exports of wheat or cotton will Mr. President, I think I have shown that the free coinage of continue to be fixed in London in gold, by the universal law of silver at the ratio of 16 to 1 would have the effect of putting us supply and demand. upon the silver standard; that itwould have theeffectof driving Whoever buys wheat in the United States will draw exchange gold out of circulation and thus robbing us of one-half-depriv payable in gold on GreatBribin and will receive his pay in gold ing this country, to adopt the language of the Senator from Ne in Liverpool or London, and if we should go to a silver standard braska LMr. ALLEN], of one-half its money. he would buy in the United States silver coin for the purpose of I do not say that it would send it abroad, but it would drive it paying for the American farmer's wheat, and he would pay no out of circulation as the legal-tender notes drove gold out of cir more silver coin for it than he could afford to pay, and then pay culation during the war; it would depreciate t he money value the cost of transportation and insurance, and make a profit by of the standard silver dollar coined under the free-coinage act, selling it in Liverpool in gold. If the producer of wheat or and the silver coin would be worth no more as money than the cotton in this country were paid in gold instead of silver, he bullion it contained; it would bring about a severe contraction could take his gold and buy as much silver coin with it as he of the currency, which would b e disastrous to our industrial sys would receive if silver was the standard in this country, and the tem and produce business depression and financial disturbance. silver coin he received for his wheat or cotton would go no fur If that be so, Mr. President, then the only question left is: Is ther in procuring what he consumed than the gold coin he now it desirable that we should have free coinage, even if we should receives or would receive if we should retain the gold standard. go to a silver basis? It is not sufficient for the Senator from Mr. PEFFER. Is not that what we are doing now? Colorado [Mr. TELLER] to say, "I believe that with free coinage Mr. DOLPH. I do not know what the Senator means by that the price of silver bullion would be increased until the ratio of guestion. It wa8 shown conclusively by the Senator from Texas 16 to 1 would be restored;" it is not satisfactory to me for the LMr. MILLS] the other day by the quotation of prices and by an Senator from Nevada [Mr. STEWART] to say," I think with free argument which I considered sound and conclusive, and it was coinage the price of silver bullion would be increased to that of intimated, I think, by the Senator from Delaware [Mr. GRAY] gold, and silver and gold would concurrently circulate, but in the other day, that the producer is not concerned in this ques any event let us have silver and let gold go." tion. It is immaterial to him whether you measure his products I have not heard an argument which I think was calculated to by the foot or the yard, by the peck or the bushel. It is imma prove that it would be beneficial to thiR country to adopt free terial to him whether he receives a single ~old dollar or two sil coinage of silver, and go to the silver basis. Is there anything ver dollars if the two silver dollars are worth no more than the in the credit or the financial system or the prosperity of China, ~old dollar. The only class of persons in the world who would Japan, or Mexico to induce us to become silver monometallists oe benefited by depreciating the currency would be those who and adopt their system of currency? could pay their debts, if there are any such, contracted under the I have heard the statement substantially on both sides of this gold standard, in depreciated silver. Chamber recently, that we can afford to let the _trade of Europe Mr. ALLEN. Will the Senator from Oregon yield to me for a go if we can get the trade of the Orient and have trade with moment? China, Japan, Mexico, and the Central and South American Re Mr. DOLPH. I should like to get through. publics. In the first place, the free coinage of silver would not Mr. ALLEN. I do notdesiretointerruptthe Senator if is not add 1 per cent to our trade with those countries, and, in the agreeable to him; but-- next place, if we could secure all the trade of those countries Mr. DOLPH. The Senator will take the floor one of these now carried on with European countries the trade of all those mornings and he can t hen answer me. countries put together would not be an equivalent for the loss of Mr. ALLE ~ . I should like to say- our trade with Great Britain and the great commercial coun Mr. DOLP H. Go on· I will yield. tries of Europe. . Mr. ALLEN. The Senator constantlyreiteratestheexploded We have had eloquence and research and history and criti fact or the exploded statement, it never was a fact, that the prod cism and denunciation. It seems to me that what we want now ucts of India are placed upon a gold basis. is a little careful, temperate discussion of the real questions at .... Mr. DOLPH. No; I never said the products of India were on issue between us. If there are propositions upon which we can a gold basis. India is on a silver basis. not be reconciled, let us agree to disagree, and have respect for Ml'. ALLEN. I want to ask the Senator if it is not true that the opinions of others. If there is any proposition upon which 2062 CONGRESSIONAL RECORD-SENATE. OCTOBER 3, ·. we can get together, which will be for the benefit of the silver satisfaction of knowing that I have pursued the right as I under producing States and in tbe interest of bimetallism, let that be stand it. stated and brought forward and argued. Mr. POWER. Mr.Presidedt, the debate upon theproposjtion I am re ~.. dy to vote on this question. I am sorry to have occu to repeal the silver-purchase clause of the so -called ''Sherman act" pied so much time, but Senators will bear me out that it has not has taken wide range, and the further we proceed in the discus been entirely my fault. I have been continually diverted from sion, the more momentous the issues appear to be. the line of thought I had propos€d to pursue and my remarks This is a question not to be idly ignored, nor swept away by the have been ext-ended by interruptions-! do not object to them impatience of the ad vacates of repeal. or the clamors of such of as I say, I am ready to vote upon this question, and I hope I shall the metropolitan press a.s arrogantly demand that debate shall not occupy the time of tbe Senate again upon this or any other be restricted and a vote re -' ched without delay. In this pur question until we reach a vote. view, I fancy that certain Senatorswhooriginallyconceived that But I desire to reiterate wh dered right and left by the vicious schemes o-f the large money upon the sacred soil of the single gold standard which has forced centers; but happily the end was near. Unable to longer cloak the specious 1893. CONGRESSIONAL RECORD- SENATE. 2065 ance of trade against us to be paid in gold. As the value of gold that journal. Surely some light is breaking in upon New Yo1·k inet'eases, so the value of silver diminishes, and relatively the journalism. value of everything else falls. But, owing to the peculiar r ela The PRESIDING OFFICER. Without objection, the Secre tions of silver to the trade of India, Americ:m wheat and cotton tary will read as requested. must suffer in proportion to the degradation of silver, and hence The Secretary r-ead as follows: the farmers of America are subjected to immense losses. HAS GoLD APPRECIATED? The following comparative tables show the exports of wheat Contention is made by some of the advocates of the single gold standard from India and the United States from 1881 to 1891, inclusive. It that the value o.f gold is a permanent quant ity, and that the quality which will be observed that the export of wheat from India increased peculiarly commends the m etal as a m easure of value is that it is stable-it from 13,876,166 bushels in 1881 to 50,951,600 bushels in 1891, while stands; in short, that it is unchangeable. We venture the assertion that there are few men cf reputation in financial science in this or any other the export of wheat from the United States diminished from country who would express such an opinion. 150,712,509 bushels in 1881 to 55,131,948 bushel,s in 1891, a loss of An examination of the subject will prove that the theory of the stability of over 95,000,000 bushels and a diminution in value from $167,845,- gold is completely lmtenable. If there were but two kinds of flesh food, beef and mutton, and a law should be passed forbidding mutton to be used as 956 to $51,426,272, representing a money loss to our farmers of food, what would be the etl'ect upon beef ? The price would at once rise. If $116,419,684 for 1891 as against 1881. I will ask leave to insert there are but two money metals in the world, silver and gold, and the law the following table with my remarks, taken from reports of the should deprive silver of its money function, its debt-paying quality, is it not equ ally certain, the demand being concent rated upon gold, that gold would Agricultural Department. rise in Yalue? In that event, what phenomenon with r espect to the prices of The PRESIDING OFFICER (Mr. GALLINGER in the ch air). commodities would be observed? Must they not decline, and for the reason Without objection, leave will be granted. that the volume of metallic money having been reduced by one-half, more commodities would be required to obtain possession of gold? And, as the 'J.'able showing exports of'wheatfrom Ind£a and f 1·om United States, for the years volume of business expanded, in a time of profound peace. creating a con 1881 to 1891, inclusive. tinuously increasing demand for gold, would not prices persist in falling all along the line? [From the report of the Department of Agriculture.] 'l'h ese results could have been clearly foreseen in 1873 by any thoughtful man. They are results that may be observed now by any man who will merely open his eyes. Prices of all the staple commodities have been fall India. United States ing steadily for twenty years. The decline began in tbe year 1S73, when sil Year. ver was demonetized here and in Europe, and it is attributable chiefly to Bushels. Value. Bushels. Value. the fact that the material in which all other values are rn.easured has it.selt advanced in value. If further proof were required, it may be found in the 13,896, 160 !12, 783, 972 150,712,509 $167,845,956 fact that prices in silver-using countries have not declined, but silver to 1881 ------~ day buys as much of any other commodity as it bought two decades ago. 1882 ------·------37, 148, 543 33, 618, 241 95, 962,4.07 113, 827, 31d 26,495,024 23, 502, 820 107, 352, 342 120,837,129 It is asserted that this theory is not . solmd because the price of l:l.bor has 1883 ------· - n ot fallen. But labor is not a mere inanimate commodity. It has a resist 1884 ------::9,202, 636 34,070,957 70,450, 007 75,130,427 29 5S6 44.5 23,874, 549 84,935,183 73,188,000 ing force and that force has been made el'l'ective by organization against the 188;) ------·- influence which would thrust down wages. It is urged that mechanical in 1886 ------·------39: 328: 658 28,579, 032 58, 105, 141 50,558,862 41 , 558,765 29, 845,910 102, 330, 395 91,002,474 ventions and improvements in :{>rocesses have put prices down. But there 1 'i ------has been no great labor-saving mventionof a revolutionary character since 1888 ------·--- 25 271 249 18,467, 079 66, 279,993 56,627,546 32: 87-t: 628 2!, 300, 19"2 46, 635, 624 41,846,064 1873. The cost of producing wheat in some regions has been reduced, but in 1889 ------no such degree as to account for a 60 per cent fall in the value of the cereal. 1890------25 764 123 19,231,481 54, 558,144 45,387,931 1891 ______55, 131,948 51,420,272 Cotton has declined nearly 50 per cent; but in what particular are cotton 50:951:600 culture and cotton picking auy less costly than they were twenty years ago? No evidence can be produced to sustain the claim that the planter has any S'.r.A1.'ISTICS SHOWING THE E F FECT OF DIMINISHED VALUE OF SILVER UPON considerable advantage now that he did not have then. THE MARKET VALUE OF WH EAT AND COTTON-ROBERT P. PORTER'S EDI· Every gold monometallist insists that the full remonetization of silver TORIAL IN THE NEW YORK " PRESS." would decrease the value of existing debts. This, indeed, is the main argu ment used against remonetization. But, if to remonetize sliver in 1893 Mr. POWER. Let us see what effect the diminished value oi would be to decreaRe debts, was not the result of demonetization in 18'i3nec silver exercises upon the market value of wheat and cotton. essarily to increase them? Can it be seriously held that the argument is good in one case and not in the other? Why would silver remonetization The following table shows the value of silver per ounce and the decrease debt? Because it would depreciate gold. Why did silver demone market value of cotton per pound and wheat per bushel from 1872 tization increase debt? Because it appreciated gold? Suppose gold should to 1893, inclusive: be demonetized, as silver was, and sliver should be made the sole standard? Who will venture to urge that the value of gold would remain stable? Be Compm·ative table showing decline in prices of silver, cotton, and wheat. yond dispute it would fall far below the value of silver, for silver would at once advance. It is possession of the money function that gives value to gold, and the loss of it that depreciates silver. Year. Silver. Cotton. Wheat. Year. Sliver. Cotton. Wheat. With the question of the morality of decreasing the dimensim;ts of debt by legislative actlon we do not propose now to deal. But t he man who con --- tends that it would be immoral to remonetize silver for t.hat reason must Cents. Cents. confess that it was equally immoral to demonetize it in 1873. The truth is 1872 ____ ----. $1.32 19.3 $1.47 1883 ------$!.11 10.8 $1.13 that every creditor is benefi ted by that which increases the general prosper 1873 ______1. 29 18.8 1. 31 1884_ ___ ---- 1.0t 10.5 1.07 ity of debtors. The ma.n in New York who holds Kansas mortgages can not, 1874 ______1.27 15. 4 1.43 1885------1. 06 10.6 .86 in the long run, profit by a system that urges his debtors toward bank 1875 .. ------1.24 15.0 1.12 1886 ------.99 9.9 .87 ruptcy. What the wealth producers of all lands require is that there should 1876 ____ ----- 1. 15 12.9 1.24 1887 ------.97 9.5 .89 be such stability of values as will permit no change for or against the cred· JIJ77 ------1. 20 11.8 1.17 1888------.93 9.8 .85 itor or debtor, and that stability can be had only by resort to bimetallism. 1878 ____ ----- 1.15 11. 1 1.34 .93 9.9 .90 1879 ______1889 ------CENSUS STATISTICS SHOWING THE INCREASE IN THE NUMJ3ER OF AGRICUL- 1.12 9. 9 1.07 1890---- ·--- 1.04 10.1 .83 1880 ______1. 14 ll. 5 1. 25 .90 10.0 .85 TURISTS IN THE MINING STATES THE LARGEST PER CENTAGE OF INCREAS:m 1881______1891 ------IN THE UNITED STATES-AGRICULTURE AND MINING GO HAND IN HAND. 1882 ______1.13 ll.4 1.11 189"2 ------.86 8. 7 .80 1.13 11.4 1. 19 1893 ------.75 7.0 .66 Mr. POWER. Mr. President, the North Atlantic division, consisting of the States of Maine, New Hampshire, Vermont, It will be observed from the foregoing figures that cotton and Massachusetts, Rhode Island, Connecticut, New York, New Jar wheat suffeL·ed loss in price almost in exact proportion to the sey, and Pennsylvania, conts.ins, according to the Eleventh Can diminution in price of silver. sus (1890), a population of 17,401,545, of which , it is estimated, I am aware, Mr. President, that this proposition is sought 1,225,892adultmalesareengagedinagriculturalp ursuits. In1880 to be explained by the contention that toomuch wheat has been these States contained a population of 14,507,407,of which1,039, and is produced, and that therefore the laws of supply and de- 601 were agriculturist&, being increases in 1890 of 2,894,138 in mand govern the rise and fall of prices. This view, however, is population and 186,291 in the number of agriculturists, or an in wholly untenable, because, as has been clearly and forcibly crease in the latter class of 15.19 per cent. shown by the senior Senator from North Dakota [Mr. HANs- The population of the South Atlantic division, consisting of BROUGH], that, according to the official reports of the Depart- the States of Delaware, Maryland, District of Columbia, Vir ment of Agriculture, the world's supply of wheat fmd its prices ginia , West Virginia, North Carolina, South Carolina, Georgia, have steadily diminished since the great crop of 1887, which ag- and Florida, contains a population of 8,857 ,920, of which 1,892,696 gregated 2,266,331,368 bushels. In 1888 the crop was 45,000,000 are agriculturists. In 1880 these Sts.tes contained a population bushels less; the crop in 1889 was 191,000,000 bushels less than of 7,597,197, of which 1,618,391 were agriculturists, being in in 1887; in 1890itwas 94,000,000 bushels less than in1887; in 1891 creases in 1890 of 1,260,723 in r opulation, and 244,305 in the num it was 61,000,000 bushels less than in 1887; in 1892 it was 49,000,- ber of agriculturists, or an increase in the latter class of 14.50 000 bushels less than in 1887' and in 1893, it is estimated, the crop per cent. will be 166,000,000 bushels less than in 1887, the average export The North Central division. con sisting of the States of Ohio, price of wheat th::Lt year being 89 cents. Prices have steadily Indiana, Illinois. Michigan, W isconsin, Minnesota., Iowa, Mis diminished from 89 cents in 1887 to about 60 cents in 1893, while souri, North Dakots., South Dakota, Nebraska, and Kansas, con in North Dakota, as the Senator from that State has explained, t ains a population of 22,362,279, of which :3,555,018 are agri- wheat has been down as low as 40 cents per bushel. culturists. While upon this subject, I send to the Secretary's desk to be I n 1880, these States contained a population of 1'7,36!,111, of read an editorial from the New York P'i·ess of September 15, of which 2,716,810 were agriculturists, being inct'eases in 1890 of the present year, which I regard as peculiarly significant, com- 4, 998,168 in population and 838,208 in the nnmbet· of agricult.ur ing as it does from the pen of Robert P. Porter, the editor of 1 ists, or an increase in the ln.tter class of :23. 53 per cent. XXV- 130 2066 CONGRESSIONAL RECORD-SENATE. OOTOBER 3, The South Central division, consisting of the States of Ken number increased from 1,639 to 4,785; in Colorado from 13,539 to tucky, Tennessee, Alabama, ·Mississippi, Louisiana, Texas, In 28,718; in New Mexico from 14,139 to 18,162; in Arizona from dian Territory, Oklahoma, and Arkansas contains a population 3,435 to 5,064; in Utah from 14,550 to 21,011; in Idaho from 3,858 of 10,972,893, of which 2,610,180 are agriculturists. In 1880 these to 9,983; in Washington from 12,781 to 59,449; in Oregon from S t!1tes contained a population of 8,919,371, of which 2,116,570 were 27,091 to 48,637, and in California from 79,396 to 110,918. agriculturists, being increases in 1890 of 2,053,522 in population These figures demonstrate that the mining industries have op and 493,610 in the .number of agriculturists, or an increase in erated to develop agricultural interests, and that mining and the latter clnss of 18.90 per cent. agriculture have progressed hand in hand. To destroy or im The Western division,.consisting of the States and Territories p air the mining industry, as contemplated by the pending bill, of Montana., Wyoming, Colorado, New Mexico, Arizona, Utah, is to destroy or impair agriculture. The laws of demand and Nevada, Idaho, Washington, Oregon, and California, contains a supply operate in this instance with marked effect. Themi.ning population of 3,027 ,613, of which :125,029 are agriculturists. In population must ha-ve food, and this necessity is supplied by the 18!:50 these States contained a population of 1,767,697, of which farmers. 179,121 were agriculturists, being increases in 1890 of 1,259,916 The more prosperous the mining industry, the more prosper in population and 145,908 in the number of agriculturists, or an ous is agriculture, the products of which find immediate and increase in the latter class of 44.89 per cent. ~ well-paid markets. The precious metals, produced by the brave The following is a comparative table showing by divisions the and h ardy miners from the bowels of the e:Irth, furnish employ increases in population and in the number of agriculturists, ap ment to the artisans and laborers engaged in the great allied in proximately, in 1890 and 1880, with percentages of increase in dustries. The transport3tion of ores supplies freights to the the number of persons engaged in agricultur l pursuits: transcontinental railroad carriers and trunk lines. It must be Comparativ8 table showing, bg divisions, inc1>ease in PQJ!!Ilat~on, and in tke num considered, also, in reviewing these conditions, that agriculture ber of agriculturists. approximately, 1890 and 1880, wtlh percentag8 of in"1·ease in the Western division is confronted with many difficulties. In in number of agriculturists. · most localities irrigation is absolutely necessary, and to irrigate requires the employment of large capital for the construction Population. Number otag- crlenas- e and maintenance of water-way ditches, which give employment I In· riculturists. In- of ao-- Divisions. to laborers who, in turn, must be supplied with the necessaries crease. crease. ric;tl- of life at the hands o.f the farmer. ------l--18_90_._ 1880. ---~~---ttn·ists. A REMARKA.DLE TRIBUTE TO THE WEALTH OF THE MI:l\'ING REGION FROM THE PEN OF HON. JOSEPH l\TIMMO, JR.. L.~TE CHIEF OF THE BUREAU OF Per ct. STATISTICS, UNITED STATES TREASURY DEPARTMENT. Nm·th Atlan~C- 17, 4~1, 545 14,507,407 2,894,1381, ~. 8921,039,601 186,29! 15.19 In this connection, Mr. President, I take the liberty of send South AtlantiC_ 8, 857,920 7, 597, 19711,260,723 1 892, 696 1,618, 391 2i4, 305 14. 50 1 1 1 ing to the Secretary's desk and request to h ave read a note North CentraL_ 22,362,27917,364,111 14,998,168 3, 555, 018~, 716,810 838,208 23.53 South CentraL_ 10, 972, 89~1 8, 919, 371 2. ?~3, 522 2, 6!~· 180 2, 116, 570 493-, 610 18. 90 worthy communication from Ron. Joseph Nimmo, jr., published Western------. 3,0:?7,6lj 1,767,697!1,259,916 3do,U...'>9 179,121 145,908 44.89 in the Washtngton Post of September 15, last. It is h ardly nec 1 essary to stat-e that Mr. Nimmo was for many years chief of the 1\ir. ALLEN. With the consent of the Senator from Montana, Bureau of Statistics under the Treasury Department, and is rec I desire to suggest the absence of a quorum. og-nized as sts.ndard authority, both in the United States and The PRESIDING OFFICER. The suggestion having been abroad, on many of .the questions entering into or allied with the made that the Senate is without a quorum, the r oll of the Sen science of political economy. Mr. Nimmo's discussion of the ate will be called. particular relations existing between the mining and agricul The Secretary called the roll, and the following Senators an tural interests of the Western division and the lnt er~ts of the swel·ed. their names: common country is stated with most commendable vigor and cor to rectness. Allen, Dixon, McPherson, Shoup, The PRESIDING OFFICER. Without objection, the Secre Allison, Dolph, Manderson, Smith, Bate, Dubois, Martin, Stewart, tary will read as requested. Berry, Frye, Mills, Teller, The Secretary read as follows: Butler, GalllngeJ.', Morgan, Vest, Ca1!ery, Gorman, Pa.lmer, Voorhees, THE SILVER QUESTION-CERTAIN COMMERCIAL CONSIDERATIONS INVOLVED Call Gray, Pel!er, Walmall, WHICH HAVE DEEN OVERLOOKED. Ca.n{den, Harris, Perkius, Washburn, EDITOR PosT: There are certain commerClal considerations closely related Cameron, Hawley, Pettigrew, White, Ca.l. to the present discussion of the sih-er question and having an important Carey, Higgins, Platt, Wolcott. bearing upon the just and beneficent settle!:::ent of that question, but which Coke, Jones, Ark. Power, dm·ing the present discussion appear to have been ovel'looked. Cullom, Lodge, Roach, 'l'h.e sliver product of the United States, with the small exception of about 1 per cent, is the product of the arid region, an area extending from the Da>is, McMillan, Sherman, western parts of the Dakotas, Nebraska, Kansas, and Texas at the East to The PRESIDING OFFICER. Forty-nine Senators have an the Coast Range and the Sierra Nevada Range on the Pacific Slope. The dimensions of this area are about 1,200 miles from north to south and 1,300 swered to their names. A quorum of the Senate is present. from east to west. Its chief mineral products are gold, silver, copper, and Mr. POWER. The figures in the foregoing table reveal some lead-almost all of which is exported to States outsfde of that region. very interesting statistical facts. The population of the North The agriculture of the arid region, in so far as relates to the culture of the soil, is dependent entirely upon irrigation. But irrigation, although profit and South Atlantic divisions, or 'Atlantic coast States, aggre able, involves large expenditures. The arid region is, however, a vast and gates 26,259,465, while that of the North and South, Central and exceedingly productive pastoral region, yielding an enormous annual ex portable product of horses, cattle, sheep. and wool. In consequence of the Western divisions, lying west of the Apalachian range, aggre iarge preponderance of the mining and pastoral interests of this vast area gates 36,362,785, or an excess of 10,103,320. The number of per over those of 2.. gricu lture, every State and Territory of the arid region is a sons, adult ma.les,engaged in agricultural pursuits in the United large importer ot. grain, hay, lumber, vegetables, provisions, and bread stuffs. Machinery and general merchaudise are also imported in largo S tates, aggregates 9,()08,815, of which 3,118,588arelocated in the quantities from other parts of the country. The total annual value of such North and South Atlantic divisions, and 6,490,227 west of the imports is abolit !!:WO.OOO,OOO. Ap:l.lachi.an range, or an excess of 3,371,639 of the latter over tho The total value of the annua.l exports of tho arid region amounts to about $240,000,000, of which silver stands at the head, amounting to about$75,000,000. former. These figures show th:1t, while the excess of populn. But sil>er mining sustains to the commerce and productive industries of tion of the entire West over the East is less than three-fifths, the the arld region relations far transcending its arithmetical proportion of the excess of persons engaged there in agricultural pursuits is more value of the total surplus products of that region. Silver is the primary source of the commerce, agriculture, and industrial prosperity of that vast than double, or over 100 per cent. area. Strike it down and you paralyze the business interests of that whole The table also shows that while the gross percentage of in area. crease in 1890 over 1880 in the number of persons engaged in The total value of the commerce of the arid region with the other States of the country, including imports, $200,000,000, and exports, $::!40,000,000, amounts agriculture in the North and South Atlantic divisions aggre to the enormous sum of about !il40,000,000 annually. This exceeds by $100,- gates 29.69 per c ent, the increase in the North and South Cen 000,000 the total value of the combined commerce of the United States with tral and Western divisions aggregates 87 .32 per cent, or an ex Mexico, Central America, South America, and the West India islands. Thi. commerce centers at St. Paul, Milwaukee, Chicago, St. Louis, Boston, New cess of about 66 per cent. The remarkable fact, however, is ex York, Philadelphia, and many other points at the East. hibited that the Western division, which comprises· all the Stop for a moment a.nd con'>ider the enormous import of the o facts. For mining States and Territories, increased in the number of per several years the country has been deeply concerned about reciprocity with the countries of Central and South America and the West Indies, and about sons engaged in agricultural pursuits from 179,121 in 1880 to the project of au intercontinental railro.ad to conne-n country which susta.ina a much larger commercial relation to the rest, and which is bound to us by the most intimate relations of transporta crea.se in the number of agriculturists of the great North and tionfacillties-six transcontinental ratlroads, with numerous branches ex South Atlantic divisions and 2.46 per cent more than the aggre tending into every part of a region p~opled by fellow-countrymen, who are gated percentage increase of the immen ~e North and South Cen alive to eYery common impulse of our splendid civilization. Besides, the present cleYelopment of the resom·ces or that area is small in tral divisions, the great fa,rming belt of the United Shtes. comparison with its evident possibilities. The migll.ty empires of Nineveh In 1880, Montanahad but4,513persons engaged in agriculture. and Babylonia were reared under just such conditi01.s as prevail in this vast In 1 90, this number had increased to 15,230. In Wyoming the Rocky Mountain region-an arid region in which agriculture is carried on 1893. CONGRESSIONAL RECORD-SENATE. 2067 by means of artificial irrigation. The same conditions characterize India THE BULLS ~"']) BEARS OF WALL STBEET-WHAT CURRENCY IS TO TAKE to-day, with its popUlation of 250,000,000. THE PLACE OF SILVER? It is not my purpose at the present time to enter upon the discussion of the silver question, but I do want to say a word ~favor of a great a.ndprom I have wondered, Mr. President, whether the money magnates i.sing branch of our internal commerce, and in favor o! t,he people of the o.f the East ever reflect-ed seriously upon the fearful consequences Rocky "Mountain States and Territories and-of the Pacific slope, who, during I the last thirty years, by their own strong arms, brave hearts.· and indomita likely. to retroact upon themselves should they be successful in ble enterprise have rescued a vast territory from hostile Indian tribes, over demonetizing silver. Do they $Uppose that the great cities of co:m.e what appeared to be insuperable natural obstacles, and subdued to Boston, New York, Philadelphia, and Baltimore can live upon the arts of civihzation an area which constitutes abouttwo·fifths of the en tire territory of the United States, exclusive of Alaska. and consume themselves for all time, free from and independently Three times I have in person investigated the resources of this vast re of the great producing areas of the West? What market will gion, and I feel an intense interest in its prosperity. they have for their manufactures when the demand for them JOSEPH NIMMO, JR. W A.SHINGTON, September 13. ceases or is largely restricted in the West because of the lack of or diminution in the purchasing power? With no paying market SOME SIGNIFICANT ILLUSTRATIONS OF THD TRUTH AND JUSTICE OF MR. NIMMO'S VIEWS CONCERNING THE VAST INDUSTRIES OF THE MINING for Eastern manufactures, the factories must shut down and the REGION. operatives, male and female, be left to suffer privation. Ships :Mr. POWER. It must not be supposed, Mr. President, that would rot at their wharves, and all commerce lie prone in the the repre.:;c:tatives of the mining States are here solely in the great cities were they: cut off from the business revenue which interest of mining industries. On the contrary, we claim to rep flows to them from the West. The West is the great feeder of resent in part all of the great industries of our country, the lead the East, but the East7 which has ridden roughshod over the ing one being, beyond question, that of agriculture. Our region, West for so many years and reveled in the cruel abuse of its as suggested by Mr.Nimmo: isavastand exceedingly productive money power, seems blind to the fact that it is surely" killing pastoral territory, producing ~n enormous annual exportable the goose that lays the golden egg." product of horses, cattle, sheep: and wool, and the commerce in What is to be the result in the East from the depreciation in these articlo3 is immense. Every branch, avenue and channel railway securities caused by crippling the railroad carriers of of the other industries are so intimately connected with the pro the West? The" bulls" and "bears" of Wall street may aamble duction and use of silver that, were silver demonetized and de and hold high carnival in the Stock Exchange, but th:actual priYed of its purchasing power as a money metal, widespread possessors of the stocks and bonds, the capitalists of the East, and ruin would surely follow. their domestic and foreign clients, will come to understand in Mr. Nimmo states but a self-evident proposition, a simple due time that the umbilical cord binding the commerce of the demonstration which every intelligent person ought to compre East with thatof the West cannot be severed without the greater hend without effort, and which Senators should deeply con injury resulting to the East. The money centers are treading sidel· before lending themselves to the assassination of silver, that on dangerous ground when theyseekto establish the single gold "silver mining sustains to the commerce and productive indus st!lndard and thrust silver aside. True, such action may prac tries of the ~rid region relations far transcending its arithmet tically bankrupt a territory comprising three-fifths of the area ical proportion oE the value of the total surplus products of that of the United States, and paralyze the agricultural industry in region. Silver is the primary source of t)le commerce, agricul which 5{) percent of our adult ma1epopulationisemployed. But ture, and industrial prosperity of that vast area. Strike it can this ruin be a~complished without involving the whole down," says Mr. Nimmo, "and you paralyze the business inter country? What divinity J:ledges the gold-standard localities that ests of that whole are:1." they may escape the whirlwind and the earthquake? I g o further than Mr. Nimmo, because I appreciate from prac What is to take the place ofsiher when deprived of its money tical exnerience that, should the business interests of the West function? What currency is to supply its pla.ce in the circulat ern division unhappily become thus paralyzed, the business in ing medium? Can our opponents suggest something? !pause terests of the rest of the country would receive the greater for an intelligent reply. Surely it i not contemplated to aaain shock, especially in and about Chicago, Boston, New York, create a currency famine. It is admitted on all sides that ;ven PhiladelphiEL B altimore and other metropoles, from which re with a gold standard a gold circulation is absolutely impossible. co>ory would proba bly be problematic, certHinly very remote. Why? Because the total world's production of gold for the past Det:wh the silver keystone which holds together the arch of hundred years amounts to only $5,633,908,00(). Of this amount pro3per ity of the territory west of the Missouri and west of $3,711,845,000 only are in circulation, leaving gold to the value _the Mississippi at the intersection of the two rivers, and the of $1,922,063~000 usad in the arts or destroyed, being about 34 per measure of ruin which must follow is beyond comprehension. cent of the gross total production of gold subtracted from "the Permit me, Mr. President, to cite a few significant illustrations. circulating medium. · The total railroad mileage of the United Stat2s, as reproduced In mining for silver it is estimated that about 33 per cent of from Poor's Manual in the Sts.tistical Abstract for 1892, is gold is produced. In Montana it is 40per cent. Now, if the in sued by the Bureau of Statistics, is given at 170,601.18 miles.· dustry of mining for silver be checked or destroyed, it checks The total capital and funded debt, stock and bonds, of these rail or destroys r alatively the production of gold to the percenhge ways in 1891, is estimated b.v the s::tme authority to aggregate named. The supply of gold, of course, is limited, and its use in $9,930,572,487. The gross earnings of operated roads are esti the arts will continue, possibly to greater extent than before. mated at $1,125,534,815, the freight earnings being $754,185,910. Hence with this drain upon g·old, something must take its place. The total estimated investment of capital in the railroads of the What shall it be? Our opponents say it shall not be silver. Gulf and Mississippi Stg,tes, th.9 South western States, theNorth Shall it be paper, coined from Go>ernment or State bonds? Shall western Shtes, and Pacific States, is$3,614,919,276, or something there come another irruption of "wild cat" money and counter more than one-third of the total" capital investment in the entire feit bank-note detectors, to be carried in the pockets of the farmer railroad property of the United States. The value of equipment and artisan, and a return to the antebellum times when no one is estimated at about $3,000,000,000. The railroad mileage in knewwhat the val.ue of a bank note might befromonedaytothe these St:ttes is estimated at 87,674.26 miles, all of which is util other? And yet it is proposed to demonetize o1· take from the ized for the transportation of freight and passengers to and from circulation over one-half of its medium of currency. the West, and intimately connected with the agricultural, pas THE PEOPLE OF MO:NT.A.NA AND. WHAT THEY HAVE ACCOMPLISHED-THE toral, mining, and kindred industries of these sections. RESOURCES OF MONTANA AND WHAT HAS BEEN CONTRIBUTED TO THE What has been the result to these railroad carriers as a con INCREMENT OF NATIONAL WEALTH. sequence of the low price of agricultural products, the deprecia Owing to circumstances not necessary to explain on this occ:l. tion in the value of silver and the associated metals, and the fall sion it so happens, Mr. President, that I temporarily represent in the price of cotton? The business of the great continentgJ on the floor of the Senate, singly and alone. the interests of the roads and their auxiliaries and feeders has fallen off in such people of the flourishing State of Montana, and therefore I speak large measure as not only to cripple them financially, but caused particularly fOl' the welfare of my fellow-citizens of that State, the discharge of thousands of employes with consequent suffer although none the less mindful of the welfare of the common ing and distress to them and their families. The industry rep country. resented by the transporhtion lines is suffering in all directions, Tlie people of Mont<:ma are bra>e, conscientious, intelligent, en and when the wheels of railway cars cease to turn, the com t erprising, and patriotic7 and in all that goes to make up the sum .· mercial world, embracing the outer as well as the tnter commerce total of exemplary American citizenship they are the peers of of the country becomes embargoed. This condition was illus any in the land. If any person imagines that the people I have trated with immense financial loss and distress to individuals, the honor to represent do not fully align with the advanced in communities, and the common country on the occasion of the telligence of the age, or are in anywise inferior in the essentials railroad strike some few years since. If the losses incident to a of education, culture, and integrity to the people inhabiting the mere labor strike inflicted such an am-ount of injury, what would older settlements of the East~ a brief sojourn in our mountains be the effect should the great West, with her vast agricultural~ and valleys will soon operate to undeceive him. Although some mineral, and other resources, be dri-ven to the verge of bank- fo our New England friends would have it otherwise, I venture ruP,tcy by the domination of the Eastern money power? - to assert that the int-elligence and education of the American ' 2068 CONGRESSIONAL RECORD-SENATE. OCTOBER 3, Republic are not restricted by any means to the eastern money industries of Montana alone aggregate the immense sum of $70,- centers. The people of Montana, in common with their fellow 425,626, outside of all other industries, agricultural, manufac citizens inhabiting the great "\Vestern and Southwestern empire, turing, and otherwise. comprehend with as much acuteness as those abiding East of the It may be proper to remark, when silver is alluded to in con Alleghanies the importmce and proprieties underlying opr na nection with the mining interests of the West, the word" sil tional legislation, and the effect, for good or ill, of such legisla ver" comprehends all the other associated metals, since in our tion upon thecounky. production of silver, gold, copper, and lead are component parts Mr. President, the people of Montma, almost without excep of silver mining. tion, whether engaged in mining, agriculture, or other pursuits, STATISTICS OF THE PRODUCTION OF MINERALS FROM THE MINING STATES are utterly hostile to <:my legislation which may operate to dis AND TERRITORIES. credit silver or exile it from its long possessed vantage as a I will include in my remarks certain official tables certified by money metal accredited with full purchasing and debt-paying the Acting Director of the Mint, showing the approximate dis function. They h ave arrived at this conclusion neither hastily tribution, by producing States and Territories, of the produc nor inconsiderately, but base their views u-pon reason and justice. tion of gold and silver in the United States for the calendar year They feel, as do the people of the vast area lying west of the 1892; also the production of copper in the United States for the MiEsissippi and Missouri, that no greater national crime can be years 1890, 1891, and 1892. They are as follows: committed than the assassination of silver. I am here sharing TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, in and voicing their sentiments on this great issue, and I would Washington, IJ. a., September 22, 1893 be recalcitrant did I omit the performance of any duty within SIR: Herewith are inclosed statements of the production of gold and sil ver by States for the year 1892, and world's produetion of gold and silver for my feeble capacity which might operate to defeat the passage the last century. Also the production of copper in t he United States for of the pending bill. the years 1890, 1891, and 1892, as estimate:! by R. P. Rothwell (The Mineral When Montana was provided with a Territorial government Industry, its Statistics, T echnology, ana Trade for 18J2. pages lO'i-165), ed itor En ineering and Mining Journal. in 1864, her boundaries carved out of the then Territory of Idaho, Respectfully yours, it was practic.llly an unpenetrated wilderness, inhabited by hos R. E. PRESTON. tile tribes of Indians and inaccessible anywhere by railroad. .A~ting ])i1•ector of the .Mint. Thither emigrated the hardy sons of America, pioneers and Hon. T. C. POWER, United States Senate. pathfinders, following the" Star of Empire" which takes its way .App1·oximate distribution by prodttc;ng States and 1'e rritories of the product of gold and silver in the United Statea j'or the calendar year 1892, as estimated by westward, all seeking· to better their condition, eshblish homes, the ])i1•ector of the Mint. and thus advance the general prosperity of the nation. The early settlers of this region took their lives in their hands when Gold. Silver. they entered this then unknown land, for the savages were State or Territcry. Total Fine Fine Coining value. bloody-minded and relentless, and at that period -the military ounces. Value. ounces. value. garrisons were few and remote and afforded little or no protec I tion from Indian incursion. Alaska_------______48,375 $1,000,000 8, 000 $10,343 $1 , 010,343 The are3. of Mont::ma is 146,080 square miles, equivalent to an Arizona ______---· 51,761 1, 070,000 1,062, 2'20 l, 373,375 2,443, 375 5&0, 500 acreage of 93,491!200 acres, being a Territory 8,370 square miles, ColoradoCalifornia ______-----.---- 12,000,000 3cO,ooo 465,455 12,465, 455 larger than tho entire are.1s of the six New England States, and 256,387 5,300,000 ZilOOO,~ 31 , 030,303 36,330,303 Georgia ______4,583 94.734 517 95,251 the States of New York, New Jersey, Dalaware and Maryland Ida ho . ___ ------83,271 1, 721 , 3e4 3, 16!, 269 4,091,176 5,812,540 combined. It is therefore easily perceived that the settlement Michig::m ------3, 386 70,000 60,000 77,576 147, 576 of such a vast territory must have been attended with great Montana_--~------139,871 2,891, 386 17,350,000 22,432,323 25,323,709 Nevada------76,021 1, 571,500 2,244,000 2, 901,333 4, 472,833 • difficulties. The first census taken in 1870 showed a population New Mexico.---·---- 45,956 950, oro 1, 075,000 1, 389,899 :!, 339,899 of 20,595. In 1 80, the population had increased nearly 48 per North Carolina __ --·_ 3,800 78,560 9,000 11,636 90,1911 cent. In 1890, after the admission of Montana as a State in the Oregon ------67,725 1, 400,000 50,00:> 64,646 1, 464, 64( South Carolina ______5,968 1:1.~, 365 400 517 123,882 Union, notwithstanding the immense physical obstacles and em South Dakota ______178,987 3, 700, ()()() 60, 000 77,576 3, 777,576 ...... _____ barrassing conditions incident to the settlement of a semi-arid 'l.'exasUtah ______·------310,000 400,808 400,808 and mountainous region, the population had increased 70 per 31,936 660,175 8, 100,000 10,4 7~, 7'2:7 11,132,902 Washington------18, 0'il 373.561 150,000 193,939 567,500 cent. Alabama ....•.•.•.... Let us consider what American enterprise has accomplished Maryland ______1 in a eveloping the increment of national wealth from out the 500 10,336 1,000 1,293 11 , 629 barren wilds of Montana. The city of Butte, situated on the Ver~t,~;~~e~-==:======mont ______west side of the Rockies, is the largest mining center in the Wyoming ______J world, and has risen from out the barren slopes of a mountain TotaL ______range into a flourishing city of about 35,000 people, all this ac 1, 597,098 33,014,981 1 58,004,289 74, 9~ · 5, 442 108,010, 423 complished within the past dec of the fact that he has been giving us some very important in not for the gold they could not work that mine to-day, and the formation, whether he is able to inform the Senate what is the gold produced an:i sold is credited the same as the silver. That approximate cost of mining silver per ton, or per hundred pounds, is more forcibly shown by the Granite Mounta.in and Bimetallic or per hundred ounces, as the case may be? There is a good Company, which are the largest silver mffi:es in the country. deal of interest manifesttid in the country generally as to what They have no gold, and consequently they can not run, and have silver costs the people who produce it. I think it is a very im closed down. portant matter, and should be pleased to hear what the Senator I have a statement here from another mine within 15 miles has to say about it. of Helena, called the "Montana Limited," owned in London, Mr. POWER. Mr. President, some time since I wrote to Mr. which presents definitely the figures covering the amount they L. M. Rumsey, president of the Granite Mountain Mining Com have expended in the last ten years for labor and supplies, amount pany, to inform me officially, as the president of the company, how ing to$6,519,000. These statements are officially published semi much silverthatcompanyproducedand what it cost per ounce to annually by their board in London. Their production was, dur produce it. The vice-president, Mr. Paul Fusz, in the absence of ing the last ten years, 302,000 ounces of gold which, figured at Mr. Rumsey, informedme that they produced altogether up to $18, would be $5,440,000. Their silver supply was a ' little less the 1st of July, 1893, 22,024,178 ounces of silver, and from the than 3,000,000 ounces. Senators can see that the gold, figuring Bimet1llic Mine 6,618,170.94 ounces. I will readfrom his letter. the value, was nearly double. The manager of the company did He says: not tell me what the silver cost an ounce. He could not very The cost of production is, as near as we can compute it, a little over 80 well say what it cost, and he does not state it. He merely states cents per ounce. No charge is included for interest or cost of plant. they are now just barely making expenses on account of silver being low. The gold product is about 55 percent more than the That letter is dated July 12, 1893. Then I have a letter dated silver, and the gold carries them through, so that they can go St. Louis, September 28, 1893, from Mr. Rumsey, the president on and work their mine. of th'3 company, in which he says: When silver was down to 60 cents an ounce Mr. R. T. Bayliss, I have just returned to St. Louis, and am now for the first time able to the manager, told me if the price did not advance, his company answer your inquiry as to the cost per ounce of fine silver taken from the Granite Mountain Mine of Montana. The company's books show that dur would have to close their mine. ing the year, July 31, 1892, to July 31, 1893, this company produced 1,349,270 Mr. McPHERSON. May I ask the Senator a single question, ounces of fine silver at a net cost to the company of 93.422 per fine ounce. as he is an expert on this subject? I was not in when he was I will ask the Secretary to read the letter of the general man referring to it. I ask what he estimates to be the cost per ounce ager of the Lexington Mine at Butte City, Montana, which is for the production of silver in Montana? owned in Paris, France. The letter is brief and shows the amount Mr. POWER. I havegiven herethecostin twoof the largest of money and the proportion of that amount in labor expended mines in the State, one the Lexington and the other the Granite in silver mining, and also the cost of producing silver per ounce. Mountain mine; the latter is owned in St. Louis. Senators here The VICE-PRESIDENT. The Secretary will read as re- know of, and have heard of it, as it has been quoted in this quested. · Chamber. It has been circulated that silver did not cost more The Secretary read as follows: than 20 cents an ounce. Mr. Rumsey gives officially the cost last year at 93.422. SOCIET~ ANONYME DES MINES DE LEXINGTON, Mr. McPHERSON. If. I am not interfering with the Sena Butte City, Mont., July 25, 1893. tov's statement, at the present ratio of 16 to 1 but little profit DEAR Sm: The statistics regarding the Lexington Company's operations were as follows: , would be left to the silver-miner in the production of silver, and The initial capital investment of the Lexington Company in purchase of if we were to proceed to free coinage, under the terms of the property, working plant, and preliminaries of organization was about $1,M50,- Democratic platform, which is to mako silver and gold intrin 000. To pay 6 per cent interest only and sinking fund on the investment for ten years' life of the enterprise, the an.nual .net earni.ngs would have to be sically and exchangeably equal and bring them into agreement, a.bout$296,000. it would require to-day a ratio of 28 to 1. Then, I understa.nd The expe.nditures of the Lexington Company in te.n years of mini.ng and by the Senator's statement, the mines would necessarily be milling, exclusive ot the original investment, have been about $6,140,000, not counting hundreds ot minor items which are inseparable from the business. closed. , Forty-six per cent of this expenditure was paid tor labor directly, mostly in Mr. POWER. W_ith fair legislation for silver the mines will Butte. The other 54 per cent has bet'n paid for supplies, etc., at least 27 per not close; but pass the pending bill, demonetize silver, and the cent of which value also went to labor indirectly. Directly and indirectly, therefore, this enterprise has contributed about 73 per cent of its entire ex mines will absolutely close. From the effects of fair legislation penditures to labor, or about $4,500,000 in ten years. they will not close. We have produced in that time 6,700,000 ounces of sliver, and the average Mr. McPHERSON. What does the Senator call "fair legis- cost for allllas been 92 cents per ounce. Even last year (1892) the average cost per ounce was 90 cents. · lation"? But for the fot·tunate occurrence of gold in the ore in considerable quan Mr. POWER. To recognize silver. tity, the bl1siness would evidently have bee.n unprofitable. As it is, a low in- Mr. McPHERSON. How? terest only was realized on the investment. . The Lexington enterprise fairly presents a normal example of silver min· Mr. POWER. Recognize it by free coinage. ing. It belongs neither to the phenomenal bonanzas nor to the discourag Mr. McPHERSON. Upon what ratio i ing failures. The belief is commo.n that it has been extremelr profitable, Mr. POWER. Upon the ratio of 16 to 1 absolutely. We do which illustrates the superficiality with which such things are JUdged. Yours, truly, not want any change of ratio. A change of ratio is a scheme CHAS. C. RUGER, that would necessitate the recoinageof all our silver circulation, Generat Manager. consequently not feasible. Senator T. C. POWER, Helena. Mont. THE GOLD STANDARD COHORTS, FOREIGN AND DOMESTIC, THE VERY BAR· Mr. POWER. The Lexington mine is being operated now, BARIANS OF THE NINETEENTH CENTURY, as the general manager of the company states, on account of The area of the territory west of the Missouri and the one hun gold being associated with silver. The Granite Mountain and dredth parallelaggregates1,826,040 square miles, as against 1,197,- its associat-e, the Bimetallic mine, are two of the greatest pro 630 square miles comprising the area of the States eas~ of that ducing mines that have been discovered in the Northwest. line, a difference in favor of the western portion of 628,410 square These mines are not in operation now; they had to close down. miles. This computation does not include the area of Alaska. These two mining industries, the Granite Mountain and Lexing It would thus seem, in view of the proposed legislation, that ton, represent about the average large mines in Montana. I an area west of the one hundredth meridian, exceeding by 628,- could mention a number of other mines if it did not take too 410 square miles that of the territory east of that parallel, or an much time. excess of over 50 per cent, is sought to be crushed and laid prone Mr. FRYE. In these reports iR not the entire cost of the pro in all of its material industries by the domination of the money duction of both silver and gold charged to the production of centers of New England and the Middle States, with English silver? allies reenforcing them. Mr. POWER. No, sir. I have not referred to the more productive industries of other Mr. FRYE. Whenitissaid thatsilvercosts92centsanounce, States and Territories comprised within the area west of the one have they not included in that all the expenditures which they hundredth meridian, which have been brought to the attention of have made when, in making those expenditures, they have pro the Senate far more ably than is possible for me to do. But, Mr. duced a certain amount of gold? President, we stand together as a solid phalanx against the con Mr. POWER. They credit the proceeds of the gold the same spiracy to demonetize silver, upon which metal depend nearly as they do the proceeds of the silver in the net receipts. It is all the commerce and prosperity of' that vast region. Protest subtracted from the expenditure in the profits. I know that is ing against the crusade of the East against the West, we rally the situation in the Lexington mine, because the shtements on a common center to protect our homes and firesides and the are published in Paris, and that is the reason I have been given herit·1ge of our children against the depredation of the cohorts permission to use this information. These statements come out of the gold standard, foreign and domestic-the very barbarians se:~:liannually. The manager of the company says if it were of the nineteenth century. 2070 OONGRESSIONAL RECORD-SENATE. OCTOBER '3, .xHE 1 'D"EV.L1LOP.MENT INWARD "-DA.RKE!l. .AMERICA MAD:E LIGHT .BY !£HE • d t " h be tr db EX-SOLDIERS, FEDERAL AND CONFEDERATE-WHAT A.BRARAM LINCOLN ill US ~IeS av.e . en prO~ ate fJ' this SenseleSS, Cruel Warfn.l'e WROTE .uoUT THE MINER . upon silver, and all the ~red ;occupatio~, commercial and ag- Mr. President, when the w-ar fortbepresarvat'i-on of the Union rloultural, must suff-er m :relative proport10n. When the pick had beenfoughttoconclusion,thesurvivlngsoldiersofbothFed- and spade·of the miner 'cease to -perfonn their function· when -eral and Confederate armies returned t~ their homes to com- the husbandman has no market fOl" the foodc which his t which are interested in this question are awaiting our action. regar-ded as the property of the Government1 and it is not com Is it not due, then, to our-own country and to the world that this prehended in any of the schemes of free coinage which have . contest shall end, that the policy of the great Ame1·ican Repub been suggested. lic shall be -determined 'IDld fixed, and -that the business of the Free ·coinage., as I understand it~ is a privilege given to the .country may adapt itsalf to the conditions whi-ch will follow .any private owner of bullion, not to the Government alGne. There positive action on our part? peal o£ this law, therefore, in no wise aff-ects this right. It It is important. too, to the suffering interests -of the country. would nelther hinder nor advance free coinage in the slightest I h~ve listened withgreatintere.st to the arguments of Senators degree if it were repealed. The whole effect would be that the on the question whether the Sherman law has or has not pro bullion now in possession of the Gov-ernment would remain its duced the business difficulties and embarrassments which we property until Congress prescribed some method fo1· .disposing have aU f.elt nnd which have been so eloquently described here. of it. Then, inasmuch as it does not affect free coina,ge one way It may be that it is true that under this law the continued pur or the other, as it does n.ot establish or look to the establishment chases of silver by the United States Governmenthave in fact o£ any policy with reference to silver, why should its repeal be produced, or are in fact producing, these sorrowful results. If !l.'esisted? that is not true, or if it istrue,-oughtwenotto determine the-ques It has been said that the Sherman law is the last law which tion within a reasonable time? Ought we not to end the strug recognizes silver. Mr~ President, that law recognizes silver as gle and let th-ose who believe that th-e continuance of the exist a m-ere commodity, simply as it does everything else. It recog enc3 of the Sherman law contributes to public prosperity have nizes the gold standard, because it directs the Secretary of the an oppo1·tunity of testing the valu-e uf their opinion? If the op Treasury to buy silver bullion at -a price to be fixed, referring of posite theory be true, as claimed in high quarters, let the coun course to the gold price. It does not dignify it as a coinage try have th-e benefit of the relieL I have felt that this matter m-etal-I mean that part-Of the law which we propose to repeal. lies at the foundation of .any futher rational discussion of this By the repeal· of that law we simply cease to treat .silver as a question: commodity1 and leave the United States in possession of that The Senator from Idaho [Mr. DUBOIS]-a young gentleman which it has bought, and leave the mass of the silver outside of whom I esteem highly, because I knew and esteemed his father the T1·easury subject to the future control of Congress. I do proposes that we shall postpone this question to the distant fut1,1re. not understand that Senators oppose the repeal of the Sherman Would that afford any relief? The country would still be anxious law upon the ground that it either hinders or advances free coin and earnest and troubled about the .final result. That will do no age. good. I understand that Senators who -Oppose this measure do so as What, then, Mr. President, ought the Senate to do? It ought a means of compelling submission to free coinage. I insist that to act; it ought to vote. The Senator from Indiana [Mr. TuR no Senator has advocated that th-e retention of this law on the PIE], who is always so perspicuous and clear, the other day said statute book aids free -coinage pe'r se, .and if it were to stand that this is preeminently a deliberative body. upon the statute book a hundred years it would neve1· aid free Deliberation may result in wisdom, at least it affords a means coinage. I understand its retention is insisted upon as a means of becoming wise if we wisely deliberate; but the Senate has some of compelling submission to something else. other function than merely to deliberate1 merely to talk~ merely Mr. LINDSAY. Coercion. to think. The Constitution contemplates that at some time or Mr. PALMER. Yes, coercion; I take it that is the word4 I -other it will act, vote. Will that time ever come? If the minor do not apply that to Senators from the silver States, for I un ity-Idonotknow that! ought to usethatterm,iorido not know derstand the proposition of the free coinage Senator_s is simply who compose the minority-if it be true that any number of this: This law in itself affords no advantage to us, but whatever members of this body have the right, the undisputed and un may be its effect1 the idea is that this law shall stand until thQse censurable right of debate ait libitum, then it is not worth while who ask its repeal submit to the passage .of .something else. to adopt the suggestion of the Senator from Idaho to postpone Mr. BUTLER. If the Senator will permit me to interrupt ' the .consideration of this question for three months, because if him a moment, as I happen to be one of those who are opposed / the whole mission of the Senate is to deliberate and not to vote, to the unconditicna.l repeal of the Sherman law, I should be th-ere are enough here, in all conscience, for that pm·pose. very thankful if he wonld indicat-e upon what he bases the alle Mr. President, I say that if this debat-e is to continue indefi.- gation he made a few moments ago, that I myself insiste(l upon ., 2072 CONGRESSIONAL RECORD-SENATE. OCTOBER 3, the Sherman law remaining on the statute book in order to Mr. STEWART. May I answer that? It was partially remon coerce Congress to provide for the free coinage of silver. etized by the subsequent act, which bimetallists secured against Mr. PALMER. I have not referred particularly to the Sena the influence of the Administration and the entire gold party. tor from South Carolina. They got a little, and you are going to take that little f1·om us Mr. BUTLER. I understand that, but I am in the category now. to which the Senator refers, and I should be very glad if he Mr. PALMER. I demur to the conclusion. This law contains would state upon what authority he makes that statement. no vestige of bimetallism. This law as distinctly recognizes sil Mr. PALMER. I do it upon the ground that I have notheard ver as a commodity to be bought in the marke·t and to be priced the law defended upon any ground whatever by the few Sena, by something else as do the laws in relation to the purchase of tors who addressed themselves to the merits of the measure it coal or anything else. self. If the law can not be defended upon its own ground, why Mr. STEWART. Does it not recognize silver dollars as coin should it be kept upon the statute book, unless it is to accom dollars, as money, and is not the Secretary of the Treasury au plish some ulterior or incidental purpose? thorized to pay them out in redemptjon of these notes? Mr. BUTLER. I am not sure the Senator is right, so far as I Mr. PALMER. Yes, sir. am concerned, about the accomplh;hment of some ulterior pur Mr. STEWART. Is not that a fa{}t? pose; but I have ne\er intimated (in fact, I have never intimated Mr. PALMER. Does the pending bill affect or disturb that anything about it) that I would insist upon that statute remaining law? upon the statute book in order to compel the free coinage of Mr. STEWART. Certainly it does. silver. Mr. PALMER. It does not. \ M. PALMER. I think not; I really do not remember that I Mr. STEWART. Allow me to explain how it does. Cer have heard any Senator use that exact form of expression. tainly it does. I heard the Senator from Michigan LMr. Mc Mr. BUTLER. I do not think that statement has bean made MILLAN] make that mistake, and the Senator from Iowa [Mr. on the floor of the Senate. ALLISON] made a similar mistake. It is said that we have Mr. PAb~1ER. But I have found this to be true-- $4,000,000,000 of silver coin in the world doing duty as money. Mr. ALLEN. Will the Senator yield to me for a moment? The question was put to me if it was not doing duty as money, Mr. PALMER. Cert:1inly. . and I said it was. They contended that it would continue to do Mr. ALLEN. I am one of the persons who believe in the free duty as money notwithstanding you destroy the market value of and unlimited coinage of silver. the bullion. When you destroy the market value of bullion so that Mr. BUTLER. So do I. it is not a value money the same as gold is a value money, thenitis Mr. ALLEN. But the statement of the Senator from Illinois a fiat money purely, and depends upon gold, the standard money, is not altogether correct. for redemption, and you have simply added $4,000,0CO,OOO of Mr. PALMER. I will submit to correction. credit, which means a general collaps:~ in the world. It can not Mr. ALLEN. I am desirous myself of retaining the statute be floated as value money, as a standard money if you destroy until a better one can be obtained; bnt I am desirous more es the commercial value of the commodity. peci lly of retaining· it because it fu~·nishes a volume of money To any m an who knows anything about it, it is ridiculous to which we would not otherwise be able to obtain and which dis t 1lk about floating $4,000,000,000of purely fiat money. If it is sus places. necessarily, the use of gold and !ow.:rs the gold sttnd.1rd. tained, it ha9 to be redeemed in gold; and then you have loaded Mr. PALMER. The Senator belongs to a class to which I will upon gold not only the paper that is now based on both metals, but • refer in a moment. I am not able and I do not profess to analyze have loaded upon it $-!,000,000,000 of more credit, and you have the motives of Senators. I am sure that I have no disposition to the foundation entirely removed, so that the world will h . / 1893. CONGRESSIONAL RECORD-SENATE. 207:; Now for the answer. The Senator from Nebraska [Mr. ALLEN] Mr. PALMER. The Senator and I differ widely about several says that he favors the retention of this law upon the statute things. book because it makes it necessary to issue Treasury notes, and Mr. STEWART. I am glad of that. in that way the people are aided by increasing the quantum of Mr. PALMER. The Senator feels happy about it; but we dif the currency. It must be remembered that the whole super fer in this: I accept things as they are. structure of business credit in this country rests upon the United Mr. STEWART. And I accept laws as they are. States Treasury. I need not inquire whether that has been the Mr. PALMER. Well, that is good, too. I am gratified that result of wise legislation or whether it is good or evil fortune to the Senator is above all things a law-abiding man. thecountry; it is the case. The credit of the Government isthe Mr. STEWART. I am. superstructure upon which the entire business of this country Mr. PALMER. But I have lived long enough to know that rests. . facts are facts; and I say, sub:ject to correction by the Senator, Mr. STEWART. The Senator made a mist:tke, which I sup that the credit of all the issues of the United States rests upon pose he did not intend to make. The $331,000,000 of coin in the the belief and upon the declared policy of the Government that • Treasury-- they shall be I'edeemed in gold. Mr. PALMER. I believe I said 355,000,000. Mr. STEWART. When and where was that declared? Mr. STEWART. That coin in the Treasury answers for sil Mr. PALMER. The Senator from Delaware [Mr. GRAY] sug ver certificates, and there are about$170,000,000 more of uncoined gests to me in the act of 1890. I am suggesting that it is so de bullion. Now, how much of that coin and uncoined bullion in clared by the President and Secretary of the Treasury. the Treasury is not represented by paper in circulation? Mr. STEWART. I deny it. If you confine it to the Secre Mr. PALMER. I will come to the representation directly. tary of the Treasury I will admit that the Secretaries of the Mr. STEW ART. I believe there are only about $50,000,000 Treasury have declared almost anything for the past twenty for which the Government has not any paper out. I have been five years. trying to have that $50,000,000 coined; but all the balance is util Mr. PALMER. I am not interested in that. I am interested ized and in circulation now, and the circulation is pretty scarce. in saying that he declared it; that it is the policy of the Govern Mr. PALMER. I am speaking about the use of silver as sil ment; and that the credit of theae notes rests not upon the be ver, but I will not go to that point just at this moment. I un lief that silver is sufficient security. derstand from the Senator from NebrdSka [Mr. ALLEN] that Mr. STEWART. Let us then understand each other. Does while he does not favor the law itself, he proposes to retain it the Senator from Illinois maintain that the policy of the Govern until something better can be secured. Still he does value t he ment is the declaration of the Treasury Department, oris it the purchase of silver as a means of extending credit, increasing acts of Congress? Which is the policy? the currency, as the phraee is. Mr. PALMER. I mean that the policy of the Government is Now, I come to tlie point suggested by the Senator from Ne a fact, and it is not material for me to settle it now at this mo vada. It is a fact that if the Treasury notes issued in purchase ment. The time will come if I shall be 'called upon to defend of silver rested upon no other security than that which is afforded the lawfulness of the acts of the President or Secretary of the by the presence of the coined silver dollars in the Treasury, it Tre:1sury; and if I shall happen to believe them to be right and would depreciate very rapidly or very extensiveJy. proper I shall defend them. At present I am speaking of the Mr. STEWART. I ask the Senator why do not the silvercer facts, and the Senator, I think, admits that the facts are with tificfttes depreciate? There are $331,000,000 of them: and they me. are not even legal tender and they are redeemable only in silver. Mr. STEWART. Can the Senator point to any law where Do they depreciate? there bas been any discrimination between coined silver dollars Mr. PALMER. It is because it is known to be the policy of and coined gold dollars since 1888? the Government to redeem them in gold. Mr. PALMER. The Senator is familiarwith the act. Mr. STEWART. To redeem the silver certificates•in gold? Mr. STEWART. I am familiar with it; and thatclause refers Mr. PALMER. Yes, sir. to metal and not to the coin. It says "prep::tre the metal," and Mr. STEWART. Wh::tt declares it the policy? The statute the Administration would not do it. They would not do it for under which they are issued sa.ys they shall be redeemed in sil fear of rctising it to parity to-day, and they have been violating ver dollars. the statute. Mr. PALMER. I beg pardon. Mr. PALMER. As I am not engaged specially in defending Mr. STEW ART. But the statute declares the policy, I be the Administration to-day, and as I hope to confine myself as lieve. closely as I can to the real points in the discussion, I shall not Mr. PALMER. I am not discussing the statute, but I am as undertake to defend the President or the Secretary of the Treas serting as a fact (and I have no doubt the Senator will agree ury, nor to defend the policy. I simply declare as an indefensi with me) that all the issues of the Government are in practice ble fact, if the Senator chooses to have it so, that the policy of so redeemed. the Government is to r edeem all of its outstanding circulationin Mr. STEWART. I deny that that is the policy of the Gov gold; and it is the knowledge of that fact which gives to all the ernment. The policy of the Government is declared by law. If iss,: es of the Government their undoubted credit, so that they there is any other policy except the laws of Congress-acts will not in the slightest degree be affected by the repeal of the passed by Congress and signed by the President-if there is any act of 1890. policy independent of that, it is usurpation. There is only one Now, the Senator from Nebraska [Mr. ALLEN] seems not to policy. The policy is declared by law. We are living yet un realize that the steady, constant issue of Treasury notes in the der a government of law. purchase of silver which we do not need. and they being redeem Mr. PALMER. The Senator will satisfy me if he will a nothing is instituted to take its place. So we would have an ex- Mr. SHERMAN. !will give the state of the law. By the.act panding population and a contraction of the cm·rency. of 1890, and it is also in accordance with all the acts that pre- Mr. PALMER. I certainly am greatly obliged to the Senator ceded it in regard to legal tender, it is provided that these for hi.s wise discussion of abstract principles, but the substance Treasury notes "shall be a J.egal tender in payment of all debts, of his statement is a very practical one, that we ought to continue public and private, except where otherwise expressly stipulated to buy silver to furnish the people money. That I understand in the contract, and shall be receivable for customs, taxes, and to be the whole of his position, that we are to buy silver. all public dues, and when so received may be reissued." So they Mr. ALLEN. I will state to the Senator right now that I will are all put upon the same footing as legal tender for all purposes, vote in fifteen minutes to repeal th:_e act of 1~90 if he will show public and private. his hand upon the question of the coining of silver in the same In this same law there is the following declaration: repealing tiCt. It being the e s t::~oblished policy or the United States to maintain the two Mr. P ALM:ER. I think my word on t.ha t point would har dly metals on a parity with each o ther upon the present legal ratio, or such rat.io be .accepted. It would be of sufficient consideration for me to as may be provided by law. showmy hand, for I lead nopartyandhave no authority to speak There is no law which requires a particular form of currency for anyone else. to be redeemed in gold or in silver, but this law does give the Mr. ALLEN. The Senator will pardon me; I 6peak of gentle- Secrebry of the Treasury the right to pay either in gold or sil- men who entertain hi.s viewa on the question of repeal. ver. Either is a legal tender to the citizen or to the Govern- Mr. PALMER.. Mr. President, I maintain that if this con- ment. So there is the opti.on on the part of the Secretary of the tinual drain continues upon the Treasury for gold it will be nee- Treasury to pay these notes either in silver or gold, by the ex essary to authorize the Secretary of the Treasury to issue bonds press provision of the law. to buy gold to protect the Treasm7 notes. That is a r esult I • Bu.t one word more. It is therefore the general object of the deprecate very seriously. Go"/~rnment.to maintain all tl;le forms of money upon a parity, Mr. TELLER. I do not like to interrupt the Senator, but he and if there Is danger at any t1me or any fear that one will fall made a statement a few moments ago. a.nd I have been waiting below the other, the Secretary might1 in the exercise of the until he reached a point where I could interrupt him. discretion which is given to him by the law speci.fic ELlly, prefer Mr. PALMER. I am glad to be interrupted. to redeem those notes in gold rather than.silver to prevent any Mr. TELLER. He stated that all the money obligations of distrust as to the ability or willingness to maintain the two at the Government are redeemable in gold in law and in practice. p ar with each other. I think that is the state of law. , Mr. PALMER. I did not say in law. I have not discussed Mr. TELLER. I should like to ask the Senator from Ohio a that point. . question. Does he understand that that act authorizes the pay- Mr. TELLER. Not perhaps in law, but in practice. I want ment of silver certificat.es in gold? to inquire if the Senator now means to saythatthe Government Mr. SHERMAN. Well,Iratherthinknot. Ithinkthesilver of the United States ha.s at any time redeemed a silver certificate certificate is by its terms payable in silver; but the silver cer in gold or in any paper that is by the practice redeemable in tificate being a legal tender for the payment of all debts, public gold? and private, it ~an, by an indirect mode, be paid in greenbacks Mr. PALMER. The Senator is so much better informed in or something else which would get gold. regard to the details of the operations of the Treasury than I Mr. TELLER. It can no·t be changed to greenbacks. that I would not venture to answer his question directly. I will Mr. SHERMAN. It can be changed into ordinary currency. say to the Senator, and I think he will agree with me, that the. As they are maintained as legal tender at par with each other Trell:sury regards all the obligations of the United States as re- there is no difficulty at any time for any person having a silver deemab~e in gold. certificate to get it exchanged for other forms of money unless Mr. TELLER. Oh, no; I beg pardon. there should be an effort made to make a run on the Govern- Mr. PALMER. Well, sir-- ment, or something of that kind. Mr. TELLER. If I will not interrupt the Senator-- Mr. PEFFER. Will the Senator from Illinois permit me to Mr. PALMER. Not in the sl..ightest. read the law on the subject? Mr. TELLER. T should like to state that at the last session Mr. PALMER. Certainly. of Congress, in February, I took pains to put in the RECORD a Mr. PEFFER. "This cer tifies that there has been deposited letter from the Treasurer, embodied in a report from the Secre- in the Treasury of the United States one silver dollar payable to tary of the Treasury in answer to a Senate resolution, showing bearer on demand." positively that up to that time there never had been a dollar of It is a silver dollar that is payable to the b earer-that, and silver certificates redeemed in gold, directly or indirectly. I nothing else. call the attention o! the Senator from Illinois to the fact that Mr. PALMER. I beg Senators to understand that I am dis· every certificate is redeemable in silver dollars, and it is so de-. cussing the practice of the Government, and· I have not under nominated in the certificate. stood that the Treasury has made any discrimination, so that Now, if the Sena.tor will allow me to go one step further-- all means have been employed properly to keep all the issues of Mr. PALMER. I will, with great pleasure. the Government not only at par, but equal in fact. Mr. TELLER. I assert here, without the fear of anybody be- Mr. STEWART. Will the Government ever redeem the sil- ing able to contradict my statement, that if some Senator will ver certificate in gold? send a 1•esolution to the present Secretary of the Treasury in- Mr. PALMER. I do not know. quiring whether he has paid any silver certificates in gold he Mr. PEFFER. It never has done it. will send back to us the same answer exactly that has been sent Mr. PALMER. I simply stated the policy of the Government, back by his predecessor, because I have myself t::Lken pains to go and as I am anxious to avoid friction in wh:1t I have to say I will to the Treasury Department to make inquiry whether that is not go on and discuss a point like that. These Treasury notes are true or not. A great and influential magazine of this countrv payable in gold. _ Perhaps there may be a legal altern~tive, but having asserted that whatever might have been done under the· I can not imagine the condition of the United States buying the former Adminish·ation, under the present they were redeeming silver of a miner or a corporation at 70 cents or 75 cents in gold, silver certificates in gold, I went to the Treasury Dep::trtment and then payingbackthe-dollarcoinedfrom theverysamesilver. and was assured by the proper authority, the Treasurer himself I can not understand that. That would not be just. It has (not the Secr etary, but the Treasurer, who is the proper person been priced so low that there would be no birness in buying the to apply to), that there had been nothing of the kind done under same met'll b:wk in silver. We have seen the pra-ctice ,and there the present Administration. It would be absurd to suppose that fore I am not called upon to discuss that b _·anch of the ques~ion. an Administration struggling, as the Senator says the present I recur to my first proposition. one has been, to ma,intain payments in go~d according to the The credit of this country d-epends upon the ability of the practice, t.hat is, the greenback and the Treasury notes, have Tre1.sury to sustain itself, and too steady <.i rains on the Treasury .. assumed also to pay $325,000,000 of ~ilver certificates in gold. enda.nger it unless new powers are e-iven to the Secretary to bor- Mr. PAk\1:ER. Theexplanationof the Senator from Colorado row gold for the protection of the national issues. justifies me, at least, in modifying the statement I made to the Inasmuch as this does not affect the question of bimetallism or extent of saying the Treasury notes issued in put·cb..a$e of silver free coinage, as it simply prevents this d rain upon the Treasury a-re payable in gold a.nd are paid· in gold. for the purchase of property for which the Government has no Mr. TELLER. By custom. possible use, why should >ve continue to buy it? Wha.t advan- Mr. PALMER. By custom, and upon the principle of the tage is gained? vVhat benefit is it to the Government to store Government-to maintain parity. four and a half million ounces oi silver every month withoutany Mr. SHERMAN. Will the Senator allow me? legislation that looks towards its utilization? 1 cau understand Mr. PALMER. I always yield to the Senat.or from Ohio with J that gentlemen from the sliver States may oppose it, and why? pleasure, because I know he will instruct me. Because, looking at a return for 1891 or 1892, their product was 1B93. CONGRESSIONAL _RECORD-SENATE. 2075 between .se-venty and s.eventy-.five million ounces; I have not got Mr. BUTLER. Mr. President-- the exact iigurea. The Government is acustomeri;o the amount Mr. GRAY. One moment. There bas been since 1866, as of something over three-fourths of that produc_t. The United shown by this Abstract, both in wheat and cotton a steady and al St:ltes Govarnment is a .sure, perpetual purchaser of more than most uniform decline down to 1882. .three-lourths of their product) I believe. Mr. STEWART. Let me sa,y a word . .Mr. TELLER. If the Senator will allow me, he gets the prod- Mr. GRAY. .I wish to shte to the Senator from illinois and uet too higb. In the year he speaks of, about 1890, or 1891, or also the Benator from Nevada that the inference which has been 1892, it was about 54,000,000 ounces. drawn here from the supposed commencement of a decline in ~ir. PALMER. I beg pardon; I meant the whol-e United 1873 is totally without warra.nt in the facts as shown by the star .States. tistics. 1\fr. TELLER. That is the product in the whole United Mr. STEW ART. The Senator is entirely mistaken, if he will !States. allow me one moment. The price of cotton and of w.heatwas ab- Mr. PAL~fER. My recollection is it was 73;000.000 ounces. normally high during the war. JYir. TELLER. No; it n"Bver has been so high. Mr. BUTLER. And immediately .after. Mr. PALMER. I thought I had correctly understood the Mr. STEWART. And immediately after the war. But in tables published in the little manual prepared for us by the 1873 it had assumed its normalconditionas it was previous to the Finance Committee. At all events, the mining States have a war. The whole cqtton region was in the lin~s of the Conied eustomer, a certain customer, for four and a half million ounces eracy and the cotton could not be gotten out. There was _a cot of silver every month, and that they should be unwilling to give ton famine dm·ing the war, but the price assumed its normal that customer up I can understand. candition in 1873, and it was thought it would remain as it was The Government purchases, I suppose, more than three-lourths previous to the war; it found its level. Both wheat and cotton <>f the whole product of the United States. I heard the very elo- had found their level then, and the price was the same that it quent remarks of the Senator from Montana [Mr. PowER]. I was inantebellum times. ButitwentBteadily down. from that time heard him .speaking of the desolation of the refusal on the part with silver. of the Government to buy the silver produced in the .silver This does not rest upon my assertion, because this question States. The picture is an exceedingly sorrowful one. No m 3.n was elaborately examined by two royal commissions, the com feels it more keenly than 1; but why should the United States mission on the depression of trade and. the commission on the _re IContiuue to buy a p1·oduct for which it has no use? is the inquiry. cent changes in t.he relative value of gold and silver. Hundreds But the purchase of silver by the Government has another ef- of experts testified as to the effect of the demonetization o1 silver feet. It is stored aw~y. It goes out of the market. It aids in upon the price of farm products. Those who were for tbe gold the disposition of the surplus silver. In all respects a discontin- standard and those who were for the silver standard, the whole uance of the _purchase is deplorable to gentlemen whose prop- twelve upon the commission, agreed that the principaldeclinein erty consists in the product, silver bullion. the staple commodities was the result of the demonetization of Mr. President, did it ever occur to gentlemen to think of the silver and that gold had appreciated. That was agreed upon. reondition of other men who ha;ve _purchased land from the Gov- They all agreed upon that at the Brussels conference, as all who ernment? The Senator from Idaho [Mr. DUBOIS] described the have investigated the question have agreed upon it. It does not .sufferings and hardships of the early settlers in the mountain rest upon my assertion, but rests upon the information that is .regions. He flays they bought th~ land; they engaged in these collected by the most .laborious commissions oi England and the :industries; th~y encountered dangers and hardships; and upon United State-s . .that ground he predicates some claim to the favor of the Gov- Mr. GRAY. If the Senator will indulge me a moment, 1 do ernment. The Senator does not know when it was that the not understand that it rests upon the assertion of the Senator farmers of Illinois and Indiana and Missouri and other States from Nevada, but it has been repeate_d here over and over again, under circumstances of great difficulty entered those States and ad nauseam. boughtlandsfrom the Government. They have been industrious. Mr. STEWART. It is true, too~ I claim no superiority for them over the inhahitantsofthesilver Mr. GRAY. I say it is not true . . I B1LY the facts do not wa.r- St- tes, but th-ey are equal to any population that ever existed any- rant the inference, and that those who rely upon the argument where on ~arth. They went into those States and bought those that there is any relation between cause and effect _are relying · lands, and spent ~ears in hard work preparing their lands for upon a .state of things that does not exist. There is no such culture; and their wheat this year is worth us much less than synchronous movement of the products as a matter of fact. The the cost of production as is the silver of Idaho, or }.fentana, or movement down in wheat and cotton commenced when silver Wyoming, or -any of those Sta.tes. was at a premium over gold. Mr. STEWART. Will the Senator allow me? Mr. STEWART. Of course it did. It commenced immedi- Mr. PALMER.' With great pleasure. ateJy after the war. Mr. STEWART. How much has wheat fallen since silver Mr. BUTLER. I sh{>Uld like to say just one word. was demonetized, and is it not the lact that the price of whe.at Mr. STEWART. Certainly. has kept along with the price of silver all the time? Mr. BUTLER. Will the Senator from illinois pardon me? Mr. PAL.t\1ER. I h ave heard th!lot sta.tad, and I do find that Mr. PALMER. Certainly. both silve1· as a commodity and wheat as a commodity have Mr. BUTLER. I think there is nothing whatever in the fallen. statement the Senator from Delaware has just made as to the Mr. BUTLER. May I interrupt the Senator one moment? decline in the price in cotton in 1866. The fact is that cotton, Mr. PALMER. With pleasure. immediately after the close of hostilities in 1865 and in 1866, sold Mr. BUTLER.. He has referred to the farmers of Illinois and as high as 60 cents a pound. It was the abnormal condition, and Indiana. Is it not his opinion that those.farmer.s are in favor of resulted from lihe war. T_he countr_y had been devastated. the free coinage of silver? Ther e was very little cotton, comparatively, raised for severaJ. Mr. PALMER. No, sir. years. So no .argument can be drawn from the decline.from Mr. BUTLER. The Senator states that to be his opinion? 1866, wben the price was abnormal, and was due to the fact I Mr. PALMER. It is my opinion. have just stated. Mr. BUTLER. Then I have been misinformed. ~ Mr.ALLE \f. Will the Senatorpermitmeaquestion? I think Mr. GRAY. If the Senator from Illinois will allow me, I the Senator irom Dalaware .states substantially the fact as it ex- shouldlikerighthere tosaysomethingthatlhave beenintending ists, but I wish to call his attention to the fact that in 1856 the to say in reply to the proposition made by the Senator from Ne- Government commenced the process of contracting its currency, vada,whichhasbeenassertedhereoverandoveragain, that there and before 1873 it had called in over $500,000,000, I think over has been a synchronous fall of -Bil ver and the great staple com- $600,000,000, oi its paper money and destroyed it. modi ties of wheat and cotton, from which there is to be inferred Mr. STEWART. That added. a relation of cause and effect. That I understand to be his prop- Mr. GRAY. Then here is a new reason. All this 13ession we osition now, and I have heard it, a& I said, many times before. have been treated to the assertion, made with more or less~ Those who make that assertion sts.te only a part of the truth as phasis, shouted into our ears, that wheat and cotton bad gone to tbe facts from which they ask this inference to be drawn, for down with silver, commencing in 1873, and w-e were asked to dl·aw it is also a fact that while the fall in wheat and cotton has been the inference that the one decline wa.s the cause of the other. steady since 1873, when silver wa.s demonetized, it did not com- Now the Senator from Nebraska says candidly what is theia~ m-ence to fall then. The moot conspicuous, steady, and .constant that the decline had commenced in 18 ~u. nnd he attributes it decline in the prices of those two greats~aplecommodities dates (and lam not now disposed to contest that matt ~ r with him at from the year 1866, seven years before the demonetization oi sil- all) to another cause, to a contraction of the c ~· r 1· ency that set in ver, and the St3.tistical Abstract of the United States proves after the war and long before the demonc2zn,tion of silver. what I say. Mr. WASHBURN. Will the Se-nator ft·om Illinois allow me? 2076 CONGRESSIONAL RECORD-SENATE. OCTOBER 3, Mr. PALMER. Gladly. lowing the price of silver from that dayto this. The other day, Mr . W ASHBURN. I wish to ask the Senator from Nevada in August, when silver was down to 62 cents an ounce, wheat how he explains the fact that the price of whea.t from 1879 to was 54 cents a bushel in Chicago. 1883 increased yearly? There was a steady increase in the price Mr. GRAY. The Senator from Oregon is only repeating and of wheat during that time. trying to base an argument upon haphazard coincidences between · Mr. STEWART. Because the act of 1878 for the timo stead the prices of the two commodities. There is no legitimate in· ied the price of silver. If you will follow the changes in the ference that is to be drawn from H, as I have tried to show by price of silver right along you will find that wheat followed it the abstract. and commodities generally followed it. That was carried Mr. TELLER. Will the Senator from Delaware answer me a through the tables by the British commission on foreign trade, question? He has been studying this question. How does he and the royal commission and the Brussels conference, and account for the fact that when silver went to $1.21 an ounce in they all showed that when there was a fall in silver wheat went 1890 wheat we·nt to $1.25 a bushel, and when silver fell wheat fell down. In 1890, when silver went up to $1.21 an ounce, wheat went just with silver? up accordingly, and wheat has gone up and down with silver Mr. GRAY. I account for it by the fact that wheat went to right along aU the time. $1. ~5 a bushel in 1890-the supply justified that price. Mr. CHANDLER. Will the Senator allow me to say a word? Mr. TELLER. I will show the Senator before we get through I have been unable to understand what the precise idea of the th::tt he is in error there. . Senator from Illinois was in the recent discussion, and I there Mr. GRAY. According to this abstract, as a friend points fore wish that he would be kind enough to restate it. out, in 1890 the average price was 83 cents. ·Mr. PALMER. I must"confess to the Senator from New Mr. STEWART. I will show, when I get an opportunity, Hampshire that I have forgotten the particular point I was on, what fools they were in England and in every other place where having become so interested in this discussion. they investig-ated the subject, if the position of the Senator from Mr. MITCHELL of Oregon. That being the case, will the Delaware c:m be sust9.ine:! . Senator allow me to ask the Senator from Delaware a question? Mr. PALMER. Perhaps the Senator from Nevada will kindly Mr. PALMER. Certainly. answer a question. Mr. MITCHELL of Oregon. Is the Senator from Delaware Mr. STEWART. Any question that I can answer. able to state what was the price of whe:1t in Chicago, that is, the Mr. PALMER. Will the Senator from Nevada tell me anv highest price, at any time between 1866 and 1873? re.1son why wheat should follow silver more than silver should Mr. GRAY. I can not tell. I suppose this is the New York fol!ow whe-:tt? Both are commodities. price. Mr. STJt~W ART. I will answer that question. Mr. MITCHELL of Oregon. The Senator spoke a little while Mr. PALMER. Well, do. ago of the prices. Mr. STEWART. Our competitors in the production of wheat Mr. GRAY. I have taken these prices as I found them. I are on the sil \·er stand2.rd. One ol the arguments used for con wil: state that I never bought a bushel of wheat in my life and tinuing the demonetiz::ttion of silver in India is b3cause it gives never sold a bushel. I have taken the figures from the Statisti them cheap wheat in England. Hus:;ia is on a silver b asis, and cal Abstract of the United States for the year 1892. I presume she has enough p.tper out to keep her p :1per on a level with the that the figures are correct. coined silver of other co•.mtries. She puts out more paper so as Mr. MITCHELL of Oregon. The Senator said a moment ago, to keep it on a level, and sae has stable prices. She has a stable in answer to the argument which has been made, that the price currency. Both India and Russia have a stable currency, and it of wheat has followed the price of cottol\ since the demonetiu. has not changed at all. T .heir currency buys the same quantity tion of silver. of every mat3rial. Mr. GRAY. I did not say that. The people can make and can create indebtedness there and pay Mr. MITCHELL of Oregon. I so understood the Senator. a debt according to the contract and prosper; and they can pro Mr. GRAY. Oh, no, the Senator is mistaken. I did not say duce wne:tt; whereas, when we come to compete with them, we anything about wheat following cotton. I said there was not a h ave a currency always fluctuating in one direction. For ex sinale fact in the economic history of the United States to sup ample, the averct.ge pr ice of a bushel of wheJ.t for the last thirty porl the assertion that whe:1t and cotton had gone down in such ye .1 rs, or perhaps longer·, in the Liverpool m arket has baen an fashion in price with the price of silver as to warrant anyone in ounce of silver. It has varied very little. Theyhavekeptright inferring that one was the cause of the other. That is what I along together, within a few cents, for over thirty years. The said. Indian farmer could hke his bushel of wheat to Liverpool and Mr. MITCHELL of Oregon. Exactly; and the Senator, in exchange it for an ounce of silver, and, while their mines were order to support that statement and argument, said that wheat open, he could take the silver back home and have it coined at did not commence to go down in 1873, the time of the demone $1.37, because the r atio w ~ s 15 to 1. tization of silver, but it commenced to go down in 1866. The Americ:m farmer bkes his bushel of wheat to the same Mr. GRAY. I did. m arket and he exch ~tnges it-for an ounce of silver. He can not Mr. MITCHELL of Oregon. In order to test the correctness have the silver coined at home; he has to exchange it for gold, of the Senator's position I wish to know whether wheat, between and he gets from 75 cents to 80 cents, whatever it may be. He 1866 and 1872, was any higher at any time in the .:ity of Chicag·o has to produce wheat for 80 cent.:; or 75 cents against the India or any other place in this country than it was in 1872, immedi farmer, who produces his wheat for $1.37 a bushel. The conse ately preceding the demonetization of silver? I ~ay it was n_ot. quence is that India, in place of having no export of wheat, now · Mr. GRAY. Well, the Senator must make his contest with h as an export of about 60,000,000 bushels of wheat. The-conse the compiler of this abstract. quence is further, that Russia, which was always a competitor, Mr. MITCHELL of Oregon. The Senator from Delaware does but rather a we J.k competitor of the United States, has sup not state any price. planted the United Shtes in the European markets. Mr. GRAY. I will read from the abstract the price at which This matter has been thoroughly investigated by the English wheat was sold, I suppose in New York, though it is not stated. financiers, by boards and commissions, and they attribute the The average price for the year 1866 was $1.41 a bushel, in 1867 it principal part of the ad vantage of India in wheat and cotton to was $1.21 a bushel, in 1868 it went up to $1.90, in 1869 it was $1.39,• h -::tv ing a stable currency and to the dearer money that we ara op in 1870 it was $1.29, in 1871, $1.32, another little fluctuation; in erating upon in the United States. They go so faras to sJ.ythat 1872 it was $1.47, in 1873 it was $1.31, in-- they are liberating themselves from paying tribute to the United Mr. MITCHELL of Oregon. Now-- States by means of the depreciation of silver. But it recoiled on Mr. GRAY. \.Vait a moment. In 1874 it was $1.43, in 1875 it them, because th9y were driven out of India. The English m:m was down to $1.12, in 1876 it went back to $1.24, and so on down ufacturers were driven out of India. India commenced manu to-188-! when it was $1.07, and in 1892, when silver was at its facturing her own textile fabrics and shipped over $50,0GO,OOO lowest point, wheat was $1.03 a bushel; and in 1885, when silver worth of textile fabrics to China. She became the rivdl of the was considerably higher, wheat was 86 cents a bushel. English manufacturers and consequently something had to be Mr. MITCHELL of Oregon. The Senator from his own sta done. So they have now put India on a gold basia, oe are at tistics-and I do not think they are accura.te-- temlJting to do it, for the purpose of crushing the Indian manu Mr. GRAY. They are not my statistics; they are the statis b .cturers so that they can g-et the China trade again. tics of the Treasury Department . This matter has been discussed over there. It is ver y un Mr. MITCHELL of Oregon. According to the Senator's state fort ~mate that our people do not read the discussions of the va ment, and according to his statistics, he has cited but one time rious organizations in England. The textile fabric associ..ltions prior to 1873, and batween 1866 and that date, when wheat was and the boards of trade have discussed this m atter, and they at any higher than it was immediately preceding the demonetiza tribute the principal fall in farm products to the demonetiz:1tion tion of silver, which was $1.47, and, with a slight rise in the case of silver. They say that silver is the measure of value, and in of pooling wheat in Chicago, the price has been continually fol- consequence of the great silver-producing countries they are 1893. CONGRESSIONAL RECORD-SENATE. 2077 able to reduce the price of farm products. We are trying to Gold is said to be the me:tsure of value, silver is said to be a competewiththemonagold basis. Wec:tnnotdoit. We can commodity, as is wheat and is CQtton. Silver has fluctuated no more compete with India and Russiaon a gold basis in wheat widely, cotton has :fluctuated widely, and so has wheat. Now, and cotton than the manufacturers of England could compete how this thing, which of itself is uncertain, this thing whlch is with India. on a gold b3.Sis when India had a silver basis. They not money, but a commodity, can determine the price or the could not do it. · value of other thingsjust like itself, is something I can notcom- Mr. PALMER. I hope that explanation is entirely sati~fac- prebend. tory to the Senator, but I confess there is so much of it I do not But I return. The gentlemen who have such large claims fully understand it. upon the consideration of the country ought to remember that Mr. STEWART. I will give a smaller dose the next time. while they ask that this country shall continue to buy their sil- Mr. PALMER. Yes, the Senator ought to give a dose ac- ver-- cording to the streng-th of the patient. [Laughter.] Mr. STEW ART. I beg pardon. We do not ask that; we ask Mr. STEWART. I will do so. that it shall be coined, as had been done for a thousand yeys, Mr. PALMER. Here are three commodities, silver, wheat, Mr. PALMER. I will come to that. and cotton, and each fluctuates according to the laws that govern Mr. STEWART. We do not ask the Government to buy sil- commerce. Neither is a measure of the value of the other. ver. We ask that it may be coined. Wheat and cotton during all this time did not make the price for Mr. PALMER. The Senator is insisting upon a continuation silver, and silver was not referred to to ascertain thE: price of of the Sherman law. those products. How they can influence each other, as neither Mr. STEWART. Weare insisting thatsilvershall be coined. is resorted to I1S a means of determining the value of the other, Mr. PALMER. Then the .._,enatorisplaced ineitheroneoftwo is tome incomprehensible. attitudes. He insists that we shall buy, or in3ists that, having Mr. President, I was speaking of the condition of the farmers hold of the existing law, they will not let it go until we agree to of the West. I repeat, I do not accept the statement of the their demands. That seems to be the attitude. While these Senator from Oregon or the Senator from Nevada that these purchades of their product are a burden upon the country, they three independent articles of commerce affect the price of each have no more right, I submit, upon principles of justice to in other, or that wheat affects the price of silver, or silver the sist that the United Stg,tes shall continue to buy their product price of wheat. than the farmers who sell wheat and corn may insist that the Mr. TELLER. May I interrupt the Senator to state the basis United States Government shall buy their products. on which we presented these facts? We present them on the Mr. STEWART. Silver is a money metal and should be theory that silver had not fallen, that the divergence between sil- coined. When, however, the Senator speaks of a burden, I will verandgold wasonaccountoftheappreciationofgold. Toprove ask him if the $150,00),000 of Treasury notes issued for silver that we mea.sured sil er not by wheat and cotton, but by wheat has been a burden in the last three months? and cotton and pork and cattle and farms and everything else, Mr. PALMER. I have refused to regard the silver as being we selected the two items of wheat and cotton, because they are identical with the Treasury notes. The Treasury notes are sup the most conspicuous, the most important of the agricultural ported by the credit of the Government, not altogether on the products, the theory being that an ounce of silver to-day will distinct ground of the security afforded by silver. buy as· much wheat as it would buy when it was worth $1.29 at Mr. STEW ART. There are $331,00:>,000 of\ silver certificates our mints and $1.32 at the French mints; and gold will buy more redeemable in silver coin. Have they been a burden in the last than twice as much. three months? Mr. GI-tAY. If I may be permitted, I will say silver will not I Mr. PALMER. I am not called upon to answer thatquestion. buy as much labor. I am speaking of the continuance of the system of going into debt Mr. TELLER. Silver will buy as much labor in nine-tenths to buy a product, on the ground that the people who have gone of the countries of ~he world; but in this country, owing to con- there have some claim upon the Government to buy their product. ditions with which we are familiar-trades unions, protective Mr. STEWART. How is it a debt when you have the silver tariffs, etc.-it will nQt; but in the great countries of Asia, wit.b. in the Treasury with which to redeem it? 800,000,000 people at least, their labor, paid in silver, has not Mr. PALMER. Unfortunately, the silver we have to redeem changed in the last thirty years. it will not redeem it. _ . Mr. STEWART. I want to say one word when Senators talk Mr. STEWART. What is the reason it will not redeem it? about the price of labor. It is true that in this country-and I The law says it shall. will being the statistics of other countries to show how labor has Mr. PALMER. When the Senator gets into the law-- gone down-the trades unions and protective tariffs have kept Mr. STEWART. Then you are not there. [Lg,ughter.] up the rate of the wages of labor. A great many are thrown Mr. PALMER. I am not there. [Laughter.] out of employment on account of the decline of prices, but the The PRESIDING OFFICER (Mr. GRAY in the chair). The prices have kept up pretty well. They are being put down. The Senator from Nevada will please address the Chair when he in strikes all over the country result from threats to put down terrupts the Senator from Illinois. wages; but the most of those who have labored for themselves Mr. PALMER. There i& no reason for this which might not for the last twenty years have got nothing. The farmer who be urged in favor of men engaged in other branches of industry. has labored to improve his farm for twenty years has got noth- So that nothing is to be argued and the Sherman law derives no ing, and the farm is not worth more than half what it was suppor t from the single consideration that those who have pro twenty years ago. The great body of farmers, the bone and duced the silver ought to have a purchaser, that because they sinew, the foundation of this country, have labored for less than bought their land of the United Shtes the United States should nothing; the mortgages have crushed the farmers; the farms therefore buy that which t)ley h ave dug out of the earth. The have depreciated in value, and the farmers have labored under whe=tt men and other men of that sort have bought their land in the appreciation of gold until they are about crushed. That is the same way, and they have as much right from that point of the situation. view, aside from the consideration of public advantage, to insist Mr. DOLPH. If the Senator from Illinois will yield tome for upon selling to the Government their products as have those a suggestion, I wish to say that [should liketoseefair play, and whose product is silver bullion. I begin to think if this discussion is to go on as it did while I These are considerations which go to the mere question of the was speaking to-day, and as it is going on now when the Sena- repeal of the Sherman law. Upon that we have had engrafted tor from Illinois is on the floor, perhaps it would be a good many arguments in favor of-I do not know that I very dis thing to form a ring and see that there is fair play, and that tinctly comprehend the proposition-but we have had in one the speaker has only to contend with one Senator at a time. insbnce I have in my mind an argument in which the theory [Laughter.] was advanced that the Government ought to coin all the silver Mr. PALMER. Mr. President, r find myself in the condition wherever it may be found, and it has been maintained, I believe, of Sut Lovingood's father, when the old man was caught in the that that of itself would produce an equality of value between nOS3 by his bull pup, and Sut remarked, "It may be rough on the silver coin and the gold coin of the same denominations or you dad, but it's the makin' of the pup." [Laughter.] This of similar denominations. The public have no confidence; finan may be hard on me, but the Senators who are contributing so cia1 men have no confidence in· that proposition. much to this discussion have furnished so much information to The second is that there shall be a limited coinage. To that the Senate and to me that I am exceedingly grateful for it. I answer that the three hundred and odd million silver dollars Mr. STEWART. I should like to have the illustration car- now in possession of the Government are as much of silver as ried a little further. This gold scheme may be good for the the business of the country will absorb. gold ring, but it is pretty bad for the people. It is believed by very many men-and the argument of the Mr. PALMER. That is the mora.!. [Laughter.] Senator from Oregon [Mr. DOLPH] seemed to be conclusive upon Mr. President, I repeat that I am not able to comprehend the that point-that unless the princiJ3te of equality in value can be philosophy or the principle on which these statements are made. established as between the two coins we can not have both of them. ~~------~------...... 2078 c-oNGRESSIONAL RE_OORD- SENATE. Oc~oBER 3,. If you cease to coin silver, gold becomes the standard and re the volume of gold contracts, silver would flow in and supply the mains with you; if you coin silver--, it being of less- value, yuu lose defiCJ.ency. all the gold. I think the. doctrines of the best doctorsoi finance Under the operation of the laws,. we have now $500,000,000 of have established the proposition that it is impossible that two silver which has been coined, and have e.ome $200,000,000 in ac cnrrencies can continue together when they are essentially dif tual circulation. This: $355,000!000 will no doubt soon enter into ferent in value. the channels of circulation. If gold should then become short, Mr. TELLER. I ohould like to inquire of the Senator whether diminish in volume, or should the nece b ities for gold become he means the legal value or the market value of the material of extended, the silver will fl.ow in an 000,000 of gold and $500,0001000 of silver, the silver dollar w.orth offensive-as a means of coercing the country into some more 10 per cent or 20 per cent less than the gold dollar, the s1l ver extensive use oi silver. The law can not be defended upon it3 dollar would be employed. own provisions. It is kept here because it can be kept here. The argument of the Senator from Oregon this morning cov The pretense is-I a'3k pJ.rd.on.; ldo not mean that in any of ered that ground, and I will not rep...,at it nor mar it by attempt- fensive sense, but-the theory is that the President will not ing to resbte it. Then, in point of fact, it would be the substi agree to any l!ea.sonable legislation in regard to the use of silver. tut:on. of silver for gold, and, as I understand, unless the Demo Who has authorized th::.t statement? Who speaks-here by au cratic theory as-advanced at Chicago can be realized, we should thority for the President of the United States? If that were still be limited to use but one of these metals. The moat valua true, and any Senators had a. right to assert it to be true, would ble, the most usef!H, would seek some point in which its greater that furnish any reason for voting" ior the maintenance of a la\v US2 could. be advantageously employed, while the- chea.pev would which in itself is oE no value whatever, and one which is pro remain with us, because nobody else would desire it. That I ductive of mischiefand is productive of no good? It is upon. the understand to be a sound principle. same theory that thosa who support this bill would not favor any The Sens..tor from Alab:llna [M.r--. MORGAN} the other day further legislation. Who h as a right to assume this to be true?- seemed tofeel theforceof thatobjection. 1 regret that he is not One wm~d more and I shall have finished. It is said, too, by here. l do not mean to misstate him. He suggested that with some that the Democratic platform requires that something silver coinage we migh.t disregard commercial relations with shall be done. Tne Democratic platform distinctly condemns Europe,a,nd we mightform commercial connections and re-lations the act sought to be repealed. Thesubjectofbimetallism or free with Japant Mexico and South America, where they have a silver coinage has no proper relation to this question. standard, and that this country, instead of attempting to maintn.in. Senators say that they will vote for one of these things, one the struggle with Great Britain, which seems to be the central of these purposes- declared in the platform, if at the same time figure here, would yield that, and would associate itself with the those who support the platform will consent to do another thing. Asiatic races and the Spanish races of South America and Mex I submit th&t there is no re3.Son in that demand. Those who ico where they have coinage confessedly much less in value than make this proposition simply put their party associates under ours. the harrow and compel them to disregard the judgment ol the I think the Senator wo.s logical in his vie~; for, if we adopt Preoident, whom I need not quota here, and whom I do not in n-ee coinage, I believe it would result in the silver dollar being tend to quote here. the sole sbndard of value and that gold would disappear; and The proper thing to do is to repeal this law distinctly; to fol in.ste.ad of having both met3ls we should have but one. We low the example of the House of Reprosenta,tives (if I am not shill probably have but one, except in the sense which I will out of order in alluding to the action ol the House), and thus speak of in a moment, which illustrates my views of the true bring pea~e and. quiet to the country. policy of this Government. It is s :1id that in this case the Sherma.n law has not produced I believe that the idea of coining silver and gold so that they all these ills. I retort by saying that the She1·ma.n law producc3 will pass for the purpose of commerce indifferently, each hav no good and that the country believes that i.t ha.s pJ;oduced thet:.e ing the same exchangeable value, each performing the same evils, that it has operated to destroy public confidence, and that function, each equally acceptable to the people-I believe that conviction has parrJyzed business. It has led to the hoarding the method of accomplishing- that object has not yet been sug- of the capital of the country until it has_filled the country with gested. idle and unemployed men. Inasmuch as the law has no value in But I am satisfied that bimetallism on the gold standard or itself, and as there is a popular belief that it produce..s these the gold basis, or whatever term is thought to be the most ac evils, why not yield to the popular judgment and restore confi curate, established_ in 1873, will remain substantrnlly as it now dence to the country by the repeal of the law? It ought to b is. I be-lieve the Senator fromNevada(Mr. STEWART], to whom repe::tled on public grounds. Why, then, shaH the Senate no t I look as a high priest representing that view,., says that gold be allowed to act? is not sufficient in volume to accomplish the purposes of this work. l began my remarks by s:tying- tbt my hesibtion with refer I. grant that that view ia probably correct. I take into account ence to discussing t.h.i&question, with reference to spending- time the fact that as civilization.advances, as railroads and telegraphs upon it, was based upon a sort of doubt as to whether we should and all the varioua methods of communica.tion. are improved and ever vote or not. I do not know about wasting time; I do not extended, the use and. the ne_cessity of coin diminish every day, know that anybody C3.Il. be compelled to vote, but l do say that and that the estimated small percentage of gold required for the if the Senate of the United States has no y;ower to govern itself actual business of the country-from 5 to 8 per cent-is probably no power to register its own. decision when it has reached a.. con up to the full limit of the requirements of the business of the clusion, if it is a mere impotent body-I say impotent; yes, fi world. it is impotent simply, and nothing can be done hero but to inlk I have no doubt at all tb.a.t tha use of silver will be extendedif and talk forever-if it can not govern itseli, it is an abortion. ilie quantity of gold is proved to be- in.su.ffi.c.ient. l think the The time will come when the country will insist tblLt this Senate philosophy of this matter is that the United States. Governme11t shall, in the intere&t of law and right and in the exercise of its should now cease buying silver; that it should dispose of its great powers, declare in some way or other that it will govern coin so that it b3 absorbed in the business of the country. In itself; that when the judgment of a. majority has been matured, deed~ it might be wis to rid the country of the small bills ordi~ that maiO£ity &hall be permitted to register its determination . n.arily in circulation, nd thus exten:d. the use of silver·; and as It is not 110-\V~ ·. 1893. CONGRESSIONAL RECORD-SENATE. 2079 I do not propose anything. I came here, as I say, with these men are. I think I could select an antagonist and probably views of the dignity and authority of this body. I had heard of freeze him out. its courtesies; I had heard oi its large claims to public confi I hardly think the Senator from Idaho was fair when he sug dence; but I must say, that while the Senate deserves all that gested that we postpone the consideration of this ·measure for can be said of it-and more, as is · suggested-still there is one three months until we could get three more men here to help us thing that can not be S!iid of it, it has not the power to make a sit it out. Think of having three more men here to sit down law except by the will or consent of the minority. and watch the struggle. I hope if thosethreemenaretobesent Mr. TELLER. With the permission of the Senator, I should here they will be some old codgers; I hope they will not select like to ask if he does not think the Senatehasbeenable to make their brawny young men to starve us out. all the laws up to the present time? But, Mr. Presidenl;, this matter is a very serious one, and I Mr. PALMER. While it has performed itsfunctions-andno protest, not that these Senators shall yield any of their rights, man can more profoundly than I believe in the value of the Sen but that the time will come, and is very near at hand, when the ate-yet I must confess that, standing here ro-day in this pres sensible men of this ~oun try will say that this Senate must adopt ence, I am astonished to find that it is impotent. It has no power some law by which it can govern itself. to act. It ean not speak-! ask pardon for that; it can speak. \Vith that, sir, I conclude. [Vmghter.] Mr. VOORHEES obtained the floor. Mr. TELLER. I should -like to ask the Senator one more Ir. BUTLER. Mr. President-- question, with his permission. . Mr. VOORHEES. I yield to the Senator from South Caro Mr. PALMER. With great pleasure. lina. Mr. TELLER. Is not the Senator himself at this time an ex Mr. BUTLER. J simply desire to take the floor this after emplification of that impatience and desire fOl' haste which our noon in order that I may have it to-morrow morning. fathers had in view with reference to legislation when they estab Mr. VOORHEES. As a matter of course I shall not expect lished this body? anybody to proceed at this hour, and I therefore move that the Mr. PALMER. I should not be surprised, Mr. President, if Senate proceed to the consideration of executive business. I am, and it isastonishing how the wholecountrywillagreewith The motion was agreed to; and the ~Senate proceeded to the me. There is a universal complaint. consideration of executive business. After twenty-two minutes 1\Ir. Presjdent, does it not seem strange to you that this great spent in. executive session the doors were reopened and (at 5 and dignified body, after having spent weeks in debate-! am o'clock and 42minutes p.m.) the Senate adjourned until to-mor not speaking of its willingness, but I am speaking of its busi row, Wednesday, October 4, 1893, at 11 o clock a.m. ness-it now depends on the will of a very small number of Sen ators as to whether it shaH vote or not? Mr. DUBOIS. Mr. President, I agree with almost all there NOMINATIONS. marks which the Senator has made. I think the fact is, that ExecHti?:e nominations 1·eceived lJythe Senate October 3,1899. whenever there is a strong sentiment in this country in favor of any irriport::mt measure the Senate will respond to that senti SPECIAL EXAMINERS OF DRUGS, ETC. ment. But the Senfl.tor from Illinois knows as well as I know C.· A. Kern, of California, to be special examiner of drugs, that the Sen:1.te does not want to pass an unconditional l'epeal medicines, and chemicals in the district of San Francisco, in the bill. Thera is no sentiment in this Chamber in favor of that. I Sta.te of California, to succeed Frederick Walter Harris, re- honestly believe th:tt there are not ten Senators here who are moved. · really and anxiously desirous to pass this unconditional repeal Andrew H. Ward, of Massachusetts, to be special examiner of bill. If there were a strong sentiment here, the Senate -would drugs, medicines! and chemicals in the district of Boston and pass it. There is a manufactured sentiment outside which does Charlestown, in the State of Massachusetts, to succeed Andrew not exist in this Chamber. G. Frothingham, resigned. Mr. VOORHEES. If the Senator from Idaho and those whom he represents will give us a chance to vote, we will answer the POSTMASTERS. question whether or not there are ten, or four or five times ten, George W. Lewis, to be postma.ster at Santa Rosa, in the who will vote for the unconditional repeal of the Sherman act. county of Sonoma and State of California, in the place of Bert Mr. DUBOIS4 I want to say to the Senator from Indiana that rand Ragsdale, removed. he had the power to resort to any means he sees fit, but the William D. Alleman, to be postmaster at Warsaw, in the minute he undertakes to resort to unusual methods it will then county of Kosciusko and State of Indiana, in the place of George be demonstrated to the country how futile it is to undertake to W. Bennett, jr., removed. pass an unconditional repeal bill of this sort. Charles W. Bristley, to be postmaster at Thorntown, in the Mr. VOORHEES. I only wish I had the power to resort to county of Boone and State of Indiana, in the place of William A. measures that l should take to compel a vote. McDaniel, removed. Mr. PALMER. Mr. President, if the people of Illinois had Ollin M. Kolb, to be po tmasteratPrinceton, in the county of been as wise as the people of Idaho, inste!id of sending here a ·Gibson and Stab of Indiana, in the place of Oliver M. Tichenor man pretty well worn out in one way or another, they would removed. have sent here a young, vigorous, athletic man, to assist in John G. Hagensick, to be postmaster at Elkader, in the county starving to death the Senator from Idaho. of Clayton and Stg,t-e of Iowa, in the place of J. M. Leach, de~ Mr. DUBOIS. I do not want to be starved to death. ceased. Mr. PALMER. Mr. President, I think that declaration-! George C. Everett, to be postmaster at Mount Sterling, in the speak with all kindness to the Senator-is an appeal to the bar county of Montgomery and State of Kentucky, in the place of barism of the Senat-e. Is it true, as matter of constitutional law, John C. Wood., resigned. or is it consistent with the nature of this great body that the G. C. Crutchley, to b3 postmaster at Norborne, in. the county only ul ti.mate means of securing a vote here is that ·we shall of Carroll and State of _fissoud, in the place of J. W. Higg-in- quietly announce that we are engaged in the great busines3 of bottom. remo.-ed. . sitting each other out? Are there really beds and food t~ be Henry Shutts, to be postmaster at Oregon, in the county of brought in here, and occasionally refreshments of some other Holt and State of Missouri, in the place of David P. Dobyns, re name or character? If that be true, what a termination of a moved. great intellectual struggle-to sit down and see which can !)tand John P. Ha?kitt, to be postmaster at Kinston, in the county of it the longest! Think of it! Lenoir and State of North Carolina, in the ph.ce of Ada Hunter, Mr. TELLER. We do not desire it. removed. Mr. PALMER. No, the Senator and those he represents do Warren G. Turner, to be postmaster at I\forganton, in the not desire it, but they say that is the mode of reaching results. county of Burke and State of North Carolina, in the place of Mr. President, it is the same old thing, "Unless you are a bet Lambert A. Bristol, removed. · ter man than I am you can not do it." [Laught-er.] That is the John M. Anderson, to be postmaster at Alderson, in the county scene which is to occur in this great body near the close of this of Monroe and State of West Virginia, in the place of John E. century. Shields, removed. The Senator says this body has got along pretty well so far. I have never had the plellBure of witnessing such a scene. But think of two or three of us old fellows coming in here to sit out CONFIRMATIONS. these young men. Think of me undertakb;tg to exhaust the Exec·utive ?W1ninations confirme.cl by tl1 e Senate Septembe1· 30, 1893. energies of my youthful friend from Idaho, whom I knew almost before he was born. [Laughter.] The idea of setting him up SUPERINTENDENT OF 1\-H:-.rT AT SAN FRA..'WISCO. against me. I think I might manage to get after somebody if John Daggett, of California., to ee superin.tendent of the mint I knew which one to name. I do not know where the gentle- , of the United States at San Francisco, in the State of California. 2080 CONGRESSIONAL RECORD-HOUSE. OcTOBER 3, COLLECTOR OF CUSTOMS. to give some reasons why, from my standpoint, the election laws Charles M. Wallace, of Virginia, to be collector of customs for of this country ought not to be repealed. the district of Richmond, in the State of Virginia. In the time aUotted to the discussion of this matter I shttll not have time to travel over all the ground which may properly be COLLECTOR OF INTERNAL REVENUE. gone over, nor shall I have time to give all the reasons which Richard B. Morris, of Kansas, to be collector of internal reve may be given in support of the retention of the laws on the nue for the district of Kansas. statute book. I appear here to-day with some pleasure, from a POSTMASTER. disposition of my own nature, because it was always a peculiar Perry Hughes, to be postmaster at Clinton, in the county of ity of mine that my feeling is with the under dog in the. fight. De Witt and State of Illinois. Realizing as I do to-day that the Government of the United States is upon this floor the under dog in the fight, I stand here with some pleasure to help and defend that under dog. Again, I take some pleasure in offering a few words that I have the op HOUSE OF REPRESENTATIVES. portunity to do at the present time, and I shall take some pleas ure in giving some reasons why the Republican party, when it TUESD.A.Y, Octobe1· 3, 1893. did pass these laws, voted to place them upon the statute books. The House met at 12 o'clock m. Prayer by the Chaplain, Rev. I am well aware in some quarters a man is somewhat out of SAMUEL W. HADDAWAY. fashion and regarded very largely out of place who stands up The .J ou1·nal of the proceedings of yesterday was read and ap and offers any defense of the General Government. I am well proved. aware that many people of this country, if they were to declare their citizenship in America, will affirm that they are citizens COMMUTA'l'IONS OF HOMESTEAD ENTRIES IN OKLAHOMA. of a State on the principle that the greater includes the less; so The SPEAKER laid before the House the bill (S. 824) granting they would have our people think because they are citizens of to settlers of cerbin lands in Oklahoma Tarritory the right to the Sta1;e they are therefore citizens of the General Government. commute homestead entries, and for other purposes; which was On the other hand, I would affirm my citizenship of a State by read a first and second time, referred to the Committee on the declaring that I am a citizen of America. I am an American Public Lands, and oL·dered to be printed. citizen. That is the difference between us here to-day in some ADDI'l'IONAL CLERKS FOR THE DISTRICT GOVERNMENT. respects. I am aware of the line of argument that has been pursued on 'fhe SPEAKER laid before the House the action of the Senate the other side. I am aware that many gentlemen upon the other on the bill S. 721. side have taken the position that they vote for the repeal of the The Cl~rk read as follows: election laws because they are unconstitutional; and the very Re~~olved, That the Senate agree to the amendments o! the House to the bill able gentleman from Virginia [Mr. TUCKER] who has this bill (S. 721) to authorize the Commissioners o! the District o! Columbia to ap point two additional clerks. in chJ.rge did so in entire frankness basing his opposition mainly upon the ground that the laws are unconstitutional. I wish to do LEAVE FOR COMMITTEE PRINTING. no gantleman any injury upon the floor. When I undertake to Mr. BROWN. Mr. Rpeaker, I offer the resolution which I ·quote, 'if I shall misquote him he shall have the pleasure of cor . send to the Clerks desk from the Committee on Elections, and recting me, or if I misquote his sentiment it will be no interrun- ask for its immediate consideration. tion to me to be corrected here. ~ The Clerk read as follows: The gentleman who opened the discussion was followed by a Reso l'ued, That the Committee on·Elections is authorized and empowered gentleman yesterday from Alabama, I think [Mr. DENSON], who to have printed and bound at the Government Printing Otnce su~h papers and publlc documents as may be necessary for the use of the comllllttee affirmed the law to be unconstitutional. They admit that the dn!'ing the present Congress. Supreme Court of the United States may have passed upon the The SPEAKER. Is there objection the present considera measure and affirmed its constitutionality, but they deny the to right of the General Government to bind them as members of tion of the resolution? [After a pause.] The Chair hears none. this body in interpreting that law as they see fit. The resolution was agreed to. Any member upon this floor has the right to vote to repeal On motion of Mr. BROWN, a motion to reconsider the vote any law whether it be constitutional or not, and I do not see by which the resolution was agreed 'to was laid on the table. why gentlemen here should affirm their right to contradict the ORDER OF BUSINESS. Supreme Court and assign that as a re.1son why they will vote The SPEAKER. The Olerk will call the committees for re to repeal this law. They have a right to vote to repeal it even ports. though the Supreme Court has atlirmed its constitutionality. DISPOSITION OF PERSONAL PROPERTY IN HANDS OF CHURCH We have a right to undo and repeal any law t bat we h ave placed . OF .JESUS CHRIST OF LATTER-DAY SAINTS. upon the statute book whether that law isconstitutionaloruncon· stitutional, and I do not see why any member need feel bound to Mr. BAILEY, from the Committee on the .Judiciary, reported give any reason for voting for its repeal. But when gentlemen ba-ck favorably the joint resolution (H. Res. 34) providing for st>tnd here and affirm that, in their opinion, this law ought to have the disposition of cerhin personal property and money now in been held unconstitutional, and that for thatr-3 a on they believe the hands of a receiver of the Churchof Jesus Christ of Latter it is unconstitutional, and so contradict the Supreme Court, then ' Day Saints, appointed by the supreme .court of Utah, and au I beg leave as a lawyer and a member of this body to differ with thorizing its application to the charitable purposes of said church; them. I differ with the able gentleman opening this discussion which was referred to the House Calendar, and, with the accom [Mr. TUCKER] upon that point. panying report, orderzd to be -printed. I am lawyer enough to believe that when the highest court of - The call of committees was concluded. my State upon State matters, or the highest court of my land The SPEAKER. The morning hour begins at five minutes upon general matters, shall have pronounced a law to be consti past 12. The Chair will call the committees under the second tutional or unconstitutional, I am, not only as a citizen, but as a morning hour for the consideration of bills; the call rests with member of thisoranyotherbodyin this country, bound by the de the Committee on the Post-Office and Post-Roads. cision of that court; and it is my duty, not only as a citizen but The call was concluded. as a member of this House, to acknowledge the supremacy of the ELECTION LAWS. Supreme Court of the United States in that respect. Upon this The House then, according to order, resumed the considera point I may ma.ke a few further remarks before I close. tion of the bill (H. R. 2331) to repeal all statutes relating to But the able gentleman who opened this discussion told us supervisors of elections and special deputy marshals, and for that these laws were unconstitutional; and he car efully read the other purposes. sectionof the Constitution applicable to them and the sayings The SPEAKER. ThegentlemanfromOhio [Mr. NORTHWAY] of Mr. Madison, and the declarations of the f;tthers of the Con is recognized. stitution, and announced that he diiiered with the Supreme Mr. NORTHWAY. l\1r. Speaker, I do not know that I should Court. It may be, sir, that he differs with the Supreme Court hke the time of this House to be heard upon the pending measure, of the United States, but nevertheless the decision stands to did I not feel that it was due from the minority portion of the com bind him under his oath, if he acknowledges, as I have no doubt mittee re-porting this bill to give some reasons upon the floor of the :he does, the binding efficacy of his oath as a member of this H ouse for the minority report. I do not suppose that anything House. I shall say will affect any vote upon the other side, nor perhaps Now, I propose in a few words to try to vindicate the action of confirm any vote upon this. I simply address myself to some the Republican party upon the constitutional question. I know :5tatements which have been o:ffered upon the floor of the House it is affirmed here that these laws are unconstitutional because as tending to give the reason of the dominant party here why they interfere with the rights of the States. I shall have some the bill under consideration should become law. And I propose thing to say upon 'that point before I sit down. I know an ar- 'J