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THE INDIANAPOLIS JOUHNALr SATURDAY, AUGUST 1, 1896.
THE DAILY JOURNAL SATURDAY. Al. GUST 1.1S0G. Wasbiajtoa Office 1410 Pencsybania Avenue Telephone Calls. Builnea office 23S 1 Elltorlal rooms.... A G 1EK3IS OF SttlSCUIPTION. DAILY UV MAIL. ' Pally only, one month I .79 Dai y eiUy. three months 2.0) Dai V only. on year S-W Daily. Including Sunday, one yeax D.O) Ccn&iy only, one year 2.00 WHEN FURNISHED UV AGENTS. Dally, per weelc. ly carrier 1 "t Sunday, e lr.gle coj) 5 tt Daily and (Sunday per week, by carrier 20 eta WEEKLY. Per year 11.00 Reduced Hates to Clubs. Fubcrtb with any of our numerou amenta r tnd Butscrlcticns to trie JOLIl.VAL SEWSIMI'EIt COMPANY, Indlanupolls, lad. Persor.s acndlmr the Journal through the malls fa th Unite'l ytttt-n ghouM put on an eight-p;i?e. larer a ONE-CENT restate sump; on a twelve cr slxteen-pare parr a TWO-CENT postage stamp. J-'oritfu i,hta la uually double these rates. AH communications Intended for publication In this paper must, tn orrfer to receive attention, be accomiioie'i ty tbe nair.fe nd aivlrcsa ol the writer. THE INDIANAPOLIS JOURNAL Can be founJ it the following- places:' NEW lOftK-WinUor Hotel and Astor Hese. CHICAGO Palmer House and P. O. News Co., 1 Adami Mret. CINCINNATI-,. R. llawley At Co., 151 Vine street. DO L I K L.LK C. T. Dwrinr. northwest cornet of Third and Jefferson streets, and Louisville Book Co.. ZLi Fourth avenue. ET. LOUIS Union News Company, Union Depot. .WASHINGTON. D. C-Rlsx House. Ebhitt House, WUlanra Hotel and the Washington Nws Exchange. Fourteenth street, between Perm, avenue and P street. . A large number of men have already learned that the silver Issue was raised for the benefit of a silver plutocracy. The gTeat dynamic force behind the free tilver movement la the delusive fallacy that somebody can cheat his creditors. Now and then a wicked person will arise In a Cheadle meeting and ask him If he favors the Chicago platform indorsement of the Gorman tariff. At -present prices one ounce of cold Is x "worth $20.67, while sixteen ounces of silver are worth only $11.04. All the legislation in the world cannot make $11.04 worth $20.67. y It was never Intended that the "United States should be run solely for the advan tage of a limited number of persons lnter- cstcd in silver mining or silver mine stock jobbing. . A Democratic paper in the East observes that MMr. Bryan, as the hero of a dime novel. Isn't so -much out of place as he would ' be aj President of the United States." ' It may be remarked that the angry Bry-cn-Matthews politicians who failed to cap ture the Populist State convention will not help -themselves by stigmatizing the middle-of-the-road men as "long-whiskered hayseeds. "We can't afford to lose any crops these times," remarked a Democratic office holder last night. These times? These are Democratic times the period of the clover of a tariff which has opened this country to, the products of other nations. An ounce of gold Is worth $20.67; sixteen ounces of silver is worth $11.04. The silver mine owners demand that the $11.04 worth of silver bullion shall be stamped $20 or more for their sole benefit. But for this de sire there would be no silver question. Mr. Bryan seems in the uncomfortable position of a young woman with two ad mirers calling at the same time, and each Insisting that the other shall leave. They might slip outside for a few moments and demonstrate which of the two Is the best mar. "Our trouble Is not with the character of the money we have, but with the threat to debase It. We have the same currency that we had In 1S02. good the wqrld over, and unquestioned by any people. Then, too, we had unexampled credit and pros perity. William McKlnley. N "Money Is the transferrer of capital, as a hayrack and a horse 1 a transferrer of hay. More hayracks will never make more hay. but more hay will require more hay racks, and Is sure to get them." So said Speaker Reed the other day. and no more opt illustration will be made during the campaign. The real question for the people to de cide is whether they will retain the present money system with a gold standard and an abundance of full legal-tender silver In cir culation, or whether they will adopt a new one with a silver standard, no gold at all and all our currency, silver and paper, acak-d down to 53 cents on the dollar. The Popocratlc platform adopted at Chlr cago says: "We demand that the standard silver dollar shall be a full legal tender, equally with gold, for all debts, public and private." As every one of our 4jO.OA9.000 silver dollars Is already full legal tender, equally with gold, for all debts, public and private, this clause in the platform could only have been inserted with intent to de ceive. An exchange says that "the State elec tion in Alabama next Monday should afford some trustworthy evidence as to the effect upon the Fcpuliot party in the South of the rcpulistlc lurch of the Democrats at Chi cago." The contemporary seems to have forgotten that the Democratic vote-counters, rather than the voters, carry the elec tions In Alabama, and have done so for nearly a generation. N Tnv nomination of J. B. Cheadle for Con v jress by the Democrats of the Ninth dis trict is another evidence of the complete, demoralization of the free-silver wing of the party in this State. To the abandon ment of Democratic principles it 13 ready to add the indorsement and nomination of discarded Republican candidates. It Is difficult to say which deserves the moat contempt, the faction that would make such a nomination or the candidate who would accept It. Mr. Cheadle shou'd be "snowed under" by a majority that will settle his congressional aspirations for all time. Captain Allen transferred his political al legiance to the Democracy years ago, and financially It has been a good thing for him; consequently he has made a Democrat of Mr, Cheadle, in the hope that It will benefit that person. It will not; Cheadle will always be referred to as ex-Congre3-man. Politically, Captain Allen could not l-ave done Mr. L-mdls n greater favor than to have made him a Democrat to take the nomination from four old-time Democrats. Hundred of Democrats will regard thera tclvcs as political orphans, now that Cap- tain Allen has made Cheadle their candi date, and will take their choice of candi dates. They will prefer Landls to Cheadle. TUB FAILING CONSPIRACY. ' The general political movements of the past ten days havo been favorable to the Republican ticket. It is very evident to ma-ny of the old politicians In the Bryan party that he will not prove a grow ing candidate. The two candidates for Vice President are already an embarrassment, and as the days pass they will become a positive obstacle and the cause of bitter strife. In States where the prompt Indorse ment of the Democratic ticket Is deemed essential to success, fusion has been re jected by the Populists, The independent Democratic movement appears to have a much larger support than was expected in Indiana, Illinois, Michigan, Wisconsin, Min nesota, Iowa, Missouri, and even in Ne braska, The fact that Mr. Bryan is in the hands of Senator Jones, of Arkansas, and Governor Stone, of Missouri, is not com mending his candidacy to men who do not believe. in narrow sectionalism and bour bonism. These are developments of the past week, aid they are the cause of real alarm to the Bryan leaders. In this State Republican activity has caused a change of sentiment. All over In diana the people are deeply interested in the Republican presentation of the money question. Never hare there been so large audiences In the heats of midsummer as the Republican speakers have had in every part of the State during the past two weeks. They have been October audiences of a presidential year. For the most part, the most careful reports from different parts of the State indicate that the first stories of Republican defection on the sil ver question have been overestimated. Re publicans who were inclined to silver a few weeks ago have found they were deceived. Even If they havo a tenderness for a dol lar worth 53 cents they are too good pa triots to march under the banner of Alt geldism, with its menaces to law and order. There is evidence that people are now con vinced that the silver Issue has Its animus in the greed of a few thousand mine own ers and stock jobbers who are hoping to realize fortunes in speculation, and in the desperate condition of the Democratic party which has led Its leaders to espouse the e fuse of the silver mine trust to escape the Issue of free trade. The American people usually get on the right side of questions when they have time to consider them, particularly when they are deeply interested. They have time to consider the scheme of the silver mine owners and speculators, and because they know that their interests are involved, the j majority, long before the voting In Novem ber, will have made up their minds that evil and not good will come to them by the free and unlimited coinage of silver. Business men should take courage, because thero Is- no cause for fright or ponlc m ex pectation of the success of the Bryan ticket. The Bryan ticket will be defeated. The conspiracy of the silver politicians and the bourbon Senators of the South to seize this government will surely fall. A LABORING MAN'S QUESTIONS. A patron of the Indiana State Journal, residing at Owasco, Carroll county, sends a list of questions which he, as a laboring man, would like to have some sllverlte an swer in the paper which he reads. The handwriting makes It very evident that the writer is a laboring man. The questions are center shots, and they constitute a good list to propound to Bryan orators in small meetings. They are as follows: How much money per capita is there in the United States, and how much of it Is in circulation? Who owns the silver bullion the farmers and laboring men, or capitalists and silver mine owners? If it were corned, how would it increase the money In circulation? How would the free coinage of silver in crease the demand for labor? How woujd free silver increase the labor ing man's wages? How would such coinage increase the price of wheat? How would free silver increase the ex portation of our products? How would you make such silver dollars pay the bonds already issued by our gov ernment? How would you make the silver dollar go as far as a gold dollar in paying for the necessaries of life which we import? Some of the foregoing questions would make the average schoolhouse free-silver howler very warm on the coldest evenings of October, ' should he undertake to an swer them. For Instance, it would give one of those orators a dismal half-hour to answer: "How would the free coinage of silver increase the demand for labor?" provided a few Intelligent wage earners should be present to add other questions In the same line. How the talk-men of the mine owners' trust would squirm when asked: "Who owns the sifc-er bullion which It is proposed to double the debt-paying value of by the government coinage?" If the advocate of the silver trust were an adroit person he would put the question off by saying, "I will come to that later on." If he were so unwise as to attempt an answer a few questions would make him pray to be taken out of his meeting and put into a sweaNbox. Those who are Intent on getting amusement out of the canvass should go to Bryan meetings and fire some of the questions of this laboring man at pretentious speakers. Gl'EIUltLLA 31 OX 12 V. ' That was a very significant statement of Secretary Carlisle's, published in the Jour nal yesterday. The President of an East ern life insurance company recently issued a circular letter stating that If the govern ment adopted the free coinage of silver the company would have to pay all policies in the depreciated silver coin. A policy hold er In Little Rock, Ark., sent a clipping of the statement to Secretary Carlisle with a request for his views on the subject. In replying the Secretary said: In case free colnaso of silver should be established in this country I presume In surance companies and all other Institu tions would continue to make their pay ments by checks and cruris on bank as heretofore; but In" my opinion the whole volume of our curre'ney would sink at once to t'ae silver basis and these checks and drafts would be rid in silver dollars or their equivalent instead of gold or its equivalent, as is now the case. I presume no one supposes for a moment that it would be the duty of th government to attempt to keep th silver dollar, coined free for private Individuals and corpora tions, equal in value to a go'd dollar, or in other words, that it would be the duty of the government to nttemi. under a sys tem of free coinage, to maintain the parity of the two metals. The dollars would be coined on private account and delivered to private individuals and. corporations as their own property, the government having no interest whatever in them and being, therefore, uader no obligation to sustain them by guaranteeing their value. Under our existing system all silver dol lars are coined on account of tht govern ment and are issued by the government In payment of Its expenditures and other ob ligations, and It would be an act of bad faith, therefore, to permit them to depre ciate. This calls attention to a very Important phase of the free-silver movement. Under our present system the faith ofthe gov ernment Is pledged to maintain the parity of ita different kinds of currency, and as all the standard silver dollars heretofore coined have been coined on government ac count, it is in honor bound to maintain their parity with gold, and does, in faet. But under the free coinage of silver the situation would be entirely different.' In that case the government would coin silver bullion brought to the mints and turn over the dollars to the owners of the bullion, each coin containing about ZZ cents' worth of silver, but stamped "one dollar." As they would be coined on individual ac count, the government would not be under any obligation to maintain their parity with gold, as it Is with the dollars it has coined on its own account. They would have no backing, and would be on the same footing with the Mexican silver dol lars, which are now hawked about the country at SO cents apiece. They would be. a government coin without the support of the government credit. As the bullion owners would be "fighting on their own hook," their 33-cent dollars would be guer rilla money. The effect the controversy over the money question in thl3 country is already beginning to have abroad is shown by an Incident related in a private letter from a well-known lady of this city now traveling in Europe. Stopping at the same hotel in Geneva was the 'wife of the American con sul at Constantinople, who had In her pos session some United States treasury notes which she wished to have changed Into the currency of the country. This she could not do. the money changers having heard enough of the free-silver movement here to believe that United States currency had already depreciated. They were afraid to accept It. Heretofore American paper money ha3 been received without question by brokers in all papts of Europe, though as a matter of mutual convenience it is not usually offered in miscellaneous transac tions. The custom with traveling Ameri cans is to deposit their letters of credit and United States money in a banking house on their arrival in a foreign country, their checks on such institution being, of course, paid in the local carrency. These banks are informed as to the condition of affairs here, and probably the Geneva visitor would have had no difficulty on ap plication to these. That our national credit Is Injured In common estimation at this stage of proceedings is, however, not sur prising, and the continued agitation must make the situation worse. Should the free sllvcrltes win it would be necessary for Americans going abroad to take gold with them. But, as the silver people remark, "what havo we to do with abroad? Wo will live to ourselves." "We are unalterably opposed to mono metallism, which has tocked fast the pros perity of an industrrous people in the paralysis of hard times." So says the Popocratlc platform adopted at Chicago. If by "monometallism" is meant the single gold standard, we have had It In the United States since 1S31. and It has taken more than forty years for it to lock the prosperity of the country In the paralysis of hard times. Moreover, the most pros perous times the country has ever known have been during this period of the single gold standard. But If by "monometallism" it i3 meant to imply that silver has been driven from circulation, we reply that there is fifty times as much silver In cir culation now. as there was when the single gold standard was adopted forty years ago. The f Popocratlc platform lies. Its supporters are. not opposed to monometal lism. They are opposed to the gold stand ard and want to substitute silver mono metallism for the practical bimetallism which now exists. At a Popocratlc meeting a few nights ago a speaker said, "Up to the war the money In circulation was $50 per capita. Now It rs but $1 per capita." The able public instructor was somewhat off in his facts. In 1SC0 the total amount of money in the United States was $433.407,2o2, which was $13.85 per capita for the population at that time. On the 1st of July, 1S06, the total amount of money in the country was J2.134,243,1S1, of which $6Si.G19,9Sl was In the United States treasury and $1,500,723,200 was In circulation. In this campaign of educa tion nobody need3 it more than the speak ers on the free-silver side. General Weaver, the old-time Greenback er and roullst, went to Alabama to make speeches for the Populist ticket. He did not make a speech. It Is now asserted that he returned to St. Louis to urge Senator Jones, chairman of the Democratic na tional committee," to use his influence to give the Populists a fair count In the elec tion of Monday. Captain Kolb declares that already the colored counties have been fixed so as to repeat the frauds which were exposed in the consideration of the contested seats in the House. BUBBLES IN TUB AIR. Irresistibly Attracted. "I thought .Wlbble was such a good rider, and here he goes and smashes his wheel against a brewery wagon." "That wasn't awkwardness. It was a case of fascination." The Vortex of Power. "What are you going to be when you are a man, Willie?" asked the man who al ways asks that question. "Me? I'm going to be a policeman and stop trolley cars right in the middle of the block." Passing of tne Army. Tramp, tramp, tramp," the mllllsh Is march ing Back to quiet ways of peace and ease. And the girls, with broken hearts, Again will have to try their arts On the boy who brings the morning gro ceries. Home, Sweet Home. "Young man," said Mr. N. Peck, "you will never know what real bliss is until you have a home of your own." "Eh?" said the young man. astonished at such a remark from such a source. "Fact. Nobody but a man situated as I am can properly appreciate the delights of getting down town for a few hours of glorious liberty." - .4 A Serious; Lou, St. Louis Special. The convention had Just begun when the clerk with the biggest voice bawled out: "Indies and gentlemen. Mr. Greene, of Montana, has lost his mileage book and his ticket to the convention." "And It's more thajt two thousand miles to Montana," yelled a voice tinged with agony. Whether it waa Mr. Grucne or not did not transpire. A Shameful Spectacle. New York Sun (Dem.) The parading of a croes decorated with a crown of thorns through the hall during the attempt to stampede the Populists for Bryan. Is perhaps the most revolting Inci dent in the history of political conventions. K should bring the blood to the cheeks of the man In whoso Interest the shameful spectacle was deviled. Another Man. Pittsburg Chronicle Telegraph. The Jone who is now supposed to pay the freight Is not tbe samo Jones who used to ixur the frcUht. 4 SOME FINANCIAL FREAKS IDEAS THAT HAVE PREVAILED IN OTIIKH. TIMES AM countries. .Money of Mulberry Bark In lint Ion of Currency In EnRlnnd nnd France Effect of Debased Colnnsre. St. Louis Globe-Democrat. The silver craze which seem3 to have tak en the Democracy by storm is but one of the cranky notions with which that or ganization it from time to time afflicted and though the present Is a little more se vere than previous attacks, there is no reason' to doubt that It will run its course and pass away as soon as the sober good sense of th-s country has an opportunity to pass judgment upon it. It Is also to be expected that not a few of those who are now loudest In their advocacy of the white metal will, when the present furor sub sides, see how great is the financial folly Into which they have been led. They may not admit the fact, for, as a rule, men are slow to confess their own weaknesses; they will probably be angry when twitted with the recollection of their silver heresy, but so long as they evince a change of heart by a change of policy those who have not worshiped at the shrine of the sliver idol can afford to let bygones be bygones, and both forgive and forget the temporary in sanity that led the mistaken crowd to be lieve that 30 cents could be made a' dollar by calling It one. Humanity Is full of curious vagaries, and when dealing with It one need not be surprised at any wild or extravagant notion being entertained and promulgated ad gospel truth, and, besides-, there is a large class of people who are never really happy save when In pur suit of some choice , bit of folly to whleh they hold alt the more earnestly, even when mentally convinced of its absurdity, solely from that stubbornness with which nun cling to an Idea either in politics or religion. Let a man believe himself per secuted or oppressed for opinion's sake and he will die rather than yield one jot or tittle of his crankery, whatever it may be, and the silver men, having imbibed the Idea that they are exceedingly oppressed and much downtrodden, 'will probably hold with tenacity to their pet notion until cir cumstances change, some other issue comes to the front and the sliver craze dies a natural death. THE GREENBACK CRAZE. In its essential particulars the silver craze is the greenback craze, and in the history of that remarkable financial fal lacy may be read in outline the history, present and future, of the 'movement in be half of silver. Each had its origin in a period of commercial and industrial depres sion. In both periods the prices of agri cultural products were greatly depressed, work shops'and factories were closing, the balance of trade was against us. taxes wer burdensom. money was scarce and hard to get, and general dissatisfaction pre vailed. The greenback craze especially had its origin in the idea. very difficult to erad icate from the minds of men, that, in some way. they do not. exactly understand what, the government is directly or indirectly re sponsible for all their woes, and. having brought them on, the government ought to do something for. the general relief. At that time money was the most urgent need of every mui. and a-vnho government had a monopoly of the manufacture of this artiele ine greenbackcrs took the ground that a free and unlimited issue of green backs would furnish a' ejfeedy cure for all the ills of society. Exactly how they were going to get the greenbacks after these had been printed was a question that puz zled the greenbaekers just as a similar query now puzzles the silver men. To Judge from the wild talk now floating about, some of the free-silverltes sem to suppose that after the free and unlimited coinage of the whLte metal has been in stituted they will have only to back a wagon up to the treasury doqr, state how much thixy need and hiry it counted, loaded aed delivered at the expense of the gov ernment. The Idea that they will be obliged to give their labor or something else In exchange for it form apparently no rv'irt of the sliver programme any more than it did that of the greenbackers. The greenback craze had Its da and the wlld ness of th arguments advanced In its support finds a parallel In the mental ob tugenes shown by the silver men in re fusing to see that a 5-cent dollar is only 50 cerits. and that calling it $1 or $1 will not In the least Increase. (t3 value. ' FIAT MONEY. The Idea that the stamp of the govern ment only Is needed to make a piece of pa per or a bit of metal pass X or its face value Is by no means peculiar to the greenback ers or the silverites. ItMsras old as the days when kings first arrogated to them selves the right to coin or manufacture all the money used in their. dominions. In the thirteenth century Marco Polo and Nicolo found a fiat money of the most aggravated description in use in China. It was made of the Inner, tough bark of the mulberry, was cut In pieces not greatly dissimilar In size and shape from our silver quarters, and was stamped with the mark of the sovereign. There was no provision made for Its redemption by a more valuable me dium of exchange; in fact, the Emperor who devised it had the greenback craze to the fullest possible extent, and Imagined that to convert bark into money it was necessary to stamp it and call It money and the thing was done. So. as mulberry bark was plentiful, the imperial mlnt3 poured forth money by the wagonload. and, in order to make It circulate freely, the Emperors not only paid their own debts with It, but commanded that, under pen alty of death, no one should refuse to re ceive it. the same penalty also being pro vided for counterfeiting. The theory looked plausible enough to the imperial Celestial who devised nnd put it in execution, but there was a hitch in it which did not seem to have occurred to the royal Inventor. The people were compelled to take it. for after a few henrts had been deft ry removed from the shoulders of the owner by the court executioner, nobody ' declined to re ceive it, but men who had anythiner to sell always had two prices, one in silver or copper, the other in mnlberry bark coins, and the price was so much higher in the latter than in either of the former that, as Marco said, it took a donkey load of the imperial crowns to buy enoutrh rice to make a . man's dinner, . In other words, there was inflation of the currency of the most pronounced type, with the inevitable result of inflation in prices also. CONFEDERATE CURRENCY. We do not need to go so far back as the time of Marco Polo, however. In order to witness an illustration of Inflated currency quite as notable as that which occurred when mulberry bark was mad legal tender. During the civil war the Confederate gov ernment necessarily contracted enormous obligations, and. 'having neither gold nor silver with which to paj-. issued its own promises. Thee. of course; were bared on its ability to meet its debts, and. as public confidence in this respect was never very high, the Confederate money began Its course at a discount. As-affairs went from bad to worse, the monev kept on declining in value, until, toward the close of the struggle. It was worth hardly anything. Prices rose correspondingly until they be came enormously large. There are men now living who. in the last days of tlv Confederacy, paid ll'V) for a hat. from S12. to $2 for a pair of loots, and other things In proportion, so that the satirist who de clared that before the war he went to mar ket with his money in his pokt and brought back his dinner in a basket, and that just before Les surrender he carried his money in a basket nrtl brought back his dinner in his pocket, was by no means so extravagant in his state ments as mlpht be imagined. As was to be expected, the decline; in the value of the currency caused a general disorganization of all bnsiness. and in many parts of the Southern States so pronounced wss the lack of faith in the government's promises to pay that there was a partial return to the barter system, in use in the infancy of society, but under the conditions that pre vailed in the Southern States, hailed as a relief from the uncertainty of the currency. It would seem as though such an object lesson In inttatlon would effectually dis courage for a century cr two the advocacy of any system looking to the abnormal en largements the currency, but so little was It heeded that, only a few years after th war. the greenbackraze found victims In nil parts of the South: men who claimed that the free and unlimited Issue of gov ernment notes was a cure for every politi cal ill. CONTINENTAL CURRENCY. The Idea that the stamp of the monarch or of the government can makej-ioney out of mulberry bark strikes us a.( tremely unnv. but it is not a whit mol eo than that a government can make money out of paper, provided no plan is proposed for its redemption or means suggested whereby It can be eventually taken up at its face value. In the case of the Confederate gov ernment there was a promise to pay, but no one believed It could be kept. The con tinental fathers of the revolutionary war had an Idea somewhat different, and tried a plan of inflation that to them, seemed to present manv advantages. During the war with England, each colony Issued Its own promises to pay. besides which, the Conti nental Congress also Issued enormous sums of currency, all based on the success of the rebellion against Great Britain. Most of the colonies, however, cherished the curious notion that If the notes were Issued in large denominations, to be redeemed at a frac tion of their face value, they would, never theless, pass current for the full amount. Henre vast quantities of notes were printed, stating that the Colony of Virginia, or North Carolina, 'or Massachusetts, as the case might be, promised to redeem this note after the war. in Spanish milled dollars, at the rate of 40 to 1, or $4 in pa per money to one Spanish sliver dollar. From the debates on the subject It 13 ap.' parent that among the sage legislators who superintended the job there were not a few who fully expected that the notes, is sued with this proviso clearly printed on the face, would pass current at the valua tion stated on the face; that a 545 note, to be redeemed with one Spanish tlollar, would pass for $4). s a matter of fact, they sunk to almost nothing, and one of the most serious problems presented to the revolutionary fathers after the ' war was the state of the currency. INFLATING A METAL MEDIUM. Even, however, when the precious metals lave been employed as currency, numerous fallacies have sprung up concerning them, some of which had very serious social and commercial results. In the reign of Ed ward I of England an idea was promul gated that the King's stamp could make a piece of gold having less than the accented quantity of precious metal worth as much as a coin containing the full amount. Dur ing the reign of this King the currency had become greatly debased, and a remedy was proposed. The King suggested an entirely new coinage, and also that the circulation of all other coins be absolutely prohibited. The scheme looked plausible, and promised well, but when an attempt was made to carry it into execution it was found that the available quantity of gold was not ade quate to the emergency, so Edward or dained that the pound sterling should con tain 3 pennies less of gold, equivalent to a little more than 1 per cent., by which a considerable saving was effected. There were, it appears, enthusiastic counselers of the King who advised that no more than half tho usual weight of gold be. employed. arguing that the stamp was th'e principal thing, and that tho coin could be made of the full weight by the addition of alloy, but most were of the opinion that thla was too radical a step, and that the three pence In the pound would never be noticed by th" people, while the King would make the difference. S much confidence was feit in the plan that there was no hesitation In stating it, and the King's proclamation plainly declared that the value of the pound had been thus reduced. The result was a very disagreeable surprise, for the pecple took alarm, knowing that the value had been lessened, refused to sell their goods at the former prices, and, as usually happens In such cases, the prices rose to a figure that bore no proportion to the de basement of the coin. A BAD EXAMPLE. The lesson was lost, not only on Edward, but on his successors also, for repeatedly afterward did the reigning monarch seek to replenish his exchequer either by less ening the amount of gold contained in the pound sterling or by Increasing the number of pennies. Edward III was almost al ways In need of money to -carry on his wars with France,, and, following the ex ample of the first of his name, diminished the quantity of gold In the pound, and went a step further by increasing the number of pennies to 2C6, a little later making a further increase to 270. Not satisfied with these-two radical changes, he proceeded also to debase the. sliver coinage, not only by increasjng the quantity of alloy, but al so by reducing the standard of weight. The result wa.s almost hopeless confusion in commercial circles. No one knew what values he was going to get for his goods, nor' even what prices to ask, for even the debased currency from the royal mint was rendered still more worthless by an admixture of foreign coins, if nolo;c cr less value than those of the realm li wps death to Import suca t.-rrty find ih? most rigid measures, ouch as searching' all travelers to ascertain wl ether they har'. foreign coins, were :au-n to gjtrJ aialnst their importation, bin in vain. Hie climax was re ached whjM oun terft'ttis In France and Germany four.d out that there was a considerable prclit to be made by manufacturing coins of genuine metal and of the English weight-and send ing them to be sold and circulated In Eng land. They were as good as the Engiish coins, some were much better made, the opportunity was seized with avidity, and England was flooded with a currency, le gal, but almost worthless. The e vil con tinued almost unabated until the accession "of Elizabeth, when decided measures were taken to improve the currency by raising the standard. A SINCERE INFLATIONIST. One of the most sincere believers In the power of credit was the famous John Law, the Scotch financier who came near wreck ing the whole French nation. Law has been much denounced as an unscrupulous scoun drel, but he, in reality, seems to have been a pronounced Inflationist, who had Implicit belief in the power of credit and considered that It did not matter In the least what was used as money so long as the people had faith In It. His idea was to colonize the whole Mississippi valley with French men and then set them to growing every thing that could bo grown there and mining all the metals, precious and otherwise, that were then believed to exist In almost in exhaustible quantities in this new El Do rado. With this end In view he organized a company and Issued stock. The scheme found favor with the people, who readily invested, and Law became a great man. Naturally, so able a nnancier, who was able to create millions of value with no tangible assets in sight, could not be kept in the background, so nobody was aston ished at hl3 appointment as Controller-general of the French finances In this ca pacity he had abundant opportunity to show what credit could accomplish, nnd by issuing paper money in enormous quantities whenever it was needed he made tim very '"flush." indeed. Everybody had more money than he knew what to do with. It is true that now and then some one celled attention to the fact that rents had gone up, that the necessaries of life were hfid at eight or ten times tho prices which pre vailed before the government boin to is sue its notes, and asked why this was. but Law always had a plausible answer ready, and when he had not asked his questioner what did it matter how much was asked, so long as he had plenty of money with which to pay. and so matters went on until the crash came, and Law tied to avc.id be ing torn to pieces In the streets. He left the government with outstanding notes es timated to exceed JCl.Jf25.000.000. and. of all the money he might have made, carried away only 800. " THE SOUTH SEA SCHEME. While John Law was testing the value of credit in France a number of Imitators were following in his footsteps in England. Tho South sea scheme, often known as the "South sea bubble," was a financial project of inflation so similar to the Mississippi scheme of Law that, coming as they did about the same, time, the two are often confounded and sometimes supposed to be identical. So far as the credit feature was concerned, there was no difference be tween them, the South sea scheme being a project for unlimited Inflation. It was originally started by Robert IIarlej Earl of Oxford, who m 1711 desired to fund a floating debt of about 10.000,00) and se cure the Interest by the duties on wines, tobacco and silk. lMrchasern of the fund were also to become shareholders in the South Sea Company, a commercial corpora tion which was to have a monnpory of trade with Spanish America. When the war then going on was closed by the treaty of Utrecht, however, the Spanish govern mcrnt refused to open its American ports to British tiade. and the company had no rea son for further existence. But the di rectors were stout-hearted men, who. ns Implicitly as Law. assorted that paper money was as good as gold so long as you had faith, determined to carry out th scheme of Inflation already started and actually proposed to the government to un dertake the management and payment of the national debt. Such confidence elld their representations Inspire In the members of Parliament that In 1720 an act was passed bv Parliament turning over the finances of the nation to thl3 Irresponsible com pany. The inflation of the governmen. se curities and of the stocks of the eompany wa enormous, and when the shock of fail ure rame thousands were begrared. The government did what It could, the elirectors were fent to prison and compelled to dis gorge all that they had made, as well as to give up their private property to the creditors of the company, all the nssWfs of tho company were seized and dividctL but. after all. the loss to individuals was very large, and the credit business received a blow from which it did not recover for a long time. "WILDCAT CURRENCY." Everybody remembers what, in the slang of the time, were termed the "wildcat" banks that, before the civil war. swarmed all over this country. Every one Issued its own notes, and conducted its business on the principles formerly advocated by the greenbackers, and now by the sllverltes, that calling something a dollar easily makes it so. Their notes were legion, and. as these Institutions were constantly fail ing, no one could be certain, even when he hiul a pocketful of money, whether he would be able to buy his dinner with It. Counterfeits were numerous, and whenever a customer presented a strange bill at a bank window the teller would reach for his list of banks to see if there was such an Institution as the bank whose name it bore and whether it was i!l In solvent exist ence; then for his "Bank-note Detector, to ascertain if the note were genuine. ' This was one of the evils of Inflation which could not be endured in these days of large accounts and rapid counting, but there were others. No one. on hoarding or de positing .money, could be secure of the amount, for every time a bank failed its note3 were valueless, and innocent holders suffered. We have fortunately outgrown this system, but something akin to it would be experienced in the case of silver should free coinage prevail, for with every in crease or decrease in the production of the white metal there would le a flutuatlon in the value of the currency; the silver dollar which one day Is worth io cents might, the next, be worth only 40 cents, and a week later CO cents. Such is the state of things now prevailing in India and some other countries where a silver standard is in foreo. and that It should be brought about In thl country 13 a very disagreeable pros pect. AN APPEAL TO POLICY HOLDERS. Hovr They Would Re Afreet od by Suc cess) of the Chicago Ticket. The following is from a circular letter of John A. McCail. president of the New York Life Insurance Company, to the ioItey holders: The life insurance companies and asso ciations of this country, operating In the State of New York, as it appears from the report of the superintendent of the insur ance department Issued In 1MM5. number more than ten millions of policy holders, divided as follows: Industrial G.G74.C32 Old line 1.877.Swi Fraternal 1.20M4S Assessment 653.SS7 Total. 10.407.873 If we add to this total the beneficiaries of the insured. 1. e., their wives and chil dren (except industrial policy holders), we have at least 25.000.000 of people Interested in the payment of claims by these com panies and associations. During the year l$i)5 these several organizations paid to pol icy holders and their beneficiaries 1163,103. 610. Similar payments for the last five years exceed $730,000,000. It is within reason to assume that the payments to insured people, and the wid ows and orphans of such people, for the next five years will equal this last-mentioned sum. The total outstanding insur ance contracted to be paid is $9,051,437,417. This sum must be paid at some time or other, for death Is certain. How shall it be paid? In what kind of dollarsdollars In gold, worth lOi cents or dollars in silver worth i3 cents cr loss? The insurance iol Icy itself is an agreement to pay in law ful money, and the main Issue involved in the forthcoming election brings 1 cme to every policy holder this question: In what commodity shall the payment be made? With sliver dollars and gold t'o!lars at a parity, the question ar.Kwers luelf; but with dollars wcrth only cents, r. iat may bo the effect on the wife and children for whom the policy holder hopes to pro vide In the event of his tleath. or on his business which he expects to tiiaiglsten out with the proceeds of his polley? What may be the eftect on the ccmpete.tcy for his old age which he cxptod to eirlve from honest dollars, and which may be payable In doubtful dollars if the free coinage of silver is adopted? The premi ums have been paid in goid or lis equiva lent, and to compel the policy holder or his family to accept one-half th; value that he has paid for at the maturity of the e'aim wculd be as iniquitous and inde fensible as though he had been robbed on tne Highway. If the views of the Chicago candidate prevail, the companies could not,- even if they were wiiling, provide for the payment of their claims in gold dollars. The plat form on which he stands reads: "We de mand that the standard silver dollar shall be a full legal tender equally with gold, for all debts, pubic or private, and we favor sueh legislation us will prevent for the future the elemonetization of any kind of legal-tender money by private contract." The record of the debauched currency period of 1870-73. when thirty life Insurance companies retired from business, is too re cent an "object lesson to be forgotten, and Its results too deplorable to iermit the custodians of life insurance funds to be in different to the great elanger that threatens policy holders and those depending on them. Surelyit Is not a political question that confronts us. and even if it is. on the vital point at issue sound money which Involves the honor of the people and the prosperity of the country, the Chicago can didate and platform are antagonistic, and we may well subordinate our nonessential convictions, if no other. Their chosen of ficers may officially appeal to insured and beneficiary for common and united action against those who would greatly impair if not destroy the protection that has been secured by much self-denial. No one re sponsible for the management of these sa cred trusts should fall to denounce the financial heresies of the Chicago p'atform or refuse to join in bringing about the de feat of their advocate. GOLD AND SILVER. Ex-Prcsldcnt Harrison DlncuHnea Our Monetary Syntem. Ladies' Home Journal. Ever since the resumption of specie pay ments in IS. 9 the treasury has paid gold for greenbacks when gold was demanded, and has redeemed. In the same way. the treasurv notes issued under the Sherman law. The Secretary of the Treasury has never exercised the discretion given him to redeem the latter notes in si ver hol iing that his d!scret!on was limited to such a use of silver as would not destroy the pari ty of the gold and silver dollars. And our Secretaries have been right, I think. In ho'.ding that the parity of our gold and sil ver coins will be destroyed the moment the government takes from the holder of a greenback or treasury note the election of the coin he wi'l receive in exchange for it. If he wants gold, and sliver is thrust upon him. the latter is depreciated and the for mer appreciated. If the holder of a United States note cannot 2"et sold at rar for It he will pay a premium for the fjo'd he must have to meet a gold obligation, a premium on gold would at once drive go'd out cf circulation, fer a co'n that is at a premium cannot be used in trade. No one is bound to nay gold to the government for any tax or other dt bt elue to it. So that practlcafiy the situation is this: The treas ury holds Itself bound to give gold to evf ry one presenting a United States note, and has no way of competing any one to pay gold to it. Such gold as it gets comes from persons who choose to take paper mony for uold deposited at the mints or assay offices, or to pay In gold coins some govern ment tax. Formerly all duties upon Im ports were payable only in gold. Now.' when the gold reserve gets low. It cn only be restored by the sale of bond, under the powers given to the Secretary in the legtx latien relating to the resumption of specie payments. Money la Rulltf Inf? and Loan Soclctlcn. Philadelphia Times. The importance of the building and loan interest from the financial standpoint can be r.een at a glance when It is stated that there are between S.roo and .frX associa tions in the country, the combined assets of which amount to $:.xi.(Vrt.(KK. the yearly receipts to nearly 2,W.0U'V0. and the dis bursements through withdrawals and ma tured shares to about $7."..Ojo.000. The finan cial Importance of this enormous Interest Is further enhanced by the fact that this vtfst sum represents the savings of the working people who pay in their small accumulations, ranging from one to ten or fifteen dollars monthly. Thr sum in It self Is a vast ore. U represents the sav ings of a multitude. From the social stand point it is scarcely less Impcrtant. for It represents the effort of the working masses to secure for themselves independent homes, and the citizen with a home of hi own is usually a conservative. Law-abiding citizen. The Whitney Letter. Washington Special. The generally accepted construction put upon the Whitney letter Is that he is mov ing to provide a halfway station where bolting Democrats can stop. who. If the alternative Is presented of voting for Bryan or McKlnley will vote for the former, but who would be thankful for a chance to es cape doing either. Every Democrat who is thus switched off will be half a vote for McKlnley. It is estimated that there ar l.ooo.OOJ or more sound-morey Democrats who revolt .".gainst Bryan who rannot nerve themselves un to the point of swal-lowirf-thc Republican ticket, but who would compromise by upportlng fe straight-out honest-money Democratic--ticket, such as proposed by thr Chicago confer-nce and Indorsed by Whitney, of this l.tMU.OQO votes, mere or Irs, a consid erable in?rcentage seems to be drftlng to Tlryan. and it Is to -head them off that the third ticket Idea is being pushed. The movement has reached the candidate stage of discussion, and the opinion Is deep-rooted that Prcfidcnt Cleveland will be named as the proper representative of the sound-money wing of the Democratic party. The Cleveland talk Is most heard In strictly administration circles, and. while not a word has come officially from Gray Gables. It Is entirely safe to assume that the missionaries would not te trum peting the President's name In this connec tion, as they are doing. If they did not feel certain their course was not objection able or would not give "Offense. The name of Mr. Cleveland is considered the best one with which to conjure honcst-money Democrats that' can be put up. MVTEEX TO OXE. The Rntlo Between Ciold and Stive-'. 17 The Mennlns of Free Coinage. . Philadelphia Record.- Mint Director Freston has made the fol lowing simple and comprehensive state ment in regard to the coinage ratio be tween gold and silver, in response to fre quent inquiries on that iolnt: All standard silver dollars coined by th mints of the United States since the pas sage of tne act of Jan. Is. lor. have been coined in the ratio of 1 to 13.Sw. renerallv called the ratio of 1 to 15-15.i4 being very nearly 16. Still, to reach accurate results, the former and not the latter figure must liy? in. ,ca,culation. The ratio is ob tained In this way: The silver dollar contains 371.2T. grains of of pure gold. If you divide n.; bv 22.71 W.V,!,.pet lh.rao ot weight Set ween a gold dollar and a s ver dollar-that U ' 1 true that, to be Si " par w h fr'r11" ouM .,ir ratlo rm H... 20. The reason Is this: A gold doU ir contains 23.22 grains of pure gold. ?n an ounce, or 4so grains of god. tTjere ate a many dollars ns 23.22 is contained times in 40. or one ounce. If You divide 4V by you g?t $20.67. the number of dollars that can be coined out of an once of pure gold in other words, the .-novy equivalent cf one ounce of gold or of l.YJKM ounces of f- iU the ratio of 1 t0 VAW. Now. If Ji5Si Pnct of ilyvr :, WOrth K'. n ounce will be worth ns you can prove by simple division. The same rrsull Is obtained by dividing 4 grains or on ounce of silver by 371.::,. the number of grains of pure silver In a standard silver givesrjia42Sth rat, f 1 to li55'4' whlchi sixteen ounces of :ure silver will coin a mue more than one ounce of cold; ir. ?s4 ounces of silver will coin exactlv the sam thtT; ?i?T as 0n? ounce of oW- nSjiJl9 oun b 371-? grains. Tim hVI&Z??? ft '"J'ows: multiplied by 4S0. divided by 271.21 equals 20.674. vJi LV.lot !rue ,hat 'teen ouneen of sll tO 16 niy ,15A at thC rat, of 1 is will be ?en above, one ounce of sti ver will coin $T.r.?r Multiplying Jl.S bV sixteen gives Kat. You ran make the same result in another wv: Sixteen ounce? troy, or 7. grain.,, divided bv 371 23 glvlJ the number of silver dollars that cVn b coined out of sixteen ounces of silver- -eci divided by 371.2T. equals 20 63 .S0 tnLPTto,n h? a," furnlshe.1 answers to the fobowing Important questions: of silver? ,S me3nt ly the free co,nare rr,3n;erTh? reht of Individual to de posit standard silver In any amount at tho 16StO l?d""hat 13 mCant bV the rat, f rAnswttrTh? rat, roinaT' of i6 to i means that sixteen ounces of nure silver coined shall have, the p;imc value a" on Third What is meant by bimetallism? ?SWt;r-:The unlimited coinage of hnth fel-d'eoln? PrIVatC "CCOUnt Into fu a&?itofoim'nrhy R,ns,e sund: T"Tkat .only one metaI "hall tw coined on private account Into full legal tender coins, and that only the favored metal shall be coined without limit. iarH1 The Financial Ilroncho. T. S. Van Dyke, In August Forum. JJl ro2ts ,of the s,hrr craze are bejow the reach of any possible chill from the ?rfltfneSt,nn,.an?.,f a chan' of adminis tration falls to bring what the fnr West ci- P.-rtty." the ton will e00n be p..... .... iw.iiy me man ever. The Ignorance pf the West about ti?e business methods of our country and of the world, full knowledge of which will alone settle the silver question In nr.y sound mind. Is equaled only by the ignorance of the East about the average Western mind and th way to rench it. The Fan has wasted much of the reading matter smt We&t because It does not know the audience. Caustic editorials refusing "gold-bug liter ature pent on free slates have b"n a common thing for two years past; masy P Je?..h,avc, bTen rltd for their metal, and little of the printed matter would be read if published. Too much of it Is as thousand-pound shot fired to breach a fog bnnk. when sunshine is needed; and much of it proceeds on the theory that the larger the game the larger the need of a MUnder buss to cover the whole Instead of a rifle to reach thj vitals. If ever an animal needed approaching on the blind side It in the "financial broncho" of the West; for the whole trouble is largely a development of the broncho disposition. Tak the gentlest old nag .that ever made one mile an hour with the Ullage parson through New Jersey mud. and turn him out to grass where vast plains roll away toward grat mountains where people begin to talk of climate ar.d scenery, and epoecially of "the invigorating properties of our ozone" and In. a few days he will !x a far livelier and more vigorous animal. The effect on people la much the same, and one of its first results is a suspicion of any thing from the East in the line of educa tion on money. The Went Not Hostile to the East. Mr. Charles S. Gleed. in the Forum. I hn.ve taken careful note of the temper, convictions and general characteristics of the Western people, and I assert with posi tive conviction that there is no such "at titude" of the West toward the East as that described by Mr. Godkin in his article, in the May Forum. On the contrary, the attitude of the West toward the- East Is of the most friendly eUaracter. It is natural that this should be so; It is Impossible that It should be otherwise. The Western peo ple came from th East, or tbir ancestors did; and almost without exception they are bound to the East by the closest ties of consanguinity. They have taken pains to go East and to study the East. To thm the East Is "back." while to the Eastern ponle the West Is "out." They are proud of the great Interests and Institutions of tho East. They feel that the East stands be tween them and Europe, and that thereby our country presents a majestic front to tl? old world. They have been principally educated in the East: and their preachers, teachers, physicians and intellectual lead ers generally ore of Eastern training. Their systems of law and government are from the East. All the literature trwy read above the local newspaper Is from the East; their educational methods are adopted from Eastern standards. Every Western banker or financier watches the chiefs of his pro fession in the East as pupils watch their teachers. Western merchants go East for their goods. Western people seeking recre ation go East for their rest. There Is no possible room, in short, for any such gen eral feeRng of hostility as Mr. Godkin describes. Ilnrrlnon May Sneak in Vermont. New York Mall and Express. United States Senator ndfie!d proctor was at the Fifth-arenue Hotel for an hour or so to-day. nnd said that he had invited ex-President Harrison to begin his fpeech maklng in Vcrment. a that State has a September election, and Its influence as a farming State will be felt in other rural communities. Senator Proctor ald that he believed General Harrscn would ateept. Of the national contest the Vermont Senator expressed himself confident that the Eryaiiitts would be utterly routed bv No vember. "In my t pinion they are going to lose ground steadily as the campaign pro gresses and the people are enlightened." Preparing for the Worst. Louisville Courier-Journal. Mr. Uryan i getting ready to' prepare Ma gteat oration" for delivery on the occaion of hi acceptance of the Popocratlc noml na tion, and Congressman McCall he locked up in his safe all his old speeoht and ha unchalne d his bulldog. Just About. " v ' Washington PosV" The Indications are that Mr. Whitney will be as Successful In shaping, the Re publican campaign as he was 'la ihaplna the Chicago convention. Yen. It Vo. , Philadelphia Record. - What a queer plan It was to make the, tall beforo her was any dog to be red. ho They Did. Washington Post. The middle-of-the-road fellows manarei to land ou tho middle of Mr. Scw&U ecl I v r o