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Altgeld, John Peter, 1847-1902, 

Governor Altgeld’s Music hall speech. An 
answer to the speeches of Bourke Cockran and 
Carl Schurz. Chicago cl897?3 
16 p, port. 26"^, 


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GQYernor AltgeJd!s Music, hall speech 


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nj JN 


HON. JOHN P. ALTGELD. 








K? Delivered at Central Music rzTall, Chlcagro, Saturday even- 
Ing. September 19, 1896, before tb e largest audience ever as- 
^ seniblecl in that historic buildinj ; 

T hold in my hand a printed *opy of the speech of Carl 

Schurz. delivered in this city \o weeks ago, and a like 
’ copy of the speech of Mr. C kran, delivered one w'eek 

ago. The first fills twelve co) ns of closely printed mat- 
ter in a newspaper, and botl ,ve been advertised as the q 

ablest arguments in favor o ^ gold standard that have 

yet been made. The gold dard advocates speak of 


them as containing Moses and the prophets, the law and 
the gospel of the money question. From the manner in 
which these people speak of them we are warranted in 
concluding that every argument and every fact that can 
be marshaled upon that side of the question are contained 
in these speeches. This being the case, we naturally ex- 
amine them with the deepest interest, for if the gold stand- 
ard is to be maintained we want to know what we may 
reasonably hope from it. 

If would have given great relief to the minds of thou* 

















(s) 


•an4s of patriotic men to have had presented some balm 
for the Ills of our land, and as I love my country moi*e 
than party or honors, I am sorry to have to say to you 
that In these long speeches, containing, as we are told, 
the law and the gospel of' the gold standard, there is not 
a line, not a sentence, not a syllable that offers any hope 
to the American people. That we are In distress is not 
denied in either speech, but there Is no suggestion of a 
remedy. The substance of the whole argument Is that we 
will be better off and suffer less if we keep quiet, and that 
the remedy proposed by the Chicago platform would only 
make matters worse instead of better, or, as Mr. Schurz 
puts it, the application of this remedy would be jumping 
out of the frying j?an into the fire, and if he is correct 
in this, then the only question which is left for the con- 
sideration of those of our people who are dying in the 
frying pan is whether they would be any worse off in 
the fire. 

TARIFF NOT THE CURE. 

The straight-out adherents of McKinley have a panacea. 
They realize the unsatisfactory conditions in our land 
and propose to remedy them by an Increase of the tariff. 
They feel that some hope must be offered to the American 
people, and having nothing else to present they ask us to 
again try the idea of increasing the tariff tax. 

They ask the people to shut their eyes to the fact that 
the if.stress from which we suffer exists all over Europe 
as well as this country; that It exists in the countries hav- 
ing a high tariff and in countries having a moderate tariff 
and countries having no tariff at all, and is clearly due to 
some cause that has no connection with the tariff. They 
ask us to shut our eyes to the fact that we have already 
a very high tariff and that the decline in prices began many 
years ago under a still higher tariff and that it went right 
on under the highest tariff ever known in this country, 
called the McKinley tariff. 

They ask us to shut our eyes to the fact that in 1888 
the conditions in our country were unsatisfactory and that 
the remedy that was then proposed as a cure was an 
increase of the tariff, and that this immediately followed 
the election of Mr. Harrison, when the famous IMcKinley 
bill was enacted. They ask us to shut our eyes to the 
fact that under that law wages were not raised, prices 
kept steadily falling and that immediately after its enact- 
ment in 1S90 th'ere was a marked reduction in w’ages in 
several hundred of the largest manufacturing establish- 
ments of this country. 

They ask us to shut our eyes to the fact that while the 
tariff shielded the manufacturer In some cases against 
.jompetition it permitted him to fill his factories .witli the 
cheapest kind of pauper labor brought from the fields of 
Europe, and thus, instead of raising the wages of the 
.American workman not only reduced their wages but drove 
them out of employment. They ask us to shut our eyes 
to the fact that it was in the spring of 1892, while the 
McKinley law was in force and while Mr. Harrison ivas 
President, that the famous Homestead labor riots occurre I, 
being among the most bloody that ever took place in this 
country; that at that time the conditions of the laborer 
were rapidly getting worse and the prices of American 
pfoducls were steadily falling. 

NO BENEFIT TO LABOR. 

They ask us to shut our eyes to the fact that the Mc- 
Kinley law for the fiscal year ending June 30, 1S94, produced 
a deficit to the United States treasury of $70,000,000. They 
a.^k us to shut our eyes to the fact that neither the labor- 
ing man of this country nor of Europe has derived any 
substantial benefit from the tariff because the employer 


is always permitted to fill his shop with cheap labor. They 
ask us -to shut our eyes to the fact that the tariff is n© 
longer a matter of theory but a matter of history. It has 
been tried and it has been found wanting. Consequently 
With the adherents of McKinley it is a question in this 
campaign of seeing how often they can fool the people. 

Both Mr. Schurz and Mr. Cockran have been avowed 
enemies of this tariff. They cannot and do not offer it 
as a remedy for any of the ills of the land, and having 
no other remedy to offer and seeing no prospect of a 
change for the better under existing policies, they simply 
tell the patient that if he will only lie still he will suffer 
less than If he attempts to bestir himself. They have no 
remedy to suggest, but they strenuously object to permit- 
ting the people to do anything toward helping themselvea. 

That bishop who told an anxious negro that there w’er* 
only two ways open for him, and that one led directly 
down to bell while the other led away off to eternal damna- 
tion, was evidently the man who furnishetl the text for 
both of these speeches. The negro scratched his head and 
replied: “If dat’s so, massa, den dis chile takes to de 
woods.’ And if Mes.srs. Schurz and Cockran are correct 
then the American people will have to take to the wood*. 

NOT A LOCAL QUESTION. 

In considering the question as to whether the demone- 
tization of silver in the world reduced prices they 
shrewdly leave Europe out of consideration, shut their 
eyes to the fact that the effects produced there are the 
same as those produced here, treat the whole question as 
though it were local to our country, and then argue that 
inasmuch as there had not been many silver dollars coined 
in our country and those that were coined went abroad, 
because of the fact that they commanded a premium of 
2 per cent, therefore, the demoiietization of silver In the 
United States could not have affected prices because there 
was scarcely any silver here to drive out of circulation. 

Let us first look at this theory. The greatest markets 
for most of American products were in Europe; whatever 
affected prices of commodities which were shipped there 
in the end affected the prices of commodities at home. 
Let us suppose that there was no silver in circulation in 
the United States, that as Mr. Schurz intimates. It was all 
in circulation in Europe, then it was doing the work of 
money in Europe, it was doing a work there which would 
otherwise had to have been done by gold; it practically 
displaced that much gold over there and permitted the 
gold to flow elsewhere. It increased the volume of money 
in the world, and in that way affected prices for the world, 
not simply in any one country, but for the world. 

Under those conditions, so far as prices were concerned, 
it made little difforenee whether the owners of silver 
bullion brought it to our mints to be coined or took it to 
European mints to be coined, jln either case it helped fiO 
swell tlie volume of money in ,the w'orld, it helped tn, do 
the busine.ss of the world and helped to fix the st-andard 
of prices of properly, Mr. Schurz knew this fa*ct, and I. 
therefore, submit that when he, at the or-d:set, tried to 
treat the question as a local one and tfJ conceal from 
view the fact that if silver! was circula*ting in Europe It 
was just as good as if it w('ere circiu’iating here, so far as 
prices w'ere concerned, he was no*v making a fair presenta- 
tion of the. question. I do[n>ot care to use severer lan- 
guage, although I am awane that if a man speaking for 
the silver side w'as to pursi^'o such a course he would bo 
vehementlj' denounced as a/ pettifogger. 

COINAGE OF bVER MONET. 


- 

:■ 








0 


Now let us look at the f 
of silver in this country. 1 
time, suspended the co.^naev 


9 in reirard to the coinage 
true that Jefferson, for a 
silver dollars. The reason 





i 




•ands of patriotic men to have had presented some balm 
for the Ills of our land, and as I love my country more 
than party or honors, I am sorry to have to say to you 
that In these long speeches, containing, as we are told, 
the law and the gospel of' the gold standard, there is not 
a line, not a sentence, not a syllable that offers any hop© 
to the American people. That we are in distress is not 
denied in either speech, but there Is no suggestion of a 
remedy. The substance of the whole argument is that we 
will be better off and suffer less if we keep quiet, and that 
the remedy proposed by the Chicago platform would only 
make matters worse instead of better, or, as Mr. Schurz 
puts it. the application of this remedy would be jumping 
out of the frying .pan into the fire, and if he is correct 
in this,^ then the only question which is left for the con- 
sideration of those of our people who are dying in the 
frying pan is whether they would be any worse off in 
the fire. 


ask us -to shut our eyes to the fact that the tariff is n« 
longer a matter of theory but a matter of history. It has 
been tried and it has been found wanting. Consequently 
With the adherents of McKinley it is a question in this 
campaign of seeing how often they can fool the people. 

Both Mr. Schurz and Mr. Cockran have been avowed 
enemies of this tariff. They cannot and do not offer it 
as a remedy for any of the ills of the land, and having 
no other remedy to offer and seeing no prospect of a 
change for the better under existing policies, they simply 
tell the patient that if he will only lie still he will suffer 
less than If he attempts to bestir himself. They have no 
remedy to suggest, but they strenuously object to permit- 
ting the people to do anything toward helping themselves 

That bishop who told an anxious negro that there wers 
only two ways open for him, and that one led directly 
down to bell while the other led away off to eternal damna- 
tion, was evidently the man who furnished the text for 
both of these speeches. The negro scratched his head and 
replied; “If dat’s so, massa, den dis chile takes to d© 
woods.” And if Messrs. Schurz and Cockran are cori’ect 
then the American people will have to take to the wood*. 

NOT A LOCAL, QUESTION. 

In considering the question as to whether the demon®, 
tization of silver in the world reduced prices they 
shrewdly leave Europe out of consideration, shut their 
eyes to the fact that the effects produced there are th* 
same as those produced here, treat the whole question as 
though it were local to our country, and then argue that 
inasmuch as there hod not been many silver dollars coined 
in our country and those that were coined went abroad, 
because of the fact that they commanded a premium of 
2 per cent, therefore, the demoijetization of silver in the 
United States could not have affected prices because there 
was scarcely any silver here to drive out of circulation. 

Let us first look at this theory. The greatest markets 
for most of American products were in Europe; whatever 
affected prices of commodities which were shipped there 
in the end affected the prices of commodities at home. 
Let us suppo.se that there was no silver in circulation in 
the United States, that as Mr. Schurz Intimates, it was all 
in circulation in Europe, then it was doing the work of 
money in Europe, it was doing a work there which wonld 


TARIFF NOT THE CURE 


The straight-out adherents of McKinley have a panacea. 
They realize the unsatisfactory conditions in our land 
and propose to remedy them by an Increase of the tariff. 
They feel that some hope must be offered to the American 
people, and having nothing else to present they ask us to 
again try the idea of increasing the tariff tax. 

They ask the people to shut their eyes to the fact that 
the if.stress from which we suffer exists all over Europe 
as well as this country; that it exists in the countries hav- 
ing a high tariff and in countries having a moderate tariff 
and countries having no tariff at all, and is clearly due to 
some cause that has no connection with the tariff. They 
ask us to shut our eyes to the fact that we have already 
a very high tariff and that the decline in prices began many 
years ago under a still higher tariff and that it went right 
on under the highest tariff ever known in this country, 
called the McKinley tariff. 

They ask us to shut our eyes to the fact that in 1888 
the conditions in our country were unsatisfactory and that 
the remedy that was then proposed as a cure was an 
increase of the tariff, and that this immediately followed 
the election of Mr. Harrison, when the famous McKinley 
bill was enacted. They ask us to shut our eyes to the 
fact that under that law wages were not raised, prices 
kept steadily falling and that immediately after its enact- 
ment in 1890 th*ere was a marked reduction in wages in 
several hundred of the largest manufacturing establish- 
ments of this country. 

They ask us to shut our eyes to the fact that while the 
tariff shielded the manufacturer in some cases against 
competition it permitted him to fill his factories .with the 
cheai)est kind of pauper labor brought from the fields of 
Europe, and thus, instead of raising the wages of the 
American workman not only reduced their wages but drove 
them out of employment. They ask us to shut our eyes 
to the fact that it was in the spring of 1892. while the 
McKinley law w'as in force and while Mr. Harrison was 
President, that the famous Homestead tabor riots occurred, 
being among the most bloody that ever took place in this 
country: that at that time the conditions of the laborer 
were rapidly getting worse and the prices of American 
products were steadily falling. 


They ask us to shut our eyes to the fact that the Mc- 
Kinley law for the fiscal year ending June 30, 1S94, produced 
a deficit to the United States treasury of $70,000,000. They 
a.=k us to shut our eyes to the fact that neither the labor- 
ing man of this country nor of Europe has derived any 
eubstantial benefit from the taxiff because the employer 


iVER MONET, 


qNow let us look at the f 
of silver in this country. 1 
time 


» In regard to the coinage 
true that Jefferson, for a 
'Silver dollars. The reason 


suspended the co.inag^ 






( 3 ) 


'i 




WHS that half dollars wera a full lecal trnde* for any 
aj^ount, juBt as much as dollars were, and inasmuch as 
■e country was new and poor it was thought that half 
dollars would be more convenient in circulation than dol- 
’PW5, and inasmuch as they could be used in payment of 
w bts the same aa dollars it made no difference, but the 
f Inage was on the eame basis as that of gold and any 
in having silver bullion could convert it into money Just 
t % same as though it were gold, and the treasury tables 
gij-en out at Washington show that from 1806 down to 
18'.'3 there were $154,318,071 of silver coined in this country. 

Tn 1871 there were 1,117,127 of silver dollars coined — not 
subsidiary coins, but dollai's— and in 1872 there were 1,118,600 
si'. ver dollars coined, being nearly twice the number ever 
before coined in one year. Bear this in mind, the two 
years before silver was stricken down there w'ere nearly 
twice as many silver dollars coined as in any previous 
5 ear. Mr, Schurz knew these facts, and yet he presents 
his figures in such a way as to make the impression that 
no silver had been coined in this country, and therefore 
w* demonetized nothing. 


that Is accurate and It tells an entirely different story 
in regard to the amount of money we have in our country. 
The report Is given out by the comptroller of the cur- 
rency, who has supervision of the national banks. For 
several years past the comptroller has been sending a 
request to every bank in the United States, national, state 
and private, to report the amount of money they had on 
hand at the close of business on a particular day and to 
state W'hat it consisted of. There are In the United States 
a little less than 4,000 national banks and about 5,000 state 
and private banks. Substantially all of these banks have 
responded to the inquiry and I have here the comptroller’s 
report for the year 1895, and on page 15 he gives a sum- 
mary of these reports. I will give you this in the lan- 
guage of the comptroller: 

“The cash held by national banks on July 11, and by 
other banks at about that date, amounted to $631,111,290, 
cla.ssified as follows: Gold. $127,621,099; silver, $16,594,037; 

specie not classified, $19,298,363; paper currency, $342,733,129; 
fractional currency. $1,023,442, and cash not classified, 
$124, 836,220,’* 

The reports for several prior years were practically the 
same. At about that time there were in the United States 
treasury, all told, $329,517,713 available for circulation. 
Adding this sum to what there was then in all the banks 
of the United States, it makes $950,629,000. This const!- 
tuted all of the money in sight In this country, except 
what there was then in the pockets of. the people. There 
Is no way of ascertaining definitely just what this would 
amount to, but. considering the fact that we had had 
several years of panic and idleness and distress, during 
which time most of the little savings liad been used up, 
and considering the further facts that in recent years 
building associations have been formed in every village 
In the land, and the money that used to be saved or hoarded 
in a small way was drawn out and absorbed by these 
building associations, and that we have banks In almost 
every village in the land, and that all business men deposit 
every day. so as not to run the risk of leaving much 
money In their stores over night, it is apparent that the 
amount of money then in the pockets of the people was 
not large. 

Good judges have asserted that when you take into 
consideration all of the poor laboring classes of this coun- 
try and of the colored people of the south, and the fact 
that farmers had very little money, that an average of 


PER CAPITA CIRCUIJ^TION 


;;;^lLit--and sometimes copied in the reports of other 
branches of the treasury, but they emanate originally 
from the office of the director of the mint, and they are 
not only wrong, Lut are well known to be tvrong. In his 
report for the year 1892 the director of the mint explains 
the origin of these tables. They ascertained what specie 
the e was in the country at the time of resumption, and 
the have added to it year by year the coinage and w^hat 
tl f custom-house records show to have been imported, 
an' ■ they have deducted only what the records show to 
hf i been exported, and they assume that all the balance 
still in circulation. 

*..ey made no allow'ance for what was carried over our 
Souihern boundary In a quarter of a century unrecorded, 
nor for what was carried over our northern boundary 
during that time unrecorded, nor of what was carrierl to 
China during that time unrecorded, nor for what was 
during that time, nor for what w^as used in the arts 
1 quai’ter of a century without a recoid having been 
. of it, and they make no allowance for what was 
; ^„.ed to Europe In the pockets of American citizens 
'ling abroad and of which no record is made; yet in 
-of his reports the director of the mint says it was 
’---atecl that the American travelers in Europe during 
■ear of the Paris exposition spent $90,000 000. Of course 
lost of that we may presume was in the shape of 
-3 of credit and therefore a record was made of it, 
record w’as made of what they carried in their 
^ »;ts. Thus, you see that the tables become utterly 

less. 

n, in regard to paper money, they a-ssume that every 
iiuua.. that was ever issued by the government and is 
not shown by the records at Washington to have been 
canceled Is still in circulation, a proposition too absurd 
to be discussed. 

THE ACCURATE "" URY REPORT. 

But the treasury depar Yea out another report 




j 








not a safe counsel. But in either case It is apparent that 
so much of his argument as was based upon the alieged 
amount of money we have in this country must fall to 
the ground. 

The fact is, there is not enough money in this country 
at present to do its business. In all of the agricultural 
states of the south, the Mississippi Valley and the west, 
there is the greatest scarcity cf money. The banks are 
unable to furnish what is needed, and even in the money 
centers a very little disturbance renders the banks help- 
less. Recently W'e had what is known as the “Diamond 
Match stock speculation.” and a collapse followed, and 
60 seriously did this single speculation strain the money 
market of this great city, with all of its large banks, that 
many of the banks had to refuse credits to their custom- 
ers in legitimate business, and the banks, acting together, 
forced the Stock Exchange to close, so that there should 
be no market quotations on Diamond Match stock, for 
fear that otherwise a number of banks w'ould be unable 
to meet their obligations and be ruined. A few years 
ago the banks of New York that are perniciously active 
In this money agitation actually refuse*! to pay their obli- 
gations because they had not the money with which to 
do It, and forced the public to take clearing-house cer- 
tificates. 

Mr. Schurz says there are oceans of money lying idle, 
and then in another sentence he says that gold is now' leav- 
ing our country and going to Europe because it finds 
profitable employment there. Naturally you ask If there 
are oceans of money lying idle in those money centers, 
then how can money going there from here find profitable 
employment there. He is no doubt correct in this, that 
there is congestion in money centers, but it is because of 
the constant downward tendency in prices which pre- 
vent.s prudent men from embarking in enterprises and 
using money for legitimate .purposes. The heart is con- 
gested and the extremities are cold, a conditio* which 
aTw'ays follows when a large portion of the blood is taken 
from a patient. 


COUNTRY’S HOLDINGS OF GOLD TOO LIMITED 


Tn passing, I call your attention again to the fact that, 
on the 11th day of July, 1895, all of the banks in the 
United States of America together held only $127,629,009 of 
gold, and that sum, added to the hundreds of millions of 
gold that are supposed to be constantly in the treasury, 
constituted all the gold there was in sight in the United 
States. No sensible man now claims the poor people are 
hoarding gold; the fact is that even rich people rarely 
get to see it. In depicting the horrors w'hlch will come 
upon our country in the event of the election of Mr. Bryan, 
Mr. Schurz points out in a thrilling manner how $600,000,000 
of gold would instantly take wings and vanish. Other gold 
standard orators have dwelt loud and long upon the van- 
ishing of $600,000,000 of gold. It is one of the stock argu- 
ments met everywhere, and it is iterated and reiterated 
by the bankers themselves. 

Now', in view of the facts published by the treasury 
department itself, and which will not be callenged by 
gold standard people, I am warranted in asserting that 
these bankers know that there are scarcely $200,000,000 of 
gold in the entire country. Including what there is in the 
United States treasury. They know that if every dollar 
of gold were withdrawn from all the banks in this coun- 
try it would make only a little over $127,000,000. When they 
therefore try to make the impression that there W'ould 
be a contraction of $600,000,000 their conduct is in keeping 
with the whole history of this gold standard movement; 
that is, it is one of misrepresentation, deception and fraud. 

These bankers further know', and Mr. Schurz knows, 
that, no matter who is elected President, so long as they 


1 


( 5 ) 


will buy as Rreat an amount of commodities as ever. Sil- 
ver occupies the same relation to the, - products of the 
earth and to labor today that it did before. It is gold that 
has gone up. The law, by striking dowm the competition, 
has given gold a monopoly. It protects gold against com- 
petition. Practically, the gold dollar is a 200-cent dollar. 
Nominally, it still lias only 100 cents in it, but it takes 
200 cents’ worth of commodities to get one, when meas- 
ured by bimetallic prices. 

Consequently, we find, first, *that there has been no in- 
crease in the production of silver when compared with the 
Increase in the production of gold, and, secondly, we find 
that silver has not fallen when compared with property 
and the products pf labor; therefore the entire fabric of 
Mr. Schurz’s argument must .fall to the ground. 

WAGES AND THE RATIO. 

Mr. Sehurz next tried to convey the impression that 
wages have not fallen, and were therefore not affected by 
the demonetization of silver; and he says that wages have 
risen more than 60 per cent since ISG^. See the ingenuity 
of this and ask yourselves whether this is a fair way 
of representing that question. All the world knows that 
wages have nearly doubled since 1860. Question is, 

how have wages been affected by the fact that this country 
and Europe demonetized silver and reduced th,e volume 
of money in the world between 1873 and 1879? Had he 
been candid he w'ould have compared the wages for say 
twelve years prior to the general demonetization with 
wages for twelve years after that general demonetization 
W'a.s accomplished. 

This subject of W’ages w^as carefully inquired into, in 
the year 1891, by a committee appointed by the United 
States senate. This committee made a thorough investi- 
gation. John G. Carlisle, the present secretary of the 
treasury, w^as a member of that committee. It made a 
long and full report, and it showed that between 1840 and 
1873 wages had just about doubled, and then the report 
says; "After 1873 there was a marked falling off.’’ The 
report goes on and shows that toward 1880 there was a 
slight rise in wages above the point they had recently 
fallen to, but never reached the point they had occupied 
before, and that soon thereafter a decline set in, which 
continued. 

Mr. Sehurz was once a member of the United States 
senate, and the investigation by this committee on the 
subject of wages must have attracted his attention. If 
he was tho-rough in his investigation he must have seen 
•this report. Had he been thoroughly candid he would 
hot ha\ e tried to make the impression that because wages 
had risen between 1860 and 1873 therefore they were still 
as high as they ever were. The fact is that there was a 
great fall in wages between 1873 and 1880, and there was a 
slight rally in 1880 due to causes which I will explain 
presently. This lasted for a comparatively short time, 
and since that time there has been a steady decline in 
w'ages. Wages and prices must on the average go hand 
In hand. Dabor creates property; if property must be 
sold for low prices then labor cannot be paid high wages 
for creating it. This is axiomatic. 

ARGUMENT Of’ MR. SCHURZ IS FAI.SE. 

Mr. Sehurz tells us that if the demonetization of silver 
had anything to do with the fall of prices, then the fall 
shoxild have come instantly. I ask you to consider that 
statement and then tell me whether it is not contrary to 
the universal experience of mankind. Owners of property 
do not accept lower prices until they are obliged to. No 
matter what cause may be operating to resluce prices 
owners of property hold it up as long as they can; they 
hold it up until the debt.s press too hard and the strain 


gets too severe, when they are obliged to let it go. So 
that the decline is never instant, and in the very nature 
of things comes gradually, the weaker holders giving away 
first and the stronger holding out till the last. 

Further, silver was not demonetized by all of the coun- 
tries at once. Germany set her face tow'ard demonetiza- 
tion in 18(1, but did not enact her law until 1873; our gov- 
ernment acted in 18«3, the other nations follow’ed later. 
Holland acted in 1875, Russia in 1876, and Austria did not 
adopt a gold standard until 1879. It is true that owing to 
the fact that Germany, Italy and some other countries 
drew heavily upon the principal gold market of the w'orld, 
which is London, there were serious monetary disturb- 
ances in London and some portions of Europe almost 
every year after 1873, and prices, and consequently busi- 
ness, were seriously affected in Europe during this year. 

All of the leading financial writers of England refer to 
this fact, and although they insist on maintaining the 
gold standard for England, because she is a creditor nation, 
they attribute this fall in prices, this disturbance in busi- 
ness to the acts of the governments of Europe in striking 
down silver by law and establishing a gold standard, 
because these acts of government affect the supply and 
demand. By destroying silver they reduced the supply 

of money in the world. By adopting a gold standard they 
increased the demand for gold. 

WHY DEMONETIZATION WAS NOT FELT AT ONCE. 

In our count-ry there were a number of reasons why 
the demonetization of silver was not immediately felt, 
h irst, the government had between 1866 and 1869 reduced 
the volume of paper money we had in this country, which 
was all the money we had, from one thousand six hundred 
and forty odd millions down to less than eight hundred 
millions, and had issuetl bonds instead. 

This reduction in the volume of money then in circula- 
tion in our country was followed by a corresponding fall 
in prices which had been based on the former volume 
of paper money. The fall was so great that debtors were 
unable to meet the debts which had been contracted on 
the basis of prices formerly prevailing and the panic of 
1873 followed as a necessary result of that. By issuing 
more bonds the government got coin and we resumed 
what were called specie payments. 

When we began to rally from the panic of ’73 Europe 
was feeling the effect of the demonetization of silver but 
in our country v\'e found that the balance of trade between 
us and Europe toward 1880 was greatly in our favor so 
that according to the treasury tables there were added 
to the volume of money in our country from that source 
several hundred millions of dollars. Our gold mines w^ere 
productive during that time, and there was a large addi- 
tion to our circulating medium from that source. 

Then the Bland-Allison act, which partially resjtored 
silver, was enacted in 1878, and required the secretary of 
the treasury to coin not less than two nor more than 
four millions of dollars per month. The effect of this 
was to add anywhere from twenty-five to forty-eight mil- 
lions of dollars per year to our currency and thus helped 
to keep up prices. The increase in the volume of money 
in our country, according to the treasury tables, during 
these years was so great that prices and wages rose cor- 
respondingly from w'hat they had been after the panic 
of 18(3. But these causes were local and did not last and 
in the course of a few years the general depression which 
had already spread over Europe, following the demoneti- 
zation of silver, began to spread over this country, and 
from that time on has become more and more Intense. 

FALLING PRICES THE RESULT. 

Both Mr. Sehurz and Mr. Cockran treat the whole sub- 


.1 


I 


... 

( 6 ) ; 


J«ct of falling prices as If It were simply a scramble be- 
tween different cltlzens -between seller and buyer. If this 
were all, then the matter would not be of such transcend- 
ent and far-reaching Importance, and would not so directly 
affect the welfare of the whole people. Neither grasps 
the great principle that falling prices first disturb busi- 
ness in Its entire circle and affect the property of both 
rich and poor, and that when prices go very low they 
destroy the purchasing power of the great producing and 
farming classes, and that this destroys what we call the 
home market and forces manufacturing establishments 
to shut down, because there are not sufficient buyers to 
take what they make, and thus forces labor into Idleness 
and destroys the purchasing power of labor and produces 
a general paralysis in the land. No matter what may be- 
the cause of falling prices, their effect upon the community 
is more than a mere scramble between buyer and seller, 
and here is where all advocates of the gold standard fail 
to rise to the occasion, fail to meet the requirements of 
the case. Their treatment of this question is almost flip- 
pant. 

In attempting to account for the fall in price of prop- 
erty Mr. Schurz selects wheat as an Illustration, and he 
attempts to show that there has been a great increase In 
the annual production of wheat; that we have not only 
opened the whole northwest, which is producing wheat, 
but that our farmers have to compete with the wheat of 
India, Argentine Republic and of Russia, and he assumes 
that therefore the price of wheat had to fall. 

There are three things to be said in answer to this. 
First, increase in production does not produce a fall in 
price, provided there is an equal increase in consumption. 
This is self-evident, and Mr. Giffen, the statistician of the 
British board of trade, has on different occasions pointed 
•ut that for more than fifteen years prior to 1873 the 
increase in the production of nearly all commodities in 
the world had been greater on the average, year by year, 
than the increase has been in any year since 1873, and 
yet, as h« says, during all of those years prior to 1873 
prices kept constantly rising, notwithstanding the enor- 
mously increased production, while since 1873 prices have 
been steadily falling, notwithstanding the fact that .the 
Increase was not as great as it formerly was. 

The second observation Is that wheat has not fallen 
in price any more than all other commodities. It has 
fallen no more than all property has fallen; has fallen no 
more than wages. It is not contended that Russia, India 
and the Argentine Republic have entered into competition 
in the production of all other products which our people 
put upon the market. These two points show that Mr. 
Schurz is entirely wrong in his theories. 

SCHURZ VS. FACTS. 

The third observation is that he is entirely wrong in 
his facts. The truth is that there has been scarcely any 
Improvement in machinery for raising and harvesting 
wheat in the last twenty years, and the statistics show 
that there has been very little increase in the production 
of wheat in the United States in that time. More is 
raised In the northwest, it Is t'-ue, but very much less is 
raised in the central and eastern states. 

I have endeavored to get the most reliable data on 
this question from the reports of the various boards 
of trade and the government reports, which are recog- 
nized as the highest authority on this subject. The gov- 
ernment reports show' that the wheat crop for 1878 was 
more than 420,000,000 bushels, and that for the year 1896 
the crop does not exceed 400,000,000 bushels. In fact, if 
the Increase in population is considered, the wheat crop 
has constantly grown less in proportion to the consuming 
population ever since 1878, The wheat crop of this year is 


about 66,000,000 bushels short of what the average haj 
been since 1878, and is 20,000,000 bushels less than it W'as 
that year. So that In spite of the opening of the new 
fields In the northw'est there has been no greatly increased 
production of wheat in this country, and w’hen compared 
with the consuming population there, has been an actual 
falling off, yet twenty years ago the price of wheat was 
more than twice w’hat it is now. 

Again, In referring to the foreign wheat he endeavors 
to make the impression that there has been a great in- 
crease in production, and artfully selects a recent year 
of the highest production and compares that with an 
earlier year having the lowest production. The fact L. 
that the world’s wheat crop has remained substantially 
the same for sixteen years.' In 1880 the world’s production 
of wheat was 2,280,000,000 bushels. In 1885 it was 2,108,000,000 
bushels, and that w’as the lowest crop of a number of 
years. In 1895 the crop was very large and amounted to 

2.553.000. 000 bushels. This year the world’s production is 

120.000. 000 less than last year, and the total production of 
the world is smaller than it has been for six years, yet 
wheat is lower than ever before. 

In addition to this the crop of rye, which, together with 
wheat, furnishes the bread of the world, is 170,000,000 bush- 
els short, yet in spite of that fact the price of rye has 
fallen steadily w'ith that of wheat. It may also be re- 
marked that w'e have the smallest oat crop that we have 
had for many years, and yet oats is worth less than one- 
half w'hat it was several years ago. 

Now, why is it that with the wheat crop of the world 

120,000,000 bushels short and the population increasing 
enormously and the rye crcp 170,000,000 bushels short the 
price has reached the lowest point that it has ever reached 
in the history of the country? 

ENHANCING PURCHASING POWER. 

In order to get a more comprehensive view of the whole 
sxibject let us see what are the fundamental laws govern 
ing finance. There are two theories at present advanced 
in regard to the purchasing power of money. One is what 
is called the cost of production theory, under which sup- 
ply and demand have but little influence, and the other ■ 
may be called the quantitive or volume of money theory. 
This theory is based upon the law of supply and demand. 

The cost of production theory has been seized upon by 
the gold -standard advocates of this country and is used 
as the basis of their arguments. It simply means that it 
takes on the average a definite amount of labor to pro- 
duce a gold dollar, and it is the cost of this labor, the 
average cost of producing the gold dollar, that fixes its 
purchasing pow'er, and after the dollar is once in exist- 
ence then its purchasing power undergoes comparatively 
little change. It will alw’ays buy an amount of property 
that is equal in value to the cost of producing the gold 
dollar, and the question of supply and demand has but 
little influence thereafter upon this dollar. It is prac- 
tically unchangeable and always the same, so say the 
advocates of the gold standard. 

Under this theory it does not matter whether money is 
plentiful in the land or exceedingly scarce. The pur- 
chasing pow'er of the dollar will always be about the 
same. It does not matter whether there are a thousand 
men scrambling to get the dollar, because they must have 
it, or w'hether there are only ten men scrambling to get 
it, the dollar w'ill remain practically the same. It will 
buy no more property when a thousand men are strug- 
gling to get it than it will when only ten men are strug- 
gling to get it, and, of course, if this theory Is correct, 
then the demonetization of silver had no effect upon the 
world’s prices of products and property. If it is correct, 
you can wipe out one-half of the money that now exists 




In th® world and It will not affect price®. The purchasing 
power of the dollar being determined by the cost of pro- 
duction. it continues to be the same. 

I imagine I hear some man say: "Why, that theory is 
contrary to the experience of the whole commercial world." 
Well, my friend, that makes no difference; gold standard 
advocates don’t cart) about the experience of the com- 
mercial w’orld. It is tru4? that under this theory the gold 
dollar should have become very cheap in recent years 
because there is scarcely an Industry, scarcely a field of 
production in which such tremendous improvements have 
been made as in th^t of gold mining. The labor-saving 
machinery lntroduce<l in the last quarter of a century in 
this industry is equal to if not greater than that applied 
tc farming. It is exactly the same as that applied to 
the mining of silver. It costs less on the average to mine 
a gold dollar now than it ever did before, and yet a gold 
dollar will buy twice the product and twice the property 
that it did a quarter of a century ago. 

Let me say in regard to this theory that the great 
statesmen and great financiers of Europe never enter- 
tained it for a moment; they brush it aside with the 
wave of their hand and look upon it as being ridiculous. 


CHECKS, DRAFTS AND BANK NOTES. 

It is true thqt about 95 or 96 per cent of our business 
is done by means of checks, drafts, bank notes and other 
substitutes for money, and that only about 4 or 5 per 
cent of our business is done in actual cash, and this fact 
has misled many men, and we hear men argue that there 
is but little money needed; that other things have taken 
the place of money, and therefore It does not matter 
whether there is much money or little money. 

But these people lose sight of two things. First, that 
after all these checks, drafts, bank notes and other sub- 
stitutes for money rest on money. Everyone admits that 
you must have some money, even though it be a little, 
to base these things on. No man has yet claimed that 
you can do away entirely with money and use these sub- 
stitutes and get along. This being so, it necessarily fol- 
lows that there is a limit to the amount of credit which 
a dollar can carry. That is, there is a limit to the amount 
of drafts, checks and bank notes that can be based upon 
a dollar. If this were not so, then if there were only 
one single dollar In the world, all business in the world 
could be done on credits based on that one dollar. But 
there is a limit to it. 

The second thing that is lost sight of by those people 
is that the enterprise, Industry and business of the world 
is always so great that it exceeds the credit which a dollar 
can carry. In other words, the enterprise, the business 
and commerce of the earth are always carried to the 
uttermost point possible. They load every dollar up with 
all that it can carry, and therefore when you strike out 
any dollar from under this load a certain part of the 
load must come down. When the amounts of checks or 
drafts are increased they do not release a certain amount 
of money and cause it to lie idle; the enterprise of men 
will immediately reload all the money that is so released 
with every bit of credit it can carry. That is always the 
condition of the commercial and manufacturing world in 
prosperous times. It therefore follows that when you re- 
duce the amount of money in the world under these con- 
ditions, it Is a much more serious matter than it would 
be if there were not these checks, drafts and other evi- 
dences of credit, because you destroy not only the given 
amount of money, but you pull down so much of the 
whole fabric of credit, or business, if you please, which 
has rested on that money. 


SUPPLY AND DEMAND 


The other theory rests chiefly on the law of supply 
and demand. Under it the total amount of money in the 
world forms the standard of measure of prices. When 
there is a large amount of money in circulation among 
the people prices are high; when money is exceedingly 
scarce among the people then prices are low. Under this 
doctrine if you wipe out one-half of the world’s money 
prices fall correspondingly on the average. If you double 
the volume of the world’s money prices will on the aver- 
age double; that Is, the general tendency will be that 
way. The price of any particular article or piece of prop- 
erty will again be aifected by the law of supply and de- 
mand as relates to it. 

The volume of money forms what may be called the 
line for prices. It is horizontal if money is steady; it 
inclines upward if meney is increasing in volume; It in- 
clines downward if money Is shrinking in volume, and 
the general tendency of prices will be to move along this 
line, ^but the supply and demand In case of different 
articles will cause the price of those articles to from time 
to time either come slightly above or drop felightly below 
this line. 

This theory or law, like the law of gravitation in the 
physical world, is in harmony with and explains nearly 
all financial phenomena. When carefully studied it will 
be found running through all the centuries and producing 
the same results everywhere. Under this law the demone- 
tization of silver had to affect general prices throughout 
the world. That is, it had to lower the general level of 
prices, and this was the view which nearly all of the 
great statesmen and financiers - of Europe took of the 
matter at the time. 

But that is not all. Under this law two men require 
more money than one man, a thousand require more than 
fifty do. In other words, as population increases 
there must be a corresponding increase in the vol- 
ume of money or there will follow a practical shrink- 
age, that Is there will be less money per capita. Formerly 
there was added every year to the w’orld’s stock of monev 


FREE COINAGE THE REMEDY 






if you have no property or any collateral ?'• That ques- 
tion Is purely American and shows that in some things 
at least we are yet new. It needs but a moment's reflec- 
tion to see that the additional money will get into cir- 
culation just as the money that is in circulation got there, 
and that when men again coin silver bullion into dollars 
or get certificates for it which are legal tender, which 
can be used in paying duties at the custom-house, which 
can be used in paying debts, they are not going to let that 
money lie idle, because it will not make it profitable any 
longer to have it so. 

Money will cease appreciating in value then and they 
will go to building houses, building shops, building rail- 
roads, manufacturing and doing businessf they will start 
activity In a thousand channels and a thousand fields. 
That will be the result. There will be an immediate de- 
mand for engineers, for skilled men, for clerks, for me- 
chanics and for day laborers, and instead of laborers being 
obliged to tramp around the country in search of work 
which they cannot find, they will be sought for at their 
homes and requested to come over and go to work. The 
man who has nothing to sell except his muscle will find 
a market for that muscle. The man who has nothing to 
sell except skill will find a market for that knowledge, 
and very soon the whole community will feel the vivifying 
and the electrifying effect of an increase of blood and 
vitality in its veins. 

CANDIDATE M'KINLEY QUOTED. 


of a number of other great economists and financiers^ 
men who for years have been assisting in the manage^ 
ment of the world's affairs, who for years have had their 
fingers upon the pulse of the commerce and the business 
of the earth, who have watched the circulation of its blood 
and have felt Its heart beats; men who are not theorists 
but who are first students and then practical men, and 
j ou .would be astonished to see how their views are ail 
in accord upon this greet question. They hold that the 
law of supply and demand does apply to monej’’. They 
hold that when the governments by law demonetize silver 
or wipe out any other actual money the governments 
thus by law reduce the world's supply of money. They 
hold that when the governments adopt a gold standard 
and make it the only legal tender money the governments 
by law increase the demand for gold, because by reasoo, 
of the law more people must thereafter have gold than 
formerly had to have it. 

INCREASING DEMAND FOR GOLD. 

The work that was formerly done by silver has there'* 
after to be done by gold, and the necessary conseauence 


RESTORE PURCHASING POWER. 

We insist that according to this same law the restora- 
tion of silver will tend to again raise prices and again, 
restore the purchasing power of the farming and pro- 
ducing classes, and with the restoration of that purchas- 
ing power when the farmer can again spend money at the 
store, can again spend money at the shop, spend money at ^ 
the college spend money in travel, there will come uni- ? 
versal activity. The manufacturer will again find a mar- 
ket for what he makes, and labor will be employed and the 
tendency will be to revive universal activity and prosper-*^^ i 
ity. 

In his denunciation of what he calls "cheap money/*. V: 
Mr. Schurz says that no one can show a single instance;^/* 
where fluctuating value of money has not caused 
aster. 

In another connection Mr. Schurz states that the great- "" 
est prosperity this country ever enjoyed was from 1S50 
to 1860. He might have broadened his assertion and stated 
that this prosperity was not confined to America, but 
reached the whole civilized world, and that these years 


I would like to* read to you the language of Mr. Goschen, 
a great banker of London and late chancellor of the 
British exchequer, one of the great statesmen and finan- 
ciers of the world today. I should like to read to you 
the language of Mr. Giffen, the statistician of the British 
board of trade. I should like to read to you the report of 
the royal commission on gold and silver made to parlia- 
ment in 18S8. I should like to read to you the language 


( 9 ) 




marked a material increase in the prices of all the prod- 
ucts of human toil. It is abundantly proven that the 
years from 1850 to 1860 were years of growing wealth and 
IK)wer and increasing prosperity throughout the whole 
civilized globe. The cause of this Mr. Schurz does not 
understand, or seeks to conceal from his audience. 

Gold was d'iscovered in California in 1849, and about 
the same time the Australian and Ural Mountain mines 
were opdned. This brought during the next ten years 
the greatest accumulation of gold that the W'orld had 
ever seen. Up to 1850 the average annual production of 
gold in the world had been twenty or thirty million 
dollars In a few years it rose to five times that amount. 
During the ten or twelve years succeeding 1851 it is esti- 
mated that the stock of gold In the hands of civilized 
man was practically doubled. Then the bond holders and 
money changers of Europe, aided by eminent political 
economists, insisted that the world could no longer sus- 
tain bimetallism under the ratio of 15% to 1, but that it 
should be changed on account of the increase of gold to 
10 to 1, or even 8 to 1. and that still better the world 
should entirely demonetize gold because money was too 
plenty, and therefore i«*ic»s would be too high. 

Following the teachings of those interested, Belgium 
and Portugal demonetized gold, Holland partially demone- 
tized it, and other nations took steps in that direction. 
But in spite of all this, the old ration of 15% to 1 was 
maintained even w'ith the marvelous increase of gold, and 
the industry and enterprise of the w'orld, stimulated by 
the increased supply of meney, brought constantly rising 
prices and a degree of prosperity perhaps unequalled be- 
^re or since. No such increase in metallic money has 
ever been known befoi^ or since in the history of the 
world, and this great prosperity conceded and urged by 
Mr. Schurz must clearly have some relation to the stream 
of gold that was poured into the currency of the world 
during the decade which he cites as the halcyon years 
of the Republic. 

MINE OWNER AND FARMER. 

■ Like the common run of gold standard orators, Mr. 
Schurz appealed to the prejudice of his.audienee by bring- 
ing in the mythical rich mine owner. Now there are two 
things to be said in regard to the mine owners. First, a 
rich mine owmer is largely a myth. They are all in dis- 
tress. Second, the price of .the mine owner’s products 
have not fallen any more than have the prices of farm 
products. They stand exactly on the same level. As meas- 
ured by gold, silver sells for jusjt one-half what it did, and 
that is true on an average of all farm products. The mine 
owner has an enormous advantage over the farmer in 
^ breasting the hard times in this, that when he finds that it 
does not pay to operate his mine he simply shuts it up, and 
the people who suffer directly are the laborers who are 
thrown out of employmtmt, but the farmer cannot stop 
farming. No matter how low products go In price the farm 
has to go on as before. He must support his family there; 
he must make his taxes; l\e is obliged to go on cultivating 
his farm and raise more products' whether they bring him 
big prices or a little price. So that the mine owner in the 
first instance does not suffer as much as the farmer, and 
can protect himself in a manner that the farmer cannot. 
Therefore in the future I would suggest to the gold stand- 
ard orators that they drag in the rich farmer and use him 
as a bugaboo, as the man who is going to profit by the 
restoration of silver. But to show the utter want of con- 
sistency, if not of good faith, I call your attention to the 
fact that throughout the whole of Mr. Schurz’s speech he 
speaks of a 50-cent dollar. He describes the conditions 
that are going to exist after Mr. Bryan is elected and 
after the new regime has been introduced, and he tells you 


how silver dollars win be worth only 50 cehts under th# 
new order of things and the great injustice that will b0 
done to creditors by giving them dollars that are worth In 
the iparket only 50 cents. He dwells on this in a manner 
that is pathetic, and strange to say, he does this after hav- 
ing told his hearers that the mine owner was the man 
who was to be made enormously rich by the resoration of 
silver. Now if the mine ow'ner is to be made rich, it will 
have to be by raising the price of silver in the market, and 
if by reason of the Increased demand for silver and its use 
again as money the price of silver rises in the market, 
then there will be no 50-cent dollars. If all of the new sil- 
ver dollars can be used to do exactly the same work that a 
gold dollar would do, then it is self-evident that the gold 
dollar will have to come down from its high perch and be 
worth no more than a silver dollar. 

SAVINGS BANKS. 

During the last few years we have heard a great deal 
about the deposits in savings banks increasing. This alle- 
gation, like that to the rich mine owner and the fifty-cent 
dollar, is constantly harnessed up and made to do duty by 
the gold standard people and one would get the impression 
that instead of stagnation in industry and in business in 
this country there was the greatest activity and that all 
of our people were employed and that everybody was 
happy. But the fact is, that inasmuch as the savings 
banks pay a high rate of interest, higher than the ordi- 
nary commercial banks do upon deposits, people of large 
means in many cases deposit their money in the savings 
banks rather than in the commercial banks. They do this 
because money cannot be used profitably in business and 
as they do not desire to loan it permanently they put .lt 
into the savings bank, where it can be withdrawn on short 
notice and where in the meantime they get the highest 
rate of interest, so that instead of the large deposits in sav- 
ings banks at present being an indication that we are pros- 
perous or that our laborers are employed they show in 
themselves that capital cannot be profitably or safely used 
in business or in manufacturing or any of the great indus- 
tries of this country, 

PANIC OF 1893. 

Mr. Schurz attributes the panic of 1893 to the fact that, 
as he says: “The grave doubt arising in the public mind 
w’hether the government would be able to maintain the gold 
standard. We were then within a hair’s breadth of a very 
widespread bankruptcy of the banks and only the wisest 
management and the utmost effort of the clearing houses 
prevented it.” Now, Mr. Schurz is entitled to credit for 
being the only man in the world w'ho made the discovery 
that the pafiic of 1893 was brought about by the cause he 
named and he is entitled to the greatest credit because of 
the fact that he never ran a bank or a business or a man- 
ufacturing establishment or a railroad and was never en- 
gaged, so far 8.S W'e know% in any commercial business. 
He had an established reputation as a rhetorician and as a 
man who could make an equally good speech on any side 
of any question. If the panic of 1893 w'as due to the cause 
to which he ascribes it then we are liable to have panics 
of that character every year so long as the existing condi- 
tions continue, but, my fellow citizens, that panic w'as not 
local to the United States and the depression that fol- 
lowed from it is not local but exists all over Europe and in 
fact nearly all over the world and is most severe in the 
gold using countries. There was no doubt in the minds 
of the public at that time about England’s maintaining the 
gold standard, nor about Germany maintaining the gold 
standard, nor about the other countries that have recently 
adopted a gold standard maintaining it, and yet in all of 

those countries the distress and pai’alysis is even more 




( lo) 


•©YCre than it is in our own Mr ^ , 

^tent his idea In this country but hL 
^ worth nothing in lOurope. ' patent will 

bond sales. 

ssppsss 

.tfniir .t of profound peace in less than 

creased'm.ilo^SS!"" ot "to'^'support the"'"^ 

r::a?;"L -p°cL.y“r ™r;‘^ z: 

.. ' s»uppoft the government , as they had nionev in 

*h6 soJe purpose of malntulr.ing the gold standard bv the 

fhTrTcrlr'’ “ “‘"'S-Oohh” whSt “ 

. that thev 

that fs Tha ^ ^ metal which the debtor, 

' ^aw !l might select This has been the 

r^on« P'-actlce for centuries and the governments of 
*|Urope always acted upon It Mr. Schurz suggests no 

therefore, the 

gristing conditions are to be continued and if it was neces- 
•ary to Issue 5260,000,000 of bonds In the last three j'ears we 
'.n! ^®^!''‘^fted In assuming that It will be necessary to is- 

tm oonr that this 

L f think that this is the right 

.policy for our government to pursue? Every time a bond 

H issued the oppression of the men who toil is increased 

er to produced in the hanks 

SLw r t;ome out of the in- 

t7 It has to come from the products 

f f A K^°*v products of a countrv are cre- 

f/J. * Who make and culti- 

InfiViiyr^ operate railroads; the men who 

Julld cities, the men who do the work of the land, the men 

•eho make our civilization possible. For I say to vou that 
Jwallow-taU coats and big shirt fronts never' yet laid the 
foundation of empire; purple and fine linen never yet built 
p mighty state. Perfumed handkerchiefs and bright neck- 
ties are not the forces that sustain the flag of our country 
In time of peril. The people who have to pay the interest 
on these bonds and ultimately have to pay the principal 
yrhose sweat and whose toll has to produce the product 
to do It derive not one farthing's benefit from these bonds 
The men who get the benefit of these bond is.sues are the 
ci^s of people who manage by the aid of government to 
lick the cream and devour the fruit of other men’s indus- 
try. Lf 0 t the American people follow the s i^^ns rf 

©churz and our country will .become a bond issuing . ocu- 
try In perpetuity and the further down the % i.sta of time 
that the American patriot glances the darker will he the 
Cloud and the heavier will be the burden %>»hich his chi!- 
•ren must face. 

NATIONAL HONOR. 

Mr. Schurz and Mr. Cockran wring their hands in horror 
over what they call the prospect of sullying the national 
tionor and paying our obligations or the interest on our 
obligations In anything else than gold, and they point to 
he fact that in 1S90 Congress declared practically that it 
was the policy of this government to keep everything cn a 
gold basis, that the world had accepted this, and for us 
io disregard that declaration would place us in the iigiit 
6f repudiators and dishonest men before the world, just 
«ee how little substance it takes to enable a rhetorician to ' 
fill the air wdth ghosts. When W'as our great del»t created’* 
fiOng before 1890. And what kind of money did we get for 
the .bonds we sold? W'^e got paper for some and gold and 
eilver for the remainder. Neither Mr, Schurz nor any other i 
^mortal has been able to point out wherein you wrong a i 


“ "/gave you™ ’’a"’ “‘”'‘'5' «■»< 

ablf tn nn- ; any other mortal has been 

voL n-n orZ','' , man whtn 

nnr.T ^ Creditor in money that has exactly the same 

purchasmg power, that will buy as much property 

■ slmur.! nnf h' tJ^at a creditor 

* • ould not be paid m money the purchasing power of which 

' hcTe;l';r"TitTu'':“‘ »e1av“to 

■ thL ™ clZZ o .n ,1"“'°"'’“ in money 

■ T aeV I’lan the money that he gave the debtor 

(li^> American people whether it Is not 

' S Z , ^ “> "«■ nreaitZin mo Z 

' Whioh ? i"? Pinchaslng power as had the ironed 

. ahich he got from the creditor? It paying the cred Wr ii 

BONDS PAYABLE IN COIN. 

What are the facts? For both Mr Schurz and Wr c- t 

TZ'IIT “> ‘hem S,bstn“a..?a.; 

SfatPQ and interest-bearing securities of the Unitec/ 

states now in the hands of our creditors Z hL. a 

iorpuf •r'"^ PayableZor m 

buying one of those^h Z" “h^hlhly be deceived In 

> g one of those bonds, and, wdth the excention nf fUa. 

bonds issued during this administration. therZe Lt u2d 

tff Lhikersfaies^or ^ iridiviaual"^ 

bend ‘“L-he’=r;TtLtrth’-;“5Zvi„‘d’'r 

cie.st were payable in gold or silver at the option of the 

t’hJ*'nr"'vr^‘f remember that a little over a year ago 
the president was so bent on fastening the gold 

upon our country that he asked Congress to authorize the 
ssue of gold bonds, which he said could be Sed orft 
lower rate of interest, but Congress refused to do it 
Thereupon the government issued bonds of the same cha 
acter that it had formerly issued; that is, eoin bonds and* 
according to the president, they brought less mottvtn t?' 
market, because of the fact that they were nnt 
in gold. The hankers got them cheaper than thercttld 
otherwise have gotten them, by reason of the fact t hit 
they were payable in coin and not in gold. And vet m i k 
face of these well-known facts, Messrs. Schurz and Cotk! 
ran have the assurance to tell us that we will be guiltv of 
repiuhation, and of sullying the national honor. S we do 
not pay those bonds In gold. Suppose a man ^dvoLtitg 
the coinage of silver were to stand before an intelligent 
audience and make such an argument a.s that, what w'ould 
they call him? As I remember it. one batch ;f bond r wit 
«old m the market for about seventeen millions of dolto 
ess than the president assured us they would have brou^t 
had they been payable in gold; yet these bonds are Uke 
all other outstanding bonds that were sold cheaper by 
reason of the fact that they were payable in gold or ^ih-er- 
and instead of the national honor requiring us to pay those ' 
^onds &old, national honor, common sense and eternal 
justice alike forbid our paying those bonds in gold if to Pav 
them m gold will cost the American people one doflS 
more than it would to pay them in silver. If it is wrotl 
to unjustly withhold anything from the creditor that Ts^t 
him under the contract, then it is a crime to compel a 
debtor to pay something that he does not owe. 

GREENBACKS, ETC. 

But the bonds issued by the present administration war* 
issued for the purpose of redeeming greenbacks end treas- 
ury notes in gold, and w’© are told that to pursue any other 


(n) 


policy will be repudiation. Let us see. These ifreenbacks 
and treasury notes have been outstanding almost ever 
gince the war, and not one of the several hundred millions 
that are outstanding is payable In gold. But this Is not 
ail; The government has taken pains all along to tell the 
world exactly what the.se bills would be paid in. On March 
ISth, 1869, Congress passed what was called the “Credit 
Strengthening Act.” reading as follows: “That the faith 
of the United States is solemnly pledged to the payment in 
coin or Its equivalent of all of the obligations of the United 
States not bearing interest known as United States notes, 
and all the interest-bearing obligations of the United 
States, except In cases where the law provides they may 
be paid In a currency other than gold or silver.” Notice 
here the specific declaration made in 1869, that both tho 
non-interest bearing obligations and the Interest bearing 
obligations of the United States w’ere payable in coin, gold 
and silver. Then on January 14th, 1875, six years later, the 
specie resumption act was passed, to take effect January 
1st, 1879. It did not provide for resuming In gold, but for 
resuming in specie, which meant gold and silver. 

MATTHEWS’ RESOLUTION. 

Three years later, on the 25th day of January, 1878, the 
Senate passed a resolution which has become know’n as tho 
“Matthews resolution,” because It was introduced by Sen- 
ator Matthews, a Republican from Ohio, and the House 
passed the same resolution on January 28th. This resolu- 
tion reads as follows: 

“That all the bonds of the United States Issued or au- 
thorized to be issued under the acts of Congress hereinbe- 
fore recited are payable, principal and interest at the op- 
tion of the government of the United States, in silver dol- 
lars of the coinage of the United States, containing 412i,4 
grains each of standard silver and that to restore to its coin- 
age such silver coins as a legal tender in payment of said 
bonds, principal and interest, is not In violation of the 
public faith nor in derogation of the rights of the public 
creditor.” 

Consider this resolution a minute. It was Introduced by 
a republican and passed by both houses of Congress, and it 
expressly declares that all of the bonds already Issued and 
all that may thereafter be Issued under the acts of Con- 
gress were payable, principal and Interest In silver dol- 
lars. This resolution did not change the character of the 
bonds, nor of the obligation. It could not. It simply de- 
clared w'hat was the law at that time, that is, that the 
government being the debtor had the option of paying in 
any kind of money named in the bond, and inasmuch as tho 
bonds were payable in coin and coin meant gold and s.lver, 
the government had the right that every debtor has of de- 
claring which money it would pay in. If there had been a 
misunderstanding about the question before that, there 
was a notice to all the world, and, mark you, no fault was 
found with this, no bond-holders complained at that time, 
neither the eastern nor the European bond-holders sent 
their bonds over and claimed that there W'as a misunder- 
standing, they W’ere not thrown on the market. There was 
no talk of repudiation, and if they were payable in silver 
then, when was the contract changed so as to compel us 
to pay gold now? A contract has tw'o sides to it and every 
increased obligation is supposed to carry with It an in- 
creased consideration, anu even if it were true that Con- 
gress had thereafter by mere resolution declared that all 
obligations should thereafter be paid in gold it would not 
make them so payable. Congress, as a matter of fact, 
never made such a declaration, but if it had it would be 
void if it Increased the burdens of the debtor. Suppose 
Congre.ss had by resolution declared that the holders of 
those bonds should give to the United States an additional 
sum of money to what they originally paid for them. 
V/ould the holders be obliged to pay? Nay, would not you 


have heard an outcry about robbery? If Congress could 
not change the contract with reference to the creditor ft 
could not legally change it with reference to the debtor. 
So you see that under the contracts with the creditors and 
under the declarations of the government made to the 
world from time to time, the bonds and the Interest there- 
on, as well as the greenbacks and treasury notes, are 
payable in silver, at the option of the government, and the 
eastern bankers so understood this all along and made no 
complaiVit, and it was not until Mr. Harrison was president 
and Mr. Foster was secretary of the treasury that they 
broached the subject of having these treasury notes re- 
deemed in gold. This was In 1891. 

PAYING GREENBACKS IN GOLD. 

From January 1, 1879, to January 1, 1891, only a little over 
$34,000,000 of greenbacks were presented for redemption, or 
an average of a little over tw’o and a half millions per 
year. You see there was no run on the treasury then be- 
cause the policy pursued by the treasury up to that time 
did not offer a special inducement to make a run on it; 
but at that time Mr. Foster and the Harrison administra- 
tion yielded to the influence of the eastern bankers and 
ordered treasury notes to be redeemed in gold alone, and 
the Cleveland administration did the same. This w’as in 
the fall of 1891 and see W’hat has happened since then; 
During the four years following that date $351,000,000 of 
greenbacks and treasury notes were presented for re- 
demption and redeemed, and to carry out this policy of 
redeeming these notes In gold. President Cleveland Issued 
the $260,000,000 of bonds. Think of this amount. The bur- 
dens of the American people Increased $260,000,000 In four years 
without benefiting the debtor a farthing. Had the same 
policy been pursued which we pursued before, of redeeming 
these notes in gold or silver at the option of the govern- 
ment very few of them would have been presented; there 
would have been no disturbance in the money market and 
no necessity of Issuing bonds. 

CRIMINAL POLICY. 

This policy was a criminal policy and it is a child of and 
in keeping with this entire movement to fasten a gold 
standard upon the world; it is dishonest. It loads the peo- 
ple of this country with burdens for which it gives them 
nothing in return; it is a policy from which the masses 
of mankind all over the world derive no benefit; a policy 
which benefits only a few men who call themselves finan- 
ciers, but whose mission in life seems to be to get some- 
thing for nothing whenever they can get the government 
to assist them in doing so. 

AMOUNT OF PRODUCTS TO PAY NATIONAL DEBT. 

Let us see how the policy of the .American government 
has affected the American people and who has derived the ben- 
efit of that policy. After we had resumed specie payments 
we were on the same basis with the other nations of tho 
earth and our national debt amounting to about $2,000,000,609. 
At that time wheat was worth upwards of $1 per bushel 
and the price of all other American products ranged in 
proportion. At that time it would have taken about 1,800,- 
000,000 bushels of wheat or a proportionate amount of other 
American products to pay the whole national debt. Since 
that time we have been paying for nearly a quarter of a 
century and at present the debt is a little less than $1,800.- 
000,000; wheat is selling at less than 50 cents a bushel and 
the prices of all other American products on the average 
are in the same proportion, and to-day it will take 3,600,- 
000,000 bushels of wheat or a proportionate amount of other 
American products to pay the remainder of the national 
debt, that is, after we have paid for twenty years, after a 
generation has labored to reduce this debt it now will taka 


( 12 ) 


twice the amount of American products to pay the re- 
mainder of the debt that would have been necessary to pay 
the w’hole of the debt at the time we resumed specie pay- 
ments. 

WHO PROFITS NOW? 

We are a producing nation and the policy of our govern- 
ment has tended to reduce the prices of our products. 
Twenty years ago when a foreign bondholder took one of 
our thousand dollar bonds and clipped off the interest cou- 
pons for a year, amounting, say to $50, he could buy with 
them only from 40 to 50 bushels of wheat or a proportionate 
amount of other American products. Today when that 
bondholder clips off the coupons for a year’s interest that 
same $50 will buy him 100 bushels of wheat or a propor- 
tionate amount of other American products. I ask you, my 
fellow citizens, in w^hose interest has the American govern- 
ment been run during this time? And if this policy is to 
be continued, if this gold standard is to be maintained, if 
we are to go on with a constantly increasing population 
and a non-increasing volume of money, then there must 
be a further and a continuous decline in prices over the 
world, and when another generation has spent its life pay- 
ing at this national debt it w'ill then take nearly twice as 
much of American products to pay the remainder of the 
debt then existing as it will take today to pay it. Is it any 
wonder that the gold staiulard people do not want this sub- 
ject discussed? Is it any wonder that they charge that we 
are trying to arraign class against class when we call at- 
tion to what are simply the hard facts? The American 
people- are the sufferers, and the only people who profit by 
this policy are the foreign and the eastern bondholders and 
their American agents. In one of the bond transactions 
under the present admini.-^tration a New York banker and 
his associates, who repr< sent English capital, made up- 
wards of ten millions of dollars out of the government in a 
few weeks. Is it any wonder that those men want to con- 
tinue this policy? Do you really think, my fellow'-citizens, 
that a policy which lowers the price of all American pred- 
icts while it increases the American debt can be said to be 
i wise American policy? 

INDEBTEDNESS OP THIS ^COUNTRY. 

The Indebtedness of our country, when you consider the 
vast corporation, municipal and other debts, almost baf- 
fles computation. It is nearly all held abroad. The inter- 
est has to be raised by the toil and the labor of American 
people. It has to be paid by American products. Shall we 
pursue a policy which will keep the price of American prod- 
ucts down so low that it takes practically everything that 
the American nation can- earn to annually pay the interest 
on that indebtedness, and thus destroy their ability to buy 
which means a destruction of the American market? Can 
we reasonably hope for any prosperity in thp future? Talk 
about maintaining this gold standard and paying these 
vast sums in gold, why there is not gold enough in all the 
world to pay a fractional part of the interest on our debt 
ka gold, and in recent years we have repeatedly seen gold 
manipulated in such a manner that a few great institutions 
control it. In other word.s, they were able to corner the 
available gold. I have already shown you that in the en- 
tire United States there are only $127,000,000 of available 
gold; that includes all the banks have and the amount of 
gold in sight in the W'orld which is available at any time 
Is very small, and w'e, therefore, must expect if we stay on 
this basis that gold will be cornered repeatedly from time 
to time. The speculators will profit and the producers will 
Buffer. 

TWO YARD-STICKS. 

The talk about two yard-s icks of different lengths is un- 
worthy of either these gentlemen. Everybody who has ex- 


amined the subject knows that under bimetallism there are ’ 
no two standards; that under bimetallism the sum total of 
the two metals taken together and considered practically 
as one constitute the standard and the measure of pricea, 

W hen you take the sum total of the two metals it makes 
one standard the same as if melted into one. The fact that 
they are coined separately makes no difference so leng as 
each performs the same functions. If the sum total of the 
tw'o metals forming the standard and used as money is 
twice as great as the amount of either metal would be 
alone, then under bimetallism prices W'ould range twice as 
high as they were under the single standard. 

STEADINESS OF STANDARD. 

Mr. Schurz claims that the gold standard is a steady 
standard and therefore desirable for the commercial trans- 
actions of the world. Other gold standard advocates have 
made the same declaration. It is impossible to understand 
why they haVe done so, for all the world’s experience is to ^ |l||j 
the contrary. England is a gold standard country. The I 
Bank of England rests on a gold standard. France is a bi- I 
metallic countr}^ W'hile It has coined no silver since 1873, 
the Bank of Prance rests on the bimetallic basis. During 
the ten years from 1875 to 1884, inclusive, the Bank of France 
was obliged to change the rate of discount sixty-six times; 
the Bank of France only thirteen times; in other words, 
during those ten years the bimetallic standard was five 
times as steady as the gold standard. And during the seven 
years from 1885 to 1891, inclusive, the Bank of England was 
forced to change the rate of discount fifty-nine times, the 
Bank of France only six times. W'hen one metal alone is 
the standard it is affected not only by the change in pro-iii £ 
Auction, but by reason of its limited quantity is subject to" 
manipulation, whereas when the standard is supplied from 
two sources there is greater steadiness in the supply and 
the volume being so much greater it is more difficult to 
manipulate. 

PRICES AND LEGISLATION. 

Mr. Cockran argues that you cannot change values, and 
then he uses this language: “A man may cha,nge prices by 
legislation.” That sentence admits the charge made by 
the bimetallists and is in harmony with the views of the 
greatest European statesmen, who claim with the bimetal- 
lists that when the governments of the world demonetize » 
silver they by legislation reduce the supply of money in 
the world, and when they adopt a’single gold standard they 
by legislation increase the demand for gold, so that by legis- 
latlon the law of supply and demand was in such a manner,;^*^^ 
interfered with as to force up the purchasing power of gold^^Sui 
to twice what it formerly was. If our committee were not r 
so poor I should recommend that th>y give Mr. Cockran a 
check for traveling a thousand miles to make that admis- 
sion. 

COCKRAN ON WAGES. ^ 

Mr. Cockran furth’er gave us the benefit of his views on 
political economy in this language; ‘‘Wages depend on 
production, and nothing else.” Again he says: ‘‘Wages de- 
pend absolutely on productipn.” If this is correct, and ^ B 
nothing further is needed than to produce, then all that is 
necessary is for the mills to start up and go to producing, 
and the more they produce the higher the wages they 
pay, and everybody will be happy. If there are any riianu- 
facturers in the house, I ask you how this would strike - I'S -t- 
you? Has Mr. Cockran covered the case? Is there not FW-k 
something wanting? Has he not left out the most essen-F^j^^ 
tial element, and that is, the market? No manufacturer 
can run his mills unless he has a market for the things gB 
which his employes make, and it is strange that all of the HB 
gold-standard orators of the country persistently shut their 
eyes to the fact that until we restore the market there is B 
no use of opening mills. 



(i3) 


But it is not correct to say that the rate of wages Is 
governed by production. Under our present system of in- 
dustry the amount of production is one of the smallest fac- 
tors that fixes the wages of the laboring man. Wages, like 
wheat or corn, or any commodity, are governed by the law 
of supply and demand, and this means the supply and de- 
mand of labor. If there are many jobs looking for a work- 
man, wages are high. If there are many workmen looking 
for a job, wages are low. The only way to increase wages 
Is to increase the avenues of employment by general pros- 
perity and thus give the laboring men a chance to demand 
such share of the product as they rightfully earn. 

All the labor organizations ever formed, and all the trades 
unions of the world, have recognized this principle. They 
have been the banding together of laboring men for the 
purpose of regulating the supply of labor, and in this man- 
ner affecting the price. Their "flfeory is exactly the same 
as that of corporations who attempt to control the supply 
of their commodities for the sake of controlling the prices 
at which they sell. During the last few years, under the 
gold standard, mills have been closed, merchants have been 
bankrupt, the mortgages on the farms have been fore- 
closed, enterprise and industry have been stagnant, and the 
laboring man turned into the street to search for work. 
Under these conditions, where each man is bidding against 
the other for a place, wages must sink to the lowest level. 
Nothing can change it except the increased employment of 
labor consequent upon such a financial system as will give 
the manufacturers, the farmer and the business man as- 
surance that the price of his product to-day will be sus- . 
tained to-morrow. 

OPENING MILLS. 

ajor McKinley recently told some gentlemen that he 
iUght it was more Important to this country that we 
should open the mills to the laborer than to open the mints 
to the mine owners. This is an artful statement, calcu- 
lated to deceive. Suppose he is taken at his word, and 
every mill owner in America opens up his mills, how long 
will they run; and if they are obliged to shut down, why 
will they be? Because there is no market for the things 
they make, and I say to Major McKinley that the only key 
that will open the mills and keep them open is an increase 
in the volume of money in this country. Let prices gradu- 
ally come up to bimetallic standard and you will restore 
the purchasing power to the country. The farmer will again 
be able to buy, the railroad will be busy, and every busi- 
ness will increase with the general prosperity. The manu- 
facturer wull be busy, and the bankers and merchants will 
again be doing business. That is the only way in which the 
mills can again be permanently opened. 

LABOR PAID IN GOLD. 

I recently heard a gold-standard man make this argu- 
ment to laborers: “Why you earn your bread by the sweat 
of your brow; you begin toiling early in the morning and 
-you w'ork until night, and when night eomes you want to 
be paid in gold. You want a dear dollar. You want a dol- 
lar of the greatest purchasing power to buy you as much 
of the comforts of life as is possible.” A very seductive ar- 
gument. It looks plausible on its face, but like all the ar- 
guments offered on this gold subject it is fallacious, calcu- 
lated to deceive and utterly ignores the fact that the la- 
borer needs a market for what he produces. It is an insult 
to the intelligence of the laborer to tell him that the gold 
dollar buys more than any other dollar, if you do not at 
the same time tell him how he can make that gold dollar. 
If this subject of prices were the mere scramble betw’een 
buyer and seller then the idea that the dear dollars were in 
the interest of laborers might be correct, but the trouble is 
that a dear dollar not only in this country but in all coun- 
tries lowers prices and therefore means not only lower 


wages but by lowering prices and leaving the fixed charges 
the same it destroys the market. It has disabled, those peo- 
ple from buying who formerly bought. To the laborer It 
presents Itself this way. A dear dollar and no market for 
the things he makes; the mill closed, himself out of em- 
ployment and his family out of bread. 

CHINA AND INDIA. 

China and India have lately been held up to us as horrible 
examples of the condition that we will reach if w^e coin 
both gold and silver. I have pointed out to you the effects 
that a reduced volume of money has upon the prosperity of 
a country, that, as the volume grows smaller and smaller 
the people sink lower and lower. In China the amount of 
money in circulation is only about $2.50 per capita, in India 
about $3 per capita, and while many things in both coun- 
tries and in other countries that have but little money in 
circulation have contributed to the present unhappy con- 
dition of the people, the most potent of all causes has been 
the inadequate circulation of money, and if this gold stand- 
ard is to be maintained for the world, if, as I have said, our 
population is to go on increasing at enormous rates all over 
the world and the volume of money does not increase, the 
tendency of our country wdll be directly toward the same 
conditions that exist in China and India. 

LOCAL CREDITOR, 

But, says someone, if you add silver to the volume of 
money will you not be injuring our own local creditors who 
have money loaned out? I say no, emphatically no. No 
creditor, be he banker or private individual, can possibly 
benefit or profit by having universal bankruptcy all. around 
him. Every creditor, be he banker or merchant or private 
individual, does profit by having general activity around. 
It opens new channels for his capital it creates a demand 
for his money and he profits by general prosperity. There 
is just that difference between falling and rising prices. 
Falling prices not only injure the debtor but if long con- 
tinued they in the end destroy the creditor, while rising 
prices help the debtor and by producing general prosperity 
increase the prosperity of the creditor. 

MASSES AGAINST CLASSES. 

In all ages and in all countries the men who are in the 
wrong deprecated discussion. In no country have dishonest 
policies sought the sun, and no organization of highway- 
men has as j'et petitioned for electric light. The man who 
has no argument seizes the nearest epithet and hurls it. 
These observations are singularly applicable to this gold 
standard movement. It Is the hyena that has sucked the 
blood of commerce and left the prostrate form of labor by 
the roadside. It has rendered this nation helpless, and 
when the people try to learn the cause of their distress, 
when an effort is made to diagnose the patient, then there 
is a fierce howl. It came into the world with a stealthy 
tread, and is seeking to maintain Itself by still more stealthy 
and dark deeds. Every man who does not at once concede 
to it the sole right of traveling upon the highway is as- 
sailed with a fierceness that is calculated to frighten the 
timid and all others who are in any way dependent. The 
gold standard people find that the facts are against them. 
They are obliged to resort to deception and sophistry to 
prevent the people from putting an end to this policy; 
therefore, they deprecate discussion. Unwilling to confess 
the truth, they talk about rousing the masses, etc. The 
fight is as old as human greed; as old as human selfish- 
ness. For twenty years prior to 1861 the slave power depre- 
cated discussion, even in the North where there were no 
slaves, and they put their objection on the ground that it 
prejudiced the masses against the classes. There never yet 
was a great wrong or a grreat abuse but what objected to 
investigation and discussion. Prior to 1S61 the slave holders 



OAViXMU KKFUBLICAN INSTITUTIONa " * ^ 

maintained, if prices are not 
on Lr u interest 

^ nation will in time be exhausted in the mere 

“'fV*"! farmer, „u, m«h2! 

laboring men will cease to be high spirited, free 
men who are proud of their citizenship, and they will sinic 

W ho till the fields of Europe or the Valley of the NUe* thev 
will not be able to educate their famine,; „e “ll n“ loSe^ 

Jf'thls yeomanry which has been the support 

riPh^ndt 1 in every crisis. We will have only extremely 
1 *^ if hand and an ignorant and helpless 

people on the other, a people whose minds are untrained 
and whose spirits are cowed; who neither understand nor 
appreciate free institutions. If this gold standard is to bo ' 

whPn^tlf^'^’ conditions are near at hand, and 

when they come, then the days of the republic will be over. 

not a partisan question. 

In 1861, when the drum beats called you to arms, you were 
not asked whether you were a republican or a democrat 
you were not asked whether you were a whig or an inde- 
pendent; you were only asked whether you loved the flag 

whether you are a republican or a democrat, whether you 
are a populist or a prohibitionist; the question Is, do you 
love republican institutions and will you help maintain 
them? We are at the fork of the road, by turning to the 
left we pass permanently under a British policy, we go into 
the region of dear money and low prices, into the region 
of perpetual hard times for all men who toll. We go Into 

Turkey. Egypt, India and ' 

Ireland for associates. But if we turn to the right If i 
repudiate Hanna and his boodle, if we respect the memc\ 
of the fathers, if we again declare as they did that we are'" 
independent of every nation on earth, then this republlcT^ 
WMll leap forward on a career of grandeur and of glory a 
career of prosperity and of happiness, a career that will ele- 
vate^the sons of men and be a blessing to the people of th* 


AMERICAN DEGENERATION. 

It Is a sad sight to see this grand centyry draw to a close 
^d give such unmistakable evidence of degeneration ot 
i^eri^n manhood as we have recently seen. In 1776 less 
toan three million men who were poor and even despised 
by the world declared that they were not only free but that 
T *"<iependent of every other nation on the globe 

in 1^, when we have seventy millions of people and are 
admittedly the richest and most powerful nation on the 
globe, w’hen we are admittedly the most enterprising people 
on the globe, one of the greatest political parties of the na- 
tion In its convention at St. Louis declared to the world in 
substance that while we might be free we were dependent 
that while a particular financial policy would be beneficiai 
to ^is nation^ we could not have it until Europe consented 
to give it to us. That convention was run from beginning 
to end by the men who control trusts, syndicates and cor- 
porations. Had those men been in the convention in 1776 
which was held at Philadelphia, the Declaration that would 
have been made by that convention on that famous morn- 
ing of July 4th would have read this way; “Liberty and 
Independence are desirable, but we must wait until Eu- 
rope gives them to us.” Our fathers petitioned England 
long and earnestly, and when tliey found that it did them 
no good they declared their independence and were happy 
and so long as there is a language spoken upon earth wili 
men sing their praises. To-day the descendants of these 
men urge that we shall again go into the business of peti- 
tioning England. What a fall is this in patriotism and 
American manhood! Marlj^ Hanna is raising millions of dol- 
lars with which to debauch and degrade the American 
voter— -with which to debauch and degrade the American 
citizen. In order that he shall approve of this degenerate 
policy. If this movement shall succeed then our glorious 
republic has crossed the brow of the hill and we will slide 
down into the wastes and marshes beyond.