Compete 
 
 EXPOSURE 
 
 OF THE FORGED 
 
 FALSIFIED 
 STATISTICS N 
 "Coin's Financial School" 
 
 UC-NRLF 
 
 CHARLES H. 8KRGEL COMPANY, CHICAGO. 
 
 SERGEL'S RAILWAY LIBRARY, VOL. 1. No. 8. June 
 1 ti-Monthly Entered at Chicago Postoffice as swond class m 
 H) snbscrijitiot) $1.50 a year. 
 
GIFT F 
 
SOUND MONEY 
 
 BY 
 
 JOHN A./FRASER, JR 
 
 AND 
 
 CHARLES H. SERGEL. 
 
 CHICAGO : 
 
 CHARGES H. SERGEI, COMPANY. 
 1895- 
 

 
 
 COPYRIGHT, 1895, 
 
 BY 
 CHARLES H. SERGE L COMPANY. 
 
To the Honest Men of an Honest Nation : 
 
 We dedicate this exposure 
 
 of the fallacies , fraudulent statistics and sophistries of the 
 
 aggressive advocates of National repudiation 
 
 and dishonor. 
 
 The Authors. 
 
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PREFACE. 
 
 No argument or set of arguments which depends upon 
 the employment of fraud or deception to convince deserves 
 to meet with anything better than the contempt of honest 
 men. 
 
 It is with this firm conviction that we present the facts, 
 figures and conclusions herein contained to the considera- 
 tion of all who are interested in the topic of the hour the 
 silver question. 
 
 In view of the fact that the entire argument for the free 
 coinage of silver has been epitomized in ' ' Coin's Financial 
 School," we felt that a comprehensive reply to that book 
 would of necessity involve a complete answer to all that 
 can be advanced by the advocates of what we believe 
 would be a fatal financial revolution. At the same time 
 it must be an equally complete presentation of the argu- 
 ments in favor of what we believe, under present con- 
 ditions, to be the only sound money gold, and a currency 
 based upon that most stable of all values. 
 
 In every case the arguments put into the mouths of the 
 eminent citizens who debate the matter with Coin are 
 those to which they themselves have given public utter- 
 ance, either in speech or print ; or to which they have 
 privately given expression or assent. These utterances 
 have been clothed, so far as practicable, in the very words 
 of the men to whom they are ascribed. 
 
No man is misrepresented, no man's views are colored 
 or distorted ; and not even to point a moral or adorn the 
 tale have the published assertions of the author of "Coin's 
 Financial School ' ' been unfairly presented. Hvery propo- 
 sition Coin advances in the present work is quoted verb- 
 ally from his book. Every argument in that unique 
 production is fairly and squarely met with facts and fig- 
 ures from the authorities Coin himself has chosen. 
 
 In "Sound Money," while the setting is obviously a 
 work of fiction, the arguments and statistics, unlike those 
 in " Coin's Financial School," are matters of the strictest 
 fact. In all important cases the authority is given, to- 
 gether with the page on which the statement may be 
 found. We give our personal pledge that our own statis- 
 tics are absolutely reliable and ungarbled, while those 
 ascribed to Coin are transferred, sum for sum, from the 
 pages of his "Financial School." 
 
 JOHN A. FRASER, JR., 
 CHARLES H. SERGEI,. 
 
SOUND_MONEY. 
 
 INTRODUCTION. 
 
 ' 'Want stalks through your streets while pallid, ghastly 
 Famine invades your tenements. The busy wheels of 
 industry are stopped where once their hum brought work 
 and happiness to thousands. Prices have fallen until the 
 gold bug's dollar will purchase twenty-five per cent, 
 more of the products of the soil, the mine, the shop and 
 the factory than at any period since the war. You men 
 tramp the streets seeking in vain for work for the poor 
 privilege of earning your bread in the sweat of your 
 faces, while at home your wives weep silently as they 
 vainly try to soothe the little ones who cry aloud for 
 bread. You are writhing in the grasp of the British 
 Octopus which has fastened his tentacles about the heart 
 of this Nation the hideous monster whose name is Gold. 
 
 " Down with him ! Up in your might, like men, and 
 cast off the clutch which is strangling out your life ! 
 Strike off the shackles of your financial slavery to the 
 Yellow King and restore the dollar of your daddies 
 371^ grains of pure silver freely coined at the ratio of 
 1 6 to i ! Silver, and silver alone, can restore good times, 
 start the mills to running as they never ran before and 
 defeat the gigantic conspiracy of British and Eastern 
 gold to seize our fair land and forclose its mortgages, not 
 only on the farms and homes and plantations of the West 
 and South, but also on the labor of every man who toils 
 with his hands, forever and forever more." 
 
la--.: :': ;:',-' ; ; .SOUND MONEY. 
 
 As the speaker concluded a storm of cheering rent 
 the air. Three-fourths of the men present had been 
 carried off their feet and lost their heads in listening to 
 the glittering, if specious, and plausible, if fallacious, 
 arguments of the young advocate of free silver coinage 
 who had just concluded his peroration after a vigorous 
 address. In the course of his speech he had exhausted 
 every trick of oratory, every appeal to passion and to 
 prejudice which, in his judgment, would manufacture 
 sentiment in support of that financial policy of which he 
 was the well paid advocate. 
 
 A presidential election was approaching. The bonanza 
 silver millionaires, already in possession of almost in- 
 credible wealth, but greedy for more, were straining every 
 nerve to accomplish either one of two things to commit 
 one of the two great parties to a policy of free coinage 
 of the white metal, or to so split and honeycomb both of 
 them with free coinage sentiment that it would be possible 
 to rear a new party of their own. By every means in 
 their power they were bent on securing the inauguration 
 of a policy by which the United States would be suddenly 
 forced to a silver basis, the West and South would be 
 enabled to repudiate their honest debts to the extent of 
 fifty per cent, of their indebtedness; while they, the 
 bonanza silver millionaires themselves, would reap profits 
 from the output of their mines, the like of which were 
 never seen since the world began. 
 
 What mattered it to them that sooner or later the 
 crash must come ? What mattered it to them that in the 
 course of a few years, at best, financial chaos must en- 
 gulph the entire commercial system of this country, 
 should their efforts result in the enactment into law of 
 the reckless revolution they were advocating ? By that 
 
SOUND MONEY. 11 
 
 time they would be prepared for flight beyond the seas to 
 live like princes on the product of their base conspiracy. 
 
 As the speaker resumed his chair upon the platform, 
 men in the audience waited for a lull in the handclapping 
 and cheering to ask each other who the young man might 
 be. Gifted with the art of putting things in an extraordi- 
 nary degree, of magnetic presence and pleasing manner 
 he had for the moment convinced many men against their 
 own sober judgment that they did not know what a dol- 
 lar really was. He had convincingly proved, so it seemed, 
 by means of statistics of whose genuineness his audience 
 had no means of judging, that for more than twenty 
 years Americans had been guilty of the unheard of folly 
 of putting from 60 to 100 cents worth of silver into a dol- 
 lar when 40 or 50 cent's worth would have answered the 
 purpose just as well. With a flippant remark and a few 
 chalk lines drawn upon the blackboard he had demon- 
 strated that the great statesmen and financiers of the 
 United States, England, France, Germany in fact, of 
 every highly civilized country both in the old world and 
 in the new, were either knaves or fools mostly the latter. 
 He showed, to his own satisfaction, at least, and for the 
 moment to that of the vast majority, that all the hidden 
 mysteries of that wonderful outcome of human necessities 
 commerce, were to him an open book; that the knotty 
 problems which the wisest and most learned of the world's 
 political economists had grappled with, and studied and 
 puzzled over for years simply melted away before the 
 search-light of his heaven-born genius for finance. 
 
 In short, he announced that financial panics and strin- 
 gent times were but the manifestations of national disease 
 for which the one and only panacea and specific was the 
 silver cure at a ratio of 1 6 to i, no matter what the rela- 
 
12 SOUND MONEY. 
 
 tive supply of the two metals might be now or in the 
 future. 
 
 "Who is he?" said a brawny blacksmith to his neigh- 
 bor, repeating the latter' s query, "why, that's Har- 
 vey Coin the man who wrote a book about silver." 
 
 "He's a smart feller," commented the other. "He 
 gave them Britishers fits, didn't he?" 
 
 "That he did," assented the blacksmith, whose name 
 was Martin Clench, and whose deeply lined face and 
 clear, blue eyes showed him to be a man of more than 
 average intelligence. 
 
 "What do you think of it?" asked Clench's neighbor. 
 "Strikes me the gold bugs haven't got a leg to stand on. 
 You see, it's this way: Whatever the bankers don't 
 want is a mighty good thing for the poor people to have, 
 and the bankers don't want free silver." 
 
 "I'm not so sure about that," replied the blacksmith. 
 "Bankers are in business to make money out of their 
 banks the same as blacksmiths and all other tradesmen 
 are, big and little, out of their shops. If people ain't 
 doing well they don't need to use money in their business 
 so they don't need to borrow from the banks. If they 
 are doing well they have money to deposit or need more 
 capital to increase and extend their business and they go 
 to the banks. I'm not well enough posted to be on either 
 one side or the other, but it strikes me that whatever 
 would make the best times would be what the bankers 
 would want. Banks don't smash when times are good 
 not as a rule." 
 
 This conversation was broken in upon by a man be- 
 hind them, who also wanted to know the name of the 
 speaker. He was given the information, and at once asked 
 the question : 
 
SOUND MONEY, 13 
 
 "What trade does he represent? " 
 
 "I don't know that he represents any trade," replied 
 Clench. 
 
 "Then what is he doing here? This is a meeting of 
 the Federated Trades Unions. I guess you must be 
 mistaken. ' ' 
 
 "A jawsmith is his main holt," chipped in another 
 man, who had taken no part in the demonstration which 
 marked the conclusion of Mr. Coin's speech. This man 
 was James Hobbs, a carpenter, noted among his fellows 
 as a leader in labor's cause and an active member of the 
 republican party. He was not a speaker himself, but a 
 worker. Perhaps he may have been prompted somewhat 
 by a feeling of envy, but certain it is that he felt and fre- 
 quently expressed considerable contempt for those who in 
 political or labor circles owed their prominence entirely 
 to what he called "the gift of gab." 
 
 "Yes," he continued, "this here is some more of 
 Burke' s hunker-sliding. He's a free silver democrat him- 
 self and he lets this poll parrot talk to us to try to stam- 
 pede us into the free silver crowd. How was it worked ? 
 I only got here late because I'm working on a job away 
 out at South Chicago." 
 
 "Rafferty, of the Bricklayers, moved that as Mr. 
 Coin was present that he should be allowed to talk, and 
 the crowd yelled for him," replied Clench. 
 
 "Rafferty I might have known it !" ejaculated Mr. 
 Hobbs. " He's another poll parrot. You wait and see. 
 I told the boys what we'd get when they elected Burke 
 president. He'll pull politics into the Federation till the 
 organization busts up in a row that's what." 
 
 During this conversation there had been considerable 
 confabbing on the platform between Mr, Coin, President 
 
14 SO UND MONE Y. 
 
 Burke, Michael Rafferty and others. But now the sharp 
 tap of the president's gavel demanded order and Mr. 
 Rafferty was recognized. In~a flowery speech, which was 
 by no means devoid of real Irish eloquence, he rapidly 
 sketched the importance to laboring men of having a cor- 
 rect understanding of the issue which he said had been so 
 ably represented to them that evening. L,abor, he said, 
 had remained out of partisan politics to its own hurt or 
 had attempted the impossible of forming an independent 
 party, equally to its own hurt. This financial question, 
 he thought, was not one of partisan politics it was a 
 question which would split both the old parties and oblit- 
 erate party lines and ties in a manner entirely new to 
 political struggles in this country, except in one instance 
 the fight between the pro -and anti-slavery adherents. 
 Congress, he said, frequently resorted to the appointment 
 of commissions for the investigation of special subjects. 
 The Federated Trades Unions amounted to a congress of 
 labor, and he believed they might well take a leaf from 
 the Congressional Record, so to speak, and for their own 
 benefit appoint a commission of three members to investi- 
 gate the subject of silver vs. gold and report back to this 
 body within three weeks. He made a motion to that 
 effect. 
 
 In an instant a dozen men were on their feet with 
 arms outstretched toward President Burke and yelling 
 "Mr. Chairman" with all the lung power with which 
 nature had endowed them. A roar of "No! no! " rolled 
 up to the roof and reverberated through the hall, and this 
 was succeeded by cheers from that contingent to which 
 Clench, the blacksmith, alluded as "the silverites, ' ' and 
 Hobbs called the "Colorado push." Through all the 
 din President Burke kept working, away with his gavel 
 
SOUND MONEY. 15 
 
 like a hired man, but pandemonium had broken loose 
 and there was nothing for if but to wait until the excite- 
 ment had worn itself out. That moment at length 
 arrived, and a delegate from the Typographical union, 
 Buckheimer by name, was recognized. He moved, in 
 amendment, that a commission of three be appointed, to 
 be selected by the chair, and that there should be one 
 member an avowed silver man, the second an equally 
 avowed gold man, and the third, to preside, whose neu- 
 trality on the subject was known and who would be 
 accepted by the meeting. In the course of his remarks 
 he said: 
 
 "If there is anything on earth that interests the 
 workingman vitally it is this question of currency. 
 When he goes home to his wife after a hard week's toil 
 he wants to take in his hand the money for which he has 
 sold the only thing he has to sell his labor. And when 
 he takes that money to his missus he wants to be sure 
 that it will be accepted by the man at the corner grocery 
 and meat market at 100 cents on the dollar. He doesn't 
 want money that will be worth 105 cents to-morrow or 
 the day after and 75 cents next week." 
 
 Here Hobbs interrupted by shouting: "And he 
 doesn't want money that will give him $25 a week wages 
 and make him pay $50 a month rent and send bread 
 up to ten cents a loaf." This sentiment was loudly 
 cheered. 
 
 "On the other hand," continued the delegate, "the 
 workingman 's interest is to have sufficient currency in 
 the country to let business go on. If there isn't enough 
 now we must find out how to get more and vote for the 
 men who will give it to us. " 
 
 After considerable discussion the motion of Delegate 
 
16 SOUND MONEY. 
 
 Rafferty was put and carried as amended, and now came 
 the appointment of "labor's commission on coinage," 
 as Delegate Rafferty christened it. President Burke 
 named Rafferty to represent the silver element, and called 
 for suggestions as to the other two members. Many 
 names were submitted, but none seemed to arouse any 
 enthusiasm until somebody shouted "Try Hobbs for 
 gold. ' ' This suggestion was received with applause by 
 the delegates who subscribed to the same political creed 
 as did Mr. Hobbs, and the evident will of that section of 
 the meeting was quickly confirmed by President Burke. 
 But to find a man whose neutrality was sufficiently pro- 
 nounced, if the paradox may be permitted, was a matter 
 of much more difficulty. Delegate Buckheimer, the 
 mover of the amendment, was proposed, but because he 
 had sufficient independence to act first with one party 
 and then with another, voting conscientiously on the 
 issues presented without the slightest regard for what are 
 erroneously termed "political principles," but which, in 
 this connection, are properly denominated "partisan 
 ties," he had got himself disliked on both sides of the 
 political fence. Buckheimer was one of the most consci- 
 encious of men, of considerable reading and naturally an 
 independent thinker. Moreover, he had the courage of 
 his convictions, so when he voted with the Republicans 
 on some issue he also worked with them for the success 
 of what he believed to be right, and followed a similar 
 course when he believed it to be a patriotic duty to sup- 
 port the other political party. Men in his own and other 
 labor organizations, less high-minded than himself, saw 
 in this political independence only the evidences of cor- 
 ruption. This thought found a voice when Buckheimer' s 
 name was proposed. A delegate at the back of the hall 
 
SOUND MONEY. 17 
 
 shouted "He'll turn his coat for the stuff!" and the 
 cruel slander was greeted with a roar of laughter. Buck- 
 heimer was not chosen. 
 
 Meantime Delegate Clench had succeeded in getting 
 into an argument with the man in front of him, and in 
 his excitement had risen from his seat. President Burke, 
 happening to look in Clench's direction, probably thought 
 that the big blacksmith had a suggestion to make to the 
 chair, and recognized him. "Delegate Clench of the 
 Blacksmith's Union," he announced. 
 
 The business before the meeting being the nomina- 
 tion of the third member of the commission, a number 
 of delegates in different parts of the hall, on hearing 
 Clench's name, thought he had been chosen for the posi- 
 tion. Clench's sturdy honesty and hard-headed common 
 sense were well known and appreciated, so no sooner was 
 his name announced than the delegates alluded to com- 
 menced to applaud. In a moment the applause was 
 general, and Clench, bewildered a little, but still on his 
 feet, uttered the single interrogatory: 
 
 "Sir?" 
 
 "I appoint you as the third member and chairman of 
 the commission," said President Burke, who was ever 
 eager to do what seemed to be the popular thing. In 
 this instance he hit the nail squarely on the head, for the 
 meeting endorsed the nomination with generous applause 
 and called on the nominee for a speech. 
 
 "I'm not much of a speechmaker, " began the black- 
 smith, "and yet I ain't a dummy. If I had more edu- 
 cation I'd talk better. As I naven't got it I content 
 myself with thinking things out and finding out the 
 truth as far as a plain man can. Now, on this question 
 I'm no good I ain't enough posted to know which side 
 
18 SOUND MONEY. 
 
 has the best of it, so you'd better appoint somebody more 
 qualified for the job, Mr. Chairman." 
 
 "You are just the man we want," declared Harvey 
 Coin. 
 
 "What have you got to do with it ? " shouted Hobbs. 
 "You keep still. You've had all the say you're going 
 to have this evening," and with that he sat down again, 
 very red in the face from the effort of making even so 
 brief a speech as this. 
 
 "I'll convert you to silver," replied Coin flippantly. 
 "The first thing you know you'll be carrying the 
 banner of the new party that is destined to redeem this 
 country from the clutches of the creditor class. ' ' This 
 sally was applauded, but as soon as he could be heard 
 Delegate Hobbs retorted by saying: " I always pay my 
 honest debts, and when a country gets to have less honor 
 than a poor carpenter it's in a mighty bad way, friend 
 Coin." This got the laugh on Mr. Coin, who since the 
 success of all he had worked for the appointment of a 
 committee of workingmen to investigate had been grow- 
 ing more and more bumptious every minute. 
 
 After the meeting had adjourned the newly appointed 
 commission assembled on the platform which Harvey 
 Coin had not yet deserted. Before anything was done, 
 however, Mr. Coin drew Commissioner Rafferty aside, and 
 a whispered conversation took place. From the gestures 
 of the two men, subdued though they were, and the 
 frequently nodded assent of Rafferty, it was evident to a 
 careful observer that Coin was instructing his disciple in 
 the course which he should pursue. 
 
 At length Chairman Clench called the commission to 
 order and asked for suggestions as to ways and means of 
 conducting the investigation. Though not invited, 
 
SOUND MONEY. 19 
 
 Harvey Coin, with consummate assurance, drew up a 
 chair at Commissioner RafFerty's elbow and prepared to 
 offer suggestions whenever an opportunity presented it- 
 self. 
 
 Commissioner Hobbs eyed the interloper askance, and 
 after several more or less apologetic coughs said : "Mr. 
 Chairman : I notice that there is an outsider present. 
 This, I take it, is an executive session, and I think no 
 stranger should be here. ' ' 
 
 "Oh!" exclaimed the cheap money man, before 
 Chairman Clench had time to reply, "If my presence 
 here is disagreeable to the gentleman I will withdraw. I 
 had no idea that this investigation was to be a hole and 
 corner affair in the interests of Wall street and the British 
 bondholders." As he said "British bondholders" he 
 glanced keenly at Rafferty and was gratified to see a 
 sudden flush of color in his cheek, Rafferty was a patri- 
 otic son of the Emerald Isle, and an inveterate enemy of 
 everything which typified the strength and power of the 
 British lion. 
 
 ' 'This will be no hole and corner investigation so far 
 as I am concerned," he declared. "We are appointed 
 for the purpose of revealing, not concealing, facts ; and 
 so long as the gentleman does not interfere with the busi- 
 ness of this commission, I can't see that anybody is hurt 
 by his presence. ' ' 
 
 "He may not interfere with the commission," re- 
 torted Hobbs, "but he will interfere with you. He is 
 sitting there to prompt you. ' ' 
 
 "I don't need any prompting, Mr. Hobbs. If you 
 attend to your duties as well as I shall to mine you won't 
 have any cause to blame yourself when all is over," 
 Rafferty replied, "Even if Mr, Coin did suggest some- 
 
20 SO UND MONE Y. 
 
 thing to me, if I am willing to accept his suggestion and 
 father it, how can that hinder the investigation we have 
 undertaken ? It will help instead of hindering. I leave 
 it to the Chair. ' ' 
 
 "I don't see that Mr. Coin can do any harm," was 
 the big blacksmith's decision, " but if Mr. Hobb's don't 
 want him, why, for the sake of harmony, we'd better not 
 ask him to stay. Anyway, I was going to propose that 
 we'd all better go home and think this over. Then let 
 us meet here at 10 o'clock tomorrow and lay out our 
 work." 
 
 This was agreed to and the first meeting of Labor's 
 Commission on Coinage, held Tuesday, April 23, 1895, 
 adjourned. 
 
SOUND MONEY. 21 
 
 CHAPTER I. 
 
 FIRST DAY'S PROCEEDINGS OF LABOR'S COMMISSION ON 
 COINAGE. 
 
 As the three commissioners were about to separate for 
 the night, Harvey Coin drew President Burke of the Fed- 
 eration aside and held a whispered conversation with him, 
 which lasted until the three commissioners had reached 
 the door, still chatting over their plans for effectively pur- 
 suing the investigation. Between Commissioners Hobbs 
 and Rafferty there was already a feeling of deep-rooted 
 hostility, and Chairman Clench foresaw that in all proba- 
 bility he would have his hands full in keeping the peace 
 between them. 
 
 This showed itself when they reached the foot of the 
 stairs and stood on LaSalle street, the meeting having 
 taken place in the Industrial World building. Rafferty 
 hung back instead of walking to the corner with his 
 companions, as he had been accustomed to do. 
 
 "Ah," said Hobbs, "waiting to get your instructions 
 from your leader, are you? I suppose, though, we 
 couldn't expect much else than that Cheap Money Coin 
 would succeed in getting a proxy on the commission." 
 
 Rafferty made an angry retort, as might be expected. 
 "You don't need to talk, Brother Hobbs," he said bit- 
 terly, "you and the whole breed of Wall street pups wear 
 the British collar wherever you go. ' ' 
 
 "Come, come," interposed Clench as he pushed his 
 way in between them by main force. "What's the sense 
 
22 SOUND MONEY. 
 
 of you two chaps calling names ? Drop it now. You're 
 on opposite sides of the question, but that's no reason 
 why you should scratch each other's eyes out, either in 
 private or public. It's only natural that Rafferty wants 
 to consult with his friends, and that you, Hobbs, will con- 
 sult with yours. As for me, I'm open to conviction either 
 way, and the boys put me into the investigation to see 
 fair and bring out the facts as clearly as I can for their 
 benefit. The time has gone by when politicians like you 
 fellows can lead your mates like a flock of sheep on an 
 election cry, and you'll both have all you can do to get 
 your side of the case put as strongly as you can without 
 wasting time in quarreling like school boys. ' ' 
 
 At this moment Harvey Coin emerged from the build- 
 ing and, slipping his arm through Rafferty's, the two 
 bade the others good night and left President Burke with 
 Clench and Hobbs to talk over the extraordinary action 
 of the meeting. This was the first time on record that 
 labor had tried any such experiment, and all were anxious 
 to see the outcome. 
 
 Meantime, Rafferty and Coin had crossed over on 
 Randolph to Clark street, and were engaged in an earnest 
 conversation. 
 
 "We have succeeded wonderfully," said Coin, "in 
 everything we have undertaken. The entire West and 
 South are aroused, and we shall at last be able to play a 
 pretty solid South and West against the Eastern money 
 bags. I don't think anything can prevent Hinrichson's 
 scheme of committing the Illinois Democracy to free 
 silver, from carrying through; and with Illinois Demo- 
 crats in line the Populists are bound to ally themselves 
 with the Democracy. Then, the Inter Ocean is making 
 hundreds of converts in the Republican ranks daily, and, 
 
SOUND MONEY. 23 
 
 with protection out of the way as an issue, we'll simply 
 carry the farmers and labor classes every man who is 
 poor or in debt, into our movement in a body, no matter 
 what their former party affiliations may have been. ' ' 
 
 "Perhaps," replied Rafferty tersely. 
 
 "What do you mean by that? Are you losing faith 
 already ? ' ' inquired Coin with a searching glance at his 
 companion. 
 
 "No," replied Rafferty, "but everything depends on 
 the success of this bold move. Clench is the worst and 
 at the same time the best man they could have chosen for 
 chairman. He represents the great mass of voters who 
 go to the ballot box and vote their conscience. That is 
 the class which came into existence a few years ago when 
 the paster and the vest pocket vote showed the politicians 
 that their reign was coming to a close, and that they might 
 as well drop their opposition to the Australian ballot law 
 and other measures devised by advanced reformers for the 
 very purpose of exterminating the professional politician 
 at no distant day. It is not the hide-bound party men, but 
 men like Clench who carry elections now-a-days. The 
 wisest of the 'old heads' are all at sea when it conies to fore- 
 telling what the people will do at the polls. Look at the 
 civil service law. Why, at 4 o'clock on election day 
 every politician in town and every newspaper, too, for 
 that matter, thought it had been badly beaten. What 
 were the facts ? The Martin Clenchs and men of his stamp 
 had voted solidly for the law and it went through by a 
 four-fifths majority. If we don't pull Clench over we'll 
 be in the hole." 
 
 ' 'That is all very true, ' ' assented Coin . ' ' But don' t for- 
 get that in hard times every man is with your fellow-coun- 
 try man 'agin the government, ' and the present administra- 
 
24 SOUND MONEY. 
 
 tion is committed to gold. If another party offers a plan 
 that looks as if it would make money plentiful and provide 
 lots of employment, the great mass of the voters is likely 
 to give it a trial on general principles. But where a party 
 can demonstrate that its plan surely and certainly will cut 
 off and blot out one-half of every man's debts, these same 
 fellows who vote their conscience will just tumble over 
 each other to get into the wagon. Every man has his 
 price and most of them are cheap. ' ' 
 
 This brought the speakers to the Boston oyster house, 
 and they went down stairs to eat a lunch and lay out their 
 plans for conducting the investigation in the interests of 
 free silver. After they had got comfortably fixed Rafferty 
 continued the subject, in which both were absorbed by say- 
 ing : "How do you propose to run this investigation? " 
 
 "Why, you must call the strongest men you can get 
 to present our arguments for all there is in them. Send 
 out letters here, I'll give you a list that I have made out. 
 Hobbs will be sure to do the same with his side of the 
 case and I'll always will be on hand to chip in with a 
 clincher or a knock-out blow whenever I see that it is 
 needed." 
 
 "This is a pretty good list," said Rafferty, glancing at 
 the type- written memorandum, " but these men won't all 
 be here in town. ' ' 
 
 "Won't they?" replied Coin. "You bet they will! 
 The men who pull the wires from Denver have arranged 
 that all these people will be in Chicago during the next 
 fortnight or so merely by accident of course. The gold 
 bugs, never suspecting any such move on our part, will 
 be caught napping, and they'll have to depend entirely on 
 local talent. That is just where I live why, there isn't 
 a gold bug in Chicago that I can't play with. The fact 
 
SOUND MONEY. 25 
 
 is that they haven't paid any attention to the question in 
 detail. They can argue off hand, of course, on the gen- 
 eral proposition, but they aren't fortified with figures, and 
 the result is that when I spring my statistics on them 
 they look foolish. I shouldn't wonder if they feel just as 
 foolish as they look. ' ' With this superb piece of egotism 
 Harvey Coin threw himself back in his chair and puffed 
 up his chest in a manner which reminded one of the fool- 
 ish frog in CBsop's fable. 
 
 "Are those statistics as dead sure as you claim?" asked 
 Rafferty, after a pause. 
 
 "Oh, they're close enough," was the reply. "None 
 of the gold bugs around this neighborhood have been able 
 to disprove them, though I've been sending them out 
 broadcast for months. Don't you worry about my figures 
 for that's where I shine. Now, I'll tell you what you 
 must do. Insist that the sessions of your commission 
 shall be informal and that you will hear the evidence of 
 whatever witnesses may be in attendance on any given 
 point under discussion. For instance suppose that I 
 take the stand to-morrow as soon as you have agreed on 
 your method. Well, I give evidence on certain points 
 and am careful not to cover too much ground, savey? 
 Then, if the sessions are informal, it leaves the way open 
 for me to jump in and contradict any gold bug witness on 
 any point and produce my statistics right then and there. 
 I want to be right in the front of this investigation all 
 through because it means a big thing for me, and you too, 
 if we can get the solid indorsement of the trades unions. ' ' 
 
 "I see that plainly enough," replied Rafferty. "It 
 ought to be a good thing for me and Burke as well. 
 There's a smart politician for you. Did you notice how 
 smoothly he got you before them to-night?' ' 
 
26 SOUND MONEY. 
 
 "Why wouldn't he? I'm a famous man, this minute; 
 and, besides, I wrote out his little speech and gave him 
 all the points. Well, I must be off. I've got a call to 
 make at the Auditorium before I go home," saying which 
 he picked up the two checks and went to the desk where 
 he paid the bill and procured some cigars, a handfull of 
 which he forced Rafferty to take. 
 
 "Ten o'clock," he said. 
 
 "Ten o'clock," repeated Rafferty. "Don't get there 
 later, ' ' and with this they separated, Rafferty going to his 
 home in the iglfa ward and Coin to the Auditorium hotel. 
 
 A few minutes later the latter gentleman found him- 
 self in a luxurious apartment on the parlor floor of this 
 modern palace closeted with three western men either one 
 of whom could then and there have given his check for 
 the Auditorium block and the land it stands upon. One 
 of the trio wore a diamond in his shirt bosom as large as 
 a hazelnut. The other two exhibited better taste. 
 
 ' 'Well, did you get them? ' ' inquired the man with 
 the kohinoor. 
 
 "I did," replied Coin. "I always get what I go 
 out for." 
 
 "What did they cost ?" inquired the bonanza silver 
 multi-millionaire, watching the play of light from his 
 diamond as it was reflected in a magnificent French plate 
 mirror. 
 
 "The expense won't trouble you," returned Coin 
 with a smile, " for my total outlay was exactly $2.25." 
 
 "What?" almost shouted the three men of millions 
 in chorus. 
 
 "That's every cent it cost and the whole thing went 
 through as if it had been greased. What's more, unless 
 the commission submits the report I write it won't cost 
 
MONEY. 27 
 
 anything further unless, perhaps, hall rent or some 
 trifle of that sort. I propose to circus this discussion and 
 work up such a crowded attendance that we'll have to 
 rent the Auditorium or Battery D to accommodate the 
 audience. ' ' 
 
 "That's a great idea. Well, you know what it'll 
 be worth to you if the report of this labor committee, or 
 whatever you call it, indorses free coinage at 16 to i," 
 said the man with the big diamond, rubbing his hands in 
 glee at that delightful prospect. 
 
 "I can read typewriting," said Mr. Harvey Coin, 
 ''and know a good contract when I see it, even if I'm not 
 a lawyer. ' ' 
 
 "If we get free coinage, " began a wiry little man 
 
 "If we get free coinage," broke in the bejeweled one, 
 "I wouldn't take $30,000,000 for what I own, provided 
 we can stave off a panic for six or seven years. ' ' 
 
 After a brief conversation during which the four dis- 
 cussed Coin's programme for the coming investigation, the 
 worthies separated for the night to dream of the money 
 they would make when free coinage would cut down all 
 debts one-half, raise all prices one-half, and thus make 
 the wages of the laboring men and the vast army of wage- 
 workers whose votes they had conspired to capture worth 
 only one-half in purchasing power of what they were that 
 night. As for themselves, each saw himself in his 
 dreams ten times richer than Croesus and hobnobbing 
 with the aristocracy of Europe, particularly of England 
 the very people whom their paid advocate, Harvey Coin, 
 was just at that time denouncing as blood-suckers, vam- 
 pires, moneybags and the dear above only knows what else, 
 principally with a view to ' ' getting solid ' ' with the Irish 
 vote through the natural prejudice of Irishmen against 
 
28 SOUND MONEY. 
 
 the class mainly responsible for the pitiable condition of 
 the land they love so well. 
 
 * 5JC * * * 
 
 Promptly at ten o'clock on Wednesday morning 
 Chairman Clench called the commission to order in the 
 little Hall in the Industrial World building on L,aSalle 
 street. The able daily organ of repudiation in Chicago, the 
 Silver Howl, had contained a two-column account of the 
 proceedings of the night before, including the news of the 
 appointment of the commission and Harvey Coin's 
 speech. Those who had been present noticed that 
 although they thought they had paid particularly close 
 attention to the speech, they had missed a good deal of 
 brilliant repartee reported in the paper. On numerous 
 occasions had Mr. Coin been interrupted by evil disposed 
 emissaries of the gold bug party, according to this 
 veracious report, who had plied him with questions, 
 apparently unanswerable, and propositions that would 
 have given Adam Smith, Bastiat or any of those old 
 duffers a headache. But did they succeed in bothering 
 young Mr. Coin ? Oh, dear no ! It is true they covered 
 almost every phase of commerce and finance, but what of 
 that ? Harvey Coin had literally whole cords of statistics 
 at his tongue's end with which he first confounded his 
 questioners and then turned the laugh on them with a 
 witty remark which, to quote the erstwhile ''hyphenated 
 contemporary," "sent the packed audience into convul- 
 sions of laughter. ' ' These happy retorts had doubtless 
 appeared in the typewritten report of the speech supplied 
 by its author to the paper several hours in advance of its 
 delivery. 
 
 The effect of the publication of this report, however, 
 had produced a result already. The little hall was packed 
 
SOUND MONEY. 29 
 
 and not alone by silverites, or " the Colorado push," as 
 Commissioner Hobbs called them, nor by workingmen. 
 There were several well known gold standard men in the 
 throng, men who had for months been watching the rapid 
 progress of free silver's aggressive campaign and, in view 
 of recent developments, had suddenly become anxious 
 about what was likely to happen. 
 
 Nor had Commissioner Hobbs been altogether idle. 
 After Coin and Rafierty had left them, President Burke, 
 Clench and Hobbs had discussed the investigation, and 
 Hobbs had been drawn into an argument of the issue with 
 Burke, himself a rabid free coinage Democrat. In the 
 course of the discussion Burke lost his temper and let out 
 a good deal more of the plans of Coin and himself than 
 he had intended. The result of this was that as soon as 
 Clench and Hobbs parted with him the latter said : 
 
 "I'll bet my life they've got their witnesses ready and 
 their evidence cut and dried, and they'll begin to spring it 
 on us tomorrow on the excuse that there isn't any time to 
 lose." 
 
 "The excuse is good, too," replied Clench, "there 
 isn't much time to lose if we're to report in three weeks. 
 Besides, you'll have lots of opportunity to answer." 
 
 "That isn't the point," urged Hobbs. "There's 
 only one fair way to do this and that is to shake the life 
 out of each argument in favor of one side or the other as 
 it comes up. If we proceed like a law court, have one 
 side get in all of its evidence and then the other, and 
 then more on the first side and more again on the second, 
 the thing' 11 drag on till winter through waiting for 
 witnesses and all that. ' ' To this proposition Clench as- 
 sented. He would much prefer a running debate and so 
 get a chance to make up his mind as the discussion went 
 
30 SOUND MONEY. 
 
 along. Thus, unconsciously, when the meeting began 
 each side was prepared to spar for this very opening, when, 
 to the surprise of Coin and Raiferty, Chairman Clench 
 proposed that the investigation should be conducted on 
 what he termed the ' 'go as you please' ' plan. Both sides, 
 of course, consented, and Commissioner Hobbs, who had a 
 little surprise in store for Mr. Coin, looked anxiously 
 through the audience and only appeared relieved when he 
 saw a tall, soldierly looking man, accompanied by a clerk, 
 elbowing his way through the crowd. Mr. Hobbs soon 
 procured a table and chairs, which were placed in front of 
 the platform for the convenience of witnesses in waiting 
 and the stenographers, of whom each side had secured 
 one, and an agreement was entered into that these re- 
 porters should relieve each other. 
 
 In a halting speech, during the delivery of which he 
 looked supremely uncomfortable, the big blacksmith 
 declared the purpose of the commission, the manner of its 
 appointment and the plan on which it would proceed. 
 He then asked if there was any person present who 
 desired to testify on either side, and almost before the 
 words were out of his mouth Harvey Coin bobbed up 
 like a jack-in-the-box and announced his willingness to 
 tell the commission all about the silver question, from 
 beginning to end. 
 
 Hobbs looked grim, but made no objection; so, with 
 an easy, confident air, the jaunty little walking encyclo- 
 pedia of universal silver information and dictionary of 
 more or less reliable statistics combined, struck an atti- 
 tude at the right of the witnesses' table and asked if he 
 would be allowed to speak from the platform, as he 
 "always felt more at home when facing a crowd," The 
 request was granted, and, "springing lightly to the plat- 
 
SOUND MONEY. 31 
 
 form, with his noble young face aglow with patriotism and 
 inspired purpose, ' ' as Mr. Coin himself would doubtless 
 describe it, were he writing a book on the subject, he 
 stood, like the statue of liberty in New York harbor, pre- 
 pared to enlighten the world. 
 
 " In money," he began, "there must be a unit. In 
 arithmetic those of you who have passed a few months, or 
 even weeks, perhaps, in the public schools have been 
 taught what a unit is." Turning to Clench, he said: 
 "Couldn't you send out and get me a blackboard and 
 some chalk, Mr. Chairman ? I want to show the audi- 
 ence what a unit is. Some of them are really besotted in 
 their ignorance on the subject of units, don't you know?" 
 
 Chairman Clench sent for a blackboard, and the volun- 
 tary witness proceeded to give the two stenographers 
 something to do. 
 
 ' 'In arithmetic the figure i is a unit. A unit, ' ' Coin con- 
 tinued, ' 'in mathematics, was a necessity as a basis to start 
 from. In making money it was equally as necessary to es- 
 tablish a unit. There is an axiom of political economy, a 
 science of which I am a complete master, to this effect 
 'no money no unit, no unit no money. ' Now, I hope you 
 all understand what a unit is. ' ' Turning to the commission- 
 ers, he continued, "Those who' don't understand about the 
 unit, holdup your right hands. No hands up? Good 
 you have captured the idea of the unit hands down! 
 
 "But as I was saying, the constitution gave Congress 
 the power to 'coin money and regulate the value thereof. ' 
 Congress adopted silver and gold as money. It then pro- 
 ceeded to fix the unit, and the unit has staid fixed ever 
 since. 
 
 "That is, it then fixed what should constitute one 
 dollar, the same thing that the mathematician did when 
 
32 SO UND MONE Y. 
 
 he fixed one figure from which all others should be 
 counted. Congress fixed the monetary unit to consist of 
 37 1 % grains of pure silver, and provided for a certain 
 amount of alloy to be mixed with it to give it greater 
 hardness and durability. This was in 1792, in the days 
 of Washington and Jefferson and our revolutionary fore- 
 fathers, who had a hatred of England and an intimate 
 knowledge of her designs on this country. " Here 
 he glanced at Rafferty and felt certain that he had one 
 member of the commission safely hypnotized. He con- 
 tinued : 
 
 "One of the first things they did was to make 37 1^ 
 grains of silver the unit of values. That much silver was to 
 constitute a dollar. And each dollar was a unit. ' ' 
 
 At this moment a big, doubled- jointed teamster who 
 had pushed his way up to the platform, carrying a black- 
 board, interrupted the witness by saying : 
 
 "Can I ask you a question, mister?" 
 
 "You can if you have a tongue, and you may if you 
 choose," replied Mr. Coin in a burst of pleasantry and 
 joyous generosity. 
 
 "Honest to gracious, now, is a unit a silver dollar?" 
 
 "Not always; but a silver dollar is always the unit." 
 
 "Is that so?" mused the teamster. "Well, I guess 
 I'd better mosey or my boss won't give me my regular 
 number of units Saturday night." And he departed 
 from the midst of a grinning audience. Coin looked 
 annoyed but continued as if nothing had happened to 
 interrupt him. 
 
 ' 'They then provided for all other money to be counted 
 from this unit of a .silver dollar. Hence, dimes, quarters 
 and half dollars were exact fractional parts of the dollar so 
 fixed." 
 

 SOUND MONEY. 33 
 
 Here Chairman Clench interrupted the witness by 
 asking this question: 
 
 "You say, Mr. Coin, as I understand it, that Congress 
 fixed 371^ grains of silver as the unit of money, and that 
 the man that wrote the arithmetic fixed the figure i as the 
 unit of figuring. What was the figure i made of ? Chalk 
 or ink or lead pencil or what?" 
 
 "It doesn't matter what the figure i was made of," 
 replied Coin hastily, "it was only established as a unit." 
 
 "Then," said Clench, "why does it matter what a 
 dollar was made of? It, also, was only established as a 
 unit." Coin looked wilted as he replied, "I'll come to 
 that point later on, " and continued his free silver argu- 
 ment as follows : 
 
 "Gold was made money, but its value was counted 
 from these silver units or dollars. The ratio between sil- 
 ver and gold was fixed at 15 to i and afterward at 16 to 
 i . So that in making gold coins their relative weight was 
 regulated by this ratio. 
 
 "This continued to be the law up to 1873. During 
 that long period the unit of values was never changed and 
 always contained 37 1^ grains of pure, or 416 grains of 
 standard, silver. While that was the law it was impos- 
 sible for any one to say that the silver in a silver dollar was 
 only worth 47 cents or any other number of cents less than 
 100 cents or a dollar. For it was itself the unit of values, 
 that silver dollar, and the money of the constitution. ' ' 
 
 "Excuse me, Mr. Coin," interrupted Commissioner 
 Hobbs ; ' ' but you say that the silver dollar is the money 
 of the constitution. I have here, a copy of the constitu- 
 tion. Will you please point out the section in which the 
 silver dollar is made the money of the constitution?' ' He 
 handed the book to Coin, who first reached out to take it, 
 
34 SOUND MONEY. 
 
 then drew back his hand and thrust it into his pocket, at 
 at the same time biting his lip in his annoyance. At length 
 he spoke. 
 
 ' 'We use the term 'money of the constitution' because 
 the constitution gives congress the power to 'coin money 
 and regulate the value thereof.' Congress coined the 
 silver dollar under that constitutional power, and it has 
 been construed that, as the silver dollar was fixed as the 
 unit of value in this way, it became the money of the 
 constitution. ' ' 
 
 ' 'Who so construed it?' ' asked Commissioner Hobbs, 
 who is a gentleman of an inquiring turn of mind. 
 
 "I did," replied Coin, proudly. 
 
 "Just as I thought," said Commissioner Hobbs' 
 "Well, as Congress also coined gold under the same con- 
 stitutional power isn't gold also the money of the consti- 
 tution?" he continued. 
 
 "Gold isn't a unit," replied Coin. 
 
 ' 'You greatly misunderstood me if you thought I said 
 it was. What I want to know is whether gold money or 
 a gold dollar isn't just as much the money of the consti- 
 tution as silver money or a silver dollar?' ' insisted Hobbs. 
 
 "I don't construe the constitution that way," was 
 Coin's reply. Then he shut up like a clam and took his 
 seat. The hard headed carpenter had been able to see 
 through his illogical, silly sophistry and attempted false 
 pretense as to the constitutional status of silver. Coin 
 was badly ' 'rattled. ' ' Commissioner Hobbs now whispered 
 to Chairman Clench and the latter nodding his head, as if 
 in answer, advanced to the front of the platform. 
 
 "If Mr. Adlai T. Ewing is in the audience the com- 
 mission would like to hear from him," said the chairman. 
 The eminent lawyer made his way to the platform, fol- 
 
SOUND MONEY. 35 
 
 lowed by his clerk, who carried a number of books which 
 he placed on the reporters' table. Mr. Ewing bowed to 
 the audience and shook hands with labor's representatives. 
 
 ' 'The cause of labor, ' ' he said, ' 'has once more honored 
 itself by the appointment of this commission to inquire 
 into the truth or falsity of the claims of these gentlemen 
 who are trying to induce the people to exchange their 
 honest money for that which is cheap, debased and dis- 
 honest. I shall be most glad if I can throw any light 
 upon the subject which will aid you in arriving at a just 
 conclusion in the matter. ' ' 
 
 "We are obliged to you," said Chairman Clench, 
 "though I was afraid that Commissioner Hobbs hadn't 
 given you enough time to prepare your answers to his 
 questions. ' ' 
 
 "I have made a careful note of the questions," replied 
 the lawyer, "and, as requested, have brought with me 
 the books which answer them. It has just been stated by 
 this witness, Mr. Coin, that Congress by law established 
 as the unit of our money 37 1 % grains of pure, or 41 6 grains 
 of standard silver, and called the name of that money unit 
 a dollar. ' ' 
 
 "That's just it, exactly," interrupted Commissioner 
 Rafferty. ' 'That is the foundation of the whole claim, and 
 it has never been disproved by you gold standard gentle- 
 men. It is unanswerable. ' ' 
 
 The learned lawyer smiled amusedly as he selected one 
 of his books, a small octavo volume, printed on handmade 
 linen paper, whose ink had turned brown with age. No 
 wonder it was over a hundred years old. 
 
 ' 'The contention is so absurdly at variance with well 
 known historical facts," said Mr. Ewing, "that until the 
 nonsense talked by Mr. Coin gave it prominence nobody 
 
36 SOUND MONEY. 
 
 ever took the trouble to contradict it. This little book, ' ' he 
 continued, holding it open at the title page ^for Commis- 
 sioner Raff erty's inspection, '4s the tenth volume of the 
 Journals of Congress, the congressional record of those 
 glorious patriots who were the fathers of this great Nation. 
 Turning to pages 157 and 158 we find the first record of 
 what Congress settled should be the unit of our money in 
 the following words." He then read this extract: 
 
 " 'Wednesday, July 6, 1785, Congress took into con- 
 sideration the report of the grand committee on the sub- 
 ject of a money unit; and on the question, That the money 
 unit of the United States of America be one dollar, the 
 yeas and nays being required by Mr. Howell, every 
 member answering aye, it was 
 
 * ' 'Resolved, that the money unit of the United States 
 of America be one dollar. 
 
 * ' 'Resolved, that the smallest coin be of copper, of 
 which 200 shall pass for one dollar. 
 
 ' 'Resolved, that the several pieces shall increase in a 
 decimal ratio. ' 
 
 * 'This is the record of the establishment of our unit of 
 money," continued Mr. Kwing, "and if our friend, Coin, 
 is not trying to fuddle us with false logic, if the process 
 by which he reasons out his silver dollar theory is sound, 
 he is bound to admit that he did not go back far enough, 
 and that what Congress really did do was to establish a 
 copper dollar consisting of 200 subdivisions. ' ' 
 
 A roar of laughter greeted this self -evident proposition, 
 and Harvey Coin looked very much like the man who 
 came into unexpected contact with a bucket of ice water. 
 
 "It was not any certain number of copper coins," con- 
 tinued Mr. Ewing, ' 'nor any fixed quantity of gold or sil- 
 ver, nor any words which should be printed on paper or 
 

 SOUND MONEY. 37 
 
 other material, whichCongress thus established as the unit 
 of our money. It was simply the unit itself one dollar. 
 Not a copper dollar, a silver dollar, a gold dollar nor a 
 paper dollar that was not the point. Congress was 
 making a change from the clumsy Hnglish system of 
 pounds, shillings and pence, and, as the last clause of the 
 resolution shows, establishing the more simple and con- 
 venient decimal system." 
 
 Another round of applause, followed by a buzz of ex- 
 citement, swept through the crowded audience. Coin, 
 who was seated next to his attorney, Clarence Darrow, 
 carried on an eager conversation with him in whispers for 
 a few moments, and then sprang to his feet with a tri- 
 umphant gleam in his eyes. 
 
 "What year was that?" he demanded, trembling with 
 excitement. 
 
 "1785," replied the witness. 
 
 "Then it doesn't apply," declared the bumptious little 
 fellow, ' 'for the constitution was not adopted until Sep- 
 tember 17, 1787!" Coin, who had stepped forward as he 
 spoke, strutted back to his seat with the air of a man who 
 has stormed a masked battery single-handed and still 
 lived to tell the tale. 
 
 "The coinage act," he continued, "was not passed 
 until March 4, 1792, and in that act it was that Congress 
 fixed the monetary unit of 371^ grains of pure silver or 
 416 grains of standard silver. That much silver was to 
 constitute a dollar and each dollar was a unit. ' ' With a 
 triumphant expression of countenance and a ridiculous 
 little swagger, the spectacular Mr. Coin resumed his seat. 
 The keen witted lawyer had smiled pityingly as the argu- 
 ment, which was composed of equal parts of bounce and 
 bumptiousness, proceeded, and it was with real commis- 
 
S8 SOUND MONEY. 
 
 eration in his voice for the ignorance of his opponent that 
 he replied. 
 
 "Fact and fiction are so intimately interwoven in 
 the statements of my misguided young friend," he began, 
 * 'that I find it difficult to determine whether his misstate- 
 ments are the result of ignorance or deliberation. For 
 instance, he wants us to believe that this Nation was not 
 born until the seventeenth day of September, 1787. 
 I have always been taught to celebrate the birthday of 
 my country on the fourth of July, and to fix its date at 
 1776. Having been set right by Mr. Coin, however, I 
 have no doubt that the other 67 millions of us will at 
 once revise our calendar to meet his views. ' ' 
 
 This sally was greeted with a roar of laughter, and 
 the witness continued: "The United States of America 
 did not begin their existence with the adoption of the con- 
 stitution, but with the signing of the Declaration of In- 
 dependence, and the Congress of the Confederation had 
 full power delegated to it to act in the matter of establish- 
 ing a system of money, a coinage and a paper currency. 
 It not only had the power, but it acted. It issued paper 
 money, raised loans and paid debts. It enjoyed and used 
 every parliamentary prerogative as the representative of 
 the whole people, and did all this in the name of the 
 United States of America. After the constitution was 
 adopted and the country was restored to tranquility, 
 after those sturdy sires of ours had held the power and 
 glory of England so cheap that with their little patriot 
 few they had dared her and had driven her redcoats from 
 the free soil of a free people, Congress found time to turn 
 its attention to the coinage of money on its own account. 
 
 "Upfto this time the only coins had been Spanish sil- 
 ver and gold, with a few stray pieces of French and 
 
SOUND MONEY. 39 
 
 British gold, together with a vagrant copper coinage 
 culled from the coffers of half a dozen different nations. 
 
 "On the adoption of the constitution all the acts of the 
 Congress of the Confederation had been ratified, among 
 them those establishing the decimal system of enumerat- 
 ing money, with the dollar as the unit. Not a silver or a 
 gold or any other kind of a dollar had been established, as 
 I have already pointed out, not 371^ grains of silver or 
 24.7 grains of gold, which was afterwards established 
 by Congress as the gold dollar, but, in the language of the 
 resolution, 'one dollar. ' Why, in the index to this book, ' ' 
 and here he opened it at the letter M and pointed it out to 
 the three commissioners, "the matter is referred to in this 
 way: 'Money unit to be a dollar,' not 'Money unit to be 
 37 r X grains of silver,' as it would be were Mr. Coin's 
 assumption correct. 
 
 "On Tuesday, August 8, 1786, Congress passed the 
 following: 
 
 " 'Resolved, That the standard of the United States of 
 America, for gold and silver, shall be eleven parts fine and 
 one part alloy. 
 
 " 'That the money unit of the United States, being 
 by the resolve of Congress of the 6th July, 1785, a dollar, 
 it shall contain of fine silver 375y 6 Tr% grains. 
 
 ' ' 'That the money of account to correspond with the 
 division of coins, agreeably to the above resolve, proceed 
 in a decimal ratio, agreeably to the forms and manner fol- 
 lowing, viz: 
 "'Mills The lowest money of accompt, of which 
 
 1,000 shall be equal to the federal dollar or money 
 
 unit * o.ooi 
 
 " 'Cents The highest copper piece, of which 100 shall 
 
 be equal to the dollar 0,010 
 
40 SOUND MONEY. 
 
 " 'Dimes The lowest silver coin, 10 of which shall be 
 
 equal to the dollar o. i oo 
 
 ' ' 'Dollar The highest silver coin ' . . i.ooo 
 
 ' ' 'That betwixt the dollar and the lowest copper coin 
 as fixed by the resolve of Congress of the 6th July, 1785, 
 there shall be three silver coins and one copper coin. 
 
 " 'That the silver coin shall be as follows: One coin 
 containing iSy^A grains of fine silver, to be called A 
 Half Dollar. One coin containing 75-1^- grains of fine 
 silver, to be called A Double Dime; and one coin contain- 
 ing 37-iWV grains of fine silver, to be called A Dime. 
 
 " 'That the two copper coins shall be as follows: One 
 equal to the icoth part of the federal dollar, to be called 
 A Cent; and one equal to the 2ooth part of the Federal 
 dollar, to be called A Half Cent. 
 
 ' ' 'That two pounds and a quarter avoirdupois weight 
 of copper shall constitute 100 cents.' 
 
 "You observe," said Mr. Ewing, as he paused in his 
 reading for a moment, "that if we adopt Mr. Coin's reas- 
 oning for the establishment of 371^ grains of silver as the 
 unit, and having distinctly shown that he did not go back 
 far enough, he is now bound to admit that he was mis- 
 taken, and to revise his statement so that it reads: 'Copper 
 was established as the unit of value of our money. Two 
 pounds and a quarter of the red metal was constituted one 
 dollar, and every dollar a unit, and that unit has never 
 been changed. ' ' ' 
 
 There was another roar of laughter and applause as 
 the witty lawyer made this telling point. 
 
 ' ' After he and his friends succeed in their efforts to get 
 fifty cents worth of silver freely coined into one hundred 
 cent dollars, without limit, at a ratio of 16 of silver to i of 
 gold, their next move will doubtless be to egg on the cop- 
 
SOUND MONEY. 41 
 
 per miners to agitate for the free and unlimited coinage of 
 their product at a ratio of two pounds and a quarter avoir- 
 dupois, of fine copper, worth about 32 cents, to 37 1^ 
 grains of fine silver, worth about fifty cents, or 23.2 grains 
 of pure gold, worth one hundred cents, and that this money 
 shall be legal tender to any amount. They can find just 
 as good authority for copper coinage as for that of silver 
 along the same line of reasoning. They will find support, 
 not only in this act of Congress establishing 2 % pounds 
 of copper as the unit of value, but on the free silver argu- 
 ment that because silver was once valuable in the propor- 
 tion of 1 6 to i of gold, it ought to be still coined at that 
 ratio, so copper, which was at a ratio of 2 to i of gold 
 when the Spaniards invaded Peru, may also be, to quote 
 their pet expression 'rehabilitated and restored to its full 
 value and money function by free and unlimited coinage 
 at a parity with gold and silver. ' * This caused another 
 roar of laughter, mingled with cheers, as the full absurdity 
 of the free silver position became plain to the attentive 
 and intelligent audience. 
 
 ''The remaining clause of this act," resumed Mr. 
 Ewing, "reads as follows: 
 
 " 'That there shall be two gold coins: One containing 
 246 T Y<nr grains of fine gold, equal to 10 dollars, to be 
 stamped with the impression of the American eagle, and 
 to be called An Eagle: One containing 123-^^ grains of 
 fine gold, equal to 5 dollars, to be stamped in like manner, 
 and to be called A Half Eagle. ' 
 
 ' 'This act recognizes the unit and fixes the amount of 
 copper, silver and gold which it shall contain at 2 ^ 
 pounds, avoirdupois, of copper, 375^ 4 ir grains of fine sil- 
 ver and 24 T 6 o 2 <nr grains of fine gold. I defy Mr. Coin or 
 anybody else to find in it any excuse whatever for the 
 
THE. TWO 
 VNITJ? RV/N 
 AHD H/DE 
 
 WHAT HAPPENED TO 
 
 MONEy WHEN THE 
 AWAY 
 
 wtf, 
 
Under free Coinage of 
 
 Copper Mrs. Smith Does out 
 
 to buy a pound of steak, 
 
 Mr. Smith takes along the cash to 
 pay for it In the family wheelbarrow. 
 
42 SOUND MONEY. 
 
 absurd statement that the unit of our money was denom- 
 inated as so much silver. If he can do so to his own satis- 
 tion I advise him to swear off thinking and take the gold 
 cure without delay," concluded the clear headed lawyer 
 as he handed the book, opened at the page from which he 
 had quoted for the inspection of the three commissioners. 
 
 Coin was furious. In this knock-down blow he recog- 
 nized the interesting truth that war had been declared on 
 his mistatements of fact, and that logical arguments on 
 true foundations must inevitably crush all the life out of 
 his plausibly constructed fairy tales. Something must be 
 done to stem the tide. As he had himself concocted the 
 silver unit idea he felt all the pride of a parent in his off- 
 spring, even though this child of his imagination was 
 illegitimate and spurious. While he was rapidly revolv- 
 ing in his mind some plan of reply, his friend, Commis- 
 sioner Rafferty, came to his relief. 
 
 "Do I understand you to say, sir," he asked, "that it 
 was this act under which our mint was established?" 
 
 "I did not make that statement," was the reply, "nor 
 would it be strictly true. ' ' 
 
 "I thought not," said Rafferty. "Now, sir," he 
 went on with the air of a man who has made an important 
 discovery, "I presume you neglected to bring with you 
 the act of 1792 under which our mint was actually estab- 
 lished." 
 
 "Your presumption, then, is in error, sir," replied Mr. 
 Kwing. "I have here the original act as printed at the 
 time. This is the third volume of the "Debates and Pro- 
 ceedings in the Congress of the United States. ' ' It reports 
 the second Congress from October, 1791, to March, 1793, 
 inclusive. Turning to pages i35i-'2-'3-'4-'5 and '6 of 
 the appendix we find the full text of 'An Act Establishing 
 
SOUND MONEY. 43 
 
 a Mint and Regulating the Coins of the United States' 
 approved by President George Washington, April 2, 1792. 
 You will observe that this act is not for the purpose of 
 establishing a system of money, nor the unit of that 
 money, nor even for establishing a coinage. Those things 
 had already been done by a former Congress, and this act 
 was for the purpose of putting into effect the work of 
 their predecessors and 'regulating' the coinage they had 
 already provided for by law by bringing the amount of 
 gold and silver in the coins into conformity with the ratio 
 of the value of the two metals as they then sold in the 
 markets of the world. The previous Congress had re- 
 solved that 375i 6 o 4 o- grains of silver should be contained in 
 (not be} a dollar, and that an eagle should contain 246 T 2 o 6 o 3 o 
 grains of gold. The congress of 1792 changed these pro- 
 portions to 37iyV an d 247!, respectively. The unit of 
 value was not reaffirmed, but taken as already settled by 
 the means I have shown, and so were the names of the 
 various coins. This work had been already done and 
 well done. It would have been folly to do it over again. 
 ' 'Section 9 of the act is the only one which touches on this 
 branch of the subject. I will read you the section complete. 
 " 'And be it further enacted, That there shall be from 
 time to time struck and coined, at the said mint, coins of 
 gold, silver and copper of the following denominations, 
 values and descriptions, viz: Eagles, each to be of the 
 value of ten dollars, or units, and to contain 247 grains 
 and | of a grain of pure, or 270 grains of standard gold; 
 Half Eagles, each to be of the value of five dollars, and 
 to contain 123 grains and f of a grain of pure, or 135 
 gains of standard gold; Quarter Eagles, each to be of the 
 value of two dollars and a half dollar, and to contain 61 
 grains and of a grain of standard gold; Dollars, or 
 
44 SOUND MONEY. 
 
 Units, each to be of the value of a Spanish milled dollar, 
 as the same is now current, and to contain 371 grains and 
 r \ parts of a grain of pure, or 416 grains of standard, 
 silver; Half Dollars, each to be of half the value of a 
 dollar, or unit, and to contain 185 grains and \\ parts of 
 a grain of pure, or 208 grains of standard silver; Quarter 
 Dollars, each to be of one quarter the value of the dollar, 
 or unit, and to contain 92 grains and \\ parts of a 
 grain of pure, or 104 grains of standard, silver.' " 
 
 ''Excuse me," interrupted Chairman Clench, "If my 
 two mates, here, are satisfied, I am, and there is no need 
 to read any further on this point. ' ' 
 
 "I surely am," assented Hobbs with emphasis. 
 
 "I've heard enough law quoted," said Rafferty, "but 
 I am not quite clear on your conclusions. Would you 
 mind summing them up?" 
 
 "With pleasure," replied the lawyer. "Congress, by 
 resolution of July 6, 1785, established the decimal system 
 of money with one dollar as the unit. The first metal in 
 which the value of that unit was expressed was copper, 
 neither silver nor gold being mentioned. On August 8, 
 1786, Congress advanced the coinage question several 
 steps by determining the fineness of the standard gold and 
 silver, and denominating the quantity of silver, gold or 
 copper which should be contained in a dollar, that being 
 the agreed abstract unit of value. By the same act 
 the other coins were named in a decimal system or ratio, 
 and the amounts of gold and silver they were to contain 
 determined. March 4, 1792, it being then expedient to 
 begin coinage, Congress passed another act specifying in 
 detail how the mint should be established and conducted. 
 It also added to and amended the two former acts in refer- 
 ence to the weights of gold, silver and copper in the 
 
SOUND MONEY. 
 
 45 
 
 various coins. At the same time it confirmed, by its 
 silence, all those parts of the two previous acts which it 
 did not amend; including the abstract unit of value, which 
 was and is as abstract as the unit of arithmetic, and the 
 names and designs of the coins and the decimal system. 
 If any preference was shown, it was shown to copper, 
 whose coinage and value, as compared with the unit, 
 was first provided for. The above being the enact- 
 ments of Congress it matters little what the opin- 
 ions of individuals who debated the question may 
 have been. But it may be interesting to know that 
 Alexander Hamilton, the first secretary of the Treasury, 
 favored making a gold dollar the unit of value and had 
 many supporters. He maintained that gold was more stable 
 than silver, an opinion which has since been fully justi- 
 fied by the facts, while his opponents, the two Morrises, 
 Jefferson and others wanted silver named. The result 
 was that Congress determined to adopt neither metal, but 
 on the contrary, enacted a double standard, with gold and 
 silver on a parity at their then commercial ratio. That 
 ratio was not a fixed proportion, but was intended to be 
 varied as the commercial ratio changed, and as a matter of 
 fact it has twice been changed by the reduction of the 
 amount of gold in the gold coinage, while that of silver in 
 the silver dollar remained the same." 
 
 "That proves that silver was the unit," roared Coin. 
 "If it had not been they would have increased the amount 
 of silver instead of reducing the amount of gold. ' ' 
 
 This argument seemed to be a clincher, and for the first 
 time since the session opened, the silver advocates got up 
 sufficient enthusiasm to cheer. 
 
 "Oh, thou of little sense!" exclaimed Mr. Kwing. 
 "Don't you see the reason why? Because gold, being so 
 
46 SOUtfD MONEY. 
 
 much more valuable than silver, the number of silver coins 
 to be melted down and recoined would have been enorm- 
 ously larger than to recoin the gold, to say nothing of 
 making the silver coinage even more bulky and unwieldy 
 than it now is. It was simply a matter of convenience 
 and expense. Our standard was double and we were 
 obliged to rearrange our ratio in conformity with the laws 
 of commerce or lose all our gold. ' ' 
 
 This crushing reply settled Commissioner Rafferty's 
 rising hopes. When Mr. Bwing asked pleasantly, just 
 before resuming his seat, whether there was any further 
 question he would like to put, the free coinage commis- 
 sioner was dazed and wrapped up in his own bitter reflec- 
 tions to such an extent that he so far forgot his native 
 politeness as to make no reply. 
 
 Two main props had been knocked from under his pet 
 theory. 
 
 It was beyond question that, contrary to the false 
 teachings of Coin, silver is not "the money of the consti- 
 tution" in any greater degree than is gold. 
 
 Silver in any quantity is not and never was by law 
 established as the unit of our money system. That unit 
 of value, under the coinage act of 1792, might have been 
 equally represented by gold, silver or copper. 
 
 That unit of value always was until 1873 as abstract 
 as the figure i and its outward and its visible sign is $. 
 
SOUND MONEY. 47 
 
 CHAPTER II. 
 
 COIN'S FALSIFIED FIGURES EXPOSED. 
 
 So intense was the interest of the people in the ques- 
 tion of Sound vs. Dishonest Money, that two hours before 
 the time announced for the meeting to begin there were a 
 hundred men waiting for admission where but one could 
 by any possibility squeeze into the hall. All sorts and 
 conditions of men were represented, among them many of 
 the working class and office men out of employment. To 
 them the question bore a deep significance. They had 
 just passed through the privations entailed by a financial 
 and industrial panic, and were not anxious to renew the 
 experience. If free silver coinage meant that, as all the 
 respectable newspapers assured them it did, they wanted 
 none of it. 
 
 When Harvey Coin arrived at Randolph and LaSalle 
 streets, a few minutes before 10 o'clock, he found a 
 strong detail of policemen busily engaged in preserving 
 order among an immense crowd which seemed bent on 
 storming the door of the Industrial World building. It was 
 only after much difficulty and making proof of his identity 
 to the intelligent officer stationed at the door, that he was 
 enabled to make his way upstairs. On arriving in the 
 hall he was at once recognized by the crowd, packed like 
 figs in a box, and a passageway was opened for him to 
 the platform. From the cheering which took place when 
 Coin mounted the rostrum and greeted the three commis- 
 sioners, who were already in their places, it was apparent that 
 the silver element was present in force to cheer its leader. 
 
48 SOUND MONEV. 
 
 From every side came cries of "Coin, Coin!" which, 
 as that gentleman himself might say, were he writing the 
 narrative of what occurred, ''The distinguished financier 
 acknowledged with a courteous bow and an engaging smile, 
 whose magnetism thrilled the senses of all beholders." 
 
 Before the session was declared open, Coin advanced 
 to the front of the little stage and said: "Mr. Chairman, 
 it is evident that this hall is not- large enough to accom- 
 modate even a handfull of those who wish to hear the pro- 
 ceedings. I would suggest that we move into more com- 
 modious quarters." 
 
 "No arrangements have been made for that, ' ' returned 
 Chairman Clench. "The Federation didn't vote us. any 
 money for hall rent. ' ' 
 
 "That need not trouble you," said Coin. "The 
 Bi-metallic L,eague will foot the expense if we can find a 
 a larger hall for to-day's session." 
 
 After some consultation it was decided to accept Coin's 
 proposal and move to Plasterers' Hall, and as soon as this 
 was announced the news was transmitted to the crowd in 
 the street. In less than two minutes the small army of 
 interested men was on its way to the West side. Once 
 arrived there, no time was lost, and with a large table on 
 either side of the platform, one for the accommodation of 
 the commission and the other for witnesses and reporters, 
 the proceedings were immediately opened. 
 
 "If Mr. Coin is ready to continue his evidence," said 
 Commissioner Rafferty, "I move that he be heard." 
 
 "I would like to ask," said Commissioner Hobbs, 
 whether the gentleman is willing to answer questions as 
 he goes along? It would simplify the matter, I think. ' ' 
 
 "Answering questions is my little specialty," 
 responded Coin, with a smile. "Anybody may ask me 
 
SOUND MONEY. 49 
 
 any question pertinent to the branch of the subject I am 
 discussing and I will answer to the best of my ability. 
 But I warn would-be questioners that I'll not spare 
 them. " As he said this he drew himself up to the fullest 
 extent of his feet and inches, and assumed an expression 
 of almost cannibalistic ferocity. A keen-eyed gentleman 
 who occupied a front seat, and who had deposited 
 under his chair a number of books and papers, did not 
 seem to be at all awed by this declaration. 
 
 "Prior to 1873," began the witness, "when the 
 stealthy crime of demonitization was committed, we had 
 coined one hundred and five millions of silver in the 
 United States. You will find these figures in my invalu- 
 able hand-book. ' ' 
 
 "May I interrupt you with a question?" asked the 
 keen-eyed gentleman before mentioned. 
 
 "Certainly," replied the witness. 
 
 "Then," said the gentleman, who was Clinton B. 
 Evans, editor of The Economist, an able financial writer 
 and an acknowledged authority, on economics, "will you 
 state where you got those figures?" 
 
 "I don't recollect," was the evasive reply. 
 
 "In that case," said Editor Evans, "I would advise 
 you to take them out of your invaluable hand-book. I 
 hold here the report of the director of the mint for 1894, 
 which, on page 343, proves that you are wrong by the 
 trifling amount of $37,365,115.70, or more than all the 
 money coined by the United States in the first thirty- 
 seven years after the opening of the mint in 1792." 
 
 This was a poser, and Coin staggered under it. Some- 
 body had at last taken the trouble to investigate his fig- 
 ures, and he trembled when he thought what damning 
 exposures were possible if anything like a thorough search 
 
50 SOUND MONEY. 
 
 of his alleged facts should be made. In an instant he 
 had decided on his course. He would bluff the editor, 
 the commission and the crowd, as he had already bluffed 
 the unsuspecting public. 
 
 "I deny it!" he shouted wildly. The audience, 
 which had waited breathlessly for his reply to the serious 
 accusation of falsifying statistics which have been a mat- 
 ter of government record, year by year, for more than a 
 century, cheered like mad. The charge seemed too pre- 
 posterous. 
 
 "I repeat," he said with distinct emphasis on every 
 word, "that from 1792 until 1873 we only coined 105 
 million dollars of silver. ' ' 
 
 "Will one of the commissioners please read to the 
 audience these figures from the report of the Secretary of 
 the Treasury for 1894," sa id Mr. Evans quietly as he 
 handed the book to Commissioner Rafferty, who hap- 
 pened to be the member nearest to him. 
 
 "One hundred and forty-two millions, three hundred 
 and sixty-five thousand, one hundred and fifty dollars 
 and seventy cents, ' ' read the free silver member of the 
 commission, who, evidently, did not relish his job. 
 
 "My figures are right, nevertheless," insisted Coin. 
 ' 'The director of the mint has done the falsifying, not I. 
 In fact, I can't be wrong. I shall force him to retract 
 his statement. ' ' 
 
 There was a roar of laughter at this absurd threat and 
 the sentiment of the audience underwent a change as 
 remarkable as it was sudden. Coin's whole argument 
 had been built upon alleged statistics the truth or falsity 
 of which the average man would have no means of veri- 
 fying. If he lied in his statistics the whole free silver 
 fabric fell to the ground, as every man who had been 
 

 SOUND MONEY. 51 
 
 warped from sound money views to free coinage at 16 to 
 i, by Coin and his arguments, was ready to admit. The 
 eager listeners were quick to see the significance of what 
 had happened and were now intently watching for the 
 next move of the aggressive editor. They had not long 
 to wait. 
 
 "Up to the crime of 1873," continued Coin, "when 
 John Sherman, in obedience to orders received by cable, 
 probably, direct from London, sneaked the bill through 
 Congress which degraded and demonetized the dollar of 
 our daddies, the silver dollar was our unit of values and 
 the money of the people. In its place he substituted the 
 gold of England with the wicked purpose of bringing this 
 country to the verge of ruin and now, twenty- two years 
 later, we have reached that verge and find ourselves 
 bound, hand and foot, and delivered over to the clutches 
 of John Bull." 
 
 Here Chairman Clench asked a question. 
 
 1 'You have stated, Mr. Coin," he said, "that the sil- 
 ver dollar is the dollar of our daddies and the money of 
 the people. How many silver dollars had been coined 
 prior to 1873?" 
 
 "Eight millions," replied Coin after referring to his 
 "invaluable hand book." 
 
 ' 'That looks like a mighty small few to be in use as 
 the money of the people," commented the big blacksmith. 
 "If our population in 1873 was about forty millions only 
 one person in five could get one of these dollars. ' ' 
 
 "Not even one in five," put in the editor. "Mr. 
 Coin needs to revise his figures if he ever means to tell 
 the straight truth without any frills or fabrications. In 
 this same report, page 339, the Director of the Mint shows 
 that from 1792 to 1873, the year in whichCongress commit- 
 
52 SOUND MONEY. 
 
 ted' that 'horrible crime' only seven million, seven hun- 
 dred and thirty-four thousand, seven hundred ana thirty- 
 eight of these 'dollars of our daddies' were ever coined." 
 
 There was again a sensation all through the house. 
 What did this man mean by brazenly foisting upon the 
 public such fraudulent statistics? 
 
 "That is immaterial," Coin replied, looking very 
 uneasy, "I merely gave round numbers." 
 
 "A statistical hand book," was the retort, "doesn't 
 deal in numbers so round that they make a, difference of 
 nearly four per cent not if it's an honest hand book." 
 
 "How can you expect a man who advocates national 
 dishonesty to be honest himself?" shouted a man in the 
 gallery and the audience applauded the question which 
 required no answer. 
 
 Before Coin could recover his breath Evans was at him 
 again with another question. 
 
 ' 'Why do you call silver the money of the people ?' ' he 
 asked. 
 
 "Because it has been so ever since the dawn of his- 
 tory," was the reply. "Because on account of its greater 
 value than gold and its greater durability it is better 
 adapted for money purposes. Gold has ever been the 
 money of the rich, silver that of the poor. The people 
 want silver and they are bound to have it. ' ' 
 
 "Do you consider Mulhall a reliable statistician?" 
 inquired the editor. 
 
 "None better," said the witness. "I quote him fre- 
 quently. ' ' 
 
 ' 'Well, in that case, ' ' continued the editor, ' 'you might 
 correct your statement that silver is more durable as coin 
 than gold, just to keep in line with your favorite author- 
 ity. Mulhall states that gold is far more durable in coin 
 
SOUND MONEY. 53 
 
 than is silver. This is what he says. ' ' Here Mr. Evans 
 opened Mulhall's Dictionary of Statistics and read this 
 extract: 
 
 "Gold coin loses one per cent, in weight in fifty years. 
 Silver coin loses one per cent, of its weight in ten years. 
 Yearly one and one-quarter ton of gold and eighty-eight 
 tons of silver disappear in this way. ' ' 
 
 Coin looked confused and refused to believe it. * 'Mul- 
 hall is in error," he declared. "It is quite impossible." 
 
 "It is the easiest thing in the world to understand 
 that," said Chairman Clench. "I'm treasurer of our 
 union and I have some of the union's money with me on 
 its way to bank, so I can show you. ' ' He took a bag 
 containing coin from his pocket and selecting a gold eagle 
 and ten silver dollars he continued: ' 'This here gold piece 
 is worth, to-day, these ten silver pieces. Suppose I carry 
 the whole lot around in this bag; the gold piece, which 
 has only two-thirds as much surface as each of the silver 
 ones, has only two sides to wear. The silver ones have 
 twenty sides to wear, and allowing for the difference in 
 size they have 30 times the surface to get ground off and 
 worn away that the gold coin has. ' ' 
 
 This homely blacksmith's homely illustration in sup- 
 port of the statistical expert's statement was received with 
 a round of applause. 
 
 "Now, Mr. Coin," continued the editor, "about your 
 claim that silver has been the money of the people ever 
 since the dawn of history, I don't believe it, and no more 
 does your friend Mulhall. It was and is the favorite money 
 of half civilized people. It was the favorite money of the 
 most civilized nations until silver was produced so plenti- 
 fully as to destroy its equalibrium of value in relation to 
 gold. Which are the nations that favor silver by making 
 
54 SOUND MONEY. 
 
 it their standard? Why, China, Japan, Mexico, Bolivia, 
 Costa Rica, Guatemala, Honduras, Nicaragua, Salvador, 
 Colombia and Peru. Do you want the United States to 
 lower herself to the level of those countries?" 
 
 "How about India and Russia?" asked Coin. 
 
 "Do you wish to degrade American labor and Ameri- 
 can citizenship to the level of India and Russia?" inquired 
 the editor; and his query was received with a round of 
 applause in which even the free silver workingmen joined. 
 
 "Moreover," he continued, "India has shut the doors 
 of her mints against the further coinage of silver, and 
 Russia has just issued an edict which permits commercial 
 contracts to be made upon a gold basis. It looks as if 
 she, too, were getting into line, doesn't it?" 
 
 "It may to you," replied Coin, wearily. "I argue 
 for a bimetallic system under which gold and silver may 
 walk arm in arm into the mints as bullion and, still arm 
 in arm, walk out again as coin; each dollar exactly the 
 same in value as the other dollar. I point with pride to 
 the double standard countries in which this is possible 
 France, Belgium, Holland, Spain, Switzerland, Greece, 
 Cuba, Italy, Venezuela, Haiti and Argentine. " 
 
 A titter of laughter ran through the audience at the 
 mention of Argentine, whose fiat paper currency was the 
 cause of Baring Bros' . failure, whose downfall for a time 
 threatened to engulf Coin's favorite bugaboo, England, 
 and would have done so if the Bank of England had not 
 come to their assistance in a manner which violated every 
 precedent of record since the establishment of that mighty 
 institution. Taking advantage of the embarrassment this 
 snicker caused the witness, Editor Evans remarked: 
 
 "Germany, England, Austro - Hungary, British 
 America, Brazil, Denmark, Portugal, Sweden, Turkey, 
 
SO UNO MONE Y. 55 
 
 and even the Negro republic, Liberia, are at present on a 
 gold basis. France, while nominally a bimetallic coun- 
 try, is practically on a gold basis; and if you want to 
 find it out, you'd better take some silver bullion to her 
 mint and see how much free coinage you'll get. It's non- 
 sense to talk about the United States stemming the tide 
 with only the assistance of the present free coinage coun- 
 tries. We'd be swamped before we knew where all our 
 gold had gone to. ' ' 
 
 "One subject at a time, Brother Evans," suggested 
 the Chairman. 
 
 "Yes; we'll get to that later on," said Coin. "Be- 
 fore we go any further ' ' 
 
 "Before we go any further I want to finish what I 
 started to say about your friend, Mulhall," Evans broke 
 in. "He gives a table of the total stock of gold and sil- 
 ver in the world at six periods from 1600 to 1890." 
 
 * ' Much comfort that will give you, ' ' sneered Coin. ' 'I 
 have quoted it on page 18 of my book." 
 
 "Garbled it, you mean," retorted the sturdy editor. 
 "Here is the table, with the values, given by Mulhall in 
 pounds sterling, and converted into dollars for the con- 
 venience of plain Americans like myslf. It shows that in 
 the year 1600 all the silver in the world was valued at 
 $780,800,000 more than all the gold in the world. In 
 1700 its value was $i, 302, 960 more than all the 
 gold, silver having increased in quantity from $1,346,- 
 880,000 to $2,196,000,000, while gold had increased from 
 $566,080,000 to $893,040,000. In the year 1800 the 
 stock of gold had increased to $1,864,160,000, and silver 
 to $3,708,800,000, an excess over gold of $1,844,640,- 
 ooo. By 1848 gold had increased to $2,440,000,000 and 
 silver to $4,723,840,000, an excess over gold of $2,283,- 
 
56 SO UND MONE Y. 
 
 200,000. Then came the enormous gold discoveries in 
 Australia and California, with the result that by 1880 
 the stock of gold had increased to $5,328,960,000, an 
 increase of nearly three billions, while silver only in- 
 creased $595,360,000, or to $5,319,200,000, giving gold 
 an excess in value over silver for the first time in the 
 history of the world of $9,760,000." 
 
 "That period included seven years of the time of 
 demonetization in which John Sherman led the world in 
 1873," interrupted Coin, hotly, with an attempt at bluster. 
 
 "John Sherman didn't do anything of the kind," 
 replied the editor. "I'm primed with facts, to-day, to 
 meet the whoppers you've been telling, and you can't 
 bluff me down." 
 
 "Good enough," "Go it, Evans, old boy," and sim- 
 ilar cries came from the audience, mingled with cheers 
 and applause as the brainy editor and the self-appointed 
 financial Moses confronted each other with defiance in 
 the eyes of the one and fear in the eyes of the other. 
 
 1 'The United States did not lead the way in demone- 
 tization," continued the editor, "and you know it, Mr. 
 Coin, as well as I do. England adopted a single gold 
 standard in 1816. Why didn't that reduce the commer- 
 cial ratio of the value of silver to gold? It stood at 15.28 
 to i when silver ceased to be redemption money in Eng- 
 land, yet in the following year it stood at 15.11. The rea- 
 son is simple if England didn't want silver some other 
 nation did, and the one fixed law which governs the com- 
 merce of the world regulated the price of the com- 
 modity." 
 
 "But in the following year, 1818, it had gone to 15.35, 
 asserted Coin. "From that time on, owing to the demone- 
 itzation of silver by England, the ratio between the two 
 
SOUND MONEY. 57 
 
 metals began steadily to increase until 1873, when John 
 Sherman put the white metal on the toboggan slide and 
 down it went. ' ' 
 
 * 'That statement is not borne out by the ratio table 
 which you indorse by publishing it nor by the facts as 
 given by Mulhall," said the editor, cuttingly. "Why 
 don't you begin with the year 1760 when the two metals, 
 with a ratio of 14.14, were closer together than at any 
 modern period for which we can obtain reliable statistics? 
 In 1687 the ratio had been 14.94, so that by 1760 the white 
 metal had very distinctly appreciated in value. By 1707 
 silver's value always measured, like any other commod- 
 ity, in gold, you will observe, had fallen from 14.94 to 
 15.44. Then the ratio dodged up and down for years 
 until, as I just said, by 1760 one part of gold would only 
 purchase 14. 14 parts of silver. There was no demoneti- 
 zation to cause this instability." 
 
 "From 1687 to 1873, nearly two centuries," broke in 
 Coin, ' 'the variation in the ratio was only two points." 
 
 " Only two points," repeated the editor, "You talk 
 as if this were a mere trifle. Why, man, it means an 
 increase in value of eleven per cent on every grain of gold 
 in the world." Coin looked as Billy Patterson did after 
 he was struck by that notorious person whose identity 
 remains an unsolved mystery even unto this very day. 
 "Adding the combined stocks of gold in the world from 
 1 700 to 1880," continued the editor, "the nearest to the 
 period for which I can readily obtain figures, this depreci- 
 ation of two points in the ratio between silver and gold 
 makes an increase in the value of the yellow metal of, in 
 round numbers, eleven hundred and fifty-eight millions of 
 dollars. Is that a sum of money to be dismissed in your 
 airy fashion, Mr. Coin?" 
 
58 SOUND MONEY, 
 
 Coin made no attempt to reply. Indeed, no reply 
 was possible which would not write him down, in the 
 words of the immortal William, ''an ass." 
 
 "What accounts for the state of facts I have cited and 
 they are true facts?" Evans went on. 
 
 ''The stock of each metal in the world," replied Coin. 
 "If there is produced ten times as much gold as silver, 
 silver will be worth that much more in a direct ratio with 
 gold and vice versa. ' ' 
 
 ' ' My dear young friend, ' ' said the editor, pityingly, ' 'do 
 make an effort to learn a little political economy, no matter 
 where you learn it. Supply and demand govern every- 
 thing and it doesn't matter what the supply amounts to 
 provided there is a demand for it. For instance, from 
 1821 to 1840 the ratio of the entire stock of silver to the 
 entire stock of gold in the world was 33. i and silver was 
 $1.20 per ounce. From 1881 to 1888 that ratio had fallen 
 to 1 8. 6. If your theory of the relative value of the two 
 metals is correct the price of silver should have been $2. 14 
 per ounce. Its actual price, however, was 97 cents per 
 ounce, and these figures, which I quote from Mulhall, dis- 
 pose of your contention that, taking into account the 
 world's stocks of gold and silver their true ratio is 
 15^ to i." 
 
 "I'll meet that statement later on," said Coin. 
 
 ' 'Very well. Now, to continue what I was saying 
 about demonetization," resumed the editor, "Germany 
 was the second country to adopt that policy. That great 
 statesman, Bismarck, had not failed to grasp England's 
 reasons for so doing. He had seen her drawing her bal- 
 ances in gold from the nations of the earth, year after 
 year, and loaning it back to them at interest. He had 
 long determined that his beloved fatherland should at 
 
SOUND MONEY. 
 
 least participate in this profitable arrangement, if it could 
 not monopolize it, at the first favorable opportunity. That 
 opportunity came in 1871 when, after the German armies 
 had swept the empire out of France, the enormous war 
 indemnity became due from the vanquished to the victors. 
 Bismarck at once announced that the country would adopt 
 gold as its standard and as soon as the legislative arrange- 
 ments and internal union were completed this was done 
 in 1872. Therefore Germany was practically on a gold 
 basis in 1871 , two years before John Sherman was guilty of 
 that 'horrible crime,' which seems only to have been dis- 
 covered years after it was committed. In 1873 it did not 
 matter a brass farthing to silver whether it or gold were the 
 standard in the United States, for there was practically 
 none of either metal in circulation. Our total stock of gold 
 was $135, 000,000 and we had $17, ooo, ooo of silver in subsi- 
 diary, light-weight coinage token money with an intrinsic 
 value considerably less than its face, but still at a prem- 
 ium. Why was this, Mr. Coin?" 
 
 "Because the war had forced us to a paper basis 
 and we could not resume specie payments," replied 
 Coin. 
 
 "That is partly true," returned Evans, "but like 
 nearly everything else you say it isn't entirely so. It isn't 
 the whole economic truth. The fact is that wherever you 
 have two kinds of money, one cheap, as our greenbacks 
 were then and for twelve years before, and a dear kind, 
 like gold at a premium and silver too, at that time, for 
 there wasn't a silver dollar in circulation, the cheap 
 money will drive the dear money into hiding. The selfish- 
 ness of man will hoard it away and give to his neighbor 
 in exchange for his labor and commodities the cheapest 
 money he can make him take. ' ' 
 
60 SOUND MONEY. 
 
 "I don't admit that. It doesn't hold good with our 
 silver dollar to-day, though its commercial value is only 
 51 cents," said Coin. 
 
 "For a very good reason," returned the editor. "If 
 you don't like your silver dollar, your Uncle* Sammy 
 will obligingly swap you a gold one for it. So long 
 as he stands ready to do that you are not very eager 
 for the gold. I^et him announce that after a certain date 
 he will cease to do so, and then see how fast you'll get a 
 move on you for the sub-treasury." 
 
 "That's just the point," said Coin; "that's where I 
 wanted to get you. Don't you see that if we had free 
 coinage of both gold and silver, on equal terms, we could 
 fix the ratio at 16 to i, or anywhere else we pleased? 
 Then each dollar, gold or silver, would be equally worth 
 100 cents." 
 
 "For how long, Sonny?" howled a great big fellow 
 in the audience. "I'm a circus man," he went on, "and 
 I'm here with Ringling Bros', big show. I've traveled 
 half over the world with the white tents, and I've picked 
 up a little hoss sense, p'r'aps because I'm so much 
 with hosses. Now, I'll tell you what I'd do in a 
 holy minute if Uncle Sam was fool enough to coin all 
 the silver anybody chose to bring him, giving a gold dol- 
 lar for every 412^/2 grains of standard silver: I'm worth 
 $40,000, and I'd make a break for Siberia, or Germany, 
 or Mexico, or South America any foreign country 
 where they mine silver. I'd buy $40,000 worth of it, 
 bring it back here and swap it with Uncle Sam on that 
 basis. I'd make money. And I reckon there's thou- 
 sands of other men just as smart as I am." 
 
 "You forget, my friend," said Coin, as the big fellow 
 sat down, "that the market price of silver would rise im- 
 

 SO UND MONE Y. 61 
 
 mediately we opened our mints to its unlimited coinage." 
 ' 'Would it?" said Evans. ' 'There, is almost six billions 
 of silver in the world. The gold reserve in our treasury is 
 under one hundred millions, and it wouldn't take three 
 days to bring it down to nothing. Why, men would be 
 waiting with silver to exchange for every ounce of gold 
 that came in for coinage, like the line at the box office 
 of a theatre. With such a demand what would hap- 
 pen? Would the price of silver rise? Not at all. It 
 would send gold up instead. This would be the dump- 
 ing ground for as much silver as we could purchase 
 with gold. That's what." 
 
 By this time the audience was enthusiastically in 
 accord with the hard-headed editor. They recognized that 
 he was talking for principle, while his opponent was 
 talking for what there was in it for him. They cheered 
 Evans again, and thus emboldened he spent a few min- 
 utes selecting books and memoranda at the table, and 
 after repeated shouts of "go on," ''hit him again," 
 "you've got him on the run," etc., he resumed thus: 
 
 "I want to say something about this 'money of the peo- 
 ple" that Mr. Coin says the people will have silver. The 
 money of the people the masses, is the money that is 
 worth 100 cents in the dollar 365 days in the year. Not a 
 dollar that is worth 50 cents to-day and goes up to 55 cents 
 to-morrow because Japan has licked China out of tyer 
 boots and is going to make her pay 150 millions for the 
 fun she's been having. Or a dollar that is worth 100 
 cents to-day because the government holds it at par by 
 main force. There might be an end to that some fine 
 day, and that's what the foreigners were scared of when 
 they sold out their railroad and other stocks and bonds 
 and broke down our markets for securities. 
 
62 SOUND MONEY. 
 
 1 'But apart from other things that might be said about 
 silver, while it may be the 'money of the people,' in less 
 civilized countries than this, it certainly isn't popular in 
 this progressive land. Folks don't like it. If a man 
 changes a $10 note for you or pays you a $10 debt or wage 
 he always says 'Sorry I can't give you anything but sil- 
 ver,' or 'I know you hate to take silver, but I haven't 
 any currency,' or something of that sort. It isn't that 
 way with gold. That is the ideal coin. It isn't bulky, it 
 loses less by wear and tear than silver, as we have seen, 
 and its value is the same in every country under the sun. 
 
 "According to the treasurer's report for 1894, there 
 was, July i, $620,026,413 in gold coin in the United States 
 and $499,103,577 in circulation, leaving in the treasury 
 $120,922,836. What about the money of the people 
 the daddy dollars on the same date? There were just 
 109,210,342 of them in circulation, and 513,880,682 of 
 them lying idle in the vaults of the treasury. Why 
 weren't they out hustling around and earning their 
 keep as the gold was doing? Why weren't they hopping 
 around, raising prices and giving employment to the men 
 out of work as you and your friends claim free coinage 
 will do? What were they doing, loafing there in the treasury 
 vaults while the people were fairly yearning for them? 
 
 "I'll tell you, friend Coin, if you won't let the state- 
 ment hurt your feelings the people didn't want the 
 money which you claim is especially theirs so long as they 
 could get paper money or gold coin to use. 
 
 "Well, that's all I want to say at present," and as he 
 took his seat the speaker mopped the perspiration off his 
 forehead and the audience cheered him. 
 
 No vSooner had the aggressive editor taken his seat than 
 Commissioner Rafferty, who had been aching for an 
 
SOUND MONEY. 63 
 
 opportunity to make himself conspicuous, arose and 
 addressing the chairman, said: 
 
 "Our editorial friend, in giving his statistics from Mul- 
 hall and elsewhere, left this commission and this audience 
 in the dark with regard to the figures for 1890. If there 
 is any gentleman present who is able to supply that evi- 
 dently intentional omission, I, for one, would feel obliged 
 to him." 
 
 ' 'The commissioner is quite correct, ' ' said Coin. ' 'The 
 figures for 1890, after seventeen long years of dishonor 
 and degradation of silver following demonetization, tell 
 flatly against the argument of Editor Evans. I will read 
 them." 
 
 Selecting one from a number of books which he had 
 placed on the reporters' table he was about to begin read- 
 ing the figures, showing the stocks of gold and silver in 
 the world in 1890 when he was interrupted by the circus 
 man, who arose and said: 
 
 "I/et the chairman read off the figures. Then we'll 
 know whether we're getting straight facts or whether 
 you've monkeyed with them. ' ' The audience roared, and 
 Coin, with a great show of virtuous indignation, handed 
 a copy of Mulhall's dictionary, opened at the table, to- 
 gether with a memorandum giving the conversion into 
 dollars, to Chairman Clench, who read out the figures as 
 follows: 
 
 "Gold in the world, 1890, $6,026,800,000. Silver in 
 the world, $5,919,440,000 Excess of gold over silver, 
 $107,360,000." 
 
 "There!" cried Coin, triumphantly, "what did I tell 
 you? You see that gold has overtaken silver, and accord- 
 ing to natural law the more there is of anything on the 
 market the cheaper that thing must become. Those fig- 
 
64 SOUND MONEY. 
 
 ures prove, if they prove anything, that silver is again 
 becoming more precious, when measured in gold, and the 
 only thing it needs to restore it to its old value as a money 
 metal is the privilege of free and equal coinage with gold. ' ' 
 "I understand," said Chairman Clench, "that the 
 production of silver has been very much shut off in this 
 country, at any rate, since 1891. Is that correct?" 
 
 "It is," replied Coin. "Silver has not paid to mine 
 it; so, after being brought to ruin's brink by the aband- 
 onment of such silver coinage as we had under the 
 Bland- Allison act of 1878, and the Sherman act of 1890, 
 the mines were mostly closed in 1893, and thousands of 
 men engaged in them, and in the smelting works, and in 
 transportation, were thrown out of employment." 
 
 "Do I understand you that the mines were being 
 actually worked at a loss?" 
 
 "You do, sir;" replied Coin. "Mine-owners found 
 that they could not pay the wages of American labor 
 and were obliged to close down." 
 
 ' 'Your statements are very much at variance with the 
 report of theDirector of the Mint for 1894," said Editor 
 Evans, producing the document and opening it at pages 
 292 and 293. "We find," he continued, "that during 
 1891, '2 and '3 the world produced of silver $584,258,000 
 and of gold $434,176,000 or, in value, $150,082,000 more 
 silver than gold. So that, in the words of Mr. Coin, 
 according to natural law, 'the more there is of any com- 
 modity on the market the cheaper it must become. ' I 
 add to that, 'Provided that the demand does not equal the 
 supply.' That is the situation of silver in a nutshell, and 
 I don't see anything in the figures to encourage him. 
 He admits that the production of silver has been greatly 
 curtailed in this country. ' ' 
 

 SOUND MONEY. 65 
 
 "And more so in foreign countries, " interrupted Coin. 
 ' 'They have to a great extent stopped producing, and are 
 taking away our silver from us at their own price. Free 
 coinage would stop that, because our price would be one 
 part of gold for 16 parts of silver." 
 
 A feeble cheer from the now despondent silverites 
 greeted this assertion. 
 
 " Of the whole silver product of the world in 1891-2-3," 
 answered the editor, calmly, "we produced $233, 093, 200. 
 All other countries combined produced $351,1 64, 800. If 
 you or anybody else believes that it cost $2 an ounce to 
 mine this vast amount of silver, as you have publicly 
 stated, what must you think of the lunatics who in three 
 years have mined this enormous quantity $584,258,000 
 worth, for which they received the average price of 88)^ 
 cents an ounce?' ' 
 
 ' 'They were hoping for better times and the recogni- 
 tion of silver's righteous claims by this Nation," was 
 Coin's answer. 
 
 "I am glad he doesn't claim that they were doing it 
 from motives of philanthropy or the good of their health, ' ' 
 retorted the editor sarcastically. "Either their losses 
 reached the stupendous total of $652,420,433, according to 
 Coin's statement of the cost of production, or that gentle- 
 man is worthy of being a lineal descendant of Ananias and 
 Sapphira, his wife." 
 
 When brought face to face with this palpable absurdity 
 Coin had at first flushed as red as fire, and from that gradu- 
 ally faded to a ghastly, greenish white as the merciless 
 exposure went on. The cheers of the audience when the 
 fighting editor concluded warned Coin that he must make 
 some desperate effort to wriggle out of the plight into 
 which his reckless misstatements had landed him. Bluff, 
 
66 SOUND MONEY. 
 
 as usual, was his last ditch and he resolved to fight till 
 the last gasp if he had to die there. 
 
 "I never made that statement," he declared with a 
 face of marble and eyes gleaming like coals of fire. "It 
 was made by other people and I am not responsible for it." 
 
 "That is just the defense I expected," said the editor, 
 in an aside to the audience which was on the qui vive to 
 see how the matter would culminate. Turning to the now 
 utterly discredited would-be financier, he asked: 
 
 "Did you ever publish any book besides your 'invalu- 
 able hand book,' which you so frequently advertise?" 
 
 ' 'I did several, ' ' was the reply. ' 'I wrote the 'Finan- 
 cial School,' which has made more converts to free silver 
 than all the other literature and speech-making combined. 
 I also wrote " 
 
 "That's enough," interrupted Evans. "You don't 
 need to advertise the rest of your vicious trash to this 
 intelligent audience they're onto you now and you can't 
 fool them any more. This is the book, I believe?" and 
 he held up a copy of the now notorious "School, ' ' in which 
 prominent men and their opinions are libeled by whole- 
 sale." 
 
 "That's it," admitted Coin, looking fearful, yet still 
 defiant. Desperate would better describe his appearance, 
 perhaps. 
 
 "You consider yourself a man of judgment, do you 
 not?" inquired the editor. 
 
 "I do, and so do millions of my fellow citizens," 
 Coin answered, once more swelling up with his accus- 
 tomed bumptiousness. 
 
 "Have you ever given any practical attention to sil- 
 ver mining?" 
 
 "A great deal. I consider myself an expert." 
 
SOUND MONEY. 67 
 
 "Then, if that is the case, when you go home sit 
 down with a copy of your book and get acquainted with 
 the things you have written. Especially study page 74, 
 whereon you say this: 
 
 " 'It is estimated by all men of judgment who have 
 given practical attention to mining, that the silver in 
 existence has cost not less than $2.00 per ounce, and 
 many put it much higher. ' ' 
 
 The editor of The Economist, with this parting shot, 
 resumed his seat amid a perfect ovation of cheers. He 
 had gone out single-handed against a past master in the 
 arts of false logic, sophistry and falsification, and with the 
 tiny needle of truth had punctured the mammoth gas bag 
 of deceit which Coin had inflated with falsified figures 
 and the breath of untruth. 
 
 As for Coin, he looked like a man on the verge of 
 mental and physical collapse. Never since he was born 
 had he received such a drubbing, and, seeing the senti- 
 ment of the audience turned completely against him, he 
 was in despair. 
 
 "I'll get a favorable report or make them straddle be- 
 fore I'm through," he muttered, "no matter what effect 
 this exposure may have on public opinion. That's what I 
 contracted to do, and it isn't my fault if the facts are against 
 me. ' ' But he was glad when the investigation was de- 
 clared adjourned to the next day at the same place. 
 
68 SOUND MONEY. 
 
 CHAPTER III. 
 
 MORE COLOSSAL FRAUD. 
 
 The third day's session of Labor's Commission on 
 Coinage was ushered in with gray clouds and every prom- 
 ise of an April shower, and before 10 o'clock the rain had 
 begun to fall. That, however, proved no deterrent to 
 the crowds who thronged to Plasterer's Hall before 9 
 o'clock in the hope of getting a good seat from which to 
 view the speakers and listen to the arguments advanced. 
 
 Dispirited by the complete rout of Harvey Coin at the 
 hands of the men who had proved that not only did they 
 know and appreciate the facts, but also that they were able 
 so to present them as to dispel the fog of fiction in which 
 the silver argument was enveloped, a number of prominent 
 silver advocates positively refused to appear before the 
 commission. To be plain, these gentlemen talked very 
 well for buncombe in" Congress, or on the stump where 
 there was little or no chance of their being refuted. But 
 when it came to a running debate with such men as Evans 
 and Ewing had proven themselves, and with the moral 
 cetainty in their minds that the friends of honest money 
 had others of similar caliber in reserve, they decided 
 that discretion was the better part of valor and left their 
 paid attorney to meet the enemy alone. This, too, not- 
 withstanding the fact that they had been summoned to 
 Chicago by wire for the explicit purpose of making a 
 grand display of strength. 
 
 The hall was jammed to its utmost capacity long 
 before the proceedings opened, and when the chairman's 
 
SOUND MONEY. 69 
 
 gavel had commanded silence Coin was smiling and * 'still 
 in the ring. ' ' His exhibition of assurance, notwithstand- 
 ing the crushing defeats he had sustained, was something 
 wonderful. Being invited to resume his evidence, he 
 said : 
 
 "The unanswerable argument of the friends of the 
 white metal is the fact of its stability prior to demoneti- 
 zation and the continuous fall of silver since 1873. Eng^ 
 land demonetized silver in 1816, but as Germany, France 
 and the Latin Union, and the United States had their 
 mints open to the free coinage of the metal, the demand 
 thus created was sufficient to maintain its parity with gold, 
 and the action of England had no effect on the price of 
 silver. The United States closed its mints to silver and 
 made gold the sole measurement of values in February, 
 1873. Germany followed suit in July, 1873, and the 
 action of these two large nations caused a drop in the 
 commercial value of silver, of 2 per cent. , by the end of 
 that year. France and the Latin Union closed their mints 
 to the free coinage of silver in January, 1874, and by the 
 end of that year silver, as measured in gold, had declined 
 4 per cent. ' ' 
 
 "I'd like to ask the gentleman a question," inter- 
 rupted Editor Evans, who was again in attendance and 
 occupying a front seat. 
 
 "Certainly, Brother Evans," said Coin. "What 
 troubles you now?" 
 
 "I can't understand," was the reply, "the motive 
 which actuated England, Germany, France, the United 
 States and the Latin Union to stop coining silver. You 
 have stated, I believe, publicly, that when we demonetized 
 silver we destroyed one-half of our money of ultimate 
 redemption. Is that true?' ' 
 
70 SOUND MONEY. 
 
 "I have said so and repeat it," answered Coin, who 
 tried in vain to see what the wily editor was driving at. 
 
 "Then Germany and the rest of those nations did pre- 
 cisely the same thing, did they not?" 
 
 "They did." 
 
 "Can you conceive of such men as Bismarck, Wad- 
 dington, Gambetta, John Sherman and the other great 
 statesmen of that day taking a leap in the dark?" inquired 
 the editor. ' ' Do you think they were all bribed or all idiots , 
 and that you and your silver-crank, populistic and silver 
 mine owning friends are fitted to teach such men as those 
 statesmanship?" 
 
 "On this particular point, yes," said Coin boldly. 
 
 "You perhaps consider Jerry Simpson the equal of 
 Gambetta and Senator Peffertbepeerof Fuerst Bismarck ! 
 Well, opinions differ," and the editor began turning over 
 the pages of a small, cloth-covered book. 
 
 "There was a conspiracy of the gold bugs against sil- 
 ver," asserted Coin, "and that accounts for many things 
 you can't, because you won't, understand." 
 
 "It wouldn't be conducive to your health to insinuate 
 in the presence of a German or a Frenchman that either 
 Bismarck, Gambetta or Waddington had ever accepted a 
 bribe from the gold bugs, as you call them, to betray 
 their country by wiping out one-half of its money," 
 retorted Evans, impatient at the silly charge conveyed in 
 Coin's remark. "This little book," he resumed, "is the 
 report of the Monetary Commission of 1876, of which 
 Senator John P. Jones was chairman the favorite son of 
 Nevada, that magnificent state which, with a population 
 considerably smaller than an average ward in Chicago, is 
 still represented by two members in the United States 
 Senate. 
 
SOUND MONEY. 71 
 
 "At the time this report was written recent events 
 were too fresh in the minds of the people to make it safe 
 for any public man to be guilty of those 'improvements' 
 on facts and figures, dates and history, with which it is 
 now the custom of its advocates to bolster up the free sil- 
 ver propaganda. In this report will be found the true 
 reason why the nations demonetized silver. It must be 
 remembered that in the twenty years prior to 1870 the 
 production of silver had increased with wonderful rapidity. 
 Taking the figures from the report of the secretary of the 
 treasury for 1894, I find that in the period from 1851 to 
 1855 the world had produced 142,442,000 ounces of fine 
 silver. From 1856 to 1860 this output increased to 145,- 
 477,142; from 1861 to 1865 the production jumped up to 
 177,099,862, and from 1866 to 1870 it went to 215,257,- 
 914 an increase in the fourth 5-year period of 72,814,928 
 ounces. Nor was this all. New discoveries had been 
 made which were turning out silver by the ton, and the 
 world naturally became alarmed. Some people were even 
 afraid that silver would soon be as plentiful as copper. 
 In his report, Senator Jones, who was chairman of the 
 commission, remember, says this: 
 
 " 'It may be stated that in 1873 a new body of paying 
 ore was discovered in one of the mines of the Comstock 
 lode in Nevada. Similar bodies of nearly equal extent 
 had been previously discovered and exhausted in the 
 South American silver lodes and in the Comstock lode 
 without attracting universal attention or causing universal 
 fear that the commerce of the world was about to be deluged 
 with a flood of silver, but in the present instance, through 
 persistent and infectious exaggeration in respect to the 
 richness of the new ore body, the most visionary expecta- 
 tions and unwarranted fears became universally epidemic. ' 
 
72 SO UND MONE Y. 
 
 "Thus," repeated the editor, as he handed the report to 
 Commissioner Rafferty, ''the tremendous increase in the 
 output of silver from the United States attracted universal 
 attention and caused universal fear that the commerce of 
 the world was about to be deluged with a flood of silver! 
 That is the reason why the nations demonetized silver. 
 This is why silver had already, in 1873, begun to fall in 
 price!" 
 
 ' 'What gold bug is it that makes this statement?' ' asked 
 Rafferty, who had been somewhat inattentive. 
 
 ' 'The statement does not come from a gold bug, but is 
 an admission by John P. Jones, the free silver representa- 
 tive of Nevada in the United States Senate. The state- 
 ment that the demonetization of silver was secretly ac- 
 complished in this country is a falsehood! The matter 
 was debated at length in both branches of Congress; 
 among those who took part in the discussion being Senator 
 Stewart, the holder of the international championship 
 silver belt for speech-making under contract by the yard, 
 mile or league. ' ' 
 
 "Senator Jones says, in the very report you have 
 quoted, that the fears expressed by the world of an over- 
 production of silver were groundless," interrupted Coin. 
 
 "So he does," replied Editor Evans, "but with what 
 degree of candor? From 1871 to 1875 the production in- 
 creased from 215,257,914 ounces, in the previous five 
 years, to 316,585,069. From 1876 to 1880 it rose to 393,- 
 878,009, and from 1881 to 1885 to 460,019,722 ounces 
 an increase of over 100 per cent in 30 years!" 
 
 "Gold production also increased enormously in the 
 same period and more than kept pace," said Coin. "In 
 the period from 1841 to 1850 the output of gold was 
 17,605,018 ounces. In 1849 the great discoveries and 
 
SOUND MONEY. 73 
 
 development began, so that from 1851 to 1855 32,061,621 
 ounces was produced. From 1856 to 1860 the amount 
 was 32,431,312 ounces; from 1861 to 1865 it was 29,747,- 
 913; from 1866 to 1870 it was 31,350,430, and in the next 
 five years it dropped off to 27,955,068. From, 1876 to 
 1880 the amount was 27,715,550 ounces, and from 1881 
 to 1885, 23,973,773. ^From 1886 to 1890 it rose again to 
 27,298,095 ounces, and from 1891 to 1893 it was 21,002,- 
 265. From 1853 to 1893 this gives us the enormous total 
 or 253,526,027 ounces of gold produced by the world. 
 Now, sir," he concluded with a ring of triumph in his 
 voice, "I'd like you to explain to this audience where on 
 earth the over production of silver comes in in the face of 
 this avalanche of gold; and how it was that silver main- 
 tained the ratio so closely from 1851 to 1873 ' " 
 
 "There isn't any difficulty in doing that," replied Ev- 
 ans, calmly, ' 'provided one knows some of the rudiments 
 of political economy and has some knowledge of the his- 
 tory of the world's commerce during the last half century. 
 The output of silver for the period you have named, 1851- 
 1893, amounted to 2,846,982,718 ounces. Now, sir, I 
 will answer your question fully and completely: 
 
 "Nothing on earth, short of that enormous gold produc- 
 tion of two hundred and fifty-three and a half millions of 
 ounces, could have prevented the nearly three billions of 
 ounces of silver from being classed, in relation to gold, as 
 something a little more precious than pig lead! ' ' (Applause. ) 
 
 ' 'To make this statement apparent suppose that the 
 gold production had remained at the average of the pre- 
 vious fifty years, or 761,871 ounces per annum, and this 
 deluge of silver, 67,785,302 ounces per annum, had flood- 
 ed the world ! What must have been the inevitable re- 
 sult ? Either the appreciation of gold or the cheapening 
 
74 SO UND MONE Y. 
 
 of silver, whichever way you choose to put it, to an un- 
 heard-of ratio." 
 
 The audience cheered lustily, for if there is any one 
 thing in this discussion which the free coinage people 
 have juggled with more than another it is this matter of 
 ratio and production. Coin looked right poorly when 
 the editor got through, but managed to say: 
 
 "I thought you told us yesterday that the supply did 
 not matter so long as there was a demand ? ' ' 
 
 "So I did," returned the editor, "but where the na- 
 tion would the demand come from under such circum- 
 stances as those ? Who would take silver at any price ? 
 Even the savages of the dark continent would refuse to 
 wear it as rings in their noses on the ground that it was 
 too cheap." 
 
 "How do you account for the fact that, according to 
 Mulhall, in 1848 there were 31 tons of silver to i ton of 
 gold in the world; in 1880 only 18 tons of silver to i ton 
 of gold, and in 1890 the same proportion ? " asked Coin 
 with rather more spirit. 
 
 ' 'What has that got to do with my proposition? You 
 talk of 31 tons to i, but the case I'm supposing had it 
 not been for the increase of gold, would have been 88.95 
 of silver to i of gold and a continuous production at this 
 ratio for 42 years! I don't know but what people might 
 be justified in following Mr. Ewing's suggestion and rais- 
 ing a howl for the free coinage of copper under those cir- 
 cumstances. Now, will you be quiet?' ' and the good nat- 
 ured editor laughed heartily. 
 
 "No, I'll not," replied Coin doggedly and with em- 
 phasis. "I know I'm right even though you seem to 
 have picked out more telling statistics than mine. Mul- 
 hall gives the table of the tons of silver in proportion to 
 
SOUND MONEY. 75 
 
 gold, from which I have just quoted. It shows that in 
 1600-20 there were 27.7 tons to i, that the ratio stood at 
 1 2. i to i and that silver was worth $1.54 per ounce. A 
 hundred years later the proportion was 34. 3 tons of silver 
 to i of gold, the commercial ratio was 15.1 and the price 
 $1.24. In 1800-20 there were 32.2 tons of silver to i of 
 gold, the ratio was 15.3 and the price $1.22. In 1821-40 
 the proportion was 33.1, ratio 15.6 and price $1.20. In 
 1841-60 the proportion was 31, the ratio unchanged at 
 15.6 and the price $1.20. In 1861-70 it had fallen to 
 22.6 yet the ratio did not change. It was 15.6, and the 
 price was also the same. In 1871-80 the proportion had 
 dropped to 18.6 and the ratio advanced over a point while 
 the price was $1.12. Those facts can not be explained 
 on any other hypothesis than that the mints of the world 
 were open to silver and it was freely coined. That is 
 what held the parity between the two metals for nearly 
 300 years. ' ' 
 
 ''Your hypothesis does not hold water when the 
 searchlight of facts is applied to it," said Editor Evans. 
 "Moreover, those facts would not be appreciated by one 
 man in a thousand even though he had the statistics 
 spread in front of him unless he had some knowledge of 
 the commercial history of the world and the facts concern- 
 ing trade development with oriental countries. 
 
 "In the first place, from the year 1600 to 1700 the in- 
 flexible law of supply and demand, in spite of a con- 
 stantly increasing production of silver and gold, brought 
 the value of the white metal from a commercial ratio of 
 1 2. i to 15.1 and the price from $1.54 to $1.24, which, in 
 view of the world's stock, 27.1 of silver to i of gold in 
 1600 to 32.2 to i in 1700, was still altogether out of pro- 
 portion. Moreover, in the same period the gold had only 
 
76 
 
 SOUND MONEY. 
 
 increased from 830 tons to 1310 tons, or 63 per cent, 
 while silver had increased from 23,000 to 45,000 tons, or 
 almost 100 per cent." 
 
 "Much obliged," remarked Coin sarcastically, "you 
 have saved me the trouble of contrasting those figures to 
 show that free coinage kept the metals at a parity in 
 spite" of their divergence in production and supply. That 
 is the argument we defy you to answer. ' ' 
 
 "If I answer it completely will you abandon your side 
 of the controversy and agree to support sund money?' 
 asked Evans, by way of reply. 
 
 "Oh you couldn't convince me," answered Coin 
 quickly. 
 
 "No because your interests lie with the bonanza sil- 
 ver kings; but I will certainly convince any man who is 
 open to conviction," declared the editor, who had on his 
 fighting clothes. 
 
 "The absurdity of your contention is shown when we 
 look at the total stocks of gold and silver at the two 
 periods in question," he resumed, unrolling a chart on 
 which the following table was displayed: 
 
 TABLE SHOWING THE TOTAL STOCK OF GOLD AND SILVER IN THE WORLD AT 
 THE PERIODS NAMED. MULHALL. 
 
 
 
 GOLD. 
 
 
 
 SILVER. 
 
 
 YEAR. 
 
 Coined ($). 
 
 Uncoined ($). 
 
 Per 
 
 cent of 
 coin. 
 
 Coined ($). 
 
 Uncoined ($). 
 
 Per 
 
 cent of 
 coin. 
 
 1600 
 
 1700 
 1800 
 1848 
 1880 
 1890 
 
 141,520,000 
 366,000,000 
 614,880,000 
 766,160,000 
 3,586,800,000 
 3,855,200,000 
 
 424,560,000 
 527,040,000 
 1,249,280,000 
 1,673,840,000 
 1,742,160,000 
 2,171,600.000 
 
 25 
 
 41 
 33 
 32 
 
 67 
 64 
 
 497,760,000 
 1,098,000,000 
 1,756,800,000 
 1,893,440,000 
 2,713,280,000 
 3,132,960,000 
 
 849,120,000 
 1,098,000,000 
 1,952,000,000 
 2,830,400,000 
 2,605,920,000 
 2,786,480,000 
 
 37 
 
 50 
 48 
 40 
 51 
 53 
 
 "Pay attention to the proportion of each in use as coin. 
 The entire stock of gold in 1600 was $566,080,000; of this 
 $424,560,000 was uncoined and $141,520,000 coined or 25 
 
SOUND MONEY. 11 
 
 per cent. At the same period the total stock of silver was 
 $1,346,880,000, of which $849,120,000 was uncoined and 
 only $497, 760,000 coined, or 37 per cent. In 1700 the 
 total stock of gold was $893,040,000, of which $527,040,- 
 ooo was uncoined and $366,000,000 coined, or 41 per 
 cent. At the same period the total stock of silver was 
 $2,196,000,000, of which $1,098,000,000 was uncoined 
 and $1,098,000,000 coined, or only 50 per cent. Now, 
 it must be remembered that while 45 per cent of all the 
 gold produced is consumed in the arts and manufactures, 
 only 27 per cent of the silver is thus disposed of. There- 
 fore, the fact that the gold coinage of the world increased 
 in 100 years from 25 per cent to 41 per cent of the total 
 product, while silver coinage only increased from 37 per 
 cent, to 50 per cent, gives a particularly black eye to your 
 two favorite contentions : That the parity of the metals 
 was maintained by the coinage demand and that silver is 
 the favorite money of the people. ' ' 
 
 Applause greeted this irresistible logic of facts, which 
 completely disposed of Coin's logic of fiction. The poor 
 little man found himself in a mental bog, so to speak, and 
 at once began to flounder. 
 
 "That was an extraordinary period," he ventured. 
 "It does not give a true idea of the facts.' 
 
 "Then we'll take the next period, 1800," said the 
 editor. "Of gold there was a total of $1,864,160,000, of 
 which 33 per cent was coined! Of silver there was 
 $3,708,800,000, of which only 48 per cent was coined. 
 You observe that the production of both metals had enorm- 
 ously increased, gold over 100 per cent, and silver over 43 
 per cent. In the next period, for which we have the fig- 
 ures, 1848, silver again increased 27 per cent. It in- 
 creased $1,015,040,000 while gold increased $575,840,000, 
 
78 SOUND MONEY. 
 
 or over 32 per cent. There was 32 per cent of the gold 
 in the world coined, however, and only 40 per cent of the 
 silver. ' ' 
 
 "How do you make that out?" interrupted Coin. "In 
 the appendix to my book I show by reprinting a table of 
 the production of gold and silver, from the report of the 
 Bureau of the Mint, that from 1792 to 1892 the total 
 production of gold was $5,633,908,000, and of silver 
 $5,104,961,000. Prior to 1850 the production of silver 
 was 78 per cent over that of gold, yet through the free 
 coinage of the two metals, and that alone, the commercial 
 ratio was steadily maintained." 
 
 "That alleged table," replied the editor, with deliber- 
 ate emphasis, ' 'is one of the most impudent forgeries ever 
 foisted upon an unsuspecting public. I have here a 
 copy of it from 1801, the first year for which the figures 
 are given by the Director of the Mint in five or ten 
 year periods. I have also that official's own figures, 
 as given on pages 304 and 305 of the Treasury Report 
 for 1894, placed side by side with yours, and I display 
 them that the whole world may know you, sir, for the 
 falsifier and forger that you are. ' ' 
 
 As he spoke these words the editor unrolled a large 
 calico banner upon which the table on the next page was 
 painted. 
 
 ' 'The figures Coin has falsified," "he went on, "are 
 made more prominent so that you may all pick them 
 out for yourselves. Notice the cunning he has displayed. 
 The first three lines of each column contain correct quo- 
 tations so that any person verifiying his figures by the 
 official document would become satisfied that they are 
 correct. Then he begins to forge and from i8or to 1840 
 lie swells the amount of silver and from f8fo to 1890 dimin- 
 
SOUND MONEY. 
 
 ishes it for the deliberate purpose of strengthening the 
 argument he has just made. Read the figures for your- 
 selves and say what you think of a cause which requires 
 such forgery and falsehood to sustain it ! " 
 
 COIN'S FORGERY. 
 WORLD'S PRODUCTION OF GOLD AND SILVER. 
 
 
 COIN'S FIGURES. 
 
 TREASURY FIGURES. 
 
 Period 
 
 Gold. 
 
 Silver. 
 
 Gold. 
 
 Silver. 
 
 1801-10 
 
 $ 118,152,000 
 
 $ 371,677,000 
 
 $ 118,152,000 
 
 $ 371,677,000 
 
 1811-20 
 
 76,063,000 
 
 224,786,000 
 
 76,063,000 
 
 224,786,000 
 
 1821-30 
 
 94,479,000 
 
 191,444,000 
 
 94,479,OUO 
 
 191,444,000 
 
 1831-40 
 
 134,841,000 
 
 274,930,000 
 
 134,841,000 
 
 247,930,000 
 
 1811-50 
 
 362,694,000 
 
 337,520.000 
 
 363,928,000 
 
 324,400,000 
 
 1851-56 
 
 618,325.000 
 
 202,400,000 
 
 662,566,000 
 
 181,169,000 
 
 1856-60 
 
 649,625,000 
 
 203,500,000 
 
 670,415,000 
 
 188,092,000 
 
 1861-65 
 
 555,700,000 
 
 242,750,000 
 
 614,944,000 
 
 228,861,000 
 
 1866-70 
 
 547,925,000 
 
 254,275,000 
 
 648,071,000 
 
 278,313,000 
 
 1871-75 
 
 491,050,000 
 
 360,100,000 
 
 577,^83,000 
 
 409,322,000 
 
 1876-80 
 
 552,200,000 
 
 456,300,000 
 
 572,931,000 
 
 509,256,000 
 
 1881-85 
 1886 
 
 510.500,000 
 
 106,000,000 
 
 553,100,000 
 
 120,600,000 
 
 495,582,000 
 106,000,000 
 
 594,773,000 
 120,600,000 
 
 1887 
 
 105,775,000 
 
 124,281 ,000 
 
 105,775,000 
 
 124,281.000 
 
 1888 
 
 110,197,000 
 
 140,706,000 
 
 110,197,000 
 
 140,706,000 
 
 1889 
 
 123,489,000 
 
 162,159,000 
 
 123,489.000 
 
 155,428,000 
 
 1890 
 
 113,150,000 
 
 172,235,000 
 
 118,849,000 
 
 163,032,000 
 
 1891 
 
 120,519,000 
 
 186,733,000 
 
 130,650,000 
 
 177,352,000 
 
 1892 
 
 130,817 000 
 
 196,605,000 
 
 146,298,000 
 
 197,741,000 
 
 Totals 
 
 5,521,501,000 
 
 4,776,401,000 
 
 5,871,083,000 
 
 4,832,163,000 
 
 The figures falsified by Coin in bold type. 
 
 For a few seconds after the editor ceased speaking 
 the audience remained in a hush as each man scanned the 
 shameful record and grasped the full meaning of the ter- 
 rible exposure. Then a howl of rage and execration 
 arose from a thousand throats rage that they had been 
 duped into accepting arguments based on falsification and 
 fraud, and execration for the man responsible. They 
 hissed, whistled and shouted opprobrious epithets until 
 they were thoroughly tired out; Coin standing the while 
 with a sneer on his lips and rage in his heart. When 
 quiet had been once more restored the editor continued: 
 
80 SOUND MONEY. 
 
 "Coin argues that there was an enormous production 
 of silver over gold and that it was free coinage which 
 maintained the equilibrium and prevented a fall in the 
 price of the white metal. The total coinage of bullion 
 from 1801 to 1850, exclusive of recoinage, of which we 
 had ourselves nearly $100,000,000, by all the nations of 
 Europe, Australia and America amounted, according to 
 Mulhall, to just $136,262,000! 
 
 "How could this trifling amount, less than 25 per cent 
 of the production, to say nothing of the world's stock of 
 silver on hand in 1800 of $3,708,800,000, have any effect 
 whatever in maintaining the commercial ratio ? A coin- 
 age of 136 millions out of a total production of over 5,000 
 millions would have about as much effect as Mrs. Parting- 
 ton had with her broom when she tried to sweep back the 
 waves of the Atlantic ocean." 
 
 A storm of applause mingled with laughter showed 
 that the audience appreciated both the complete answer 
 and the absurd comparison. 
 
 1 'The next period is that of the enormous gold pro- 
 duction, 1848 to 1880" continued the editor. "In the 
 latter year there was $5,328,960,000 of gold and $5,319,- 
 200,000 of silver more gold than silver. Of the gold 67 
 per cent was in coin, and of the 'money of the people/ 
 only 51 per cent. Now, then, what accounts for the hold- 
 ing up of silver during that long period, part of which 
 time silver production had been greatly in excess over 
 that of gold, and another part when gold production had 
 greatly exceeded that of silver? 
 
 "Mainly the enormous demand during the period up 
 to 1870 for silver from Asia. The Eighteenth century 
 was a period of wonderful development of trade with 
 Jndia, Japan and China, countries in which silver Is use4 
 
 
SOUND MONEY. 
 
 to the exclusion of gold to this day. That's where the 
 demand for silver came from, and as soon as those countries 
 had absorbed the white metal to saturation, the demand 
 dropped off, and the price of silver fell. That occurred in 
 1871-80. The Orientals have not been able to absorb all 
 the excessive silver production of the last twenty-five 
 years, but they have struggled bravely with it, and, assisted 
 by the enormously increased production of gold, which 
 thus lost some of its value compared with silver, the price 
 of the white metal, while gradually dropping, did not go 
 down with a rush until they were unable to absorb the 
 increase. 
 
 ' 'Untold millions and billions of the world's production 
 of silver have been swallowed up by the Asiatic nations 
 so completely that there is no record by which even the 
 most enthusiastic statistician can follow it. But prior to 
 1850 most of the imports from India and Asia were paid 
 for in silver bullion and not in manufactures. In 1850 
 England alone imported over 50 millions of pounds of tea, 
 to say nothing of vast quantities of silks, spices, manu- 
 factures of ivory, porcelain, gold and other commodities. 
 
 ' 'When the large production of gold commenced West- 
 ern nations recruited their coinage with the more desir- 
 able money metal and sent the cheaper silver to the Orient. 
 This was done, moreover, at considerable profit, as in 
 1810 the ratio in China was only 10 to i, while in Lon- 
 don it was 15.77 to i. I n l8 54 the Chinese ratio was 14 
 to i and in London it was 15.33 to i. Hence, the East 
 was made, from time immemorial, a profitable dumping 
 ground for the stocks of silver accumulated by Western 
 nations and by that fact did more than all the free coinage 
 of Europe and America combined to maintain a parity 
 between the two metals. 
 
82 SOUND MONEY. 
 
 1 'This statement is strongly confirmed by Mulhall, who 
 agrees with Soetbeer, Jacob and other statisticians, that 
 from 1801 to 1880 the stock of silver coin and bullion 
 in the western world only increased $1,610,040,000, 
 while the world's production was $3,158,250,000. In 
 the same period the stock of gold coin and bullion 
 increased $3, 4.6 4., 800,000, while the production was only 
 fy,534, 2 73> 00 , and it must not be forgotten that while 
 45 P er cen t f a M the gold produced is used in arts 
 and manufactures, only 27 per cent of the silver is so 
 disposed of. 
 
 This irrefutable demonstration of the absolute truth 
 of the argument advanced was the signal for enthusiastic 
 cheers and applause which Coin tolerated, because he had 
 to, with an air of despairing resignation. 
 
 "I wish to call your attention to another fact," Mr. 
 Evans resumed. "The mints of India, since 1893, have 
 been closed to the free coinage of silver, so ask yourselves 
 the question whether the British rulers of that country 
 found free coinage teeming with the blessings that our 
 friend, Coin, would have us believe in. If so, why did 
 they put up the bars against the white metal? Why 
 didn't they go on coining it and reaping the gorgeous 
 good times cheap money is sure to bring according to 
 our friends, the free silverites? 
 
 "To close this branch of my argument I will remind 
 you of just one more point. In 1700 there were 34.3 tons 
 of silver in the world to i of gold, and the white metal 
 was worth $1.24 per ounce. In 1870, before there was 
 any demonetization, except that of England which Coin 
 says and I have shown was immaterial, there were only 
 22.6 tons of silver to i of gold; yet the ratio had risen ^ 
 and the price had fallen to $1,20, The decadence of sil- 
 
SOUND MONEY. 
 
 ver had begun. By 1893 the ratio was 21.26 tons of sil- 
 ver to i of gold, the commercial ratio had risen to 26.49, 
 and the price had dropped to 78 cents! 
 
 "Why? Not because of demonetization. That had 
 some effect, of course. How much, may be judged 
 by the fact that our coinage of 4,500,000 ounces a month, 
 54,000,000 ounces a year, or 2, 250 tons, swamped us. We 
 couldn't assimilate it or circulate it; and after a temporary 
 rise to $1.04 in 1890, on account of that coinage, the price 
 vslipped back to 98 cents in 1891; to 87 cents, lower than 
 ever before, in the following year, and it only averaged 78 
 cents in 1893, although the Sherman act was still in opera- 
 tion till November i. 
 
 ' 'The reason is simple. The world' s production for 1 893 
 was 1 6 1 ,776,000 ounces. Our 54,000,000 ounces a year for 
 coinage more than we knew what to do with, was only a 
 drop in the bucket, and hence came the drop in the market. ' ' 
 
 With this the editor resumed his seat amid cheers, and 
 Coin again took the rostrum. 
 
 <( I have here a diagram," he began, "which illustrates 
 my theory of unlimited coinage of both metals on a parity, ' ' 
 and he unrolled a cartoon representing two hands, each 
 drawing a cord through a hole in a beam of wood, with 
 blocks on the ends of the cords. The hands represented 
 the power of unlimited demand, he said, and the beam 
 the price at which the demand would stop. The two little 
 blocks on the ends of the cords were drawn close against 
 the beam and he said they represented silver and gold: 
 "If the hand holding the silver cord should relax its pull 
 the block representing silver would fall down. By demon- 
 etization in 1873 the unlimited demand for one metal, 
 silver, was taken away and the unlimited demand for the 
 other metal, gold, was continued." 
 
84 SOUND MONEY. 
 
 ''That is all nonsense," said Commissioner Hobbs. 
 "Anybody can see that if you are going to make 50 cent 
 silver compete with 100 cent gold there will be an unlim- 
 ited supply of 50 cent silver, with no demand, and an 
 unlimited demand for 100 cent gold, but no supply. This 
 is the way it would be." The carpenter took a big, 
 flat pencil from his pocket, and made a vast improve- 
 ment on the cartoon, with the result shown in the 
 picture. 
 
 This convincing illustration was cheered the moment 
 the audience saw it. They had digested the facts, as 
 given by Mr. Evans, and saw the strict application to 
 them of Hobb's illustration. Coin bit his lip with annoy- 
 ance, but saw that it was useless to attempt to refute the 
 plain figures. 
 
 ' 'Using the official figures as given by Mr. Mulhall, ' ' he 
 continued, "and estimating from them, the proportion in 
 1872 was 19 tons of silver to i of gold." 
 
 "It was exactly 21.32 to i, not 'estimated' from Mul- 
 hall 's figures, but figured from the statistics of the treas- 
 ury report," interrupted the editor. "It did not reach 19 
 to i until 1883." 
 
 ' 'So much the better. Thanks, ' ' said Coin, ' 'it suits 
 my argument." 
 
 "Then it's a wonder you didn't estimate it at 6 or 7 
 tons while you were at it," commented Mr. Evans. 
 
 Without further exchange of pleasantries Coin con- 
 tinued: "I was just about to show that the production 
 of silver had become materially less, compared with gold , 
 and yet through all these years from 1848 to 1872 there 
 was no difference in the commercial ratio that would not 
 be accounted for by the French ratio disturbance and the 
 cost of exchanging the two metals." 
 
 
TD MONEY. 
 
 ''Young sir," suggested Editor Evans, "you might 
 do well to have a guardian appointed. The causes you 
 mention would have about as much effect on the commer- 
 cial ratio of silver as a mosquito would have in trying to 
 kick a football. The total silver coined in France, in- 
 cluding re-coinage, for 40 years, 1850 to 1890, was $224,- 
 352,000. Her total net imports of silver, 1861 to 1870, 
 were $67,200,000; while her net imports of gold during 
 the same period were $336,000,000, India, alone, during 
 the same period, to say nothing of the other Oriental 
 countries, imported, net, $48 5, 000,000 of silver during the 
 same decade. The demand in the East maintained the 
 parity until 1871, when gold production fell off from 12.7 
 of the total of gold and silver to 8. i per cent and the latter 
 metal advanced from 87. 3 to 91.9 . The Oriental demand 
 is the true reason." 
 
 ' 'The true reason is that gold and silver were freely 
 coined and the demand for each was therefore unlimited, ' ' 
 persisted Coin. "Had specie payments been in operation 
 in 1873 silver would never have been demonetized. 
 Nearly every one would have been alive to the interest of 
 our silver money, and it would have been daily asserting 
 its own importance as in 1850-54. 
 
 "To show you how perfectly the law of free coinage 
 worked from time immemorial till 1873, ln sustaining the 
 commercial value of silver and gold at a parity, I refer you 
 to the ratio table in the Treasury report for 1894, P a ge 
 288. You will see from this table that from 1687 to 1873 
 the commercial ratio of the two metals was never lower 
 than i 4o 14-14 and never higher than i to 16.25, a varia- 
 tion of only about two points. ' ' 
 
 "Only about two points ! " ejaculated the editor, "on- 
 ly enough to send gold to a premium of 15 per cent!" 
 
5300 
 TONS 
 
 UNCOINED 
 CrOU). 
 
15 TO 1 
 
 (THEORETICALLY.) 
 
 THEORETICAL 
 FREE COINAGE. 
 
 s (ToiN SAVES IT WOULD, AND AS 
 
 CONGRESS IN 1792 BELIEVED IT 
 MUST BE. 
 
 15 TO I 
 
 ("THEORETICALLY ) 
 
 PRACTICAL 
 FREE COINAOt. 
 
 WHAT EXPERIENCE DEMONSTRATED 
 IN 1834. 
 
 16 TO 1 
 
 ( THEORETICALLY. ) 
 
 PRACTICAL 
 
 FREE COINAGE 
 
 What experience demon 
 strated in 1853. 
 
 16 TO I 
 
 ( THEORETICALLY. ) 
 
 86M878-Bofh taps sfepH "pwith paper during 
 wh/cH John Sherman comitted thaf hornb/e 
 crime* while nobody waslooKi'np. 
 
86 SO UND MONE Y. 
 
 & 
 
 "Oh, that's nothing," said Col. Forrest, the able 
 financial and economical writer of the Daily News, who 
 sat next to his friend, Kvans. "When it comes to defin- 
 ing what the parity between the two metals should neces- 
 sarily be Coin talks as airily as Wilkins Micawber did 
 about signing promissory notes. He talks of two points 
 variation in the parity as a mere trifle not worthy of our 
 notice. The legal ratio between the two metals was fixed 
 by Congress at 15 to i, in 1792, which was then the com- 
 mercial ratio. And yet in 1834 gold had gone complete- 
 ly out of circulation. It was selling in brokers' offices in 
 New York and Philadelphia at 4 to 4^ per cent premi- 
 um and we were on a silver basis. The market ratio was 
 15.62 in New York and in Hamburg 15.73. ^ ut tn * s 
 was only ^ of a point while, as you say, two points 
 would have put gold up to 15 per cent premium. 
 One-tenth of one per cent is sufficient to send either 
 one of the metals to foreign countries or the melting pot. ' ' 
 
 "To show you, Mr. Coin, how absolutely false your 
 statements are," said J. Lawrence L,aughlin, professor of 
 political economy at the University of Chicago, "or else 
 how little you understand the subject you assume to teach, 
 I want to emphasize the point made by my friend, Col. 
 Forrest, that free coinage was found in practice a com- 
 plete and utter failure as early as 1834. At that time we 
 were already on a monometallic silver basis, and gold had 
 been driven completely out of circulation. In order to 
 induce the return of gold Congress committed the 'crime,' 
 as you should call it, to be consistent, of increasing the 
 legal ratio to 16 to i. 
 
 ' 'Then what happened? 
 
 ' 'The legal ratio being slightly in excess of commercial 
 ratio, silver in its turn disappeared and gold took its place. 
 
SOUND MONEY. 
 
 In an incredibly short time we were on a gold basis as ab- 
 solute as if the law of 1834 had explicitly stated this to be 
 its intention. In the form of coin an ounce of gold would 
 exchange, in 1840, for instance, for 15.62 ounces of sil- 
 ver, that being the market ratio. Gold was, therefore, 
 worth more as coin than as bullion, and it rushed to the 
 mint. On the other hand, 15.62 ounces of silver bullion 
 would buy one ounce of gold bullion, while it took 16 
 ounces of silver in coin to buy one ounce of gold in coin. 
 Silver was worth more as bullion than as coin, hence it 
 rushed to the melting pot to be changed to bullion. 
 
 "By reason of the increased gold production in Russia, 
 and later in California, the commercial ratio was kept less 
 than i to 1 6 for along time, and this explains why silver 
 disappeared wholly from circulation. 
 
 ' 'You have stated that had specie payments been in 
 operation in 1873 silver would never have been demone- 
 tized, and that nearly everyone would have been alive to 
 the interest of our silver money, which would daily have 
 asserted its importance, as in 1850-1854. 
 
 ' 'What is the truth? 
 
 "Before 1850 our silver dollars had been melted into 
 bullion, and so completely had even our subsidiary coinage, 
 small change, disappeared, that all possible shifts were 
 resorted to to make change. Shillings, bits, levys, etc. , 
 were taken up. This became so intolerable that in 1853 
 the question of the coinage was thoroughly discussed. It 
 was realized that the ratio of 15 to i from 1792 to 1834 
 had resulted only in a silver currency, and that the ratio 
 of 1 6 to i since 1834 had resulted only in a gold cur- 
 rency. 
 
 "As a result the act of 1853 was passed, which was 
 the practical abandonment of the impracticable attempt to 
 
88 SO UND MONE Y. 
 
 keep both gold and silver coins in circulation by trying 
 another change of the ratio. They let the silver dollar 
 alone. It was then completely out of circulation. The 
 market ratio in 1853 being 15.4 to i, a gold dollar would 
 only buy 15.4 times 23.2 grains of silver in the 
 market, or 357 ^ grains. This was 14 grains less than 
 the legal silver dollar. In other words, a silver dollar 
 was at a premium of 4 per cent over gold in 1853. So 
 they then and there gave up trying to keep the silver 
 dollar in use. They had the gold standard and gold in 
 abundance and were satisfied. Mr. Dunham, who had 
 charge of the bill, said: 
 
 " 'Another objection urged against this proposed 
 change is that it gives us a standard of gold only. Gen- 
 tlemen talk about a double standard of gold and silver as 
 a thing that exists, and that we propose to change. We 
 have had but a single standard for the last three or four 
 years. There has been, and now is, gold. We propose to 
 let it remain so, and to adapt silver to it, and regulate it 
 by it: 
 
 ' 'This, then, was the thing usually supposed to have 
 been done in 1873. The real demonetization of silver dol- 
 lars took place in 1853, twenty years before the nominal 
 demonetization of 1873. As I have said elsewhere, the 
 act of 1853 tried and condemned the criminal, and after 
 twenty years of waiting for a reprieve, the execution only 
 took place in 1873. 
 
 "The use of silver was practically abandoned in 1853, 
 and a subsidiary currency of 345.6 grains to the dollar's 
 worth was enacted. This was token money, and there 
 would not be any reason for melting it, as it would take 
 357 Y^ grains of it to buy a gold dollar. Moreover, as if 
 to emphasize the deliberate intention of Congress to de- 
 
SOUND MONEY 89 
 
 monetize the white metal, its legal tender capacity was 
 limited to five dollars." 
 
 This lucid statement of the facts which so completely 
 demolished two more of Coin's pet delusions the ( 'horri- 
 ble crime of 1873," and the continuous use of a bimetallic 
 standard on even terms from 1792 to 1873, was received 
 by the audience with a storm of cheering in which some 
 penetrating hisses, either intended by the intelligent por- 
 tion for the discredited and discomfitted Coin; or by the 
 enraged silverites for the witness who had pulled back 
 the veil of misstatement and shown in the clear light of 
 day the facts of history. 
 
 Coin, himself, looked ghastly. Commissioner Raf- 
 ferty's face was a study. The life had been completely 
 knocked out of the silver argument and he was almost 
 ready to surrender. As for Chairman Clench, he looked 
 convinced ; but with the honest caution which character- 
 ized him, he asked: 
 
 "Have you that act of Congress with you, Professor?" 
 
 "I have not, sir. But I am perfectly familiar with 
 its provisions and was quite safe in quoting from 
 memory." 
 
 "I'm sorry you might have made a mistake. I am 
 free to say that if that law sustains your argument I only 
 need to be convinced on two other points the effect of 
 free coinage on wages and prices. ' ' 
 
 "I have here a copy of the law of 1853, as issued by 
 the Treasury Department," said Mr. A. T. Ewing, who 
 had been a deeply interested listener in company with a 
 large delegation from the Honest Money League. "It is 
 very short and I will read it if you choose," he concluded. 
 Mr. Ewing, whose telling demolition of the silver unit 
 falsehood was evidently well remembered, was received 
 
90 SOUND MONEY. 
 
 with warm applause and, on the chairman's invitation, he 
 read this act of Congress. 
 
 "Be it enacted by the Senate and House of Representatives of 
 the United States of America, in Congress assembled: 
 
 "That from and after the first day of June, eighteen hundred 
 and fifty -two [three] the weight of the half dollar or piece of fifty 
 cents shall be one hundred and ninety-two grains, and the quarter 
 dollar, dime, and half dime, shall be, respectively, one-half, one- 
 fifth and one-tenth of the weight of the said half dollar. 
 
 " 'Sec. 2. And be it further enacted, That the silver coins, 
 issued in conformity with the above section, shall be legal tenders 
 in payment of debts for all sums not exceeding five dollars.' " 
 
 Chairman Clench smote the table excitedly as the lawyer 
 ceased reading and the vast majority of the audience, who 
 were by this time convinced that 50 cents worth of silver 
 could only pass current for 100 cents when backed up by i oo 
 cents worth of gold in the national treasury, and exchange- 
 able for it, concluded while they applauded, that there 
 were by this time two advocates of sound money out of the 
 three men who composed Labor's Commission on Coinage. 
 
 At this point there was a commotion in the rear end of 
 the hall. A small boy was trying to fight his way through 
 the densely packed crowd and was stopped by one of 
 Mayor Swift's large, blue-coated policemen. The boy 
 carried a package and insisted that he had business there 
 he wanted to see Mr. Evans. 
 
 ' 'Let him come through, please," requested the editor. 
 "He's my messenger. " So the throng parted and the 
 grimy faced little printer's devil at length succeeded in 
 reaching the platform. 
 
 "I have been waiting for this package," said the 
 editor, as he untied the string. "It contains a table I 
 have had printed for the use of this commission and gives 
 the complete history of the production and value of the 
 
SOUND MONEY. 
 
 91 
 
 precious metals from 1851 to 1893. When this table is 
 studied and it is borne in mind that the decline of the 
 oriental demand began in 1870, any person with aver- 
 age sense can understand why silver has so steadily 
 declined in price since 1870, when it was $1.32 per ounce, 
 with an average production for the previous five years of 
 261.25 tons, until 1893 with its mammoth production of 
 6,740.66 tons when it sold for the average price of 78 
 cents, only to sink to 63 cents in 1894. 
 
 WORLD'S PRODUCTION OF GOLD AND SILVER FROM 1851 
 TO 1893. BASED ON TREASURY REPORT 1894. 
 
 GOLD. 
 
 SILVER. 
 
 
 
 Value. 
 
 ^ 
 
 
 Value. 
 
 *'*J 
 
 
 
 V 
 
 n 
 
 in 
 
 o 
 
 Dollars. 
 
 *~ G 
 
 
 
 Dollars. 
 
 f|j 
 
 u 
 
 2o 
 
 bo 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 5 IS 
 
 5? 
 
 Sp, 
 
 1851-55 
 
 1,325.067 
 
 662,566,000 
 
 18.5 
 
 5,935.174 
 
 184,169,000 
 
 81.6 
 
 15.41 j 4.47:1 
 
 1.34 
 
 56-60 
 
 1,351.30 
 
 670,415,000 
 
 18.2 
 
 6,061.54 
 
 188,092,000 
 
 81.8 
 
 15.30 4.48:1 
 
 .35 
 
 61-65 
 
 1.239.49 
 
 614,944,000 
 
 14.4 
 
 7,375.41 
 
 228,861,000 
 
 85.6 
 
 15.40 
 
 5.95:1 
 
 1.34 
 
 66-70 
 
 1,306.26 
 
 648,071,000 
 
 12.7 
 
 8,964.91 
 
 278,313,000 
 
 87.3 
 
 15.46 
 
 6.86:1 
 
 1.32 
 
 71-75 
 
 1,164.79 
 
 577,883,000 
 
 8.1 
 
 13,191.04 
 
 409,322,000 
 
 91.9 
 
 15.97i 11.32:1 
 
 .29 
 
 76-80 
 
 1,154.81 
 
 572,931 000 
 
 6.6 
 
 16,411.58 
 
 509,256,000 
 
 93.4 
 
 17.89 
 
 14.21:1 
 
 .15 
 
 81-85 
 
 998.90 
 
 495,582,000 
 
 5.0 
 
 19,167.48 
 
 594,773,090 
 
 95.0 
 
 18.59 
 
 19.18:1 
 
 .11 
 
 1886 
 
 213.65 
 
 106,000,000 
 
 5.2 
 
 3,886.50 
 
 120,600,000 
 
 94.8 
 
 20.78 
 
 18.28:1 
 
 .99 
 
 1887 
 
 213.20 
 
 105,775,000 
 
 5.0 
 
 4,005.16 
 
 124,281,000 
 
 95.0 
 
 21.13 18.31:1 
 
 .97 
 
 1888 
 
 222.11 
 
 110,197,000 
 
 4.6 
 
 4,534.45 
 
 140,706,000 
 
 95.4 
 
 21.99 1 20.41:1 
 
 .93 
 
 1889 
 
 248.90 
 
 123,489,000 
 
 4.7 
 
 5,003.91 | 155,428,000 
 
 95.3 
 
 22.10 
 
 20.10:1 
 
 .93 
 
 1890 
 
 239.55 
 
 118,849.000 
 
 4.3 
 
 5.253.54 ! 163,032.000 
 
 95.7 
 
 19.76 
 
 21.93:1 
 
 1.04 
 
 1891 
 
 263.34 
 
 130,650,000 
 
 4.4 
 
 5,715.45 
 
 177,352,000 
 
 95.6 
 
 30.92 1 21.70:1 
 
 .98 
 
 1892 
 
 294.88 
 
 146,298,000 
 
 4.4 
 
 6,372.50 
 
 197,741,000 
 
 95.6 
 
 23.72 21.61:1 
 
 .87 
 
 1893 
 
 316.91 
 
 157,228,000 
 
 4.5 
 
 6,740.66 
 
 209,165,000 
 
 95.5 
 
 26.49 
 
 21.26:1 
 
 .78 
 
 
 
 5,240,378,000 
 
 
 
 3,681,091,000 
 
 
 
 
 
 "Since 1793," continued Mr. Evans, ' 'we have coined 
 $1,711,880,288 of gold and $675,954,221 of silver. In 
 spite of silver being the money of the people we only 
 coined, in round numbers, 676 millions of that metal to 
 one billion, seven hundred and twelve millions of gold, or 
 one billion and thirty-six millions more of the rich man's 
 money, as Mr, Coin calls it, Of this we coined prior to 
 
92 SOUND MONEY. 
 
 1873 of gold $795,091,710 and of silver $142,365,150. 
 Of this, about $100,000,000 was re-coinage of foreign sil- 
 ver, as directed by the act of 1792, and extended by the 
 policy of the Treasury Department to the Spanish milled 
 dollars exempted by the act. Since that 'terrible crime' 
 of 1873, however, which Professor Laughlin has so com- 
 pletely run to earth, we only coined $916,788,578 of gold 
 to $538,760,665 of silver. Is it because this country has 
 been so poor and so unprosperous since 1873 that we have 
 made this wonderful advance, proportionately, in our coin- 
 age of the poor man's money? I opine that Mr. Coin will 
 scarcely dare to take that position before this audience!" 
 
 And Mr. Coin didn't! 
 
 ''You have several times stated, Mr. Coin," said Chair- 
 man Clench, "that the demonetization of silver has 
 wrought great mischief to this country. Will you please 
 give us your views on that point?" 
 
 ' 'With pleasure, ' ' said Coin, glad of a chance to escape 
 from the merciless exposure of his production and ratio 
 falacies. "Silver, by demonetization, has been deposed 
 from its proper place as a money metal, and we have lost 
 the service it should perform. The report of the Director 
 of the Mint shows that since 1850 the world produced 
 more gold than silver. ' ' 
 
 "Do you mean more in quantity or in value?" asked 
 Chairman Clench. 
 
 "Oh, in value," replied Coin. "I wouldn't for the 
 world attempt to mislead you. Gold predominated by 
 $1,559,287." 
 
 ' 'And by weight silver's production to that of gold was 
 in the proportion of 1 8 tons to i , " added Editor Evans. 
 
 "Before demonetization," resumed Coin without tak- 
 ing any further notice of the scoring he had received, for 
 
SOUND MONEY. 93 
 
 he had grown callous by this time, "both metals consti- 
 tuted the redemption money of the world. And as both 
 metals existed in about the same quantities, it gave us 
 twice as much money of redemption as gold alone will 
 now furnish us. There is in the world now, according to 
 the director of our mint, $3,727,018,869 in gold and 
 $3,820,571,346 in silver." 
 
 "Whereabouts do you find that statement?" inquired 
 Editor Evans. 
 
 "In the Treasury report for 1894," replied Coin, un- 
 blushingly. 
 
 "On what page?" insisted the editor. 
 
 "Oh, you'll find it there somewhere," said Coin, 
 shifting uneasily from one foot to the other. 
 
 "Not if you search for a thousand years," said Evans. 
 "What is more, there are not sufficient facts given in that 
 report to enable you or anybody else to make even the 
 wildest kind of a guess at the amounts of gold and silver 
 at present free in the world as bullion, coin, plate or 
 jewelry." 
 
 Coin did not reply. He couldn't he had been 
 caught again in a falsehood and he knew it. While he 
 was trying to brace himself for another flight of fancy, 
 R. W. Knott, the brilliant editor of the Louisville Post, 
 arose from his seat in the audience and said: 
 
 "L,et us put a pin in, right there, Mr. Chairman. 
 Coin has stated that the act of 1873 robbed us of one-half 
 of our money of ultimate redemption. His argument, 
 which is as old as this silver lunacy itself, is that there 
 isn't enough gold in the world for the demands of com- 
 merce without the aid of silver. ' ' 
 
 "Platform, platform!" shouted the crowd, and the 
 Kentuckian, after acceding to the request, continued: 
 
94 SOUND MONEY. 
 
 "At the close of 1892 there was $7,500,000,000 of 
 gold and silver money in circulation. The combined pro- 
 duction of gold and silver in 1873 was $178,000,000, of 
 which $81,000,000 was silver. In 1894 tne world's pro- 
 duction of gold, alone, is officially estimated at $182,000,- 
 ooo or more than the combined production of gold and 
 silver in 1873. With gold alone we are adding as much 
 money metal to the world's supply in 1894 as with both 
 metals in 1873; with the difference that the quality is 
 better because it does not fluctuate but is a fixed value 
 in every country under the sun, and the facilities for cir- 
 culating it are vastly improved." The audience grew 
 deeply interested, for this was a new view of the 
 matter. 
 
 "From 1792 to 1873," Col. Knott continued, "the 
 world produced two billion eight hundred and fifty mil- 
 lion, two hundred and forty-two thousand dollars in sil- 
 ver, and two billion, three hundred and eighty-two 
 million, eight hundred and ninety-seven thousand dollars 
 in gold. If all the silver produced since 1792 had been 
 wiped out in 1873, and no more had been discovered, the 
 production of gold would have made good the loss. 
 Eighty-three per cent has already been made good, and 
 our production of gold now equals that of gold and silver 
 combined in 1873." 
 
 Applause followed this statement, and even RafFerty 
 began to see daylight at last. 
 
 "Is it not a fact that all the silver was wiped out in 
 1873?" he asked. 
 
 "Every dollar of our silver then existing is to-day, if 
 existing, a legal tender for its face value," was the reply; 
 and there was not a man in the hall who had not fre- 
 quently received and paid out again old half dollars and 
 
SOUND MONEY. 05 
 
 quarters dated prior to 1860. They recognized the truth 
 of the statement. 
 
 "The United States, alone, has added $500, 000,000 to 
 the silver coinage since 1873," resumed the Colonel. 
 
 ''Have you seen Coin's illustration of all the gold in 
 the world in the form of a cube placed in the wheat pit 
 at the Board of Trade?" inquired Rafferty. 
 
 "I have," replied the Colonel. "It is much too small; 
 but if he had calculated it on the basis of the world's 
 gold in 1873 it would have been just about half the size 
 he makes it. On his own estimate, the cube of gold, 
 alone, in 1895 would be as potential as the cubes of gold 
 and silver together in 1873 in the good old palmy days 
 he seems to lament so much, before calamity came 
 upon us." 
 
 "Has the disproportion between the gold of the world 
 and the debts of the world any bearing on the question 
 of coinage as Coin declares it has?" asked Hobbs, who 
 was delighted with the day's testimony. 
 
 "Not the slightest," replied Col. Knott. "The debts 
 of the world are to be paid in the goods of the world, not 
 in gold. Gold is used to settle balances and for ultimate 
 redemption of currency notes. The debts are paid by the 
 crops of the future, by the cattle yet unborn, by iron and 
 coal and other minerals still in the earth. 
 
 "I have here," continued the witness, "a page from 
 Coin's book, in which he advances the absurd idea, based 
 on his own estimate, that because he figures out about 
 15^ tons of silver to one of gold in the world, though, 
 19.2 to i is the exact amount according to the most 
 reliable figures, therefore 15.5 to i is the proper commer- 
 cial ratio of the metals for money. This is absurd. It 
 would be absurd even were his weight ratio correct- He 
 
Of .SYVW/J MONEY. 
 
 mi^ht as well attempt to fix a ratio between wool and cot- 
 ton, between coal and wood, or between wheat and corn, 
 by weight. No intelligent man would be guilty of at- 
 tempting to fix the proper ratio between gold and silver 
 by weight. Formerly it was contended that the weight 
 of a man's brain was the measure of his intellectual 
 power; now it is admitted that it is the convolutions of 
 the brain, its quality and not its quantity, which deter- 
 mines a man's intellectual status. So it is with the pro- 
 ducts of a man's labor. There is no subtle relation 
 between gold and silver; no umbilical cord connects 
 them. Silver is not gold mixed with alloy to make 
 it heavier. It is a different metal, found under different 
 circumstances, produced by different methods, and requir- 
 ing different forms of labor. It is the labor expended, plus 
 the demand, which fixes the value of each metal in the 
 market, and that value is the only natural ratio, as Jeffer- 
 son asserted over a hundred years ago." 
 
 "By a simple illustration I can show that you are 
 wrong," declared Coin, who then drew a picture of two 
 cisterns, as shown in the illustration. "It is immaterial 
 what ratio is fixed," he continued, "in spite of all that 
 has been said here to-day. I still maintain that the par- 
 tial failures of my theory, which have been adduced by 
 the two editors and the theoretical gentleman from the 
 Chicago University, were due to extraordinary circum- 
 stances. Free coinage, or unlimited demand, fixed the 
 parity of gold and silver for 200 years with but two points 
 of variation in the ratio, and it will do it again as this 
 illustration shows. ' ' 
 
 While Coin was speaking Hobbs had again been busy 
 with his broad, flat pencil and now handed three sketches 
 of similar cisterns to his fellow commissioners, who in turn 
 
SOUND MONEY. 37 
 
 handed them to the other gentlemen on the platform. "I 
 could have drafted them better if I'd had a neat piece of 
 board to draw on," said Hobbs, apologetically, "for, you 
 see, that's what carpenters do most of their drafting on." 
 
 ' ' No apologies, ' ' said Professor Laughlin. ' 'The dia- 
 grams hit the nail squarely on the head and show the 
 sophistry of Mr. Coin's production with admirable clear- 
 ness." 
 
 "I would now like to ask Mr. Coin a question," said 
 Col. Forrest. "Did you not say, sir, in your book that 
 all the money should be at par, one kind of money just as 
 good as any other kind of money? Didn't you say that it 
 was impossible to maintain two kinds of redemption 
 money with one made from property having a commercial 
 value of only one-half, or any noticeable per cent less 
 than the other?" 
 
 'I did, sir, replied Coin, "and I said, further, that 
 when such is the case the lesser must lean on the greater, 
 and to all intents and purposes become credit money, 
 while the more valuable becomes the only money of 
 redemption. 
 
 "We have in the United States, in round figures, 
 $1,600,000,000 of all kinds of money. About one-third 
 of it is gold, one-third silver and one-third paper." 
 
 Will you ever tell the truth? interrupted Editor 
 Evans. "The Treasury report shows that our total 
 money, instead of $1,600,000,000 as you have stated, is 
 $2,421,461,747 50 per cent more. Why don't you 
 falsify so as not to be found out?" and with that he handed 
 the Treasury report open at page 438 to Commissioner 
 Rafferty, who glanced at the figures and looked disgusted. 
 
 "Of that amount $1,169,390,080 is paper not $520, - 
 000,000 as you have stated." 
 
98 SO UND MONE Y. 
 
 "I said in round numbers," objected Coin. 
 
 "Heaven help the numbers when you're round!" 
 retorted the editor. "This business of falsifying to the 
 extent of over 50 per cent for the pupose of making 
 people believe that we need expansion of the currency is 
 about as brazenly dishonest as anything I ever heard of. 
 It is absurd to talk about our needing the coinage of sil- 
 ver, either free or limited, because we already have more 
 currency in the country than we know what to do with, 
 or are able to use. Our circulation is $1,661,835,000 and 
 lying idle in the treasury, we have $759, 626,000 for which 
 there is no demand. What would we do with free and 
 unlimited coinage at 16.1?" 
 
 Coin pocketed the rebuke with the air of a man who 
 has suffered and continued: 
 
 "A blunder was made when silver was demonetized. 
 The remedy is to remonetize it and thereby restore its 
 commercial value. ' ' 
 
 "But if we find, as we have found already, and we 
 surely would, that the use of silver as money, even 
 exclusively, by this Nation had no appreciable effect on 
 the price of the world's supply that, instead of govern- 
 ing or dictating the ratio of commerce, commerce continued 
 to dictate the ratio to us, what then?" inquired Prof. 
 L,aughlin. 
 
 "If the commercial value of 23. 22 grains of gold is more 
 than the commercial value of 371^ grains of silver, then 
 reduce it to 22, 21, 20 grains or any number less that may 
 be necessary to put the two at a ratio where the practical 
 effect of free coinage will demonstrate that the ratio is at 
 its natural point and parity easily obtained. I have 
 already stated that on page 141 of my book in these words: 
 'Reducing the gold in the gold dollar would leave gold 
 
SOUND MONEY. 99 
 
 for more dollars and this would assist in establishing ris- 
 ing prices, as it would multiply the number of dol- 
 lars. The weight of the silver dollar should not be 
 changed. Its integrity should be preserved as originally 
 fixed. 
 
 " 'One point should never be lost sight of and that is 
 that higher prices will come with the remonetization of 
 siver, even though gold goes to a premium.' 1 " 
 
 "Do you stand by that statement?" asked Col. Forrest. 
 
 "I do," replied Coin. 
 
 "Then, at last the cat is out the bag. You cast aside 
 the bimetallic mask behind which you have been trying 
 to conceal your identity. You stand revealed and self- 
 confessed a silver monometallist and an unblushing advo- 
 cate of national fraud and repudiation!" exclaimed Col. 
 Forrest in stern denunciation. 
 
 A wave of sensation and excitement swept through 
 the hall as the full import of Coin's confession as to his 
 ultimate object and Col. Forrest's accusation impressed 
 itself upon the audience. Hitherto, with Coin and his 
 followers, the cry had been "Bimetallism and free coin- 
 age of the two metals at a parity on equal terms. ' ' Now 
 the truth was out they wanted, all along, a silver basis. 
 They had been accused of this before and had strenuously 
 denied it. It had been argued before that free coinage of 
 silver at 1 6 to i must inevitably result in silver monomet- 
 allism and they had combatted the arguments and 
 declared upon what they were pleased to term their 
 "honor" that they meant no harm to gold, but only 
 sought fair play for silver. All that was now past and 
 the open declaration for a silver basis was of record! 
 The issue was made fairly and squarely for the American 
 people to decide. 
 
100 SO UND MONE Y. 
 
 "Then you coolly propose," continued Col. Forrest, 
 "that if you succeed in obtaining free coinage, and gold 
 still continues at a premium compared with silver, you 
 will 'put less gold in the gold dollar' and 'bring the 
 weight of the gold dollar down until gold and silver are 
 at a parity,' to quote your own words. 
 
 ' 'What does this avowal mean? That the government 
 shall cut all debts in half, both public and private, in 
 order that the debtor class may be relieved by one-half of 
 the burden of their obligations! And this in the face of 
 the express declaration of the constitution forbidding the 
 passage of any law which will impair the obligations of 
 contracts! It is national repudiation and dishonor! It 
 is downright legalized robbery!" 
 
 "Money and those debts payable in money," replied 
 Coin, "have been steadily increasing in exchangeable 
 value as compared with the property of the people. A 
 debt for $1,000 that 1000 bushels of wheat would have 
 paid ten years ago now requires the farmer to give 2,000 
 bushels of wheat in exchange for the dollars wijh which 
 to pay the same debt. Taxes have increased, as expressed 
 in dollars, and have doubled and quadrupled as measured 
 in the property the people have surrendered, and are sur- 
 rendering, with which to pay them since 1873," he con- 
 cluded, boldly pleading justification for the villainy he 
 and his followers propose if the honest men of this honest 
 Nation ever give them the opportunity to carry it into effect. 
 
 "Granting for the moment that what you say is true 
 and it is as false as pretty nearly every other state- 
 ment that you have advanced," said Col. Forrest, delib- 
 erately and emphatically, "the remedy you propose is 
 the confiscation of one-half of the purchasing power of 
 the labor of the country! The reduction in the value of 
 
SOUND MG\'!<:Y. ier 
 
 money one-half would, according to your own theory, 
 advance the prices of all commodities one-half or, in other 
 words, require two dollars from the brawn and brain of 
 labor for the purchase of that which can now be bought 
 for one dollar!" Another wave of sensation swept through 
 the hall, and the excitement became intense. Commis- 
 sioner Rafferty arose from his seat and said: 
 
 " Whenever prices are high, times are good, and there 
 is plenty of work for labor and plenty of employment for 
 capital. If prices go up, so will wages." 
 
 "My dear sir," replied Col. Forrest, "you know as 
 well as I do that when prices advance labor is the first to 
 feel it at the wrong end. Commodities cost more, and 
 the wages of labor is the very last price in the entire list to 
 increase. No matter how much other commodities may rise 
 in price, the man who has only one commodity to sell, his 
 labor, which he is obliged to part with at a forced sale 
 day by day, for daily bread, is ever at a disadvantage. 
 Human selfishness impels his employer to purchase his 
 labor at the lowest price he can be compelled to take, and 
 every advance in wages has always been and I fear, in 
 our time, at all events, always will be preceded by a 
 pitched battle in which labor, whether victor or van- 
 quished, is invariably the greater sufferer. 
 
 "Do I need to remind those men in this audience who 
 proudly wear the badge of the grand army of what oc- 
 curred during the tremendous advance of prices during 
 and following the war? Did not the prices of commodi- 
 ties respond to every upward bound of gold? But did 
 wages ever go side by side with prices ? Never ! Our in- 
 flated paper currency was the heaviest load the laboring 
 men, those who live by the toil of their hands, were ever 
 compelled to carry ! ' ' 
 
iO.> SOUND MONEY. .. 
 
 A spontaneous burst of applause proved that in that 
 audience at least were men with a lively recollection of 
 wild cat and red dog currency and of greenbacks at 60 
 per cent discount. 
 
 "In addition to the confiscation of one-half of the pur- 
 chasing power of the labor of this country you propose to 
 destroy one-half of the purchasing power of the savings 
 of the country in the shape of bank deposits amounting 
 to nearly $4,500,000,000; of public and private debts 
 amounting to untold sums, and of the money held in trust 
 by life and fire insurance companies, building and loan 
 associations, fraternal and mutual benefit orders and the 
 like. In short, if you gentlemen are allowed your way 
 you will inaugurate an era of legitimatized spoliation and 
 legalized robbery." 
 
 "Calling names is always the gold bug's favorite 
 argument," said Coin brazenly. "We have not 
 sufficient money with gold alone and what we have 
 is hoarded away and cornered by the banks so that 
 the people can't get it to use when they need it. We 
 need free coinage of silver to bring the bankers 
 to their senses. We want to kick gold into the 
 street." 
 
 "Never in the history of this country, except in 1892, 
 had we so much money in circulation as at present, nor 
 so much per capita," replied Col. Forrest. "In 1873 we 
 had $774,445,610 of all kinds of money, or $18.58 per 
 capita. All except $25,000,000 of this was depreciated 
 paper, and of that small amount of coin and bullion twen- 
 ty-two and a half millions was held in the treasury. To- 
 day we have $2,421,461,747, or $35.40 per capita, of 
 which only $1,169,390,080 is paper, and every dollar of 
 it is worth 100 cents! 
 
SO UND MONE Y. 103 
 
 ' 'Your oft repeated idea is that only what you call pri- 
 mary money gold and silver adds to the value of proper- 
 ty which it exchanges; that thus all paper money and other 
 evidences of indebtedness, including checks, drafts, bills 
 of exchange, etc. , have no effect, one way or another, on 
 values. This is an utter fallacy. The fact is that not 10 
 per cent of the exchanges of the world are effected by the 
 precious metals coined into money. Sir John L,ubbock 
 put the amount of such money in England at less than 5 
 per cent of paper money of all kinds. You are obliged 
 to assume this fallacious theory, that only primary money, 
 or gold and silver, affects values, as a fact. If you did 
 not, your entire system would tumble like a house of 
 cards for the reason that to-day there is an enormously 
 larger and more effective circulation of money in the 
 world than ever before. In the United States, while the 
 population has increased 60 per cent since 1873, the en- 
 tire volume of currency of all kinds, gold, silver, checks, 
 drafts and bills of exchange, to say nothing of promis- 
 sory notes, is over three hundred per cent greater than it 
 was then! 
 
 ' 'This goes clearly to prove that the theory of the re- 
 pudiators of just debts, .which is that low prices are the 
 result of a contraction of currency by the demonetization 
 of silver, is utterly and mendaciously false. Money was 
 never so plentiful and so cheap in England as it is to-day. 
 It is going a-begging in L,ondon at one to one and one- 
 half per cent on mercantile loans. In France the gold 
 reserve of its national bank has passed the enormous fig- 
 ure of 2,100,000,000 of francs, nearly every franc of 
 which is represented by another paper franc in circulation. 
 This immense monetary inflation ought to have raised the 
 value of French products if your theory, Mr. Coin, is cor- 
 
104 SOUND MONEY. 
 
 rect. And yet it has not done so. Thus, at present the 
 cultivation of wheat in that country has become so un- 
 profitable that, according to the Paris correspondent of 
 the New York Tribune, the raising of wheat, which has 
 been the chief factor in that country's prosperity for a 
 thousand years, has become so unprofitable that whole 
 farming districts are gradually losing their population." 
 
 "France is, practically, a gold standard country," re- 
 plied Coin. "It suffers from demonetization in common 
 with the rest of the world." 
 
 "On the contrary," rejoined the witness, "France has 
 all the benefits which you claim would arise from remon- 
 etization in an enormous volume of currency, combined 
 with all the advantages of a gold standard in the stability 
 of a currency which never fluctuates, except as gold may 
 have a less or greater purchasing power, and none of the 
 disadvantages of a silver standard which requires two sil- 
 ver dollars to do the work of one gold dollar not only in 
 foreign markets but also in its own. You have only to 
 look at the condition of Mexico to realize this fact. 
 
 "And yet, with all these advantages, the prices of 
 commodities in France have not advanced!" 
 
 "Simply because they are measured in gold," per- 
 sisted Coin. 
 
 "Exactly," assented Col. Forrest, as he was about to 
 resume his seat, "and the prices of commodities in every 
 country in the world will continue to be measured in gold, 
 the United States included, whether we remonetize silver 
 or not. If we adopt a silver basis gold will be at a pre- 
 mium of 100 per cent." 
 
 "With silver remonetized," interrupted Coin, "we 
 can, if necessary, by act of Congress, reduce the number 
 of grains of gold in a dollar, as I state on page 143 of tny 
 
ta 
 
 SOUND MONEY. 105 
 
 ok. We can legislate the premium out of gold!" 
 
 "In plain English, then, the result will be that as com- 
 modities will be measured in gold, in conformity with the 
 markets of the world, prices will advance 100 per cent 
 while labor, after a fierce industrial conflict, disastrous to 
 both sides, may succeed in obtaining an advance of 25 
 per cent in its wages and will find itself worse off by 
 three-fourths of its present income than it is to-day. The 
 working people are not fools. L,abor will never put it in 
 your power to perpetrate such an act of folly and to de- 
 grade itself at first to the level of labor in Europe and 
 ultimately to that of Asia!" 
 
 Col. Forrest resumed his seat amid a perfect ovation 
 of cheers. For the first time the workingmen realized 
 what the high prices promised by Coin and his free silver 
 crowd would actually mean. But their eyes had been 
 opened by the action of Coin in casting away all pretense 
 of bimetallism and coming out squarely and flat-footed on 
 a single standard platform of silver. , 
 
 The commission adjourned till the following morning 
 at 10 o'clock at the same place. 
 
106 SO UND MONE Y. 
 
 CHAPTER IV. 
 
 THE LIVELIEST SESSION YET. 
 
 Interest grew in the proceedings of Labor's Commission 
 day by day, and in both political and labor circles noth- 
 ing else was talked of. 
 
 When the fourth session was called to order on the fol- 
 lowing morning Plasterers' hall contained just seven more 
 men than had been there on the previous day. They had 
 hung a plank by means of ropes over the gallery railing, 
 and, sitting on it, listened to the debate in constant peril 
 of their lives. 
 
 Not a minute was wasted. Everybody was on sched- 
 ule time, and as the bells chimed out the first stroke of 10 
 o'clock the gavel rapped for silence. 
 
 "I will introduce, as the first witness, Mr. Robert L. 
 McCabe," said Chairman Clench, "who has made a care- 
 ful study of this question. Mr. McCabe is too well- 
 known as a friend of the working people to need any par- 
 ticular remarks from me. He has studied this question 
 from the standpoint of a man whose own interests are 
 bound up in the prosperity of the whole community, and 
 as such we may be sure he has something interesting to 
 say." 
 
 The big blacksmith seemed quite surprised at his own 
 fluency, and as Mr. McCabe, a representative professional 
 man, stepped to the front he was cordially received. 
 
 "A standard," he began, "must possess the same 
 qualities as the thing it is designed to measure. A 
 standard pound must have inherent weight, a standard yard 
 
* 
 
 SOUND MONEY. 107 
 
 must have lineal length, and a standard dollar must have 
 intrinsic value. Twenty- three and two- tenth grains of 
 gold are valued at 100 cents. Our government stamps 
 this amount of gold a dollar, because it is absolutely 
 necessary that the coinage value of a standard dollar 
 all be exactly equal to its bullion value. 
 
 ' 'The experience of the United States with a double 
 standard has been the experience of the world. During 
 the present century all the great commercial nations 
 have substituted the single standard of value for the 
 double standard without discarding the use of silver as a 
 medium of exchange. They have chosen gold as this 
 standard, because it is divisible, indestructible, and be- 
 cause it contains larger value in smaller bulk, and fluctu- 
 ates less than any other commodity. It is an impossibility 
 to have an absolutely perfect standard of value. The 
 length of a thirty-six inch yard will be exactly the 
 same one hundred years hence as it is now. But the 
 value of a dollar may change in a week, because its 
 value is estimated according to the amount of labor or 
 the products of labor it will buy, as well as our desire 
 to possess it and the cost of its production. 
 
 "Gold approaches nearer the perfect standard than 
 anything else because the demand for its possession, the 
 cost of its production and the sources of its supply have 
 been comparatively regular, uniform and constant from 
 time immemorial. This is true of no other commodity. 
 During all the ages silver has been as capricious in its 
 fluctuations as the mercury in a Chicago thermometer. 
 It lacks the necessary constancy of value for a standard, 
 but it has its invaluable uses as a medium of exchange. 
 
 ' 'There are potent reasons that appeal to Americans 
 who have become world-wide traders to maintain the 
 
108 SOUND MONEY. 
 
 single gold standard. To prevent* endless confusion, we 
 must keep in line with the commercial powers of the earth. 
 If we would extend our commerce, we must keep in concord 
 with the world by observing its fixed business methods. 
 We are a great and important part of the world, but the 
 world is still greater than we, and can get along without 
 us better than we can without it. We depend upon it to 
 consume our surplus of wheat, cattle, corn, cotton, and 
 our surplus of all other stocks. The great commercial 
 firms of the country, such as those headed by Marshall 
 Field, J. V. Farwell and John Wanamaker, must observe 
 certain settled and uniform rules, if they would transact 
 business together with dispatch, economy and profit. But 
 if one firm should disregard the rules of business, it would 
 do so at the hazard of incurring ruin and disaster which 
 usually result from such a course. And this is equally 
 true of commerce among nations. If commercial firms 
 cannot agree as to the regulations of business, or if nations 
 differ as to the wisdom , of maintaining our present gold 
 standard, then they should confer together until an agree- 
 ment is reached. The advocates of silver would have us 
 repudiate the established methods of the world by adopt- 
 ing silver as a standard of value at a ratio of 16 to i. 
 They inform us that we are mightier than the world and 
 that by pursuing an independent course we can coerce the 
 world and bring it to our feet. ' ' 
 
 ' 'You are inconsistent, ' ' interrupted Coin. ' 'You admit 
 that silver has its invaluable uses as a medium of exchange, 
 yet you advocate a single gold standard and approve of 
 the demonetization of silver which has resulted in the 
 appreciation of the value of gold because its supply is not 
 sufficient to meet the growing wants of commerce. All 
 other things have correspondingly depreciated in value 
 
SO UND MONE K 109 
 
 labor, silver and commodities included, and as a result debt- 
 ors are required to pay their debts in gold, worth much 
 more than the money they borrowed, on account of the 
 double burden you have thrown on gold by demonetizing 
 and degrading its fellow servant, silver." 
 
 "That is the false foundation upon which most of your 
 influence with the people at the present moment rests," 
 declared Mr. McCabe. "Chairman Clench tells me that 
 the question of work, wages and prices has been reserved 
 for a later discussion and therefore I shall simply content 
 myself by saying that it is not true that gold has appreci- 
 ated, that it is true that silver has depreciated, but not 
 because of demonetization entirely, or even mainly; and 
 it is also true that by the universal use of bank checks 
 and drafts and a limited amount of paper and silver the 
 production of gold is so fully keeping pace with the 
 demand for it that your idea that it can be cornered at the 
 caprice of combinations of capital is untenable. ' ' 
 
 "To fully understand that gold has not appreciated it 
 is necessary for us to know the use of money as a medium 
 of exchange, as distinguished from its use as a standard 
 of value. We can derive no immediate benefit from the 
 actual possession of money, as it has no inherent qualities 
 which immediately satisfy our wants or gratify our desires- 
 We cannot eat it and we cannot Wear it. It will not 
 transport our goods, neither will it carry on our business. 
 We merely use it as a means to attain these objects. We 
 are indifferent whether these objects are accomplished by 
 money or by its substitutes. Since we can derive no 
 direct comfort, benefit or profit from its actual possession, 
 we are induced to deposit it in banks for the sake of con- 
 venience and safe keeping. It is accessible for our 
 immediate use at all times. When we are not using it, 
 
110 SO UND MONE Y. 
 
 the banks allow others to use it. By this means it is con- 
 stantly employed mediating exchanges either for us or for 
 others. As it is inconvenient to handle the money, we 
 pay our debts and make our purchases with bank checks. 
 This method of doing business has so many advantages 
 that it has become co-extensive with civilization. The 
 bank will soon be the universal cashier and bookkeeper of 
 the world." 
 
 <f Oh, that's the banker's old argument in favor of a 
 limited or contracted currency which would suit him be- 
 cause it would tighten his grip on the people and enable 
 him to wring a higher rate of usury from the unfortunate 
 borrower," asserted Coin. "What the bankers don't 
 want is generally a good thing for the people to have. 
 The people want silver remonetized so that with a great 
 volume of currency in use trade will revive and money 
 cannot be cornered to the detriment of 68 millions of peo- 
 ple for the benefit of a few bankers." 
 
 This attack secured applause from that small portion 
 of the audience which had not yet been converted from 
 the silver heresy and these few made up in noise what 
 they lacked in numbers. Mr. McCabe smiled as he no- 
 ticed the effect the claptrap had on these irreconcilables 
 and continued: 
 
 "Any child knows that yard sticks cannot sell calico, 
 but that the sale of calico requires the use of yard sticks. 
 A million yard sticks would not increase the business of 
 Marshall Field. It has been truly said by some one, 
 'that money does not create exchanges, but exchanges 
 create a necessity for money. ' It follows from this aphor- 
 ism, that the quantity of money needed for a country does 
 not depend upon the number of inhabitants, but rather 
 upon the number of exchanges and the commercial meth- 
 
SO UND MONE Y. Ill 
 
 ods of making these exchanges. A large per capita cir- 
 culation will not increase our prosperity, as Col. Forrest 
 has shown, neither will a large number of yard sticks 
 increase Marshall Field's business. 
 
 "In 1892 our per capita circulation was $24.47 the 
 largest amount we had ever had yet our prosperity was 
 suddenly transformed into depressing gloom, and for two 
 years we have been compelled to suffer the hardships of 
 unprecedented adversity. 
 
 "The present bullion value of a silver dollar is 50 
 cents, yet, as a medium of exchange it does all the work 
 of a gold dollar, as both have the same debt-paying and 
 purchasing power. Silver has this power, not because 
 the government has stamped it a dollar, but because it is 
 the policy of the government to exchange it for a gold 
 dollar whenever it is presented. If the government should 
 fail to carry out this policy for any reason whatever, then 
 the purchasing and debt-paying power of silver would 
 only equal its present bullion value of 50 cents. As 
 Mexico does not maintain such a policy, the coinage value 
 of its dollar is identical with its bullion value. 
 
 1 ' Two Mexican silver dollars, containing 420 grains arc 
 daily exchanged in the City of Mexico for one of our silver 
 dollars, which contains only 4.12 1-2 grains." 
 
 ' 'The government can pass a law fixing a value, but it 
 cannot fix a value by passing a law. It can pass a law 
 increasing the age of mortality, but this will not suspend 
 the law of mortality and prolong human life. It can pass 
 a law fixing the value of silver, but this will not suspend 
 the law of supply and demand and prevent the fluctua- 
 tions of its value. Government has not sovereign power 
 over natural and economic laws. It is merely the agent of 
 the people designed to act with intelligence and honesty. ' ! 
 
112 SOUND MONEY. 
 
 These convincing illustrations of the fundamental 
 principles of money were so apt and so readily compre- 
 hensible that the moment the witness paused the audience 
 immediately burst into prolonged cheering and it was 
 fully a minute before Mr. McCabe was able to continue. 
 Commissioner Hobb's honest face fairly beamed, Chair- 
 man Clench looked convinced and Commissioner Rafferty 
 knitted his brows and settled himself in his chair, evi- 
 dently prepared to follow the witness with the closest 
 attention. 
 
 ' ' In addition to gold and silver as media of exchange, ' ' 
 continued Mr. McCabe when silence had been restored, 
 "we also have a paper currency. The purchasing and 
 debt-paying power of a paper dollar varies according to 
 our estimate of the ability and readiness of the govern- 
 ment to redeem it in gold. At one time during the civil 
 war our paper dollar was only worth 40 cents in gold, but 
 when the government resumed specie payments in 1879 it 
 immediately became the equal of gold in debt-paying and 
 purchasing power, and has remained so ever since. Our 
 currency embraces $1,169,390,080 of paper, and $1,252,- 
 071,667 in gold and silver coin or bullion ready for the 
 mint, every dollar of which is the equal of the other in 
 debt-paying and purchasing power.' Thus far the supply 
 of gold has always been ample to sustain a safe currency 
 for us. I say a safe currency as distinguished from 
 a debauched and unsound currency. So long as we 
 maintain a safe currency we can have all the gold 
 we need for there is no scarcity for legitimate de- 
 mands. The world's supply of gold during the last 
 forty-five years has increased 50 per cent over its supplv 
 during the three preceding centuries. Gold measures the 
 value of labor as well as of commodities, and if these incon- 
 
SOUND MONEY. 113 
 
 gruous facts prove anything they prove that the value of 
 gold has remained normal, while silver has depreciated 
 on account of its enormous production beyond the demands 
 of the world since the discovery of our tremendous silver 
 deposits in the west and on account of the greatly reduced 
 cost of mining them owing to the application of new and 
 scientific processes. ' ' 
 
 "You are wrong," interrupted Coin, once more brav- 
 ing a knock-down blow. "The value of silver is the 
 same to-day as ever it was. An ounce of silver will buy 
 as much wheat as it ever did. Silver has stood still 
 while the value of gold has increased. Now suppose that 
 all the world should stop using corn, barley, oats in 
 fact every other cereal excepting wheat; what would be 
 the result? The value of wheat would increase, wouldn't 
 it? That is just what happened to gld when silver was 
 demonetized by the principal commercial nations of the 
 world. Take another illustration which fits the remone- 
 tization of silver in our own country independently of the 
 action of the rest of the world. Suppose that Congress 
 should pass a law to-morrow authorizing the purchase by 
 the government of 100,000 cavalry horses of certain sizes 
 and qualities. The government would enter the market 
 to get these horses and horses would advance in value 
 not only the kind of horses desired but also other horses 
 for which there would be a demand to take the place of 
 the horses sold to the government. Horses would go up, 
 wouldn't they?" And with a smile of triumph the irre- 
 pressible Harvey Coin paused for a reply. He got it. 
 
 "I will answer your second question first," said Mr. 
 McCabe. ' 'Your government demand for horses is sup- 
 posed to represent the demand for silver if free coin- 
 age should be established. What would happen would 
 
114 SOUND MONEY. 
 
 be this: Kvery man who had a horse to sell would be on 
 hand on the appointed day and the competition of the 
 sellers among themselves would insure the government 
 getting the animals at their fair commercial value. ' ' 
 
 "Yes, but if there were less than 100,000 horses in the 
 country," objected Coin, "the fair commercial value 
 would itself rise on account of the demand. ' ' 
 
 "Temporarily, perhaps," was the reply, "but the in- 
 flexible law of supply and demand would operate and the 
 government would quickly find any quantity an unlim- 
 ited supply, of foreign horses at its disposal. If the 100,- 
 ooo horses should be required annually for an unlimited 
 or unspecified number of years, hundreds of men would 
 go into the business of raising horses and presently they 
 would be cheaper than ever. This is just what occurred 
 under the Sherman act. The Treasury Department was 
 ordered by Congress to purchase 2,250 tons of silver, per 
 annum, for coinage into silver dollars. This law went 
 into effect August 14, 1890. During the year 1890 the 
 production of silver was 5,253.95 tons and the price rose 
 from an average of 93 cents per ounce in 1889 to an aver- 
 age of $1.04 in 1890. Stimulated by the government 
 purchase of 2,250 tons of silver annually, the production 
 of it increased by 457.33 tons in 1891 and the average 
 price fell to 98 cents. In 1892 the production was 
 1,118.54 tons over that of 1890 and the average price fell 
 to 87 cents. In 1893 the production was 1,903.37 tons 
 over that of 1890 and the price fell still further to 78 
 cents. Then the law was repealed. ' ' 
 
 "And a good thing, too!" shouted a man in the audi- 
 ence, and laughter mingled with applause followed the ex- 
 posure of the fallacy of Coin's illustration. Mr. McCabe 
 continued: 
 
SOUND MONEY. 115 
 
 "Now, with regard to your wheat story you are more 
 at odds with common sense and every day experience 
 than you are with your horse proposition. Your wheat 
 is intended to represent gold and you want all the world 
 to stop using every other cereal. Then, you say, up 
 goes the price of wheat. You will yourself admit the ab- 
 surdity of your comparison if you reflect for a moment 
 that the world's supply of wheat is represented by one 
 year's crop. That is eaten up and it disappears so that 
 the demand for wheat is constant and continually increas- 
 ing with the increasing population of the world. Its 
 value depends upon two things the amount of supply in 
 proportion to the demand and the cost of production and 
 transportation. With gold it is entirely different. Mul- 
 hall tells us that 45 per cent of all the gold produced 
 goes into the arts and manufactures while 55 per cent 
 goes into coinage or remains in bars of bullion for the set- 
 tlement of balances of trade between nations. There is no 
 telling how much of the gold manufactured continues in 
 a form which would allow it to be put into the melting 
 pot and turned into bullion at short notice; but that 
 amount must be at least 35 per cent of the whole. The 
 amount that disappears by attrition is insignificant, as 
 Mulhall tells us that gold coin in circulation loses only 
 one per cent from this cause in fifty years. Hence, only 
 10 per cent of the annual production of gold is, like the 
 wheat, used up and lost forever. It follows, therefore, 
 that the stock of gold in the world represents the accumula- 
 tion of the centuries and is permanently increasing at the rate 
 of 90 per cent of the total production of the world every year. ' ' 
 
 Again the audience applauded the dissipation of 
 another of Coin's bugaboo bogus theories. Every man of 
 them knew that, bringing the matter close to home, the 
 
116 SOUND MONEY, 
 
 little stock of gold jewelry, rings, watches, chains and 
 other trinkets in his own family had accumulated gradu- 
 ally from as far back as he could remember. Every man 
 among them knew that such articles are much more 
 widely distributed to-day than they were 40 years ago 
 when to possess a gold watch and chain stamped a man 
 as a person of some importance and a gold headed cane 
 was considered a badge of eminent financial respectability. 
 
 "Now, one word about that 'horrible crime' of 1873, 
 the history of which my friend, Prof. L,aughlin, is pre- 
 pared to lay fully before this commission if it is so desired, ' ' 
 continued Mr. McCabe. 
 
 ' 'It certainly is desired, ' ' Chairman Clench assured 
 him. "We are here to investigate all the facts in the 
 interest of the wage workers who intend to vote on this 
 question as their own interests dictate; irrespective of 
 what banks, bankers, silver miners, gold miners or politi- 
 cians may desire. ' ' 
 
 The vigorous cheer with which this sentiment was re- 
 ceived showed beyond question that party names and 
 party ties would count for little in the impending struggle 
 between sound money and a debased coinage. 
 
 "It is recklessly asserted by the silver monometallists 
 that a great crime was committed by the theoretical de- 
 monetization of silver in 1873, and that the law'was 
 passed by questionable methods and in a clandestine man- 
 ner at the instance of a conspiracy of capitalists. If it had 
 been true that there had been a conspiracy among capital- 
 ists to enhance the value of money, they would undoubt- 
 edly have had gold demonetized, because our up to that 
 time insignificant stock of silver money had utterly disap- 
 peared. These conspirators never had any existence ex- 
 cept in the minds of men themselves so wicked and cor- 
 
SOUND MONEY. 117 
 
 rupt that they find it natural to ascribe only wicked and 
 corrupt motives to others. If there had been any such, 
 and they had intended to run a corner on money, they 
 certainly would have cornered the scarcer metal, which 
 at that time was silver; and their first act would have been 
 to secure the coinage of silver dollars, not to prevent it, in 
 order to carry out their scheme 7" 
 
 Again the applause was deafening as this point was 
 made, and perhaps the most interested man in the hall 
 was Commissioner RafTerty. His sympathy for silver 
 was almost entirely the result of his intense hatred of 
 England. He had been persuaded that the demonetiza- 
 tion of silver was the result of a base conspiracy of British 
 capital which had succeeded in bribing American sena- 
 tors and congressmen in 1873 to commit an act that 
 ranked in cowardly perfidy with the treason of Benedict 
 Arnold. By skillfully playing upon this prejudice and 
 plying him with plausible falsehoods, fraudulent statistics 
 and false logical deductions, prepared with infinite craft 
 and cunning by the bonanza kings and their hirelings, 
 Coin had easily convinced him that free coinage was in- 
 dispensible to the prosperity of this country. 
 
 And Rafferty only stands as the type of a large and 
 ordinarily intelligent class of the community. 
 
 "Whenever property interests and humanity have 
 come in conflict, England has ever been the enemy of 
 human liberty, ' ' said Coin as soon as the applause stopped. 
 "All reforms with those so unfortunate as to be in her 
 power have been won by the sword. She yields only to 
 force. England is the creditor nation of the globe and 
 collects hundreds of million of dollars annually in gold, 
 from the rest of the world. We are paying her two hun- 
 dred millions yearly in interest." 
 
118 SOU ft D MONEY. 
 
 "In gold?" asked Editor Evans. 
 
 "Yes, in gold," assented Coin. "She demands it in 
 gold. The contracts call for it in gold. Her policy ever 
 since 1816 has been to draw gold from her victims and 
 then lend it back to them at high interest. You will find 
 that statement in my book on page 132 and elsewhere." 
 
 "It is a rather remarkable circumstance," said Editor 
 Evans, "that our total gross exports of gold, not net 
 exports, remember, including ores and copper matte con- 
 taining gold, for the fiscal year ending June, 1894, 
 amounted to exactly $77,162,228. Will you kindly ex- 
 plain how England managed to get $200,000,000 out of 
 $77,000,000?" 
 
 "She consumed all of our balance of trade, all our 
 annual gold production of about $40,000,000, and drew 
 on our surplus stock of gold for the deficiency; as I stated 
 in an article in the Chicago Record over my own signa- 
 ture," replied Coin, confident that he had very cleverly 
 lifted himself out of a very bad scrape. 
 
 "If Commissioner Rafferty will kindly open the Treas- 
 ury Report, which is at his elbow, at page 282, I will 
 show that Mr. Coin seems to be absolutely incapable of 
 telling the truth," said the editor, who, by this time, was 
 mad clear through at the unbounded dishonesty of "the 
 little school-master." Rafferty did as he had been re- 
 quested, and Evans continued: 
 
 "Is it not true that we exported to Germany, out of 
 that seventy-seven millions of gold, twenty-eight million 
 eight hundred and eleven thousand skip the hundreds?" 
 Rafferty quickly added two lines of figures and replied: 
 
 "The Treasury Report so states." 
 
 "Does not the same table show that we exported to 
 France fifteen million, four hundred and fifty thousand?" 
 
SOUND MONEY. 119 
 
 "It does," said Rafferty. 
 
 ' 'And to Cuba twelve million, three hundred and fifty- 
 one thousand?" 
 
 "That is the amount," said Rafferty. 
 
 "Now, please tell Mr. Coin and this audience how 
 much gold England got out of the seventy-seven millions. 
 Give the amount in full and make it as close to two hun- 
 dred millions as the truth allows, ' ' cautioned the editor 
 with a twinkle in his eye. 
 
 "14,853,500 dollars," read the Commissioner. He 
 could hardly believe his eyes and looked at his mentor in 
 undisguised amazement. 
 
 "How about that forty millions of gold production, 
 Mr. Coin?" inquired the editor. "And while you are at 
 it, will you kindly state what sum John Bull succeeded in 
 getting out of our gold reserve in the treasury? We have 
 already accounted for fifty-six and one-half millions out of 
 the seventy-seven millions without counting England's fif- 
 teen millions. I want to know where she got the balance 
 of that two hundred millions in gold?' ' Coin did the most 
 sensible thing he could have done under the circumstances. 
 He said wearily: 
 
 "I give it up. Last year must have been a pretty 
 bad one for British investors. ' ' 
 
 "Not so very bad," replied the editor. "If one is to 
 judge by the amount of gold imported into England it 
 was next to the best on record. The total gross imports 
 were almost one hundred and twenty-one millions and the 
 net imports twenty-six millions. The biggest year on 
 record for imports was 1891, when one hundred and forty- 
 seven and one-half millions, gross, and nearly thirty mill- 
 ions, net, were the amounts drawn by British investors from 
 all parts of the world. This was not all interest, by any 
 
120 SOUND MONEY. 
 
 means. Much of it was capital withdrawn from invest- 
 ment in this country in the process of liquidation which 
 followed the failure of Baring Bros, in 1890, and the fear 
 of what these gentlemen are urging free silver coinage. 
 
 "Now, sir, have you the effrontery to tell this audience 
 that you spoke the truth when you stated to this commis- 
 sion that England annually drew hundreds of millions of 
 dollars in gold from her victims?' ' 
 
 Coin' s assurance had deserted him. He made no reply. 
 
 "If Commissioner Raff erty will turn to page 344 he 
 will find our gold exports tabulated." Rafferty did so 
 and Evans continued: "Did we ever export two hundred 
 millions in a year, all told, Commissioner?" 
 
 "No, sir," replied Rafferty, "the largest amount was 
 in '64 about eighty-nine millions." 
 
 "The result of the war," commented the editor. 
 "The next highest?" 
 
 "In round numbers, eighty-six and one-half millions 
 in 1893." 
 
 ' 'The result of the silver panic. And the next?' ' 
 
 "The sixty-eight millions in 1891," replied the 
 commissioner, who was dazed by the results of the day's 
 exposures. ' 'After that the high numbers are fifty mil- 
 lions in '89, sixty-four millions in '68, sixty- three mil- 
 lions in '66, and sixty millions in '71." 
 
 ' 'That's enough, thank you, ' ' said the editor. "From 
 1873 to 1894, inclusive, we exported, net, only $5, 538, 423 
 per annum on the average, or a total of $116,306,880 
 less thaft this mythical $200,000,000 a year which 
 Coin says England wrests from us as interest. From 
 1873 to 1891, we imported, net, $32,852,482, and would 
 have continued this profitable state of affairs had it not 
 been for the silver agitation and its resulting panic." 
 
SOUND MONEY. 121 
 
 This statement of the editor was received with cheers. 
 "As poor old Story used to say, 'there's another lie 
 nailed,' " he remarked, sotto voce, as he resumed his seat 
 beside Col. Forrest. 
 
 ' 'The money lenders of the United States, ' ' continued 
 Coin, "who own substantially all of our money, have a 
 selfish interest in maintaining the gold standard. They 
 will not yield. They believe that if the gold standard can 
 survive for a few years longer the people will get used to 
 it get used to their poverty and quietly submit. 
 
 ' 'These men are seeking to rivet upon us the gold 
 policy of Kngland, with nothing but gold to be the pri- 
 mary money of this country. Their policy has driven 
 the administration to go to the pawnbrokers of England 
 to get gold enough to sustain this great government." 
 
 This cowardly allusion to the recent bond sale by the 
 government, in spite of the fact that the action of the Cleve- 
 land Administration had been indorsed by all the thinking 
 men and the newspapers of the land, irrespective of party 
 affiliations, brought Mr. McCabe, himself a staunch and 
 prominent Republican, to his feet in a moment, in defense 
 of the only course which could possibly have saved the 
 United States from an inevitable fall to a silver basis and 
 the precipitation of the most terrible financial panic in the 
 history of the nations, a panic which would have shaken 
 the commerce of the world from center to circumference. 
 
 "We are now stranded with a currency," he declared, 
 ' 'which is kept at par only by the stubborn determination 
 of President Cleveland. He has patriotically declared 
 that he will hypothecate the last dollar of American credit 
 to get the gold that is necessary to maintain our great mass 
 of silver at par. We were not compelled to beg for gold 
 between 1879 and 1885, as we are now doing. We had 
 
122 SO UND MONE Y. 
 
 an abundance of it, and it stayed with us because its in- 
 tegrity was not threatened by the depreciating influences 
 of silver. 
 
 "We were not contented with this fruitful period that 
 followed resumption when we had but $25,000,000 of gold 
 and scarcely any silver, but we must try the experiment 
 of increasing our prosperity by increasing the volume of 
 depreciated silver. We have sadly learned that the result 
 is the reverse of what was claimed and expected. 
 
 . ' 'Two years ago we had about $600,000,000 of gold 
 and $620,000,000 of silver, but this great addition of 
 silver to our currency has not prevented, but has been the 
 direct cause of, the present widespread financial depres- 
 sion. When I consider that this is the result of the limited 
 coinage of silver, I am appalled to think of the paroxysms 
 of commerce and universal despair that will follow the 
 free and unlimited coinage of this fluctuating metal. Our 
 present thralldom would only be the evening of a long 
 night of intense suffering. ' ' 
 
 ''They'd better listen to reason before it's too late," 
 shouted a big fellow, who had been a constant attendant 
 at every session. 
 
 "That's the circus man again," said Hobbs, smiling. 
 
 "If people will not listen to reason now, they will be 
 required to learn wisdom with an empty stomach, and 
 gather knowledge in ragged clothes," replied McCabe, 
 and the audience applauded. They were evidently satis- 
 fied that he knew what he was talking about. The wit- 
 ness continued: 
 
 ' 'The grasp of hard times will not be relaxed until 
 the agitators for a depreciated currency are beaten into 
 harmless silence. Even now capital is eager to plunge into 
 American enterprises and reap profits from an abundant 
 
SOUND MONEY. 123 
 
 and common welfare. But we can entice it back only by 
 giving it the positive assurance that we will always be 
 honest enough to return what it gives us, and that we will 
 not return a 5o-cent dollar for its zoo-cent dollar. 
 
 ' ' Until our intentions as to the present issue of free 
 silver are definitely known, capital will continue to shun 
 our investments. We must first convince it that we are 
 not joined to the idol of depreciated silver. It is impos- 
 sible for us to have a safe system of currency until gold 
 is indisputably established as our single standard of value. 
 Around this standard we can construct a currency that 
 will be the equal of the best in the world. We must fix the 
 center pole before we spread the tent. We must reaffirm 
 our single standard before we can readjust our currency." 
 
 The applause and cheering which greeted the last 
 words of Mr. McCabe amounted to an ovation, and the 
 speaker was obliged to rise and bow several times before 
 the audience would be satisfied. After he had sat down, 
 Chairman Clench said, consulting his memoranda, "Mr. 
 McCabe remarked, a short time ago, that Prof. Laughlin 
 was able to give us the history of what Mr. Coin continually 
 refers to as 'the crime of 1873.' I confess I'm in the 
 dark about that crime, and, if it is agreeable to the gen- 
 tleman, we'd like to hear from him." 
 
 "The truth about that matter, and the whole truth, 
 can be quickly told," said the professor. "I have herj 
 the books to which I shall refer, and it will perhaps b ; 
 satisfactory to Commissioner Rafferty if I leave them in hi ; 
 charge to be referred to by you gentlemen, when you writ 2 
 your report. ' ' So saying he handed the books to the com 
 missioner. They consisted of House Executive Documents 
 N- 37) 2( t Session, 4.1 st Congress, a copy of the U'ntrl 
 States statutes, and a volume of the Congressional Globe, 
 
124 SOUND MONEY. 
 
 ''No codification of the mint laws," he began, "had 
 been made since 1837, and a complete revision of all 
 technical matters of assayage and coinage was undertaken 
 in 1870. , An attempt was made to get as nearly a perfect 
 system as possible. Consequently the authorities sent 
 out to scores of experts the new provisions for criticism. 
 Many replies came in and can all be found in the volume 
 of documents I have handed you. In this original bill, 
 sent out for suggestions, a silver dollar of 384 grains 
 standard weight was proposed, or one just equal to the 
 dollar's value of subsidiary coins issued since 1853. In 
 the beginning it was clear that the old silver dollar piece 
 was to be dropped. This was noticed in the replies of the 
 experts; and Robert Tatterson, of Philadelphia, among 
 others, spoke of it as follows: 
 
 " 'The silver dollar, half-dims and 3-cent piece are dispensed 
 with by this amendment. Gold becomes the standard money, of 
 which the gold dollar is the unit. Silver is subsidiary.' 
 
 "Dr. lyinderman, at one time Director of the Mint, 
 also said: 
 
 " 'Section u reduces the weight of the silver dollar from 412^ 
 grains to 384 grains. It would be better, in my opinion, to discon- 
 tinue its issue altogether. The gold dollar is really the legal unit 
 and measure of value. ' 
 
 ' 'The bill was submitted to congress by the Secretary 
 of the Treasury, April 25, 1870, and after having been 
 printed thirteen times, after having been discussed to the 
 extent of 14.4. columns of the ' Congressional Globe, ' it did 
 not become a law until Feb. 12, 1873. The act as finally 
 passed is as follows, so far as it is of interest to us: 
 
 " 'Sec. 14. That the gold coins of the United States shall be a 
 one-dollar piece, which, at the standard weight of twenty-five and 
 eight-tenths grains, shall be the unit of value. [Then follow direc- 
 tions as to other gold coins.] 
 
SOUND MONEY. 125 
 
 " 'Sec. 15. That the siver coins of the United States shall be a 
 trade dollar, a half dollar, or fifty-cent piece, a quarter dollar, or 
 twenty-five-cent piece, a dime, or ten-cent piece; and the weight of 
 the trade dollar shall be 420 grains troy; the weight of the half dol- 
 lar shall be twelve grams and one-half of a gram; the quarter dollar 
 and the dime shall be respectively one-half and one-fifth of the 
 weight of said half dollar, and said coins shall be a legal tender at 
 their nominal value for any amount not exceeding $5 in any one 
 payment. 
 
 " 'Sec. 17. That no coins, either of gold, silver or minor coin- 
 age, shall hereafter be issued from the mint other than those of the 
 denominations, standards and weights herein set forth.' 
 
 "This is the whole of the much-famed act of 1873, 
 which deals with the 'demonetization' of silver. In the 
 discussions in Congress no opposition whatever was mani- 
 fested to the omission of the 412^ grain silver dollar; 
 because it had not been in circulation since 1840. The 
 silver dollar was dropped simply because, being worth 
 more than iocr cents in gold, it had not been possible to 
 keep it in concurrent circulation with gold. 
 
 "The act of 1873 simply accepted the situation which 
 had been apparent in 1849 and had already been indi- 
 cated by the act of 1853. 
 
 "The act of 1873 did not change anything not already 
 accomplished by the logic of events. Silver dollars were 
 not driven out of circulation by the act of 1873, which 
 dropped out the dollar piece of 412^ grains because it 
 had not been in circulation for twenty-five years and more. 
 
 "It was in 1853 that the real adoption of the gold 
 standard took place. In the act of that year Congress, 
 after reviewing our experience since 1792, consciously 
 maintained the machinery by which silver dollars were 
 being kept out of circulation, and frankly avowed its inten- 
 tion to then create a single gold standard. And from 
 
126 SOUND MONEY. 
 
 1853 to the suspension of specie payments, Dec. 31, 1861, 
 we had only gold as a standard in this country. 
 
 ' 'And the land prospered and waxed fat, without any 
 of the silver dollars. They were objects of admiration, 
 to be seen only in museums. Being worth more than 100 
 cents in gold no one was clamoring for their use with 
 which to pay debts. It was only after 1876, when their 
 value had fallen below 100 cents in gold, that the cries 
 went up to heaven for silver dollars with which to scale 
 indebtedness. That is a significant historical fact. The 
 act of 1873, then, only recognized existing conditions, 
 already accepted by the act of 1853. The following table 
 will disclose the whole history of the enactment at a 
 glance: 
 
 Procedure. Senate. House. 
 
 Submitted by secretary of the treasury. .April 25, '70 
 Referred to senate finance committee. . .April 28, '70 
 
 500 copies printed May 2. '70 
 
 Submitted to house June 25, ' 70 
 
 Reported, amended and ordered printed . Dec. 19, '70 
 
 Debated Jan. 9, '71 
 
 Passed by vote of 36 to 14 Jan. 10, '71 
 
 Senate bill ordered printed Jan. 13, '71 
 
 Bill reported with substitute and recom- 
 mitted Feb. 25, '71 
 
 Original bill reintroduced and printed. . Mar. 9, '71 
 
 Reported and debated . . .- Jan. 9, '72 
 
 Recommitted Jan. 10, '72 
 
 Reported back, amended and printed. . Feb. 13, '72 
 
 Debated April 9, '72 
 
 Amended and passed by vote of 1 10 to 
 
 13 May 27, '72 
 
 Printed in senate May 29, '72 
 
 Reported, amended and printed Dec. 16, '72 
 
 Reported, amended and printed Jan. 7, '73 
 
 Passed senate Jan. 17, '73 
 
 Printed with amendments, conference 
 
 committee appointed Jan. 21, '73" 
 
 Became a law Feb. 12, 1873 
 
 This calm and dispassionate review of the real facts in 
 connection with John Sherman's "horrible crime," as 
 
SOUND MONEY. 
 
 frequently and recklessly alleged by Coin and his friends, 
 was the more readily and confidently received because of 
 two facts the distinguished position and honorable repu- 
 tation of Professor Laughlin, who presented it, and the 
 well known and often proved mendacity of the now 
 notorious Coin, who had been one of the principal agents 
 in disseminating the outrageous story. People did not ap- 
 plaud so much when the Professor got through as they 
 had when he demonstrated that the so-called crime of '73 
 had been committed twenty years earlier, and that nobody 
 seemed to have found out until forty years afterward that 
 the "awful deed of demonetization' ' had been done. Coin 
 had already been so thoroughly discredited that the ex- 
 posure of any further mendacity on his part elicited inter- 
 est rather than surprise. 
 
 Edward Atkinson, of Boston, the eminent authority on 
 social and political economy, whose contributions on 
 these subjects have been widely read and studied, was 
 next introduced. Mr. Atkinson commenced by say- 
 ing: 
 
 "There are two kinds of fools in this world. One 
 consists of the natural fools, and to describe the other a 
 swear word is necessary. That swear word is well ap- 
 plied when Mr. Coin begins to talk about banks and 
 bankers owning all the gold and trying to oppress the 
 community by forcing the use of gold money or its 
 equivalent. 
 
 "Money made of gold requires no force. Everybody 
 that can get it wants it. It is only cheap silver dollars 
 that require force to make a man take 'em. The class of 
 condemned fools of the silver-crank type try to make the 
 natural fools believe that banks and bankers conspire 
 against them. 
 
128 SO UND MONE Y. 
 
 "Banks and bankers own and keep no more gold 
 than is necessary to enable them to pay their debts. 
 
 "If there is one standard by which to judge of the 
 relative ignorance or intelligence of a community it is 
 their intelligent support and use of banks or their 
 ignorant opposition to them. The bank is the next 
 friend to the farmer, the mechanic and the tradesman if it 
 is rightly organized and safely conducted. 
 
 "If you find a community that will not support banks 
 then you are sure to find a community of ignorant peo- 
 ple whom it is not safe to trust, and who may worry 
 along on cheap silver, if they can get it, or any other kind 
 of money that their ignorance will permit them to get 
 hard to get at that. 
 
 "The country was never in a stronger, more prosper- 
 ous or more progressive condition than in the years 1891 
 and 1892, so far as all the facts making for prosperity 
 are concerned, except for the condition of the currency. 
 Then came the silver craze, promoted mainly by the own- 
 ers of silver mines and smelting furnaces. This petty 
 silver industry gave employment in 1890 to a force of 
 only about 33,000 men, half of whom derived the silver 
 from lead or copper ores. ' ' 
 
 "That's all very fine," interrupted Coin, who was 
 smarting under the roasting he had received, "but what 
 was the value of the product of those 33,000 men?" 
 
 "Their total product in any given year," remarked 
 the sage, "was less in value by one-half, or more, than 
 the national product of hen's eggs." 
 
 At this sharp reply there was a roar of laughter which 
 Mr. Atkinson checked by a gesture and said, "That state- 
 ment is not a joke, gentlemen, it is the truth as given in 
 the census report. With an audacity in inverse propor- 
 
SOUND MONEY. 12<) 
 
 tion to their importance, and being in control of a num- 
 ber of seats in the senate in inverse proportion to the 
 number of persons represented, they have spread abroad 
 the delusion that the people need cheap money. 
 
 "They are attempting to put bad money upon the 
 people by acts of legal tender; that is to say, money 
 which will not stand the hammer test. The test of true 
 money is the hammer. If gold coin can be placed upon 
 an anvil or in the melting pot and reduced to bullion, it 
 is worth as much after it is hammered smooth or melted 
 as it purports to be worth in the coin. If silver be ham- 
 mered smooth or melted, it is worth only half as much 
 as it purports to be worth in coin. 
 
 "In this effort to defraud the great mass of the people 
 by assuming a false appearance of what is called bimetall- 
 ism, in their effort to put this country upon a single 
 standard of a 5o-cent dollar, these men suddenly brought 
 doubt and discredit upon the Nation. The panic ensued; 
 credit ceased; constructive enterprise stopped. Hundreds 
 of thousands of people who were ordinarily engaged in 
 constructive work and in providing for future need were 
 discharged from work for lack of credit. Prices were 
 forced below the cost of production-, and for two years 
 the country has paid the penalty of this delusion of cheap 
 money and the silver craze. 
 
 "The pretext under which this nefarious effort has 
 been conducted is that we must raise prices. For whose 
 benefit are prices to be raised by tampering with the cur- 
 rency and destroying the credit of the dollar? Prices 
 were raised in that way by the issue of the legal-tender 
 notes during the war. Prices in 1865 went up double, 
 treble, quadruple what they had been. How about 
 wages? Did they go up double, treble, quadruple? Not 
 
130 SO UNO MONE Y. 
 
 a bit. A day's work of an honest, industrious man in 
 1865 would only buy for him two-thirds as much food, 
 fuel, clothing and shelter as he enjoyed in 1860." 
 
 Again a reference to the days of a depreciated cur- 
 rency and an allusion to the inconvenience and suffering 
 it wrought brought down the house. The big circus 
 man arose in his place and said: 
 
 "I was a candy butcher in those days with P. T. 
 Barnum's circus, and we wouldn't let folks even look at a 
 little sack of peanuts for less than a 2 5 -cent shiuplaster- 
 Lemonade was a quarter, or three for half a dollar, and 
 my pay was twelve dollars a month and my board. ' ' 
 
 "If your pay was low it wasn't because there wasn't 
 sufficient currency," answered Mr. Atkinson," for the 
 government turned out greenbacks about as fast as they 
 could be printed. But to return to silver. We are using 
 more silver in this country, and in the world, than we 
 ever did before for money; the demand is constant and it 
 always will be; but the only safe way to use it is to limit 
 the coinage, not to try to force it upon the people who 
 don't want it. Our only security is to make all the sil- 
 ver notes, government notes, and every other kind of 
 representative money payable or redeemable only in gold 
 coin. 
 
 "We have the command of the gold of the world. 
 We produce food, fibers and metals which the world must 
 have. We can spare almost all the foreign goods that we 
 import if we want gold for wheat and cotton. When we 
 want gold to use for money, we can have all the foreign 
 capital we want, on a gold basis, in all our constructive 
 enterprises. What fools foreigners would be to trust their 
 capital, now on a solid gold basis, to people who pro- 
 pose to pay them in cheap silver whether they want it 
 
SO UNO MONE Y. 131 
 
 or not! Such men those who have capital to lend 
 belong to neither class of the fools that I have re- 
 ferred to. 
 
 They keep their money. 
 
 The}^ refuse to trust silver lunatics, and they have 
 been right. When we are fit to be trusted, as we shall 
 be when this silver free coinage craze is stamped out, we 
 shall have a boom in constructive enterprise, and by so 
 much as the industry of the country has been suppressed 
 during the last two years will it become active in the 
 next two years. 
 
 "Under the brave and courageous policy of the Presi- 
 dent and his cabinet, confidence is being restored. Prices 
 which had been unduly depressed have risen, wages are 
 being restored to their former standard, and new enter- 
 prises are being presented, with a fair prospect of being 
 worked, provided the silver cranks do not get up another 
 panic like that which they succeeded in making in 
 
 "That panic was the deliberate work of the gold- 
 bugs," interrupted Coin. Atkinspn took no further 
 notice of his accusation than to look at him with undis- 
 guised contempt, as he said: 
 
 ( 'The people who are being cheated by the pamphlets 
 and articles in the papers which are paid for by the silver 
 barons had better put some questions to them. The man 
 who wants to go to a financial school should put to Sen- 
 ator Stewart the question, 'Why do you permit your 
 agent to loan money on mortgages payable only in gold?' 
 Why not ask Senator Stewart, Senator Jones, Representa- 
 tive Newlands, and the rest of them, why they don't take 
 their own salaries as members of Congress and senators 
 in silver dollars? Look into the condition of the banks in 
 
132 SOUND MONEY. 
 
 Colorado, Nevada, etc. , of which some of these men are 
 directors; ask them why they keep their reserves in gold 
 almost wholly instead of silver? Ask them if they are 
 not playing a game in which their motive is, 'heads we 
 win, tails you lose ! ' " 
 
 This hot thrust opened the eyes of some of the Popu- 
 lists present. Could it be possible that any of their most 
 cherished idols were guilty of the "horrible crime" of 
 being bankers? One long- whiskered gentleman, from 
 "way down in Egypt," who had been absent-mindedly 
 squirting tobacco juice on the legs of the man in front 
 of him all day, rolled his quid out of the way of his 
 tongue and shouted: "Don't believe it. 'Taint true!" 
 
 ' 'The report of the comptroller of the currency will 
 confirm my statement," replied the witness; "you don't 
 need to take my word for it, my friend. Just come up 
 here to the platform and read it for yourself. ' ' 
 
 "Wouldn't believe it then," returned the silver crank. 
 "Ben Eckels is a gold bug himself, and you can bet 
 he's got all his facts and figures fixed to give silver the 
 marble heart." 
 
 "Yes," put in Coin, "I gave a pretty strong hint in 
 my article in the Chicago Record of what I thought about 
 'figures produced at Washington.' I don't believe in 
 them." 
 
 "I shouldn't think you would after the way they've 
 used you up," said Commissioner Hobbs, with a grin. 
 "You'll believe in them less before the laboring people 
 get through with you and your theories yes, and the 
 farmers, too, for you've fooled them mostly all." 
 
 "You are right," said Mr. Atkinson. "The fact is, 
 the greater part of the farmers and the workingnien of 
 this country the depositors in the savings banks and 
 
SO UNO MONE Y. 133 
 
 the like have horse sense. They may be rather slow to 
 move. We have been a little too sure that the folly of 
 the silver craze would die of its own corruption. But 
 the people who do possess common sense are find- 
 ing out the trick, and the silver craze is now being 
 stamped out. Then the true question of bimetallism will 
 come up not the false bimetallism under which it is pro 1 
 posed to force a man to take silver when he has been 
 promised gold but a bimetallic international system of 
 coinage, under which there shall be a world's coin made 
 of gold under one name, and a world's coin made 
 of silver under another name whoever names either in 
 any contract or bill of exchange to be called upon to pay 
 that coin, and not to substitute one for another. That 
 would be a true system of bimetallism, and to secure that 
 the international conference ought to be held. ' ' 
 
 Judging from the applause which followed Mr. Atkin- 
 son's closing suggestion for an international agreement on 
 silver coinage it was clear that the audience was by no 
 means hostile to the proper use of the white metal. Judg- 
 ing from the favor extended to every witness who had 
 exposed the idiocy of the United States attempting to 
 adopt free silver coinage, unsupported by the rest of the 
 world, the unanimity of this mixed audience, consisting as 
 it did, of all classes of men irom day laborers to capitalists, 
 from skilled mechanics to members of the learned profes- 
 sions, and from business men conducting their enterprises 
 in a large degree on borrowed capital to bankers, plainly 
 indicated that the vast body of the people would strenu- 
 ously oppose the commission of such national hari kari. 
 
 After the witness sat down there was a whispered con- 
 sultation between the three commissioners, and at its con- 
 clusion Chairman Clench announced that both Commis- 
 
/34 SOUND MONEY. 
 
 sioner Rafferty and himself would like a little more 
 information on a number of points which were not quite 
 clear to them. They proposed, he said, to ask questions, 
 and any gentleman who had the required information 
 would confer a favor by imparting it. Thereupon Com- 
 missioner Rafferty assumed the role of questioner, and it 
 was evident from the drift of his queries that his mind 
 was not yet entirely disabused of the prejudices created 
 by the teachings of Harvey Coin. 
 
 "Isn't it true," he asked, "that the national banks are 
 owned by Wall street, principally ? " 
 
 "It is a most absurd falsehood," replied Colonel 
 Knott. ' ' The owners of the national banks are largely 
 men and women of small means who have put their little 
 savings into bank stocks in order that they may get some 
 income on it. The average holding of stock is only $2,337. 
 There are 287,842 stockholders, and the total amount of 
 national bank stock is $688,642,876. 
 
 "You say 'men and women,' " said Rafferty. "What 
 have the women got to do with banking ? ' ' 
 
 "They own $130,681,494 of the total capital stock, or 
 about one-fifth," was the reply. This seemed to surprise 
 Mr. Rafferty and the audience also. 
 
 "How much stock is there in the savings banks?" 
 asked Commissioner Hobbs. 
 
 "None, ' ' replied Colonel Knott, ' 'in those of the Massa- 
 chusetts type, and they are recognized as the best we have. 
 The money is deposited, carefully invested and the inter- 
 est returned to the depositors. The deposits in 1893 
 amounted to $1,747,961,280 and the number of depositors 
 was 4,777,687 or an average of $365.86, which shows that 
 the depositors are mostly poor people who are trying to 
 save a little for a rainy day." 
 
. 
 
 SOUND MONEY. 135 
 
 "How much is deposited in the national banks?" 
 asked Commissioner Rafferty. 
 
 "In 1893 the average amount was $1,647,017,129, or 
 less than the savings of the poor. There were 1,929,340 
 depositors in the national banks who averaged $853.67 
 .ch," replied the Colonel, who continued: 
 
 In 1873 there were 1,955 national banks, with a 
 total capital of $488,100,000, on which they earned 5.09 
 dividends. In 1894 there were 3,741 national banks, with 
 a total capital of $665,453,000, on which they only earned 
 3.3 per cent dividends. In 1890, while we were at our 
 high tide of prosperity, we had 3,294 national banks, 
 which, on a total capital of $634,773,000, earned 4.27 per 
 cent dividends. It will thus be seen that when times are 
 hard banks earn smaller profits, and also that with a large 
 increase in the number of banks 1,786, or almost 100 
 per cent the profits have been materially reduced. In 
 other words, less interest is charged for the use of money. 
 
 "I want to say that money in bank is far more effect- 
 ive that is: far more active, more actually 'in circula- 
 tion' than money in a man's pocket. It is loaned, taken 
 out and used to pay wages and comes back again through 
 other channels, and is thus kept in constant circulation, 
 like water in the well; whereas, the money that a man 
 hides in his stocking or keeps in his pocket serves one 
 purpose and one only; it gives assurance to that one man 
 that he is not dead broke. There it is like water in the 
 pond. A bank does not increase the amount of money in 
 a community, but it gathers from various nooks and cor- 
 ners small sums that in the aggregate are powerful, and 
 at once this amount of money which before was ineffect- 
 ive, almost useless, becomes the basis of various commer- 
 cial enterprises. The establishment of a bank, therefore, 
 
136 SOUND MONEY. 
 
 while it does not increase the amount of money in a com- 
 munity, makes that money circulate more rapidly. In 
 other words, it makes it more effective. Sinking a well 
 does not increase the water in the earth, but it makes it 
 more easily obtainable. ' ' 
 
 "What effect, in your opinion, would free coinage 
 have on all those millions of savings you have just men- 
 tioned?" inquired Chairman Clench. 
 
 "As Coin has admitted to-day," replied the keen Ken- 
 tuckian, "free coinage would bring us immediately to a 
 silver basis. That would depreciate to one-half the value 
 of all the savings deposited in the national banks, State 
 banks, or savings banks. It would lower one-half the 
 value of all life insurance, it would decrease the purchas- 
 ing power of pensions one-half, and of all fixed incomes; 
 it would make borrowing by the poor difficult and expen- 
 sive, if not impossible; it would advance the rate of inter- 
 est just in proportion as the prices advance, it would 
 check all of those influences which under the name of civ- 
 ilization are making the good things of life abundant and 
 the common things of life beautiful. ' ' 
 
 "I fail to see how you figure that out," said Commis- 
 sioner Rafferty. * 'If it would advance the rate of interest, 
 and the savings of the people were out at interest, the peo- 
 ple who owned the savings would be the gainers by the 
 change. ' ' 
 
 "Has not Coin told you that his deliberate plan is to 
 cut down debts one-half 011 the ground that it now takes 
 two bushels of wheat for the one bushel that was bor- 
 rowed?" asked Col. Knott. 
 
 "Yes, I believe he did say that," replied the puzzled 
 commissioner. 
 
 "Then," said the colonel, "as the peoples' savings 
 
SOUND MONEY. 137 
 
 were loaned out in gold they would be paid back at 50 
 cents on the dollar in silver. ' ' 
 
 ''That's a fact!" exclaimed Rafferty, ''and, by gra- 
 cious, I have some money in a building and loan com 
 pany myself!" His alarmed expression as the truth 
 struck home to him caused a ripple of laughter and he 
 did some very heavy thinking for a few minutes. 
 
 "lyet us see what our debts are and who are our credi- 
 tors," continued the Colonel, "and we have: 
 
 Railroad bonds $6,000,000,000 
 
 State, county and municipal bonds . . 1,100,000,000 
 
 Mortgages on farms and homes 2,500,000,000 
 
 Loans by national banks 2,000,000,000 
 
 Loans by savings banks 2,000,000,000 
 
 Building associations due depositors . 450,000,000 
 
 Other bank loans 1,000,000,000 
 
 National debt 899,313,000 
 
 "Who are the creditors? Are they, as Coin asserts, 
 British and Eastern millionaires ? Nothing of the kind ! 
 
 ' 'The money deposited in building and loan associa- 
 tions is invested in the 2,000 millions of mortgages, most 
 of it due by people in moderate circumstances to others 
 similarly placed. Hence, to reduce the 450 millions of 
 such deposits to 225 millions would simply rob one thrifty 
 class of our people to benefit another thrifty class. Could 
 any sophistry argue this into even a semblance of jus- 
 tice? 
 
 ' 'The United States, county and municipal bonds are 
 debts due by the people. Who are the creditors? To a 
 large extent 4,777,687 depositors in savings banks whose 
 average savings is $365.86 ! They have loaned almost 109 
 millions of dollars to the United States on its bonds, to the 
 
BEADING "COIN'S FINANCIAL SCHOOL.' 
 
138 SOUND MONEY. 
 
 states, counties and municipalities over 500 millions, to the 
 railroads almost 122 millions, on mortgages almost j8o mil- 
 lions, and they have invested 248 millions in other securities, 
 industrial and otherwise! They have over 4.4. millions in 
 bank stocks, and have loaned the banks 88 1-2 millions more! 
 
 1 ' The money loaned by these state and national banks is 
 not owned by Wall street or the British octopus. It comes 
 from the $3,500,000,000 of deposits made day by day 
 by thousands upon thousands of depositors from all classes of 
 citizens! 
 
 "Out of the total mortgage debt of 2}^ billions i^ bil- 
 lions is owed to the humble people who save a little from 
 their wages for an evil day. 
 
 "Mr. Coin and his friends propose to bring on that 
 evil day suddenly by cutting what they have saved in half 
 so that the $270, the average building association deposit, 
 may become $135 and the depositor's next door neighbor, 
 perhaps, who is the borrower, may be released from 
 $135 of his debt of $270! 
 
 "In the same way, that the thrifty mechanic or factory 
 hand, who has toiled hard for his little savings of $365.86, 
 the average savings bank deposit, may be robbed of 
 $182.93 of his poor little scrimpings in order that the 
 Western farmer, who has borrowed the $365.86 on mort- 
 gage may repudiate $182. 93 of his just debt! Would that 
 be honest or right? (Applause.) 
 
 "The favorite American investment of the 'British 
 bloodsucker' for many years has been in our railroads. 
 The total capital stock of these roads is $5,021,576,000. 
 Their funded debt is $5,510,225,000. 
 
 ' 'To change the measure of a commodity does not alter 
 its value. To cut a yard stick in half does not make 36 
 inches of cloth less than 36 inches. If the full yard is 
 
SOUND MONEY, 139 
 
 worth a dollar, as measured in other commodites, when 
 you have reduced your yard stick to 18 inches you will 
 have to pay 200 cents for a true yard of cloth. 
 
 ' 'Therefore, supposing that the railroad stocks are now 
 worth their par value, cutting the dollar to half its present 
 value will simply double the value of these stocks, as 
 measured in the depreciated dollars. That will make the 
 much watered railroad stocks worth $10,043, 152,000. But 
 as the debts of the roads will all be payable at 50 per cent 
 discount, because the 50 cent dollar is to be made legal 
 tender for all debts, public and private, the funded debt 
 would be reduced to one-half, $2,755,115,500." 
 
 As the keen witted newspaper man resumed his seat the 
 audience again broke out in cheers and applause, in which 
 all three of the commissioners joined. RafTerty's free 
 coinage ideas had received a death-blow. 
 
 "Mr. Coin has stated," said Commissioner Hobbs, 
 ' 'that our foreign trade is insignificant and only amounts 
 to four per cent, of the business of the United States. 
 Can any gentlemen tell me how much it amounts to ?" 
 
 "I can," replied Editor Kvans. "Under normal con- 
 ditions we buy of foreign nations about $800,000,000 
 annually and sell them as much more. The amount var- 
 ies. Some years, when we have heavy crops, we sell a 
 great deal more than we buy, and we have extra good 
 times as a result. It is safe, to say, however, that our 
 foreign business amounts to nearly $1,600,600,000." 
 
 "Over a billion and a half," exclaimed Chairman 
 Clench, "and yet he calls that insignificant !" 
 
 "It is more than the entire state and municipal debt of 
 the United States combined; and, in round numbers, over 
 three-fourths of the state, municipal and national debts of 
 our country combined," said the editor. "It is consider- 
 
140 SOUND MONEY. 
 
 ably more than all the coin and bullion, gold and silver, 
 in the United States, and amounts to 9^ per cent of our 
 total trade." 
 
 "How do we pay our half of it ?" asked the big black- 
 smith, who looked puzzled. "If we have to pay in gold 
 we haven't enough gold to come anywhere near it." 
 
 "We don't," replied the editor. "What we sell is 
 offset against what we buy. If we have sold more than 
 we bought the foreigner pays us gold for the difference, 
 and vice versa. If we had free coinage all our gold 
 would leave us within a week and we'd have to pay our 
 balances in silver. Then, for every dollar we owed in 
 gold we'd have to pay two silver dollars our debt of 100 
 millions would become 200 millions, and the same would 
 be the case wherever we have made a contract to pay in 
 gold." 
 
 "So far from ( a war with England' proving 'the most 
 popular war ever undertaken' it would prove the most 
 unpopular and a national calamity. From the commer- 
 cial point of view it would mean the impoverishment of 
 millions of our people. England is a better customer to 
 us than all the rest of the world combined. I/ast year we 
 sent her merchandise of all sorts to the extent of $43 1 , - 
 059,267 and only bought of her $107,372,995; while to 
 the rest of the world we sold $461,081,305 and bought 
 $547,621,627! Any child can see who paid the profits of 
 our toiling masses so far as they came from our foreign 
 commerce. Can farmers and factory hands afford to 
 throw all this away to suit Mr. Coin? 
 
 "In 1873 our foreign commerce was $1,164,616,000 
 with a balance of trade against us of $119,656,000. In 
 1894 our foreign commerce was $1,547,135,000 with a 
 balance of trade in our favor a profit of $237,145,000." 
 
SOUND MONEY. 141 
 
 This concise statement of facts so carefully avoided by 
 the free silver party was applauded as it deserved to be, 
 and Commissioner Clench then took a hand in the pro- 
 ceedings: 
 
 "Looking over the Treasury Reports," he said, "I 
 can't see that we need to make more money that is, 
 more currency, in this country. It appears to me we 
 have plenty without free coinage. ' ' 
 
 "We haven't enough primary money," replied Coin. 
 "What we have is principally paper, and the result is 
 shown in my explosion diagrams on pages 56, 62 and 63 
 of my book. ' ' He had hardly concluded when he found 
 himself being mauled once more by Col. Forrest, who 
 said: 
 
 "Our total money in 1873 consisted of $25,000,000 
 gold reserve and $749,445,611 of paper, worth in gold, 
 July ist, 1873, $647,521,000. 
 
 ' ' We have to-day more than this amount in gold coin 
 and bullion, viz., $693,681,100! 
 
 "We have $513,174,338 in silver coin and bullion, 
 every dollar of it maintained at par with gold, or a total 
 of $1,206,855,4.38 in gold and silver, $4.32,4.09,827 in coin 
 over and above the total money of this country in 1873. 
 
 "In brief: In 1873 we had $25,000,000 of ^ primary 
 money ^ in 1895 we have $693,681,100 of ' { primary' or ^ re- 
 demption' money gold. 
 
 "In 1873 we had a paper currency of $74.9,4.4.5,611, 
 supported by $25,000,000 in gold and the confidence of our 
 own people at a discount of 13^ per cent. 
 
 "In 1895 we have a paper currency of $706,120,000 sup- 
 ported by $693,681,100 in gold; also silver bullion and coin 
 with a market value of $256,587,000 in gold and the im- 
 plicit confidence of the whole world at par. 
 
142 
 
 SOUND MONEY. 
 
 ' ' We have, therefore, sufficient 'primary money' to redeem 
 every dollar of our paper currency with too cents in gold, 
 and then have 14.4., 14.8,000 gold dollars left over. 
 
 ' 'So far as the volume of currency is concerned we had 
 in 1873 $18.58 per capita in paper, worth $16.05 * n gld. 
 We have now $35.44 at par, a more than ample amount as 
 compared with the per capita currency of the other great 
 nations. England handled a total business, domestic and 
 foreign, in 1890, of $13,256,346,000, with a total currency 
 f $793> 2 39>5 scarcely more than our gold, of which 
 $603,446,000 was coin and $189,793,500 was paper. 
 France had a total currency of $2,155,859,500, of which 
 $559,647,500 was paper and $1,596,212,000 was coin, to 
 carry on a total trade of only $8, 136,788,000. We had in 
 1890, $2,121,794,000, with $1,012, 232,000 of it paper, and 
 $1,109,562,000 in coin, and did a total trade of $15,558,- 
 200,500 the largest in the world. But, it will be ob- 
 served, we used 286 per cent more currency than England 
 had to carry on 16 per cent more trade than she. Here is 
 a table showing these facts in convenient form and in 
 greater detail: 
 
 TRADE AND MONEY OP FOUR LEADING NATIONS, 1890. 
 MULHALI,. 
 
 Country. 
 
 Total Money. 
 
 Paper Money. 
 
 Coin. 
 
 Foreign trade. 
 
 England .... 
 Unit'd States 
 France. 
 Germany. ... 
 
 793,239,500 
 2,121,794,000 
 2.155,859,500 
 1,158,227,000 
 
 189,793,500 
 1,012,232,000 
 559,647,500 
 345,521,500 
 
 603,446,000 
 1,109,562,000 
 1,596,212,000 
 812,705,500 
 
 3,601,210,000 
 1,557,280,000 
 1,513,481,500 
 1,786,005,500 
 
 Country. 
 
 Domestic trade. 
 
 Total trade. 
 
 Trade 
 per capita. 
 
 Money per 
 capita . 
 
 England..'. 
 U't'd States 
 France 
 Germany . . 
 
 9,655,136,000 
 14,000,920,500 
 6,623,306,500 
 7,324,082,500 
 
 13,256,346,000 
 15,558,200,500 
 8,136,788,000 
 9,110,088,000 
 
 347.95 
 
 248.19 
 214.82 
 193.68 
 
 21.41 
 34.06 
 57.42 
 24,33 
 
SOUND MONEY. 
 
 "So long as there is sufficient of the medium of ex- 
 change to effect exchanges," continued the witness, "a 
 redundancy of that medium can do no possible good. 
 Within a few months we have seen our treasury more 
 than once brought face to face with a suspension 
 of gold payments, and a sudden fall to a silver basis 
 through the manipulations of unpatriotic combinations 
 of capital. By forcing the redemption of greenbacks 
 and treasury notes in gold, they so depleted the reserve 
 of 100 millions that to protect the credit of the Nation 
 the administration was forced to purchase gold on the 
 most favorable terms that could be obtained at short 
 notice. 
 
 "Nor was this made possible by the scarcity of gold in 
 the country. We had on July i, 1894, $627,293,201 in 
 gold coin and bullion, but owing to a faulty financial sys- 
 tem this vast amount could not be made available, so the 
 object of the raid was secured. 
 
 "We do not need more currency. If that would im- 
 prove business it would have improved it in France and in 
 this country; yet such is not the case. We had enormous 
 inflation in 1873, with a paper money per capita of $18.58, 
 which brought on a panic of serious dimirisions, from 
 which it took the country five years to recover. We would 
 be in a better financial condition with a considerably 
 smaller volume of money. In 1878 we had $15.32 in cir- 
 culation and only $1.3 1 in the treasury. Then the ex- 
 pansion of the currency began, in obedience to the clamor 
 of the free coinage leaders and greenbackers, who per- 
 suaded the people that more money in circulation would 
 raise values. The currency was expanded, but values 
 continued to fall and the theory of these gentlemen was 
 disproved by the results of experience. 
 
144 SOUND MONEY. 
 
 "By 1882 we had $2 8. 20 per capita, and of that amount 
 circulation was only able to take up $22.37, while $5.83 
 slept in the treasury. In 1885 the per capita had increased 
 to $32. 37, but the needs of the country only demanded 
 $23.02, so $9.35 lay idle. In 1890 we had $34.24 per 
 capita, but $22.82 proved sufficient and $11.42 lay idle. 
 In 1894 we had $35.44 per capita and $24.33 proved 
 ample for the people's needs, while $i 1. 13 remained in the 
 treasury. These figures are all given in the Treasury 
 Report for July i of each year. It therefore appears that 
 about $25.00 per capita is the largest volume of currency 
 we require. 
 
 "From 90 to 95 per cent of all our commercial trans- 
 actions are settled without the use of any currency what- 
 ever by means of bank checks, drafts, bills of exchange, 
 etc. , and by recent statistics, collected by the Comptroller 
 of the Currency, it appears that 50 per cent of our retail 
 transactions are settled in the same way. In 1892, when 
 we were at the high tide of prosperity almost 61 billions 
 61 thousand million dollars of business transactions were 
 settled by this means. In 1894., while times were hard, 4.5 
 thousand million dollars worth of business was thus trans- 
 acted without the use of a single dollar of currency. 
 
 "Congress should lose no time in reducing the volume 
 of our paper currency. It is beyond question that most 
 of the gold coinage of this country is hoarded, while it 
 should be freely passing in and out of the treasury to assist 
 in carrying out the financial policy of the country. 
 
 "On Oct. 2, 1894, $197,000,000 in gold was held in 
 reserve by the national banks alone, to say nothing of state 
 banks and other fiduciary institutions and the secret 
 hoards of the people. All the gold required by the treas- 
 ury could be obtained from our own people by the issuance 
 
SOUND MONEY. 145 
 
 of long term, low interest bearing gold bonds in denomina- 
 tions of $50, $100 and $500, to be offered to the people for 
 gold. By this means the $346,681,000 of greenbacks 
 might be gradually retired and the country would never 
 feel it, especially in view of the fact that at no time since 
 1878 has there been less than 400 millions of idle money 
 in the treasury, nor since 1888 less than 600 millions. 
 The amount has varied from 697 to 759 millions during 
 the past five years. With this 350 millions of demand 
 notes out of the way a serious menace to the treasury 
 gold reserve would be removed, and the reserve itself 
 could be enormeously strengthened beyond any possi- 
 bility of its being effected by manipulations t>r attempts 
 to 'corner gold. ' 
 
 "That cube of gold is troubling me," said Commis- 
 sioner Rafferty. 
 
 "Then don't let it trouble you any longer," replied 
 Editor Evans. "I suspected Coin's figures on general 
 principles and I have been investigating the matter with 
 the aid of his favorite authority, Mulhall. That gentle- 
 man states on page 310 of his really invaluable Dictionary 
 of Statistics that in 1890 the world's stock of gold coin and 
 bullion amounted to 8, 820 tons, valued at ^1,213, 000,000. 
 Since then the world has produced 875 tons, in round 
 numbers. Deducting Mulhall' s percentage for arts and 
 manufactures, 45 per cent., that leaves 481 tons to be 
 added to the world's stock or a total of 9,301 tons of gold 
 in 1893, which gives us a total stock, of $6,249,000,000111 
 gold instead of $3,900,000,000 as Coin states. Of course, 
 his object in making gold seem as scarce as possible is 
 apparent to everybody yet he wouldn't mislead any one 
 for the world, oh, no! 
 
 "Now, making the calculation for his cube on his own 
 
146 SOUND MONEY. 
 
 plan we find, in round numbers, but on the safe side, 
 that instead of 9,796 cubic feet of gold the world has 15,697 
 cubic feet. Of course a little matter like 5,901 cubic feet 
 of gold at $398,098 a cubic foot is a mere trifle to the 
 airy Mr. Coin! You therefore see that a cube 25x25x25 
 feet would still leave the insignificant sum of $28,663,056 
 in golden cubes a foot each way to find some other place to 
 stop at. ' ' 
 
 Laughter and applause followed this new exposure, 
 and when the house was again quiet Commissioner Hobbs 
 inquired whether Mr. Evans had also investigated the 
 66-foot cube of silver which Coin alleged was all of that 
 metal in the -world. 
 
 ''Oh, yes, I've looked that up, too," replied Mr. 
 Evans, "and find, as usual, that Coin, not to be mealy 
 mouthed about it, has lied outrageously." Coin winced 
 and looked as if he would like to take a walk. 
 
 "Coin says on page 104 of his book," continued the 
 editor, pitilessly, ' 'that the Director of the Mint states in his 
 report for 1890 that there was in the world $3,820,571,- 
 346 in silver coin and bullion. Do I quote you correctly, 
 sir?" he asked turning to Coin. 
 
 ' 'You do. That's what I say in the book. ' ' 
 
 "I have no doubt you also quote the same figures in 
 your 'invaluable hand book,'" continued the editor. 
 "Now, Mr. Rafferty, will you please turn to page 180 of 
 the Treasury Report. What is the head line on that table?' ' 
 
 "Monetary systems and approximate stocks of money 
 in the aggregate and per capita in the principal countries 
 of the world," read Rafferty. 
 
 "You will note that it only claims to give the princi- 
 pal countries not the whole world. Does it say anything 
 about bullion?" 
 
SO UND MONE Y. 147 
 
 "Not a word," replied Rafferty. "It only gives the 
 coin and paper money." 
 
 "And bow much silver coin does it say there is in the 
 world?" 
 
 "$4,055,700,000," said Rafferty, and Coin looked 
 wicked. 
 
 "You note," said the editor, "that the Director of 
 the Mint gives the coin alone at over four billions, while 
 Coin makes him give both coin and bullion at 200 millions 
 less than that amount. Now let's see what Mulhall says. 
 Turn to pages 309 and 310 of his dictionary. He there 
 states that the world's stock of silver coin and bullion in 
 1890 was 165,000 tons valued at ^1,213,000,000, or in our 
 money $5,919,440,000. He further states that only 53 
 per cent of this vast stock of silver was in coin. 
 
 "Since that time the world has produced 18,826.61 
 tons of silver which, at the average market price of each 
 year, was worth $106,291,078. Deducting for arts and 
 manufactures, as directed by Mulhall, 27 per cent, that 
 leaves $287,379,582 to be added to the world's stock of 
 silver, or a total of $6,190,444,082 instead of $3,820,571,- 
 346 as falsely stated by you, Mr. Coin, in that 'invaluable 
 hand book' of yours. 
 
 "But let us take it in tons, and now for your cube. 
 Instead of there being 282,085 cubic feet of silver in the 
 world if that were the total stock nobody would raise any 
 objection to free coinage at 16 to i, I can tell you, the 
 correct quantity according to Mulhall 's statement in tons 
 and with the production of 1891-3 figured as stated, is 
 409,574 cubic feet, or 31 per cent more. 
 
 "Increase your cube from 66 feet each way to 74 feet 
 each way and there will be enough cubic feet left over to 
 give you $167,471,050. If you had that much money you 
 
148 SOUND MONEY. 
 
 wouldn't need to invent statistics for a living," and with 
 that thrust the editor sat down again. 
 
 In an instant the commotion in the hall was something 
 terrific. Yells, groans, cat calls, hisses and howls of 
 rage burst forth as if seven hundred thousand devils had 
 snddenly been let loose. The noise made by 409,574 
 cubic feet of cats suddenly let loose in tophet with their 
 claws clipped would have been sweet music compared 
 with the row those men kicked up. 
 
 They had been honestly deceived into believing in a 
 false theory by a dishonest charlatan who, as was now 
 quite evident, was not troubled with any such thing as a 
 conscience. 
 
 When the exposure of his alleged statistics first began, 
 those who had been convinced by his specious arguments 
 and seemingly irrefutable figures made light of what they 
 sincerely believed might be unwitting errors. But as the 
 testimony went on knocking away prop after prop upon 
 which his whole argument was built all men of intelli- 
 gence perceived that the charitable theory of accident 
 must be abandoned in the presence of the overwhelming 
 evidence of deliberate design. 
 
 In not one single instance had an error been found 
 which told against the theory of unlimited coinage of sil- 
 ver; on the other hand there was not a single alleged sta- 
 tistical fact of strategic importance in the battle he was 
 waging which had not been found to be either unfairly 
 stated, recklessly distorted or absolutely and willfully 
 false. 
 
 Therefore, the intelligent men whom he had with 
 fraud and deception deluded into adopting his views and 
 fighting under his banner were now mad with rage; and 
 had he not been protected by his intellectual opponents on 
 
SO UND MONE Y. 149 
 
 the platform there is no doubt that he would have been 
 roughly handled. As it was, he shivered and trembled 
 like a whipped cur and, so far as it was possible, hid 
 himself behind the men whom he in his book had vilified 
 and misrepresented to an extent that under a less liberal 
 form of government than ours might have been deemed 
 criminally libellous and punished with a term on the 
 treadmill. 
 
 After a vigorous use of the gavel for several minutes 
 Chairman Clench at length succeeded in restoring some 
 semblance of order; and in a brief speech he urged his 
 hearers to be patient. Instead of harm being done, he 
 said, by the statements of Coin he was satisfied that ten 
 men would be saved from folly for every one who had 
 thrown away his belief in sound money to worship at the 
 silver shrine- Every man who was brought back to the 
 path of national righteousness by the full publication of 
 the facts as developed before Labor's Commission on Coin- 
 age would go forth as the most enthusiastic and best 
 equipped of missionaries among those of his fellows who 
 still clung to the delusion and bring them tenderly and 
 lovingly back into the honest money fold. 
 
 Then the disorder began again. 
 
 At this juncture the big circus man jumped up on his 
 chair and shouted: 
 
 "Let him alone, boys I know he's fooled you, but 
 I'll bet a silver dollar that he's feeling worse over it this 
 minute than you are. ' ' 
 
 A glance at the cowering figure on the platform was 
 sufficient to point the humor of the big fellow's remark 
 and a roar of laughter went up, which cleared the atmos- 
 phere. In a moment, instead of an infuriated mob, the 
 audience became once more a typically good natured 
 
150 SOUND MONEY. 
 
 American crowd. Taking advantage of the lull, Editor 
 Evans resumed his argument. 
 
 ' 'The opening remark of the appendix to Mr. Coin's 
 book," he said, * 'states that he was never asked during 
 his mythical lectures to answer the proposition of the 
 over-production of silver, and that under-production was 
 now conceded by every one who had investigated it. 
 
 "I am one who has investigated the subject thor- 
 oughly. 
 
 "Starting with the year 1600 the world had 23,000 
 tons of silver. By 1700 this increased to 45,000 tons, or 
 96 per cent. By 1800 the quantity was 88,000 tons, again 
 96 per cent. In the next 48 years the quantity had 
 grown to 1 13,000, or 19 per cent. By 1880 it was 145,000 
 tons, or 22 per cent in 32 years. By 1890 it was 165,000, 
 and by 1893 tne quantity was 178,745 tons, or an increase 
 of 215 per cent in 100 years. 
 
 ' 'This increase was out of all proportion to the increase 
 of the world's population, for it must be remembered that 
 the silver produced does not disappear, but remains and 
 accumulates, only 27 per cent being used in arts. Hence, 
 the time comes when the demand fails to keep up with 
 the supply. That time has arrived, as the figures for the 
 last three years will show. The world's total production 
 was 18,828.61 tons. Of this 13,730.77 tons was coined 
 and manufactures took 5,083.61 tons. This apparently 
 accounts for 18,814.38 tons, leaving a balance of 14.03 
 tons. But in the meantime there had been purchased by 
 our government 7,028.11 tons, of which only 1,241.72 
 tons had been coined up to Nov. i, 1894, and there was 
 left on hand 5,783.73 tons of silver, simply because this 
 Nation could not assimilate such an enormous amount of 
 silver coin. We had become saturated with coin. Mean- 
 
SOUND MONEY. 151 
 
 while, under the enormous increase in production and the 
 uncertainty of the demand from the Orient, in particular, 
 the price fluctuated from $1.36 per ounce in 1859, with a 
 constantly downward tendency. It never again reached 
 $1.36. It remained at $1.33 until 1865, and $1.32 until 
 1872. By this time the great silver strikes were in full 
 blast, and better methods of extracting the metal from its 
 ores were being used. In 1873 the price was $1.29, in 
 '74 $1.27, in '75 $1.24, when the production in this coun- 
 try alone had risen from 4,500,000 ounces in 1862 to 35,- 
 750,000 in 21 years, when it was 49 per cent of the total 
 production. In 1877 the price had dropped to $1.20, and 
 even the passage of the Bland act in the following year 
 failed to prevent a further fall to $1.15. It then came 
 down gradually to $1.06 in 1885, 93 cents in 1889 and 
 received a boost in 1890 by the passage of the Sherman 
 act, when it rose to $1.04. But the old-time Oriental de- 
 mand had departed, and even the purchase of 2, 250 tons a 
 year did not save silver from dropping to 98 cents, 87 
 cents, 78 cents and 63 cents in three years. We were 
 quickly glutted with silver dollars, and have nearly 6,000 
 tons of bullion lying idle in the treasury vaults. India, 
 which coined 4,013 tons in 1891-3 is also glutted and has 
 closed her mints. 
 
 ' 'China needs about 200 millions of dollars as a token of 
 regard to Japan. This government has the best part of 
 6,000 tons of useless metal, and we had better get rid of it 
 as a job lot; for with our own demand, and India's, cut off, 
 and our silver miners so insane that they will mine metal 
 which costs $2.00 an ounce, or 'even more,' to quote 
 Mr. Coin, for 63 cents, I fail to see what is going to be 
 done with the almost 7,000 tons a year the world is 
 producing. 
 
152 SOUND MONEY. 
 
 * 'To say that the coinage demand would put the metal 
 back to its old value, if we should open our mints to it, is 
 an absurdity on its face in the light of the.se facts. I 
 very much doubt if concerted action on the part of the 
 whole world would have any better effect; for it is notori- 
 ous that our own mines, if worked to their full capacity, 
 could treble the present output of the world inside of two 
 years. And they would, too, if the nations would all coin 
 their bullion into dollars or exchange it for gold at a 16: i 
 ratio. ' ' 
 
 As the witness concluded the circus man arose and 
 said: 
 
 "My name is Reuben Haye, and the boys all call me 
 ' Hey Rube' because I travel with the red wagons. " " Plat- 
 form," shouted the crowd and the big fellow obeyed the 
 command. 
 
 "You may think it's queer for a plain man like me to 
 take an interest in this thing but I've been studying it 
 hard," and with that he pulled a copy of Coin's book out 
 of his pocket. The book was well thumbed and stuffed 
 with scraps of paper scribbled over with manuscript. 
 
 "Now, he says here," Hey Rube continued, "on page 
 119, that this country owes in various kinds of ways 40 
 billions of dollars, and that the whole of the property in the 
 United States is only 24 billions and a half, so if what he 
 says is true we're a ruined community. We're so bank- 
 rupt that there isn't a bit of good ever trying to get sol- 
 vent again. It means a debt of $597 for every man, 
 woman and child in the United States. Nobody would 
 take any stock in that except a man gone clean luny on 
 Coin and the silver craze. 
 
 ' 'But the census, which he pretends to quote, says the 
 true value of all our property is over 65 billions. Do yon 
 
SOUND MONEY. 153 
 
 see what a reckless liar he is?" Again the audience 
 howled and applauded. 
 
 "L,ook at the way he 'estimates' it. He puts in 
 'overdue accounts' to the amount of five billions five 
 thousand millions, or $74.62 per capita. Most people 
 would have a fit if anybody told them they could get a 
 chance to run in debt that much. It's rubbish, that's 
 what it is! 
 
 "Then look at what he allows the pawnbrokers one 
 thousand million dollars. He wants us to believe that 
 each of us, man, woman and child, owes $14.92 to our 
 uncle. I'd like to know where we got all the property 
 that we've put up the spout. It must have cost, retail, 
 when new at the very least five thousand millions five 
 billion dollars, or our uncles couldn't have loaned any bil- 
 lion on it. They're not doing business on any better basis 
 than 20 per cent of the retail price, and not once in a 
 dozen times will they give you that much. 
 
 "I know. I've had to soak my watch more than once, 
 for all I've got $40,000 worth of property. Those pledges, 
 then, cost the people $74.62 apiece, all around. I'll bet 
 Coin a new hat that I can show him half a million people 
 in this town who never owned $74 worth of property at 
 one time in their lives; and half a million more who were 
 never inside a pawnbroker's shop. 
 
 "But the thing that puzzles me is, where did these 
 pawnbrokers get that billion dollars to loan out? There 
 are 34 principal cities in this country. There are 60 
 pawnbrokers in Chicago, 75 in New York, 60 in Boston, 
 20 in St. Louis, 20 in Frisco, 20 in New Orleans, we'll 
 say, and to lump it and do the square thing by Coin we'll 
 say there's i ,000 of them in the whole country. Of course 
 you couldn't find that many if he'd give you all the sil- 
 
154 SO UND MONE V. 
 
 ver he forgot accidentally on purpose to put into that 
 light-weight cube of his. 
 
 "But, anyway, say there are 1,000 pawnbrokers. I 
 want to know where they got the billion dollars to loan 
 out? That would mean a million dollars apiece. Think 
 of it! Your uncle has a million dollars loaned out and 
 of course more, besides, to jrun the business from day 
 to day. 
 
 -"I did think Coin was some as an inventor of statistics, 
 but as an estimater he comes under the wire before the 
 others get into the stretch. He outclasses Baron Munch - 
 ausen and Joe Mulhatton. To quote my friend, Keogh, 
 the horse reporter: 
 
 " "Thefiblets 
 Of his giblets 
 
 Knock old Ananias out. ' 
 
 ' 'Well, he goes on and loads us up this way. 
 
 "Private debts, $14.92 apiece. Maritime debts, one 
 billion. Say, where is our American merchant marine, 
 anyway? I didn't know we had any till I read this. 
 Surely he can't mean that our inland lake trade, coasting 
 trade and fishing industry ever got people with a billion 
 soft enough to loan it on a plant not worth 200 million, 
 all told? 
 
 ' 'Then, just by way of making good his rash assertion of 
 a 40 billion debt, or else because he loves to invent things, 
 he claps on four billions more for overdrafts, judgments, 
 taxes and any other- little items that he thought might get 
 away from him while he wasn't looking, and so tacks on 
 another $59. 70 a head. Then he sticks on$i i . 91 a head for 
 ' increase, ' estimating the ratio at the same rate as during 
 the 10 years from i88i-'9O, when everything was booming 
 
SOUND MONEY. 1,5 
 
 to beat the band. He knows well enough that the strings 
 have been drawn tighter and tighter the last three years, 
 until a man would hardly give his own grandma credit for 
 a bar of soap. 
 
 "This is the rot that made me tired to start with. I 
 was a free silverite myself till I read Coin and he set me 
 to thinking. The more I read and thought the more fool- 
 ishness I found out, till I made up my mind that if any 
 cause needed bolstering up with lies and fraud it must be 
 a mighty bad cause. I didn't have to read any gold bug 
 literature to get my bearings. I just found out where I 
 was at for myself, and I've made up my mind to vote 
 against free silver if I had to vote for George Francis 
 Train to do it!" and with that the good man lurched 
 heavily over to the table and shook hands with the com- 
 missioners and witnesses, introducing himself as "Hey 
 Rube from Canvastown. ' ' 
 
 The commission then adjourned. 
 
156 SOUND MONEY. 
 
 CHAPTER V. 
 
 HIGH WAGKS AND I<OW PRICES. 
 
 Old Sol himself smiled when he emerged from his 
 morning bath in L,ake Michigan, as if he had been per- 
 mitted a glimpse into the immediate future and could 
 already see the triumph of Truth, scheduled by Fate for 
 the fifth session of Labor's Commission on Coinage. 
 
 At the close of the second session in Plasterer's Hall, 
 the crowd on the stairway and in the street had exceeded 
 in size the audience inside. In order that all who desired 
 to witness the greatest battle of the series, from the stand- 
 point of the laboring man, mechanic, manufacturer, farmer, 
 trader, in fact every class of the community the war of 
 wages and of prices, the Honest Money I/eague had placed 
 the Auditorium at the disposal of Labor's representatives 
 for the following day. 
 
 Hours before the time announced for beginning the 
 proceedings the doors of the great theater were besieged 
 by a crowd which completely blocked Congress street and 
 overflowed onto Wabash and Michigan avenues. By 9 
 o'clock the crush was almost equal to the one which oc- 
 curred in the same vicinity during Chicago Day at the 
 World's Fair. At 9:30 o'clock, when Manager Mil ward 
 Adams, of the Auditorium, attempted to reach his office, 
 even his splendid physique availed him nothing against 
 the good natured turbulence of the mob, and he found 
 himself tossed about hither and yon as if he had been a 
 feather. He was obliged to give up the attempt, and 
 finally gained an entrance through the stage door. 
 
SOUND MONEY. 157 
 
 When at length the doors were thrown open it seemed 
 as if the vast building's capacity for swallowing up a 
 crowd had become suddenly limited, and after every inch 
 of standing room, even, was occupied, enough men to fill 
 Battery D still found themselves outside. Within, mill- 
 ionaires and mechanics, lawyers and laborers, ministers 
 and merchants, physicians and politicians, bankers and 
 bookmakers found themselves rubbing elbows with each 
 other on the ground of common interest. 
 
 Great public questions make strange companionships. 
 The mere announcement that wages and the fall in prices 
 would be discussed; in other words, that 1 the silver ques- 
 tion in relation to the private pocketbook, would be the 
 subject, had been sufficient to draw together this hetero- 
 geneous multitude. 
 
 The platform was crowded with notabilities many of 
 them men whose names were known beyond the confines 
 of their state and country. Mayor George B. Swift, Col. 
 George R. Davis, Wm. T. Baker, president of the Board 
 of Trade; Secretary Stone, of the same body; Senators 
 Stewart, Jones, Allison, Cameron, Morgan and Vest, 
 Congressmen Joe Sibley and "Silver" Bland, Ben F. 
 Richolson, Gov. Altgeld, Joseph Medill, Wm. Penii 
 Nixon, Secretary Hinrichson, H. H. Kohlsaat, John R. 
 Wilson, Editor "Clint" Evans, James W. Nye, Judges 
 Ewing, Tuley, Tuthill, Goggin and Hannecy, R. W. 
 Knott of Louisville, Clarence Darrow, big ex-Sheriff 
 Matson, Dr. Holmes, ex-Judge McConnell, ex-Mayor 
 Hopkins, Robert Emmet Burke, "Doc" Jamieson, Slason 
 Thompson and others, exchanged greetings and circulated 
 among each other in a manner to give no hint that a 
 great political battle was to be practically decided by the 
 outcome of that day's debate, 
 
158 SOUND MONEY. 
 
 Beside the tall form of the great financier, Senator 
 Sherman, stood that modern ''little giant" William H. 
 -Mason, "the long and the short of it" on this occasion. 
 In a group near the center of the stage stood Senator John 
 M. Palmer, President Robbins, of the Honest Money 
 League, "Jake" Richards, Sigmund Zeisler, Adlai T. 
 Ewing, Lyman J. Gage, Professors J. Lawrence Laughlin 
 and D. McLean Hardy of the University of Chicago, 
 John R. Walsh, B. G. Keith, N. W. Harris, and Dr. 
 Thomas, in earnest conversation. Ex-Congressman 
 Harter of Ohio and Senator David B. Hill of New York 
 formed a little group, with Edward Atkinson, the noted 
 political economist of Boston. 
 
 And in the front row, conversing with the silver sena- 
 tors, was Mr. Harvey Coin, with a smile as if of confident 
 anticipation on his lips, but with a feeling of depression 
 deep in his heart. This day he would fight in his last 
 ditch and he secretly dreaded the outcome. 
 
 As the hour of 10 o'clock struck, the tapping of the 
 gavel commanded silence and those on the platform im- 
 mediately took their seats. Before them stretched a sea 
 of faces from inside the orchestra railing away up to the 
 very roof. As it was noticed that those on the platform 
 were seating themselves the hubbub of conversation sud- 
 denly ceased and an expectant hush pervaded the most 
 magnificent audience, in point of both members and intel- 
 ligence, that ever thronged the Auditorium. 
 
 ' 'The meeting will please come to order, ' ' said Chair- 
 man Clench, and the audience shouted, ''louder." Raising 
 his voice the big blacksmith continued: "This is the most 
 magnificent meeting I ever saw and I am proud to be its 
 presiding officer. We are here to-day to discuss the sub- 
 ject of wages and the fall in prices, and all citizens are 
 
SOUND MONEY. 159 
 
 invited to ask questions or make statements or arguments 
 touching the questions under discussion. We seek the 
 truth and only by hearing both sides shall we succeed in 
 finding it. ' ' 
 
 At this moment, Coin, who had previously left the 
 stage, reappeared at the ( 'prompt" entrance, followed by 
 two men carrying a large blackboard which they secured 
 in the center of the stage, close to the foot lights, with 
 theater braces, under the direction of Master Carpenter 
 Barstow. Upon the blackboard had been chalked what 
 appeared to be a table of the prices of wheat, cotton and 
 silver from 1872 to 1893, an ^ it was announced in large 
 letters that these were the average export prices for the 
 years given. 
 
 "This," said Coin, "gives you the decline in wheat, 
 silver and cotton since 1873. I say 'decline,' but it would 
 be equally true for me to say that these figures register 
 the rise in the purchasing power of gold. Property is 
 standing still and gold is going up. 
 
 "It is a common thing now to hear the expression 
 that the silver in a silver dollar is only worth 60 cents, or 
 fifty cents, as the case may be at the time. When we 
 had a double standard and silver was the unit, such a 
 thing as its being worth more or less than a dollar was as 
 impossible as it would be now for the gold in a gold dollar 
 to be worth more or less than a dollar. Had gold been 
 destroyed as primary money by the same nations and sil- 
 ver made the standard, we could have had gold in the 
 form of token money to-day worth, say, fifty cents on 
 the dollar as measured in silver. ' ' 
 
 "Do you know anything about the year 1864?" in- 
 quired Jacob W. Richards, formerly South Town assessor 
 for many years. 
 
160 SOUND MONEY. 
 
 "I know everything," replied Coin. 
 
 "That was while silver was still primary money, as 
 you claim?" pursued Mr. Richards. 
 
 "It was." 
 
 "Greenbacks were at a discount and much below 
 silver, were they not?" 
 
 "They were." 
 
 "Or silver was at a premium compared with green- 
 backs?" 
 
 "It doesn't matter which way you put it. Silver was 
 worth at least its unit value, 100 cents in the dollar, and 
 greenbacks were away below par. ' ' 
 
 "And how much was gold worth?" 
 
 "Gold was at a premium too." 
 
 "Wasn't it at a lower premium than silver?" 
 
 "I believe it was." 
 
 "Silver was worth, in gold, $1.03 for 371^ grains, 
 whether coined or uncoined. Therefore, as you claim 
 we had a double standard, why wasn't the silver in a 
 silver dollar, as decreed by Congress, exactly equal to the 
 gold in a gold dollar? How could the unit be worth 
 more than unity?" And Coin said he would think about 
 that curious phenomenon. 
 
 "This table," he went on rapidly, although his voice 
 was drowned by the titter of laughter which ran through 
 the audience, "demonstrates beyond a doubt that silver 
 and other staples have fallen in price or, rather, that gold 
 has appreciated, and therefore that silver is the best stand- 
 ard of value." 
 
 "Why so?" asked H. H. Kohlsaat, who, in his newly 
 acquired paper, the Times-Herald, was making a magnifi- 
 cent fight for sound money and was keen to pick out the 
 fallacies of Coin's reasoning. 
 

 SO UND MONE Y. 161 
 
 "Because silver has remained stationary, while gold 
 has gone steadily up. ' ' 
 
 "Didn't the price of silver fluctuate before 1873," 
 continued Mr. Kohlsaat, "the same as any other com- 
 modity?" 
 
 "No. It was gold which fluctuated," insisted Coin. 
 
 "Oh, I see," said Mr. Kohlsaat thoughtfully. "Sup- 
 posing that the prices of silver and 2 1 other commodities 
 in the list change in a single day, some advancing and 
 others decreasing, it is really not the prices of commodities 
 which have changed, but the price of gold as measured 
 in the commodities. What a busy time gold must have 
 of it!" 
 
 This palpable absurdity was received with laughter, 
 and Coin, evidently nettled, said: 
 
 "You won't argue the way I want you to, Mr. Kohl- 
 saat." 
 
 "Not while I retain my reason," was the sententious 
 reply. "All values are merely relative. They have been, 
 they are and they will continue to be measured in gold. ' ' 
 
 ' 'This is the proper way to look at the matter, ' ' per- 
 sisted Coin, "as I say on page in of my book: 
 
 "If we were to double the weight of the gold dollar 
 by putting 463% grains in it, we would thus reduce the 
 value of all the property in the world, as expressed in dol- 
 lars except debts, as they call for so many dollars. If we 
 were to cut the gold dollar in two and make it i ly 6 ^ grains 
 we would thereby double the value of all the property in 
 the United States except debts. That's the way we rea- 
 son it." 
 
 "I have heard of persons at Elgin and Kankakee who 
 reason in much the same way," replied Mr. Kohlsaat. 
 "By the same process all a farmer has to do to get rich is 
 
162 SOUND MONEY. 
 
 to cut each acre of his land in half and call each half an 
 acre. Instead of 200 acres he has 400 and, of course, 
 raises double the crop he grew before. 
 
 "Then he calls in his neighbor and sells him 200 acres 
 because his 4<x>-acre farm is too big for him to work. By 
 and by he gets greedy and subdivides again, goes through 
 the same motions and again sells 200 acres, always, on 
 your 'reasoning, ' getting as big a crop as he did with the 
 original 200 acres. A third time he takes what is left, 
 by now reduced to 50 acres, measured on the silly old 
 plan in use before you showed him how to get rich so 
 easily, and cuts it again in half, making another 400 
 acres, and sells half of it. He would then be able to re- 
 tire from business and let his boys turn the 25 acres into 
 400, then 12 ^ acres into 400, then the 6^ acres into 400, 
 each time selling 200 acres, until they got it down to a 
 fraction of an acre. Of course there is no doubt in your 
 mind that people would pay the original price per acre, 
 no matter how many times the subdivision might be made. 
 How strange it is that nobody ever thought of this simple 
 plan for growing rich until you were kind enough to point 
 it out!" 
 
 This caused another laugh at Coin's expense, and he 
 was about to leave the stage in a huff when Chairman 
 Clench reminded him that he had merely exhibited 
 his table of figures without drawing any conclusions 
 from it. 
 
 ' 'Those figures, sir," said Coin with chilling dignity, 
 ' 'present the best possible proof of the great truth which 
 I have discovered and dwelt on in my book the analogy 
 between silver and all other commodities. As silver 
 rises, so commodities rise. As silver falls so fall com- 
 modities. This is a law of nature which is not easily ex- 
 
SOUND MONEY. 163 
 
 plained, but by means of price tables like this, covering 
 periods of years, I have been able to demonstrate the in- 
 fallibility of my theory. Look at the blackboard, gentle- 
 men. Note the prices in 1872 wheat a dollar forty, 
 cotton, eighteen cents, and silver a dollar thirty-two. 
 Then look at 1893, after twenty years of demonetization, 
 and see how the prices have exactly kept step with silver 
 in its downward course wheat sixty-three cents, cotton 
 seven cents, silver seventy-two cents. -Take the next two 
 years at the top and bottom of the list, 1873 wheat a 
 dollar twenty-five, cotton eighteen and two-tenth cents, 
 silver a dollar twenty-nine. 1892 wheat eighty cents, 
 cotton eight and seven-tenth cents, silver eighty-six cents. 
 This is one of the strongest arguments for silver as a 
 money metal its inspired sympathy for other commodities. 
 Look at it again in 1884 wheat a dollar seven, cotton 
 ten and one-half, silver only a dollar and eleven cents. 
 Notice what followed in the next year wheat eighty-six 
 cents, cotton ten and six- tenths, silver a dollar six. The 
 theory is perfect. ' ' 
 
 "I have my doubts about those figures," said Coin's 
 most unmerciful critic, Editor Clinton Evans, of the 
 Economist. 
 
 "You don't need to," retorted Coin. "I took them 
 from the report of the Department of Agriculture. ' ' 
 
 ''While the department wasn't looking?" asked 
 the editor drily. "I notice that you have eighty- 
 five cents as the average export price of wheat in 
 1892, and I happen to remember that wheat only 
 touched eighty-five cents in Chicago once in all that 
 year. ' ' 
 
 "I might have made an error in copying, but I don't 
 think so," said Coin. 
 
164 SO UND MONE Y. 
 
 "We'll soon find out," said the editor, "for Secretary 
 Stone, of the Board of Trade, is with us and is prepared 
 to give the prices in the '70' sand '8o's." 
 
 Mr. Stone arose from his place on the platform be- 
 tween President Baker and John R. Wilson, of the Even- 
 ing Journal, with a small octavo cloth-covered book in 
 his hand. 
 
 "I object to Mr. Stone using any private records of the 
 Board of Trade," protested Coin. "I have no confidence 
 in them." 
 
 "Will the records of the government of the United 
 States be satisfactory?' ' inquired Secretary Stone in that 
 bland and gentle manner which has made him one of the 
 most popular men connected with the greatest grain mart 
 in the world. 
 
 "That will depend on circumstances," suggested 
 Col. Knott. "Our friend didn't seem to relish the 
 government records brought to his notice yesterday 
 not to any alarming degree." There was another 
 laugh at this and when it was over Chairman Clench 
 said: 
 
 4 'After consulting with my fellow commissioners I find 
 that we are unanimously agreed on the full credit which 
 should be accorded the records of the government. Mr. 
 Stone will oblige us by stating whether the figures given 
 by Mr. Coin are correct or not." 
 
 "Well," replied Mr. Stone, who is blessed with a keen 
 sense of humor, ' 'Mr. Coin has certainly made some of the 
 quotations correctly. ' ' 
 
 "Which are the correct ones?" asked Commissioner 
 Hobbs. 
 
 "Wait a minute," put in Chairman Clench. "What 
 book are you quoting from, Mr. Stone?" 
 
SOUND MONEY. 165 
 
 "The 'Statistical Abstract' issued by the Treasury De- 
 partment for 1894," replied the witness. Then he con- 
 tinued, ''Mr. Coin gives correct quotations of the export 
 prices of wheat in 1887 and : ." Running his eye up and 
 down the blackboard and then up and down the columns 
 of figures in the book he stopped. Finally he ejaculated, 
 "Bless my soul! That's all!" 
 
 This discovery created a great sensation. Men could 
 not believe that even Coin, with all his effrontery, would 
 dare to attempt such a rank imposture as this. 
 
 ' 'Surely you must be mistaken, George," said Presi- 
 dent Baker. "You've got hold of the wrong table." 
 
 "Indeed I haven't," declared the secretary. "This 
 is page 411 and gives the average New York, or ex- 
 port, prices of wheat for the years in question. As to 
 cotton," he continued, "the gentleman is a good deal 
 closer. His quotations are correct for the years 1877 
 and 1880." 
 
 This neat bit of sarcasm, so deftly delivered, provoked 
 a shout of laughter from those on the stage which was 
 taken up and reechoed by the audience. 
 
 "Do you mean to tell this commission, sir, that out of 
 44 quotations only three are correct?" asked the chair- 
 man. 
 
 "That is the case, sir," replied Mr. Stone, 
 
 "I shall not say what I think of this disclosure, sir, 
 at this time," said Clench, turning to Coin who looked 
 like a man who has been caught cheating at cards, ' 'but 
 I shall certainly let this audience understand the full ex- 
 tent of the deception you have attempted to practice. ' ' 
 Then turning to Mr. Stone, he said: "If you will oblige 
 the commission and also the audience by reading off the 
 correct figures I have no doubt Commissioner Hobbs will 
 
166 
 
 SOUND MONEY. 
 
 be pleased to write them on the blackboard alongside 
 those of Mr. Coin. ' ' 
 
 This suggestion was immediately carried out and when 
 the blackboard, which had been turned with its back to 
 
 AVERAGE EXPORT PRICES OF WHEAT AND COTTON EACH 
 
 YEAR. 
 
 Prices of wheat and cotton given correctly by Coin are in bold 
 face figures. 
 
 WHEAT, BU. 
 
 COTTON, LB. 
 
 SILVER, OZ. 
 
 Year. 
 
 Coin's 
 price. 
 
 True price. 
 
 Coin's 
 price. 
 
 True price. 
 
 Coin's 
 price. 
 
 True 
 price. 
 
 1872 
 
 1.40 
 
 1.25 
 
 18.0 
 
 22.2 
 
 1.32 
 
 1.32 
 
 73 
 
 1.25 
 
 1.24 
 
 18.2 
 
 20.1 
 
 1.29 
 
 1.30 
 
 74 
 
 1.35 
 
 1.15 
 
 15.0 
 
 17.9 
 
 1.27 
 
 1.28 
 
 75 
 
 1.10 
 
 .94 
 
 15.0 
 
 15.5 
 
 .24 
 
 1.25 
 
 76 
 
 1.20 
 
 1.00 
 
 129 
 
 13.0 
 
 .15 
 
 1.16 
 
 77 
 
 1.17 - 
 
 1.04 
 
 11.8 
 
 11.8 
 
 .20 
 
 1.20 
 
 78 
 
 1.30 
 
 1.19 
 
 11.1 
 
 11.2 
 
 1.15 
 
 1.15 
 
 79 
 
 1.07 
 
 1.21 
 
 9.9 
 
 10.8 
 
 .12 
 
 1.12 
 
 1880 
 
 1.25 
 
 1.27 
 
 11.5 
 
 11.5 
 
 .14 
 
 1.14 
 
 81 
 
 1.11 
 
 1.32 
 
 11.4 
 
 12.0 
 
 .13 
 
 1.14 
 
 82 
 
 1.19 
 
 1.28 
 
 11.4 
 
 11.5 
 
 .13 
 
 1.14 
 
 83 
 
 1.13 
 
 1.17 
 
 10.8 
 
 11.9 
 
 .11 
 
 1.11 
 
 84 
 
 1.07 
 
 .97 
 
 10.5 
 
 10.9 
 
 .01 
 
 1.11 
 
 85 
 
 .86 
 
 .96 
 
 10.6 
 
 10.5 
 
 1.06 
 
 1.06 
 
 86 
 
 .87 
 
 .88 
 
 9.9 
 
 9.3 
 
 .99 
 
 -.99 
 
 87 
 
 .89 
 
 .89 
 
 9.5 
 
 10.2 
 
 .97 
 
 .98 
 
 88 
 
 .85 
 
 .97 
 
 9.8 
 
 10. 
 
 .93 
 
 .94 
 
 89 
 
 .90 
 
 .88 
 
 9.9 
 
 10.6 
 
 .93 
 
 .93 
 
 1890 
 
 .83 
 
 .98 
 
 10.1 
 
 11. 
 
 1.04 
 
 1.04 
 
 91 
 
 .85 
 
 1.09 
 
 10.0 
 
 8.6 
 
 .90 
 
 .99 
 
 92 
 
 .80 
 
 .91 
 
 8.7 
 
 7.7 
 
 .86 
 
 .87 
 
 93 
 
 .63 
 
 .74 
 
 7.0 
 
 8.6 
 
 .72 
 
 .78 
 
 the audience, was again turned to view it presented the 
 appearance of the table herewith given, the true prices 
 being placed in deadly parallel with those which Coin 
 had attempted to foist upon the public. 
 
 Hoots, yells and jeers arose from that dense mass of 
 humanity as soon as men had had time to grasp the full 
 
SOUND MONEY. 167 
 
 meaning of the attempted fraud; and it was with some 
 little difficulty that order was restored. Coin stood stol- 
 idly with a cynical smile playing around his mouth. 
 What did he care? It was all in his day's work. It was 
 a desperate last chance. He had taken it and lost that 
 was all. 
 
 Editor Evans, who had been rapidly figuring on slips 
 of paper at the reporter's table, now advanced to the front 
 of the platform and said: 
 
 "I want to call the attention of the public to the the- 
 ory advanced by Coin and the reason he quotes these fig- 
 ures. There is, according to him, a direct relation be- 
 tween the price of silver and the prices of all other com- 
 modities. In view of this fact I want you all to notice 
 that from 1872 until 1880 silver sold for over a dollar 
 from $1.32 down to $1.12. It is his object, therefore, to 
 make the prices of wheat and cotton appear larger than 
 they are, especially the top figures of '72, '73 and '74 
 when silver was above $1.24. What is the fact? His 
 falsified figures increase his prices prior to 1880 from an 
 average of $i . 1 2 ^ a bushel for wheat, the government quo- 
 tation, to $1.23 a mighty long difference in the aver- 
 age price of wheat for a whole year. From 1886 to 1893, 
 when silver dropped from 99 cents to 78 cents, he wishes, 
 in order to make his empiric and senseless theory look 
 convincing, to reduce the price as much as possible. 
 Consequently we are not surprised when we find that he 
 falsifies the true figures, 91 ^ cents a bushel, to 82 s/ 8 cents!" 
 
 A storm of hisses arose and shouts of derision rent the 
 air. For a moment it looked as if there was about to be 
 a repetition of the scenes of the previous day in Plaster- 
 ers' Hall when Coin's deliberate and willful falsification 
 of the relative amounts of gold and silver in the world in 
 
168 SOUND MONEY. 
 
 the form of coin and bullion had been shown beyond ques- 
 tion to amount to thousands of millions of dollars. Men 
 shouted and hissed and yelled the most insulting epithets 
 at the contemptible fellow who had done his best by false- 
 hood, trickery and deceit to lead, not only them, but an 
 entire Nation astray. 
 
 While the storm of indignation was at its height Com- 
 missioner Rafferty arose from his seat and advancing to 
 the footlights held up his right hand with a commanding 
 gesture, which had the desired effect of obtaining silence. 
 When the tumult was at length stilled the handsome 
 young Irishman turned to Clench and bowing gravely 
 said, with impressive earnestness: 
 
 "Mr. Chairman, it is due to this commission, to the 
 representatives of organized labor assembled here and to 
 myself that I should make an explanation in regard to my 
 position and the degree of responsibility I have had in 
 bringing Mr. Coin before the laboring people of this city, 
 I may say of this country, as the champion of a financial 
 system which seemed to me to be logical and right. 
 
 "I read this man's book, sir, as I fear many thous- 
 ands of others have done. Being quite unlearned even in 
 the rudiments of political economy, for I am free to make 
 a clean breast of my ignorance, knowing nothing of 
 either the inexorable laws of commerce, which I now find 
 must govern and limit every monetary system which man 
 may devise, or the financial history of the United States, 
 I fell an easy victim to the lies and impudent assertions of 
 which that book, as I am now convinced to my shame 
 and sorrow, is composed. 
 
 "I was instrumental, sir, in bringing Mr. Coin before 
 the Federation, for which act I now publicly ask the par- 
 don of my fellow members, During the five days in 
 
SOUND MONEY. 169 
 
 which he has appeared before this commission it is only 
 too apparent that he has practiced the most infamous de- 
 ception. Indeed, in the light of this last exposure, which 
 unmasks the most impudent fraud that has ever come 
 under my notice in debate, I only wonder .how we could 
 so long have tolerated the presence of a man of this char- 
 acter among the honorable gentlemen and patriotic citi- 
 zens, who have by their truthful evidence revealed an un- 
 scrupulous and dishonest character in his true colors. For 
 that I tender to those gentlemen, Mr. Ewing, Mr. Evans, 
 Mr. Knott, Colonel Forrest, Professor Laughlin and Mr. 
 Haye my personal apology for the share I have had in 
 associating them with such a person. 
 ' 'In conclusion, sir, I move you that, 
 
 "Whereas, Harvey Coin has been upon numerous occasions 
 openly and publicly convicted of conduct of which no honorable 
 man would be guilty, 
 
 "JZesolved, That the said Harvey Coin be now expelled from 
 this platform, and that hereafter he be denied a hearing before 
 this commission." 
 
 During the delivery of this terrible denunciation 
 silence, intense and oppressive, was maintained. Indeed, 
 it seemed as if no man in all that vast throng of people 
 even drew breath from the moment when Commissioner 
 Rafferty, pale as marble and in a low but clear and dis- 
 tinct voice began to speak, until the last word was uttered. 
 
 Meantime, Coin stood like one petrified. A blow so 
 swift, so sweeping and so terrible, falling from the one 
 man on the commission whom he believed he controlled 
 absolutely, seemed to paralyze his powers of thought and 
 action, and he stood there transfixed, with a piteous ex- 
 pression in his eyes, like that of a dumb beast in the pres- 
 ence of inevitable death. Those who sat near him on the 
 
170 SOUND MONEY. 
 
 platform could even find it in their hearts to pity him, in 
 spite of his having courted, by his own outrageous conduct, 
 the withering and contemptuous repudiation which fell in 
 an unbroken stream from the lips of the eloquent young 
 labor leader. 
 
 As Commissioner Rafferty concluded, Coin, in shame, 
 turned his back on the audience to hide his face; then for 
 one brief instant he faced his accuser. For, perhaps, three 
 seconds they stood thus and then, with a despairing ges- 
 ture he turned to the other two members of the commis- 
 sion who had been so suddenly constituted his judges. 
 
 Instinctively his eye sought that of Commissioner 
 Hobbs. The audience, in breathless suspense, maintained 
 the grewsome silence. Chairman Clench had allowed his 
 head to fall forward on his breast, and it was evident that 
 his well balanced mind was actively at work. At length 
 the eyes of Hobbs and Coin met. There was appeal, desper- 
 ate, pitiful appeal, in those of the latter, while Hobbs' 
 were cold and hard and sternly unforgiving. 
 
 The silence was broken by Hobbs. "I shall not 
 speak," was all he said. 
 
 Then Chairman Clench threw back his head and sat 
 erect. 
 
 "The resolution is a just one," he said. "I second it 
 and it is so ordered. ' ' 
 
 As Clench pronounced the sentence Coin .accepted the 
 inevitable, and, without waiting to pick up a single book 
 or paper of the many he had brought with him, he slunk 
 dejectedly to the nearest stage entrance and disappeared. 
 
 The audience, with a keen appreciation of the scene 
 which had just been enacted before their eyes, generously 
 refrained from any demonstration beyond an uncontroll- 
 able sigh of relief as Coin noiselessly sneaked away. 
 
- 
 
 SOUND MONEY. 171 
 
 For a moment there was an awkward silence which 
 was relieved by the tact of President Baker, of the Board 
 of Trade, who, as if one of the most sensational scenes in 
 all the history of public debate had not just taken place, 
 id quietly: 
 
 "I wish to call your attention, Mr. Chairman, to the 
 prices for 1871, when, according to the last witness we 
 had the silver unit of value, ' ' and, referring to a memor- 
 andum book, he quoted: " 'Corn was 48 cents, cotton 
 17, wheat $1.04, and oats 40, the average being 52^ 
 cents. In 1891, under a single gold standard, corn was 
 70, wheat $1.09, oats 46, cotton .08, the average being 
 58^ cents. In 1871 silver was $1.32 per ounce and in 
 1891 it was 99 cents. In other words, the average prices 
 of the great staples, wheat, corn, oats and cotton rose from 
 52 1-4. cents in 1871 to 58 1-4. cents in 1891 while silver de- 
 clined from $1.32 to 99 cents!' " 
 
 The pent up feelings of the multitude found in this 
 telling point an excuse for working off the surplus steam, 
 and the applause which followed was vociferous and long 
 continued. When the house had become somewhat 
 quieter Senator Jones arose and said, with a glance toward 
 the blackboard where the figures given respectively by 
 Harvey Coin and Secretary Stone still remained: 
 
 "One swallow, sir, does not make a summer, nor the 
 proven dishonesty of one man convict a whole party. I 
 do not desire to cast any suspicion upon the figures quoted 
 from the Statistical Abstract by the secretary of your 
 Board of Trade. But, sir, there are other commodities in 
 this country, other crops which our farmers raise in bit- 
 terness and travail in an almost hopeless attempt to keep 
 that insatiable and* inexorable creditor, the usurer of 
 Great Britain or of our own Eastern states, from fore- 
 
172 SOUND MONEY. 
 
 closing the mortgage on the poor little spot of earth which 
 is his all his home. And what applies to the farmer 
 applies equally to the poorer and middle classes of our 
 citizens. They are all debtors all mortgaged to the cap- 
 ital of England and the Eastern States. It is for the sake 
 of these poor people that we must obtain relief from the 
 load of debt which the appreciation of gold has saddled 
 upon them." 
 
 "With the Senator's permission I would like to reply 
 to that statement," said Sigmund Zeisler, rising. "I 
 think I can disprove the common idea that our people of 
 small means are all in debt to the East and to England or 
 that it is capitalists, even, who own most of the mort- 
 gages. I will not detain the gentleman long. * ' 
 
 * 'With pleasure, sir, ' ' replied Mr. Jones, giving an ex- 
 ample of that 'senatorial courtesy' so frequently men- 
 tioned. 
 
 1 'The money deposited in building associations and 
 saving banks," began the brilliant young lawyer, "is not 
 simply placed in safes and allowed to lie there until called 
 for. It is loaned out at interest and kept in constant cir- 
 culation in order that it may earn a profit for the thrifty, 
 though humble, people who have saved it from their earn- 
 ings. They have denied themselves many little luxuries 
 in order that they may put something by for a rainy day, 
 as the saying is. 
 
 "According to the report of the United States commis- 
 sioner of labor, there were in this country on January i , 
 1893* 5.836 building associations, with 1,745,725 individ- 
 ual shareholders. Their total assets amounted to $526, - 
 852,885. According to the report of the comptroller of the 
 currency, the savings deposits in the various savings 
 banks in the United States in 1892 amounted to $1,712,- 
 
SOUND MONEY. 173 
 
 760,026; the number of depositors was 4,781,695. The 
 census of 1890 shows that the then net value of all life in- 
 surance policies outstanding in the United States on 
 December 31, 1889, was $618,468,059; the number of 
 policies being 4,537,286, and the amount of insurance 
 $3,691,686,594. If you figure up these items the total re- 
 sult reaches in the neighborhood of $3,000,000,000. This 
 sum represents credits owned by persons numbering more 
 than 11,000,000 people, and an average for each of $258. 
 They are the creditors who will be most deeply affected if 
 they are to be repaid in depreciated silver dollars. 
 
 "Another point. The pension list in our last budget 
 footed up, in round figures, $140,000,000. The crippled 
 soldier who fought for the preservation of the union; the 
 poor old widow who receives the paltry sum of $8 a month 
 to compensate her for the loss of her husband, will have 
 their pensions, debts, justly owed them by Uncle Sam 
 and payable four times a year, cut in two by the free 
 coinage of silver. 
 
 ' 'The laborer is a creditor of his employer for the value 
 of his labor at the end of every day. He will receive his 
 pay in 50 cent dollars, and all the employes of all the 
 governments, municipal, state, and United States, whose 
 salaries are fixed by law, will find themselves paid with 
 dollars of only one-half of their present purchasing 
 power. 
 
 ' 'The silvery-tongued demagogues tell you that silver 
 is your friend, silver is the money of the people. But I 
 say to you, that there is no money too good for the peo- 
 ple; that there is no money good enough to pay the or- 
 phans and widows of the heroes of the late war, no dollars 
 big enough and valuable enough to pay the man who 
 faithfully toils for his bread, and daily adds to the re-. 
 
174 
 
 SOUND MONEY. 
 
 sources and greatness of this country." 
 
 This impassioned address, brief though it was, bristled 
 with facts which went home to the hearts of the audience, 
 and Mr. Zeisler resumed his seat with enthusiastic ap- 
 plause and cheers ringing in his ears. While he was 
 speaking, the written record of Coin's disgrace the par- 
 alleled tables, had been rubbed off the blackboard, and in 
 its place now stood a full table of the average export 
 prices of wheat, corn, oats and cotton, together with the 
 average price of silver from 1870 to 1895, put there by 
 President Baker and Secretary Stone of the Board of 
 Trade. 
 
 EXPORT PRICES OF WHEAT, CORN, OATS, COTTON, AND 
 SILVER, IN THE NEW YORK MARKET. 
 
 Years. 
 
 Wheat, bu. 
 
 Corn, bu. 
 
 Oats, bu. 
 
 Cotton, Ib. 
 
 Silver, oz. 
 
 1870 
 
 .94 
 
 .55 
 
 .43 
 
 24. 
 
 1.33 
 
 71 
 
 1.04 
 
 .48 
 
 .40 
 
 16.9 
 
 1.33 
 
 72 
 
 1.25 
 
 .40 
 
 .34 
 
 22.2 
 
 1.32 
 
 73 
 
 1.24 
 
 .48 
 
 .37 
 
 20.1 
 
 1.30 
 
 74 
 
 1.15 
 
 .65 
 
 .52 
 
 17.9 
 
 1.28 
 
 75 
 
 .94 
 
 .42 
 
 .36 
 
 15.5 
 
 1.25 
 
 76 
 
 1.00 
 
 .37 
 
 .35 
 
 13. 
 
 1.16 
 
 77 
 
 1.04 
 
 .36 
 
 .29 
 
 11.8 
 
 1.20 
 
 78 
 
 1.19 
 
 .51 
 
 .31 
 
 11.2 
 
 1.15 
 
 79 
 
 1.21 
 
 .50 
 
 .37 
 
 10.8 ' 
 
 1.12 
 
 1880 
 
 1.27 
 
 .55 
 
 .43 
 
 11.5 
 
 1.14 
 
 81 
 
 1.32 
 
 .63 
 
 .46 
 
 12. 
 
 1.14 
 
 82 
 
 1.28 
 
 .80 
 
 .52 
 
 11.5 
 
 1.14 
 
 83 
 
 1.17 
 
 .65 
 
 .43 
 
 11.9 
 
 1.11 
 
 84 
 
 .97 
 
 .61 
 
 .36 ' 
 
 10.9 
 
 Ml 
 
 85 
 
 .96 
 
 .53 
 
 .36 
 
 10.5 
 
 1.06 
 
 86 
 
 .88 
 
 .48 
 
 .35 
 
 9.3 
 
 .99 
 
 87 
 
 .89 
 
 .51 
 
 .34 
 
 10.2 
 
 .98 
 
 88 
 
 .97 
 
 .57 
 
 .35 
 
 10. 
 
 .94 
 
 89 
 
 .88 
 
 .43 
 
 .29 
 
 10.6 
 
 .93 
 
 1890 
 
 .98 
 
 .48 
 
 .29 
 
 11. 
 
 1.04 
 
 91 
 
 1.09 
 
 .70 
 
 .46 
 
 8.6 
 
 .99 
 
 92 
 
 .91 
 
 .54 
 
 ,36 
 
 7.7 
 
 .87 
 
 93 
 
 .74 
 
 .50 
 
 .36 
 
 8.6 
 
 .78 
 
 94 
 
 .61 
 
 .51 
 
 ,37 
 
 6.9 
 
 .63 
 
 95 
 
 
 
 
 
 
SOUND MONEY. 175 
 
 They had thus fairly and squarely met the issue raised 
 by Coin, with bogus statistics, by giving the true figures; 
 and so far as the leading staples are concerned, they had 
 demonstrated that the mythical ' 'sympathy with silver' ' 
 claim is an arrant absurdity. 
 
 "When I made way for my able young friend, Mr. 
 Zeisler," resumed Senator Jones, "I was about to make a 
 statement and issue a challenge. I maintain that though 
 the prices of a few agricultural products may not prove 
 my case, the fact is that gold has appreciated, and that to 
 compel debtors who borrowed under a double standard, 
 and who then had the privilege of repaying their loans in 
 silver, to pay in gold and forbid them to pay in silver 
 coined under similar circumstances is the height of injus- 
 tice. Free coinage and restoration of the legal tender 
 power of silver will correct that. Prices of nearly all 
 commodities have fallen in a demonstrable ratio with sil- 
 ver, and I am prepared to stand or fall on that statement. 
 I notice that Mr. Atkinson of Boston is with us. I defy 
 him to disprove it and challenge him to the proof. ' ' 
 
 This defiance was applauded by a number of men who 
 were attending a session of the commission for the first 
 time and knew nothing of the complete victory won by 
 gold over silver in all the other branches of the wide dis- 
 cussion the subject had received. 
 
 "I accept the challenge," said Mr. Atkinson, taking a 
 position in the center of the stage. "I am prepared to 
 prove that the reduction in cost from 1873 to 1890, the 
 last year for which I have figures, in agriculture, manu- 
 factures, transportation and commerce will more than 
 account for all the reduction in prices, and that the state- 
 ment that gold has appreciated is an economic blunder. 
 I will prove that under the gold standard men are paid 
 
176 SOUND MONEY. 
 
 higher wages, and that the purchasing power of what they 
 earn is much greater than in 1873 or m an y Y ear before it. ' ' 
 
 'Trove that," shouted a man in the top gallary, "and 
 we will vote against free silver. But you'll have to prove 
 it so that we all can understand it." This interjection 
 was applauded heartily. The man had evidently voiced 
 the sentiment of the meeting. 
 
 "During the panic of 1893," continued Mr. Atkinson, 
 "which was caused entirely by the attack on our gold 
 basis by the advocates of free silver, and the fear that they 
 might succeed, prices were forced down below cost by the 
 paralysis of trade and industry which ensued. Vast nurnr 
 bers of men and women were forced into idleness; the 
 capital of the country was impaired and our progress was 
 crippled. The rich grew no richer and many of the poor 
 were brought to the verge of starvation. When the his- 
 tory of that nightmare of national calamity comes to be 
 written the names of the men who brought it upon us 
 will live only to be held up as examples of perverted in- 
 telligence or of selfish greed and public dishonesty almost 
 beyond belief. ' ' 
 
 At this point John Sherman and William E. Mason, 
 often called "The People's William" because of the suc- 
 cessful stand he took against closing the World's Fair on 
 Sundays in Judge Stein's court, looked hard at the group 
 of silver senators who, with ex- Judge McConnell, ' 'Silver' ' 
 Bland and Congressman Bryan, of Nebraska, sat on the 
 opposite corner of the stage. 
 
 "In order to demonstrate my arguments," continued 
 the witness, ( 'it will be necessary to use what are called 
 'index numbers,' as Mr. Coin in his 'Financial School' 
 has already done. There may be some of you who do not 
 understand the term 'index numbers,' and in order that 
 
SOUND MONEY. 177 
 
 you may appreciate the facts I shall make use of I will 
 explain: The average price of a commodity is taken for 
 a certain year and represented by the number 100. That 
 is par. Then the average price of the same commodity is 
 taken in other years and computed in relation to the price 
 of the index year. According as its ratio is higher . or 
 lower it is added to, or subtracted from, 100; and thus the 
 ratio of increase or decrease is expressed in its most con- 
 venient form. For the purpose of this demonstration I 
 shall not begin with the year 1873, as Coin in his book 
 has done; nor shall I, as he has done, take only the 
 English prices prepared by Augustus Sauerbeck in his 
 index table. That would prevent you farmers and you 
 men who live by your labor, and depend upon daily 
 wages, from seeing the effect of cheap money on prices 
 and wages. You want to know all about that, don't 
 you?" 
 
 ' 'You bet we do !" shouted a hundred voices in chorus. 
 
 ' 'Therefore, ' ' continued the witness, ' 'I take the prices 
 and wages from the Report of the Finance Committee of 
 the United States Senate, computed under the direction 
 of Commissioner Carroll D. Wright. You all know him." 
 
 The name of Mr. Wright, whose services to the cause 
 of labor have been so highly appreciated, was greeted 
 with applause. 
 
 "If you need any further guarantee," resumed Mr. 
 Atkinson, "I might refer you to my friend, John Sher- 
 man." Again the audience applauded. "Hush! for 
 goodness sake," pleaded the witness. "I was going to 
 say, if you had allowed me to finish, that I would refer 
 to Senator Sherman but for the fact that he is the bold, 
 bad man who committed that horrible crime in the dead 
 of night away back in 1873." 
 
178. 
 
 SOUND MONEY. 
 
 This sally provoked a roar of laughter and applause, 
 and' in obedience to repeated cries of "Sherman, Sher- 
 man," Ohio's greatest son was obliged to rise and bow 
 several times. 
 
 "These prices," continued the witness, "as well as the 
 London prices, compiled by Coin's chosen authority, 
 Augustus Sauerbeck, who is one of the most reliable 
 statisticians in the world, have been computed and com- 
 pared by Prof. Roland P. Falconer, of Johns Hopkins 
 University. ' ' At this point Mr. Atkinson beckoned and 
 John Barstow advanced from ' 'prompt' ' entrance with a 
 big calico banner, upon which had been painted a table, 
 showing prices, wages, and purchasing power of wages in 
 1860 and in 5-year periods until 1890: 
 
 PRICKS, WAGES AND PURCHASING POWER. 
 
 
 1860 
 
 1865 
 
 1870 
 
 1875 
 
 1880 
 
 1885 
 
 1890 
 
 Meat 
 Other food 
 Cloths and clothing 
 Fuel and lighting 
 Metals and implements 
 Lumber and building materials. . 
 Drugs and chemicals 
 House furnishing 
 
 100 
 100 
 100 
 100 
 100 
 100 
 100 
 100 
 
 197. 
 240.3 
 299.2 
 237.8 
 191.4 
 182.1 
 271.6 
 181 1 
 
 174.3 
 146.3 
 139.4 
 196.5 
 127.8 
 148.3 
 149.6 
 121 6 
 
 140.4 
 135 
 120.1 
 156.5 
 117.5 
 143.7 
 144.2 
 95 
 
 103.6 
 116.9 
 104.5 
 100.2 
 96.3 
 130.9 
 113.1 
 85 2 
 
 107.6 
 97.2 
 84.8 
 89.6 
 77.4 
 126.6 
 86.9 
 70 1 
 
 99.6 
 103.5 
 82.4 
 92.5 
 73.2 
 123.7 
 87.9 
 69 5 
 
 Miscellaneous 
 Average of all prices 
 
 100 
 100 
 
 202.8 
 216 8 
 
 148.7 
 142 3 
 
 122.9 
 127 6 
 
 109.8 
 106 9 
 
 97.5 
 93 
 
 89.7 
 92 3 
 
 Average of all wages 
 Average wages by importance. . . 
 Salaries of cit y teachers 
 
 100 
 100 
 100 
 
 143.1 
 148.6 
 134 7 
 
 162.2 
 167.1 
 186 3 
 
 158.4 
 158 
 188 1 
 
 141.5 
 143 
 
 182 8 
 
 150.7 
 155.9 
 186 3 
 
 158.9 
 168.2 
 186.3 
 
 Paper money 
 Gold price of silver bull'n in I/d'n 
 Purchasing power of wages 
 
 100 
 100 
 100 
 
 49.5 
 99 
 66 
 
 81.1 
 98.2 
 114.1 
 
 88.8 
 92.2 
 194.1 
 
 100 
 84.7 
 132.3 
 
 100 
 
 78.7 
 162 
 
 100 
 77.4 
 172.1 
 
 This big banner was suspended by two halliards low- 
 ered from the "gridiron" above by one of Mr. Barstow' s 
 assistants, and it hung over the heads of those on the 
 stage, the letters and figures being large enough to be 
 plainly read in every part of the house. 
 
 "The first thing I want to call to the attention of 
 every farmer, every salaried man and every wage worker 
 
SOUND MONEY. 179 
 
 in this magnificent audience," resumed Mr. Atkinson, 
 ' 'is the effect of a debased currency cheap money, whether 
 it be greenbacks at a discount or silver coined far above 
 its value and unsupported by gold and the credit of a sol- 
 vent government, is sure to have upon wages and the 
 things that wages must buy. 
 
 "You will see by looking at the table that the average 
 of all prices and the average of all wages is taken as 100 
 in 1860. By 1865 we had high prices as the result of 
 cheap mone}'. It was paper money, which in 1860 had 
 been represented by 100, or par, and now had fallen in 
 value to 49.5. Silver had also dropped one point, from 
 100 to 99. All prices had advanced to 216.8, in paper 
 money, greenbacks, and wages had also advanced but 
 not, as the free silver men are trying to tell you they will, 
 'keeping step with advancing prices. ' Wages had ad- 
 vanced to 143.1 in paper, and owing to the unequal ad- 
 vance in prices their purchasing power was only .66 in- 
 stead of 100 as in 1 860. Do you understand that clearly?' ' 
 
 "Sure thing," "You bet," "Anybody could," and 
 similar shouts from the crowd assured the eminent 
 economist that he had chosen the right method to impress 
 the facts upon his audience. 
 
 "Now," he resumed, "let us see what happened to us 
 in consequence of our abandoning the free coinage of sil- 
 ver by the law of 1873. That is the charge that we are 
 here to meet. We resumed specie payments in 1879 and 
 therefore the state of things in 1880 will clearly indicate 
 the evils of adopting a gold basis and standing ready to 
 redeem all our promises to pay, in gold. By this time 
 the era of high prices had taken a turn, and we find the 
 average of all prices indicated by 106.9 while wages had 
 also gone back to 141.5, but paper money was again at 
 
180 SO UND MONE Y. 
 
 par, and therefore the purchasing power of wages was 
 132.3 instead of 66; while their average amount had in- 
 creased from 100 in 1860 to 141.5. Labor was better 
 paid and lived in greater comfort than it had twenty 
 years before. And yet, in spite of this magnificent pros- 
 perity silver had declined from 100 in 1860 to 84.7." 
 
 This plan of bringing the whole history of prices, 
 wages, cheap money and its effects down to a few figures, 
 so that it could be understood as readily as if it were a 
 map, was new to the audience, and the witness was 
 cheered for his lucid explanation of the meaning of the 
 table. Thereafter they would be able to read its meaning 
 for themselves. 
 
 "You will observe," continued Mr. Atkinson, "that 
 while the average of all prices has fallen from 100 in 1860 
 to 92.3 in 1890 the average of all wages has risen from 
 100 to 158.9 and that the purchasing power of wages has 
 increased more than 72 per cent. 
 
 "To make this a little more pointed in relation to the 
 charge of our friends, the enemy, that an awful deed was 
 done when silver was demonetized in 1873, we will take 
 the figures closest to that year, 1870, and compare with 
 them the figures of 1890. L,et us see how the wage 
 worker has suffered during this time. In 1870 the aver- 
 age of all prices was 142.3, wages 162.2 and purchasing 
 power 114.1 in greenbacks. In 1890 prices were 92.3, 
 wages 158.9 and purchasing power > in gold ', IJ2. //" 
 
 If one might judge by the applause with which this 
 overwhelming repudiation of the free coinage absurdity 
 was received, wage workers were well satisfied to have 
 endured the 'oppression' and 'wrong' which they had suf- 
 fered during those 20 years of the grinding tyranny of 
 a 'British gold' standard! It seemed to them -that any- 
 
SO UND MONE Y. 181 
 
 thing which would reduce the price of all they had to buy 
 50 per cent, increase the purchasing power of wages 58 
 per cent, and wages themselves from 162.20 in paper 
 money at 81.10 to 158. 90 in gold, wasjust about the right 
 kind of thing for the wage worker to pin his faith to. 
 
 "We don't deny that prices have fallen," interrupted 
 Senator Jones. "We know they have and say that it is 
 because gold has become more valuable and money is 
 scarce. It takes less gold to buy more commodities 
 that's all." 
 
 ' ' If gold has appreciated, the first place in which that ap- 
 preciation would show itself would be in the interest exacted 
 for its use by those who own it, ' ' replied Mr. Atkinson. 
 
 1 ' What is the fact? Since 1 873 the rate of interest has 
 declined almost one- half to the immense benefit of all bor- 
 rowers farmers, manufacturers and traders as well as the 
 many thousands of working people who have built homes 
 for themselves and paid for them little by little by means 
 of mortgage loans and installment payments. Because 
 there is more gold in the world and because the conven- 
 iences for its' rapid circulation are so highly developed, the 
 competition of the lenders is much more keen and the bor- 
 rower profits accordingly. 
 
 "If gold has appreciated it will certainly purchase 
 more land to-day than it did in 1873. Especially will this 
 be so in view of the fact that the average price of all com- 
 modities has fallen 8 per cent. If 8 per cent, the fall in 
 all prices, represents the increase in the value of gold, it 
 necessarily follows that land has fallen at least that much. 
 Has it? 
 
 "The assessed valuation of all the land in the United 
 States by the census 0/1870 was $9,914.^80,000. By the 
 census of i8go it had increased to $18, 956 ,556 ,000." 
 
182 
 
 SOUND MONEY. 
 
 "Our population has increased," objected the Senator. 
 
 "True," admitted Mr. Atkinson. "Our population 
 has increased 61 per cent, but th-j assessed valuation of our 
 lands has increased 90 per cent!' ' 
 
 This was. a body blow and the great silver advocate 
 felt as if some of the wind had been knocked out of him, 
 while the audience expressed its delight by vigorous hand 
 clapping. 
 
 "Labor is a commodity, is it not?" continued Mr. 
 Atkinson; and the silver senator nodded. "It is bought 
 and sold every day," continued the witness. 
 
 "It is," admitted the Senator. 
 
 ' 'Then why doesn't less gold buy more of it as of any 
 other commodity?" asked Mr. Atkinson; and the gentle- 
 man from Nevada wondered what had induced him to 
 trifle with the machinery. 
 
 "Now to attack the subject in detail," resumed Mr. 
 Atkinson, when the applause had subsided, "we will take 
 up the subject of food, beginning with meat. I present 
 this table, ' ' and with that he hung a small banner, con- 
 taining a table, over the blackboard: 
 
 MEAT. 
 
 
 1860 
 
 1870 
 
 1890 
 
 
 In Gold. 
 
 In Paper. 
 
 In Gold. 
 
 United States 
 
 100 
 
 mQ 
 
 no 
 
 I^nglish prices in crold 
 
 100 
 
 108 
 
 01 1 
 
 
 
 
 
 ' 'The causes for a reduction in the price of animal 
 food since 1860 are the establishment of great packing 
 houses, inventions in canning provisions, the use of cold 
 storage and the change from sail to steam on the ocean. 
 In production, the rediscovery and use of ensilage and 
 many other improvements in feeding stock. 
 
SOUND MONEY. 183 
 
 "In 1869 the meat supply of great cities was limited 
 to the local production; even in 1870 the movement of 
 live or dressed meat by rail was insignificant, and by steam- 
 ships less. In 1860-70 the beeves of South America and 
 Texas were slaughtered mainly or only for their hides; 
 they possessed no international food value. In 1890 
 every part of the animal had become an article of inter- 
 national commerce. Had not the purchasing power of 
 the great masses of the people increased with the stability 
 of the gold standard, and with the rise in wages, a great 
 reduction in the price of animal food must have ensued to 
 the detriment of the farmers." 
 
 ' 'The speaker paused, and turning to the group of silver 
 advocates asked: ' 'Are not these causes alone sufficient 
 to account for all the reduction? If not, there are others. ' ' 
 
 The audience tittered at the grave political economist 
 having unconsciously lapsed into what sounded like a 
 slangy expression. 
 
 "Silver also fell," said ex- Judge McConnell. 
 
 "Yes," assented the witness, "from TOO to 77.4., while 
 meat fell from 100 to 99.6. Note that, my agricultural 
 friends!" 
 
 The audience clapped and cheered wildly at the dis- 
 comfiture of the leader of the free silver party in Illinois 
 
 "What about wheat?" asked ex-congressman Bland, 
 suavety trying to cover the confusion of his disciple by 
 calling attention to the product whose fall in price, more 
 than that of any other commodity in the list, has been 
 made use of by the free-coinage demagogues to draw the 
 farmers into their ranks. 
 
 "Wheat," replied Mr. Atkinson, "is not separately 
 dealt with but is included in the next class, foods other 
 than meat, as the most important commodity, in the list." 
 
184 SOUND MONEY. 
 
 "May I answer that question?" shouted a small man 
 who arose from his chair in the first box to the right of 
 the stage. 
 
 "That's Ed. Pardridge, the great bear operator on the 
 Board, ' ' whispered Secretary Stone to Chairman Clench. 
 
 "What! That little chap?" exclaimed the big black- 
 smith in surprise, "why I thought he must be a regular 
 giant!" 
 
 "He is," replied Mr. Stone, with a chuckle. 
 
 ' 'The commission will be pleased to hear anything on 
 the subject of wheat from Mr. Ed. Pardridge," announced 
 the chairman, and people craned their necks and strained 
 their eyes to get a good look at the celebrated "plunger." 
 
 "The reason wheat has fallen," said Mr. Pardridge, 
 addressing the commission from his box, "is over-pro- 
 duction; or rather, over-supply, for there can't be any 
 over-production of food so long as anybody goes hungry. ' ' 
 This sentiment met with the approval of the audience. 
 "A few years ago," continued Mr. Pardridge, "the re- 
 public of Argentina exported practically no wheat. In 
 1894 she exported sixty millions of bushels, and every 
 bushel entered foreign markets in competition with our 
 own wheat. The crops of Australia have increased im- 
 mensely; Russia is spreading her wheat fields into Siberia, 
 whence the new Siberian railway affords an outlet to 
 the markets of the world. The increased crops of India 
 and the Canadian Northwest Territories are also factors 
 in this over-supply, which is emphasized by a lessened 
 consumption. Other food articles are replacing wheat to 
 a very considerable extent, and every pound of other food 
 introduced into the market lessens the demand for wheat. 
 A correct understanding of these facts would have kept 
 money in the pockets of the gentlemen who have been 
 
SOUND MONEY. 
 
 185 
 
 trying to 'bull' wheat during the last three years." The 
 audience laughed and the circus man, who had squeezed 
 onto the platform, on the plea that he was one of the 
 witnesses, inquired: 
 
 "Don't you believe in free silver, Mr. Pardridge?" 
 
 "Not while I'm awake," replied the speculator; and 
 the audience snickered. 
 
 "Coin, in his book, says it was on account of your 
 knowledge of the silver question that you have been so 
 successful," persisted "Hey Rube." 
 
 "Well, you know what Coin is. 'Nuff said," replied 
 the little "bear,", and he resumed his seat amid a roar of 
 laughter. 
 
 "We now come to other food products," continued 
 Mr. Atkinson, as he spread another table over the first. 
 
 FOODS OTHER THAN MEATS CHIEFLY GRAIN. 
 
 GRAINS, ROOTS, FRUITS, VEGE- 
 
 1860 
 
 1870 
 
 1890 
 
 TABLES, SUGAR. 
 
 Gold. 
 
 Paper. 
 
 Gold. 
 
 United States 
 
 100 
 
 146 3 
 
 1035 
 
 English prices in gold 
 
 100 
 
 88.8 
 
 66.6 
 
 "The influences tending to great reductions since 1870 
 have chiefly affected grain and sugar. Since 1873 the 
 sources from which the greater part of the wheat exported 
 from the United States is produced have been opened by 
 railroads and waterways. Machinery has greatly reduced 
 the cost of production, and almost revolutionary improve- 
 ments have been made in milling. The result has been 
 to reduce the cost of placing wheat on sale in London or 
 Liverpool from Minnesota or Dakota by an amount equal to 
 one-half the price at the average of 1870. 
 
186 
 
 SOUND MONEY. 
 
 ' 'In the production and refining of sugar, changes as 
 great have been made. Increased power of consumption 
 has alone kept the prices of other foods than meat, wheat 
 excepted, above the level that improvements warrant. 
 The great reduction in t lie price of wheat is due to the un- 
 paralleled increase in the world 's crop as Mr. Pardridge has 
 pointed out. If the supply should be lessened the price 
 would advance. 
 
 ' ' Cloths and clothing and textile materials, chiefly 
 cotton and wool will be the next subject: 
 
 CLOTH, CLOTHING, TEXTILE MATERIAL. 
 
 CHIEFLY WOOL AND COTTON NOT 
 CONVERTED. 
 
 I860 
 
 1870 
 
 1890 
 
 Gold. - 
 
 Paper. 
 
 Gold. 
 
 United States. 
 
 
 100 
 100 
 
 139.4 
 124 
 
 81.1 
 
 76.5 
 
 English prices 
 
 
 
 The civil war raised the price of cotton at its highest 
 point to $1.90, in paper, per pound and also produced al- 
 most a cotton famine in England. The war demand for 
 woolens carried the demand for wool to an extravagant 
 point. Then came free labor assisted by tools and instru- 
 ments with which slaves could not be trusted, and vastly 
 increased cotton crops followed. Cotton seed, previously 
 wasted, became worth $30,000,000 a year. Australia, 
 from an insignificant position, became the greatest wool 
 producer in the world. Immense improvements were 
 made in factory machinery; the use of the sewing machine 
 became almost universal in the United States, and very 
 general in England. In every branch of these industries 
 the labor cost was lessened, while the earnings' were aug- 
 mented. ' ' 
 
SOUND MONEY. 
 
 187 
 
 "Will the gentleman be kind enough to explain that 
 paradox?" said ex-Mayor Hopkins, "it's too tough for 
 me." 
 
 "From my own investigation and knowledge of this 
 branch of industry," replied Mr. Atkinson, "with which 
 I have been connected as man and boy from 1842 to 1894, 
 I can state that the productive capacity of the average 
 operative in a given mill, working year by year through- 
 out the period named, has increased from 4,321 
 yards a year in 1830 to 9,607 yards in 1840, and 
 is now over 30,000 yards. Hours of labor have been 
 reduced from 14 in 1842 to 10 at the present time, 
 and though wages have been increased from 86 in 184.5 to 
 100 in 1860, and 165.1 in 1890; and thus the earnings of 
 labor ivere augmented in two ways, by the increased effic- 
 iency of the operative the cost of labor has been decreased." 
 
 This telling explanation was so satisfactory to Mr. 
 Hopkins that he maintained an unbroken silence from 
 that time until nearly the close of the session. 
 
 "We shall now see what we can find in the line of 
 metals, implements and average minerals, ' ' resumed the 
 witness. This table shows the reduction: 
 
 METALS, IMPLEMENTS AND AVERAGE MINERALS. 
 
 
 1860 
 
 1870 
 
 1890 
 
 
 Gold. 
 
 Paper. 
 
 Gold. 
 
 Metals and implements United 
 States 
 
 100 
 
 127.8 
 
 74.9 
 
 Average minerals English prices 
 
 100 
 
 94.2 
 
 87.4 
 
 
 
 
 
 "There is no standard by which the progress of nations 
 can be more surely gauged than by the increasing use of 
 iron, steel and copper. The recorded production of iron 
 
188 SOUND MONEY. 
 
 ore in the world in 1860 was less than 7,000,000 tons; in 
 the United States a little over 900,000 tons. In 1892, in 
 the world, approximately, 2 6, 000,000 tons; United States, 
 9,157,000 tons. Production of Bessemer steel in the 
 United States, 1860, none; 1892, 4,168,000 tons. 
 
 ' ' The dominion of iron and steel has passed to the 
 United States through the inventions of Bessemer, Holley, 
 Siemens, Reese, Thomas, Gilchrist and a host of others, 
 which have made astounding reductions in the labor cost. 
 These, with the opening of new mines in the northwest and 
 south and of the great coking coal mines of Virginia and 
 other states, give adequate reasons for much greater reduc- 
 tions than have taken place. 
 
 "Similar inventions and the opening of new sources of 
 supply of copper and silver need only be referred to in order 
 to comprehend the lessened prices of these metals; while 
 aluminum has been added and the invention of new alloys 
 has enlarged the field of use. Hard times, the sternest 
 schoolmaster, brought prices in 1894 to the lowest point; 
 yet the product is now increasing and promises soon to 
 reach the highest point ever known. 
 
 ''Tell us something more about wages," shouted a 
 gentleman in the first balcony. "That's what we want 
 to hear. ' ' 
 
 "Certainly, my friend," replied Mr. Atkinson. "It 
 is natural that you should be quite as anxious about the 
 commodity you sell, labor, as about the goods you buy. I 
 have prepared a table, showing the advance of wages in 
 eleven principal trades, in particular, as well as all indus- 
 tries in general, in 1890, as compared with 1860, together 
 with the difference in the prices of commodities and the 
 purchasing power of wages: 
 
SOUND MONEY. 
 
 189 
 
 TRADE OR OCCUPATION. 
 
 1860. 
 
 1890. 
 
 
 
 T/l8 A 
 
 Building trades 
 
 
 140 .4 
 
 
 IOO 
 
 1 /* -3 
 
 
 IOO 
 
 rgc T 
 
 
 IOO 
 
 167 7 
 
 
 IOO 
 
 iu/ . / 
 177 Q 
 
 IVIetals and metal goods .... . 
 
 IOO 
 
 148 6 
 
 
 IOO 
 
 IA& A. 
 
 
 IOO 
 
 jfir 2 
 
 
 IOO 
 
 167.8 
 
 Salaries of city teachers 
 
 IOO 
 IOO 
 
 180.3 
 
 186.1 
 
 
 IOO 
 
 Q2 . 1 
 
 Purchasing power of all wages 
 
 IOO 
 
 y**o 
 
 172.3 
 
 "This table clearly shows the improvement of the cir- 
 cumstances of those engaged in the individual trades 
 mentioned. Computations can not be readily made of 
 sufficient completeness to show the advance in the wages 
 of those occupied in agriculture, commerce and personal 
 service, but the same upward tendency can be traced. 
 All arts and occupations are governed by the same law of 
 competition under which, as capital increases, it also 
 becomes more and more effective, so that while it secures, 
 decade by decade, an increasing aggregate profit, the 
 ratio of profit to the product is diminished. At the same 
 time, those who perform the manual and mechanical work 
 secure to their own use and enjoyment an increasing pro- 
 portion of a constantly increasing product, while their 
 labor is diminished both in hours and in the intensity of 
 effort. 
 
 4 'Now, sir, ' ' concluded the great student of economical 
 science, turning to Senator Jones, "when the index num- 
 bers I have quoted were prepared by Mr. Sauerbeck and 
 Prof. Falconer, both of them scientists and neither a poli- 
 tician, it was not imagined by either gentleman that they 
 
190 SOUND MONEY. 
 
 would ever be put to the use to which I have put them 
 to-day. 
 
 ''You have said that you are willing to stand or fall 
 by your statement, that prices of commodities have fallen 
 in a demonstrable ratio with silver. 
 
 "What are the facts? 
 
 "That silver, as compared with its price in 1860 has 
 fallen 22.6 per cent. Wages have risen 58.9 per cent, 
 while their purchasing power has increased 72.1 per cent. 
 All prices have fallen 7.7 per cent. And this covers the 
 period from 1860 to 1890, seventeen long years of this 
 time having been spent by the producers of the white metal 
 crying in the wilderness and refusing comfort, because 
 their product was not freely stamped by the government 
 with the lie of ' One Dollar; in God We Trust ' on every 
 37 r /i grains of it! 
 
 "In short, while silver has fallen 22.6 per cent all prices 
 have fallen only 7.7 per cent. It is true that gold has ap- 
 preciated as compared with all commodities, except labor, 7.7 
 per cent and if you compare it with labor it has not appreci- 
 ated at all, but is actually cheaper than in 1860 after ten 
 years of the most terrific gold production the world has ever seen. 
 
 ( ' On the other hand silver has decreased 15 per cent more 
 than all other commodities combined. 
 
 ' ' Which, then, is the stable metal and the best fitted to be 
 our standard of value? 
 
 ' ' To what position does this bring us? That the poor 
 debtor for whose dear sake you gentlemen propose to trail the 
 honor of this Nation in the dirt and to plunge us into hope- 
 less insolvency, is at this minute paying his liabilities in 
 gold of less value than if he had paid them in 1860. 
 
 "Therefore, sir, you can not stand on the statement 
 you advanced in your challenge to me, You fall; and 
 
SOUND MONEY. 191 
 
 with you falls the entire free coinage theory of the appre- 
 ciation of gold and its assumed effect on prices!" 
 
 Tumultuous applause and cheering broke out the mo- 
 ment the speaker paused. They did not even give him 
 time to thank either commission or audience for the flat- 
 teringly close and intelligent attention with which his ad- 
 dress had been received, and the white haired political 
 economist could only bow and smile his thanks while re- 
 ceiving the congratulations of his friends. 
 
 The points he had made were, perhaps, the most im- 
 portant yet for the farmer, the wage worker and the man 
 of fixed income; because he had convincingly shown 
 what they already knew by experience that under the 
 gold standard this country had experienced the most pros- 
 perous period of its existence, and that it was only the 
 agitation conducted by the silver party which had brought 
 this splendid prosperity to an end leaving in its place a 
 legacy of panic, distrust and commercial paralysis. 
 
 Ex-Mayor Hopkins, who had been turning over the 
 pages of Coin's book, now arose and said: 
 
 "Mr. Chairman, it was a shrewd play of the Boston 
 gent to lump things so that nobody could tell what he 
 had in nor what he left out in his prices of things. I 
 could make up a list myself that would knock his silly." 
 
 1 'The first table covered all prices, not a few selected 
 articles; and the wages numbers covered all wages, not a 
 few or many selected occupations, ' ' replied Mr. Atkinson. 
 
 "That's all right, all right, to hear you tell it," per- 
 sisted "Hop," as the "gang" familiarly call him since he 
 is no longer "the whole thing" at the City Hall. "Why 
 don't you come down to facts like this man, Coin, see?" 
 he continued, and this query was the signal for a shout of 
 laughter at which his ex-honor grew angry. "Youse gold 
 
192 SOUND MONEY. 
 
 bugs can laugh," he declared, "but here's this fact the 
 poor old farmer is getting the worst of it right along. 
 He's getting plumb discouraged, and I don't blame him, 
 see? Now take this here poor old jay in Coin's book. 
 Some of youse gazabos might be the very feller that tells 
 him that a bushel of wheat will buy as much as ever it 
 did, so he goes out and tries it and makes a monkey of 
 himself, see? He starts for the depot and has to blow in 
 a nickel for a street car ride, same as '73; he goes up 
 against George Pullman's sleeping car cinch and finds 
 himself taxed the same as '73; he puts up at a first class 
 hotel and the tariff is the same as '73; he puts a message 
 on the wire to the old lady and it costs the same as '73. 
 Then he gets his whiskers pushed off and the barber as- 
 sesses him the same as '73, and off he starts to buy tea 
 and coffee, but the price is still the same as '73. He 
 only got 50 cents for his wheat instead of a dollar as in 
 '73, so he goes home to borrow money at his bank to 
 square himself and finds interest about as high as in '73. 
 I tell you, Bo, if he meets the mug that gave him that 
 song and dance about what his wheat would buy there'll 
 be a scrap in a holy minute. ' ' 
 
 This eloquent and elegant address was received with 
 much applause and laughter and "hizzoner the ex." sat 
 down with the sincere conviction that he had settled the 
 entire question, off hand. 
 
 At this point Commissioner Rafferty whispered to the 
 chairman and the latter then said: 
 
 "If Senator P. V. Fitzpatrick is present we would like 
 to hear from him." 
 
 A little man with a high forehead and gray hair arose 
 in the parquet and, .after ascending to the stage, spoke, 
 in a conversational tone as follows: 
 
SOUND MONL Y. 193 
 
 "Mr. Chairman; I think the story told by the young 
 gentleman from Kensington is full of errors. He and his 
 new political bedfellows have been trying to prove, all 
 along, that prices have fallen so low through what they 
 call 'the crime of '73' that we need an unlimited coinage 
 of 50 per cent discount silver dollars to make them rise up 
 like Willie Riley." 
 
 ''That's what!" interjected the ex-mayor. 
 
 ' 'Then why have you changed the tune so suddenly 
 in trying to show that the farmer pays just the same as in 
 '73?' ' demanded the astute little statesman with provoking 
 calmness, and the audience indulged in an equally pro- 
 voking snicker. "Jawn" P. saw the point and felt it, 
 too, so after waiting a few seconds for the answer that 
 never came Senator Fitzpatrick continued: "If an abun- 
 dant volume of currency will raise values why have prices 
 fallen instead of advancing since 1873 m spite of the fact 
 that we have double the currency per capita now that we 
 had then? Besides that, our circulation now is at par in- 
 stead of at a heavy discount. ' ' 
 
 Again the audience applauded the very pertinent ques- 
 tion which Mr. Hopkins showed no inclination to answer. 
 Perceiving that he was pursuing a popular line of inquiry 
 the senator, Hibernian fashion, continued to answer the 
 ex-mayor by still asking unanswerable questions. 
 
 "If prices have fallen because of a scarcity of gold," 
 he continued, "how do you account for there being al- 
 most as much gold coin in this country now as there was 
 of every kind of money in 1873? How comes it that there 
 is more gold coin in the whole world than ever before and 
 an increase since 1873 of over a thousand millions? Why 
 is the rent of money interest nearly 50 per cent lower 
 than in 1873? With twenty-three times as much gold, as 
 
SOUND MOtiSY. 
 
 much paper money and 337 millions of 16 to i silver dol- 
 lars, when: we hadn't a single dollar in 1873, why have 
 the prices of wheat, silver and cotton declined more than 
 50 per cent? 
 
 "Now about the farmer, the honest yeoman, who is 
 the real backbone of this Nation, we all want to see him 
 prospering because unless he is doing well the whole 
 country is hard up. The amount of produce he raises in 
 excess of what can be consumed in this country must be 
 sold abroad in competition with the surplus products of 
 the world and the law of supply ^nd demand fixes the 
 price of his wheat, cotton and other crops. If wheat sells 
 at 50 cents in Liverpool, under free coinage he will get a 
 50-cent dollar for it here, less the cost of freight, etc. He 
 might flatter himself that he was back to 'dollar wheat' 
 on that account; but as he buys as much as he sells he 
 would be quickly convinced that the rise in prices didn't 
 act quite as he expected. Everything else would rise pro- 
 portionally and his silver dollar would purchase just what 
 50 cents in gold does now. To call 50 cents worth of silver 
 a dollar doesn't make it the purchasing equivalent of a 
 dollar worth 100 cents in gold any more than to call a 
 spool of thread a pound of butter would make the thread 
 a valuable adjunct to the supper table." 
 
 There was another laugh at this droll illustration and 
 Senator Fitzpatrick continued: "To satisfy myself how 
 deeply I have been wronged by this horrible crime of '73 
 I have been searching the Statistical Abstract for 1894. In 
 it I find a few things that would surprise that poor old 
 farmer Mr. Hopkins was telling us about. For instance, 
 in 1873 the average cost of sending a telegram was 62^ 
 cents on which the companies, not then monopolies, made 
 a profit of i9 T V cents. In i8<)4 the average toll was 
 
SOUND MONEY, 195 
 
 cents and the 'monopoly' earned a profit of g-f$ cents. 
 I n 73 vou could only telegraph to 5,740 places. In '94 
 there were 21,166 offices and the miles of wire had in- 
 creased from 154,472 to 790,792. 
 
 "Now about the taxes that poor old farmer found 'the 
 same as '73.' In '73 each of us contributed to the gov- 
 ernment $2.35 to pay interest. In '94 we paid 37 cents. 
 In ' 73 the national government collected from us for all 
 purposes $8. 01 ; in '94 only $4.36. In '80 we paid an as- 
 sessment of $1.98 on every $100. In '90 it was $1.83. 
 For state, county and municipal debt we each paid inter- 
 est on $22.40 in '73, in '90 it was $18.13; an d in the de- 
 cade our public improvements amounted to hundreds of 
 millions of dollars. In '73 each individual owed $50. 52 
 on the National debt. In '94 only $13. 17. It strikes me 
 that the farmer who told that story about his taxes to 
 Mr. Coin was like the boy in the conundrum he lied." 
 
 This slap was greeted with another roar of laughter, 
 mingled with applause, and a big, husky fellow in the 
 first balcony said, admiringly: "That's Fitzpathrick, the 
 bukeseller and, begorra, he ripresints me in the Shtate 
 Sinit, so he do," whereat those in the honest fellow's im- 
 mediate neighborhood indulged in another little smile all 
 their own. 
 
 "In 1870," continued Mr. Fitzpatrick, "we operated 
 52,922 miles of railroad and in '93 177,753 miles, or as 
 much as the mileage of all the rest of the world combined. 
 And here are two points for the farmer, for they affect in 
 his favor the price of the things he sells in 1874 it cost 
 lyf-jj- cents to transport i ton of freight i mile by rail. 
 In 1893 ** cost -fa of a cent! In 1873 toll had to be paid 
 on every bushel of grain passing through the Erie Canal. 
 To-day the toll is abolished. 
 
WAGES AND PRICES. 
 
 Wages 
 1890 
 
 158.9 
 
 Purchasing 
 
 power of 
 
 wages 
 
 1890 
 
 172.1 
 
WEALTH OF NATIONS, 
 
 FRANCE. 
 
 $42 Billions. 
 
 AUSTRIA 
 
 $19 
 Billions, 
 
 ENGLAND, 
 
 $47 Billions. 
 
 UNITED STATES. 
 $65 Billions. 
 
 GERMANY. 
 $32 Billions. 
 
196 SOUND MONE K 
 
 "In 1873 we paid 237,513 teachers in out public 
 schools $76,238,464. In 1893 we paid 383,010 teachers 
 $162,794,148, and our 'infant' industries continue to thrive 
 under a gold standard. 
 
 "In 1873 we issued 134,504 patents and received as 
 fees $703,191. In 1894 we issued 511,744 patents and 
 received as fees $1,187,439." 
 
 "They ought to have been issued free!" shouted a 
 long-haired man in the top gallery. 
 
 ' 'He's a socialist put him out, ' ' suggested ' ' Jawn' ' P. 
 
 "No, I'm not," retorted the man. "I'm an inventor 
 and I'm at work on a new kind of wheels for free coinage 
 men's heads that will set them thinking about something 
 cheaper than silver for money." This was received with 
 a roar of laughter, in which even "Jawn" P. joined heartily. 
 
 "In '73 we had 33,244 post offices," continued the 
 Senator, "and in '94 we had 69,805." 
 
 "I wouldn't do a thing to that patronage if I had it," 
 muttered the ex-mayor. 
 
 "Our post routes covered 256, 210 miles," resumed the 
 witness, "and in '94 they covered 454,746 miles. In '73 
 we only contributed 70 cents apiece toward the support of 
 the men who lost their health while fighting the battles 
 of the Union, or the widows of those men. In '94 we con- 
 tributed $2.07 each and could well afford it. I was a 
 Union soldier myself and, I tell you, it makes me vexed 
 to think of anybody proposing to reduce by one-half the 
 value of the 140 millions of pension money upon which 1 1 
 millions of people in a great measure depend. " By the 
 way the audience applauded this sentiment it might well 
 be believed that this was also their view. 
 
 "But the greatest outrage of all the infamies wrought 
 by the crime of '73," continued the Senator, "is that, 
 
SOUND MONEY. 197 
 
 according to the census returns, the true value of all the 
 property in the United States in 1870 was $30,068,518,000, 
 while in 1890 it had increased to $65,037,091,000. Our 
 population had increased 60 per cent and our property 
 over loo per cent. Nothing to compare with this shameful 
 increase of material wealth in twenty years was ever known 
 before in all the history of the world, and it was accomplished 
 under a gold standard which, to be consistent with Coin's 
 theory, should only have produced tramps, suicides, paupers, 
 starving workmen, weeping women and famished child- 
 ren!" 
 
 After the cheering which followed this complete refu- 
 tation of the ' 'calamity howl' ' had subsided, the statesman 
 continued: "I am a loyal American and a true Irishman. 
 No man will consult his own interests by telling rne to my 
 face that I am a friend of IJngland. This is one of the main 
 reasons why I am opposed to free silver, for Coin tells us 
 that the gold standard will give England the commerce and 
 the wealth of the world. In the same breath he says that 
 the silver standard will make the United States the most 
 prosperous Nation on earth. Both of these statements can 
 not be true, as anybody except an omadhaun can see. 
 We know what the gold standard has already done for 
 Hngland and for this country. If there was anything to 
 be gained by adopting silver, England would have grabbed it 
 long ago. But she is too crafty a trading nation for that; 
 and with the gold standard she will certainly seize the com- 
 merce and wealth of the world if her -most dangerous rival 
 and future commercial superior, the United States, can be 
 induced to play directly into her hands by returning to free 
 coinage and a silver basis, and thus reducing her civilization 
 and degrading her labor along with her money to the leveh 
 of India and China!" 
 
193 SO UND MONE Y. 
 
 If the cheering, which began when the Senator bowed 
 and resumed his seat, did not show that not only had he 
 been a brilliant and convincing witness, but also that he 
 was the most popular man in his senatorial district, it 
 showed nothing. As Senator Fitzpatrick shook hands 
 with Commissioner Rafferty and received his congratula- 
 tions a tall, stoop shouldered man, with grizzled hair and 
 beard, arose in the front row of the balcony and said, 
 "Mr. Clench, may I say a few words?" 
 
 "Certainly," replied the chairman. 
 
 "Platform, platform!" cried many voices in the audi- 
 ence and the man seemed bewildered. 
 
 "The gentleman is requested to come to the stage," 
 added the chairman. 
 
 In a few minutes the tall man, who walked with a 
 slight limp, was seen approaching the commission on the 
 stage and, after a few whispered words with him, Chair- 
 man Clench turned to the audience. 
 
 "Fellow citizens," said he, "permit me to introduce to 
 you Joshua Williams, farmer, of Lake "County, Illinois." 
 
 There was a slight ripple of good-natured applause, and 
 Williams seemed appalled at the sea of faces. However, 
 he hesitated only a moment and then without any useless 
 preliminaries spoke in homely, homespun fashion, as fol- 
 lows: 
 
 "I have been interested in these here meetings, and I 
 have come to every one of them. I think they are doin' 
 a grand work in educatin* the people ! You young men do 
 not appreciate theblessin's you have under the old Flag." 
 
 "Yes, we appreciate the blessing of hard times," cried 
 a free-silverite in the balcony. 
 
 "Hard times?" repeated the old man, "why, sonny, 
 you don't know what hard times be! Back in the fifties, 
 
SOU. YD MONEY. 199 
 
 before Abe Lincoln was elected, we had hard times as 
 was hard. Many's the hard day's work I did for fifty 
 cents, and glad to get it, too. And you young fellers 
 don't know anything about wild-cat and red-dog money, 
 or you wouldn't be makin' so much fuss against good 
 gold coin. 
 
 "But, Mister Clench, though we didn't have a very 
 prosperous country, we all loved it, sir, and when good 
 old Abe called us I shouldered a musket and fit four long 
 yearn for the preservation of the Union. ' ' Here the ap- 
 plause began. "That's why I walk with a limp, ' ' he con- 
 tinued, "and I don't draw any pension, either." This 
 statement literally brought down the house. 
 
 "And I hear you talk about panics as if there were 
 never any panics before," he went on. "Why, don't you 
 know that all countries) in all ages, whether they have gold 
 money or silver, have panics and hard times about every 
 generation? It's the way things be. Sir, progress and 
 prosperity comes in waves. Just now we are gettin' ready 
 for another rush forward. [Applause]. 
 
 "But, Mister Clench, I came here to tell you some of 
 my own experiences with prices. I have heard this 
 young fellow, Mr. Hopkins, talk about the poor farmer. 
 He says-, says he, that the farmer only gets fifty cents for 
 his wheat now and he got one dollar in 1873. That's 
 so. 
 
 "You bet it's so!" interjected "Hop." 
 
 "He says that the farmer pays as much for ridin' in 
 Pullman sleepers as he paid in 1873. P'raps so. I don't 
 ride in 'em, and I don't know any other farmer 'at does. 
 Most of their ridin' is on the plow or reaper. 
 
 "This Mr. Hopkins says, says he, that the farmer 
 pays as much for tea and coffee as in 1873. No he don't! 
 
200 SO UNO MONE V. 
 
 Not by a good deal, and he knows it! He's a grocery- 
 man himself, they tell me. ' ' 
 
 Williams brought his fist down so hard on the table 
 that John Patrick shrank back. 
 
 "Now, I want to tell all you men that wheat isn't the 
 only thing a farmer raises," he continued. "At least it's 
 a mighty poor farmer as raises only wheat. A dry goods 
 man might as well sell only calico! Down in my county 
 we raise wheat and corn and oats, and hogs and cattle and 
 chickens, and lots of other things. And let me say right 
 here that as much money is paid for poultry and eggs 
 every year as is paid for wheat. That's a fact, though it 
 seems queer, don't it? 
 
 "Now in April, 1873, I wanted lots of things for my 
 family and I marketed a big pile of grain and live stock. 
 Here is the list. ' ' He pulled from his pocket a slip of 
 paper, from which he read very slowly and deliberately 
 the following list which Commissioner Hobbs rapidly 
 transferred to the blackboard: 
 
 50 bushels wheat @ $1.17, $ 58.50. 
 
 160 " corn @ .31, 49.60. 
 
 65 " oats @ .24}*, 15.93. 
 
 4 hogs (1,000 Ibs.) >@ .05^, 52.00. 
 
 3 cattle (3,750 lbs.)..@ .05^, 206.25. 
 
 30 bushels potatoes . . . @ .60, 18.00. 
 
 $400.28. 
 
 "Now, Mr. Clench, this all makes $400.28," he con- 
 tinued. "I took the money and bought things for my 
 family. Maria wanted a silk dress, Sally wanted a calico 
 dress and an organ Sally's my daughter. She's married 
 now to Bill Smith's oldest boy. Maria, she said she 
 wanted me to buy some muslin and drillin' , and ingrain 
 
SO UND MONE Y. 201 
 
 carpet and furniture for the spare bedroom, and a Bible, 
 and some milk-pans and a suit of clothes for Johnny 
 Johnny's a lawyer now, over to Galesburg and another 
 for me, and a porcelain-lined kettle. And I wanted a 
 reaper and some nails, and tea, coffee, and sugar. Here's 
 what I paid for them. " As he read off the list Commis- 
 sioner Hobbs put it, also, on the blackboard. 
 *io yards black gros gram silk. . . @ $1.00, $10.00 
 
 10 yards calico @ -n^, 1.15 
 
 40 yards unbleached muslin @-i5^6, 6.25 
 
 10 yards drilling @ .15, 1.50 
 
 25 yards ingrain carpet @ $i-35> 33-75 
 
 i set of bed room furniture 50.00 
 
 i suit clothes 25.00 
 
 i suit clothes 15.00 
 
 i dozen milk pans. 2.50 
 
 i 4-quart porcelain-lined kettle .60 
 
 i reaper 170.00 
 
 i organ 60.00 
 
 i family Bible 9.00 
 
 21 postage stamps @ .03, .63 
 
 50 Ibs. nails 2.25 
 
 10 Ibs. coffee @ .24, 2.40 
 
 5 Ibs. tea @ . 80, 4.00 
 
 50 Ibs. sugar @.i2^, 6.25 
 
 Total $400.28 
 
 "You see that just took all my money. Now when I 
 heard that Mr. Coin had writ somewhere that the farmer 
 is havin' a hard time, gettin' only half as much as in '73 
 for his prodoos and payin' just as much, I thought I 
 would see just how much the grain and live stock I sold 
 
 * Actual wholesale prices in Chicago. 
 
202 SOUND MONEY. 
 
 in ' 73 would bring this very week, and how much could 
 be bought with the money. So this mornin' I looked up 
 the prices. Here's what my prodoos would bring now: 
 
 50 bushels wheat @ .63, 
 
 160 bushels corn @ .48, 
 
 65 bushels oats @ 28^, 
 
 4 hogs (1,000 Ibs.) @ .05, 
 
 3 cattle (3,750 Ibs.) @ .05^, 
 
 30 bushels potatoes @ .68, 
 
 Total $403.48 
 
 ''Where did you get those prices?" demanded the 
 ex- May or. 
 
 ' 'Got them out of the Chicago papers' market reports, ' ' 
 replied the old fellow and his ex-honor sank back with an 
 air of vexation. 
 
 Commissioner Rafferty here whispered to a boy sitting 
 near him and gave him a small coin. The boy vanished. 
 
 "Now, you see, Mister Clench, that I got more this 
 year than in '73. The poor farmer isn't so very bad off, 
 is he?' ' The query was greeted with applause and laugh- 
 ter and "Hop." again interrupted. 
 
 "Why do you take such uneven quantities of grain?" 
 he asked. "Why don't you take more wheat, the most 
 important grain, than the other two?" 
 
 "Because, sir, those were the quantities I raised. Be- 
 sides, the crops of these three grains have about the same 
 proportions in the whole country. I don't know the exact 
 figgers. Maybe Mister Stone can tell us. ' ' 
 
 Chairman Clench here asked Secretary Stone whether 
 he could give the average crops of wheat, corn and oats in 
 the United States during the last five years. 
 
 "lean," replied Mr. Stone, "in one minute." He 
 

 SOUND MONEY. 203 
 
 rapidly made a few figures on the open pages of the* book 
 he held and then said: 
 
 "The department of agriculture gives the average 
 crops during the last five years as follows: 
 " Wheat, 476 million bushels. 
 ' 'Oats, 644 million bushels. 
 "Corn, 1602 million bushels. 
 
 ' 'In comparing prices on a basis of 160 bushels of corn, 
 50 of wheat and 65 of oats, the gentleman certainly gave 
 wheat all the prominence it deserved. ' ' 
 
 "Thank ye, sir," said Farmer Williams. "Then I 
 went around to the stores to see what I could buy the 
 same articles for that I bought in 1873," he resumed. "I 
 have here a list of the present prices: 
 
 10 yards black gros grain silk.@ .50, $ 5.00 
 
 10 calico @ .04^, .45 
 
 40 " unbleached muslin ... @ .05^, 2.20 
 
 10 " drilling. @ .05^, .55 
 
 25 ingrain carpet @ .42^, 10.62 
 
 set bed-room furniture 25.00 
 
 suit of clothes 15.00 
 
 " " " 10.00 
 
 doz. milk pans .- .60 
 
 4-qt. porcelain-lined kettle .18 
 
 organ 30.00 
 
 reaper 70.00 
 
 family Bible 5.00 
 
 21 postage stamps @ .02, .42 
 
 50 Ibs. nails. .73 
 
 10 " coffee @ .18, i. 80 
 
 5 " tea @ .40, 2.00 
 
 50 " sugar @ .05, 2.50 
 
 Wholesale prices in Chicago. $ 1 8 2 . 05 
 
204 SOUND MONEY. 
 
 
 "You see, I could have bought the same articles and 
 
 taken home with me $121.43 to P u t in the bank or pay off 
 a mortgage, if I had one but I haven't!" 
 
 The applause which followed this striking confirmation 
 of Mr. Atkinson's bulk figures was loud and prolonged, 
 after which Mr. Hobbs inquired, whether eggs and milk 
 differed in price. 
 
 "About the same as in '73," said Farmer Williams. 
 "We've got some pretty smart men nowadays there's 
 Edison, for instance but no one has ever invented a 
 machine which will give milk or lay eggs!" Daughter 
 and continued applause greeted this humorous sally. 
 
 "It's machinery as has put down the price of goods, 
 not gold," concluded Farmer Williams, who had "caught" 
 the audience. His testimony, giving the actual facts 
 which had come under his own observation, was far more 
 convincing than yards of statistics or days of argument. 
 During the last few minutes Commissioner Rafferty had 
 been looking over several newspapers, which the boy had 
 brought him. He finally whispered to Chairman Clench 
 and the latter then announced that Commissioner Rafferty 
 would make a brief statement, after which the meeting 
 would stand adjourned. 
 
 Rafferty arose and said, "I wish to say that I have 
 examined the newspapers and find that the prices given 
 by Mr. Williams are the actual prices quoted in yester- 
 day's market.* I propose, gentlemen, that we give three 
 cheers for Farmer Williams, a true patriot, an honest man, 
 
 * These prices were taken from the Inter Ocean of April 29, ^805. Since that 
 time the heavy advances in wheat and other cereals not only strengthen the argu- 
 ment here made, that the farmer is vastly better off under a gold standard, but 
 also corroborate the position that shortness of supply or increase of demand alone 
 raise the prices of commodities which are forced to compete in the markets of the 
 world. The price of silver has not risen, and has nothing to do with the price 
 of wheat. 
 
SOUND MONEY. 205 
 
 and a representative of the real back-bone of our beloved 
 country. ' ' 
 
 The audience arose in a body, and never were cheers 
 given more lustily or with greater spirit. 
 
 A half dozen of brawny fellows rushed on the stage, 
 put Farmer Williams on their shoulders, and marched 
 with him triumphantly up the aisle and then out into the 
 street, amid the repeated cheers of the people. 
 
 The simple minded old man, whose honesty shone out 
 of his keen grey eyes, had put the finishing touch to the 
 elaborate arguments of learned men, and carried convic- 
 tion to every mind which doubted or mistrusted that the 
 figures quoted might have been false or erroneous. 
 
 Farmer Williams was- the hero of the hour. 
 
206 SOUND MONEY. 
 
 CHARTER VI. 
 
 BRINGING IN THE VERDICT. 
 
 For a full week after the exciting events which 
 occurred at the great Auditorium meeting Labor's Commis- 
 sion on Coinage devoted itself exclusively to a thorough 
 discussion of the stenographic report of its own proceed- 
 ings. 
 
 Every argument advanced by the witnesses on either 
 side was carefully considered and voted on. To further 
 aid the three commissioners in the formulation of their 
 report they had procured, in additipn to the books and 
 papers already offered in evidence, copies of the Congres- 
 sional Globe, various public documents, Mulhall's ' 'Dic- 
 tionary of Statistics," "Coin's Financial School," and 
 other works which would aid them in verifying the 
 statistics quoted and justly estimating the worth of the 
 statements made orally before them. 
 
 At length the meeting night of the Federated Trades 
 Unions came around and the little hall in the Industrial 
 World building was again jammed almost to suffocation. 
 When the eagerly expected order of business was arrived 
 at, 'Reports of committees, if any,' Chairman Clench 
 arose and said that the Commission on Coinage was ready. 
 He f.urther stated that Mr. Rafferty had been elected 
 secretary and asked that the usual course be waived and 
 that the secretary of the Commission be allowed to read 
 the report. The request was unanimously approved and 
 thereupon Commissioner Rafferty mounted the platform 
 and read as follows: 
 
SOUND MONEY. 207 
 
 "The Commission to inquire into the feasibility of this 
 Nation freely coining silver at a ratio of 16 to i and the 
 effects of such a course on wages and prices appointed by 
 your honorable body April 22, 1895, reports as follows: 
 
 ' "The inquiry partook of the nature of a running de- 
 bate in which Harvey Coin, Senator Jones, of Nevada, 
 and ex-Mayor Hopkins, of Chicago, sustained the free 
 silver side and Clinton B. Evans, Adlai T. Kwing, Presi- 
 dent Baker and Secretary Stone, of the Board of Trade, 
 Edward Atkinson, of Boston, Colonel Forrest, of the 
 Daily News, Richard W. Knott, of the Louisville Evening 
 Post, Edward Pardridge, Professor L,aughlin, Robert L. 
 McCabe, Sigmund Zeisler, Jacob W. Richards, State Sena- 
 tor Fitzpatrick, Reuben Haye and Joshua Williams op- 
 posed the proposition. 
 
 ' 'The first matter of importance in the evidence we 
 noted was that every principal argument advanced by the 
 advocates of free coinage was based on statistics the 
 same statistics as are to be found quoted in 'Coin's Finan- 
 cial School.' These figures, credited by Mr. Coin to 
 'Mulhall's Dictionary of Statistics,' the 'Statistical 
 Abstract of the United States' and the 'Treasury Report' 
 for 1 894 were proven to be falsified and forged in every 
 instance. 
 
 ' 'We respectfully refer you to the evidence of Messrs. 
 Evans, Baker, Stone and Knott and to the authorities 
 themselves. 
 
 "This fact disposes of all the theories of free silver 
 coinage so far as they are based upon alleged statistics but 
 we have thought it proper to take up the allegations of 
 Mr. Coin one by one and state our conclusions based on 
 the result of our investigation. 
 
 "It is alleged that silver is the money of the constitu- 
 
0$ SOUND MONEY. 
 
 tion and that 371^ grains of it was constituted the unit 
 of value. From the irrefutable evidence of Mr. Ewing, 
 supported by the earliest records of Congress, we find that 
 one dollar, in the abstract, was constituted our unit of 
 value; that the metal in which it was first expressed was 
 copper; that gold, silver, copper and paper are equally 
 the money of the constitution, and that any other money 
 material may be added by Congress at any time. 
 
 "It is alleged that we are in the clutches of the 'Brit- 
 ish Octopus' and that England draws annually from us 
 200 millions in gold. From the evidence of Messrs. 
 Evans, Fitzpatrick, Knott, McCabe and others we find 
 that this statement is absolutely without foundation in fact. 
 89 millions in gold was the largest net export from this 
 country in any year, while the net exports of gold to Eng- 
 land during twenty years averaged less than $6,000,000 
 annually. 
 
 "It is alleged that the fall in prices has been caused 
 by an appreciation in the value of gold under the gold 
 standard. From the evidence of Messrs. Atkinson, 
 Evans, Fitzpatrick, Pardridge, Knott, Forrest, Williams, 
 Haye and McCabe we are convinced that improved machin- 
 ery, better methods of transportation, greater competition, in- 
 creased supply and greater general economy have caused the 
 reduction, which has been entirely to the benefit of the farmer , 
 wage earner and man of fixed salary or income. 
 
 "It is alleged that the gold standard has caused hard 
 times, destitution and loss of employment to workingmen, 
 decreased values to farmers; and created tramps, suicides, 
 and millionaires. From the evidence presented by the 
 above named gentlemen and our own experience we find 
 -that the hours of labor have been shortened, the wages of 
 labor have been largely increased and, owing to the fall in 
 
SOUND MONEY. 209 
 
 prices of manufactured articles, the purchasing power of 
 wages has almost doubled. 
 
 It is alleged that the value of gold has appreciated. 
 The evidence of Messrs. Atkinson, Evans, Forrest, 
 Williams, Fitzpatrick, Knott and others, convinces us that 
 as gold measures the value of commodities , wages and lands 
 so wages, lands and commodities measure the value of gold. 
 Commodities have fallen 8 per cent, wages have increased 
 58 per cent and lands have increased 90 per cent in value, 
 while our population has increased 61 per cent. 
 
 ' ( It is alleged that under the gold standard we have 
 entered upon a season of national decay, which will 
 shortly deliver our commerce into the hands of England. 
 We find from the evidence presented by Messrs. Fitz- 
 patrick, Evans, Knott and others, that in twenty years 
 our population increased 60 per cent, and our material 
 wealth over 100 per cent. Furthermore, that England is 
 our most profitable customer, buying from us as much 
 as all the rest of the world put together and selling us 
 only one-fifth as much as we buy from the rest of the 
 world. 
 
 "It is alleged that we have not sufficient volume of 
 currency and that only the free coinage of silver will sup- 
 ply us with enough. From the evidence of Messrs. For- 
 rest, Fitzpatrick, Evans and Knott, we are convinced that 
 we have more than sufficient money to conduct our business, 
 more than any of the other great nations, excepting France, 
 which country is by no means the most prosperous. We could 
 not use more money even if we had it. 
 
 " It is alleged that there is not sufficient gold in the 
 world for money purposes. From the evidence of Messrs. 
 Evans, Knott, Forrest, Fitzpatrick and McCabe, we are 
 convinced that there is no scarcity of gold, and that the 
 
210 SOUND MONEY. 
 
 annual production of the metal is fully adequate to the 
 world's needs. 
 
 ' 'It is alleged that there is no over-production of silver. 
 From the overwhelming evidence of all the witnesses, 
 even from the arguments of Mr. Coin himself, this is mani- 
 festly untrue. The decline in the value of silver, and its 
 consequent loss of prestige as a money metal, has not been 
 caused by its demonetization, but its demonetization has been 
 caused by its over-supply and the increased production of 
 gold which, because it contains more value in less bulk, is 
 preferred for coin by all civilized nations. ' 
 
 "It is alleged that through the so-called demonetization 
 of silver by this and other countries, 1871-1874, the price 
 of silver has fallen, and that remonetization would restore 
 its value. Mulhall's statistics show that in 1873 the 
 world's silver coinage amounted to 2,500 million dollars. 
 By 1890 it had increased to 3, 100 millions, and the Direc- 
 tor of the Mint shows by exact figures that 1891-1893, 
 inclusive, added $429,201,000 to this stock. Therefore, 
 since demonetization in 1873, the world has coined far more 
 than i ,000 millions in silver, or 25 per cent more in the 20 
 years following demonetization than in the 32 years pre- 
 ceding that act. 
 
 "It is alleged that it would be right and proper to 
 allow all debtors to scale their debts 50 per cent, because 
 the price of silver has fallen to that extent. This course 
 is further justified by the statement that the debts of this 
 Nation are owed to English capitalists and American 
 millionaires. From the unanswerable testimony of Sig- 
 mund Zeisler, Col. Knott, Col. Forrest, Clinton B. Evans 
 and others, we are convinced that this is not even approxi- 
 mately true. A vast proportion of the mortgage and other 
 debts are owed to our own people in humble or moderate cir- 
 
SOUND MONEY. 211 
 
 tumstances . We are the richest nation on earth and our 
 own chief creditor. 
 
 We believe that the success of the free coinage party 
 at the polls would be the starting point of the most terri- 
 ble financial panic ever known; that creditors would im- 
 mediately demand their money in gold, to prevent loss by 
 impending legislation; that bank doors would be stormed 
 by depositors demanding gold; that trade and industry 
 would be paralyzed, labor thrown out of employment and 
 prices rushed up, simultaneously, 100 per cent. It would 
 mean commercial chaos and such national v want and suffer- 
 ing as our people have never yet endured. 
 
 "Since the demonetization of silver, so-called, we 
 have had the greatest prosperity we, as a Nation, have 
 ever enjoyed. Our progress in education, wealth and 
 civilization have been unprecedented. The condition of 
 the toiling masses has been vastly improved and that im- 
 provement continued up to the very moment that fear of 
 a silver basis frightened capital, home and foreign, out of 
 the channels of our prosperity. 
 
 "For these and further reasons, which can only be 
 fully appreciated by a perusal of the evidence submitted 
 before this commission, we are unanimously convinced, 
 and desire to speak with all the emphasis of which we are 
 capable, that for this country to attempt single-handed 
 the free and unlimited coinage of silver at a ratio of 1 6 to 
 i, while we are only able to circulate 100 millions of sil- 
 ver dollars out of the 500 millions we have in stock; while 
 we have uncoined silver bullion lying in the treasury suf- 
 ficient to coin 200 millions more; while silver is being pro- 
 duced at the rate of 200 millions annually, which produc- 
 tion could easily be increased to 400 millions within two 
 years; and while there is in the world a stock of uncoined 
 
212 SOUND MON&V. 
 
 silver bullion sufficient to mint over 3,000 millions of 16 to f 
 dollars, would be an act of national folly unprecedented in 
 the history of the world! 
 
 "What of the countries which have clung to the silver 
 basis? What of the South American republics, Mexico, 
 India and China? What is the condition of their labor 
 to-day? What of their farmers? How does the condition 
 of the masses of their people compare with the condition 
 of the masses of ours? Is their labor on a social level 
 with the labor of the United States? 
 
 "Do we know aught of the cheap labor of India, China 
 and other Asiatic nations except to insist upon such legis- 
 lation as will prevent it entering this country to compete with 
 the toiling sovereigns of the American people? 
 
 ' 'It is to this degredation that we are invited by the ad- 
 vocates of free silver. Labor content to exist upon a wage 
 of twelve to twenty cents a day as in Mexico, or eight to 
 twelve cents a day as in India and China! Farmers happy 
 if, by toiling in the fields with wives and children from sun- 
 rise to sunset, they can insure to their families sufficient oj 
 the cheapest grade of cotton cloth to cover their nakedness 
 and a diet of rice, roots and rats! 
 
 "All of which is respectfully submitted: 
 
 MARTIN CLENCH, Chairman. 
 
 JAMES HOBBS. 
 
 MICHEL RAFFERTY, Secretary. 
 
 Such a storm of cheering as was never before heard 
 within those walls broke forth upon the conclusion of the 
 report, and continued for several minutes. The report 
 was then adopted without a dissenting voice and together 
 with the full proceedings of the commission was ordered 
 printed for the information of the working men, farmers 
 and business men of the country. 
 
PROGRESS UNDER TWO MONETARY STANDARDS. 
 
INDEX. 
 
 Act of 1 785, ....... 36 
 
 Act of 1786, ...... 39 
 
 Act of 1792, ....... 43 
 
 Act of 1834, ...... 86 
 
 Act of 1853, . . . . . . . 87, 90 
 
 Act of 1873, - 124, 125, 126 
 
 Act of 1890, ....... 114 
 
 Act of 1893, ...... 114 
 
 Atkinson, Edward, testimony of, . . . 127, 175 
 
 Baker, W. T., testimony of, .... 171 
 
 Banks, a blessing, . . . . . .128 
 
 Bank Checks, enormous use of, . . . 144 
 
 Banks not owned in Wall street, .... 134 
 
 Banks, national, by whom owned, etc., . . 134, 135 
 
 Banks, savings, how managed, etc., . . . 134, 135 
 
 Bankers, what they do not want, . . . 110 
 
 Bimetallism, ....... 107 
 
 Bimetallism, International, .... 133 
 
 Bimetallic standard established, .... 39 
 
 Bond sales, ....... 121, 122 
 
 Bullion, amount of, at various periods, ... 76 
 
 Cavalry horse illustration exposed, . . . 113 
 
 Capital, eager to invest, . . . . 122, 130 
 
 Census returns falsified, .... 152, 153, 154 
 
 Circulation of silver, . ... . . .62 
 
 Circulation, increased, effect of, . . . . Ill 
 
 Cloths and clothing, decline in price of, . . 186 
 
 Coin and his employers, . . . . .26, 117 
 
 Coin convicted of lying, 66, 79, 84, 93, 97, 115, 119, 120, 141, 146, 
 
 148, 152, 154, 161, 165, 166, 167, 193, 194, 195 
 
 Coin's "estimates" . ... 95, 152 
 
 Coin expelled from decent society, . . . 170 
 
 Coin forges and falsifies figures, 49, 67, 78, 79, 145, 146, 147, 148 
 Coin's gold and silver cubes, . . .95, 145, 146, 147 
 
 Coin publicly disgraced, ..... 168 
 
 Coin repudiates government records, . . . 132 
 
 Coin, stump speech by, ..... 9 
 
214 INDEX. 
 
 Coinage act of 1792, . . . . 37 
 
 Coinage act of 1853, ...... 90 
 
 Coinage at various periods, .... 76 
 
 Coinage of gold and silver compared, ... 80 
 
 Coinage of U. S. since 1793, ' . . . . 91, 92 
 
 Coinage of U. S. under Sherman act, . . . 114 
 
 Coinage of Mexico, ..... Ill 
 
 Commission on Coinage appointed, . . . . 14 
 
 Commission on Coinage, First day's proceedings, . 30 
 
 Commission on Coinage, Second day, ... 47 
 
 Commission on Coinage, Third day, ... 68 
 
 Commission on Coinage, Fourth day, . . . 106 
 
 Commission on Coinage, Fifth day, . . . 156 
 
 Commission on Coinage, Report of, . . . . 206 
 
 Commerce of the U. S. . . . . 139, 140 
 
 Commerce with England, .... 120, 140 
 
 Commerce of four leading nations, . . . 142 
 
 Commercial ratio, how maintained, . . . 73, 80 
 
 Confidence, public, restored, .... 13, 131 
 
 Congress of Confederation, .... 38 
 
 Conspiracy of Capital, . . . . 70, 116, 117 
 
 Copper, made money metal, . . . . 39, 40 
 
 Crops, average cereal 1890-1895, . . . .203 
 
 Creditors of the Nation, .... 137, 138 
 
 Crime of 1873, . . . .49, 51, 88, 116, 124, 125, 126 
 
 Currency, at various periods, .... 143, 144 
 
 Currency kept at par, . . . . . 121 
 
 Currency, too much, .... 143, 144 
 
 Currency, green back, ..... 129, 130 
 
 Currency, expansion of, . . . . . 143, 144 
 
 Currency of four leading nations, . . . 142 
 
 Currency, a safe, . . . . . . 112 
 
 "Daddy" dollars, ...... 51 
 
 Debts of the Nation, .... 137, 152, 154 
 
 Debts of the world, . . . . .95 
 
 Debts, scaling of, . .... 190 
 
 Decimal system established, ..... 37 
 
 Demonetization of silver, . . 56, 58, 59, 69, 85 
 
 Dollar, Mexican, value of . . . .111 
 
 Education, statistics of since 1873, . . . 196 
 
 Effect of bank checks, etc., ..... 144 
 
 England, American investments of, . . 138 
 
 England annual interest in gold, . 117, 118, 119, 120, 138, 139 
 
 England, commercial supremacy of, . . 197 
 
 England, money of, . 
 
 England, trade of, . 
 
 England, war with, ...... 140 
 
 Evans, C. B., testimony of, . . 49, 69, 85, 139, 167 
 
 Ewing, Adlai T., testimony of, .... 35, 89 
 
INDEX. 215 
 
 Exchanges, how effected by money, . . . 103 
 
 Fitzpatrick, Senator P. V., testimony of, . . 192 
 
 Foreign trade of U. S., ..... 139, 140 
 
 Forrest, Col., testimony of, . . . . 86, 102, 141 
 
 France, condition of, . . . . . 104 
 
 Free coinage, of copper, ..... 40, 41 
 
 Free coinage of silver, confiscation under, 102, 136, 137, 173 
 
 Free coinage of silver, wages under, . . . 179 
 
 Free coinage of silver, effects of, . 60, 136, 140, 173, 194 
 
 Free coinage of silver, effect on commercial ratio, . 80 
 
 Free coinage of silver, failure of, . . . 86, 87 
 
 Free coinage of silver, folly of, . . 103, 123, 133, 151, 211 
 
 Free silver party, objects of, . . . . .10 
 
 Freight charges, reduction in, . . . 195 
 
 French ratio disturbance, ..... 85 
 
 Grain, decline in price of, . 185 
 
 Gold, accumulation of, . . . . .115 
 
 Gold and silver in circulation, 1892, ... 93 
 
 Gold and silver, total value, ..... 76 
 
 Gold, appreciation of, . . . . 113 
 
 Gold, as a standard, ..... 107, 108, 190 
 
 Gold, as a medium of exchange, .... 109 
 
 Gold, at a premium, . ... . . 104, 105 
 
 Gold, bank's interest in, . . . . . 128 
 
 Gold, money lenders' interest in, . . .121 
 
 Gold bonds, . . . . .144, 145 
 
 Gold bullion and coinage, ..... 76 
 
 Gold coin, increase of, ..... 193 
 
 Gold, Coin's cube of, . . . . . .145 
 
 Gold, exports from U. S., . . . . 118, 119, 120 
 
 Gold, fluctuation in value of, . . . . . 161 
 
 Gold, increase in, since 1873, .... 95 
 
 Gold, increase in world's stock, . . . .112 
 
 Gold, how it should be de-hoarded, . . . 144 
 
 Gold, most durable for coinage, .... 52 
 
 Gold, national bank reserves of, . . . . 144 
 
 Gold production 1841-1893, ..... 72 
 
 Gold reserve of the U. S 144,145 
 
 Gold reserve, French, ...... 103 
 
 Gold standard, when adopted, .... 125 
 
 Gold standard, wages and prices under, . . 179, 180, 181 
 
 Gold standard, prosperity under, . . . 181 
 
 Gold, uses of, . . . . . . .109 
 
 Gold, we command the world's, .... 130 
 
 Gold, world's stock of, ..... 55 
 
 Haye, Reuben, testimony of, ... 60, 130, 152 
 
 High prices, 129 
 
 Hopkins, John P , 191,192 
 
 Implements, 4ecline in prfge. of, , f 187 
 
216 INDEX. 
 
 Increase of gold and silver compared, . . 76, 77, 78 
 
 Index numbers, use of, . . . . 177 
 
 Index numbers, Atkinson's, unprejudiced, . . . 189 
 
 India, coinage of, . . . . . 151 
 
 Inflation in France, . . . . . . 104 
 
 Inflation in the U. S., ..... 143 
 
 Interest, reduction of, . . . . . . 193 
 
 Iron and steel industries, ..... 187, 188 
 
 Jones, of Nevada, quoted, . . . . .71 
 
 Jones, speech of, . . . . . 171 
 
 Jones' challenge to Atkinson, .... 175 
 
 Kuott, R. W., testimony of, .... 93, 134 
 
 Kohlsaat, H. H., testimony of, . . . 160,161 
 
 Labor, degradation of ... 54, 105, 212 
 
 lyaughlin, J. L., testimony of, ... 86, 123 
 
 McCabe, Robert !,., testimony of, . . . . 106 
 
 Meat, prices of, ...... 
 
 Metals, decline in price of, . . . . 187 
 
 Mint, established, ..... 42 
 
 Money, cheapness of, ..... 103 
 
 Money, fundamental principles of, 
 
 Money, in circulation, ..... 102, 141 
 
 Money, increase of since 1873, . . . 103, 142, 193 
 
 Money, credit, value of, . . ; . .112 
 
 Money of the constitution, . . . .33, 207 
 
 Money of the people, ... . 53, 61, 62 
 
 Money of various countries, 
 
 Money of U. S. as compared with other nations, 
 
 Money, test of value of, . . . . 129 
 
 Money, unit, ..... . 39, 4 
 
 Money, only uses of, 
 
 Money, value of paper, etc., . . . 112, 141, 142 
 
 Money, primary, fallacy exploded, 
 
 Monetary standards, various, 
 
 Oriental demand theory proved, 
 
 Panics, ...... 199 
 
 Panic of 1873, 
 
 Panic of 1893, .... 120, 128, 129, 131, 176 
 
 Pawnbrokers, capital of, ..... 153 
 
 Prices before and after demonetization, 178, 193, 200, 201, 202, 203 
 
 Prices, falsely quoted by coin, 
 
 Post office, increase since 1873, . 
 
 Ratio, commercial, how maintained, . . 80, 82 
 
 Ratio, legal, can not be maintained, . 85, 86 
 
 Ratio in China, ..... 
 
 Ratio, Coin's absurd ideas of, 
 
 Ratio, increased to 16 to 1, 
 
 Repudiation, .... 
 
 Remonetization, ..... 
 
INDEX. 217 
 
 Rich man's money, . .... 52 
 
 Richards, J. W., testimony of, .... 160 
 
 Savings banks, depositors, etc., . . . 134 
 
 Sherman act, failure of, .... 114, 122 
 
 Silver, added to coinage since 1873, . . 95, 130, 210 
 
 Silver, annual value of, ..... 128 
 
 Silver and gold in the world, 1890, . . 63, 145, 147, 148 
 
 Silver and gold in the world, various periods, . . 76 
 
 Silver basis, effect of, . . . . 131 
 
 Silver bullion and coin, various periods, . . 76, 210 
 
 Silver coinage, 1801-1850, ..... 80 
 
 Silver coinage, 1873-1893, ..... 210 
 
 Silver coinage in France, 40 years, ... 85 
 
 Silver compared with gold, by weight, . . .74, 75 
 
 Silver's decline in value, . . .57, 58, 72, 75, 82, 190 
 
 Silver, demand for, ...... 80, 81 
 
 Silver, demontizatipn of, . . . 56, 58, 69, 83, 92, 211 
 
 Silver dollar established, ..... 39 
 
 Silver, evil effect of coining too much, . . . 122 
 
 Silver, imports of into France, .... 85 
 
 Silver, imports of into Asia, .... 85 
 
 Silver industry, men employed and value, . . 128 
 
 Silver in circulation, '..... 62 
 
 Silver, increase since 1873, ..... 95 
 
 Silver, mined at a loss, . . . . 64, 65 
 
 Silver, over-production of, . 71, 72, 113, 114, 150, 151, 152, 210 
 Silver production, 1850-1870, .... 71 
 
 Silver production, 1891-1893, . . . . . 64, 65 
 
 Silver, remonetization of, . . . . .110, 210 
 
 Silver propaganda, frauds of, .... 131 
 
 Silver, why commercial ratio of was maintained, . 73 
 
 Silver senators prefer gold, ..... 131 
 
 Standards of weight and measure, . . . 106, 107 
 
 Stone, George F., Testimony of, .... 164 
 
 Table of gold and silver coin and bullion, . . 76 
 
 Table of production of gold and silver, 1851-1893, . . 91 
 
 Table of production of gold and silver, 1801-1893, . 79 
 
 Table, Trade and money of four leading nations, . . 142 
 
 Table, Average export prices falsified by Com, . 166 
 
 Table, Average export prices of corn, oats, cotton and 
 
 silver, 1870-1895, ...... 174 
 
 Table of prices, wages and purchasing power, 1860-1890, 178 
 
 Table of wages in 1860 and 1890, . . . .189 
 
 Tables of produce prices, ..... 200, 202 
 
 Tables of Farmers' supplies, . 201, 203 
 
 Taxes, reduction in, ... 
 
 Telegraphing, reduced cost of, .... 194 
 
 Treasury, raids on, ..... 143 
 
 Unit of value, Coin's argument, . . .31 
 
218 INDEX. 
 
 Unit of value was abstract, . . ' . 45 
 
 Unit of value established by Act of Congress, . . 35, 36 
 
 Value of gold and silver, various periods, . . 76 
 Value of bullion and coinage, .... 76 
 
 Value of silver produced annually, . . . 128 
 
 Value of all property in U. S., . . . .152 
 
 Value not fixed by law, . . . . . Ill 
 
 Wages in 1865, ...... 129, 130 
 
 Wages in the fifties, ..... 198, 199 
 
 Wages, how affected by cheap money, . . 177, 178, 179 
 
 Wages, under the gold standard, . . . 188, 189 
 
 Wealth, under gold standard, .... 197 
 
 War with England, . . . . . .140 
 
 Wheat, illustration exposed, . . . . 115 
 
 Wheat, decline in price of, . . . . 159, 184 
 
 Williams, Joshua, testimony of, . . . . 198 
 
 Yard stick illustration, . . . .110 
 
 Zeisler, Sigmund, testimony of, . . . . 172 
 
GOLD AND SILVER. 103 
 
 HISTORY OF GOLD AND SILVER. 
 
 In remote antiquity the value of silver seems every- 
 where to have been equal to that of gold. In some 
 countries, as for instance, Ancient Germany and Ancient 
 Arabia, silver was more valuable than gold. As late as 
 the 17th century of our era gold and silver were valued 
 equally in Japan. In the Orient, generally, the ratio 
 between the two metals was less than in Europe, even 
 down to the middle of the 19th century, and the result 
 was the absorption of immense quantities of silver in the 
 East. 
 
 1594 B. C. Cadmus mined gold in Thrace. 
 1400 B. C. Gold and silver used as money in Egypt, 
 
 India and Arabia. 
 1100 B. C. The Phoenicians worked the gold placers of 
 
 the Guadalquiver in Spain. 
 480 to 206 B. C. Silver mines of Spain were worked by 
 
 the Carthaginians. 
 450 B. C. Herodotus states the ratio to be 13 to 1 in 
 
 Greece. 
 330 B. C. Alexander the great won by the conquest of 
 
 Asia over $300,000,000 of gold and silver. 
 60 B. C. Ratio in Rome 9 to 1. 
 
 14 A. D. Amount of precious metals in the civilized 
 world estimated at $1,800,000,000. The drain to the 
 East began at this period. 
 650 A. D. In Arabia, ratio 6J; in France, 10. 
 800 A. D. Total supply of precious metals about $165,- 
 000,000. At this time the Moors reopened the mines 
 in Spain. Mines discovered in Saxony, Harz Moun- 
 tains and in Austria. Supply of precious metals 
 remained about stationery until the discovery of 
 America. 
 
 1257. Gold coins first introduced in England. 
 1442. Goncales Baldeza returned from a voyage to West 
 Africa, and brought with him the first gold from the 
 western coast of that continent. 
 
104 ..OLD AND SILVER. 
 
 1471. The silver mines at Schneeberg, Saxony, were first 
 worked; up to 1500 the yield is estimated to have 
 been more than 160 tons of silver, but after that year 
 the output decreased rapidly. 
 
 1492. Discovery of America by Columbus, whose chief 
 object of search was gold, which he found in consid- 
 erable quantity among the natives of the islands he 
 reached. 
 
 1497. In Spain the ratio was lOf to 1. 
 
 1516. The silver mines at Joachimstahl, Bohemia, were 
 in flourishing condition at the beginning of the six- 
 * teenth century. In 1516 some 8,000 miners were 
 employed there. 
 
 1521 . Conquest of Mexico by Fernando Corte*s. 
 
 1522. The first silver sent to Europe from the mines of 
 Mexico was obtained from Tasco, discovered by the 
 Spaniards this year. These mines, together with 
 those of Pachuca, are considered the oldest in Mexico, 
 some of them having been long worked by the Aztecs 
 at the time of the arrival of the Spaniards. 
 
 1527. There are no documents to show when silver- 
 mining was first begun at Przibram, Bohemia, but, 
 according to the municipal records, a concession to 
 reopen the mines was granted in 1527. 
 
 1532. Conquest of Peru by Francisco Pizarro. 
 
 1537. Gold-mining was begun by the Spaniards in New 
 Granada (Republic of Columbia). 
 
 1540. Work was begun by the Spaniards in the silver 
 mines of Zacatecas, Mexico. 
 
 1545. Discovery of the famous silver mines of Potosi, 
 Bolivia. 
 
 1548. First discovery of silver at Guanajuato, Mexico. 
 
 1555. The silver mines at Sombrerete, Zacatecas, Mexico, 
 began to produce. 
 
 1557. Invention of the patio process of silver amalgama- 
 tion by Bartolome de Medina, of Pachua, Mexico. 
 
 1571. The Huancevalica quicksilver mines in Peru first 
 began to produce in noteworthy quantity. This was 
 an important event, as an abundant supply of mer- 
 cury for the amalgamation of Potosi ore was thereby 
 obtained. 
 
 1574. The patio process was introduced in Peru. 
 
GOLD AND SIL VER. 105 
 
 1575. Discovery of the silver mines of Oruro, Bolivia. 
 
 1577. The placers of Brazil were first discovered this 
 year, but they were not actively worked until 1674, 
 and their product did not begin to be important un- 
 til 1695. 
 
 1590. Invention of the system of copper-pan or "cazo" 
 amalgamation by Alonzo Barba, Potosi, Bolivia. 
 
 1609. Holland maintained from 1609 to 1816 a silver 
 monetary standard, giving gold a nominal valuation 
 at a ratio 14.7 to 1. 
 
 1623. Discovery of silver at Kongsberg, Norway; the 
 works at that place were established the same 
 year. 
 
 1630. Discovery of the famous silver mines of Cerro de 
 Pasco, Peru. 
 
 1632. Discovery of the silver mines of Batopilas. Chi- 
 huahua, Mexico. 
 
 1633. Invention of the aludel furnace for the reduction 
 of quicksilver, by L. S. Barba, a Peruvian; this was 
 the first efficient furnace devised for this purpose. 
 
 1666. Discovery of the silver mines of Cusihuiriachic, 
 
 Chihuahua, Mexico. 
 1688. Silver was the legal measure of value in Hamburg, 
 
 a city of extensive commerce, from 1688 until recent 
 
 times, but gold was also coined at a ratio of 14| to 1. 
 1695. The rich placers of Minas Geraes, Brazil, began to 
 
 produce largely. 
 1702. Establishment of the school of mines at Freiberg, 
 
 Saxony. 
 1704. Discovery of the silver mines at Santa Eulalia, 
 
 Chihuahua, Mexico. 
 Discovery of silver at Nertschinsk, Siberia, and the first 
 
 regular mining of precious metals in that country was 
 
 begun. 
 1710. The metallurgical works at Freiberg, Saxony, was 
 
 begun. 
 1717. From 1717 to 1816, the legal ratio between gold 
 
 and silver in England was 15i to 1. 
 1737. Discovery of gold near Voitsk, Government of 
 
 Archangel, Russia. 
 1745. Important discovery of gold-bearing quartz on the 
 
 Beriozofsk Kiver, near Ekaterinburg, in the Ural, 
 
106 GOLD AND SILVER. 
 
 Russia. Gold-mining was also commenced on Snake 
 Mountain, in the Altai Range, Siberia. 
 
 1762. Discovery of the great silver bonanza of Real del 
 Monte, Mexico. 
 
 1771. Discovery of the rich silver mines of Hualgayo, 
 Peru. 
 
 1774. The first placers in the Ural were discovered this 
 year, quartz lodes having been opened nearly thirty 
 years previous. 
 
 1778. The silver mines of Catorce, Mexico, were opened 
 and proved to be rich. 
 
 1783. Zambrano discovered the famous silver mines of 
 Guarisamey, Durango, Mexico. 
 
 1786. Prior to the Constitution of 1789, the Congress of 
 the American States had, in 1786, established a double 
 monetary standard with a ratio of 15 to 1, the dollar 
 having been established as the monetary unit in 1785. 
 
 1790. Barrel amalgamation was introduced at the metal- 
 lurgical works at Freiberg, Saxony. 
 
 1792. The famous bonanza at Sombrerete, Zacatecas, 
 Mexico, was discovered this year, the mines at that 
 place having been worked for more than two cen- 
 turies. 
 
 The legal ratio between gold and silver in the United 
 States was made 15 to 1, by the act of Congress cre- 
 ating a mint. 
 
 1793. Mules and horses were used in Mexico, for the 
 first time, for mixing the pulp, mercury, and chem- 
 icals in the patio process, saving 75 per cent in the cost 
 of this branch of working; prior to this time, the 
 operation had been performed entirely by human 
 labor. 
 
 1798. Discovery of the great bonanza (silver) at Ramos, 
 
 Mexico. 
 1803. France adopted the double monetary standard at a 
 
 ratio of 15* to 1; previous to the Revolution, the 
 
 ratio between gold and silver in that country had 
 
 been 15 to 1. 
 1805. The gold mines of the Ancosta district, Bolivia, 
 
 commenced to yield. 
 1810. Discovery of silver at El Refugio, Chihuahua 
 
 Mexico. 
 
GOLD AND SILVER. 107 
 
 18io. Discovery of the Melkowa placers, Siberia. 
 England adopted the gold standard by act of Parliament 
 
 of this year. 
 Silver was the sole standard in Holland until this year, 
 
 when the double standard was adopted at a ratio of 
 
 15.873 to 1. 
 1821. Resumption of specie payments in gold by the 
 
 Bank of England. 
 1824. Discovery of silver at Palmarejo, Chihuahua, 
 
 Mexico. 
 The silver mines of Fresnillo, Zacatecas, Mexico, were 
 
 opened. 
 
 1829. Discovery of gold mines in Georgia; first mining 
 excitement in the United States. 
 
 1830. Discovery of the placers of the Altai Mountains, 
 Siberia. 
 
 Discovery of the silver mines of Guadalcanal, Spain. 
 
 1832. The silver mines of Chanarcillo, near Copiapo, 
 Chile, were opened. 
 
 1834. The legal ratio betwen gold and silver in the 
 United States was made 16 to 1. 
 
 1837. The St. John del Key Mining Company, operating 
 the Morro Velho gold mine in Brazil, commenced to 
 produce largely. 
 
 1839. Count Strzelecki is said to have found gold in New 
 South Wales in 1839, but in deference to the wishes 
 of the Governor, Sir G. Phippff, the discovery was 
 kept secret, the colony being then a penal one. In 
 1841, Rev. W. Clark also found gold, and in 1847 he 
 called the attention of the colonists to the auriferous 
 character of the country. The value of the diggings 
 was not realized, however, until Hargreaves made 
 his discovery in 1851. 
 
 1843. The Augustin process of working silver ores was 
 introduced at the Gottesbelohnung Hutte, near Mans- 
 feld, Germany, and later in the year at the Freiberg 
 
 Discovery of the silver mines of Hien de la Encina, in 
 Guadalajara, Spain. 
 
 1847. Holland again adopted the silver standard. 
 
 1848. On January 19, Marshall discovered gold at Co- 
 loma, Cal. This find started the rush of gold-seekers 
 
108 GOLD AND SILVER. 
 
 to the Pacific Coast, and by the end of the year 
 * numerous discoveries of the precious metal had been 
 made in various portions of the State, notably along 
 the American and Feather rivers. 
 
 The 'Ziervogel process for treating silver ores was in- 
 troduced at Freiberg, superseding the Augustin 
 process. 
 
 1849. Discovery of gold in the bed of the Yuruari River, 
 Venezuela, but the region did not become the scene 
 of great operations until several years later. 
 
 Discovery of gold in Gold Canon, Nevada; an important 
 event, as it eventually led to the discovery of the 
 Comstock lode. 
 
 1850. Belgium adopted the single silver monetary stand- 
 ard. 
 
 Quartz mining was begun in California. 
 
 1851. Discovery of gold in New South Wales by Har- 
 greaves. 
 
 Discovery of gold at Ballarat and Bendigo, in Victoria, 
 following close upon the. discoveries in New South 
 Wales. 
 
 Work was begun at the quicksilver mines of New A\- 
 maden, California. 
 
 1852. Discovery of gold in South Australia and Tas- 
 mania. 
 
 Invention of the process of hydraulic mining in Cali- 
 fornia by Edward E. Mattison, a native of Connecti- 
 cut. 
 
 1857. Discovery of gold in New Zealand. 
 Suspension of specie payments by Kussia. 
 
 The German States, including Austria, adopted a single 
 silver standard. 
 
 1858. Discovery of gold at Canoona, Queensland. 
 
 The Patera process was introduced at Joachimsthal, Bo- 
 hemia; the use of sodium hyposulphite as a lixiviaiit 
 for silver ores having been first suggested by Dr. 
 Percy in 1848. 
 
 1859. The Comstock lode, Nevada, was discovered early 
 in the year by O'Reilly and McLaughlin, at the point 
 where the Ophir mine is located. The Grosh brothers 
 found silver in this vicinity several years previous, 
 but their discovery came to naught. 
 
GOLD AND STIVER. 109 
 
 Discovery of gold in the Fraser River region, British 
 Columbia. 
 
 Pike's Peak excitement; discovery of gold placers in Gil- 
 pin County, Colorado, in California Gulch, and at 
 Breckenridge. 
 
 1860. Invention of the Washoe process of pan amalga- 
 mation by Almarin B. Paul and James Smith. 
 
 Discovery of the Gould & Curry and Savage bonanzas in 
 the Comstock lode. 
 
 Discovery of the placers of the Boise Basin in Idaho. 
 
 After seventeen centuries of neglect the silver-lead 
 mines of Laurium, in Greece, were reopened, a 
 French company having obtained a concession of 
 the property. 
 
 1801. Belgium returned to the double monetary stand- 
 ard. 
 
 Discovery of gold in Nova Scotia. 
 
 Discovery of rich placers in 'Oregon. 
 
 1862. Suspension of specie payments by the United 
 States. 
 
 First important discoveries of gold in Montana. 
 Discovery of silver in the Reese River district, Nevada. 
 
 1863. First discoveries of argentiferous lead ores in Little 
 Cotton wood Canon, Utah. 
 
 1864. First locations at Eureka, Nevada, but no im- 
 portant discoveries (silver-lead) were made until 
 the fall of 1869. Claims were also located at 
 Pioche, in the same State, though operations at 
 that place did not become successful until several 
 years later. 
 
 Discovery of rich placers in Last Chance Gulch, Mon- 
 tana; placers were also located at Butte. 
 
 Discovery of the Yellow Jacket-Kentuck-Crown Point 
 and Belcher bonanzas in the Comstock lode. 
 
 1865. Establishment of the Latin Union, consisting of 
 France, Italy, Switzerland, and Belgium, providing 
 for a double monetary standard at a ratio of 15 to 1, 
 the agreement to hold good until 1880. 
 
 Discovery of the silver lodes at Phillipsbur<r, Deer Lodge 
 County, Montana, but it was not until 1881 that the 
 great Granite Mountain mine began to develop '"^o 
 a bonanza. 
 
110 GOLD AND SIL VER. 
 
 Discovery of the Chollar-Potosi bonanza in the Cometock 
 lode. 
 
 1866. Italy suspended specie payments. 
 
 Discovery of the Overman-Segregated Belcher-Caledonia 
 and Hale & Norcross bonanzas in the Comstock 
 lode. 
 
 Discovery of the famous El Callao mine, Yuruari district, 
 Venezuela. 
 
 1867. First international monetary conference convened 
 in Paris by the French Government, at which twenty 
 nations, comprising all the important countries of 
 Europe and America were represented. 
 
 Discovery of rich deposits of silver ore at White Pine, 
 Nev.; these were the first large bodies of silver ore 
 found in a limestone formation in the United States, 
 and the information gained from them led directly 
 to the discovery of the silver-lead deposits of Eureka 
 soon afterwards. 
 
 The smelting works of the Boston & Colorado Smelting 
 Company were established at Black Hawk, Colorado; 
 thia was an important step for the development of 
 the mines of Gilpin County and other districts in 
 Colorado. 
 
 Discovery of the Thames gold-field on the north island of 
 New Zealand. 
 
 1868. Greece joined the Latin Union. 
 
 Discovery of gold in Western Australia, but it was not 
 
 until 1887 that any diggings of importance were 
 
 found. 
 The Emma silver mine, Little Cotton wood, Utah, was 
 
 located in August of this year, but no large shipments 
 
 were made until July, 1870. 
 Discovery of the Sierra Nevada bonanza in the Comstock 
 
 lode. 
 
 1869. Discovery of the important silver-lead deposits of 
 Eureka, Nevada. The American practice of lead 
 smelting has been developed chiefly from the meth- 
 ods adopted in this district. 
 
 The Pacific Railway was completed, and prospecting 
 along its line was greatly stimulated. 
 
 The Sutro tunnel to open the Comstock lode was com- 
 menced Oct. 19. 
 
GOLD AND SIL VEB. Ill 
 
 Discovery of promising deposits of silver ore at Pioche, 
 
 Nev. 
 Copper silver ore was discovered at Butte, Montana, 
 
 and a smelting furnace erected at the Parrott 
 
 mine. 
 
 1870. Great silver deposits were discovered at Caracoles, 
 about 120 miles inland in the desert province of 
 Atacama, Chile, on the Bolivian frontier. 
 
 The silver mines of Eureka and Pioche, Nevada, became 
 large producers. 
 
 1871. The German Empire, by Act of Dec. 4, assumed 
 the sovereign right of coinage and adopted the gold 
 standard; the mintage of silver was discontinued. 
 
 Discovery of the great Crown Point-Belcher bonanza in 
 
 the Comstock lode. 
 The mines of Big and Little Cotton wood, Utah, made 
 
 large shipments. 
 
 1872. Discovery of silver at Georgetown, New Mexico. 
 The Ontario vein (silver), Park City, Utah, was located 
 
 June 19. 
 
 1873. The United States, by Act of Congress, Feb. 12, 
 discontinued the coinage of silver dollars. This Act 
 did not demonetize silver in words, although it did 
 so in effect. The silver dollar is not named in it. 
 Precisely what the Act did was to authorize the 
 coinage of silver half-dollars, quarter-dollars, and 
 dimes below standard weight, and of a new silver 
 coin for Asiatic commerce, of standard weight, to be 
 called the "trade dollar," and to prohibit these coins 
 from being legal tender for more than five dollars in 
 any one payment. 
 
 Discovery of the "Big Bonanza" in the Consolidated 
 
 California & Virginia mines on the Comstock lode. 
 The German Government, by Act of July 9, provided 
 
 for the retirement of its silver coins and the sale of 
 
 the bullion. 
 By a Treasury order, Sept. 6, France limited the amount 
 
 of silver to be accepted by its mint. 
 
 1874. A year of great excitement on the Comstock, the 
 "Big Bonanza" beginning to yield largely, while 
 another bonanza was discovered in the Ophir mine. 
 
 Silver was demonetized by the Scandinavian States, 
 
112 GOLD AND 81L VEB. 
 
 Discovery of promising silver mines, including the Silver 
 King, in the Final Range, Arizona. 
 
 Early in the year argentiferous lead-carbonate ore was 
 found on Iron Hill, Leadville, and the Lime and Rock 
 claims were located. 
 
 By an agreement made in January of this year, the Latin 
 Union was to limit the coinage of silver, exclusive of 
 subsidiary coins, to the following sums for three 
 years: 1874, 140,000,000 francs; 1875, 150,000,000 francs; 
 1876, 108,000,000 franco. Any nation in the Union had 
 the right to decline coining its quota of this amount 
 any year. 
 
 1875. Holland, by Act of June 6, suspended mintage of 
 silver for private account, and established gold coin- 
 age with unlimited legal-tender functions, with a 
 ratio of 15.604 to 1; this was a provisional law, to last 
 only until Jan. 1, 1877. 
 
 Switzerland declined to coin its quota of silver assigned 
 by the agreement of the Latin Union. 
 
 1876. First shipments of silver-lead ore from Leadville, 
 Colo. 
 
 Discovery of silver-lead ore at Frisco, Utah, and the 
 Horn Silver mine was opened this year. 
 
 In July was brought the first suit of the farmers in Cali- 
 fornia against hydraulic miners, and from this time 
 the debris question became a burning subject of dis- 
 cussion. 
 
 The gold fields of Black Hills, Dakota, began to attract 
 much attention. 
 
 Discovery of the Drumlummon ledge (gold) at Marys- 
 ville, Mont. 
 
 Belgium suspended the coinage of silver. 
 
 France discontinued the mintage of silver, except for 
 subsidiary coins, until January, 1878, by Proclama- 
 tion of the President, in accordance with the Act of 
 August 5, 1876. 
 
 A royal decree was issued in Spain interdicting the coin- 
 age of silver except on Government account, and de- 
 claring it to be the intention of the Government to 
 limit the legal-tender function of silver to 150 pesetas 
 (about $30) after it had obtained a sufficient amount 
 of gold to make this step practicable. 
 
GOLD AND SILVER. 113 
 
 Bussia suspended the coinage of silver for individuals, 
 excepting the amount of silver money needed for 
 trade with China. 
 
 By Act of Congress of the United States, August 15, a ' 
 silver commission was created which reported on 
 March 2, 1877. 
 
 1877. Discovery of rich silver veins at Silver Cliff, 
 Colorado, including the Bassick and Bull-Domingo 
 mines. 
 
 The curious argentiferous sandstone deposits of Silver 
 Reef, Washington County, Utah, had been known 
 since 1871, and a mining district was organized there 
 in 1874, but the mines did not commence to produce 
 until 1876. 
 
 Jl878. On Feb. 28, the Congress of the United States 
 passed an Act ordaining the coinage ($2,000,000 per 
 month at least, $4,000,000 at most) on Government 
 account of silver dollars of 412^ grains, 900 fine, and 
 and made them full legal tender except where ex- 
 pressly stipulated otherwise by contract. 
 
 An international monetary conference was held in Au- 
 gust at Paris. 
 
 Great excitement at Leadville, Colo., where many new 
 discoveries were made. 
 
 The 'first locations at Tombstone, Ariz., were filed and 
 the next year the mines (silver) there commenced to 
 produce largely. 
 
 Discovery of the silver-lead deposits of Sierra Mojada, 
 Coahuila, Mexico. 
 
 1879. The German Government discontinued it sales of 
 silver on May 16. 
 
 Resumption of specie payments by the United States. 
 
 Discovery of promising veins of silver ore at Aspen, 
 Colo., and in the San Juan region in the southwest- 
 ern part of the same State. 
 
 1880. Reported existence of promising gold reins in the 
 Colar fields of Mysore, Southern India, which were 
 subsequently opened and became large producers. 
 
 1881. Discovery of silver ore at Lake Valley, New 
 Mexico. 
 
 First important discoveries of silver ore in the Calico 
 district, California. 
 
114 GOLD AND SIL VER. 
 
 1882. Decision of the courts prohibiting hydraulic min- 
 ing in the valleys of navigable' rivers of California. 
 
 1883. The Mount Morgan gold mine, at Rockhampton, 
 Queensland, began to produce. 
 
 The Broken Hill mine (silver-lead) in New South Wales, 
 Australia, was discovered in September. 
 
 1884. Discovery of gold in de Kaap district of the Trans- 
 vaal, South Africa. 
 
 1885. Discovery of the silver-lead deposits of the Coaur 
 d'Alene region, Idaho. 
 
 The first important discoveries in the "banket" forma- 
 tion, Witwatersrand, Transvaal, South Africa, were 
 made during this year, but active operations were 
 not commenced until 1887. 
 
 1890. Act of Congress, July 14, repealing the law of 1878 
 and providing for the purchase of 4,500,000 ounces of 
 silver monthly, against which certificates are issued, 
 redeemable in either gold or silver. 
 
 Establishment of the silver-lead smelting industry in 
 Mexico. 
 
 1891. The gold fields of Mashonaland, South Africa, be- 
 gan to attract attention. 
 
 Large exports of gold from New York and purchases by 
 Russia. 
 
 Discovery of silver ore at Creede, Colo., and gold at 
 Cripple Creek, in the same State. 
 
 Austro-Hungary adopted the gold monetary standard. 
 
 Third international monetary conference held in Brus- 
 sels on invitation of the United States, adjourning in 
 December without result. 
 
 At the close of the year large exports of gold from the 
 United States, causing a very unsettled feeling in 
 financial affairs. 
 
 1893. India ceased coining silver. 
 
 Financial panic in the U. S., due to the large purchases 
 of silver and the consequent fear that the U. S. would 
 be forced to a silver basis. Act of 1890 repealed. 
 
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