The History of Banking Fraud:
Chapter 9
MONEY POWER OF ENGLAND AND UNITED STATES COMBINED TO
ANNIHILATE SILVER
The Coming Battle
By M. W. WALBERT, 1899
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"Against the insidious wiles of foreign influence (I conjure you to
believe me, fellow citizens) the jealousy of a free people ought to be
constantly awake, since history and experience prove that foreign
influence is one of the most baneful foes of Republican Government." -
George Washington.
"Let us found a Government where there shall be no extremely rich men and
no abjectly poor ones. Let us found a Government upon the intelligence of
the people and the equitable distribution of property. Let us make laws
where there shall be no governmental partnership with favored classes. Let
us protect all in life, liberty, and property, and then say to every
American citizen, with the gifts that God has given you, your brain and
brawn and energy, work out your own fortunes under a jest Government and
equal larva" - Thomas Jefferson.
For the purpose of enabling the reader to thoroughly understand the nature
of the events that would take place in 1893, and succeeding years, we will
direct some attention to the silver agitation in Great Britain in 1892.
It was heretofore stated, that Great Britain was the first nation to adopt
a single standard of gold, and that this financial system dates from the
year 1816.
In many respects, England is the most wonderful country on the face of the
earth. Her colonial possessions are immense, all of which enjoy some
degree of self-government, except that of India, which is gov-
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erned exclusively by a Viceroy appointed by the home Government.
India has an area of 1,500,000 square miles, inhabited by a population
numbering 285,000,000 of industrious people.
Prior to June 25, 1893, India was on a silver standard.
Before the United States demonetized silver in 1873, the production of
wheat and cotton in India was insignificant, and her manufactures of
cotton fabrics were in their infancy.
With the demonetization of silver by the United States in the year
mentioned, the production of wheat and cotton in India commenced on a
large scale, and her manufactures of cotton goods developed very rapidly.
Her remarkable growth in this direction was owing solely to the
demonetization of silver by the United States and other nations, which
action caused a tremendous fall in the bullion value of that metal.
Not only did this develop the resources of India, but the latter country
became the most dangerous competitor of the United States in the wheat and
cotton market of the world.
In 1866, the first fifty bales of cotton yarn werc shipped from Bombay,
and the growth of the trade was not very rapid until 1874.
In 1875, India exported 1,000,000 pounds of cotton yarn, the following
year 5,000,000 pounds, this had increased annually until 1889, when its
exportation reached 65,000,000 pounds. In 1891, the exports of cotton yarn
from India were 165,000,000 pounds. Her exportations of raw cotton
increased at the same ratio.
The number of cotton mills, from 1876 to 1887, in-
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creased 100 per cent, the number of spindles 105 per cent, cotton piece
goods 243 per cent, and cotton yarn 1,058 per cent.
Prior to 1874, the production of cheat in India was very small, but within
five years after the demonetization of silver by the United States, she
exported ll,900,000 bushels.
During the succeeding years, her shipments of wheat steadily grew in
magnitude, until they reached the enormous total of 59,000,000 bushels in
1891. The gold price of wheat fell enormously.
The demonetization of silver by the United States operated as an export
bounty on the products of India, and the greater the fall of silver, the
more beneficial to the wheat and cotton growers of that Oriental country.
The silver coins of India were of unlimited legal tender debt-paying
power. She had no gold coinage.
Since 1873, the history of prices proves that the purchasing power of
silver over commodities has been practically unimpaired, that is stable.
This its especially true of the silver coins of India.
This fact was shown by the British Gold and Silver Commission of F885,
composed of twelve of the ablest financiers of England, six of whom were
adherents of the gold standard, and the other six bi-metallists. This
commission made an exhaustive examination into the cause leading to the
fall of the gold price of silver.
This commission unanimously reported that the purchasing power of the
rupee continued unimpaired, and that the prices of commodities measured in
silver remained practically the same in that country.
On page 95 of its final report, the commission said: -
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"In India, in the opinion of nearly all the witnesses whom me have
examined, the purchasing power of the rupee continues unimpaired and the
prices of commodities measured in silver remain practically the same. We
have no evidence to show that silver has undergone any material change in
relation to commodities, although it has fallen largely in relation to
gold; in other words, the same number of rupees will no longer exchange
for the same amount of gold as formerly, but, so far as we can judge, they
will purchase as much of any commodity or commodities in India as they did
before."
In a separate report, six of these commissioners made use of the following
language as an answer that falling prices result from facilities for
production. They say: -
"We are not insensible to the fact that facilities for production are
habitually increasing, and the cost of production is constantly becoming
less. But these factors have always been in operation since the world
began; and while we recognize their tendency to depress the prices of
commodities, they are not, in our opinion, sufficient to account for the
abnormal fall in prices, which has been apparent since the rapture of the
bi-metallic par, and only since that time."
The process by which the depreciation of silver built up the industries of
India at the expense of those of the gold standard countries was apparent.
When the London merchant went to India to buy wheat and cotton, he
ascertained that his gold would not purchase any more of her products than
an equal amount of silver expressed at a ratio of fifteen and one half to
one.
Therefore, the English merchant would send his gold to the United States,
and purchase cheap silver with it, ship this silver to India and purchase
the
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wheat and cotton of that country. If the price of silver in London was 65
cents per ounce, the English merchant would buy exchange on the United
States to the amount of $13,000; with this he could purchase 20,000 ounces
of silver bullion. This bullion, when shipped to India, would be worth the
mint price of $1.33 per ounce. With this cheap silver, the wheat merchant
would find it more profitable to buy Indian wheat at $1.20 per bushel,
than to purchase the same product in the United States paying therefor 75
or 80 cents per bushel reckoned on a gold basis.
In a few years after the demonetization of silver by the United States,
the English rejoiced at the blow which was thus dealt to American
commerce.
At a meeting of the British and colonial Chambers of Commerce, held in
London in 1886, Sir Robert N. Poller, a member of Parliament, a banker,
and an ex-mayor of London. said: -
"That the effect of the depreciation of silver must finally be the rain of
the wheat and cotton industries of America, and be the development of
India as the chief wheat and cotton exporter of the world."
At the same time that the export trade of India grew so rapidly, she
manufactured more largely for herself. The reason was obvious.
Should she attempt to import foreign manufactured goods from gold standard
countries, the rate of exchange against her would be equal to the
depreciation existing between her silver compared to the gold of the
nation from whom she would purchase.
To illustrate: Suppose a merchant of Bombay or Calcutta proceeded to
England and purchased goods to the amount of 100,000 sovereigns, it would
require
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gold coin for the payment of them, as the standard of value there is gold.
He would find it necessary to convert his silver rupees into exchange on
London, in order to obtain the gold, to pay for the goods, and the result
would be that he would lose the difference between the bullion value of
the silver compared with that of gold. Consequently, this loss of exchange
would be an insurmountable obstacle in the way of his silver standard
country purchasing from that which was on a gold basis. This would
stimulate home manufactures in silver using countries, that is - those
nations on a silver basis.
This difference in the loss of exchange would operate more effectively, in
restricting foreign importations into silver standard countries, than the
moat rigid protective tariff laws ever enacted.
Another very important effect of the disparity between the value of gold
and silver in the commercial intercourse of nations would be as follows: -
First, Those nations on a silver basis would trade with each other, the
population of which by far exceeded that of the gold standard countries;
second, England would be the greatest sufferer should India continue on a
silver standard.
These two conclusions were fully borne out by subsequent events. The great
Oriental nations purchased immense quantities of manufactured goods from
India, while there was a great falling off in the sales of the same class
of merchandise heretofore supplied by England.
The statesmen and financiers of the latter entertained grave fears, that,
if the United States should declare for free coinage of silver, it would
unite the
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Western Hemisphere and the silver using countries of Asia into a great
commercial anion, a result that would end in making the United States the
greatest commercial and manufacturing nation on earth.
These fears were well expressed in a very significant editorial in the
London Standard, which add: -
"What if the United States should now join Mexico in declaring for the
free coinage of silver, and throwing over gold as too dear. What if the
two American continents held out the hand to Asia and said: 'Let us have
the white metal for our standard.' Chile, now hard-hit, would eagerly
respond and all the states of South America and Mexico, with Japan and
China and Java - in fact the whole mighty East (which cares little for
Simla). It is a great danger to which the present outburst of alarm and
Sear must not render England oblivious."
The great cotton manufactures of the latter nation were steadily losing
ground in China, Japan, and other Oriental countries, and as those
valuable markets were lost to England, they were gained by colonial India.
Moreover, the cheap wheat of India was invading the markets of England, to
the immense loss of the wealthy landed nobility of the mother country.
These two powerful interests combined in a memorial to the British
Parliament, and on April 22, 1892, a commission was appointed by the
Secretary of State for India, with instructions to take evidence upon the
advisability of closing the Indian mints to the free coinage of silver.
As a striking coincidence, which undoubtedly proves that there was an
understanding between the money power of England and that of the United
States, having for its object the annihilation of silver as money,
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we point to the fact, that in a few days after the appointment of the
commission to investigate free coinage of silver in India, Senator Sherman
introduced a bill in the United States Senate to repeal the silver
purchasing clause of the so-called Sherman law, at that time the only law
recognizing silver in this country. As further proof that the national
banking power of America had united with the capitalists of England
against the use of silver as money, we refer to the following
circumstance: During the sitting of the Herschell Commission, an
international monetary conference was in session at Brussels The United
States was represented at this gathering of the nations. Ex-Governor
McCreary, one of the American representatives, in a speech upon silver,
said: -
"Speaking for myself only, I express the opinion that the silver law known
as the act of 1890, now in force in my country, will be repealed. It is
possible this will be done at the present session of Congress.
If not this session, I believe it will certainly be repealed at the next
session of Congress."
The foreign nations gathered at Brussels, therefore, were semi-officially
notified that the sole law providing for the coinage of silver in the
United States would bc repealed in the near future.
Henry W. Cannon, a colleague of Mr. McCreary, and the president of the
Chase National Bank in New York City, said: -
"The United States has seriously taken into consideration the idea of
repealing the Silver Purchase Act of 1890; the two political parties as
well as the great bankers of New York have advised this repeal, and if
during this conference some arrangement is not attained, it is more than
probable that America will
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not continue disposed to buy annually 54,000,000 ounces of silver at the
market price."
Thus the people of the United States were again betrayed by their
delegates to this conference, and the Herschell Commission received notice
that the United States was opposed to silver.
At the time this commission was appointed to investigate the effects of
free coinage of silver in India upon the British cotton export trade,
England occupied a commanding position as the great creditor nation of the
world, her aggregate holdings of stocks, bonds, securities, and other
forms of public and private indebtedness run into the billions.
In a speech in the British Parliament, Mr. Gladstone eulogized his country
as the greatest creditor nation on the face of the globe. Amid the
boisterous cheers of the House of Commons, he declared that Great Britain
was the creditor of other nations in a sum not less than $10,000,000,000!
Her colonies of Australia, South Africa, and Vancouver had risen to be the
greatest gold producing regions of modern times. Australia alone had long
surpassed California, we might say the United States, in the extent and
richness of her gold resources Hence, it me the policy of England to
enhance the exchange power of gold, as she was the great creditor and the
great gold producing nation of the present day.
Moreover, her imports greatly exceeded the value of her exports Her
imports of raw materials and bread stuffs far exceeded that of any other
nation, and by limiting the world's volume of money, and increasing the
purchasing power thereof, she would be enabled
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to obtain her supplies much cheaper on a single standard of gold, than
under an universal bi-metallic system.
It is almost impossible to grasp the immense extent of her commercial
power.
England owns more than three fourths - nearly four fifths - of the
steamships afloat on the ocean, and nearly one half of the sailing fleet
of the world, providing employment for 350,000 seamen. Her income from her
merchant marine aggregates $400,000,000 per annum.
She aspires to monopolize the trade of Asia, Africa, and South America,
and by supplying these people with the products of her manufactures, she
strove to provide employment for her dense population.
The Asiatic and the South American nations were chiefly on a silver basis,
and this formed a barrier to the extension of her trade and commerce.
Hence, the manufacturing, agricultural, and creditor classes of Great
Britain demanded relief at the hands of the British Parliament, and they
pointed to the fact that the cotton manufacturers of India were securing
the control of those markets heretofore supplied by the mills and
factories of Lancashire; and that the low price of English wheat resulted
from Indian competition. Hence the appointment of this commission at the
head of which was Lord Herschell.
Upon the organization of this commission it proceeded to take evidence
relating to the cause of the decline of the British cotton trade in the
Asiatic countries.
Many of the leading cotton manufacturers appeared before this body, and
gave valuable testimony with
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reference to the causes of the depression existing in the cotton
manufactures of England.
Upon the conclusion of its investigations, it made a report to Parliament,
in which it was pointed out that the rise in the price of gold, beginning
in 1873, the year that silver was demonetized by the United States, and
the resulting depreciation of silver, had built up a large cotton-spinning
trade in India. The report says: -
"Soon after the rise of gold began in 1873, a large cotton-spinning trade,
began previously in India, with English machinery to supply India itself,
felt at once the stimulus supplied by the difference in exchange. It
prospered rapidly, grew, and continues growing fast and steadily, and
exports to China and other silver countries. Here are comparisons of the
English and Indian exports of cotton yarn, in pounds, to China, Hongkong,
and Japan, which have for some time been supplied annually to the
Economist by Mr. Abraham Haworth, of Manchester. They show how the product
of silver wages beats the product of gold wages, and beats them morc as
the divergence between the metals widens.
"The quantities are given in pounds weight. The contrast between the
stationary quantities from England and the rapid expansion of the Indian
export indicates plainly a sad future for Lancashire trade if gold wages
there must continue competing with silver wages in foreign markets. India
will on the present footing beat Lancashire everywhere, meanwhile in the
large class of goods made of Indian cottons, but ultimately in any
material."
It then proceeds to give statistics showing that from 1876 to 1881,
England annually exported to China a and Japan, cotton goods valued at
$38,560,000. India exported only $19,641,000.From 1882 to 1887, the an-
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nual exportations of England had fallen off to $33,682,000, while India
had increased from $19,641,000 to $71,319,000. In 1888, England sent to
China and Japan $44,642,600 worth of cotton goods, while the exportations
of India to these two countries increased from $71,319,000 in 1887, to
$114,707,300 in 1888. In 1889, England sent to China and Japan $35,720,200
of these cotton goods, and India sold $126,766,800 against $114,707,300
the preceding year.
In 1890, England exported to China and Japan $38,057,400. In the meantime,
in the same year, the Indian export increased from $126,766,800 to
$145,112,800 worth of cotton manufactures, and it was time for the English
merchants to stop this rivalry. The child had outgrown the parent. The
colonial manufacturers had taken away the market in Japan and China, and
it was necessary to do away with silver in order that the monopoly of this
Eastern trade might go back where it had originally been, to the English
manufacturer and the English merchant.
The conclusions of this commission, based on an exhaustive investigation
into the causes of the decline of the British cotton trade, demonstrated
that the continued depreciation of the gold price of silver acted as a
rigid protective tariff against the manufactures of gold standard England;
and, that owing to the loss of exchange which would accrue to silver
standard countries trading with those on a gold basis, the former would
naturally trade with each other to the exclusion of the latter. The only
loss that would accrue to India was in those cases in which she owed debts
to England; for, by conversion of her silver coin into British sterling
exchange drawn to discharge these obligations,
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she would lose the difference between the bullion value of silver and that
of gold.
But for this loss, she was amply compensated by the immense growth of her
trade and manufactures, through which her means of payment were
proportionately increased.
During the sittings of this commission, the United States was in the midst
of the presidential campaign of 1892.
For the third time Grover Cleveland obtained the Democratic nomination for
President, although there was considerable opposition to his candidacy.
As he had thrown down the gauntlet to the highly protected manufacturing
interests in his message of 1887, he was regarded as the leader of his
party.
In the election of 1888, he had received a large plurality of the popular
vote, and it seemed poetic justice that he should measure strength with
his opponent of 1888.
The Democratic platform denounced the Sherman Silver Purchasing law as "A
cowardly makeshift," and demanded its repeal.
The term "makeshift" in the sense in which it was useful, meant that it
was an obstacle to the free coinage of silver, and that this was the
reason why a law of that character was adopted by the Fifty-first Congress
- which became odious as the "billion-dollar Congress." In 1893, during
the debate upon the repeal of the purchasing clause of the Sherman law,
Senator Sherman admitted that this law was designed solely for the purpose
of defeating the free coinage of silver.
The Democratic platform severely denounced the McKinley tariff law of
1890, "As the culminating atrocity" of tariff legislation.
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One of the most iniquitous features of this measure was the sugar bounty
clause, by which the sugar growers of Louisiana and Vermont received large
sums of money from the general Government for their sugar product. This
inured to the benefit of a few millionaire sugar planters, one of whom in
a single year received the great sum of $464,000 as his share of the sugar
bounty.
The Republican convention re-nominated President Harrison and endorsed the
McKinley tariff law.
Mr. Cleveland was elected by an immense majority of the electoral vote,
and his plurality of the popular vote over President Harrison was more
than three hundred thousand.
Immediately after the election of Mr. Cleveland, the national banking
money power began to lay plans to force the country upon a single standard
of gold, and to increase the volume of their circulating notes.
On December 6, 1892, Congressman Harter, a national banker, introduced a
bill in the House providing for the unconditional repeal of the Silver
Purchase law, and to replenish the gold reserve of the United States
Treasury.
To add to the clamor against the silver dollar, Mr. Harter, a member of
Congress from Ohio, successfully endeavored to array the Grand Army of the
Republic against the continued purchase and coinage of silver. He secured
lists of the members of the various posts throughout the country, but more
particularly addressed himself to those that mere situated in Democratic
Congressional districts. Circular letters, printed by the Government, werc
mailed by him to many thousands of pensioners, informing these veterans
that
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their pensions would be paid in "seventy-cent dollars," and requesting
them to join in memorials to their Representatives in Congress to vote for
the repeal of the purchasing clause of the Sherman law.
Democratic Senators and members of Congress received thousands of these
letters from their constituents, thus inspired, requesting them to vote
for a single standard of gold.
This outrageous interference of Mr. Harter with the constituents of other
members of Congress received scathing rebukes on the Boors of Congress.
This was a part of the program of the money power, and it practically
served notice on the Herschell Commission that the United States would
cease the further coinage of silver, and that this country was apparently
in sympathy with the financial policy of England.
The money power of England and America struck hands, and formed a compact
to utterly annihilate silver as a money metal everywhere.
Upon the appearance of the Harter bill in the House of Representatives,
the bankers of London cabled to the New York Evening Post, December
8,1892, the news that "The belief is slightly growing that India will
assume a gold standard sooner or later. "
On December 9th, the same Journal published a cablegram from London, in
which it was stated, "That the silver question is still paramount. There
is a belief that the india Council will refrain from mating sales below
some minimum. The Indian Government is alleged to be contemplating an
immediate change of the silver standard to gold."
On the same day, Mr. Williams, of Massachusetts, brought forward a bill
for the unconditional repeal of the purchase clause.
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in the meantime, the great journals in the financial centers of the
country began a crusade for the gold standard.
On December 9th, the Chicago Tribune, editorially said: -
"Let the Sherman act of July 14, 1890, be repealed at once without waiting
for an extra session."
During this time that these various repeal measures were introduced into
the House of Representatives, and while the American press was clamoring
for the passage of those bills which would entirely cut off the further
coinage of silver, the Herschell Commission was in session.
In Eng1and, this commission pointed to the efforts made in Congress to cut
off the further coinage of silver as an indication of hostility toward
that metal, and asserted that the passage of any such bill would result in
a great depredation of that metal. The introduction of these various
bills, seeking to repeal the sole law that in anywise recognized silver as
a money metal, and which consequently steadied its bullion value, speedily
became known to the Herschell Commission.
In its report the commission referred to these bills, and based its
conclusions largely upon the effect of a repeal of the purchasing clause
by the United States.
The report stated: -
"Moreover, a strong agitation exists in the United States with respect to
the law now in force providing for the purchase of silver. Fears have been
and are entertained that there may come to be a premium on gold, and
strong pressure has been brought to bear upon the Government of that
country with a view to bring about an alteration of that law."
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Is it not self-evident, that these various bills to repeal the purchasing
clause were brought forward in Congress at this time, with a view to
influence the Herschell Commission against the continued coinage of silver
in India?
The proposed action of the United States me strongly urged as a reason why
the mints of India should be closed to free coinage.
Every movement, or proposed movement, made by the advocates of a single
standard of gold in the United States, looking to the complete downfall of
silver, was speedily transmitted to England.
In its report the Herschell Commission says: -
"In December last a bill was introduced in the Senate to repeal the
Sherman Act, and that any such measures will pass into law it is
impossible to foretell, but it must be regarded as possible; and although
in the light of past experience, predictions on such a' subject must be
made with caution, it is certainly probable that the repeal of the Sherman
Act would be followed by a heavy fall in silver."
While the people of England were being frightened by the bogy of
depreciated silver, which was asserted would result from the probable
repeal of the Sherman Law by the United States, the gold standard
advocates of America were pointing to the probable closing down of the
mints of India to the free coinage of silver as a reason for repealing the
Silver Purchasing law of July 14,1890.
In this way the money power of England and the United States played into
the hands of each other.
At this time, the House of Representatives was strongly Democratic, and it
was in favor of the use of silver as money, and, consequently, the repeal
of the
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Sherman Law was impossible as long as no better silver measure was
proposed as a substitute for this "cowardly makeshift."
In the meantime President-elect Cleveland attempted to influence Congress
to repeal the Sherman law.
He delegated Josiah Quincy as his envoy to visit Washington, ascertain the
sentiments of Democratic members of Congress upon the silver question, and
to mate known to these Senators and Representatives that he desired the
speedy repeal of the Sherman law.
On December 21, 1892, Senator McPherson introduced a joint resolution in
the Senate, authorizing and directing the Secretary of the Treasury to
suspend all purchases of silver bullions as provided for in the first
section of the act of July 14, 1890.
Upon Mr. McPherson's request the bill was printed and laid upon the table,
to be called up by him at some future time after the holiday recess
With reference to the action of this Senator, the Chicago Tribune said: -
"His remarks will be listened to with great interest, being regarded as
the unofficial expression of the views of the President-elect."
After the holiday recess, the House reassembled January 4, 1893, and
Congressman Harter introduced a joint resolution similar to that of Mr.
McPherson in the Senate.
On February 9th, House Resolution 10143, permitting national banks to
issue bank notes up to the par value of bonds deposited by them was to be
made the special order of the House, after the bill providing for the
repeal of the purchasing clause of the Sherman Law was passed.
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In every instance, each attempt to suspend the coinage of silver, and to
retire the greenbacks, was followed by an effort to confer greater powers
and privileges upon national banks.
These two Tory-Republican schemes of finance always went hand in hand.
It was evident that none of these measures could bc forced through
Congress at this time.
On February 12th, Henry Villard, a leading stock speculator of New York
City, who was charged with wrecking the Northern Pacific Railway Company,
made hie appearance in Washington, and publicly announced that he was the
envoy of President-elect Cleveland, and that it was Mr. Cleveland's wish
that the Sherman law be repealed.
The efforts of Mr. Vil1ard to influence Congress were fruitless.
Shortly after the appearance of Mr. Villard at the Capitol, Don M.
Dickinson put in an appearance at Washington as the representative of
President-elect Cleveland. He likewise informed Congress that the incoming
President desired the repeal of the Sherman law.
The next morning after Dickinson left for Washington, the following
interview with Mr. Cleveland was published in the New York Herald. He
said: -
"The repeal of the Sherman act (unconditionally) is the great necessity of
the hour. Continuance of the silver purchasing operation, made mandatory
by the Sherman law, is a menace to the business and financial interests of
the country. I am not yet without hope that that this law will be repealed
by the present Congress. Whatever influence I have is being exerted to
that end. The date at which the repeal should
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become operative is immaterial, save that the sooner the better."
In its editorial comments upon this interview with Mr. Cleveland, the
Herald said: -
"As a party man, as an upholder of the regular organization, as a
vindicator of the machine, Mr. Cleveland will stand on firm ground when he
declares that every aspirant for office patronage, favor, or any
consideration, will be expected to line up for the repeal of the silver
law."
A Washington special to the Chicago Tribune, February 1st, said: -
"President Cleveland is threatening an extra session if the silver
purchase law is not repealed. Don Dickinson is the bearer of the news. Don
has been at it all day interviewing Democratic Senators and the leaders in
the House including Speaker Crisp. He holds a big ugly club in the shape
of patronage, which is expected to bring Democratic members to time."
Notwithstanding the appearance of Don Dickinson at Washington, and the
implied threats of President-elect Cleveland, the Senate defeated a motion
to take up the bill to repeal the silver law by a decisive vote.
In the House, the bill which had been introduced there was also defeated.
The actions of President-elect Cleveland, in his attempt to force the
Legislative Department of the Government to submit to his will, met with
an inglorious defeat at the hands of this Congress.
After the defeat of these various measures the Banker's Magazine, of New
York City, said:-
"The tumble in the stock market during February had for one of its causes,
unloading of stocks as fast as any one would buy them in anticipation that
the gold reserve would not be replenished, and that an
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extra session would be called early, and an attempt be made to coerce its
members into repealing the Silver Purchasing Act unconditionally. "
The Commercial Bulletin said:-
"The quickest, if not the only way to repeal the Silver Purchase lair is
to precipitate a panic upon the country, as nothing short of this will
convince the silver men of their error, and arouse public sentiment to a
point which will compel the next Congress to repeal the Sherman law
whether it wants to or not."
While the money power of the United States, aided by the press and the
unprecedented conduct of President-elect Cleveland, was engaged in the
scheme to totally cut off the further coinage of silver, the New York
banks were withdrawing tens of millions of gold from the Treasury and
shipping it abroad. At the time these banks were engaged in this
transaction, they raised the rate of interest on call loans to twenty-five
per cent. While plundering the Government of its gold as a part of the
scheme to force an issue of bonds, they robbed the people by extorting
illegal rates of interest.
Every step taken by the money power to force a repeal of the Sherman law
was cabled to London with the avowed purpose of influencing England to
close the Indian mints to the free coinage of silver. Every step thus far
taken by the money power of the United States and of England to strike
down silver was in pursuance of a well-defined plan to shackle the people
to an appreciating gold standard.
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