The Coming Battle Chapter IX. Money Power Of England And United States Combined To Annihilate Silver

CHAPTER IX. MONEY POWER OF ENGLAND AND UNITED STATES COMBINED TO ANNIHILATE SILVER.

 

"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.