State Library '
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PROTECTION! INDUSTRY! ENTERPRISE! PROSPERITY!
LOSE 28.
HICKORY, NORTH CAROLINA, THURSDAY, SEPTEMBER 24, 1896.
NUMBER 39
111 a 1 s.
ML
I i :
CHEAP DOLLARS - NOT CONSTITUTIONAL.
.ctaator Jhn B. Henderson Affirm that
Q0riTcss Has no Constitutional Power to
Coin Money nd Make It a Full Tender
In the Payment of Debt Except on
the Basis of the Commercial or
Intrinsic Values of the Met
als Coined A Clear and
Cogent Argument
Convincing His
torical Reference.
13 a r Harbor, Sept. 8, 1896.
Joseph Pulitzer, Esq.
My Dear Sir: I now recur to our
conversation in which. I suggested to
Tou my conviction that to coin silver
and invest it wim unumiieu legai ten-
. .. i ii . , a i
jer character, at a value admitted by
the law-making power to be scarcely
more than one-half its commercial
value, would be an unconstitutional
act, and should be so declared without
hitAtion bv the Supreme Court of
the United States. ,. ,
Among the enumerated objects to be
attained by the format on of the Con
stitution are the following, to wit: "To
establish justice," to 'promote the
general welfare" and . to "secure the
blessings of liberty to ourselves and,
our posterity." .
At the threshold, let us ask if
"justice" can in any conceivable ?way
be promoted or "established": among
the people of the United States, by a
legislative edict which plainly and
confessedly transfers one half of their
property from one class of our people
to another class. If it be said that
Congress by the enactment of bank
ruptcy laws may accomplish tne same
end, I reply that bankruptcy laws are I
not "b s of attainder." They are
f "Killo i-f nttoinrlor 17 ThOV Mm I
not acts of usurpation. They must be
administered in the courts and under
the forms and sanctions of judicial
procedure. Such laws are required by
the Constitution to be "uniform"
unilorm territorially.and uniform as to
the classes and persons to be affected
by their administration. If, in the
eiecution and enforcement of bank
ruptcy laws, the debtor is finally ' dis
charged from a part of his obligations
without actual payment, it is only
done after judicial inquiry, and after
a finding of the fact in the courts of
law that the debtor is unable to pay;
that his inability to do so is untainted
iy iraua. aua tuai iu xeiee, wuc
alike beneficial to himself and the
t'ominuiiity, will not be prejudicial or
injurious to his creditors. ; ;
if Congress can constitutionally de
clare that oli grains of silver, regard
lesi, of its intrinsic -value, ,j shall be
worth as much 33 -2-100 "grains of
iroUl, and that coins containing these
amounts respectively Shall be accepted
as a full dollar in the discharge of
debts and -m all other commercial
transactions among the people, it fol
lows, as a matter of course, that Con
k'ress may, In 1 its - discretion,-declare
that 30 grains of silver, commercially
worth 3t cents, shail.be of equal value
with the irold dollar. The enactment
f such a law, if conformable, to the
Constitution, would certainly operate
to confiscate by, legislative edict about
y?t jK5rceut. of the total tindebtednetv3
of the country; or more 'appropriately
1 should say- it would take that
amount from the holders of .all sub
Mating obligations and transfer it, to
the debtors. It would enable-all banks
to pay their depositors In full with St
per cent, of the amount they agreed to
pay. And the same is true in respect
of insurace companies and building
associations; and the employers of
labor would In the same manner be
authorized, to take acquittance from
the honest demands of labor. If this
power exists, the Government itself
may legally discharge Its whole debt
by paying to the holder of its bonds 8$
jH?r cent, of their par value. The
Government debt is all payable in
coin, but if the Government can itself
make the coins for its discharge and
fix by law the value of the coins so
madeof course a single hundred dol
lars' worth of silver may suffice to
liquidate the whole twelve hundred
million dollars of Its bonded debt? 1
All this extraordinary power iis
claimed to by- derived from the
authority delegated to .Congress 'tto
coin money, regulate the value thereof
and of foreign coin, and fix the stan?
dard of weights ad measures,'; j
In whaV sense didt oarforefathers
use the word tregnlater"
If we take our old cojonlal history,
the proceedings of Congress under the
Articles of Confederation, , the con
dition on of the currency "when the
above clause was inserted into the
Constitution, the speeches and acta of
public men contemporaneous with the
formation of the instrument, together
with the legislation and proceedings of
our National Congress from 1793 down
to 1878, there can be no doubt about
the extent and meaning of this coinage
clause of the Constitution.
From the portion of this history
which precedes the adoption, of the
Constitution, it is clear that the coins
expected to be made and used under
the Constitution should consist of
gold, silver and copper. This is gath
ered from the report -of the great
finAnc!ep of tne Revolutionary, era.
rbert Morris. made in 1782, on , the
subject of foreign coins and the estab
lishment and regulation of an. Ameri
can mint. Mr. Jefferson's "Notes on
the Establishment of a Money Mint
and of a Coinage for the - United
States," prepared and published about
the same time, clearly demonstrates the
same factv The report of the Grand.
Committee of Congress on the subject
of the "Money Unit" in 1785 and the
report of the Board of Treasury , In,
1786 fully confirm the statement not
only that coins of gold, silver and cop-.
per were contemplated, but that theses
coins were to be so made, constructed,'
"regulated," if you please,aa to express
their commercial value. The Idea of
coining money on a false or fictitious
value was not then entertained by
onvMv it seems not to ; have oc
curred to the authors of these papers
thai such a thing as legal value, sepa
rate and apart from commercial value,
could exist. Mr. Morris, indeed,simply
predicated the superiority of stamped
coins as money over oumou ujwu iuo
. i tit V,
fact that "the standard of coins is
presumed to be just," that is, based
on intrinsic or market values, and con-
sequently, he said, "they are received
without the delays and expense of
..sMvintf " And Mr. Jefferson, to
MWJt J Q - - .
mala' th Aonclnsion still clearer: de
clared that in coining money justice (
demands that we "disregard legal pro
portions altogether," and that we must
ascertain the "market price" of the
metals to be coined in the "several
countries with which we shall be
principally connected in commerce and
tnkft an averasre from them." In the
reDOrt Gf the Grand Committee of
n.nnrn- in 1783. the first or tne -iour
propositions discussed is the Compara
tive commercial value5 'of gold ,. and
silver. y-.,:-- -- i ' r:
In the celebrated report of Mr,
Hamilton, the then Secretary of the
Treasury; in 1791, madt at the, special
instance of ; Congress, concurred in
and approved by Mr. J.efft?rPon,and op
.iiwli rtort our. first eoinacre' act of
tv a.AA'w va , w ; - " " t
April 2,- 1793, , was predicated, it be
came 'necessary, - of v course,- i to ; give
practical interpretation to this clause
of the Constitution! 1 , - :
In this report it is said: "There is
scarcely any point in the economy of
national affairs of greater moment than
the uniform preservation of the intrin
sic value of the money unit. On this
the - security and steady value of
property essentially depend.' It will
be remembered that MrV Hamilton
recommended in this paper, - and Con
gress, inits legislation, followed the
recommendation, that the exact com
mercial value of both gold and silver
be ascertained and that the unit be
affixed to both metals. He realized
and stated, with his usual ability, the
superiority of gold.both as money and
as a standard of value, but the com
parative value of gold and .silver
throughout the world luid then been
uniform for so great a period it was
hoped jthat the double standard could
be safely - adopted. This was clearly
and confessedly a concession to the
extensive use in the United States of
oreigu silver coins already received
from Spain, France and England, with
the current values of which the people
had become familiar. -
It was feared, and so stated by Mr.
Hamilton, that, in the future, changes
might take place In the comparative
value of the two metals, to be oc
casioned probably by the fluctuations
of silver. Bat It wai suggested that
no great burta could result from such
changes in value ."if Jca re be take to
regulate the proportion between them
with an eye to their average commerS
cial value." a?. ia:iu x . n v a '
'"This langtiageshoWs that the
erd
regulate'? jwas net than usedi in the
.0 IIAJSVSJ l
sense ol arbitrarily esiaonsning or
fixing values by law, but , only in the
sense of ascertaining and declaring the
quantity of each metal necessary to
make equality of commercial or
market value in the respective coins.
It points out and enforces the neces
sity, under this power to coin money,
of keeping constant guard against de
preciation in the market value of the
metal coined, and of so changing the
laws from time to time as to adjust . or
"regulate1 the coinage values accord
ing to bullion values as ascertained in
the markets of the world. An abund
ant and sufficient reason for such ac
tion is explicitly stated by Mr. Hamil
ton as follows; "One consequence of
overrating either metal, in respect to
the other, is the banishment of 'the
one that is undervalued." And the
corollary is equally well stated as fol
lows, to wit: "It is evident that as
often as a country which overrates
either of the metals receives a payment
in that metal it gets a less , actual
onantitv than it ought to do, ot less
than it would do if the rate was a just I
a w - .
one." He xnereiore uoceseaxuy wu- i
a a . . fc m I
eludes that the legal and market value
must be the same. u J : " j I
In the light of contemporaneous
history, thereforeit seems clear that
.
the Constitution did not intend to
authorize the proposed coinage of
sliver at double Its intrinsic value.
. 1 put aside the newly discovered
claim that the present disparity in
commercial values of the two metals Is
rather the result of appreciation of
gold than depreciation of silver. Mr,
Jefferson's rale for determining values
is the only rational or reliable one, to
wit: The nrarket price of the metals 1
(the bullion price) in 'tne several
countries with which we Jsball princi
pally be connected in commerce." If
we take the established and admitted
market value of to-day, the silver dol
lar proposed to be coined is worth only
51J cents, while the coined goia aonar
is worth a full dollar in the form of
bullion. -
We annually sell to England from
two to three hundred million
dollars'
worth of our products over and above
the value of products purchased from
her which compels her to pay u this
excess in coin or its equivalent. If we
Timvido bv vicious legislation
that this balance can be paid in silver
f ,iiVio it pommercial value. our
loss, of course, is equal to the half of
this total excess, thereby making true
the quoted statement of Mr. Hamilton
that "as often as a country which
overrates either of the metals receives
a payment in that metal it gets a less
actual quantity than it ought to do,or
less than it would do If the rate were a
jiist one," .
, -The entire legislation of ourNational
Congress from. 1792 down to 1S78 tends
to illustrate ancl enforce the" views I
v,Qvo nlrpnilv exDressed in regard to
the extent nnd'Tneaning of the coinage
nr(iU f rnr Constitution. 1
v The coinage acts of .1834 andlS3. fol
lowed directly in the line of Mr. Ham
opstions that . whenever the
tiwvu w j DO
relative proportions in the value of
bullion (what is now familiarly known
as the ratio of, values) shall be dis
turbed by fluctuations in the markets
of the commercial world, the coinage
laws must at once recognize and ac
cent the fact. It is generally believed
that the act ."of 1T93 when passed prop-
ot-k- iinstl the ratioof market value
between gold and silver at 15 to 1, and
that the admitted disparity Detween
them had increase! to nearly 10 to 1
before 1834. But whether the differ
ence arose from a mistake in 1793, or
in a change of market values oc
curing since that time, the difference
was intended to be thoroughly adjus-
A .
tel, that is, "regulated Dy tnese aci.
The sole object was to readjust these
commercial valaeu In order to prevent
the expulsion of gold. :
In this legislation the most diligent
efforts were made to find beyond the
possibility of fractional error the mar
ket values of eold and silver Oumon,
and strictly to adapt tbe respective 1 ving; the presidency through ar
coins to their intrinsic values, for I raijming elass against class and section
otherwise it was now clear, ar Mr.
Hamilton had predicted in 1791, that
tue double standard, the experiment
of 1792, could not be maintained. Tba
ratioof 1 to "la.&6S41,-nsually known
as 16 to 1, wa adopted as the result of
lnnnrf Mrtfnl Investigation, based
as supposed on a construction of the
Constitution such, as T now present.
It took only aixteen years more oi ex-
1 f,
'WASHINGTON LETTER.
From our Rtrular Lorrpondent-
Washington, Sept. 21. -The better
the news the harder we'll work, is the
motto which governs Republican
headquarters, and it is being lived up
to. The silver men are on the retreat
in every state in which the Republi
can ational and Congressional com
mittees has made a real fight for Mc-
Kinley and honest money, but as yet
the retreat is orderly. By redoubling
their efforts, the Republican managers
believe they can make it a complete
rout on the 3rd of November. So
complete that the free coinage of sil
ver by this country alone will never
again be made a national issue, and
nothing less will satisfy them. They
are working wifh all the vim and en
ergy they could put into the campaign
if t.e chances for Republican - victory
were doubtful instead .of the victory
being assured as it is. This pleases
all the visiting Republicans, as it
enables them to cro home and tell
their friends that there is no danger
from overoonfldence on the part of the
" ' i' AL . f . I
men wno are managing me campaiRTi. i
Chairman Babcock, of the Congres-; I
slonal committee, is now giving spec- I
ial attention to the Congressional dis-1
t - :
trleta,' and by the middle of October I
he will know about what the size of I
the Republican majority In the next I
House will be. Two years ago when I
Mr. Babcock gave out his figures, they I
were hooted at by the Democrats and I
many Republicans were disposed to I
smile at them, but when the returns I
came in, it was seen that they were I
based upon direct information from I
every congressional district. Mr. Bab-1
cock is proud, as he has every right to I
be, of his record as unairman oi tne i
congressional committee. He doesn t
believe in the wisdom of making big
claims based on nothing but hope, as
the Ponocrat8 are now doing. He
thinks it possible always to obtain in
formation as to how at least 90 per
cent of the districts will go, several
weeks in advance of the election, and
he wants the public to take his figures
a rtnreful estimates and not as a mere
bluff for effect.
I The using of the official organ of the
Knights of Labor as a campaign doc-
ument by the Bryanite managers has
hn nuicklv followed by ugly char-
rres against prominent officials of ths
k. nfL. These charcres are made by
resronsible parties and allege , that
drafts have been drawn on Mr. J. L.
Morris, Assistant Treasurer of the
"Democratic National Committee, in
favor of Master Workman So verign
and Gen. Secretary-Treasurer, Hayes,
who are in immediate charge of the
Journal of the K. of L., published at
Wnchinirton. and that , similar drafts
have been drawn in favor of officials
nf 'the K. of L. at Chicago. Clncinnat-
ti and St. Paul, and paid through a
Washington Bank. ' The ; 6tir created
by these charges Is by no means con-
fined to the members of the K. o! U.
who do not approve of the selling of
the influence of - the organization to
Bryan, but extends to all who are op-
posed to bribery as a political agent;
and may result in a rumpus ; of large
dimensions in the K. of L.
About the most notable thing con-
nected' with the appearance of Mr.
Bryan in Wasington Saturday night.
and his speech upon that occasion,
was his gall in making the farewell
a,Mr of Georce Washington the
basig of
basis of his speech which endorsed the
Chicago platform. "Even the heav
ens weep" said a gentleman present
when the rain storm put a sudden
stop to Bryan's speech. Washington
mM: "In conteninlsting the causes
which may disturb our union. It ocr
rtif-a a n. matter of serious concern
that any ground should have been
furnished for characterizing parties by
nhlcal discrimination, North -
era and Southern, Atlantic nd.': Wes
tern: whence designing men may
endeavor to excite a belief that there
m ml difference of local Interests
and views." Designing Mr. Bryan is
I -jjainst section. Again, Washington
j ..jj. js a rery important source of
gtrenth and security cherish public
CT4it.' Mr. Bryan's principal buri-
nes U the advocacy of a depreciated
currency, which will injare both pri
rate and public crediL -
There bare been sonie jnore or, less
amusing stories m connection with Xlr.
Hryan'a coming to Washington , to
make , a speech. In thu first . place
: 5 i!
there was no end of trouble in getting
a place for him to speak; then there
was more trouble about the distribu
tion of tickets for seats and about
music the local committee seemed to
fear that some unauthorized band
might get into the baseball park in
which the speaking took place, and
which, by the way. was paid for by
two saloon keepers whose places are
opposite the main entrance, ana play
some pieces of music that would give
Mr. Bryan the razxle dazzle right be
fore the crowd. There was a crowd
just as there would have been at any
pther free show, and the proprietors
of the bar rooms who paid for the
park made a good speculation, even if
the crowd was not up to expectations
In size.
ELECTOR1AL FUSION EFFECTED.
Flv Democrats, Plva Populists and Ottm
Silver Pmrtjr Man Coagraattocial 4
Fusion Prabable.
The Democratic and Populist execu
tive committees effected fusion at
a w a m ' m " s ' ' "
luueign Monaay nigns on tne oasis ox
five Democrat and five Populist elec-
tors and one Silver party man B P.
Keith, of Wilmington. The division
is as follows:. At large, Locke Qr&I
Democrat; It. B. Davis, Populist. By
districts: First, Theo. White, Popa-
list; second, H. E. Freeman, Populist;
third, C. R. Holmes, Democrat; fourth
W. S. Bailey. Populist; fifth, William
M. Herrit, Populist; sixth, B. F. Keith
Free Silver party; seventh, T. F.
Kluttz, Democrat; elgth, Tyre York,
Democrat; ninth, R. D. Gilmer.Demo-
crat. Keith and free silver Democrat
electors will vote for Bryan and Bewail
and the Jropuusts wm vote xor liryan
and Watson. -
The Populist committee informed
the Democratic committee that it does
not regard its contract, with the Re
publicans as to Congressmen as bind-
ing and is open to ;an arrangement
with the Democrats if one can be made.
It is asserted that both committees
appointed sub-committees ; to confer
on the matter.
80,000 CHEER rVKINLEY.
Diicxeat Crowd la Caoton Ever 5n la
Ohio.
CANTON Ohio, Sept. 18. The larg-
I est political gathering ever seen in
Onio assembled here to-day. Conser-
vatives estimates place the number of
people on the streets of Canton this
afternoon and. evening at more than
80,000. ; Pretty much the whole of
Eastern Ohio, Eastern West, ; irglnJa,
I Rnd .Western Pennsylvacia sent large
delegations to Canton. -The railways
were taxed to their utmost capacity,
and every vehicle, , in the county
seemed to have been brought into
service. The crowd was . almosttwlce
as large as the organizers , of the meet
ing had expected, but Jt was orderly,
and the people were well cared for.
Notwithstanding the other attractions
jn the city, the home of Major McKin-
jCy was the centre of interest, and
people clung about It till 11 o'clock at
night. They filled : the ; yard, took
possession of the porches,' and peered
in at the windows!
The streets and bouses of, the city
were handsomely and very generally
decorated. No party lines were
drawn, and the Democrats were as
active as the Republicans in their , ef
fort to dispense hofpltality and give
cordial greetings to the host of Strang-,
ers. .
Maior McKlnley began speaking
directly after breakfast and kept it up
until late this evening. He also made
half a dozen speeches.
5fEECME$ BY CEN- MABRI50N.
Tbo
MPmliDt Ia Ttkt ta 3 1 map In
CniCAOO, Sept, 18. Ex-President
Harrison will make some campaign
speeches in October. Th Republican
National ExecuUve Committeemen at
the Chicago headquarters learned of
this to-day through a letter from the
ex-President, now In the Adirondack!,
to CommlttecmenDnrbin of.Indlana.
ILr. D oxbin would only . say that the
letter contained a promise to make
some speeches. The dates and cities
rill be fixed after Mr- Harrison; has
communicated with Mr. Dnrbin. -
One of the speechea wm be made in
Iixdanapollfc Mr. Harriioa wfll go to
KewTork insi day or sa to rcnialn a
week or ten days, ana tne spea&lng
engagements will be . made as toon as
the ex-President slsail xttura hose.