Money is something that man cannot create. All the legislatures and congresses of the world cannot by any possibility create one dollar, any more than they could suspend the attraction of gravitation or hurl a new constellation into the concave sky. Money is not made. It has to be found. It is dug from the crevices of rocks, washed from the sands of streams, from the gravel of ancient valleys; but it is not made. It cannot be created. Money is something that does not have to be redeemed.
Money is the redeemer. And yet we have a man running for the presidency on three platforms with two Vice-Presidents, who says that money is the creature of law. It may be that law sometimes is the creature of money, but money was never the creature of law.
A nation can no more create money by law than it can create corn and wheat and barley by law, and the promise to pay money is no nearer money than a warehouse receipt is grain, or a bill of fare is a dinner. If you can make money by law, why should any nation be poor?
The supply of law is practically unlimited. Suppose one hundred people should settle on an island, form a government, elect a legislature. They would have the power to make law, and if law can make money, if money is the creature of law, why should not these one hundred people on the island be as wealthy as Great Britain? What is to hinder? And yet we are told that money is the creature of law. In the financial world that is as absurd as perpetual motion in mechanics; it is as absurd as the fountain of eternal youth, the philosopher's stone, or the transmutation of metals.
What is a dollar? People imagine that a piece of paper with pictures on it, with signatures, is money. The greenback is not money--never was; never will be. It is a promise to pay money; not money. The note of the nation is no nearer money than the note of an individual. A bank note is not money. It is a promise to pay money; that is all.
Well, what is a dollar? In the civilized world it is twenty-three grains and twenty-two one hundredths of pure gold. That is a dollar. Well, cannot we make dollars out of silver? Yes, I admit it, but in order to make a silver dollar you have got to put a dollars worth of silver in the silver dollar, and you have to put as much silver in it as you can buy for twenty-three grains and twenty-two one-hundredths' of a grain of pure gold. It takes a dollar's worth of silver to make a dollar.
It takes a dollar's worth of paper to make a paper dollar. It takes a dollar's worth of iron to make an iron dollar; and there is no way of making a dollar without the value.
And let me tell you another thing. You do not add to the value of gold by coining it any more than you add to the value of wheat by measuring it; any more than you add to the value of coal by weighing it. Why do you coin gold? Because every man cannot take a chemist's outfit with him. He cannot carry a crucible and retort, scales and acids, and so the Government coins it, simply to certify how much gold there is in the piece.
Ah, but, says this same gentleman, what gives our money--our silver--its value? It is because it is a legal tender, he says. Nonsense; nonsense.
Gold was not given value by being made a legal tender, but being valuable it was made a legal tender. And gold gets no value to-day from being a legal tender. I not only say that, but I will prove it; and I will not only prove it, but I will demonstrate it. Take a twenty dollar gold piece, hammer it out of shape, mar the Goddess of Liberty, pound out the United States of America and batter the eagle, and after you get it pounded how much is it worth?
It is worth exactly twenty dollars. Is it a legal tender? No. Has its value been changed? No. Take a silver dollar. It is a legal tender; now pound it into a cube, and how much is it worth? A little less than fifty cents. What gives it the value of a dollar? The fact that it is a legal tender? No; but the promise of the Government to keep it on an equality with gold. I will not only say this, but I will demonstrate it. I do not ask you to take my word; just use the sense you have.
The Mexican silver dollar has a little more silver in it than one of our dollars, and the Mexican silver dollar is a legal tender in Mexico. If there is any magic about legal tender it ought to work as well in Mexico as in the United States. I take an American silver dollar and I go to Mexico. I buy a dinner for a dollar and I give to the Mexican the American dollar and he gives me a Mexican dollar in change. Yet both of the dollars are legal tender. Why is it that the Mexican dollar is worth only fifty cents? Because the Mexican Government has not agreed to keep it equal with gold; that is all, that is all.
We want the money of the civilized world, and I will tell you now that in the procession of nations every silver nation lags behind--every one.
There is not a silver nation on the globe where decent wages are paid for human labor--not one. The American laborer gets ten times as much here in gold as a laborer gets in China in silver, twenty times as much as a laborer does in India, four times as much as a laborer gets in Russia; and yet we are told that the man who will "follow England" with the gold standard lacks patriotism and manhood. What then shall we say of the man that follows China, that follows India in the silver standard?
Does that require patriotism?
It certainly requires self-denial.
And yet these gentlemen say that our money is too good. They might as well say the air is too pure; they might as well say the soil is too rich. How can money be too good? Mr. Bryan says that it is so good, people hoard it; and let me tell him they always will. Mr. Bryan wants money so poor that everybody will be anxious to spend it. He wants money so poor that the rich will not have it. Then he thinks the poor can get it. We are willing to toil for good money. Good money means the comforts and luxuries of life. Real money is always good. Paper promises and silver substitutes may be poor; words and pictures may be cheap and may fade to worthlessness--but gold shines on.
In Chicago, many years ago, there was an old colored man at the Grand Pacific. I met him one morning, and he looked very sad, and I said to him, "Uncle, what is the matter?" "Well," he said, "my wife ran away last night. Pretty good looking woman; a good deal younger than I am; but she has run off." And he says: "Colonel, I want to give you my idea about marriage. If a man wants to marry a woman and have a good time, and be satisfied and secure in his mind, he wants to marry some woman that no other man on God's earth would have."
That is the kind of money these gentlemen want in the United States.
Cheap money. Do you know that the words cheap money are a contradiction in terms? Cheap money is always discounted when people find out that it is cheap. We want good money, and I do not care how much we get. But we want good money. Men are willing to toil for good money; willing to work in the mines; willing to work in the heat and glare of the furnace; willing to go to the top of the mast on the wild sea; willing to work in tenements; women are willing to sew with their eyes filled with tears for the sake of good money. And if anything is to be paid in good money, labor is that thing. If any man is entitled to pure gold, it is the man who labors. Let the big fellows take cheap money. Let the men living next the soil be paid in gold. But I want the money of this country as good as that of any other country.
When our money is below par we feel below par. I want our money, no matter how it is payable, to have the gold behind it. That is the money I want in the United States.
I want to teach the people of the world that a Democracy is honest. I want to teach the people of the world that America is not only capable of self-government, but that it has the self-denial, the courage, the honor, to pay its debts to the last farthing.
Mr. Bryan tells the farmers who are in debt that they want cheap money.
What for? To pay their debts. And he thinks that is a compliment to the tillers of the soil. The statement is an insult to the farmers, and the farmers of Maine and Vermont have answered him.
And if the farmers of those States with their soil can be honest, I think a farmer in Illinois has no excuse for being a rascal. I regard the farmers as honest men, and when the sun shines and the rains fall and the frosts wait, they will pay their debts. They are good men, and I want to tell you to-night that all the stories that have been told about farmers being Populists are not true.
You will find the Populists in the towns, in the great cities, in the villages. All the failures, no matter for what reason, are on the Populist's side. They want to get rich by law. They are tired of work.
And yet Mr. Bryan says vote for cheap money so that you can pay your debts in fifty cent dollars. Will an honest man do it?
Suppose a man has borrowed a thousand bushels of wheat of his neighbor, of sixty pounds to the bushel, and then Congress should pass a law making thirty pounds of wheat a bushel. Would that farmer pay his debt with five hundred bushels and consider himself an honest man?
Mr. Bryan says, "Vote for cheap money to pay your debts," and thereupon the creditor says, "What is to become of me?" Mr. Bryan says, "We will make it one dollar and twenty-nine cents an ounce, and make it of the ratio of sixteen to one, make it as good as gold." And thereupon the poor debtor says, "How is that going to help me?" And in nearly all the speeches that this man has made he has taken the two positions, first, that we want cheap money to pay debts, and second, that the money would be just as good as gold for creditors.
Now, the question is: Can Congress make fifty cents' worth of silver worth one dollar? That is the question, and if Congress can, then I oppose the scheme on account of its extravagance. What is the use of wasting all that silver? Think about it. If Congress can make fifty cents' worth of silver worth a dollar by law, why can it not make one cent's worth of silver worth a dollar by law. Let us save the silver and use it for forks and spoons. The supply even of silver is limited--the supply of law is inexhaustible. Do not waste silver, use more law. You cannot fix values by law any more than you can make cooler summers by shortening thermometers.
There is another trouble. If Congress, by the free coinage of silver, can double its value, why should we allow an Englishman with a million dollars' worth of silver bullion at the market price, to bring it to America, have it coined free of charge, and make it exactly double the value? Why should we put a million dollars in his pocket? That is too generous. Why not buy the silver from him in the open market and let the Government make the million dollars? Nothing is more absurd; nothing is more idiotic. I admit that Mr. Bryan is honest. I admit it. If he were not honest his intellectual pride would not allow him to make these statements.
Well, another thing says our friend, "Gold has been cornered"; and thousands of people believe it.
You have no idea of the credulity of some folks. I say that it has not been cornered, and I will not only prove it, I will demonstrate it.
Whenever the Stock Exchange or some of the members have a corner on stocks, that stock goes up, and if it does not, that corner bursts.
Whenever gentlemen in Chicago get up a corner on wheat in the Produce Exchange, wheat goes up or the corner bursts. And yet they tell me there has been a corner in gold for all these years, yet since 1873 to the present time the rate of interest has steadily gone down.
If there had been a corner the rate of interest would have steadily advanced. There is a demonstration. But let me ask, for my own information, if they corner gold what will prevent their cornering silver? Or are you going to have it so poor that it will not be worth cornering?
Then they say another thing, and that is that the demonetization of silver is responsible for all the hardships we have endured, for all the bankruptcy, for all the panics. That is not true, and I will not only prove it, but I will demonstrate it. The poison of demonetization entered the American veins, as they tell us, in 1873, and has been busy in its hellish work from that time to this; and yet, nineteen years after we were vaccinated, 1892, was the most prosperous year ever known by this Republic. All the wheels turning, all the furnaces aflame, work at good wages, everybody prosperous. How, Mr. Bryanite, how do you account for that? Just be honest a minute and think about it.
Then there is another thing. In 1816 Great Britain demonetized silver, and that wretched old government has had nothing but gold from that day to this as a standard. And to show you the frightful results of that demonetization, that government does not own now above one-third of the globe, and all the winds are busy floating her flags. There is a demonstration.
Mr. Bryan tells us that free coinage will bring silver 16 to 1. What is the use of stopping there? Why not make it 1 to 1? Why not make it equal with gold and be done with it? And why should it stop at exactly one dollar and twenty-nine cents? I do not know. I am not well acquainted with all the facts that enter into the question of value, but why should it stop at exactly one dollar and twenty-nine cents? I do not know. And I guess if he were cross-examined along toward the close of the trial he would admit that he did not know.
And yet this statesman calls this silver the money of our fathers. Well, let us see. Our fathers did some good things. In 1792 they made gold and silver the standards, and at a ratio of 15 to 1. But where you have two metals and endeavor to make a double standard it is very hard to keep them even. They vary, and, as old Dogberry says, "An two men ride of a horse, one must ride behind." They made the ratio 15 to 1, and who did it? Thomas Jefferson and Alexander Hamilton. Jefferson, the greatest man, with one exception, that ever sat in the presidential chair. With one exception. [A voice: "Who was that?"] Abraham Lincoln. Alexander Hamilton, with more executive ability than any other man that ever stood under the flag. And how did they fix the ratio? They found the commercial value in the market; that is how they did it. And they went on and issued American dollars 15 to 1; and in 1806, when Jefferson was President, the coinage was stopped. Why? There was too much silver in the dollars, and people instead of passing them around put them aside and sold them to the silversmiths.
Then in 1834 the ratios changed; not quite sixteen to one. That was based again on the commercial value, and instead of sixteen to one they went into the thousands in decimals. It was not quite sixteen to one.
They wanted to fix it absolutely on the commercial value. Then a few more dollars were coined; and our fathers coined of these sacred dollars up to 1873, eight millions, and seven millions had been melted.
In 1853 the gold standard was in fact adopted, and, as I have told you, from 1792 to 1873 only eight millions of silver had been coined.
What have the "enemies of silver" done since that time? Under the act of 1878 we have coined over four hundred and thirty millions of these blessed dollars. We bought four million ounces of silver in the open market every month, and in spite of the vast purchases silver continued to go down. We are coining about two millions a month now, and silver is still going down. Even the expectation of the election of Bryan cannot add the tenth of one per cent, to the value of silver bullion. It is going down day by day.
But what I want to say to-night is, if you want silver money, measure it by the gold standard.
I wish every one here would read the speech of Senator Sherman, delivered at Columbus a little while ago, in which he gives the history of American coinage, and every man who will read it will find that silver was not demonetized in 1873. You will find that it was demonetized in 1853, and if he will read back he will find that the apostles of silver now were in favor of the gold standard in 1873.
Senator Jones of Nevada in 1873 voted for the law of 1873. He said from his seat in the Senate, that God had made gold the standard. He said that gold was the mother of civilization. Whether he has heard from God since or not I do not know. But now he is on the other side. Senator Stewart of Nevada was there at the time; he voted for the act of 1873, and said that gold was the only standard. He has changed his mind. So they have said of me that I used to talk another way, and they have published little portions of speeches, without publishing all that was said. I want to tell you to-night that I have never changed on the money question.
On many subjects I have changed. I am very glad to feel that I have grown a little in the last forty or fifty years. And a man should allow himself to grow, to bud and blossom and bear new fruit, and not be satisfied with the rotten apples under the tree.
But on the money question I have not changed. Sixteen years ago in this city at Cooper Union, in 1880, in discussing this precise question, I said that I wanted gold and silver and paper; that I wanted the paper issued by the General Government, and back of every paper dollar I wanted a gold dollar or a silver dollar worth a dollar in gold. I said then, "I want that silver dollar worth a dollar in gold if you have to make it four feet in diameter." I said then, "I want our paper so perfectly secure that when the savage in Central Africa looks upon a Government bill of the United States his eyes will gleam as though he looked at shining gold." I said then, "I want every paper dollar of the Union to be able to hold up its hand and swear, 'I know that my Redeemer liveth.'" I said then, "The Republic cannot afford to debase money; cannot afford to be a clipper of coin; an honest nation, honest money; for nations as well as individuals, honesty is the best policy everywhere and forever." I have not changed on that subject. As I told a gentleman the other day, "I am more for silver than you are because I want twice as much of it in a dollar as you do."
Ah, but they say, "free coinage would bring prosperity." I do not believe it, and I will tell you why. Elect Bryan, come to the silver standard, and what would happen? We have in the United States about six hundred million dollars in gold. Every dollar would instantly go out of circulation. Why? No man will use the best money when he can use cheaper. Remember that. No carpenter will use mahogany when his contract allows pine. Gold will go out of circulation, and what next would happen? All the greenbacks would fall to fifty cents on the dollar. The only reason they are worth a dollar now is because the Government has agreed to pay them in gold. When you come to a silver basis they fall to fifty cents. What next? All the national bank notes would be cut square in two. Why? Because they are secured by United States bonds, and when we come to a silver basis, United States bonds would be paid in silver, fifty cents on the dollar. And what else would happen? What else? These sacred silver dollars would instantly become fifty cent pieces, because they would no longer be redeemable in gold; because the Government would no longer be under obligation to keep them on a parity with gold. And how much currency and specie would that leave for us in the United States? In value three hundred and fifty million dollars. That is five dollars per capita. We have twenty dollars per capita now, and yet they want to go to five dollars for the purpose of producing prosperous times!
What else would happen? Every human being living on an income would lose just one-half. Every soldiers' pension would be cut in two. Every human being who has a credit in the savings bank would lose just one-half.
All the life insurance companies would pay just one-half. All the fire insurance companies would pay just one-half, and leave you the ashes for the balance. That is what they call prosperity.
And what else? The Republic would be dishonored. The believers in monarchy--in the divine right of kings--the aristocracies of the Old World--would say, "Democracy is a failure, freedom is a fraud, and liberty is a liar;" and we would be compelled to admit the truth. No; we want good, honest money. We want money that will be good when we are dead. We want money that will keep the wolf from the door, no matter what Congress does. We want money that no law can create; that is what we want. There was a time when Rome was mistress of the world, and there was a time when the arch of the empire fell, and the empire was buried in the dust of oblivion; and before those days the Roman people coined gold, and one of those coins is as good to-night as when Julius Caesar rode at the head of his legions. That is the money we want. We want money that is honest.
But Mr. Bryan hates the bondholders. Who are the bondholders? Let us be honest; let us have some sense. When this Government was in the flame of civil war it was compelled to sell bonds, and everybody who bought a bond bought it because he believed the great Republic would triumph at last. Every man who bought a bond was our friend, and every bond that he purchased added to the chances of our success. They were our friends, and I respect them all. Most of them are dead, and the bonds they bought have been sold and resold maybe hundreds of times, and the men who have them now paid a hundred and twenty in gold, and why should they not be paid in gold? Can any human being think of any reason? And yet Mr. Bryan says that the debt is so great that it cannot be paid in gold. How much is the Republic worth? Let me tell you? This Republic to-day--its lands in cultivation, its houses, railways, canals, and money--is worth seventy thousand million dollars. And what do we owe? One billion five hundred million dollars, and what is the condition of the country? It is the condition of a man who has seventy dollars and owes one dollar and a half. This is the richest country on the globe. Have we any excuse for being thieves? Have we any excuse for failing to pay the debt? No, sir; no, sir. Mr. Bryan hates the bondholders of the railways. Why? I do not know. What did those wretches do? They furnished the money to build the one hundred and eighty thousand miles of railway in the United States; that is what they did.
They paid the money that threw up the road-bed, that shoveled the gravel; they paid the men that turned the ore into steel and put it in form for use; they paid the men that cut down the trees and made the ties, that manufactured the locomotives and the cars. That is what they did. No wonder that a presidential failure hates them.
So this man hates bankers. Now, what is a banker? Here is a little town of five thousand people, and some of them have a little money. They do not want to keep it in the house because some Bryan man might find it; I mean if it were silver. So one citizen buys a safe and rents a room and tells all the people, "You deposit the overplus with me to hold it subject to your order upon your orders signed as checks;" and so they do, and in a little while he finds that he has on hand continually about one hundred thousand dollars more than is called for, and thereupon he loans it to the fellow who started the livery stable and to the chap that opened the grocery and to the fellow with the store, and he makes this idle money work for the good and prosperity of that town. And that is all he does. And these bankers now, if Mr. Bryan becomes President, can pay the depositors in fifty cent dollars; and yet they are such rascally wretches that they say, "We prefer to pay back gold." You can see how mean they are.