New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-04-02
DEPRECATED CURRENCY ROBS AABt

DEPRECIdTED CURRENCY ROBS LABOR.
The speech of Mr.. William Walter Phelps,
Yesterday, in the House, was as unlike the
previous admirable efforts, which have gwen
him his sudden reputation, as one clever
speech can be unlike another With only here
and there touch of satire and the merest
sub acid flavor of humor, he went straight to
his work in an earnest protest against
the down-hill policy of initiation. His
summary of the reasons why the
Government is in honor bound to make its
paper promises equal in value to gold is very
convincing. This part of the argument in favor
of a return to the gold basis the imitation
ists never have answered and never can. 1t was
set forth clearly and cogently six years ago by
the late Senator Morton of Indiana. Since
that time, as Mr.. Phelps points out, Congress
itself and the great political parties in their
National Conventions have pledged them
selves to the specdiest possible restoration of
specie payments. If Congress and majority
of the great Gf morbund) parties, by their
representatives in Congress, have been false
to their pledges, it is not because the honor
and good name of the nation required this
sacrifice.
But, after ALL the point which will prob
ably attract most attention in MIR. Phelps's
speech is the demonstration that deprecated
currency bears harder upon farmers and labor
ers than upon any other class. We think
there can be no doubt that such is the fact,
and we confess that in our previous discus
siOns we have not given this phase of the
question the prominence it deserves. This
"cheap money" it is maintained, will, at
some time, revive business and give full en-
ploymeDt to the labor of the country. Grant
it. But when that period of spas
modic activity sets ill., there will be
general rise in the prices of commo-
dities, and the last thing to rise will be
wages. We shall then have protracted period
of strikes, not terminating, probably, until
Bubble No. bursts, and leaves everything
fatter than it is now. The effect of the pres
ent great accumulations of paper money in the
banks will be, sooner or later, rise of prices
but these are not war times, and-let laborers
and salaried persons mark the prediction-it
will be long time before wages and salaries
are affected by the rise, while labor will imme-
diately feel the increased cost of living.
How is it with the planters and farmers
The prices of their cotton, grain, and provisions
are fixed in gold at Liverpool, Manchester, and
London by the competition Of buyers and
sellers representing the whole world. This is
fair and as it should be- But the money coming
to the American producer of cotton, grain, or
provisions, must first be filtered through the
Gold Room. Now we say boldly that gold
being practically demonetized and of very
limited utility in the United States, is itself
commodity of fluctuating and uncertain value.
Study tables of the premium on gold for the
twelve years since it has had a premium and
YOU may pore over them until you are blind
without discovering any principle of stability.
Opium, Erie shares, or any other article which
is made the basis of speculation, obeys in
broad and general sense the laws of
demand and supply, and so does gold.
But in ts fluctuations from day to
day. and week to week, and month to month,
il follows no law and cannot be made subject
to calculation. Yet this premium on gold,
this football, par excellence, of speculation,
necessarily influences the currency price of
every commodity which, as an import or ex-
port enters into our foreign commerce. If
the farmer thinks he can sit by his fireside
on the banks of the Missouri or Wabash and
contend successfully against spectators and
middlemen for the benefits accruing from the
fluctuations in the prices of his products,
caused bv the UPS and downs Of the gold