New-York tribune., 1878-01-03
HTILhG IND NELL[NG.


We have a few words for Senator Allison,
of Iowa, and for a large number OF rcspecta-
ble fellow citizens of his way OF thinking.
Senator Allison is, we believe, one OF those
who honestly subport the Silver Bili, III SIN
cerr desire to help his constituents, and III the
belief that demonstration OF SILVER, by any
method whatever will bring higher prices ior
agricultural products. The very tap-ro0t OF
ali DANGER rs to the silver question, is the
strong and prevailing belief that "more
"money," he it gold, silver, or paper, will make
prices higher 70 pull up that delusion by
the roots is the first step toward clear idea
OF the subject.
Ample proof has been offered by lQany wri-
tcrs that rise or fall of prices is generally CO.
incident with rise or fall in the circulating
medium. Hence the not unnatural supposi-
tion that one is the cause of tie other, a sup
position which is illogical because both may
be the effects OF something else. No proof has
vet been or can he given that expansion of cur
rcncy necessarily, always, or generally, pro-
iuces advance OF prices. The overlooked
other cause, which produces any natural cx-
,ansion of currency, usually produces advance
of prices also. In the absence of that other
cause wc see this very year nation having
such an excess OF currency that large. part
i, voluntarily surrendered, and yet, E0twiih-
standing that surplus OF cliicnJt prices stead
ilTI IS tinSoly Is that partial disusc of silver
as money has caused general decline oi prices,
ard tha, It's rcturn 10 Use will cause prices 10
Use. Test this theory by supposing that all
the gold and silycT IN the civilized world were
put out OF existence in an hour. Would prices
rise hey0hd limit? 1t seems Ia us that every
clear-hcadcd man must admit that The condi-
tions which make prices Isc or fall would re-
main essentially unchanged. Tie same num-
ber OF people would still need food, shelter,
and comforts Tie same number of people
would still be able to supply by their labor
wheat, wood, cotton and tobacco. Exchange
OF labor for labor would still take place.
Promises to pay some other article of general
desire world circulate and be acceptcd as in
slrIImcnts OF exchange. instead of promises 10
pay gold or silver Even now more than nine
tenths OF our buying and selling, borrowing
AID paying, is done by means of checks,
drafts and other forms of promise to pay. If
all That we now know as money We're sudden
Is annihilatod, there would indeed be great
disturbance and disorder for time; but can
any man doubt that sojiety would quickly de-
wise and adopt means to eject by other
forms the exchange of labor for labor and
products for products ?
Moreover, that exchange would of ncces-
sity bc based, as we claim that it is now, upon
relations of demand and supply as to pariicu-
lar kinds of labor and products. 1t would
make no difference whether the thing promised
al To-
ful than gold relative prices would still be
governed by relative demand for certain pro-
duets compared with relative supply of
those products. The shoemaker would
sell the three days labor necessary to
make supply of clothing for the
feet, having in view, first, the number Of per-
sons needing such supply, and the number
prepared to furnish il, and second, the de-
mand and supply AZ to labor employed in pro-
ducing Other objects Of desire. Is it cOnceiv-
able that ali these relations of exchange OF
service for service should be destroyed by a
mere alteration of the thing promised in
checks, bills of exchange and drafts! If not
by an entire change in the thing promised,
certainly not 10y mere change in It's guam
tity.
But as to ourselves, what is the fact BY far
the greater part of our purchases and payments
are made in currency, which is promise TO
pay gold. change of law; making that cur
rency a promise to pay silver, would unques-
tionably affect its value greatly. But how 4!
Not by affecting the general purchasing
power Of gold Or Of silver, but by arbitrary
change of the character of the promise. A
promise to pay one dollar, whether in check,
bill, note, or lcgal-ender, would then mean
a promise TO pay 4l2l2 grains of silver now
worth 90 cents, instead of 25sIo grains of gold,
now worth 100 cents. There, it is true, would
be a change OF prices, but one which
would affect the exchanges of this with other
countries. We should get not one cent more
probably not quite rs much-for our wheat,
but the seller to a domestic buyer would get
nOmnaly more, and would be compelled to
pay proportiOnately as much more for all
articles purchased. What would be gained 7
DisbOnOrf Yes. Loss Of credit, enormous loss