The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-01-23

material prosperity, certain conditions are in
op an s sSd see
must be employed, and the fruits OF Industry
must be justly distributed These conditions
are only possible when capital is absolutely
protected against violence and free from lie
Ultimate legislative interference, and when
the laborer Is protected In his natural right TO
dispose of his labor in such manner as he may
prefer. They are utterly impossible when the
money stock is shrinking and the money
value OF property and services Is declining.
Howsoever great the natural resources of a
country may be, however genial its climate,
fertile its soil, ingenious, enterprfstng and in
dustrious its Inhabitants, or free Its 1nst1tu-
tions, If the value of money Is shrinking and
prices are falling, its merchants VIII be over
Whelmed with bankruptcy, Its industries Will
be paralyzed, anu restitution and distress viii
The instinct of seIf-snterest is the main
spring of industrial ana commercial activity.
II is the animating motive alike of the capital
tst and OF the labOrer. Without 1t, no labor
would be performed, nor would capital have
from productive enterprises, IL is from the APP
prehension Of loss and from the same instinct
of thrift through which 1t was acquired; IL Is
natural that the money capitalist should exact
from labor all he can in exchange for his
money, and that the laborer should exact all
the money he can in exchange for his labor.
What is known as the conflict between capt.
tai and labor, is not so much a conflict between
other forms of capital and labor as 1t Is be-
tween money and labor. Indeed, the connlct
between money and other forms of capital is
rs distinctly marked and quite as severe a. the
conflict between money and labor, and In that
conflict otuer forms of capital suffer fully as
much rs labor, the only difference being that
they are better able 10 endure losses. Other
forms of capital must be constantly converted
into money in order to paw wages and to meet
other demands incident TO industrial enter
prfses. When the stock OF money Is shrink
Ing and prices are falling, this conversion can
only be made at rates continuity growing more
unfavorable. while at the same time the pro-
ducts OF the la6orer for whose wages sacrlnces
have been made are also undergoing shrink
age of money value. Thus loss and sacrifice
are encountered at every turn, and the owners
of other capital than money shrink nom inc
friction of exchange, withdraw from produc-
tive enterprises, and only exchange as much
Of their property for money as Will sufhce 10
meet the necessary expenditures OF living,
which are reduced to the most economical
level, as IL Is principal and not income which
is being consumed. Little more labor will be
employed under these circumstances than Is
sufficient TO support the owners Of capital on
this parsImoniOus basis, and as a consequence
the labor market will be overstocked, and the
competition between laborers will reduce
wages to a starvation level But during this
period, when property is being sacrificed to
meet current necessities, and labOrers are
being RENTED to idleness and destitutfon,
money fattens on the general disaster"
When, therefore, on the 18th OF January,
1919, this government, having already de-
stroyed silver money, determined to destroy
within the next four years Its outstanding le-
gal paper currency until there should be no
more oft left than could be redeemed in gold
coin alone on the LIST day of January, 1879 it
became responsible for all the appalling con-
sequences llhb nave IOllOW6u. All attempt 10
force the resumption of specie payments with
gold and silver both as our metallic basis
would be q cruel failure at this time; but the
proposition to contract, reduce, cancel and
burn our present amount of currency until IL
harmonizes with the meager margin of gold
which we can command has stricken the arm
of labor with paralysis, dried up the fountains
of business prosperity; and placed hOllow-eyed
want in more than million hitherto happy
homes. The demonstration OF silver was
puFposely accomplished before the policy of
specie resumption was declared, in order to
make money as scarce as possible in reaching
by forced contraction the single standard of
gold. We could reach the double standard
easier than the single one. but the purpose of
the money power was the dIminution of
plished that object by first outlawtng silver
and then seeking the specie basis composed OF
but one metal. IL can not be denied that great
stroying moneys, and all values, except. the
value of money, which Is made greater by be-
ing made scarcer and harder to obtain.
At the date of the act OF January, 1875, our
volume OF currency was already reduced in
proportion TO population lar below
mands barely sustenance wages. We had
nearly one-half less per capita than Germany,
England or France. Financial distress was
even then upon us. Business wrecks were
afioat on every hand. We had the warnings of
the nine preceding years during which the
money of our country had been diminished
nearly siOO,OoO,OoO by contraction, and during
which time the liabilities for commercial fall
ures and bankruptcies had arisen from an av-
SOO,OOO,0OO. A panic had just swept over the
the country with sufficient havoc and ruin TO
extort the admission from General Grant in
of currency was too small for our business,
even at its dullest stages. We had less han
s735, 600 600, not counting fractional currency,
tive business and industry still further re-
duction was dictated, and has been effected to
the extent of nearly one hundred millions. II,
however, the law for the enforced resumption
of specie payments is TO stand unrepealed
our stature books, then there still remains a
work of destruction TO be done In this country
wretchedness than we have yet witnessed.
That law declaresthat-
"On and after the lst day of January, A. D.
1879, the secretary of the treasury shall redeem
in coin the United States legal tender notes
then outstanding on their presentation for re-
demptIOn at the office OF the assistant treasur-
er ofthe United States in the city Of New York,
in sums of not less than So"
The term coin here used means only gold
now, and the law, in order TO enable the secre-
tary OF the treasury to carry out this plan for
retiring the greenback money from circula-
ton, authorizes him to sell Understanding
bonds to obtain gold and TO use such surplus
revenues as he may have on hand.
The government has undertaken two things;
fist, tue shrinkage OF the amount of currency,
quantity that the one can he converted into
the other. The smaller, therefore, the Quanti-
ty of gold that can be obtained. the greater
in order to rest dollar for dollar on
such "a narrow metallic basis. 1t be-
comes. important in this view to
know what has been done under the law of
January, 1875, In accommodating gold a basis
for specie payments year hence. Many
efforts have been made TO ascertain the exact
amount of actual gold which this government
now owns, none OF which have been entirely
successful, for the reason that the sum
Is so small, but It Is per-
fectly safe to state, after deduct
ing the amount due as interest on bonds,
that there are not this day fifty millions OF
gold I'm the United States treasury and In all
the national banks besides II resumption is
to take place on thst basis, the gigantic task
OF this poor pittance will be TO sand good for
the redemption OF $3.50, 0. 1850 OF legal tender
notes, commonly called greenDacks, and S29l,-
64,236 OF national bank note circulation. maxi
ing in all the sum of S84l ,S3I 544.5O. 1t is very
plain, even to those who believe thatSl In gold
Is sufficient for the circulation and redemption
of s. in paper, that our present condition of 81
in gold 10 about Sl4 in paper must be radically
revoluti0nized against the day fixed for specie
resumption. What probability is there Of any
lar fr.or Of In.