Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1884-08-24
The Double Standard.

At last we have found ourselves In agree
mcnt with Mr.. wATTERsoN. We viii ex'
plain. A New York paper recently said;
"a double standard in finance could no
more give stability Of currency than dou-
bic standard OF theology can give staoi'ity
in doctrine. There can no more he dou-
bic standard OF value than double stand
ard Of dimensions or weight"
Mr.. wArTERsos comments as follows:
"Thls dictum OF the Christian Union Is
a very silly one, mainly for the reason that
while mora. principles are immutabie' all
commercial commodities, including gold
and silver, are constantly nuctuatlng In
value. As the former are immutable they
cannot shift their relative positions In re-
spcct 10 each other, but as all commercial
commodities are subject 10 continuous
variations, their relations 10 each other are
liable TO az continuous change. The true
standard Of value Is labor. and II gold
could be produced with half the labor now
required its purchasing power would sink
pr0portionately unless the cost OF produc-
ing other commodities should decrease
IN equal proportion. The value OF gold
Is high at preseat because OF two prin-
cipal conditions: First, given amount
OF labor cannot produce the same quantity
OF gold as twenty years ago, as there l. les,
gold accessible 10 cheap miring processes;
and. second, given amount OF labor pro-
duces FAR more merchandise either in the
shop or the field. because OF he increasing
perfection Of machinery. The philosophy
Of a double standard or measure OF value
is that the two metals-gold and silver
ly reciprocating action on each other pre-
Iii
uations OF the products OF industry than
either is capable OF doing alone. II gold
tends 10 rise, the demand Is turned upon
silver. which Is thereby advanced. while
gold stoops TO meet it, and Uice versa. il
silver tends 10 rise, as 1t did in the United
States In lS70-'73. The result Is 10 keep
both metals at u reasonable equilibrium"
A better illustration Of the double stand
ard may be found IN clocks. Clocks whose
pendulums are made OF single metal are
affected by heat and cold. In order to
remedy this defect and to render the clocks
perfect, the clock-makerS invented Il new
pendulum. The best pendulum is now
composed Of two metals. II Is made OF
compensating compound. When the one
metal expands quarter OF an inch the
other contracts quarter of IN inch, and
thus the movements Of the clock are regu-
lated so perfectly that it neither gains nor
loses time as a consequence OF either heat
or cold.
SO it is with the financial system OF this
country. The double standard is protec-
ton against panics. II the demand for
specie grows strong, we claim the right to
pay in silver according TO the contract,
which calls for "cOin," not gold nor silver.
The right to redeem Treasury notes IN sill
yer is what enabled the Government TO
resume specie payments IN 1879. The
demonetizatiOn OF silver is said to have
caused the panic of 1873. Whether that be
true or not, it may be affirmed with conf
dencc land we are too near the late scare to
be able TO forget III that but for the option
which the Government and the banks as
well as persons had OF paying out either
silver or gold, there would have been pa
mic only a few months ago.
We are not sure but the Government
ought TO stop purchasing silver in order to
coin il. Congress ought to study this ques-
ton thoroughly and act accordingly. But
we are sure that the demonetized silver
would cost the country more in the shape
OF the losses consequent upon panic than
all the gold in the Treasury is worth. Just
as certain AS that two and two are equal to
four is it that the purchasing power OF gold
would be vastly increased il silver were de-
monetlzed. It's With these metals rs withany
commodity. Mr.. McCULLoCH, once Secretary
Of the Treasury, candidly confessed last
week TO the American Bankers Association
what, indeed, was well known befoie)
that he had ceased to be monomctallist.
All the bankers will some day come to the
same conclusion. Mr.. JONI Thompson, OF
New York, one OF that class. has followed
Mr.. McCULLOCH into the ranks OF
the advocates OF the double standard.
Let us not triflc with it. Who would ask a
bank for Treasury notes or bank notes
rather than silver il he desired money OF a
kind that would do to lay up for twenty
years? Nobody. Let men say what they will,
they know that silver is real money, where
as grcenbacks and bank-notes are nothing
but promises to pay money. Can there be
too much real money?