The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1885-03-24

d K.
is of momentous importance to preveSt
the (coiu % two metals from pairing
compsny, bat the Two metals has al !
ready parted conpsny under theinIlu-..
enee OF silver Demonstration ID other
countries and the hostility Of TIE treas
-ury and hanks TO silver in this But that:
The continued eoinage Of silver at the
rate of S2S.000,o0U a yesf will drive
gold ont Of citculation inthe near fu-.
ture, or force tito premium. does not.
TO them seem to be sustained by facts or
sound reasoning Tae total volume OF
currency in'the United States outside OF
gold is less than s75O, 0O0,O 600.
'Itis belyssea to be The principle Of.
iecoaonszc science, perfectly well settled;
that if the volume of $3.50 100000 is
not sufficient in ilself to maintain prices
in this country at the level OF iuterna.
tional prices, then gold will come here
and stay here in sufficient amount to
make, with the volume already in crcu-
Is'ion, what will constitute our distrib-
utive share OF the worlds money as de
termined bv our international trade -
That S750,000 900 is not sufficient vol
ume 10 maintain prices at the worlds
level OF prices, is evidenced by the fact
that 5000. .000.000 10 gold, eonsidera-
ble part of which at least, is IN circula-
ton, either 10 the form of coin or GER
tiicates, now stays here, ami it will go
away only when prices become lower
elsewhere than they are here 1t is be-
lieved, therefore, that no such crisis as
has been foretold can overtake us under
existing conditions.
II is not believed to he in the power
Of all the hanks in the country; even il
they were so disposed, to take the gold
ont of circulation and hold it for any
length OF time at premium. They
must first lock up the worlds money,
and arrest the worlds commerce. Nor
can paper or silver or silver certificates
now in circulation side by side with gold
exnel gold. The gold can be expelled
only by forcing into circulation, in ad-
diliou to the S750,000,0O0, either silver
or paper equal TO the entire volume o.
gold now in circulation In that man
ner, under Gresham's law, gold might
be expelled, and probably would be.
1t is doubtless true that il the popu-
lation and wealth 10 this country we're a.
a stand, then the continued coinage Of
silver in sufficient volume would in time
expel gold fro m circulation, but as long
as the popula ion and wealth go ON in
creasing, then the conditions of The
problem are changed. In fact, 10 order
10 preserve stable ratio between the
money volume and population and wealth
an annual increase of not less than s40.-
00O,0O0 of currency Of some kind il
now required. In other words, the in-
crease Of population and wealth calls for
al addition TO our circulation of at lea I
SAC. .000. 600 year. Ii viii e these con-
ditions continue silver is coined at the
rate OF only S2S 600 900 year there is
left still considerable void 10 be filed
with gold. Tnis is the reason why gold
hiss increased in the country steadily
since the act OF 1878 was passed, and
why gold has increased by nearlv Sl4.-
000,0 900 during the last year, and Is now
increasing at the rate of nearly 81 ,o00.-
coo month, Notwithstanding the de-
preston in business in the country, and
as a matter OF fact there is to day more
gold in the country than there ever was
before in its whole history.
Another fact is that $50, ,000, 600 in
the treasury was put there in exchange
for silver certificates. The immeGiate
effect OF stopping the coinage OF si.ver
must necessarily be to lower the price OF
silver and gradually to appreciate the
value OF gold the world over The dit.
ticultes in the way of establishing an in.
ternational ratio so much desired or oil
the readjastment Of relative value to
gold here would thereby be increased.
How it is possible for such things to
take place as are predicted in the last
parag -apa of the letter it would be dlf.
ficult to see. Col is to he Withdrawn
to its boarding places, followed by un.
precedented contraction in the actual
volume of our currency. Such q con
traction, it has been shown. must be lol.
lowed by great tall of prices. What
lben3 Would not gold apw here az
tiles f)wp Surely it would come as fast
as the ships could bring 1t. What would
those who have been boarding gold do
with it2 Labor, the letter says. already
nearly depressed. would suffer further
depression by the scaling down Of the
purcha-ing power of every so-called dol
lar paid into the hand of toll. Here in
one sentence we have gold hoarled, un.
precedrnled contraction, the fall OF prices
aud sealing down of the purchasing pow.
er of q dollar; that is, when these i'm
pending cslamitIes come prices are IL
all, everything becomes cheaper and
money becomes less valuable at the same
time. That is. both sides OF the balance
90 down together. Usually one side goes
up az the other goes down. Usually as
commodities become cheaper, money be-
comes relatively dearer, aa1 vice versa
q ,uslly contraction of money volume
results in ise in value OF money and
not IN fall. The contradcuons in
volved in this paragraph OF the letter are
hardly calculated 10 carrv conviction to
those wuo have ever studied the money
questions at all, or TO awsken in them
any sense OF alarm at our approaching
calsmIties from snch causes.
In one thing all will agree, and that j.
in the importance 10 the whole country,
and especially to the laboring classes
now struggling out OF want Of the revi
val OF hnsiness and the resclion OF pros
peritv. The one condition essential to
this is to stop the contraction of the cur
rency No country ever did thrive, and
never can, while ito money is undergoing
contraction. Business cannot be secure
when its foundation is constantly giving
wsy. Stability in the volume Of money
is the one essential rtqnisite to safe and
prosperous business. What Is the mon
etsry condition OF the world to-day
Are we not brought face to face with the
startling fact that the gold production-oi
the world has fallen below It's consump-
tion in arts, and that there is no posi-.
bility OF any new gold for the money