The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1885-07-08
A Welcome Ally.

We are glad to see our good contem-
porary, the Ne,o England Farmer,
printing articles like the recent one by
George A. Bacon of Washington, d.
c., upon "The Farmers Interest in
the Currency Question" This writer
reasons clearly and Understandings
upon the necessity to our people of a
broader specie basis than can be fur
nished by single money metal. He
very truly says that "the relation of
the money question to agriculture and
its products, or, in other words, the re-
lation which the volume of our currency
holds to agricultural prosperity, is of
such vital character that it primarily
demands the most thoughtful scrutiny
of intelligent farmers everywhere. 1t
is sure at least to receive, as it Justly
merits, this consideration from politi-
cal economists, for they fully realize its
significance, while dealers and specu-
lators in grain and breadstuff eagerly
watch for whatever may affect the
slightest change in prices" And as he
truly adds, "lessening the rates of in
terest, reducing the expenses of trans
portation, removing the burdens of
taxation, increasing the volume of cur
rency, equalizing the measure of profits,
and matters of kindred character. are
considered by the average farmer as
beyond his immediate or special prov
ince. This is grave mistake" In
deed it is a mistake, but while all the
country, as well as the city, newspapers
sustain the views of the banking and
capitalist interest, and the agricultural
papers are " like dumb dogs that will
not bark" how can farmer get hold
of the truth in this matter if he should
desire it? This article of Mr.. Bacon
is full of important facts, many of which
we have already called to the attention
of the readers of this department. 1t
is desirable that every wide-awake
farmer should realize that it is in the
power of congress, by legislation, to de-
press the price of every article he pro-
duces, if it can be induced to legislate
as the capital interest would dictate.
We have to thank the majority of that
body that so far they have stood by the
working people of the land, and this
under much opprobrium from the I'M
thinking and the subsidized press. The
universally admitted truths of 'political
economy" are withheld from the peo-
pie, or so muddled and disguised that
their force is not understood. For
all works upon economic subjects
agree that the volume and distri-
button of the circulating medium regu-
lates values, and that prices rise and
fall in exact proportion as the vol
ume of money is increased and di-
minished. An excellent authority, DR..
Miller, says: "To stop coming silver
would be, practically, to demonetize it,
the effect of which would be to increase
the debts of the country about one
sixth. This loss to the debtor classes
would greatly add to the already de-
pressed condition of business, and in
vite widespread bankruptcy"
AS to the simulated fear of an excess
of metallic money in America, Mr.. Ba-
con shows its futility by the following
conclusive facts; With a population
of twenty millions less than the United
States, and territory not as large as
Texas, France has in its circulation.
5000, 100000 of silver with $3.50 900 900
of gold, while we have only 5000, 100000
of full tender silver to our 5000 900 900
of gold. Europe has 81 300, 900 900 of
silver coins, at the rate of fifteen and
one-half to one, in circulation side by
side with $4,000, 100000 of gold; while
we, of paper and silver together, includ-
ing silver certificates, have less than
$3.50, 100000, showing that in this coun-
try there is more gold than paper, and
nearly three times as much gold as
silver"
On the difference between the money
metals, as bullion and as coin, which is
so strangely ignored by certain class
of writers, he says: Take this leaf
from recent history. In 1S47, under
Sir Robert Peel's banking act which
demonetized silver, not pound of gold,
or Bank of England note, which
alone were legal tenders, could be Dor
rowed on ton of silver. And in CAL
cutta, in 1884, when not dollar in sill
yer, which was the sole legal tender, or
of paper money redeemable in silver,
could be borrowed on a ton of gold.
This shows that the value of money de-
ponds not upon the material of which
it is composed, but upon its use as
money. Witness the trade dollar.
Witness the first issue of $50, 600, 900
of greenbacks, which, being made full
legal tender, were always the equivalent
of gold. Witness again the greenback
when shorn of its legal tender value"
Questions and Replies.