The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-03-02

country at the level of international prices then
gold will come here and stay here in sufficient
amounts to make, with the volume already in
circulation, what will constitute dstributive
share of the worlds money, as determined by our
international trading. That $3.50 900 600 is not
sufficient volume to maintain prices at the
worlds level of prices is evidenced by the fact
that 5000 600 900 of gold a considerable part of
which, at least, is in circulation, either in the
form Of coin or certificates, now stays here, and
it will 60 away only when prices become lower
elsewhere than they are here. 1t is believed,
therefore, that no such crisis az has been fore
told can overtake us under existing conditions
1t is not believed to be IN the power of all the
banks in the country, even If they were SO dis
posed, to take gold out of circulation and
hold it for any length OF time at
a premium They must first lock up the
worlds money and arrest the worlds
commerce, nor can the paper or silver, or silver
certificates in circulation side by side with
gold, expel gold. The gold can be expelled only
by forcing into circulation, n addition to $780,
100000, either silver or paper equal to the en-
tire volume of gold now in circulation. In that
manner, under Greshams law, gold might be ex-
PEELED, and probably would be.
1t is then argued that if the population and
wealth of the country were at stand contn-
ued coinage of silver in sufficient volume would,
in time, expel gold but so long population
and wealth continue to increase at present rates,
an annual increase of $40 900 900 is necessary in
the volume of currency, and the coinage OF $28-
00000 Of silver leaves ST.. 600 600 to be supplied
in gold. The immediate effect of stopping the
coinage of silver must necessarily be to lower
the price of silver bullion and gradually appreci
ate the value Of gold the world over, and the
difficulties in the way of establishing the inter
national ratio so much desired, and of read
justment of silvers relative value to gold would
thereby be increased
How it is possible for such things to take
place az are predicted in the last paragraph OF
Mr.. Cleveland's letter, it is difficult to Gold
Is be withdrawn to its boarding places, followed
by An unprecedented contraction in the actual
volume of our currency. Such contraction it
in prices? What them Would not gold
flow here as the tides fow9 Surely it
would come as fast as ships could bring It,
What, then, would those who have been hoard
''already greatly depressed, would suffer still
further depression by scaling down of the pur-
chasing power Of every so-caled dollar paid into
the hand of toll" Here, in one sentence. we
have gold boarded, unprecedented con
down of the purchasing power of
the dollar That is. when these impending ca
amities come, prices are to fall everything be-
come cheaper and money become less valuable
at the same time That is, both sides of the bal
ance go down together Usually one side goes up
MS the other comes down. Usually, as commodi-
ties become cheaper, money becomes relatively
dearer, and vice versa. Usually contraction
of the money volume results in
involved in this paragraph of the letter are
hardly calculated to carry conviction to those
who have ever studied money questions at all. or
| to awaken in them any sense of alarm at our APP
preaching calamites from such causes In one
| thing all will agree, and that is one of impor-
lance to the whole country and especially to the
laboring classes, who are now struggling with
want of revival of business and reaction of pros
perity in this state of affairs. The one
condition essential is to stop con-
traction of the currency. No country
ever did this, and never can while its money is
undergoing contraction. Business cannot be
secure when its foundation is constantly giving
way Stability in tho volume of money is the
one essential requisite to safe and prosperous
business. 1t is then urged that continued coin
age of silver is necessary, for the reason that
the production of gold is constantly decreas-
ing and the use of that metal In the
arts constantly increasing. In the last three
years, according to the London Economist,
prices have fallen more than 20 per cent That
is money has appreciated in that ratio. In the
quarter of a century following the dis
coveries OF gold In California and Australia
the stock of precious metals in use money
was increased nearly 40 per cent Tho
trade and commerce of Great Britain and the
United States, during the same period, increased
more than four-fol9. and wealth proportionally.
Reverse these conditions, shut off all money
supply, and what room for hopeis there for man
kind except for those whose incomes
| are sure? With appreciation Of money,
all debts appreciate. When it is remembered
that such debts run into the tens of billions
more than the entire present wealth of the
United States-the vast consequences Of appre-
citation of money are seen. The control of
feudal lords over the earth in the middle ages
was insignificant compared with the control of
| the modern creditor kings and lords, who,
through legislation, can secure an increSe in
the value of money.
JUDGE REAGAN's STATEMENT.
l. IY160o 70 cfa &c
the whole subject matter at issue between the
| silver men in Congress and Mr. Cleveland, in
| which he characterizes some of the latter's
declarations most extraordinary and astonish-
ing. The Judge concludes the discussion of the
question as follows:
''The people of this country know, whatever
bankers and bondholders may think, that this is
an effort to subordinate tho interests of the
American people to the class known bankers
and bondholders, and to compel a Democratic
President and the Democrats in Congress to
adopt and carry out the very policy for carrying
out which the Republican party was beaten and
turned out Of power That party was the tool of
corporations and money kings, and it was beaten
for being so, and the Democrats
clothes not Ss R to taae up rv the wne old
they threw them down The country has not
| yet forgotten that in 1878, when Congress was
| trying to restore silver to circulation and to
prevent retirement and cancellation of the legal
tender notes. the banks, in order to prevent this,
contracted the volume of currency nearly $l9,-
600, 900 in about three weeks, threatening
monetary panic, for the purpose of intimidating
Congress and the President and to prevent pas
sage of measure which the best interests of the
country required; and they would have produced
a panic if the Secretary of the Treasury had not
thrown considerable amount of money on the
market to buy up public securities and furnish
the necessary circulation. 1t is stated that they
are now threatening another panic If they cannot
succeed in what they want 1t is to be hoped
Congress will answer them by repeating the law
| authorizing the charters of the banks and con-
troll of the volume of money. or at least take
from them the privilege of issuing currency and
| controlling its volume We can safely dispense
with national bank notes by substituting in
| their place equal amount of treasury notes
instead, which would be receivable for all taxes
| and dues, and redeemable in coin at the will of