The great West. [volume] (St. Paul, Minn.) 1889-18??, 1891-05-22
WIN was Silver Demonstrated.

y
had possessed the right from the
foundation of the Government, to
take gold or silver to the mint and
have it coined for his benefit into
standard coins which we're legal-t ten
der for taxes, debts and other obliga-
tions of every description.
What reason was there for deprvi-
ing the people of this right in 1873?
There was neither gold nor silver in
circulation in the country at that
time. The resumption act was not
passed till a year later 1t was ex.
pected, however, o. course, that soon.
er or later, we would return to the
metallic standard.
THE VOLUME OF PAPER MONEY.
The legal-tender money in circula-
ton in the Northern States at the
close of the war, in 1865, was 1886,
100000. This was exclusive of a
large amount of Government indebt-
edness, represented by paper in var
ious forms, which for time was held
in circulation.
The population of the Northern
States at this time was about "a ;
100000. Thus the per capita of le-
gal-tender moneJ was not less than
$40.
CHANGES IN THE VOLUME OF MONEY.
Two changes in the volume of
money took place rapidly after 1865.
First. The money then in exis-
tence was spread over the Southern
States, being soon divided among
35,0OO,OOO, of people instead OF a.
100000.
Second. The volume was rapidly
contracted, till in 1851 was reduced
to less than $70O,OOO,OOO for 49,
100000 of people, and was no larger
in 1879, when resumption took
place, for 100000 of people, be-
ing reduced at this time to $14 per
capita.
Of course, prices fell in proportion.
We were told, however, that the
cause OF the fall OF prices was over
production. People did not under
stand as we'll then as they do now
that the real cause was the change in
the money volume.
Commodities are always weighed
against money, and where there is
little money more commodities must
be given for dollar.
THE PUBLIC DEBT.
In August, 1865, the public debt
which grew out OF the war reached
it's highest point. At this date the
interest bearing debt was $780,
$4,000. The total debt reached
So, S44, $4,000 The debt, less cash
in the Treasury, was 50, 1864 900.
The bonds had all been bought
with greenbacks and had cost in gold
but from AZ to IS cents on the dollar.
But while the volume of paper
money was being rapidly contrac-
ted, from 1865 to 1873, both gold
and silver were money, and we had
the right to fall back on the two me-
tails at the ratio OF 16 to for money
supplies, and every dollar of the
vast debt stated in the preceding
paragraph, as well as a much larger
sum OF State, municipal and private
debts, If not payable in legal-tender
paper, was, al any rate, payable in
either gold or silver coins, at the
option OF the debtor.
The general understanding at the
close OF the war was that the public
debt was payable in greenbacks.
[See platform OF Republican party of
Ohio for 1868; also, letters OF Cover
nor Morton, Thad. Stevens, Sherman,
and others.
Could thee then be any excuse in
the world for striking down half OF
the metallic money in 1873?
No bonds or other Government
obligations were ever made specif-
cally payable in gold. The interest
on the bonds was payable in coin,
the principal of the original bonds in
lawful money, and of the refunding
bonds, in coin. No man on the earth
had the legal or moral right to de-
mand gold payment; much less had
any one the right to demand that
silver be demonetized and gold made
dearer, and then that payment of all
debts should be made exclusively in
gold.
Why, then, was the
MONEY STANDARD CHANGES?
There can be but one reason. A
change in the money standard from
gold and silver to gold alone would
correspondingly increase all debts in
the hands of those who held them.
A proposition to directly increase
the bonded debt of the United States,
or any other debts, would have been
too bare faced a fraud to be made by
any one. Nor would any one have
dared to propose an increase in the
weight of coins as a means ofincreas-
ing debts, but if one of the money
metals could be dropped out the
effect on the other and on debts
would be the same as if the weight of
coins had been increased. Hence the
device to demonetize silver and in
that way to increase the value of
money, and with it all debts, was