Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-09-06
ONE or TIE rrET vorDrRs,
CONTRACTS TO PAY IN GOLD.
Comments of Judge z. w Hughes on
Major Doolev's Letter.
RICHMOND, August 81, 1891.

RICHMOND. August 81, 1891.
To DE Editor Of the UlspGich:
was glad TO see in Sundays DISPATCH
the timely and valuable letter Of Dir.
Dooley on tho currency question. / have
refrained from discussing the legal branch
Of tho subject, but do not suppose that
any lawyer conVerssnt with constitutional
principles will contend for the validity OF
gold contracts made IN contraventlon or
circumvention OF express lRws OF Congress
defining legal tender.
Whether Congress 10 competent to make
inconvertible paper money legal tender by
mere fat may be open 10 debate; but
whether Congress. as we'll as the states,
may make gold and silver coins Of the
United States legal tender-either class OF
CONS valid for the payment OF any debt.
is not matter Of doubt. 1t is the will
supported by the fat of Congress that de-
termines tho value Of gold and silver
coins; and this value having been de-
termined by congressional prerogatlve,
tue auxiliary pIorogatIye OF the States 70
make tho coins Of the two metals equally
and INTERCHANGEABLE legal tender for
ell debts, is unquestionablA Under these
limitations, the prerogative OF Congress
and States Is autocratic, absolutely CON
trolling all contracts whether already
made or yet to be made. What would tho
high prerogative be worth II 1T could be
circumytnted by such devices as gold con
tracts2 The only question is whether
Congress and the States will exercise their
powers, and do not doubt that prcroGa-
tive legislation of appropriate efficacy Will
be promptly forthcoming Whenever the
bond-desling class shall become so intatu
ated as to provoke IT., Forthcoming both
from Congress and the States.
GOLD AT PREMIUM.
Mr.. Doolev thinks, with reason, that
free-coinage law would send gold to pre-
MUM over silver, and lead to o suspension
OF gold payments on general contracts
Ny own mode of expressing this belief
would be that the bond-dealinR GLASS would
mako such law the excuse for sending
gold to On acknowledged premium. Mr.
Dooley reminds Us Of the fact that the
bond-dealers are systematically placing
themselves in position, by issuing only
bonds payable il gold and by diligently
boarding gold, Ito pluck o proft at the
expense Of the debtor" as the result OF
Suspension Of gold payments, and the con-
sequent premium on gold.
think IL certain that troe-coinage oct
will be passed; whether ct once or after
more or less delay Is not matter OF much
importance. also think it probable that
after the passage OF suoh a law tho bond
dealers will in blind infatuation conspire
TO run gold up to premium over silver
and will thereby produce state OF things
in which there will DO one money tor the
people and dearer money for the bond
holdcrs. Whether this predicament Will in
q free country, under popular goyeEEn l1dsns
be comfortable one for tho bondholdeIs
to stand in may safely be left 70 the imagi-
nation OF whom It may concern.
But wish TO say, for one, tgat DO not
look with any dread upon such state OF
things as Mr. Dooley very reasonably
thinks may como about as the consequences
OF O freo-coinage law. That there should be
two sorts Of good monsy ia REGULATION, one
of them desrer ID greater or less degree
than the other, would not 10 an unml1ed
evil II both be good, and " DC cues
ton of premium and not of dobassnent,
[ will not 90 into COMMISSIONS because one
IL boarded ct o premium and the other
thereby obtains general and tree eirUuia-
ton In liberal quantity.
ACCUMULATION OF MONEY! IN CENTRES.
For II NAV be laid down as O historical
and financial fact that whoreyor and when
ever the money circulation OF country Is
of such absolute equality in value that
it Ia taken as freely in the cities by the
great banks as in the country by the poo
pie il. natural and inevitable tendency is
so to accumulate IN the principal money
centres "a to. leave the interior without
adequate circulation. In such condition
of things transactions in the interior are
all in tho nature Of exchange and barter {;
money is beyond the reach OF the INDUS
trial classes, agricultural lands become un-
saleable, and farm products, falling Oh saIe
-. NJ Aplu sTIph DrlCna "a are
fixed in distant markets. minus freights,
commissions, and nameless charges.
AN IMPORTANT PROBLEM.
The most important problem in the SCI
ence of currency remains to this day un-
solyed-namely, how TO provide cur
rency that will stay among the people CO.
existent and equivalent with one that nows
continuously to the money cent.es. In con-
seouence OF the absence OF such cur
rency three-fourths of the populated area
of the United States Is In o state OF barter,
suffering the repression and poverty which
results from the definition OF circulating
| cash.
PRESIDENT HARzIsoS's vIEwA
Mr.. Harrison. tho other day OF Albany
thought be WAS giving. utterance 70
| grand sentiment when ne said IN suo
stance, to the 10Y OF Wall street, That ~
| would never approve measure that wouie
make the dollar received by tho workman
for his labor Of less value than the, dollAl
demanded by the banker from bis debtor
The trouble ID that whom ell the dollar
are Of equal value they ell take wings IRON
the hsbitstions OF labor and nv 70 tn
centres Of capital, leaving tho workma,.
waiting day after day and weei
after week for the wages nscessal:
ceive billets Of credit drawn upon IA
local grocer and tradesman, instead OF ia
dollars due for his labor. To restrict thu
currency exclusively TO such dollars q
Mr.. Harrison describes, II to deprive tn
regions Of country populated by the pro
duoing classss Of their share OF the circu
1 lAting medium.
4 GOOD ENOUGH DOLLAR.
As already said. the question Is not on