People's party paper. [volume] (Atlanta, Ga.) 1891-1898, 1892-08-26

(
fected. Silver was no longer avail
able for currency purposes in Eng
land, but it continued so available
almost everywhere else. Hence this
action on the part Of England oper-
ared simply as a local currency regu-
lation.
She sent the silver aboad to ex-
change for commodities and kept
gold at home for use as currency.
But wherever that silver went it con-
tinued to form a part of the worlds
stock of standard coin and weighed
in the great balance against the gen
eral stock of the worlds commodi-
ties. For this reason the change of
the monetary unit in England pro-
duced no disturbance Of values, and
property of every species in the
United Kingdom continues to be
measured by the double standard, as
before.
So I lay down the broad PROPOSE
ton that at the beginning Of 1873
the great mass of gold and silver
coin, linked together at the ratio Of
49, ounces of silver to l ounce Of
gold, made up the aggregate volume
of primary money of the world.
This metallic money constituted not
only large part of the CURRENCY in
actual circulation, but it was also the
foundation of that immense struct.
ure of credits which modern business
methods had brought into existence.
[ now take a second step and lay
down the further proposition that at
the date mentioned there was not
even a pretense, publicly expressed,
that this aggregate mass Of money
was any too large for the business
requirements of the world.
When the great gold discoveries
of California and Australia were
made some writer's thought that gold
might become super-abundant, thus
destroying the ratio of ISL and in
iuring creditors, who, it was assumed,
would be paid in the cheaper metal;
but so far as | know net one ever
took the position that there was at
any time actually too much money.
That was not the idea which induced
any country to demonetize either
metal. England adopted the gold
unit upon the advice Of Lord Liver
pool, in the interest of what he
deemed to be commercial con-
venience. The double standard was
thought to involve slight fluctuations
that caused more or less trouble to
merchants engaged in the foreign
trade and interfering with the close
precision Of accounts.
The question Of aggregate volume
was never considered in the matter
at all. The same is true of Germany.
Whatever the shrewd and cunning
fnanciers behind the scenes may
have intended, the reason given was
that Germany ought to be in accord
wi b the monetary policy Of England
because Of their close commercial re-
lations. In the United States the
matter was not discussed at all. The
silver dollar was just dropped out Of
the coinage and nothing was said
about it.
SO, | repeat, that up to the begin
ming of 1873 there was no such
thing as claim that there was any
too much metallic money in the
world. If this be true, it follows as
logical and inevitable conclusion
that anything which deprived the
world of a considerable portion of
the money which it then had, left it
with an insufficient supply. 1t is
impossible for any man who has a
logical idea in his head to get away
from as plain proposition as that.
If you have none too much of a
given thing, and a portion Of that be
taken away, it must leave you with
too little; nor can it make any diff
ference, save in degree, whether the
result be brought about by actually
destroying portion of the thing or
by depreciating it's quality so as to
render it less effective in satisfying
the popular demand. The law OF
supply and demand applies to money
just as perfectly as it does to any
thing else.
DECENTRALIZATION OF SILVER.
In 1873 the German Empire and
the United States of America both
demonetized silver and adopted gold
as the sole standard of value. About
year later France and the other
States of the Latin Union | NIT d
the coinage of silver, and in 1878
ceased its coinage altogether. Silver
was not completely destroyed as
money by this action, but its efficiency
was greatly impaired. 1t was rele-
gated to secondary position. 1t
continued to pass from hand to hand
in cash transactions, but gold became
substantially the sole support Of the
GREAT fabric IF crodit hv moanc Of