The advocate and Topeka tribune., 1892-12-28

enormously enhanced IN value by the
new demand and competition for it with
other countries, which gold resumption
in this country would inevitably cause.
The premium on gold in greenbacks is
small, but the premium ON gold in Bank
Of England notes was still smaller in
1921, when the British resumption Of
specie payments in gold resulted in q
most ruinous reduction Of the prices Of
property and Of the wages Of labor. The
value ofgold is not at all the same thing
before and after a sudden and new de-
mand for it to the extent of hundreds OF
millions Of dollars.
With the history yet fresh Of the
British gold resumption, which brought
ruin upon generation, there can be no
excuse for repeating the fatal error Of
David Ricardo, the leader in that dis
astrous work, that resumption means
only an appreciation Of paper equal to
the difference between paper and gold
before the resumption.
In the debates in the British house Of
commons on gold resumption, May "a,
1919, Mr.. Ricardo said:
The question is not deserving half an
hours consideration Of the house. The
difficulty is only that OF raising the cur
rency 3 per cent. in value. And who
can doubt that, even in those states in
which the currency is entirely metallic,
it often suffered q variation equal to this
without inconvenience to the public?
William Ward Remarks on the Com
mercial Legislation of 1846), quoted in
Doubleday's "Life Of Sir Robert Peel"
volume l, page 245), says;
Mr. Ricardo lived to change his oplu-
ion, and shortly before he died 1929
expressed that he had done so. The late
Sir w. HeyGate was with him, and h-
said: GAY! HeVgate, you and the few
others who opposed US on the cash pay
ments have proved right. / said the
difference at most would be only 5 per
cent. and YOU said that, at the least, 1t
would be 25 per cent" This is stated on
the authority Of the late Alderman Hev-
gate. 1t is pity that Mr.. Ricardo did
not, as some atonement to his country
for the tremendous mischief he then,
past doubt, occasioned. publish this re-
cantation under his own hand.
If, however, what is intended is not an
actual resumption of specie payments in
gold, and the actual and constant con-
vertibility Of greenbacks and bank notes
into gold. but only the appreciation of
greenbacks to nominal parity with
gold, and if greenbacks are to continue
to be the ordinary currency Of the peo-
pie and gold is still to be used only for
the payment Of import duties, an i'm
mense injury will have been inflicted
upon the country without any commen-
surate benefit. There would still be
fluctuations, depending upon the course
OF foreign trade in the relative value Of
gold and greenbacks, and calculations OF
the greenback price Of gold would be no
easier at 1OO16 than at 1O5. Any re-
sumption not based upon large and
adequate supply of gold would be de-
lusion and snare, leaving the country
exposed to the changes and chances of
commercial and political events abroad
The business Of the country would be
always disturbed by the fear or fact Of
suspension. A merely nominal resump-
tion would be baseless sir-built castle,
liable to be toppled over by every
breeze.
If q parity of the national currency