The advocate and Topeka tribune., 1892-10-05


Before French monetary convention
in 1859 testimony was given by the late
M. WOlOwskI, by Baron ROthschild, and
by NJ Rouland, governor of the Bank Of
France.
N. Wolowski said:
The sum total Of the precious metals Ia reck-
Oned &C Rty milliaTdS, one-hal4 gold and One-hsli
silver. II, by stroke OF che pen, they suppress
one Of these metals In the monetary service,
they double the demand for the other metal, to
the ruin Of all debtors.
NJ ROulsnd, governor Of the Bank Of
France, said:
We have not TO do with Ideal theories. The
two moneys have actually co existed since the
origin Of human society. They cOeXist because
the two together are necessary, Dy their quantity
70 meet tho needs Of circulation This necessity
of the CW0 metals, has it ceased 70 exist? Is It
pectlVe gold ls such that We can now renOunce
the use OF silver without disaster?
Baron ROthschlld said:
The simultaneous employment of the two pre-
ClOus metals Is satisfactory and gives rise TO no
complaint. Whether gold or silver dominates
for the time being, lt Is always true that tho Two
metals concur together In forming the monetary
circulation OF the world, and 1t Is the general
mass OF the two metals combined which serves
as the measure Of the value Of things. The sup
preston OF silver would amount 70 Veritable
destruction Of values without any compensation.
At the session October 80, 1879 of the
Belgian monetary commission, Professor
Laveleye said:
Debtors, and among them the state, have the
right 70 pay In gold or silver, and ChlS right can
not be taken away without disturbing the re-
latiOn Of debtors and creditors, 70 the prejudice
OF debtors, TO the extent Of perhaps One-hah
certainly of One-third. To increase all debts at
blow (bTDISQIengentl, iS measure 30 violent, 30
revolutionary, that / cannot believe that the
government viii pr0pOSeit, or that the chambers
will vote 1t.
The contrast presented by these su-
thorltles between the effects of an in
creasing and decreasing volume Of money
shows that II change In the one direc-
ton or the other is unavoidable, a change
in the direction Of increase Is the most
desirable. Undoubtedly the best con-
dition upon the whole is that Of steadi-
ness, or only such an increase Of money
as would correspond with the advance Of
population. But with the history before
US OF thirty centuries Of mining, we
know that an Injurious and excessive In
crease Of metallic money has never oC-
CURED. We may feel assured that 1t
never can occur, because the enlarge
ment Of commercial exchanges, which
results from an increase of money,
speedily restores the equilibrium. The
danger Of an unduly increasing money
is theoretical and fanclful. The mischief
which practically threatens the world,
and which has been the most prolific
cause Of the social, political and indus
trial Ills which have afflicted It, Is that Of
q decreasing and deficient money. 1t Is
from such deficiency that mankind are
now suffering, and it is the actual and
present evil with which we have to deal
A single standard ruiN6us to debtors
Magnitude of public and private debts
All debts must at last be paid through
exaction from labor, and the real pres
sure OF debts ls measured by the prices
Of the commodities which debtors must
sell in order to make payment. It Ii
thus that the volume Of the precious
metals determines the real pressure ol
debts by determining the prices Of com
modltleS. There 10 partial exception
to this in the case Of the domestic debts
Of countries In which lnconvsrtlble pa
per 10 made money by force Of law. But
such paper will liquldate neither the in
dlvidual nor corporate debts Of such
countries which are payable abroad, nor
with rare and unlmportant exceptions