The advocate and Topeka tribune., 1892-09-14
MONETARY COMMISSION.
Report OF the United States Monetary
Commission, Appointed by Act Of Con-
gEegs Augugt ~, 1870

NO. XIII.
a concession to the paper MeOry-A neSO
scheme of metallic money tbGt GbGHdORs
automatic regulation and GcknOSUb-
edges the interference of government
TO be necessary to secure SteGdtaeSS IN
the UGtue Of money.
The world has generally favored, theo-
retlc&lly IL not practically, the automatic
metallic system, and adjusted its business
to it. Some nations adopted one metal
az their standard, and some the other,
and some adopted both. Those that
adopted both metals served as balance
wheel to steady with exactneSS their
relative value. The practical effect Of all
this was the same as il all nations had
adopted both, because il secured the en-
tire stock Of both at fixed equivalency
for the transaction Of the business OF the
world. While some nations have changed
their money metal, or, having had paper
money, have resumed specie payments In
one metal, the policy Of q general de-
monetizaton OF one of the metals wRs
first broached only about twenty years
ago. About ten years later, a formidable
propaganda was organized to issten that
policy upon the commercial world.
This new school Of financial theorists
advocate the retention Of metal as the
material Of money, but favor Its subjec-
tion to governmental interference In
every respect. Whenever new mines are
discovered, or old ones yield or promise
TO yield more abundantly, instead Of
freely accepting their product in accord
ance with the automatic theory, they Rd-
vocate its rejection through the
restriction or the absolute prohibition Of
the coinage of either or both metals, or
through the Limitation or the abolition Of
the legal tender function Of one of them.
Whenever the interests Of the creditor
and income classes seem to be In danger
Of being impaired by an increase In the
volume and decrease In the value Of
money, or, In other words, by general
rise in prices, these modern theorists are
clamorous in double standard countries
for the demonetizAtion Of one Of the
money metals, and In single standard
countries for the shifting Of the money
function from the metal which promises
the most to the one that promises
the least abundant supply. They are ex-
tremely anxious for the retention Of the
material Of which the money standard iS
composed when such material iS rising
in value, and prices are falling, and eT-
ceedlngly apprehensive Of the evil and
inconvenience which they predict as sure
TO result from changing 1t. Whenever y
fall in prices occurs through either q
natural OK artificial contraction in the
volume Of money, they maintain that 1t
Ii due to antecedent imitation and ex-
travagance, or to overproduCtlon through
persistent and reckless industry. II the
contraction be natural, that it cannot be
helped, and IL artificial, that though It
may lnAlct great temporary losses on the
masses of the people, It will be sure TO
result in their ultimate benefit, and they
console the sufferers with the comforting
assurance that such contraction Is neces-
sary In order to reach the lowest depths
Of that "h0rd-pGn" whose foundations
they have previously determined by de-
monetlzIng one of the metals, and upon
which alone they claim that money, capi-
tal, and labor can securely and harmoni-