The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-05-07

PkOBLhM FOR 1HE PRObLkAA11C
Our OLD Bsnter Coatinues Hss Arrumeas
| About the lntsinsic vaiue OF Gold. hat he.
comes so Ferplex~d and rIabbe rea NJ ed
that . Cole Sweat Runs Dow. MS hack.
NEW HAVEN. May 2.-My last letter was cut
short because got very tired Just after stat
Ing why the gold men on the last Congression-
al Coinage Committee were correct In saying
that gold had an unchanged and unchangc-
able value" told the silver man with whom
I was arguing that oil the great financial au-
thorities held that gold never varied in value.
because its value was an intrinsic. or an in
side. value. and therefore was unaffected by
either legislation or circumstances OF any kind.
| Now" said he. you have rested your case
on tho propositions made. But are there not
some other things necessary to he said to
| complete n full statement Of your ideas rela-
| tive to honest money! Please open your
package. and IL you have any additional ideas
| bring them right out. Remember thnt n mans
best friend is the person who exposes his err
ror or teaches him a new TRUTH Let us be per-
fectly candid with one another: have no end
| but tho discovery OF the truth: follow all our
ideas to their natural conclusion. no matter
what 1t be- nnd not evade. In the slightest de-
gree. any fact or point whatsoever which has q
direct bearing on the money question"
These remarks surprised me because I had
expected my opponent would do the sauirm-
Ing. But l concealed my feelings and replied
that In order to be perfectly frank I should say
that Mother my fellow bankers nor myself
have publicly expressed our ultimate aim in
regard to the national currency. Our views
and purpose arc these. to witt Gold Is the only
thing possessing fixed intrinsic value.
Therefore gold is tho only honest measure OF
value and nothing but gold should be legal
tender. We should burn up tho greenbacks
just as fnst as they come into possession OF the
Government. We should repeal all silver leg
islation. Tho silver bullion now in tho Treas
ury vaults should be Immediately sold Mt auc-
ton. All the silver dollars now in tho Treas
ury. and all other silver dollars ns soon rs they
come into tho Treasury, should DO melted
down and sold atauction. or course. we want
to use national bank notes. but they would be
under our control. and We could contract them
whenever we thought 1t judicious to do 3d.
As matter Of discretion we havo not thought
1t wise to state these things for fear OF alarm
Ing the ignorant voters. But this is what we
want as soon rs We can get It. and think we
ought to boldly proclaim the truth and our
faith In honest money.
The silver man smiled and said: II supposed
you really wanted what you have Just stated.
Now. tell mo whether the inevitable result Of
accomplishing your purpos, would not be to
ruin the majority OF debtors and to put most
OF the national wealth into still fewer hands
than It now isp"
or course / admitted that tremendous
convulslon would occur while we were going
through tho process Of getting into sound
financial condition. At present everything Is
inflated. because our measures OF value are
not honest Destroy this dishonest money.
and thon wages and prices would go down
m fhnu 1l,y hoIN u,
line thing for the poor pensioners and poor
savings bank depositors. because tho best
wheat flour would not be over two dollars a
barrel and oil other necessaries equally cheap.
But l pointed out that no real value would be
destroyed. because what the debtors lost the
creditors would gain. Moreover. I showed
that II an elderly debtor should thus lose his
property. little harm would result because In
the course OF nature his life would soon end
any way. and then he would not need property
And II young debtor lost his property. it
made little difference to him. because he
would then be down on hard pan " and could
start and build up on a good foundation.
The silver man then said This is just
what knew you all thought and did not dare
say. Now that you have let one cat out Of the
bag. let me ask you this: What effect on the
value OF gold would be produced II without
an unexpected increase In tho supply Of gold)
the movement Of the past twenty years against
silver should continue until silver were no
longer used as money. anywhere on earthp"
This proposition had never thought OF. and
80 I sat still and said nothing. I was worried.
Finally my opponent said: "Of course. you
admit that such procedure would enormously
increase tho demand for cold Let US be hon
est and candidly follow out our promises and
SEQ whore we land"
After thinking the matter over WHILE con-
cluded to take the bull by tho horns. and SO I
said: "As gold has fixed intrinsic value. an
increased demand for gold could not and
would not alter that inside value in the least"
When had said this 1 noticed that my antag-
onist wore very cunning SMILE Thinks to
myself. what I have stated Is logical and
must be true. but somehow or other my In
stlncts toll me that have fallen into a hole.
Whereupon the cold sweat ran down my back.
Then the silver man blandly smiled and
said: If every gold dollar has fixed intrin-
sic value. docs it make any difference In the
amount OF this value whether the number Of
those dollars DO large or small p
Ireplied that, as each dollar had fixed in
trinsic value. the number o! those mea sures Of
value was an entirely immaterial circumstance.
Ofcourse. each dollar. In any case must always
have tho same value: Just as each bushel Is
tho same size. no matter how large nor how
small the pile OF grain it measures. No mat
ter how large tho number OF yardsticks. each
one is Just three feet long. just SO with an
honest measure Of value. to wit, a gold dollar
Whereupon my opponent said THAT is q
consistent answer. and must be true II your
promises be true. Now. please tell me what
effect on tho value Of gold would result from
tho discovery OF mine from which ten thou
sand millions OF gold could readily be taken in
one year"
This question made me sweat moro than
ever. saw that my premises made the logi-
cal answer to 1t: 1t would make no difference |
whatever. But somehow felt that such an |
event would enormously diminish tho value OF |
gold. 30. after thinking and sweating while.
I said could not answer that question be-
cause no such mine had been found.
"Ahl" says the silver man. now you arc,
evading and arc not seeking the truth by
candid statement. You thereby indirectly
admit that your promises arc wrong because