New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-07

this silver volume to par with gold, 81 400, 0OO,-
ooo must be added to its present market or COM
mercdl value. One-third in value must be also
AIDED to the volume Of silver which the United
States shall coin in the future. Can the free
coinage Of silver by the United States alone and
tie absorption of future coinage by its business
alone add 81 ,40C 100000 10 the value OF the
worlds present volume Of silver, besides adding
onethlrd TO the value Of future coinage. and thus
lift this mighty mass TO par with gold and close
the gap between them? The G5.0O0.000 Of our
people, with all their courage, industry and enter.
prise, are not equal TO this task. They cannot
furnish demand for silver money three times as
great. or even equal, 10 that furnished by them
selves and the 900 900, 900 commercial people Of
the Id World before demonetizlton by it. And
yet, 10 restore the value OF the silver dollar 10
par with gold, the United States, unaided and
alone, must not only do this mighty work, add
this mighty sum to the value of the worlds
money, but must keep and maintain perpetual
equality between the values OF gold and silver
Mt the present ratio of one to sixteen in the
future
1t cannot be DONE and they who cherish tho
idea that it can are Missionaries and dreamers.
Parity between the values of the gold and silver
dollar at their present ratio can therefore not
be restored or maintained by unrestricted free
coinage
WHAT MAKES THE VOLUME OF MONEY.
Senator Stewart afirms that the volume OF
money in the country at any time Is equal TO
the number of standard or unit dollars composing
it. and that free coinage will increase TINS volume
hv the number of silver dollars which III VIII
add thereto The volume of money in the country
at any time is the aggregate purchasing power
of the standard money in circulation at the time,
and is always equal to the sum OF the prodnc's
of the standard or unit dollars composing it, multi
piled each by its own value mus So'ooo
standard money, each dollar Of the value of 100
cents is an aggregate volume of $4,000; ana
hence is greater than 81 1000 Of standard coin.
each dollar Of the value of fifty cents, which Is
an aggregate volume Of 5000 only
When the volume of money i'll the country Is
composed chiefly of gold or its equivalent, each
dollar Of which is Of the value of 90 cents. the
addition thereto by free coinage or otherwise OF
standard silver dollars OF less value may increase
the volume temporarily. But the worlds eN-
pcriencn demonstrates that cheaper or deprecated
bt-paying dollars will always eXpel from cir
culation the money of par value, unless the
chelper dollar be- in volume too small and IN
significant to become a disturbing factor In the
aggregate volume Of circulation. Thus at present
the silver dollars are worth only SO % cents
But the amount in circulation Is less thln S6o,-
OOO, 900. only about IN" one-twenty fifth OF the
aggregate Of 81 500 100000 Of circulating money
in the country This bagatclle Of less than
$50. 600 900. aboct 90 cents 70 each citizen, Is
scarcely sufficient for daily change or pocket
money and the great business. industrial ana
commercial interests Of the country prefer TO
tolerate and float il at a par with gold rather
than produce panic. with its incalcnlabl" brood or
consequences. ny reducing il to its real value III
business transactions. let the volume of this
cheap money become sufficient TO I'LL the channels
Of domestic trade and transact all domestic bust
ness. and as each dollar of il will pay IA much
Indebtedness as a 90 cent dollar, debtors, "a IL
natural will prefer TO make p,ym' nj in the cheaper
dollar gold will necessarily be expelled from
circulation as il ever has been under like crcum-
stances and the volume of circulating money ID"
corrcspondingy contracted. because reduced 10 The
laSs Of the cheaper silver alone. Shortening the
mile onchalf will not increase the distance be-
tween Ncw-YorS and Liverpool: H. will only re-
aure greater number of short miles TO he ira
ycr-.d in making the crossing. Shortening the
value Of the standard dollar one-half will not
corr.spondingy increase the aggregate volume Of
".
greater number OF such short dollars to transact
the business OF the country.
CONSEQUENCES OF DEPRECATED MONEY.
Since 1879 all values have become adjusted TO
the 100 cent standard and oil debts and money
obligations have been contracted in the expectation
of pavment in 100 cent dollars. When by free
coinage gold and its equivalents shall have been
expelled. tho purchasing power Of III" silver dol
lar left 10 float on it, own merit. will sink 10
the level Of lis real value. But its debt paying
powers will not diminish Whether deprecated
49, 3d. 60. or any other per cent, il will continue
10 nov 100 cents Of old debts before. But
its power 30 buy bread purchase homes, or
provide against want. or sustain intrmity. or sup
port old age will have shrunkcn to the extent
Of the depreciation. More fully than can he ev-
pressed will the consequences suggest Themselves
Of 30 per cent scaling or shrnkagc on all existing
debts and money obligations, on the washerwo-
mans savings deposit, the orphans income, me
widows annuity. the workingmans back wnges,
the insurance policy. the soldiers pension and
fine billions Of other debts and obligations Of
whatever kind contracted before depreciation.
Only one class Of citizens can he benciitrd-the
comporativelv small number Of debtors who owe
moro than is owing to them. All others will
either not I've benefited. or will be infinitely pref
ndiced Even this class of debtors will be b"ne-
fted only in respect to their old debts. which they
will b. the more easily enabled to pay with legal
tender dollars Of half value. But the prices OF
all commodities will immediately advance in pro-
portion to the depreciation of the d"bt-paying
dollar Twice as many such dollars will there
after he required to purchase the amount OF COM
moditcs for cash OF on credit to he subsequently
paid for
A measure or policy which Will relieve inc
financial embarrassment of thousands only by Deg
CARING other thousands and bankrnpflng millions
cannot he justified Besides the relief can he
but temporary. Extravaganza reckless specula-
ton. and the creation Of new debts in numbers
and magnitude doubling the old, which invariably
ofn lnlf Y.