New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-13
TgE DAY OF MONETARY FOLLIES

rnfhesc DAYS absurdttes and folies are more
important than the most solid facts or the Wlsest
theories. The absurditcs govern IL has
pleased the people to vote that facts and Iea-
sons shall take four years vacation. Hence
man must study the psychology OF human
foolishness. so to speak. in order to get an IDEA
of what may happen within the next Tour years
The silver fanatic insists that there mas Deeh
no prosperity and can be none until the white
metal has been restored by free coinage. IL
is astonishing how loudly this notion is shouted
into the ears of President Cleveland Just now
by many of those who voted for him. 1t is
nothing but treachery to his party and country
in their opinion, for him to redeem Treasury
notes in gold When Democratic Congress
comes, they say he and his Secretary OF the
Treasury will learn a lesson. That is quite
probable. But the essence of the foollshness
on that side is that the circulating money must
be made less valuable in justice to 1.-The people,
who are understood to owe all they nave 70
pay. not only in the form of interest, but TO
railroads and teegraphs and other corporations
ard to landlords. Cheaper money, it is imagined
would cut down the tax paid for all the results
of past savings and accumulations.
fanatic who thinks it would be good thing
for him, and therefore for everybody else, to
have gold only made the medium of exchange
and the measure Of value throughout the civil
lied world This, he fancies, would enhance
the value of all past savings and accumulatlons,
and relatively increase the tax which the pro-
ducers of to-day have TO pay for the use or
Yesterdays profits. lie does not reflect that
there can be no prosperity for creditors unless
there is first prosperity for the debtors; that
savings can get no interest unless productive
labor first gets fair returns.
The Sherman silver law was enacted as a
defensive measure against silver monometallism
Denunciation of it has become the fashion with
Democrats but it is infinitely better and safer
than any silver bill that party has ever framed
or supported Compared with free silver coin
age. it is as light to darkness. 1t may be foitu-
nate fer the country that the silver men them
selves resist its repeal in order to get something
else The danger now most feared is that
President Cleveland, in his anxiety to have
some measure adopted which shall at least
appear to settle the money question, will con-
sent TO something else which is more danger
Gus than the present law.
Free coinage on some new basis is the latest
phase of foolishness Men imagine that they
have compromised the whole controversy and
solved the problem when they have suggested
coinage at the ratio of 20 to l. Silver would
appreciate to some extent, they think, with the
new demand which free coinage would involve,
and at least enough to make { ratio OF 20 to
l about right. Once brought to par in gold on
the new basis, men fancy that silver would stay
there But there is nothing but unfounded as
sumption in these notions, and especially in the
notion that silver would rise in gold value and
| would not fall as result of free coinage. 1t
is more reasonable, at all events, to suppose
that the certainty of an unlimited supply OF
cheap dollars would at once establish premium
on gold, which would then vary from day to
day. How much silver would decline under
! such circumstances no one can guess. There
are thousands of millions of silver. coined at
the old ratios of 8 IL or 16, and the value
Of all this vast quantity would be at once af-
fected by change of ratio in this, the largest
slver-producing country. The consequence OF
such disturbance of values and monetary sys-
tens no man can safely predict. though some
persons, as usual, are ready to stake the future
prosperity of the country on their guesses.