The times. [volume] (Richmond, Va.) 1890-1903, 1893-09-08
SOME QUESTIONS AND ANSWERS.

Mr. John n. Ople, Of Stanton, has
written US the following series Of thirteen
| questions, which we Will answer In the
order propounded:
"1st. Is It fact that I can buy n
million dollars IN gold with a million
silver dollars?
Answer. 1t is. But it would be mis-
leading to make that statement without
| adding the explanation Of It. The gold
in a gold dollar is worth about forty-flve
cents more than the silver in silver
dollar. Nevertheless the government, ia
collecting its immense revenues, receives
silver dollars I'm payment Of taxes laid
in gold dollars This gives the silver
dollar currency on a par with the gold
dollar. While the governments revenues
are large enough 10 absorb all the silver
dollars in existence the deprecated one
will stay at par with the more valuable
one. But as soon as the silver dollars
become so numerous that the government
is unable 70 receive all OF them in collect
ing its revenues. they must and will fall
in current value to their bullion value.
Mr.. Opie saw just what will take place
in what actually took place with Vir-
einia's tax receivable coupons.
I'D. Is it a fact that 1 can buy as
much property or labor with silver as
with goldT'
Answer. We suppose Mr.. Opie meafs
silver and gold dollars, and so under
standing him we answer that it is, but
as explained In the preceding answer.
But by weight gold is now worth more
than twenty-eight times as much as sill
yer.
"3rd. How does the purchase Of sill
yer bullion by the government affect
iniuriously the business interests Of the
country If the gold which the government
pays for the bullion is thus put in circJ-
lauon3"
Answer To say nothing OF the gen
eral Generalization and injury to
business caused by the attack on
credit which an unlimited issue Of
deprecated. legal tender dollars
causes. the specific injury done by the
Sherman act (Which IS what Mr. Opie
refers to) is this. The act requires a.
500 900 ounces of silver TO be bought each
month. TO be paid for by the governments
notes redeematle on demand with gold
coin las the authorities coustrue 10 our
threat TO pay all obligations with depre-
ciated silver dollars alarmed the Euro
pean holders OF American securities and
they have been sending them here in
great quantities and selling them for gold
TO take away. Gold had 10 be found TO meet
this European demand for IT, Conse-
quertly. az fast as the government is
sued these notes in payment for the sill
yer purchased, they were presented at tie
treasury and gold was demanded for them.
and this gold was shipped abroad. They
were rapidly drawing all the gold out of
the treasury when the governments OBJ
legations that rest on gold would have had
no support whatever, and they would
eventually have sunk TO the bullion level
Of our DEPRECATED silver dollars. We will
state the next four questions together.
as one answer covers all four in effect.
18th. II we restrict the circulation OF
silver as a medium Of exchange, should
we not have some other medium Of eX-
change to supply its place.
18th. Is it not a fact that the scarcer
money becomes, the greater its pur-
chasing power?"
eth. Is 1t not a fact that the scarcer
the money the greater the rate OF in
terest it commands"
18th. Is II not a fact that the scarcer
the money the lower the price OF labor
and of the products Of labor
Answer. All four Of these questions
ignore the influence Of the quick communi-
cations Of modern society with the con-
sequent extension Of banking facilities
If we shall ever arrive at a complete ideal
and perfect adjustment Of banking ar
rangements we should have no use for
standard money at all, except as a refer
ence just as we use the dictionary in
language. Just IN proportion as a society
is rude and unsupplied with the conven-
fences of modern exchange. it needs stand
ard money with which TO effect its ex-
changes. But just as 1t improves in civili-
cation and acquires the modern appli-
ances of banking with their infinite meth
DDS of exchange. its need for standard
money diminishes. The reports OF the
national banks to the Comptroller OF the
Currency show that only about per cent.
Of the transactions that take place
through them are effected by transfer
OF cash. The other 70 per cent are effected
by the transfer of credits. Mr.. Opie will
see. therefore. that II is not an increase OF
metallic money which we need. but an in
crease of our facilities for banking. Re-
peal the United States tax OF 10 per cent
On the issues Of State banks so that every
neighborhood, the business OF which is
sufficient 10 support bank. may have
one and you Will have all the money that
is needed for all purposes
18th. Is our present financial and
business depression rhe result OF too
much or too little money in circulation
Answer. Neither. There was ample
money In circulation for business a year