The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1893-08-19
MonometaIIist and BimetaIIist.

Two members of the New York cham
Der of commerce-one ''goldbug," the
other bimetallist-give in The Outlook
each the financial situation from his
standpoint in a thoroughly clear, dispas-
sionate manner that commends itself in
this time of noisy ignorance and violent,
selfish utterances.
Mr.. Louis Windmueller, the mono
metallist, says the present panic is due
to the boarding of gold and paper money
by the banks first, then by private indi-
viduals. They thus hoard money be-
cause they fear that under the continued
operation of the silver act of 1890 our
currency will depreciate till it is no
longer convertible into gold or the equiv
alent of gold. They therefore hide away
all gold and money convertible into gold
at par which they can lay hands on. Mr..
Windmueller knows one western banker
who usually keeps on hand cash bal
ance of $4,000. He has increased it
till it amounts now to $3.50, 000 and that
sum is lying idle awaiting some possible
run or emergency. That is an illustra-
ton of where the money has gone in the
present scarcity, so that manufacturers
cannot get at any price enough of it to
continue their business. A man will
not lend another 81 900 in gold, or gold
paper, if there is danger of his getting it
back in currency worth only $500.
''Since the failure of the Ohio Life and
Trust company on Aug. 90, 1857, it has
not been so difficult for the average Dor
rover to get money" says the writer.
Those who demand more money are the
inhationists and silver miners.
The sole cause of the present panic is
fear-fear of the further depreciation Of
silver and the disappearance of gold.
Mr.. Windmueller thinks the only remedy
is the repeal of the Sherman law and
no more coinage or purchase of silver.
1--WE shall need no more currency till
we have re-established confidence in
what we have already issued"
In 1860 the production of the two
metals was 81 ounces of silver to / of
gold. In 1892 it was "a ounces Of silver
to of gold.
Mr.. A. Foster Higgins, the bimetallist.
tells us that capitalists want only one
standard, and that gold one, because
the supply of gold is becoming smaller
every year, and therefore the metal
grows dearer and dearer. The gold basis
dollars they have will go farther and pur-
chase more the scarcer the yellow metal
becomes. They are not averse to in
creasing their fortunes in that way nat
urally.
But this is an injustice to the debtor
class, says Mr.. Higgins. The great class
of borrowers are really the most enter
prising and most active citizens. the ones
upon whom the progress and develop
ment of the world depend" This great
class demands that the basis of money
shall be as near as possible an invaria-
BILE standard, and only by the use of both
gold and silver as money can there be
even an approach to an invariable stand
ard. The debtor class plead that "ev-
cry measure tending to establish a single
gold standard is attended with contrac-
ton of the worlds money supply, with
a fall in prices and loss to every mer-
chant who buys depending ON a fixed
basis of value"
Mr.. Higgins declares that the United
States needs three times as much money
per capita to transact business as the ma
tions of Europe do because of our great