The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-08-09
The SPIDER AND THE FLY.

VIM the Populists Deliberately Walk Into
the Metallic Basis Parlorf
William P. St John, president Of tho
Mercantile national bank, Of New
York, one Of the leading bankers of the
country, has addressed an open letter
to congress on the subject of finance
legislation. He is one of the ablest
and most enthusiastic bimetallists in
the country and one Of the recognized
leaders in the silver movement. In his
letter he outlines a bill which he thinks
would be about the proper thing, and
he outlines such a bill in this form:
First-Our mints to receive without limit all
deposits Of gold bullion and silver bullion, not
too base for minting. and issue therefor un-
limited legal tender notes of the United States
at coin value, these notes to be redeemable in
gold or silver coin, at the option and conven
fence Of the United States; and on request of
the note-holder, but at the like option and con-
venience, to be redeemed in gold bullion or sfl-
yer bullion at not less than coin value. All out
standing gold certificates silver certificates
and treasury notes Of 1890 to be Cancelled
whenever received and the proposed notes
substituted therefor at face value. This act
repeating the so-called Sherman law entire
Second-n a new valuation for gold and sill
yer is provided in the BILL provide also that the
existing legal tender silver and gold coins shall
be available for redemption OF the proposed
new notes until the new coinage is ample there
for, say for one or two years after the date of
the enactment: and thereafter let the present
silver dollars be held for later determination
by congress as to the permanence Of the new
valution that determination to abide events.
This plan is the fruit of mature
thought of one of the best posted finan-
ciers and most ardent bimetallists in
the United States. It is good plan
from metallic standpoint. But what
is there in it, for the populists? The
plan provides for gold and silver coin
and just SO much paper money as there
demption. No more, no less. If we
got the American product of silver only
it would take seventy-five Or hundred
years to get fifty dollars per capita in
circulation, while if we got all the sill
yer we could possibly hope to get it
would take at least thirty years.
There has recently been held mon
ster silver convention in Topeka, Kan,
at which there were many able
speeches delivered and set of resolu-
lions adopted. The first clause of the
resolutions reads thus:
We are opposed to q universal gold standard,
because the gold coin Of the world would not
afford q SUFFICIENT basis for q currency adequate
to the needs Of commerce. and its adoption
would cause an immediate increase in the ex.
changeable value Of dollar because Of tho in
creased demand for gold and an unjust increase
in the burden Of all debt during the oontinu
ance Of q gold standard, because the supply
Of gold available for coinage is not increasing
in proportion to the population and need for
more money would cause the indefinite appre-
citation Of the unit value and the indefl-
mite extension Of business depression We be-
lieve that an International agreement for the
coinage Of both gold and silver at = fixed ratio
70 not necessary, and SO long as England's CO.
operation Is awaited, not probable, because she
Is q creditor nation and win be slow to surren-
der the advantages accruing to her ruling class
by the appreciation.
Here we have again the basis
fallacy as the underlying idea. Free
coinage of silver is demanded to en-
large the "basis." 1t does not surprise
one to find among the list of delegates
to the Chicago silver convention, So
called populists who have, in the past,
prated about gold and silver being mat
ural' money and Goods" money
men who deny that money is a crea-
ton of law and affirm that government
cannot impart the money value to any
article not possessing intrinsic value.
But it is with feelings of modification
and surprise that one sees numbered
among the delegates men who do not
believe in a metallic base for money
and who believe the truth that all
money is made by law and is the
creature of the peoples fat Will the
populist fly deliberately walk into the
metallic spiders parlor?