People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1893-06-02
THE PREMIUM ON GOLD.
1t Is Simply an Increase In the Purchasing
Power of the Gold Dollar.


price than that made from silver, or pa
per, we say that there is "a premium
on gold"
If one hundred dollars in gold are
worth as much as one hundred and four
dollars in silver, we say that gold is at
premium of four per cent. If one
hundred dollars in gold buys as much
commodity as one hundred and ten dol
lars of paper money, we say that gold
is at premium of ten per cent.
What causes this premium on gold?"
Sometimes it comes from natural rea-
sons; at others from those which are
artificial.
A very great over-production Of sill
yer, in comparison with the produc-
ton of gold, would cause the silver to
become cheaper internationally; Just as
very great over-production of gold
has heretofore been known to make the
yellow metal so cheap that nations
ceased to coin it as money at all.
Again, both gold and silver would rise
above paper currency, from merely nat
ural causes, when the government issu-
ing the paper promises was in such a
condition that the business world could
put no faith in the national obligations
Thus confederate money went down as
the government itself went down.
Gold and silver having intrinsic value
where the paper had none, the two
metals rose above the worthless paper
which was issued by a failing govern
ment.
These are instances of gold going to
premium from natural causes.
The same result follows when by the
laws of country whose credit is I'M
questioned there are certain obliga-
tions which can only be paid in gold.
Each of the causes has tendency to
produce the premium on gold.
They do so, indirectly, by making
that kind of currency perform certain
exclusive functions.
They do so, indirectly, by creating a
special market for gold, as distinguished
from other kinds of money. This
market, like all others, can be "cor-
nered."
And corner" on the gold market
does just what monopoly does every
where it raises the price.
In this country there has been for
long while an effort to have the custom
house duties payable only in gold; to
have the interest on the bonds payable
only in gold, and to have certain con-
tracts for the loan of money payable
only in gold
Now, it can readily be seed that if
the government encourages this policy
and sets the example of preferring gold,
it becomes an active member of the
gold premium" cons piracy.
The present democratic administra-
ton is doing that very thing 1t is car
rying out the republican programme of
paying to the holders of silver purchase
notes nothing but gold, when the law
says they shall be paid in either coin.
Lay aside the law and common sense
would say that silver note ought to
be met with the silver and not with
gold; with the commodity which was
deposited when that note was given,
and not with some other commodity.
In fact, the law directs the coinage of
the silver purchased for that very pur-
pose.
Hence, when Mr.. Cleveland and Mr..
Carlisle persist in policy which fur
Their increases the special demand for
gold (which demand is purely artif-
ciaD, they play into the hands of Wall
street, and hasten the upward march
of gold.
How does the gold premium" hurt?
To answer this question fully, one
would have to discuss the whole prob
lem of finance. 1t is sufficient, in this
instance, to say that the premium on
gold means that one form of currency
has risen above all the others; that il
controls all the others; that it rules
the markets; tina it dictates prices and
Squeezes values.
To allow one kind of currency to as.
sess the value of the others, and to fix
all the prices in the business world, is
contraction upon stupenduous scale.
The president who would propose to
destroy all our paper money and to
melt all our silver, would kindle the
flames of instruction in this country
before the sun went down.
Yet the president who says that gold
must have the mastery over silver and
paper money, does an act whose conse-
quences are precisely the same. He re.
duces the amount of our real money by
virtually saying that gold alone is the
real money.
Allteachers of political economy agree
that prices adjust themselves to the vol
ume money in circulation. Cut down
the currency, and you cut down prices
Cut down prices, and you make debts
harder to pay. They absorb more
labor, more produce, more land, more
houses, than they did before. Hence
bankruptcy and ruin.
''The dollar buys more than it ever
did" says the capitalist. So it does
Buys more labor, more cotton, more
corn, more land
The dollar is harder to get with
labor and labor's produce. But it pay.
no more of the debt than it used to pay
The claim has been made that as lie
gal tenders are cheapened by the golt
premium, the debtor can more readily
I obtain them and pay off his debts with
. them.
This is unsound. Silver and green
backs get no cheaper in comparison
with cotton or v-baof Il e 4bo o,oly