Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-07-06
Gen. Warner Speaks Of the Condi-
ton of the White Metal.
VALUE OF MONEY METAL EXPLAINED.
The Law of 1890 and How It is
Executed.
THE COMING CONVENTION.

ereigns at the treasury of India without limit
in exchange for rupees, but not Bank Of Eng
land notes, nor will they pay out gold for
rupees. The council has also carefully abb
stained from making gold legal tender
If they should do so Europe would rapidly
be drained of its gold to settle balances due to
India The policy, therefore. is simply to sell
council bills. which are draughts on the Indian
treasury for rupees. for gold and then to buy
silver on government account at the ratio
fixed in council, and from this silver coin
rupees with which to meet any excess Of
draughts over the tax collections Of the Indian
treasury"
"Will not silver be purchased after the man =
ner of our Bland act in quantities sufficient to
restore the ratio recently destroyed" asked the
reporter.
"We may look for purchases Of silver on ac-
count Of the Indian government at any time.
In fact, that government has adopted . sort Of
Bland law excepting that it has fixed the ratio
at 21h for converting rupees into silver"
"Well. then. will not a shut down OF the
mines re-estsblish q normal rstio2" said The
STAR man.
III the mines Of the west remain closed for
any length of time silver will rise as the result
Of purchases by our governmentand on account
Of India"
THE VALUE OF MONEY METAL
"Partisans Of gold claim that the value Of
money metal results from its commodity de-
mand and is not regulated by the coinage de-
mand, that it is the commodity value Of metal
which makes 1t desirable as money metal?" con-
tinued the reporter.
Supply has everything to do with value. 1t
Is supposed that there is something like four
thousand millions Of gold in the world. This
would be forty years supply for the arts. What
value would forty years supply OF anything
never ending demand for gold for money? Its
value would largely disappear. 1t Is the
demand Of everybody for money that gives it
its value. Therefore. nine-tenths Of the value
of money metal comes from its money demand.
This is perfectly understood by gold mono
metallists, and hence when the gold discoveries
Of California and Australia added three thou
sand millions Of gold in twenty years, moro
than doubling the entire stock, the same class
that now wants to demonetize silver wanted to
demonetize gold"
In answer to a question from the reporter the
general said: "There are two ways to increase or
TO decrease the value Of metallic money. One
way, and that Is the old way and the honest way,
If there be honest way, is to increase
or decrease the weight Of coins. The other
way is to suddenly increase or decrease the
quantity Of metal out Of which the coins can
other The modern way has been the covert
method Of diminishing the quantity Of metal
for coinage"
THE KEYSTONE PRINCIPLE OF BIMErALLIsM.
"What is the keystone principle Of bimetal-
lism?" asked the reporter.
1.-The principle of the automatic regulation Of
money. For thirty-fve centuries the volume
of money has been regulated by the output Of
the gold and silver mines, the theory being
xhatf ,NH he hann
abundant as to materially affect the stock Of
money SO that prices would rise and money
become relatively deprecated until q
dollar could be procured by producing COM
| modities easier than by producing gold and
silver less would be mined. In this way the
adjustment Of the metals to population and
wealth would go on perpetually."
Then would not gold monometallism, with
| out the discovery Of new mines, soon mean fiat
| money! persisted the reporter.
| 1.-The abandonment of the principle Of auto
| matte regulation does mean an economic revo-
witnessed. With gold alone automatic adjust
ment Of gold to population and commodities is
impossible. for the reason that a suficiency Of
| gold does not exist. Gold mOnometallists had
better take warning, for if the automatic prin-
| ciple be overthrown, the next thing in order
will be fat money with legislative regulation" "
Twill the silver convention which is to meet
| at Chicago on August advise the introduction
| in Congress of bill for the demonetization of
gold? IL there a serious consideration Of this,
or is bill Of this KIND to be introduced only az
q filibustering measure?" asked the reporter.
TO DEMoNETIzE GOLD.
81 know nothing of a purpose to introduce
such bill. If the gold monometallists insist
on a subversion Of bimetal by demonetizing
the only metal which can be produced in suf-
| fcient quantities to maintain stable relations
between money. supply, population and busi-
ness, and II they persist in their evident inten-
| ton to destroy the automatic regulation of
money through the mines, they need not be
surprised at spontaneous movement to
demonetiZe the other metal and transfer the
control of money from the mines to legislation.
Gold is not produced in large enough quanti-
ties to make it responsive to increase in popula-
ton and wealth. 1t docs not exist, and, there
fore, relatively to population and wealth it
must grow scarcer and dearer. Moreover,
the time is near at hand, il not already
upon us, when the entire output Of
| gold will be consumed for industrial uses. At
| the present ratio of the consumption Of gold
for the arts alone we will very soon use up in
| this way tho entire product Of the United
| States. II silver is demonetized the question
| is. what is the world to do for money!"
sis the present contraction of bank credits
and the scarcity of money and weakening of
confidence in one species Of our exchange
medium the result Of the Sherman act Of 1902
THE ACT OF 1890
The act of 1890 does not tend to expel gold,
but by increasing the money volume helps to
maintain prices here above the international
level of prices in gold, and thus to cause
movement in gold to restore price levels.
ACTION OF THE CONVENTION.
"What action do you think the convention
will take?''
'No plan Of campaign has been as yet agreed
on, but that body will inspire the silver people
throughout the land, weld them into oneness,
| and will insist on the most stubborn resistance
| to the repeal Of the Sherman law"
"Will the silver people fiIbuster, kill time
| and act as obstructionists generality"
They will contest every inch Of ground.
| They will not down"
"You seem to have big mail, what does it
all niean?"
Encouragement" said the general. 1--WE are
in receipt of thousands of letters urging the
most desperate resista nee to the designs Of the
administration and the money power. Hun
dreds Of these letters complain that the press
of the nation is on the wrong side and does not
represent the sentiments Of the mer-
camille and business world. Tons Of our
mail matter come from lawyers believe 1t
| Is the general impression among members Of
that honored profession that the act Of 1873
was not only fraud in the manner Of il per-
| petration, but Is utterly unconstitutional, and
saeuld bs wiped from the statute"