The herald., 1894-03-29
The Monez ouestIon.

Eho money question:
EDrToRs HERALD lit really makes no
very great difference, Sd far as the final
triumph OF bimetallism is concerned,
whether President Cleveland vetoes the
seigniorage bill or not, 30 long as 1t is
the policy OF the government to defy
the fundamental principles Of the dou-
BILE standard by keeping our lower spe-
ole, silver. at an artificial parity with
our desrer specie, gold, which latter,
uur'sg the last 20 years, has more than
dou>.ted in relative value-i. e., relative
to silver, as we'll as commodities in gem
eral, ALI political economists Of recog-
nised standing will agree that the true
test OF al standard money is that it
sh III only have the value OF the material
that is in it.; in other words, that the
simple commercial value OF the material
81 which standard money is made shall
always, without exception, determine
ite money value. We see this test am
ply verified in gold money in all gold
standard countries aud in silver money
in all silver standard countries. Such
money, whether coined or in the form
of bullion, has uniform value
throughout the world. We see
this illustrated in standard Mexican
silver dollars which have substantially
the same value in China or all over the
world, that they have in Mexico, be-
cause their value as coin conforms to
their value as bullion or as merchandise.
They will stand, what Cernuechi aptly
calls the fire test; melting them down
in the fire pot does not materially affect
or alter their value. 1t is ia this funda-
mental respect that they differ from our
United States, so-cal'ed standard sil-
yer dollars" which. because OF our pres
ent vicious practice, are not standard
silver dollars at all in any true sense OF
that term for they are made to have
an artificial or purely arbitrary money
value, at present more than twice as
great as their merchandise or bullion
value, which ia contrary to all sound
financial principles. Moreover these
silver dollars of ours will not stand the
test OF fire; melted down into bullion
they are now only worth by our abnor-
mally appreciated gold standard, only
about AZ cents and therefore. so long
as this unnatural state OF affairs exists.
they can have no circulation outside OF
our own country. This whole business
is all wrong; our whole practice in this
respect is vicious in the extreme,
sis that plausible but insidiously dan
gerous saying OF ex-President Harrison
which so many have unthinkingly
adopted, that 1--WE want all our dollars
to be equal to the best or dearest dol
lars" which, in blunt English, means,
though those who use the phrase don't
seem to know it, I'VE want to adhere to
the single gold standard! Our standard
silver dollars are supposed to have, ac-
cording to sound financial theories, and
were intended by our iorefathera 100
years ago. to have simply and only the
value of 37l4 grains Of pure silver as q
commodity or as merchandise, just ex-
actly and not otherwise, az 90. 90 grains
of purs gold in the gold dollar have the
game value in coined form that they
have as merchandise or as bullion. no
Roldite can deny that it was the inten-
tion OF the founders OF this republic.
when they established our constitutional
dollar on q basis of either silver or gold
Ito save it thereby from great tluctua-
tions) that the universal commercial
value OF silver as merchandise, should
regulate or determine the value of the
coins made from that metal; and that
the commercial value of gold aa mer-
chandise or as a commodity should
regulate or steady the value of the
coins made from it. This. in each
Ease, is in strict accordance
with the true theory of money.
Now, il doubled demand for gold in
the last 90 years has doubled the value
OF gold as q commodity and therefore as
money, is that any reason for discarding
the sound rule that the commercial
value of silver ought to regulate the
value of all our silver coins? Or for
carrying out in practice the ghsatly
mockery that by merely being coined
they should thereby be doubled in value,
because gold has doubled in value
However much we may seek to evade
the fact. the only true way to bring our
standard silver dollar back to Its normal
value, to value that can stand the test
of fire, and enable il to circulate without
loss, outside OF our own territory, is to
connect it in automatic touch with the
grand mass of silver in the world by free
coinage.
Therefore, in this view OF the matter,
I repeat it makes very little difference
whether President Cleveland signs the
seigniorage bill or not.
To merely coin sos. 900, 900, or even
+ the whole $3.50, ,000, 900 purchased under
the Sherman law, and still keep all our
silver dollars up to an artificial equality
with our gold dollars, or up to level OF
more than double their intrinsic value,
is not going to alleviate our present sit
uation TO any great extent. II. D. B.
Help the Unemployed.
Hrrf. .