People's voice., 1894-09-14
WHAT is THE BEST MONETARY
SYSTEM FOR THE UNITED
STATES?
By 4. c. FISK.
Y.

STATES?
By A. c. FISK.
No. 3.
Prof. JevonS, in Money Mechanism
and Exchange, - shows that in 1865 the
value of gold between 1889 and 1909
fell in the alto of 100 to "A or lG
per cent. From 1906 TO 1859 it raised
from 100 to 24j, by l4j per cent, rem
dering government annuities and
fixed payments almost two and one
half times as valuable as they were in
1909. prostrating and paraIyzing in
dustries in the same ratio that debts
and fixed incomes become more val
liable, and gold increased in value and
purchasing power. After 1916 gold
discoveries in CalifOrL ia and Australia
increased the worlds annual supply
from SCI, 900. 700 that year to S1S1, OOO,-
OJO in 1851, diminishing its value Sc
per cent.
It's contended that gold is a stan
dard of value. 1t can not be standard
Of its own value, as it is subject to all
the changes and fluctuations of other
products. Uniformity of general
prices is the only reliable standard of
money value.
In 1857 Chevalier in his work, Fall
of Gold" said: THE quantities of
gold annually thrown on the market
makes in round numbers a millard of
francs $500, OO0, ,OOO). For long series
of years California and Australia
must produce such quantities as to
render a market decline in its value
inevitable" As gold increased its
purchasing power declined, conse-
quently labor and the product of
labor increased.
Germany, Austria and other coun-
tries demonetized gold. The Con-
gressional Monetary Commission says:
The movement in Europe for the
general demonetization of gold would
have become general but for the re.
sistance of France. The change from
demonitizing gold to demonetizing
silver was more of form than of sub
stance. The object aimed at by both
was disuse ofone of the money metals
to protect the creditor CLASSES, and
those having fixed income against
fall in the value of money and a rise
in general prices of labor and pro-
perty" The Fall of Gold" which
Chevalier lamented in 1857 was its
fall IN relation to property. 1t was
not fa!l in gold in relation to silver
which caused Germany to demcnetize
silver in 1857, nor was it fall in the
value OF silver which induced several
countries of Europe and the United
States to demonetize that metal. The
object was the same in both cases, to
decrease the volume Of money, and
consequently enhance its purchasing
power.
Banks should not have the power to
increase or contract the currency, and
the right to regulate the currency
should be taken from congress and re-
ferred to the people No legislative
body ought to be vested with the
power to pauperize the nation. The
liberties of the republic are in danger
10 long as the power to decrease the
money volume remains in the hands
congress. They can, by collusion
With the chief executive, cause a con-
6scation of nine-tenihS of the prop
erty of the ma ion. All powers o;
congress are derived from the consti-
luton, but that instrument should be
amended so as to prohibit congress
from decreasing the per capita circu-
alton of money below gwen point.
say $50, without its being submitted
y direct vote of the people. And
;he taxpayers of all countries should
:ederate together and pass an inter-
national law holding any ruler re-
sponsible for ary new indebtedness
except and with the unanimous voice
Of the people expressed by the Aus
tralian ballot system.
There is no doubt but that congress
and the national administration have
been unduly influenced by the money