The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1894-05-18
CLEVELAND AND JEFFERSON


The DiRereDee Between Ancient and Mod.
ern Democracy.
Compare modern democracy's specie
basis, gold standard, intrinsic value,
anti-fiat views with the following pfin-
ciples expressed by Thomas jefferson.
On September IL, 1888, he wrote Mr.
Eppes as follows Bank paper must
be suppressed, and the circulating
medium must be restored to the nation
to whom it belon&& r is the only
fund on which they can rely for loans;
it is The only resource which can never
fall them and it is an abundant one Tor
every necessary purpesA. Treasury
bills, bctteDed en- taxes, bearing or not
bearing interest, as may be found nee
essary, thrown into circulatict, will
take the place of SO much gold anu sill
yer, which last. when crowded, will
find an ctfiux in other countries, and
this keep up the quantum of medium
at the salutary level"
The authorities appear to be with
Mr. jefferson and against Mr.. Cieve-
land. Ricardo says:
A currency Is in its most perfect state when
it consists wholly Of paper mo;ey, but Of paper
hOHty Oh dL tQuCA S1luC Win tue ROlo WuiSA -
processes TO represent Tho use OF piper in
stead Of gold substitutes the ekeapest in place
OF the most expensive MEDIUM. and enables the
country, without loss to any individual, to ex-
chanse all the gold. which before 1t used for
this purpose. for raw materials, utenslss end
food-by the use Of which both its Wealth and
it's enjoy ments are ircreaaed
The distinguished economist and
editor, Mr.. J. r. McCulloch, in COM
menting on the principles of money laid
down by Ricardo, says:
He examined the circumstances which deter
| mine the value of money. and he
showed that its value will depend on
the extent to which it may be issued compared
with the demand This Is a principle Of great
impor tance Tor It shows that intrinsic worth Is
| not necessary to currency, and that trosio ID
the supply of paper notes declared TO be a legal
tender be sufficiently limited, their value may
be main tanned on a par with the value OF gold,
or raised to any higher level II, therefore, 1t
were practicable to devise a plan for preserv-
| ing the value of paper On level with that of
| gold. without making II coneeftible into coin
| at the pleasure OF the holder, the heavy ex-
pense OF a metallic Currency would be saved
1t appears, therefore, that II there were Sc
curity that the power of issuing paper money
would not be abused that is, IL there were per
| feet security for its being issued III such guam
titles as to preserve its velta relatively to ne
mass Of circulating cemn.3dities nearly equal
the precious metals might be entirely dis
pensed with. rot only as a circulating medium
but A,sc, as standard to which to refer the
var.ue of paper.
| Earl Grey, writing to Mr. Grenfell,
one of the governors of the Bank OF
England, and referring to Ricardo
says:
iwould remind you Though it is hardly nee
| essary to do se) that in his admirable pamphle
| on this subject he (Ricardo, has shown the
| value OF paper money issusd D. the authority
OF the state to depend upon its amount as com
pared to the wants of the state in which 1t cir
| culates. No one, believe, now doubts this t,
be true, and experience has proved THAI incon
| vertible paper moneJ Will circulate not only
| without depreciation. bat sven at premium
| the issues arc susiclently limited.-Letter iron
| Earl Grey, dated May Il, 1881. Quoted in thu
| Bime talic Controversy by Gibbs & Grep fell
| page l6l
An early and distinguished authority
in our own country, Mr.. Gallatin, said
Hin a country which wants and possesses ,
| metallic currency Of $40 100000, q paper cur
| rehcy to the same amou It should be substi
| tated, the $40, OOo,oJO in gold AMI silver bein,
no longer wanted for that purpcsa, will be ex
ported. and the returns NAV be converted int,
| a productiv, capital aud add an equal anio9n
| to the wealth OF the country.
But John Sherman, voicing the sen
timents of metalmaniacs and golddls
tors in general. and the views of Mr.
Cleveland in particular, says:
There is no division of sentiment anon,
] conservative people as to the necessity of r
gaining silver as one OF the moneys of thu
country The only question we have discussed
| in congress is whether we can have free toih
| age without demone ti2:r, geld The genera
opinion is this woold be the result OF an al
| tempt by the United States alone to maintain
sixteen ounces Of silver with one ounce OF gold
While have always opposed the free coinag
of silver, have nOIe the less desired that sil
yer should be used to the utmost sSteht pos
Sible as money metal providing on that i
would not place us on d single standard OF sill
yer and drive gold from the Country gol
being the recognized Standard In monetar
transactions with all the chief commercial NJ
tions. l. therefore, joined heartily In ell
pressing the hope that the bimetaliio cOngfes
| about to ass ,mble in London Would fecomrnen
| some plan by which all the commercial ne
tons would arrange mode of coming bot
metals as money My own opinion Is that 1t
better to recognize at once as a fact that Is al
parent that on account of the vast increase
| the prod action of silver the ratio should
based upon the present relative market vAlu
o: silver and Id
If it be granted that the free coinag,
of silver Would drive gold out of tn
country, because silver. is the cheap
er(?) metal, it may also be affirme
that paper money, full legal tende
and inconvertible, would remain a
par with the metallic money of othe
nations and allow us the use of on
entire production of gold and silve
Qess amount we used in the arts). an
also our present supply of metalli
money for the purpose of settling at
verse balances of trade and, as Nj
Gallatin says, for conversion Into
productive capital" which would thu
add an equal amount TO the wealth {
the country"
But Mr.. Sherman's most astoundin
proposition is that we shall fix tn
ratio OF gold and silver at their preser
comparative value, after twenty yea,
of silver's legal degradation, durin
which time gold has not only had i,
! value(?) fixed by law, but has had tn
;. privilege of unlimited coinage at a
the minis of the world while silve
has been denied access to any of then
He coolly proposes to crystalline int
law the crime of the nineteenth ce,
fury and put the stolen booty of til
plutocratic money power into a plae
of security, behind the barriers of il
ternational sanction.
The following fact explains upon jus
how much of basis the much vaunte
intrinsic (?) value of gold rests. II
fact is this: The government of Gres
| Britain in order To leeo tho price =