Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1894-11-08

1t is current complaint ol INC loPu
lists that there is not enough money IN
the country to carry on the business Oh
the country. But the public records show
that the circulation per capita was larger
last year than it had been at any time
since 1860, and it has not been reduced
since last year. 1t is evident that 1t is not
lack of money in the hands OF the people
that has caused the recent fall in prices,
for the amount of circulation is now great
er in proportion to the population than II
was when high "wsr prices" ruled. And
not only is the amount of circulation now
much larger than then, but its quality is
better, for every dollar of it is now practl-
cally "as good as gold" and will bring its
face value in gold.
1t is in fact this good quality OF our pres
emit circulation to which the Popullsts
seem really opposed, for their pet project
the free coinage of silyer-would soon
drive gold out of circulation and bring the
remaining currency doSn to the price OF
silver. In other words, while Immediately
reducing the volume of circulation it would
at the same time cut down the purchasing
mower OF what was left. This would not
be an increase OF the circulation, but an
actual and large reduction of it at time
when the Populists insist that its increase
is greatly needed. There never was con-
cocted a scheme more certain to defeat
the professed objects of its projectors than
this Populist proposition for the free coin
age of silver at the ratio of l6 to l.
There is in the country to-day about ooo
million dollars in silver. Each of the sill
yer dollars coined in fact contains but lit
tie more than fifty cents worth of metal;
but under the statutory pledge Of the Gov
ernment each one Of them will buy one
hundred cents worth of commodities. The
adoption of the policy of free coinage
would at once destroy the popular faith in
the Governments pledge, and the purchas-
ing power of the silver dollar would sink
to its bullion value. Our 600 millions OF
silver dollars would then buy only about
300 million dollars worth of property, and
| it would be necessary to double the num-
Der of silver dollars to give that currency
as much aggregate purchasing power as 1t
has now. In the nature Of things it would
| take some time to double our silver coin
age. and when that had been done we
should be no better Of in that respect than
we are now.
But in other respects, and long before
that as done, we should be much worse
off. The adoption of such silver policy
would at once drive out Of circulation the
| 500 million dollars of gold now in the
country, and to replace this we should
need another 1000 millions of silver 5o-
| cent "dollars" to give the metal currency
as much purchasing power as now. But
we should need more than this, Tor the pa
per currency now based on gold would
then be reduced one-half in purchasing
power, and it would be necessary to double
that also if we would avoid an actual
shrinkage of circulation. In fact, We
should have to double up our present to-
tai circulation of about 900 million dol
lars to give the country as much effective
currency as we have to-day. While the
Government mints and presses were strug
Cling with this job the country would be
suffering from lack of currency, de-
rangement of values and O paralysis OF
business such as it has never yet known
And the net result Of it all would be thai
the present great fortunes of the silver
producers would be vastly increased, the
wages of all workers would be greatly re-
duced in value, the savings and invest
ments of all thrifty citizens would be cut
down one-half and debtors would be able,
under the cover of law, to cheat their cred
itors out OF half their dues
No doubt many-not all-of the men
who are now favoring the free coinage Of
cheap silver are honest in their belief that
it would benefit the country; but little
sober reflection must enable them to see
that diluting the currency will not increase
its effective value any more than the dilu-
ton of milk will add to the value of that
fluid. The real value Of what we call
"money" lies in its purchasing power, and
no government on eartn is strong enough
to greatly modify that power. The law
may enable men to cheat their creditor,
out of part or the whole of their dues
but it can never enable any man to buy
property at half its market value. The
good quality of q currency is important
but the stability Of its quality is the most
essential point, for there is no scheme fol
robbing the people more certain and rapid
in its operation than that of debasing the
currency of a country.-AgitdtOr.