The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-08-15
TO GOVERNOR NELSON,
AN OPEN LETTER BY JUDGE
STEARNS.
The Part of the Governors Argyle
Speech Relating to the Money
Question Is DiSsected.

l may be entirely frank with YOU without
disturbing our friendly relations, political
or personal. l write as Republican to a
Republican.
l was panied and surprised on reading
that part of your Argyle speech rela ting to
the money question; panied that you felt
called upon to ignore a plank in the plat
form on which you candidate for re-
election; surprised at the, as it seems to
me, manifestly untenable positions you
take on questions vitality affecting the
money problem 1t is not my purpose to
discuss the money question. but only to
point out two or three of the untenable
positions mentioned
You in substance assert that the act of
1873 demonetiZing silver was a technical
rather than practical matter You truly
state that under the operation of the
Gresham law under the law as it was
before the act of 1873, the cheaper metal
for the time being became the standard
measure of values and was the only metal
coined driving out for the time being the
dearer metal
Under the law as it stood prior to the
'N'Noio
their debts in either gold or silver. and
had the right to buy either metal in the
market take it to the mint, have it freely
coined into money with which to pay their
debts. When specie payments We're re-
sumed in 1879 under the operation of the
act of 1873, all debts became payable in
Sold or something that represented gold
1T is true that at the time of the passage
OF the act Of 1873 the bullion in a silver
uoliar was worth a little more than the
bullion in gold dollar and it is on this
TACT mainly that you seem to relv to prove
your statement that the effect of the act
OF 1888 was technical rather than practical.
ignoring the fact that silver kept gold
where 1t was by being ready to step in
and take its place as a measure of value
and for coming purposes whenever gold
went up a point or silver came down a
point Silver has gone down more than
2o points with reference to gold (thoueh
very little. if any, with reference to com
modltles); in other words, gold has gone
up win reference to silver and most other
commodities. And you carry the idea that
the tall of silver is not the result of its
RECOMMENDATION. OF course it is not if that
act was only technical If then the law
mad been left as it was prior to the act of
!o'5' when specie payments We're resumed
IN 1919, silver would have become the meas
ure OF values and the only metal coined
giving us distressingly cheap money in
place or our present distressingly dear
money: AND yet you say the act of 1873
was simply technical, not practical
IL uoes not signify for you TO answer by
pointing out how the poor creditor class
would have suffered from such a state of
a1alrs how We would have been Mexican
lZed' or other evils that would have flown
from It, The more you struggle with the
proplem the more patent you make it that
your position that the act of 1873 was tech
i.
Inc fact is, courts of equity and leeis-
iatures have long striven to establish some
barriers against the powers of money
loahers over their comparatively helpless
ueptors. illness equity rules against en-
forcing penalties and forfeitures usurv
laws, insolvency laws. laws staving execu-
tons, giving time for redemption. and
SO on.
More important tnan any of these was
the option that debtors had to pay their
debts in either one or two metals and to
nave them freely coined for that purpose
This right was ruthiessly stricken down
by the act of 1873. Yet this act was only
technical, not practical!
Mind, ! don't say It was not just and
wise and evidence of the highest statas
manship in those who brought it about
L am not discussing that question now. I
only say it wrought something more than
a technical change in our monetary af-
fairs.
an equally surprised at your assertion
that since the passage of the Bland act we
have had honest, genuine bmetalism
lnder the Bland act and since then, what
figure has silver cut in our currency?
Leaving out of consideration mere sub
sldiary coin and considering for the time
being that the government has correctly
construed the law requiring silver to be
redeemed with gold in order to maintain
parity.
The government bought monthly a given
amount of silver Oh which to stamp what
were practically and in effect promises to
pay gold dollars Finding it a very cum
bersome, inconvenient, easily counterfeit
ed material on which to stamp such prom
ises it corded up most of the silver and
stamped the promises on paper, a much
better material for that purpose, and for
some inscrutably wise reason the promise
printed on the paper to an ordinary mind
would be construed as a promise to paw
silver dollars, but is treated by the gov
eminent as a promise to pay gold and in
this state of affairs, when, as you truly
say, every dollar in crcula ton is either
gold or something that represents gold
something convertible into gold, just ex-
actly it would be if paper promises to
pay gold took the place of our silver dol
lars, when the only possible measure of
values we have is gold-the only metal en-
titled to coinage is gold-the only second
airy or quasi money is something convert
IDLE into gold you say have honest
genuine bimetalism. Ii may be all right
but to call such a system honest, genuine
bimetalism almost takes my breath away
Another position of yours surprises me-
viz, that in order to have genuine bmet-
alism the two metals must actually circu-
late side by side as currency.
l assert that in a money system based
on coin as measure of values, whether
monometallic bimetalic, it is neither
necessary desirable that the coin should
go into general circulation as currency.
Paper promises to pay coin, amply Sc
cured, are more convenient and more
economical for that purpose. The office of
coin in such system is to measure values
and furnish a safe basis for the issue of
secondary paper money. The coin itself
should mainly lie in banks and treasures,
where it will not wear out and where it
is known to be on hand as reserves to re-.
deem paper when called for. All that
successful system of bimetalism requires
is free coinage of both metals at q reason
able ratio, either coin being full legal ten
der in satisfaction of all money obliga-
TONS All this we had till the act of 1873.
Trusting that you will give further and
more careful study tc the money problems
and finally starting from sound premises
reach sound conclusions, 1 remain very
truly yours,
O. P. STEARNS
Duluth, Aug T.