The Helena independent., 1894-12-19
DEBTS IND DOLL1Rs.


H. NJ. Fletcher delivered u very able
address last evening before the Unity
club In Grand Army hall. HIS subject
was Debts and Dollars" and II proved
very Interesting 10 the many people
who heard H. After alludlng 10 the
widespread Interest In monetary ques-
lions, and 10 the special interest felt
by silver producing communities In the
question Of himetallian. he said that IN
a larger and broader sense an Joined
IN the desire. born OF worldwide neces-
slty for u stable currency, u monetary
unit that would be- the same yestcr-
day. to-day and tomorrow. He traced
briefly the history OF money showing
that it was no longer simply "A medium
OF exchange but had assumed the very
important function of the standard OF
deferred payments. When used as a
medium Of exchange the stability OF the
monetary unit was Of comparatively lit
tie account; but when used as u stand
ard OF deferred payments this stability
was of the greatest importance. The
stability Of the monetary unit was
shown 60 depend upon the volume of
money In circulation In relation Ia the
demands of trade. Contract the vol
ume, trade remaining the same, and
prices fall, or what was the same thing
the purchasing power Of money rises,
Initiate thelcurroncy and prices of com
modltles rise, the purchasing power of
money falls.
Historical instances were mentioned; /;
the long period prior to 1903 when the
steady flow Of gold and silver into Eu-
rope inflated the currency and prices
OF commodities went UP even twenty
fold; the period following this when the
revolt Of the Spanish colonies stopped
the flow OF the precious metals. the cur
rency was contracted and prices fell;
| the discovery of gold In California In
lS4S, In Australia soon after, followed
by the Issuance Of millions OF credit
money by the United States during the
war; again inflated the currency and
prices rapidly rose; I'm 1873 the practi-
cal decentralization OF silver by Ger
many, the United States and other ma
tions and the resumption Of specie pay
ment In 1879 by this nation again con-
tracted the volume OF the currency In
its relation to trade and since that time
prices have steadily declined.
This eternal seesaw between money
and prices, resulting TO the injury now
of the creditor. now of the debtor, was
the fault of the financial system which
left the volume OF money 10 the caprice
of accident instead Of making II the sub
Ject Of intelligent control. which might
opera house last night sent the follow
as that proposed by President Andrews,
of Brown University. Under that plan
commission appointed for the purpose
could, by watching the prices OF staple
commodities, discover when those prices
were falling or rising. A general rise
| In prices would indicate imitation and
the proper officials could proceed 10
stop the imitation by a gradual contrac-
tion; and vice versa. The currency could
be inflated by purchasing bullion with
money and having the bullion coined,
II could be contracted by purchasing
money with call bonds at low rate of
interest The plan would be so simple
and so easily understood that fraud on
the part of the commission would be inn
possible. The benefits arising from such
a plan could hardly be estimated.