The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-02-23

/ nave papers why not use the Cheapest |
material possible?'
The answer is that silver and gold |
are suitable for money. The answer Is |
that legislatures can never be depended |
upon to fix the proper limitation or re-
Istriction upon the amount OF money
which may be issued if this be left en-
ltirely within their control. The amount
of money issued ought not to be so IN
lcreased or restricted as to operate as
an injustice to anybody SO far as the
matter can be controlled. The equity
lOf contracts and fixed charges ougnt e
be preserved. The proposed increase OF
$50 600 600 under the present condltl0ns
would not operate as an injustice Inc
lsurest indication as to whether we nave
Ian excessive and inflated circulation, OF
la contracted and inadequate elrcula-
ton is the general level of prices
Whenever values are declining, eS-
pecially the values Of the great staple
products whose production is substan-
italy uniform from year to year, tleh
lit may be considered as certain that the
lcurrency is not being unduly inflated
lOn the contrary, it is certain lndlcae
ttion Of the fact that the amount OF
money is being unduly contracted. Inc
lamount of money issued in any country
fought always be sufficient TO MAINTAIN
la uniform level of prices and to secure
Ian equitable execution of Longtime CON
tracts. -
A
wear when the level of prices was at
lcertain stage, ought not to be compeAId
to struggle harder this year in order 10
obtain the means with when 10 ulo-
lcharge it than when the DEBT was con
f,acted Yet no person Wlthln the
tso1,nd of NV voice can fail to apprecl-
late the sorrowful fact that last year
Land the wear before, when certain oeplS
1,-ere contracted or ten years ago, WheH
lobliga tons were incurred, 1T required
less of effort less sacrifice on the p pa
Iof the debtor to obtain the means WIN
which to satisfy the inuepe0Ao7S
lit does today. ;+
IT Is said that in the banks of the city
. lof New York there is a superabunuance
Eof money. The existing phenonaelld di e
, peculiar In certain locanles I neIS 10
, abnndance of money; in other localllles
49, ;s an absolute want of money
! What does that indicate? AWhile ago
. the money which is now in the oatlks
lin Now York and in other large COLI
, Imercial centers was hoafoeu, slo 49, So
: laway in the vaults of 1ndlVloudlS' VA" VS.
: withdrew it from circulation, VINO uIu
:" TI-iel n mt If in the banks because
thav were frightened lest those lnSllI W,
, Hons might prove insolvent. BY ana py
: confidence was restored so lar as lne
; credit of the banks were conG Ieali.sI
> Paonle took their money TO the pdIiho 20
mot to invest it in the eInployllle 49, ~
? labor, not 10 Sldit Wy 80 ,,,,osad ii
q nrise. but because they suPpO 49,, +ar
. oieht he boarded there with create I
, safetv to themselves than IL Ihey Aop'
La at home in less secure places; :.
: This money now in the vaults IS IN
effect boarded, and boarded money -
4 for the purposes OF pusillesS told in
q 11Jere not in existence. Money helu III
i tba treasury of the United states 10
NOT in circulation. Such money may
= he i,oO ra a., as in certain sense la
O font. but it has but little IL any liilu I
4 ence upon the general range Oh p lices,
s Int little effect upon the proouc.l,Ns
@ energies of the people. These paii1s
. iii not loan the money they are mold
h inc WHY? Because the lana OF the
q farmer. is constantly depreclatng. II
p Won have land which today might De
q Regarded as a sufficient security lot
8 loan. tomorrow that security is llldue-
l. lquate.
s To buy farm today would pc a los
ing transaction, because the man WHO
o controls the money for such purpose
s might have a reasonable expectation
r of obtaining the farm cheaper tomor-
II row. Who will invest in plant Win
+ which to start up some new niahuIdc -.
e turing industry and give employment
/ Ito laboro The machinery which mas q
5. certain price today will tomorrow or
= next week be purchasable for less
$ money. Hence capitalists do not IN
k west their money, do not eXpend II IN
Is the employment of labor or IN the
l. starting of new enterprises, Out sloie
$ it away and hold IT,
The interest upon the boarded money
e is made in its appreciation, in the de-
II cline of the prices of all kinds of prop
$ Iertv Such is the condition now Why,
II then. should we not put some money IN
y lcircuIation? The banks will not do 1t.
II I'm the midst of declining values no
= security is deemed safe by them eX-
e tcept government bonds. Under such
: circumstances no man can afford to
!, borrow even without interest for the
u lpurposes of investment We have all
: the symptoms of contraction. The
remedy for contraction is expansion.
u THURSDAY, FEB. Is, 1894.
Is MR.. RAWLINS-Mr Chairman, the
le decline in the price of wheat and cot
~ ton and other staples has not only been
70 coincident with, but, as l contend,
- caused by the decline in the price OF
~ silver. l am informed that in travel
- ing on the railroads through India
&c there may be seen out in the wheat
- and the cotton fields the ryot. A piece
a of cloth covers his head and another
y wells his body He is not we'll enough
-, . off to own even a hut The only shell
- ter of his family is the shade. His
g wages are rupees per month. Sucf
- it has been in all his experience. If i
80 were reduced he would die. If it were
20 increased he would be transformed
az from the ryot to the nabob,
There are hundreds of millions o.
CO such people To them, in all their bus
al mess experience, silver has been thu
If only medium of exchange. In its pur
a. chasing power, in its debt-payinl
or power in all their domestic trade-ant
c. they know none other-it has been a.
ar unchanging and Interchangeable as thei
ra habits or their religion. They no NOR
~ do business in terms of gold than the.
Il think in an unknown language. TWEEN
*, ty-five years ago an ounce of gold, un
al known to those people, would ex
of change for 16 ounces of silver, which
would buy in India 16 bushels of whea
ue for export to Europe. In 1890, whel
ne the price of silver was raised tempo
II rarily under the operation of the pur
X chasing clause of the Sherman law, al
in ounce of gold would exchange for 2
n ounces of silver, which would in Indi;
al buy 20 bushels Of wheat for export t
an Europe.
of In this day of golden grace and mo
ng lnometallism, an ounce of gold will ex
is change for 33 ounces of silver, whic
lin India will buy SO bushels of whea
ed for export to Europe. What is true O
India is true of China, of Japan, an
as lof the Straits settlements. Hence it
of that wheat, cotton and other stapl
d. products in this country have gone u
to and down as silver has gone up an
by down in its gold price. And so, a
in silver has gone down it has becom
ia, lcorrespondingly harder to pay a. deb
as or lift a mortgage. Hence it was tina
he those who were familiar with this sui
j.. e..