Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-04-20
a Talk With Secretary Morton on
the Money Question.
SUPPLY OF SILVER OUTGRONN DEMAND
Why an International Conference
Could Not Establish a Ratio.
WHAT SOUND MONEY IS

There is one member of the Presidents
i5he talks, as an unreserved advocate of gold
Z monometallism. Although representing
the west In the cabinet he is an out and
out single standard man, and politicians
say that he stands very close to the Pres.-
dent in that regard and takes a prominent
part In the executive councils over the
money question in its reference to politics
This official is Secretary Morton of the
Department Of Agriculture. He is very
h cautious about giving out interviews, indi-
eating considerable sensitiveness of the
fear of seeming to intrude his opinions
upon the public. At the earnest solicita-
4 tion of Star reporter today, however,
Secretary Morton consented to permit the
had with the reporter upon the money
question.
Must Recognize Gold.
4 "My own Judgment is that we must SOON
er or later declare that the United States
of America recognizes gold as the best and
least 1uctuating measure of value and
medium of exchange which the commerce
Of civilization has thus far utilized" said
4 Secretary Morton in the course Of his talk.
1.-THE time for straddlers has passed. Those
who are for sound currency on a gold
basis ought to have the courage to say so,
and abide by the results of their declara-
tion. 1t makes no difference to me wheth-
er declaration of truth. either upon the
tariff or the money question, temporarily
drives votes from US or allures them to US.
Why Silver Cannot he Restored.
"My judgment is that silver cannot be
restored to its former monetary place in
the commerce of this world. because the
supply Of silver has outgrown the demand
for silver in the exchanges of civilization.
The relation OF supply to demand is the
sole regulator. Of value. This axiom ap-
/ plies alike to salt, silver, sugar and soap.
All the legislation of all the -law-making
bodies on the face of the globe can neither
mitigate nor annul the operation Of the in
exorable law that the relation Of supply to
demand is the sole regulator of value.
L have no hesitation in declaring myself ut
3 terly opposed to all the free coinage fall
lacies, all the 16 to l lnnacies, and all OF
the cheap money illusions and delusions.
which populists and other vagarists advo-
cate.
An international Conference.
IT do not believe that an International
4 congress can establish permanently COM
mercial ratio between gold and silver any
more than it can establish a permanent
commercial ratio between rye and wheat.
But II an International conference can fix
the price in gold or silver 1t can also fix
the price of wheat or of any other COM
modify, and thereby avoid all the possible
shrnkages in values which tend to cause
panics.
1.-The value of gold is always relative, and
the word intrinsic ought not to be used.
To illustrate: If I sell you thousand
bushels of wheat today for $57O. the transA
faction has established for the time being
the wheat value of gold and the gold value
of wheat. Tomorrows cables of utter fail-
ure of the wheat crop in Argentina, Rus-
sia and Europe would entirely change the
relation of gold to wheat, and the thou
| sand bushels of wheat purchased at 81
cents yesterday Is worth 81. IA bushel to-
day. But, in the meantime, there has been
no change in the intrinsic value Of gold,
Notwithstanding there has been change
In the relation Of wheat to gold:
What sound Money Is.
'The Presidents critics ask. What Is sound
money? Any ordinary man Of business may
answer that question. Sound money Is that
sort of currency which has the most uni
versal and least fiuctuating purchasing
power in the markets of all countries.
That money is the soundest for which
throughout the commerce of the civilized
world there Is the most universal demand.
And that universal demand is always based
upon the universal ard untluctuating pur-
chasing power of that money.
Il think the present epidemic of the silver
fever will in due time abate. AS the tenn
perature of the 16 to l patients declines
reason once more resume it's sway. 1t is
barely possible, however, that the financial
fallacies of the populists and other vagar-
lists may temporarily secure a majority of
the voters of the United States. Should
such catastrophe overtake the country,
they should have learned by diligent study
and reason