Capital journal. (Salem, Or.) 1893-1895, 1895-10-12
Ex-eov. Bo1Es OF IOWA.
Continued from second naas !

'n coiu, and the price obtained bo,
substantially the same relation to IN
lace value of the bonds that gold an
silver did to the face value of our treas
ury notes.
Not only were government obllOs
tions disposed of upon this ruipou
basis of ifference between the price re-
ceiyed for them and the sum IL woul,
take to redeem them, but the Who'll,
business of the country, state, munici
pal corporate and private, was trans
acted upon the same plane of an in
Hated paper currency which congress
had declared legal tender in paymen nj
of all debts.
10 attempt to grasp the magnitude
OF the figures which would measure
The sum total Of all these debts con.
traeted before specie payment was re-
sumed would be an utterly futile effort
OF the human mind.
II is sufficient here to realize that IL
was great enough to divide our own
people iuto class of creditors upon
one side and far more numerous class
OF debtors on the other and yet 1 believe
tbs true that larger part OF our
national, state and corporate obliga-
cations were held by residents OF other
countries than our own.
There was one redeeming circum-
stance In the situation as 1t then ex.
listed. The great bulk Of ordinary in.
debtsdness of the masses could be can
celled with the currency In commoL
use, and the result of this initiation
was great enhancement of the sell
Ing price Of nearly all the products of
labor, 30 that a man owing we will say
one thousand dollars, and having In
In his possession property that would
soil for only five hundred In coin:
could realize enc Thousand for II In
treasery notes, and with these could
cancel his Indebtedness.
In 1873 more than ten years after
both gold and silver had diappeared
from circulation, and when the masses
'f our people had ceased to regard
'lther as essential In the transaction of
heir business bill was In some man.
ner got through congress, and received
The approval Of the president, that
iemonetized silver, that is to say that,
provided, that thereafter gold alone
'hould be the real money Of the coun
ry, instead OF gold and silver alike as
heretofore, and this WAS followed by
mother In the year following, limiting |
he amount for which silver should be
J legal tender to five dollars.
Following these acts In 1878, the gov !
rnment resumed what is known as I
pecie payment, that Ia to say, when I
ver one Of It's pecuniary obligations
vas presented for payment, II the 7
Iolder demanded gold instead of paper,
he government paid him with gold.
1t was not until after the resumption
fspecie payment that the country at
arge became aware Of the fact that =
liver had been demonetized and that y
old alone In our financial system was r,
ur only real money. IL
Much has been said Of the means y
mployed to secure the passage Of the :
OF demonetlzlnR silver.
I have not the time nor is 1t neces-
lry to discuss the subject here.
1t is enough to state a self-evident A
act; It was not done in the interest OF
ne debtor class, for no rational being
Irgely indebted TO others could be n
lade 10 believe that his interests
'ould be promoted by lessening the q
olume of money he must obtain to Il
leet his obligations; aud 1t is equally IiSS
pparent that 1t was done In the in q
,rest OF the creditor class, for the ex- e
erience Of every age teaches us that Il
ature's law OF supply and demand p
,rgely regulates the market price OF Il
very article essential, to mans exist !"
nee, and It follows as an irresistible IN
oncluslon that any act which lessons =, ~
ne volume " a country's money st
,ould necessarily increase the value OF = :,
that is left, and to the same extent "
ha yalua of avery obligation payable u'