The midland journal. (Rising Sun, Md.) 1885-1947, 1895-09-06
=" Sound Money!"

/
Sound money" by categorical inquiry
propounded by Charles Heber Clark to
the Sound Money League of Pennsylva-
MIA. The Chairman of the Executive
Committee of the League, c. Stewart
Patterson, gives the following goldbug
definition of their catchy phrase, and
| gold, it will be seen i'll their opinion,
is the only thing i'll the world that is
! money, everything else being mere make
shifts. The following is Mr.. Patterson's
definition of "sound money" and it may
be accepted as the true goldbug financial
theory:
"Sound money is of only one of two
possible kinds First, that whose market
value as commodity is equivalent to its
face value as money; or, second, that
which is representative in its character,
and having little or no market value as a
commodity is convertible at par into
money of the first kind. 1t is obvious
that, within the terms of this definition,
gold alone is sound money of the first
kind and legal tender notes, national
bank notes and the money of small
1 hlNNOl COp-
per coins are sound money of the second
kind. 1t is also obvious that SO long as
the Government of the United States is
able to redeem its silver dollars in gold at
par those silver dollars are sound money
of the second kind, for their monetary
value is dependent not upon their market
value as bullion, but exclusively upon
their convertibility at par into gold. 1t
is also obvious that as money of the sec
ond kind representative money, silver
dollars are more bulky, more inconven-
lent to handle, more costly to produce
and no more effective than notes. 1t is
also and equally obvious that if silver we're
to be admitted to free coinage at the legal
ratio of I6 to under the independent
action of this Government it would not be
possible for this Government to continue
10 redeem its silver dollars at par in gold
and such silver dollars would, therefore,
not be sound money"
Money, therefore, by the goldbug ruling,
which is very modern, is valuable COM
modify selected and stamped by the gov
ernment. Demand and scarcity gives
value to the commodity. The money
demand for gold made it comparatively
scarce and consequently dear. If the
money demand is taken away from gold,
there is abundant evidence to prove that
its commodity value would decrease that
it could not as a commodity be exchanged
for more than half as much property as it
now, as money, exchanges for. In proof
of this, prior to 1873, when silver was
treated as gold and the government
coined all that was sent to the minis, its
commodity value was as great as its coin
value. That is, silver in the bullion state,
like gold, would exchange for the same
quantity of other property as in its coined
or money condition. The government
demonetized silver, that demand was cut
off and the price fell. Treat gold in the
same way and its purchasing power will
fall as did that of silver These may
safely be accepted as established facts. 1t
is obvious that government demand for
coinage gives gold at least fifty per cent of
its value compared with other things that
are not money. We have it demonstrated
by facts that before 1873 the same gov
eminent demand for silver for coinage
gave that metal fifty per cent of its value
or purchasing power.
With these facts before us who can
prove that silver, with the government
demand for coinage added to its commod-
ity value is not as sound money as gold
Both receive under these conditions their
value from the same sources, the demand
for their use in the arts and from gov
eminent for coinage.
Mr.. Patterson uses the word "obviousA
several times where his assumptions are
not obvious at all, while he omits condi-
tions that are obvious. One of those
obvious facts is that if the demand for
silver for coinage were added to its COM
mercial value as in the case of gold, its
exchangable power would be the same as
gold, and it would have to be classed bv
the goldbug rule as Sound money!"
There is no escape from this conclusion.
Mr.. Patterson says that "silver, nickel
and copper are sound money of the
second class" But the government saws
by its law that these coins are Sound
money" of the first class, they are not
redeemable in gold and will exchange for
as much silver, nickel and copper bullion
to the amount of $500 to $500 as gold;
and silver dollars will exchange for as
much of any merchandise on the market
to an unlimited amount, as the same
number of gold dollars. These coins,
silver, nickel and copper, being exchange
able for the same quantity of commodities
in the market as gold-buying as much
as gold-and not being redeemable in
gold, are obviously" as Sound money"
as gold. If not why not
One fact, a very prominent one, is
worth stopping here to notice. A silver
dollar will purchase nearly as much silver
bullion as will make two silver dollars
a gold dollar will do no more-and they
are not redeemable in gold as Mr.. Patter-
son tries to say, without exactly doing so,
which proves the silver dollar to be the
soundest of ''sound money" and that the
money function is in the government and
not in gold as the goldbug is absurdly
attempting to persuade the public. So
sorry an effort must fail.
Mr.. Patterson. without exactly SAVING