New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-04-23
TIE INSIDE ABOUT SOUND MONEY.

TIE INSIDE ABOUT SOUND MONEY.
Secretary Morton. Senators Harris and Black
burn ana other statesmen ut the moment not
counted are rushing TO the front 10 eXpound their
position on silver Secretary Morton made Il
reasonably good aim at n definition of sound
money while the Democratic leaders from Ken
lucky and Tennessee fell into line on the free
silver side Senator Harris even confeSSing Il
strong proclivity toward Populist theories. Mr..
Clevcland's letter has naturally stirred up bel
lgcrcnts on both sides. and To the credit Of most
of them II may he said that they manifest more
definite ideas with fewer phrases than the ProSi-
dent himself But nobody. not even his OWN
Secretary of Agriculture, defines sound money
after fashion that relieves the Administration
from embarrassment
1t is not enough 10 say that sound money is Tn"
sort of currency which has the most universal
and the least huctuating purchasing power III
the markets of all countries Mr.. Morton pre-
sumablv suppoScS that gold coin IS that money.
for he further says: Those who are for a sound
currency on a gold basis ought 70 have the
courage to say So" This is really indecent
Slap in the face for the President, who has Just
written a.two-Coumn letter, and If he is in favor
Of "a sound currency on a gold basis had not
the courage to say SO, or to let his letter - ON
until with extraordinary pains he had cxpur-
gated every word which could bear that c0nstruc-
ton But gold coin is only one Of the several
kinds Of currency which must circulate side by
side in any land having sound money, and Secrc-
tary Morton makes a fatal mistake in not deiin-
ing what should be the conditions or guarantees
of the representative currency. which in every
commercial country IS actually used more than
the coin itself.
The fact is that the conditions. the terms Of
issue, the restriction or redundancy. and the
guarantees for redemption Of this representative
currency do in point Of fact absolutely determine
the soundness Of the money really in use in a
country. because they determine whether gold
shall be attracted or driven abroad. whether the
exchanges with other countries shall be such as
to undermine or to fortlfy its monetary system.
whether industrial conditions shall he 50 just as
to insure or so false as TO prevent financial health
and prosperity and accumulation Of wealth. 1t
IS the gross and glazing mistake of our
times. in financial discussion, that men called
statesmen try 10 act on monetary questions rs
if they We're apart from industrial questions; and
next is the folly Of ignoring the conditions gov
ernng the representative currency and fixing
attention solely on the character OF III" money
Of ultimate redemption.
Sound money, if it has any meaning. means
something better than this careless and sloppy
neglect of the currency actually in Use and con
trolling Starting with the idea that all the
money in circulation should be on demand re-
deeluabc in gold or It's equivalent in value. we
have next to see that there is not merely present
redemption and promise, but a guarantee and
accepted certainty of redemption In the future.
The State banks which exploded like 50 many
air bubbles in 1878 had been rejoicing up to
a certain date in the regular redemption Of their
notes. The explosion came because the c0ndi-
tons Of note issuing had been such as made il
practically impossible that redemption should
continue. Until Secretary Morton graSps the
problem Of representative currency, and that
with more courage and candor than the Prcsi-
dents empty phrases have exhibited, he has yet
10 define sound money. And behind thar rests
the whole question whether he il right in the
opinion that. as gold only is the most sure and
steady medium Of purchasing power in the West
ern world at This time il is not possible for inter
national use to provide a better, larger and more
steady medium by restoration Of silver 10 "A more
general monetary use