The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1895-07-26
FINANCIAL DEBATE.
Slavery was Once Universal Sug.
gests Harvey.
IS PRIMARY AND CREDIT MONEY
How the Commercial Ratio of Silver has
Followed the Legal Ratio Before
and After Decentralization
Catechism is Used.

Chicago, July 24.-The eating capac'
| ty Of the rooms Of the Illinois club was
taken up when the Horr-Harvey de-
bate opened today While the size o,
the rooms do not permit of large audi
| ence. the officers of the club are com.
PEELED every day to refuse many ap-
| plicants for seats.
The contention of Messrs Horr ane
Harvey over the silver question wa'
resumed this afternoon. The talk wa.
opened by Harvey. He said the de
bate of the last session was of value az
showing that during the past forty
years silver had been steadily coined
in spite of the assertion to the contrary
that. by table copied from the reports
of the minis, the commercial ratio be
tween gold and silver had been main
tanned at about the French coinage
ratio of 151s to for 200 years; that dur
| ing the twenty-five years since 1873
as a result of demonetization, the com.
mercial ratio had declined to 80 to l.
and that during that time the com.
mercial ratio had chung close to the
legal ratio. During all that time the
commercial prices of silver bullion had
remained steady. Since 1873 it had
the dominating influence of London ex-
change to all parts Of the world which
led to gold being recognized by the
world al the standard in all commercial
transactions.
| Horn, then proceeded to call atten
ton to what he called mislea ding state
ments in Harvey's book. For instance
| he declared to be untrue the statement
| hot he1aved that the cost Of
producing all of the gold in the world
was about 50 per ounce while some put
it much higher. Horn pointed out
that there had been vastly increased
production at greatly reduced prices
If it cost what Harvey spoke of. the
silver miners in three years would have
lost over s100O0O.O 600. Harvey had sale
that the debts of the United States
amount to $4,000, eco OCO. That was ar
absurdity The statement Of the amouni
of interest which the United State:
paid annually to Europe was also un
true.
| Mr.. Harvey said that the amount Of
/ silver referred to by him in his book
was the amount available for coinage.
For the rest he proposed to pursue the
order Of discussion and answer the
| questions when he came to them.
| Mr.. Harvey then distributed a table
showing the production of gold and
silver from 1892 to 1892 and proceeded
| to argue that in spite of wide relative
| fluctuations in production there had
| been no fluctuations in the relative
| value till after the demoneti-a ton ac
| ton act in 1873. He then proceeded to
/ argue that except in the legal ratio Of
| weight there should be no difference
in the treatment of silver and gold. He
said that the creator of money had the
right to regulate the thing created te
| the extent of fixing relaive ratios but
1t had no right to take from the legal
| tender quality nf anv money created.
| Mr.. Horn continued his objections to
Mr.. Harvey'S statements in his book.
He took up the suppostion that the
government wanted 100000 horses; tina :
its competition would Increase the vain
| OF horses; that free coinage of silver
void increase the value of the bullion
Mr.. Horn said that all the government
did to silver was to put a stamp on the
bullion and return it to the owner. Sup
| pose the government should call for
100000 horses for the purpose Of affix-
| ing brand on them and having done
so should return them to the owner.
| would that Increase the value of the
horses of the country. The horse argu.
| ment Mr.. Horn declared was a fraud.
The speaker then took up the matter OF
the elements which govern the price OF
wheat, arguing that Mr.. Harveys de-
auctions were fallacious.
Mr.. Harvey said that this govern
ment had fixed the price of gold and
all the friends of silver wanted was for
1t to fix the price of silver, in the belief
that the nation could better keep out
of the hands of pawnbrokers with two
metals than one.
Returning to his argument on bimet-
allism, Mr.. Harvey said that the op-
ton OF the debtor to pay in the cheaper
metal should not be impaired. This
would always maintain parity If the
creditor were given the option of the
money in which he should be paid he
would demand the dearer money, there
by increasing the demand for that met.
al and decreasing the other, thereby Wi
dening the disparity.
Continuing Mr.. Harvey declared that
all nature was bimetallic. Men had two
legs, two arms, two ears, two eyes. He
declared that there were availa bic for
coinage in the world about 16 ounces
Of silver to one of gold.
Relying Mr.. Horn took up the ques-
ton Of farm tenancy, whose growth
Mr.. Harvey at an earlier stage of the
debate had adverted to as a bad thing
in national life. Mr.. Horn declared it
a good sign and quoted from statistics
gathered by the state of Minnesota,
showing the steady evolution of the
tenant into the land owner and from
other statistics showed that the in
crease in the number of tenants had
been accompanied by decrease in the
number of farm day laborers The in
crease in tenancy had not been at the
expense of farm owners but at the ex-
pense OF day laborers.
Mr.. Harvey declined to discuss what
he called 1.-The tenant business" but
promised, that he would take it up when
the got to it. He then went on to say
that there are two kinds of money in
the general sense in which the word is
used, one being primary money and
the other representative money or, as
he would call it for the purpose of de-
bate, credit money This latter
kind Of money is divided into aper mon.
ey and token money which includes
copper cents and nickel five cent pieces
No attempt is made to maintain the com
mercial ratios OF these metals at any
ratio with the metal out of which they
pay for articles, the price Of which is
less than values at which we coin pri-
mary money. Primary money is the
measure of values. Gold, Mr.. Harvey
said. Is now our measure of values and
Fouf representative money is tied to 1t
~ the tail of a kite Is fastened to the
kite. He then made short argument
showing that supply and demand repu-
/ late the value Of money the same as all
other property.
Mr.. Horr announced that before pro-
ceeding to the question of production
OF silver he wanted to say few words
on the nisleading nature of Mr.. Har-
veys statements on finance He then
Attached The u,odo bv Mr.