The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-03-17
A DEFENSE OF sI-AErALLrss,

shares.
A DEFENSE or BY-NETAILYS9,
Mr.. Henry Dunning Macleod. In IN
article against bi-mesailism IN the Novem-
Der number OF the Nineteenth Century,
contends that III II were possible 20 e.
tablish . fixed ratio between gold and
silver By international agreement. II
wossid be equally possible 70 DIX the value
OF al commodities." and declares that
"the attempt 10 restore bi-metallism ID
simply the endeavor TO revive the ex-
pioded economic failacy that the value
OF commodities can be regulated by law"
He characterizes ~ 'tdelusion'' the
theory that . fixed legal ratio between
the coins can control and fix the relative
value OF the metals In his view. ut b
the market value Of the metals which
regulates the relative value OF the coins"
and. s'as the value Of the metals II con-
stantiy changing IN the market OF tbs
world. the value OF the coins must equally
do 30 too" He goes so far a. to declare
Il proved incontrovertibly that '.the fixed
legal ratio between the coins never had
the slightest effect on the relative market
value OF the metals.''
II IL difficult to understand how q man
OF the admitted ability OF Mr.. Macleod
can seriously assume 30 rntenable q posi-
ton. In the February number of the
same magazine Mr.. Edward Tuck, the
eminent fnancier, successfully demon
strates that the arguments of Mr.. Mac
I4eod are fallacfous and misleading. Mr..
Tuck Is one OF the managers OF the great
banking house Of Munro * Co.. OF Paris.
He IL an American. although residing IA
Paris, and his ability as q hnancier has
won for him a worldwide reputation.
After quoting the extracts from the arti-
Gle OF Mr. Macleod given above Mr. Tuck
says: "Bt-metailists cannot allow this ex-
traordinary statement OF the case, made
In SO absolute q manner by an author of
repnte In economic science. to pass with
out protest Primarily, we decline to ad-
NIT that money 10 . commodity, or that
there Is market value OF the money
metals Tor metaD different from the legal
value. Gold was q commodity before Il
was used a. money. Just as silver has
become commodity since 1t ceased to be
money. Commodities have a price, but
money has not. Money makes the price
OF ali commodities. but is itself with.
out price. The price of commodities var
les with variations In the demand for
them: the Remand for money, or for
bullion to be converted into money at
the invariahle mint price, Ia Unsuitable.
An ounce OF gold Is always worth e lis.
3D.. because the law requires the mint
TO give that price for 1t. The value of
gold bullion y necessarily measured by
the quantity OF coin II win make. and
there can be no value which viii prevail
against the mint value. II q mountain
OF gold were discovered tomorrow II
could only be appraised by supposing It
converted into coin at the rate fixed by
law"
Referring to the contention of Mr. Mac
Ieod that II Is impossible to fix the value
OF silver by legislation. Mr.. Tuck says
very truly: THE statement aa to the Inn
possibility OF fixing the value of COM
modities by legislation IL doubtless applIc-
sblo to silver while 1t remains a mere
commodity. deshroned from its historic
seat as precious metal. and without the
same legislative sanction to fix Its money
value, Its debt-paying power. which gold
enjoys and on which gold depends for its
seeming fxity.''
The arguments adduced by Mr.. Tuck
are certainly unanswerabie. He demon
strates conciusively that under a double
standard values the world over would
remain moro stable and secure than
under single gold standard. The great
trouble. however. with the advocates OF
single gold standard is that they look
at the subject solely from the standpoint
OF the creditor classes. They deplore any
increase in the volume OF metal money
OF ultimate redemption on the ground
that 1t Is an imitation of the currency. a
deSasement of the money of the world
aud fraud on the creditor. They never
seem to remember that prior to 1873 gold
and silver constituted the money of the
world. and that the demonstration of
silver at that time has resulted In a great
hardship TO the producing classes the
world over.
The situation Is well illustrated by Mr.
Tuck as follows: I'm the conduct of trade
throughout the world. prior to 1879. gold
and silver money might be likened 10
counters In familiar games. where the red
counter Is worth Ave of the white. ac-
eording to the accepted legal enactment
governing the game. though the one dif-
fers from the others In color only, and
not In weight or substance: ia exchange
ability, in utility as a deht-nayer, and
not In intrinsic value. The white count
crs could be 'demonetlxed.' and the game
continued with the same amount Of red
counters. but sabdiyided into smaller
sizes, each reduced piece representing as
much "a the larger piece represented be-
fore, though ut the sacrifice OF convent
enee, And now. In the great gsne of the
worlds commerce. since ls7s, the demon
e,ixation OF the white counter has aetn-
ally taken place, Involving In this ease.
not convenience alone. but the whole
| fabric and system OF prices. The eoloresi
| counter has In effect been saedsvidea;
which means. dropping tho sirilie and
stating in rlain language the true effects
| OF Fnonc-n letalIism upon business. that the
| prices OF commodities generally have been
cut Ia two ans debts. interest on debts.
and rentals, While remaining at their
former nominal valuation. have in reality
greatly Increased IN burden. No ore
| today can better rralize the truth OF this
statement than the British agricultusiss
ana landowner. Whether the present
state OF affairs has been chiefly caused
| by the increasing comparative scarcity
Of money OF ultimate redemption. or By
thu dtsiccation OF the exchanges with
countries sttit trading on a silver basis.
| or by a combination OF beth causes, IL Is
irnnaateriai now TO inquire. But the re-
| suits are upon Us ard speak for them
selves"
IMPORTS AND IMPORTS.
TIA Bankers Magazine fer March gives