Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1895-05-23
Prof. Laughlin,s reasoning.

Prof. Laughlin's Reasoning.
Frof. Laughlin. replying for the negative,
began; apart from the well understood use of
money as medium Of exchange, money is used
ike common denominator of value with
"nicn other articles are compared As q
measure OF value, 1t serves in a similar
way as quart cup may serve as a
measure OF capacity; and as there is not
needed separate cup for every quart of
miiK In existence, one can measure hundreds
OF thousands OF goods by comparing with the
same standard Of measure. There is no need
OF an amount OF money equal to all the goods
In existence The measure Of value is that in
which prices are stated and debts are paid,
provided the measure OF value is also made
legal tender In any country. 1t is evident,
then, that the quantity of measures is not SO
valuable as the unvarying stability of the
standard Of the measure
He stated that goods, when expressed in
terms OF common denomlnator of value,
are to-day exchanged in enormous quanti-
ties, mainly without the use of any money.
The necessity Of an increasing quantity
OF money Is growing less important with
the development OF this system OF exchanges.
From q per cent to 95 per cent. of transac-
lions are performed by this machinery without
the use Of money, and recent Investigations
made by the comptroller Of the currency show
tnat Oh per cent OF retail transactions SIM
ilarly performed without the use OF money.
Prices since 1873 had not fallen because Of
lack OF money. Silver has fallen about so per
cent. as compared with o very modest fall in
the price Of commodities. Silver does not have
the same purchasing price in 1855 as in 1873.
Hence, free coinage can Lot be urged as just
means Of paying debt.
| SINGLE SILVER STANDARD.
Prof. Laughlin said: "Since we undertook
the purchase Of silver in 1873 it has fallen
about one-half in value, although we have pur-
1 chased about ss00OOo.0OO. 1t is perfectly EVIL
dent that there is no use in the United States
acting alone to bolster up the price Of silver
when We have failed even in concert with the
Latin union. Free coinage Of silver at i6 to
| means the single silver standard To
| day the market ratio between gold
and silver is nearly "a to /. II we had
the free coinage Of silver at 16 to there would
| be the premium Of about sixteen ounces of sill
yer as premium on thdrawing every ounce
| Of gold coin in circulation. The free coinage
| Of silver under such conditions as exist to-day
| would not mean the concurrent circulation Of
both gold and silver. 1t would mean the i'm
| mediate adoption Of the single silver standard
| Free coinage Of silver would not increase the
| quantity Of money. Since gold must De newt
| ably driven out the silver coinage would re-
| suit in a diminution in the quantity OF money
| ITO adopt free coinage OF silver at 16 to
| when the market ratio Is but 81 to l would
| mean the instant retirement from circulation
| OF nearly 100000 OF gold circulation. 1t
| could not change prices therefore by merely
| increasing the amount OF the medium of ex-
| change The way it would act, however. would
| be to change the price of everything because
| reckoned in cheaper medium than that OF
| gold. As free coinage OF silver would inevita-
| bly, result in rise of prices so it would imme-
| diately result in fall OF wages. Its first
| effect would be to diminish the purchasing
| power of all our wages. Free coinage
| Of silver would make all the articles of the
| laborer'S consumption cost him 100 per cent.
| more, unless he can get rise in his wages by
| dint of strikes and quarrels and all the conse-
| Quent dissatisfaction arising from friction be-
tween the employer and employe.
| BAD FOR DEBTORS.
1T is usually supposed that free coinage
| OF silver is in the interest of the debtors. !
think it will be found quite the contrary.
Not only will 1t prevent person in distress
from being able to borrow money when he
| needs IL, but 1t will create conditions which
will make 1t impossible for the debtors to meet
their Indebtedness. But greater than all OBJ
iections is that Of public dishonor and repudia-
| ticn. II free coinage OF silver were to be
| passed it would mean that every depositor In a
| savings bank, every investor in a loan associa-
/ ton. every holder of life insurance, every
| recipient of a pension, would have their dues
| reduced one-half. Is it possible that
there Is something behind this free
| coinage scheme not really discovered?
Is it possible that it is aimed
at the great mass of the industrious and intel
lgent, and Is it really intended TO serve the in
| terests OF the very rich and of great corpora
| tionss The bonded debt Of the railways in the
United States is about 5000 100000. If free
coinage Of silver were introduced 1t would en-
able these railways to pay of their debts with
what is now equivalent to s30O0.0C00O0. They
| would thus be relieved Of the necessity OF pay
ing to small investors who have taken their
| bonds one-half OF what these corporations now
owe them"
| Prof. Laughlin concluded as follows:
| Extraordinary as is the proposal for free
coinage, it is in truth only huge disease. II
| was born in the private Offices OF the silver
kings nursed at the hands OF the spectators,
clothed in economic error, fed on Doodle; and.
| as sure as there is honesty and truth In the
American heart, it will die young. and be buried
| in the same ignominious grave wherein lies the
now forgotten infant once famous as the rag
| baby"