The state herald., 1895-05-31
Is "A DEEP THINKER.
CLARENCE 8. BARROW FAvoRs
FREE COINAGE.
The Great Chicago Scholar Secs In It
the Redemption of the Wage Earn
Ing Classos - Now Lights on the
Subject.

It would perhaps be impossible to de-
termine why gold and silver are t'sed
for money. The so-called civilized ma
lions OF the earth in this. as in most
other customs. followed the barbarous
nations, which had generally come to
regard thcg6 metals as the best for
purposes Of exchange.
In ancient times they circulated as
they do to-day. because Of the intrinsic
value Of the coins. 1t required a COM
paratlvely large amount Of labor to
produce the metals; they were not
found In no great a quantity, and there
fore they were valuable as compared
with most of the other metals and prod
ucts Of the earth. In early days all
exchange was barter. and all business
was done for cash. When goods were
sold an equivalent was given. It was
therefore necessary to have some "uiii-
versal solvent" that could be exchanged
for any commodity the purchaser might
desire. Gold and silver gradually came
to be regarded Us this universal SOL
vent" and when commodities were
bought and sold they were simply OK
changed for SO much Of those metals
as n equal to the yatus Of the goods.
In those days when commodities were
rare. when business was limited, when
transactions were all made in cash. 1t
was supposed or assumed that tho gold
and silver OF the world were for some
unknown reason OF about the right
quantity to do the work. In these days.
when production is infinitely greater.
when distribution and exchange Is the
principa! business of the world and In
comparably more than then. when all
business is done In different manner
than in primitive times. 1t is still as
sumed that there is substantially the
right amount OF gold and silver to do
the business Of the world. No one
has ever attempted to show how much
money business needs or what are the
natural laws that govern the use OF
money In the exchange OF goods. 1t is
assumed to-day. MS 1t was a thousand
years ago, that the so-caIled precious
metals are found and can be found In
the right quantities to satisfy the re-
Quirements of trade, and also to fulfill
the other functions for which these
metals are employed.
II Ia claimed and conceded on all
hands that gold and silver circulate be-
cause OF their intrinsic value; that
these metals are money, and that all
other forms Of currency are promises to
pay money; that In the last analysis
all debts and all exchanges must be
paid In coin. 1t must follow from this
that the greater the amount Of coin
the less is its value per ounce or pound,
and that 1t is always to the interest OF
the debtor to increase the volume Of
money. and to the interest OF the cred
ilof to dlmiiiish the amdiin' How the
volume OF currency affects those who
are neither debtors nor creditors Is a
matter of pure speculation. as no one
has ever proved. or seemingly tried TO
prove, how much coin Is required to do
the business OF the world. The chief
equities In the controversy over gold
and si,.er are between the debtor and
the creditor.
1t Ia practically undi.puted that from
the formation OF the government up 10
1S7a silver held at least an equal place
before the law rs the legal money OF
the land. All debts were payable In 90
many ounces OF silver or so many
ounces OF gold. as the debtor might
elect. All the gold and silver that could
be obtained either by exchange or by
digging In the earth was available for
the liquidation OF Indebtedness.
II is claimed that the increased pro-
ductIon OF silver and the demonatiza.
tion OF this metal by other nations 50
added to Its volume us to make II no
longer fitted to perform the function OF
money, at least equally with gold.
The value of gold and silver. like tina,
Of all other commodities. Is governed by
the Law Of supply and demand. A lit
tie more than half the gold and silver
of the world ia used as money: the rest
is used for other well-hnown purposes.
A great Increase In silver without an
enlarged demand must decrease Its
value. And. equally, diminishing the
amount Of the circulating medium with
out decreasing It's use must increase
Its value. II silver could be shoyeled
out OF the earth as easily as sand II
would become cheaper. Under free coin
age the owner Of 4i2,s grains could 10
TO the mint and have n dollar mark
placed upon his coin and II must be
taken 10 llquidatc dollars worth OF
debts. As silver grew cheaper. the
prices OF all commodities would ncccs-
sarliy rise. On the other hand. II the
United States, using both gold and sill
yer ms money, should determine that
silver should no longer be coined, but
that gold must MI the place Of both,
then gold would necessarily rise and
the price OF all other commodities pro-
portionatcly fall. The full measure OF
this change would not be realized at
once. but gradually the law OF supply
and demand would enhance the value
OF the article that In this manner was
compelled to do double duty until the
prices had adjusted themselves to the
decreased volume OF circulating me-
dun.
Priq1 did not fall Immediately upon
tho characterization OF silver In 1873.
Land and commodities have n certain
value that has been gradually given
then by the laws trade. To change rec
ognlzed values In the absence OF n panic
IN slow process. and the full effect OF
decreasing the volume OF money could
not be reached for years after the
cnuao had commenced to operate. Shut
ting on the steam In n locomotive does
not stop the loaded train ut once. This
change has been constantly going on
for twenty years. Every year In this
time tho creditor has been able to de-
a a. a