Capital journal. (Salem, Or.) 1893-1895, 1895-10-14
Discusses The Money QasestiOn
Ably.
THE CAUSE OF FALLING PRICES.
A Mastery Address Which MIL
lions Should Read.


rCJntinued from Saturdays Journal. ]
In all business transactions between
ciiizsns OF different countries, It is the
weight and fineness Of the gold con-
taIned in coin and not the name OF
mint value that lie given II by law that
determines ils purchasing power.
oar gold eagle would be worth just as
much for all purposes Of foreign trade
If 1t was melted into an irregular mass
without the sgu of a stamp OF our
mint upon II. aud It IL in It's more per-
feet form, aud 81 in fut 1t would lie
worth substantially the same ut home,
la one form as the other, for " melted
down the owner could t.ke IL to the
mint and have IL recoi ned without ex =
pense to himself
RThe ouly practical purpose that is
secured by coming gold in any country
IL to determine the weight and fine.
meas Of separate pieces without the
necessity Of Weighing and asceTtalnins
the degree Of their nneness each time
they are exchanged for something else,
and even this purpose Ia large trans
actions is not wholly attained, for those
engaged In them always insist upon
weighing the coins used, and give
aud take them In their value In
weight instead of their face value, ss
represented by the stamp Of the mint
at which they were coined.
Gold being the single standard at
the present time Of most OF the COM
merclal countries OF the world, II is
evident the supply Of that metal 10
wholly inadeq uate to meet the re-
quIrements Of business for circulating
medium, and hence the necessity for
what is known as credit money, that
is money that must be redeemed with
gold when demanded.
This you will readily understand
compels the government or corporation
issuing this class Of money, TO make
provision for It's red emptlon by keep
ing ON hand q supply Of gold that is
deemed sufficient to meet their obllga-
tlons In this respect, and In this way q
very great demand the world over Is
necessarily created for this one metal.
In our country, while We have no
law upon the subject, custom has
been established and adhered to by
both Republican and Democratic ad-
mlnistratIous IN keep on deposit In the
national treasury at all times to meet
the governments obligations, one Of
which is the redemption Of It's out
standing treasury notes, at least one
hundred million dollars In goldi and to
secure to all forms OF currency that cir
culAte as money equal value, the Gus.
tom has been extended 80 as 10 include
the redemption OF silver certificates,
that upon their face are made redeem
able with silver dollars.
Soon after the demoneti Eation OF
silver by this and other countries, the
two metals, gold and silver began to
separate In value, and this has gradu-
ally increased until now the silver bull
lion In a silver dollar Is worth but little
more than one half the gold In gold
dollar.
Since we demonetized silver, con-
gress has at times made temporary
provision for Its coinage TO y limited
extent and under these provisions ell.
yer dollars haYe been coined, 30 that
we now have an actual circulation, or
on deposit In the treasury Of the
United States, four or five hundred
millions Of these dollars that circulate
80 far as they are in use at par with
gold, pay just as many debts In all or
dInary business transactions Of the
massss; ;buy just as maOh property and
answer every requirement In our daily
affairs that the same number Of gold
dollars would do, and these silver coins
are neither by law or custom redeem
able In gold.
Their further coinage, however, has
been recently stopped. and there Ia. 80
Ear a. understand, no provision OF
law by which we are likely to add to
present volume Of coined silver dollars.
or 20 our silver certificates as part OF