The record-union., 1895-05-22

as it will now, and ask Congress to pass q
law making the dollar twice as large as
before. What sort OF answer would they
receive? The fitting answer would be
that the Government had chosen the most
stable thing it could find TO serve as the
material for the dollar; that it never in
tended to guarantee the purchasing power
of the dollar in terms OF auy other article
or articles. and that any attompt to do SO
in the interest OF class would be dis
honest. Equally dishonest Is the demand
that the dollar be changed in the lnteres.
of another class.
CHAPTER VL.-THE! DISPUTE WITH LY-
MAN J. GAGE.
We shall now examine something
which has the outward semblance of an
argument. II is that part which en-
braces the colioquy with l.. j. Gage. Mr..
Gage, says "CoIn," asked the question:
"How can you have, at any fixed ratio,
arate metals that are from time to time
varying in The quantity of each pro-
duced?" TO which "Coin'' made de-
liberate answer. beginning thus:
"When the mlnts OF the world are
thrown open and the Governments say,
we will take all the silver and gold that
comes an unlimited demand is estab-
with an unlimited demand and a limited
supply there is nothing to stop the COM
mercial value of the two metals going up
in the market except the Governments
saying: Hold on-these metals are for
money-we fix the value at which they
circulate. This unlimited demand is for
silver at 81 for 37l4 grains, and 81 for
% 2-l0 grains of gold; we stamp those
into dollars respectively in those guam
titles"
Observe first that 'the mints of the
world" mot any less number) are to be
thrown open in order to create an unlim-
tied demand. Mr.. Cage ) attention being
thus tixeu. "Coin" continued:
England demonetized silver in 1916,
but Germany, France and the Latin
Union and the United States had their
nints open to the free coinage of silver
and gold, the demand thus created was
sufficient TO MAINTAIN the parity equal
value) OF the two metals and the action
OF England had no effect on the price OF
silver"
Then he says that the United States de-
mOnetiZed silver in February, 1913, and
was followed by Germany in July, 1873
the fact being that Germany did it on the
23d OF November, 1S71-that France and
the Latiu Union did it in 1874, and India
in 1898, which accounts for the decline in
the price of that metal. Next we have q
table Of the market ratios of silver and
gold from 1867, when it was l4.94, to 1878,
when it was 1892, to show how steady
they had been before the latter date.
You will sec from this table," contin-
ued Coin that from ISL to 1873 the
commercial ratio OF the two metals was
never lower than l TO l4.l4, and never
higher than l to 1925, variation Of only
about two points,"
What is meant by two points?" They
are spoken ot as something quite trivial.
Bear III mind that the whole question is
this: What deviation OF the market ratio
from the legal ratio will suffice to carry
one or other OF the metals out of circuIa-
ton and have us going on one leg, as
"Coin" is fond OF putting it? The differ
ence between IA. IA and 1926 is exactly Is
per cent. Is this trivial matter? Under
modern conditions of trade premium OF
one-tenth OF | per cent Is sufficient to
carry either one Of the metals to the melt
ing pot or to foreign countries. Robert
| Gitien says that a much smaller premium
| than the one we have named will suffic
| to carry gold out of circulation. A for
| tori the Two points" which "COin' Jug
giles into the readers mind as something
| quite Insignificant would constitute an
absolutely impossible barrier to bimetai-
| lism. But the effect was paralyZing to
the intellect OF Mr.. Gage. who replied that
this steadiness Of only two points varia-
ton has been due to the enlarged use of
these two metals as money under free
coinage law adopted by the principal ma
tiOns of the world"
Observe that "the mints of the world''
have dwindled to ''the principal nations
of the world" without particular desig-
nation. Having got Gage to admit more
than Coin" had contended for the latter
continued thus:
Then. Mr.. Cage" said "Coin." "we
agree, do we not, that the commercial
value CT silver and gold can be main
| tanned ut par on "a fixed ratio at l5i to l.,
or l6 TO 1, if their free coinage is provided
for by the same nations that had such q
law in 1872" "Yes." said MIR. Gage,
1--WE agree thus far"
Here tine mints of the world" with
which this lecture began. and which. II
thrown open to both metals, would create
San unlimited demand' for both, have
shrunk again. A moment ago they were
the principal nations OF the world. Now
they are 1.-THE same nations that had such
law in 1873" i. e., the United States and
the Latin Union! This is the reverse pro-
cess OF FalStatfs men in buckram.
This is the proper place for introducing
letter written by Mr.. Gage himself to
the New York EUening Post, viz:
"HoLLAND House, J
NEW YORK, April 8, 1895.
"IO the Editor of the EOening Post
SIR: In answer to your inquiry about
CONS Financial School, and my
scribed therein, l beg to say that never
attended any such lecture. that never
asked any such questions or made any
such answers, are there set forth. 1t
is a fabrication from beginning to end. /
have had many letters from all parts OF
the country, inquiring whether or not /
was correctly reported in the alleged dis
the negative. 1t is time the truth was put
on foot TO overtake the lie. Truly yours.
"L. j. GAGE"
ANOTHER FIB.
Before leaving this lecture we will no.
tice one other falsitication ION p. 3O).
Speaking OF various laws which have
aided to depress silver, he mentions "the
law of 1878 authorizing and sanctloning
! notes, bonds and mortgages to be tax en-
payable i'll gold only" This latter. says
"Coin," lis clause in the Bland-Alli-
son Act. . It discriminates
against all our forms of money and al
lows the creditor to dictate that his cred
| its shall be payable in gold"
The clause in question made no differ
| erce whatever in the status OF debtor and
| creditor, or in that of silver and gold.
| The Supreme Court had decided long be-
fore this time that the right to make a
contract payable in gold, or in any other
kind of money that the parties might
| choose, was a constitutional right. and
| that such contracts were enforceable ac-
cording to their terms. The Bland-Alii-
son Act, therefore, merely conformed TO
the fundamental law of the land when it
said that the silver dollars coined under it
should be legal tender Except where
otherwise expressly stipulated in the con-
tract" Therefore the statement that the
Act in question ''discriminates against all
our other forms OF money" is another lie
added 10 an already extensive assort-