Arizona weekly citizen., 1895-05-18
BOARDED GOLD PAYS NO IN.
 TEREST,

Will the gold money of the world cease
 to circulate when silver IS coined freely ?
 Certainly not is the answer of every
 practical thinker. On this phase of the
 money question the Denver Republican
 puts question:
 ''We want our eastern exchanges
 which advocate gold monometsllism and oppose all forms of bimetaIlism to an-
 swer question. They will make a
 strong poInt in favor of gold monome- tallism if they give a complete answer in harmony with the gold star dard theo- ry.'
 "We shall presume, in order to put this question, that an agreement has been made by all the nations of the world to open their hints to the free and unlimited coinage of silver and gold at fixed ratio. Let it be l5115 to i or Is to 1, the same ratio must prevail throughout the world. Let the hints be opened in accordance with this agree ment. Gold monometallIsts say that the effect of this would be that men would hoard gold and that there would be premium on that metal. What we want answered is the following What would the holders of gold do with it ul- timately?
 ''It is claimed by gold monometallists that the gold would be hoarded. But shall We understand by this that all owners of gold would turn misers and keep their gold locked up simply for the satisfaction of knowing that they had Ii? They could not eat it. But possibly they would make rings and other ornaments Of it. Do our gold monometallist friends think that that is what would be done with it? There is some g, 500,O00, 900 Of gold coin in the world, the greater part of which is held in the United States and Europe There is sn addition of about Sl500'0,000 annually from the mines All of this taken together would provide material for good many rings and bracelets.
 "The interest on this hoarded money would amount to a good deal in the course Of a few yeers. How long would | the owners be content to lose this inter- est? The gold monometallist proposi- tion precludes the idea that the gold | would be lent tc borrowers. According to their theory it would not be in circu- lation. Their proposition involves the eupposilion that men who had gold would sit down upon # and neither do anything with it themselves s0f let any one else use it. But irithat case what good would 1~uo the owners? -If-cannot be said that this gold would drift out of one country into another, for the same value would be put upon it in all parts of the world. There is no chance for the play of any Gresham law in this case. The Gresham law implies a country for coin to go to as well as one from which it may be sent, and coin is never sent out of country under the operation of the Gresham law unless there is profit to be made by the transaction. But gold would be worth no mora in England than in the United States, and in France and Germany it would command precisely the same price.
 "In ten years the interest on this hosrded gold would amount at per cent to 5I.4OO,OOO,00O. Is there any of our gold monometalist friends who think that the Rothschilds, the Seligmans, tue Ickelhemers, the kosensteins and the Sonnenscheins of gold monometallism would submit to any such loss as that rather than let their gold go into circu letion?'