Capital journal. (Salem, Or.) 1893-1895, 1895-04-09
THE THEORY OF BIMETALLIsM.

newspapers ana magazines tDat iAVOI
single gold standard to refer TO any at
tempt to restore silver 10 Its legitimate
use as money rs an attempt Ito debase
the currency and "to defraud the cred.
ltor." The expressions "honest money"
and "dIshouest money" and "sound
currency" aud "uusound currency" are
very popular with the opponents Of
silver; 10 fact, almost as much 80 as the
term 'isllvsr crank" which is generally
used as a sort Of summing up Of the en-
tire case against silver.
The use Of epIthets, however, Is never
very convincing and can only be jn1ti
fed by the exigencies OF public debate.
II the term "sllver crank" Is TO be used
ID can be understood how necessary II IL
20 have some such expression ~ "gnid
bug'' with which to Offset IT,
AZ matter Of fact, II the advocate'
Of "honest money" so-called, INDUCED
more Ia argument and less 10 glitterlnR
generalities greater good would be &c.
c0mplIshed. For example, the Port
land Oregonian, In commenting favor
ably upon the suggestion OF the N y
Times that Sound money clubs" be or.
ganlzed throughout the country, says:
"These clubs would naturally devote
themselves TO considering the refu,ing
the falIacies OF the tree silver school,
among which may be mentiond:
"Flrst--Thst gold has appreciated
or risen In value, aud that this las
caused fall IN prices, bringing disaster
10 producers aud the debtor class, and
that the appreciation OF gold Indicates
that II Is scarce and that there Is not
enough OF Il TO serve as basis Of tie
worlds commercial dealings"
Now let Us briefly consider this STATE.
ment numbered one that the Oregon
Ian, without argument or discussion,
stigmatlzes as a fallacy. The essential
point Ia the statement is whether or
not gold has appreciated" In value. II
It has, then, whatever the cause Of the
appreciation may have been the result
ls the same, Every debtor In the wcrld
who owes an obligation payable In go d
can only settle that obligation by Civ.
Ing greater value than he received.
We assume that the oregonlan will
not contend that there has not been
with,a the past few years, whatever
the cause may be, general fall IN
prices.
We assume further, that the Oregon
Ian will accept the following an fair
statement of what constitutes the value
Of gold: The value OF thing IL what
Il will exchange for; the value Of gold
10 what gold will exchange for the
purchasing power Of gold. II prios
are low gold will buy much OF other
things and Is Of high value; II prices
are high Il will buy little OF other
things and IL OF low value. The value
Of gold IL lnyersely 'as general prices,
falling as they rise and rising Ms they
fall.
wheiher the appreciation Of gold In
value indicates that II is scarce or not
h not the question. The question is,
how can the appreciation be Temedled;
10 other words. how can the value Of
gold be deprecated 10 = normal level
aud general pFlces bs raised to nor.
NAL level 20 ~ 10 avert disaster TO the
producers aud the debtor Glass"
There IL only ono way In which that
eau bs safely done, aud that ls by Ia.
eFeaslDe the volume of money of unit.
mate redemption. II silver were 10.
stared 10 Ia use as money on parity
wlth gold, there would Inevitably be
Ksnerai Tlse 10 prleos aud dsprecla.
llon IN tho value of sold that would
snahle the producer aud debtor class TO
pay their debts en the same basIs upon
whleh they sers eIiginally contracted,
II lbssa Nmnss, moreover, are not
lFns, and n They afs mere fAllaoIes, as
ihe osssonlan inilniatss, then where 10
|ho Hdyanlage 10 bs gained Ia restoring
,lnelallsn, even under an lnteFna
ional aaresmani, which the o1egopIAn
,sulends a. favoFy
Thee afe lhs Questions that papsTs