Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1895-05-23
THE GOLD STANDARD.

THE GOLD STANDARD.
Encouragement Bynum. of Indiana, in
Favor of it-Reasons for His Position
Based on the Ground That Free Coin
age at Sixteen to One Would Result In
Reduction OF One-Half In the Value of
ALI Fixed Incomes.
INDIANAPOLIS, Ind, May lex
Congressman Bynum last night de-
clared unequivocally for single gold
standard. He said:
mo permanent restoration of confidence can
take place until the treasury of the United
States is put upon sound basis. Under ex-
listing laws the treasury must, on demand, re-
deem the national bank. greenback and Sher-
man notes and practically the silver certifi-
Gates, in gold. More than a thousand millions
OF currency is being upheld by gold reserve
OF hundred million of dollars. This condition
OF itself was enough to shake confidence IN
the soundness of the system, but when it be-
came apparent that the government could only
secure gold to replenish the reserve when de-
pieted by the sale of bonds there was nothing
left to support the credit of the government
except an implicit confidence in the deter
Iained purpose of the president and secretary
OF the treasury TO maintain the same at all
hazards With our currency in this Defense
dependent OF the concurrence of other govern
ments. Will only increase embarrassment
and hasten the period OF collapse.
I'VE can not have a sound currency so long
as the government continues to redeem and re-
issue its notes. The banks are natural deposit
tories Of gold, and they. and not the gov
eminent, should supply the currency
and make the redemptions. The gov
eminent will have performed its full
duty by exacting a security and standing
sponsor to the noteholder. Our laws en-
towering the banks to issue currency should
be so amended is to induce sufficient increase
to take the place of the Rreenbacks, which
should be retired. This would relieve the
treasury of all endorsements and bring into
active use our stock of gold, which is now
dormant.
while the volume Of currency is an i'm
portant factor in facilitating exchange, 1t is
equally important that it be sound, because
the celebrity of it's circulation depends largely
upon the latter. A currency of which the peo-
pie become suspicious from any cause, whether
real or fancied, however voluminous will fail
to perform the functions OF money and ulti-
mately bring disaster to commercial interests.
This fact has been demonstrated in every
country where it has been saught to simulate
prosperity by cheapening the circulating
medium. Gold is the standard of measure
ment of values throughout the world, and
whether we maintain 1t or not as the basis
of our financial system our trade and COM
nerce will be carried on and values ascer-
tanned and settled by the same memorable laws
which fixes the relation Of products through
out the civilized world. Every country in
the world, no matter what the character of its
currency, measures values by the gold stand
ard. II its currency is below the standard,
prices augmented to compensate for the
depreciation.
IF all the great commercial nations would
enter into an agreement to coin both gold and
silver at a ratio approximating their COM
mercial equality, the price of silver would, no
doubt, be given sufficient stability to hold ii
up to its coinage value. There is. however.
but remote possibility Of an international
agreement.
The question will have to be settled upon
domestic basis. The issue will be, shall the
United States, without the concurrence OF
| other nations, open her mints to the free
coinage of silver upon the ratio Of 16
| to 1? 1t is useless to attempt to dodge the
question by the use Of high-sounding
phrases about maintaining the parity OF the
| two metals. or that every dollar coined should
be the equal OF every other dollar, etc. The
discussion, therefore, should be directed to the
point as to the effect OF tine adoption OF free
coinage by our own, regardless of the action of
other governments. That the first effect would
be to drive out of circulation our entire stock
| Of gold is too patent for argument. An imme
date contraction of over $500 600 900 in the vol
| ume Of our currency would be the result
| This, If no other harm was done, could
not be replaced in less than twelve years. the
full capacity of our minis being about $50, OOO.-
900 annually. That we would go to silver
| basis at once, silver becoming the sole money
OF redemption, no one can truthfully gainsay.
We would have silver recommendation, and not
| bimetaIlism- Our silver money, when once d.
vorced from the gold standard would cease to
have any fixed value.
Before concluding an important transaction
| it would be necessary for the parties to ascer-
| tain the value OF the money by which the meas
urements was to be made, because upon it's
value would depend the price Of the product.
| Under such a condition our vast trade and COM
merce would become so unsettled, prices so
fckle and values fuctuating as to defy all
reasonable calculation.
Upon the stability of prices and the certain
| ty of profits depend the prosperity and happi-
| ness of a commercial people.
That the commercial value of the silver in a
dollar, with free coinage, would become the
| equivalent of this monetary value is self-evi-
dent. Two things can not be convertible-ona
| with the other-at the will of the owner. with
| ont possessing the same values intrinsically.
The silver in dollar is worth only
| about fifty cents at present Would the
| value of the bullion go up or that OF
| the coin, which is now worth hun
dred cents, come down? In view Of the
| fact that the purchase by the government, un-
| der the provisions of the Sherman law, or more
| silver than could be coined failed to sustain
| the price, and the further fact that in every
| government In the world Wnere silver IS De1ng
| freely used. it's monetary Is no greater than
its bullion value, it is evident that the none
| tary value OF present stock of silver, as
| we'll as that which might be coined in the flu
| ture. would be no more than its bullion value. "
THE effect would be contraction Of tho
capacity and. therefore, practically in the vol
| ume of our present stock OF silver money more
| than sa5O0O ,O0O A suspension Of gold and the
| substitution OF silver redemption would like
| wise affect our entire supply OF paper currency:
hence instead of an increase in the volume OF
money there would be a contraction Of more
1 than 80 per cent. 1t may be asked how could
| our silver coin depreciate so long as 1t was
| o full legal tender: Values are omeasured
| by COMPARISON A dollar that will purchase
| two bushels OF wheat will perform twice the
/ function OF a dollar that will purchase one;
| hence. while the silver, with free coinage,
| would still by law remain dollar. Its purchaS-
| ing power would be only only one-han what 1t
| now is. But, say the advocates of free coinage.
| that is just what we desire to accomplish. We
| want to increase prices. The great delusion OF
| the advocates Of free coinage is contained in
this idea: The belief is that by cheapening
| money, values are increased. AS well claim
that by shortening the yardstick half the
length of piece of cloth would be doubled.
who would be harmed by the operation:
The purchasing power Of the wages Of every
operative in factory; every employe
upon a railroad. every worker in mine. every
clerk upon a salary. in fact, every person with
. fixed income, would be reduced one-half.''
INQUEST INTERRUPTED