The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-09-09

by n. D. BARRoWS

EOltOrS hok8ld :-Ao eincclSi oAFHoSs
bimetallist 1 desire to place myself on
record on one point in the present contest
between monometallists ana bimetallists,
as 1t u being waged, not only in this
country, but throughout the world. The
point is this: Silver men as rule in
their zeal to right great wrong, disre-
gard or shut their eyes to the extremely
grave results which would certainly re-
suit from q sudden change from the gold
to the silver standard. The passage of
straight silver free coinage law, without
any preliminary checks or restrictions
whatever, would cause every one OF the
423, 900, 600 standard silver dollars now
coined to slump simultaneously to their
simple bullion value and with them would
inevitably 90 all the subsidiary and
minor coinage of SIS. 900. 900 or more, and
also, probably all the greenbacks and So
called Sherman notes amounting to nearly
5000, 900, 600 more. I say probably, con-
corning these latter, because President
Cleveland would without doubt move
heaven and eartt to maintain them on a
level with gold in order to keep the ma
tional bank notes ON the same level.
Morec YER, as q necessary result OF the
foregoing phenomena the national stand
ard of value, which tor the last sixteen
years or more has been maintained by
fictitious and wholly artificial means, on
a lsvel with the higher and constantly
rising specie, would be at once changed
from the level OF gold to the level of sill
yer, now SO far apart. The business of
the government, and, to q large extent.
~. IL n{rtv n
be suddenly forced on to the silver stand.
ard, just as certainly az would the waters
of Lake Erie if all obstacles were suduen-
ly removed, sink at once to the level
of Lake Ontario, although the latter is
more than three hundred feet lower than
the present level of the former.
Some inkling Of what such . sudden
and violent change would mean can BIZ
inferred by surprising that oil the meas
urements or length or extension through
out this country should have become ad-
justed to elastic yard measures. which
inches; and then all at once the old legal
yard measures of SO inches should be
substituted or by surprising that in place
of 200 pound oentals 100 pound oentals
should be suddenly substituted; or by
suppOsing, what actually would happen,
|
unit of value of this country would all at
once change from the gold dollar, now
worth about 1893 cents, as measured by
they silver STANDARD, to the silvar dollar
of 100 nents-for that is exactly what the
silver dollar would be worth II we were
on the silver standard-or (using the cur
rent goIdite phraseology. BY supposing
that the standard would suddenly drop.
as it certainly would. from 100 cent
gold dollar to so or 81 cent dollar, gold
valuation. Tho practical effects OF such
step as this could not be easily forecast;
it would be jump off financial preci-
pice.
Now. whilst it is perfectly true that
scientific bimetallism requires absolutely
that the standard shall rest on the lower
specie and that that specie shall abso-
lutely and freely cushion on the general
mass of the lower metal, in order thereby
to throw the burden of demand on that
metal or commodity and thus Keep it up
to the level OF the higher metal, and also
to relieve tho latter from the burden of
monetary demand so that it will auto
matically fall back to the level of the
lower metal, thus binding the general
masses Of both metals together. thereby
achieving what to many seems a mathe-
NAUTICAL paradox and an impossibl1ty,
namely, unity from duality, and further
more-which is OF c,ore importance than
all else-effeotually preventing Use in the
relative value Of money, which is the great
desideratum of every monetary system.
Whilst say, it is impossible to main
tain genuine bimetallism except by bSs-
ing both the legal and the actual stand
ard on, not alone the lower coined specie,
but on the general mass of the lower
metal. nevertheless the real problem now
confronting bimetallists every where is
how shall the standard be transferred
from the higher to the lower specie,
which transfer is an imperatively necss.
cary condition precedent to the true prao-
tice of genuine or scientific bimetallism?
Prior to 1878 all double standard nations
practiced pure bimetalism. In that year
was gold. and when silver thereafter
gradually became the cheaper metal, or
gold began to rise because of the in
creased monetary burdens thrown upon
1t by Europe and the United States, it
would have been very easy for the bime-
tallic nations to have transferred their
standard to the cheaper metal, as France
especially had so often done before; for
the two metals were, and had been for a
century. so nearly on par at the French
equation of 1871 to l that change from
the level OF the one to the
level Of the other caused no
serious disturbance of prices. such as
now would most certainly happen with
the bullion value of the gold franc almost
exactly double the bullion value of the
silver franc. The halving of standard
m easures of any kind Is too much like
jumping off precipice, at which most
people hesitate. 1t is this instinct, l
think, which makes very large numbers
of sincere friends of bimetallism pause
when confronted with the pald PROPOSE
tion of free coinage OF silver under exist
ing conditions, without any preparations
whatever. 1t is big jump, involving
economic disturbances beyond the capac-
ity of human wit to foretell. from 193-
cent dollar to 100-cent dollar; or. if gold
men prefer to put it the other way, from
100-cent gold dollar to 52-cent silver
dollar, which latter, under silver valu-
alton, would become the true 100-cent
dollar.
Colo partisans are much given to os-
tentatiously proclaiming the COLLAPSE
of the silver movement" because many
| friends of silver sometimes seem to hest
tate at this serious phase of the problem
which confronts them, to-wit. the wide
| ctasm that yawns between the silver and
| gold standard, which. has been wholly Gre
ated by the tactics and connivance of
| the gold men and for which the silver
men are in no wise responsible. The
point insist on is that the transition
| from the gold to the silver standard,
which must be made if we are ever to
practice the true principles of genuine BIZ
| metallism, should be made gradually be.
| cause of the radical and far.reaching eff
fects of such a change on prices of ali
property throughout this republic. 1t
| would seem to me to be in accordance
| not only with good economics but with
| good politics that this great change
should be made gradually and not abrupt
ly, with no preparation Whatever. All