The Lafayette gazette. [volume] (Lafayette, La.) 1893-1921, 1895-07-06
N0flcH
THE MONEY QUESTION:

silver and gold at ratio of 16 to
by this country alone and without the
consent of other nations is growing
in popularity every day. The dis
cussion of this question began two
years ago at the extra session OF Con-
gress, called to repeal the purchas-
ing clause of the Sherman act.
Since then the discussion of this
momentous issue has passed out of
the halls of Congress and has been
saken up by the people with vim
and enthusiasm of unusual intensity.
In our opinion the people are right
and the gold bugs are wrong.
Under our present financial sys-
tenn money is getting scarcer every
day and there is continuous and
corresponding fall in the prices of
our principal commodities. The
scarcer the money, greater its pur'
chasing power, So that those who
possess the precious metal can get
more products and commodi-
ties in exchange for it, than its
fair equivalent. The toilers and
producers are thus compelled to
give too much of their products for
the money which the rich have
boarded. The rate of interest is
also increased by the scarcity of
money. 1t is clear if money is
scarce only few can have any to
lend and it lies in their power to de-
Aland the rate which they may de-
sire. Apply for loan to-day and
the first reason assigned for high
rate of interest is that money is
scarce, and you must accept the
terms or go without the loan as
very few have any to lend. If
there were more money, you would
apply to others for the loan until
fair rate of interest was obtained.
We do not bla pne the money-lender as
all men seek thei1 advantage in bus
mess transactions, but the fault lies
in our monetary system which tends
to produce a contraction in the
currency. On contracts payable
on long terms, the fact that money
is getting scarce falls heavily on the
debtor class. AS an illustration,
supposing that in 1890 farmer had
borrowed the sum Of $500 payable
IN five yearly instailmcnts of S1oo.
As cotton was worth 10 cents
pound in 1891 two bales of cotton
weighing 500 pounds each would
have paid the first installn1ent,
whereas to pay the installment due
this year more than four bales would
be required. Under such a fnan-
cial system is it surprising that the
producer is getting poorer? The
gold standard men say there is more
money than ever before. They APP
peal to statistics to prove the asser-
ton. The laboring men out of
work, or the farmer who can hard
~ pay his taxes, will find lit
tie consolation by being told
that according to statistics he is in
a prosperous condition and ought
to be happy. Adm lifting for the
sake of argument that according to
statistics there is a great deal OF
money, we must not lose sight of
the fact that all of that money,
whether issued in silver certificates,
treasury notes or silver dollars, is
merely token money because
based on gold, which is the only
money of final redemption. Gold
being scarce, a contraction of the
currency must of necessity be the
result. Allow the free coinage of
silver, primary money or money of
final redemption will be increased
by one half and the volume of the
circulating medium will be sufficient
for all transactions, and sound
and safe currency will follow.
The goldbugs claim that free
coinage will make silver-miners null
timiliionaires, but raise no objection
against the enrichment Of the
owners Of gold mines. Indeed these
bugs with golden wings seem to
have u constitutional weakness for
the yellow metal.
1t is also automatic with them that