The Yale expositor., 1895-05-31

curities caused the Barring failure.
From this time the issue OF treasury
notes nominally secured by silver bull
lion but actually redeemable in gold
began to pass the point of safety. What
would have been far removed from in
fation with silver and gold at par
ity became dangerous because resting
only upon a narrow foundation OF
gold. The structure OF paper money
was built higher at time when hall
the foundation (silver) had crumbled
away and the other half was being dug
into to supply the increasing needs OF
European nations. Coexistent with this
was great industrial activity and re-
sulting increase in actual wealth. With
the volume of actual money constantly
diminishing and the volume of wealth
increasing a disturbance in the ratio
was inevitable.
In every market in which the natural
tendency of prices Is downward the fall
in prices is resisted by an accumula-
ton of stocks. The classes who buy to
sell at profit will hold property once
bought as long as possible before SELL
ing at a loss. They will strain their
credit to the utmost limit before aban-
doning the effort to sustain prices.
mortgaging their property, borrowing
on collateral, exchanging accommoda-
ton paper and delaying the payment
of their bills.
1t is the misfortune of silver that II
has been hanged first and condemned
afterward," Previous to its demone-
tization in 1873 it was worth most OF
the time more as bullion than when
coined at the ratio of 1G to 1.
1t is proposed by its friends to re-
store to it the rights as money metal
which it enjoyed prior to 1873, and
which were taken away quietly, almost
secretly, without any public demand
and without any of the reasons which
are now so DANGEROUSLY urged against
its restoration. That a re-establish-
ment Of the parity between gold and
silver would benefit this country no
fair-minded man will deny. Whether
the commercial influence of the United
States is sufficient to stem the tide and
offset the influence of the European ma
tions who have adopted gold standard
can hardly be ascertained without an
actual test, but when we face the con-
tingency of gold going to a premium,
nothing is seen which will affect unfa-
vorably the prosperity of the country or
make such change in values as would
work hardship to the creditor class.
1t has been argued that silver money
cannot be coined with sufficient rapid
ity to replace the gold displaced. 1t is
not necessary that it be coined at all.
There are in the treasury of the govern
ment 500 100000 silver dollars in addi-
ton to those now in circulation.
With this immense reserve silver GER
tiflcates calling for silver dollars and
made legal tender in the payment OF
debts could be issued on the deposit of
bullion, and since there would be no
question of the ability of the govern
ment to redeem its promise would cir
culate as the very safest form of paper
money, preferred for the settlement OF
all large balances to tile coin itself.
The United States produced in 1890
nearly one-third of the worlds produc-
ton of gold. 1t will always as nation
have gold to sell as commodity in the
best market it can find 1t mined in
| 1890 three-fifths of the worlds produc-
ton of silver, and so far from being
flooded in the event of free coinage with
silver from India, China and Japan
will always have silver to dispose Of at
its market price in exchange for the
products of other nations and in pay
ing principal and interest Of its securi-
ties held abroad. The United States, as
a nation, is a debtor nation. The
greater part of its debts were contract
ed on bimetallic basis when the dollar
measured in wheat was worth bushel.
The Measurement of Values.
Money is the universal yardstick.
Now an honest yardstick must always
be thirty-six inches long. Whatever
length was laid off and called yard a.
the beginning must always be a yard.
If merchant uses a yardstick only
thirty-two inches long he is dishonest
and his yardstick is a dishonest yard
stick. If on the other hand the GUS
toner after contracting for cloth brings
a forty inch rod and insists on its be-
ing used as a yardstick he will be sus-
pected of dishonesty. When we COM
pare the value money lengthy of all
staple commodities we find that the
yardstick of value has been made long
er so that each dollar will purchase
more Of almost everything than it once
could. The single standard dollar is a
dishonest dollar.
Legislation which will increase val
ues by making our monetary unit a BIZ
metallic unit. raising the price of sill
yer and all other staple products and
releasing our gold to the settlement
of foreign Indebtedness has not the
slightest element of dishonesty. 1t is
Just because 1t will restore to the prod
ucts of American labor the debt-pay-
ing power which has been taken away
by class legislation.
1t is patriotic because 1t will promote
the prosperity of the whole country,
and do more than anything else to Sc