The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-10-13

in the transaction OF their ordinary BUSH |
ness-has been incurred since the passage
ard of value. and certainly there is no in
justice in requiring payment to be made in
the daae Of 81 the hon CONTRACTS rseasn While 0y we ,a Kno as
very nearly the amount Of legal-tender
money In circulation, or available for use,
are no authentic statistics showing the to-
tai amount of Indebtedness at any given
date. and, therefore,, Ii is not possible to
make an absolutely correct comparison be-
tween the amount of such money and the
amount of Indebtedness, but there is no rea-
son to believe that the proportion has
changed 10 the disadvantage of the debtor.
Certainly the advocates OF free coinage
have not proved, or, SO far as I know. even
attempted TO prove, that such a change has
subject is. therefore,. founded upon mere as
sertion unsupported by evidence.
INTEREST Is LOWER.
I'm order to show that the adoption and
maintenance of the gold standard OF value
has enriched. or has a tendency to enrich.
the holders of capital at the expense of the
producers, it would be necessary to prove
that money yields a larger profit to the
owner under such a monetary system than
it would under a different one. Idle capital
makes no profit, ard If the profits of the
capitalist have been increased it must be
because he receives a higher rate Of inter-
est than formerly, or because he realizes
larger returns. from his Investments than
formerly. Instead of this being the case.
however, il Is well known to every gen.
tleman in this assemblage that the average
rate Of Interest," was never lower in this
country than at the present time. and that
profits upon investments have been reduced
to the smallest percentage consistent with
the continuance of the enterprises In which
the investments are made. While this is
true, the great body of our producers, the
laboring people OF the country, are receiv-
ing as high wages as they ever received at
any period in our history, and the money
in which they are paid will purchase in the
markets more of the necessaries and COM
forts OF life than ever before. Capital and
labor combined. are the only real producers
or wealth. and the constant tendency in
this country Is to give labor more and cap
ital less out of the proceeds of their joint
dustrial progress. and, unless disturbed by
violence or by unwise legislation, 1t will
continue to operate until the relations be-
tween these two forces are permanently
adjusted upon an equitable basis. Their
real interests are not conflicting, but de-
pendent, and every attempt tc array one
against the other is injurious TO both.
II am sorry to say that one OF the most
effective weapons in the hands of our free
silver opponents has heretofore consisted
OF appeals to the class and sectional
preJudices of the people. but these appeals
appear now TO have spent their force. and
l think we may congratulate the country
on the prospect of a more dispassionate
and Intelligent discussion of the subject
hereafter But, Mr.. Chairman, we must
not assume that the abandonment or the
defeat of the free silver movement will
alone be sufficient to insure permanent fl
nancial peace in this country. Unfor-
trnately; as l think, the currency legisla-
volved upon the government of the United
States nearly the entire responsibility for
the MAINTENANCE of a sound and stable
TO the public authorities the power to en-
ploy the ordinary and necessary means for
the discharge of the duties imposed upon
them We - have tan 6fTaronf farms IF
money, or representatives of money, in this
country, amounting in the aggregate to
dollar Of 1t, except about s613. 000.000 in gold
coin and bullion. depends in whole or in
part on the faith and credit of the United
States. BY the resumption act of 1878. and
subsequent acts of Congress, the gov
eminent is required to keep this
f in excha useMS Value va eu to gold e eoini
because in no other way can the
United States notes be redeemed in coin
as required by law and the parity of the
holder of these notes to receive silver in
exchange for them when he demands gold
two metals, because it would make the in
ferior coin the measure of their value
in the hands Of the people, and it would not
reduce gold to the level of silver. Such a
course would place the currency of the
country upon a silver basis, and as the
silver dollar is not worth intrinsically as
much as the gold dollar, all further at
tempts to maintain their parity would be
unavailing.
QUESTION OF PARITY.
Parity between two coins of unequal in
trinsic value can be maintained in only one
way, and that is to adopt the more valuable
one as the standard, and by the credit and
resources of the government keep the less
valuable one equal to it in purchasing
power. If the less valuable coin is adopted
as the standard. or is permitted to become
the stndard, the parity is destroyed. be-
cause the more valuable one cannot be
brought down to its level, either here or in
| the markets of the world. The government
of the United States is therefore bound to
redeem its notes in gold when gold is de-
manded, or fail to meet the responsibility
imposed upon 1t by the law and by the ex-
listing state of our currency; and 1t must
continue to do this as long as it has any
notes outstanding. In order to carry out
this policy it must have constantly on hand
a sufficient amount of gold to inspire the
public with confidence in it's ability to re-
deem it's obligations when presented. and
this gold, under the conditions which have
existed during the last three years. can be
est-bearing bonds.
cone of the most important questions the
they can AFFORD to adhere longer to a sys-
tenn which periodically augments the pub
lie debt for the purpose Of securing gold
TO be exchanged for notes, which. when
redeemed. are not retired and Cancelled,
but are reissued and put in circulation 10
be over and over again presented for re-
demptions So far as the merits of this
single question are affected, il is iI2ma-
terial whether our standard of value is
TO he gold or silver, because the coin for
redemption purposes. whether il be gold
coin or silver coin, must be provided by
the government, and 1t can be purchased
only. by the sale of bonds. The free coin
age of silver on account of and for the
benefit of the owner of the bullion does
not, therefore,, enter into the discussion
of this particular question. Such a policy
would not give the government any sill
yer except what ii would receive in the
ordinary way as a part of its revenues:
IL would provide no fund for redemption
purposes unless we should have a surplus
revenue. Whether We continue to main
tain the gold standard of value or debase
our currency TO the silver standard, the
obligation. of. the government to redeem
its notes In coin on presentation will re-
main. and, consequently, the question
whether the notes when redeemed shall
be retired and Cancelled. or reissued, is
one which cannot be avoided or settled by
a change in our coinage laws. 1t must be
settled by legislation in another, direction.
and the advocates of free coinage of
silver at fhe ratio of Is TO /, or at any
other ratio, are as much interested in
it's correct solution as the opponent OF
that policy.
FIRST GREAT MISTAKE.
THE first great mistake in our currency
--o- -,.l1 l., ~