The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-19

give employment to labor, advance the
price of our staple products, thereby bring
the basis of all true national prosperity,
largely increase our exports, and I'll our
United States to dominate manufactures
on this continent and in Asia as England
does in Europe Pc me tree bs enforced
now as it was from 1861 to 1S65-enforced
upon the money question as 1T was enforced
against treason. Do that. and We care not
"fa' - sa'u y J. B. CHEADLE.
Frankfort, Ind, April IL.
FaIlacies of the Foregoing.
It is difficult to sargue seriously with
person who insists that gold and silver coin
are not currency, and, therefore, not sub
ject to the Gresham law, but as Mr.. Chea-
die seems to be serious the Journal gives
him hearing. First. as to whether gold
and silver coin currency. The Journals
edition of Zelrs Encyclopedia is that of
1873 We have been unable to find in 1T
what Mr.. Cheadle quotes. Our edition of
Zell defines currency as "A circulating me-
dunn; the aggregate of coin, notes, bills,
ETC., in circulation in country, as pa
per currency, a specie currency 1t adds:
.sSee money! and under this head it de-
fines coin as stamped metallic curren-
cy," and says: Currency is the generic
term by which are properly designated the
conventional measures of value, whether
the measure be Immediate. as gold and sill
yer coin, substitute, as bank notes and
their analogies." So much for Zell The
definitions of currency by other authori-
ties are as follows: Worcester: THAT which
passes for, money in country; the aggre-
gate Of coin, bills, notes, etc, in circula-
ton, as "a metallic currency a mixed
currency . Webster: ..That which is in
L 81, -s~,<~
value or as representing property; as the
currency of country; specie currency"
The Century Dictionary: THAT which is
current as a medium of exchange; that
which is in general money
representative of value as the currency of
a. country, The Century further defines
metallic currency as 1.-The gold, silver and
copper in circulation as money" and pa
per currency as notes issued by a govern
ment or by banks as a substitute for
ey." Chamberss Encyclopedia: Whatever.
by being current among any nation or
class of persons, serves as the
money with which they buy cdm-
modities or pay their debts"
The Encyclopedia Dictionary, London: 1.-THE
current money or circulating medium of
country, whether in coin or in paper" The
Imperial Dictionary London: That which
of trade; that which is in circulation or is
given and taken as having value or as
representing property" The Peoples Cyclic
pedia: Everything that is received for pay
ment." Adam Smith says: THE currency
of great state, such as France England,
generally consists almost entirely of its own
COIN" In short all authorities and all writ
tiers on political economy and finance in
clude gold and silver coin in the definition
of currency. Mr.. Cheadle's attempt to
make a new definition of the word and his
argument in support simply prove his ignor-
ance of language.
Arguing from his false definition OF cur
rency Mr.. Cheadle says Hence, / re-
affirm that Gresham's law can have no re-
lation to our legal standard gold and silver
money" He might as well affirm that the
law of gravitation has no relation to Clinton
county Hiss affirmation would not change
the fact. The philosophy of the Gresham
law is simple enough People will always
pay their oebts with the money that costs
them the least. Suppose that A owes debt
of 100 bushels.-not bushels OF wneat or corn
but simply, bushels suppose n ,,isa ,a OF
tender for the payment of debts, and tnat
the debtor has the option which to use. IL
much as bushel of corn it is not hard to
guess which bushel he will pay his debt IN
The experience OF this and other countries 1a,.,s
OF gold and silver differs materially from
the legal ratio the coins of the more vdlua-
BILE metal are always driven out of circula-
ton In 1894 we made our ratio 10 TO be-
cause at Is to l goIa fled the country ana
went to Europe where the ratio was l9ls
to / When the ratio of 16 to l was under
discussion Representative Gorham OF
Massachusetts said: II warn the House
not to bring about. by nasty legislation,
the same state of things in relation to sill
yer which has heretofore existed respecting
gold II the law makes gold too cheap. the
v-flf
shall soon have the same cry about the
want of silver coin which there was now
finder the new ratio Gresham's law came
into play again and silver disappeared from
siIver viii drive out gold or gold win drive
out silver just as the legal ratio overvalues
one metal or the other. we III " n
NAV be stated thus: If two metals are
legal tender, are coined at fixed ratio and
both are entitled to free coinage. if there
Is any variation in value. only the cheaper
metal will circulate II. V. Poor, author
of Money and Its Laws" published in
1877 saws: "Should silver well as tgoid
of each. and should ii fall in value. the
effect would be to drive the more vaiua ole
the legal tender notes drove out metallic
money, leaving the country with but one
standard, and that. as far as regards other
nations, debased one" In short. metallic
currency is subject to the operation of
Gresham's law the same as other currency.
Mr. Cheadless assertion that the Consti-
tuition makes both gold and silver legal
standard money" is. to speak mildly, very
inexact. The Constitution simply says
that Congress shall have power to coin
money" and that mo State shall make
anything but gold and SILVER coin a tender
in payment of debts The Constitution
wisely left Congress to fix the ratio between
the metals and the standard value of coins.
and it Is the duty Of Congress to see that
that is done in such a way that one metal
shall not drive out the other.
Mr.. Cheadies amusing suggestions in re-
gard To the effect of free silver on
our foreign trade and his fiapdoodle about
araforcir1c the fsousfit l1finn@ now as IL WIS