The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-05-21

IL is well known personally 10 every
gentleman in this audience who was old
enough to know what was TRANSPORTING in
1873 that there was not a dollar of silver
In clrcu,atlon AT tnat date. Inc assumption
metrically opposed to the historical and
official fact. The only metallic or redemp-
ton money in use here at that time Was
gold, which amounted to only 1885,. 100000.
including what the government was using.
whereas We now have about S625. o00oc0 in
silver. besides about s77OOo,OCo in subsidiary
silver coin. If, therefore. prices have fallen
since 1873 the decline has taken PLACE in
metallic money has been increased until IL
now AMOUNTS TO more than N seven nj times as
quently the alleged decline in prices must
be attributed to some other cause than
the characterization of silver. These facts
prove not only that the decentralization OF
ton money in this country. but they prove
also that the fundamental proposition of
and that prices are not fixed or regulated
by the amount of redemption money alone,
for. If so, prices should have increased
Substantially, the whole argument for
free coinage, so far as it is addressed to
upon this fiims S Foundation upon an erron-
eous principle and a false assumption OF
facts That the amount of money in circu-
lation. or available for circulation. has more
or less influence upon the prices of COM
modities is not disputed by anybody. but
II Is not the amount or metallic or reuemp-
ton money alone that exerts this influence:
If all other conditions remain the same, if
the cost of production. transportation,
and the relations between supply
financial exchanges are stable. an increase
or decrease of the currency in circulation,
or avalta6le for MIL to cer
the case may be; but by the terms money
and currency" in this connection l mean
every element that enters into and is ut-
lied in the complicated processes of buying
and selling in the markets for products
ana in the mercantile exchanges whether
IT be gold, silver, bank notes. United states
notes, checks, bills, or other forms of credit,
written or unwritten-
VALUE OF CONFIDENCE.
Credit or confidence is an element of far
greater Importance in fixing uphodng
prices than the mere amount of actual
money in use, available for use; and in
fact, about 50 per cent of the entire bust
ness of the country is transacted without
the actual use of metallic money, or its
paper representatives; and as to metallic
money itself, whether in gold silver. it
is not used to the extent Of more than l
per cent. in business transactions In
view of these facts which are as well estab-
liShed as any other facts relating to our
commercial and financial operations, how
absurd il is to contend that prices are fixed
by the amount of that particular kind of
that one hundredth part of the whole. In
the hroadest and most comprehensive sense
the business capacity and personal integ-
: rity OF each individual constitute a part
OF the effective currency of the community
in which he lives because these character
istcs enable him TO become purchaser
of the commodities it has to sell, although
at the time, he may have neither money nor
property Credit is a purchasing power.
in the markets with the men who possess
actual money, and contributes as much as
they to the maintenance of prices. To as
Sert that prices are fixed by the amount of
redemption money alone equivalent to
the assertion that If all the silver dollars,
subsidiary silver coin, silver certificates,
United States notes, treasury notes. national
bank notes, and every other form of credit
were destroyed, leaving nothing but the gold,
prices would remain the same they now
area proposition so preposterous upon its
face that presume no man with any regard
for his reputation would venture TO make
ii except in disguised form.
The great majority of our people render
service for wages in one form or another
and they are compelled to purchase in the
markets everything they eat, drink or wear,
and, in most cases. they are compelled TO
pay rent for the use of nome for them
selves and their families. Like the farmers,
they have no silver bullion to carry to the
minis to be coined at the public expense;
they have nothing to dispose of but their
labor and their skill, and. as a general rule.
all, or substantially all, the wages they
receive must be used in procuring commod-
ties for the personal use of themselves and
those dependent upon them They cannot
eat, drink or wear the money paid to them
for their labor. and it is valuable to them
necessares and comforts OF life; and there
never was time in the history of the world
when the workingmans dollar would buy
as much of the necessaries and comforts
Of life as ii will buy now. and there never
was time in the history of the world
when the workingman received more good
dollars for the same amount OF labor than
he receives now in this country.
HOW LABOR WOULD SUFFER.
Any policy which reduces the value of
this dollar the day it is earned or on the
day it is expended, by diminishing its pur-
chasing power in the markets. has precisely
the same effect upon the holder if the
amount paid for his labor were reduced.
If. therefore. the favorite argument of the
advocates OF free coinage-that the free
coinage of silver at the ratio of is to l.
would double the prices of all products-is
correct, the wages of the laboring man
one-half of what they purchase now. This
would undoubtedly be the case unless wages
should also be doubled, which according
TO the uniform experiences of the past is a
most improbable thing. For more than
quarter of century the working people of
ana persistently, through their labor or
CARNATIONS and otherwise. to increase their
to live decently and comfortably by expend-
ing their earnings for commodities al their
present prices. and how long do you think
they would have to struggle in the future
to raise their wages 10 a point which would
enable them to purchase the same articles
when their prices have been doubled? No
man in this audience will live to see such
a result accomplished and the laboring man
who supports the free coinage OF depreci-
ated silver dollars must be content to live
and support his family upon what depreci-
ated silver dollars will buy. Ny position
upon this subject is that when the laborer
receives a dollar on account of his wages
he has a right to be assured that IL will pur-
chase as much in the market as any other
mans dollar, or If he desires to Law il up
for in a time OF need he has right TO
be assured that III will be worth as much
when he wants to spend il as il was worth
on the day he earned it,
But, gentlemen, thes free and unlimited
coinage of silver would not secure for the
use of the people at any time any addi-
ton TO their stock of actual money. but
would simply give them less valuable
money than they have now To call a
10-cent piece a dollar and declare it to be
the standard of value would add nothing
whatever to its purchasing power; IL would
still require ten of them to purchase what
a real dollar will purchase now, and prices
of commodities expressed in dollars would
appear 10 have been increased ten-fold.
when, in fact, nothing would have hap
pened except the debasement of the dollar
An actual increase in prices resulting from
in circulation is quite a different thing
from a nominal increase of prices result
ing from the of a deprecated cur
rency, and no argument upon the subject
of prices can be sound that does not recog-
nize the distinction between them. The
proposition of our free coinage friends is
to double prices nominally, but at the
TINA n hon In,