The Princeton union., 1895-05-23
A CURRENCY DEBATE
LEADERS OF OPPOSING VIEWS
MEET ON THE SAME PLATFORM.
D. Lawrence LnuEhlin, Professor q,
Political Economy In the Chicu:.o
University, and William Hnrvcy
the Author Of Coin,


htical economy in the Chicago uni.
versity, and William NJ. Harvey, au-
thor of Coins Financial School,"
The question was, in effect, 'That the
United States should open it's mints to
of l6 to without regard to the action
OF any other nation Mr.. Harvey
spoke for an hour and n half in the
affirmative, Mr.. Laughlin followed for
an hour and a half and Mr.. Harvey
closed with Il half-hour rejoinder.
MIR. Harvey, in opening for the ar-
firmative, said: 1.-The first reason
why l am in favor of independent ac-
ton by this country is that we should
not be subjected to the influences iof
the govern -ents Of Europe. When
our forefathers declared their political
independence from Europe it was to
free themselves from the class legisla-
tion of those governments, justly
termed plutocracies. Our friends, the
monometallists, mostly say. We admit
bimetallism,' but claim that we must
nave the same money as other pow
ers. The biggest business we ever
carried on with the balance Of the
world was when they had gold and
silver as money and we had neither.
We do not settle our balances with
Europe in coin except on it's CONNER
cial value and weight. Our coinage
has nothing to do with it. Primarily
balances Of trade are settled with
trade. The merchants can settle their
balances in gold for so much 4 penny
weight, as measured in the money Of
their country or our country, or in so
much silver or in so much copper or
in so much of any other merchandise
that may be agreed upon. There is no
such thing as an international money.
The mints are open to the free coinage
of gold. and this was true of silver
also until 1873. Gold has an unlimited
demand, but silver has a limited de-
mand. Silver is now commodity to
be measured in gold. 1t is an object
to be gored by bulls and kicked by
bears. 1t has been deprived of that
unlimited demand it enjoyed prior to
1873. We would restore it to that I'M
limited demand. Restoring it to the
unlimited demand would cause the
value of silver to rise as compared
with gold. This is what we want.
Silver is the peoples money. 1t was
so regarded by our forefathers. Gold
was and is the money of the rich. We
would make both legal tender in the
payment Of all debts, and the elastici-
ty Of our currency would be main-
tanned.
He said that Rothschilds were our
financial managers. We are in the
hands of the pawnbrokers of Europe
This is what gold standard means, q
money that is easily cornered. With
free silver in competition with gold
there could be no cornering Of money
metal.
Lnughlin Replies.
Prof. Laughlin, replying for the neg
ative, said:
There is no need of an amount Of
money equal to all goods in existence
The measure Of value is that in which
prices are stated and debts are paid
provided the measure of value is also
made legal tender in any country.
The absurdity of supposing that much
money is required in order to have
something with which to measure
goods is as absurd as to suppose that
community must have hearses in
number equal to the population. For
the exchange of goods, therefore,
money is not needed in proportion to
the transactions. This function is
that of the medium of exchange.
From 80 to 95 per cent Of the trans
actions are performed by this ma,
chinery without the use of money.
Prices since 1873 have not fallen be-,
cause of the lack of money. Silver has
fallen about so per cent as compared
with very modest fall in the price
Of commodities. Silver does not have
the same purchasing price in 1895 as
1t had in 1873, hence free coinage can
not be urged as a just measure Of
paying debts. More so-called redemp-
ton money by the amount Of $1,O92,-
100000 is in existence to-day as COM
pared with 1873, and yet prices have
fallen about one-half in value, al
though we have purchased about
$6OO,OOO,OOO worth. 1t is perfectly evil
dent that there is no use in the United
States acting alone to bolster up the
price of silver when we have failed
even in concert with the Latin union.
Free coinage of silver at 16 to 1 means
the single silver standard or silver
monometallism. Free coinage of sill
yer would not increase the quantity
OF money. Since gold must inevitably
be driven out the free coinage OF sill
yer would result in a dimunition of
VIZ I.'t'iIiIy VI AlOllcy. lO auOpC Tree
coinage at Is to 1 when the market
price is about "a to 1 would mean the
instant retirement from circulation Of
nearly $500, 100000 of gold circulation.
''As free coinage of silver would in
evitably result in a rise of prices, so it
would Immediately result in fall Of
wages. Are we willing to sacrifice the
interests of the laboring class to the
demands of certain owners of silver
mines who are trying to hoodwink the
people with the cry Of more money?
1t is usually supposed that free coin
age of silver is in the interest of the
debtors. think it will be found quite
the contrary. Not only will it prevent
person in distress from being able
to borrow money when he needs it.
but it will create conditions which will
make it impossible for the debtors to
meet their Indebtedness But greater
than all objections is that of public
dishonor and repudiation.. Free coin.
age would mean that every depositor
In savings bank, every investor in
loan association, every holder of a life
insurance, every recipient Of pension
would have their dues reduced one
I101