The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1895-10-29
BANKER.
He Talked Bi-Metallism to His Fellow
Bankers Assembled in Atlanta in
National Convention Few Days
AgO--Replies to Mr.. Edward
A6kinso0


Atkinson.
MI. W. P. st. John is president o.
one of the largest, Oldest and richest
National BANKS in New York. He has
studied the financial question closer
than any other banker IN the country
and never fails to condemn the gold
standard and defend free coinage OF
silver. He is just as ardent in his ad'
vocacv of bi- metallism as the most en-
thusiastic Populist in the country.
Tne National Bankers Association met
in Atlanta last week. Hon. Edward
Atkinson, of Boston, made q speech
that was neither for one plan nor the
other. Mr.. ST. John replied. In an
swering Atkinson he was at a disad
vantage as Atkinson didn't make g
clear sound money" argument, but
ST.. John gets in some powerful hcks
for silver. He said:
According to Mr.. Atkinson, cur
rent antagonisms as to money are due
GO the existence of two distinctly diff
ferent schools of finance. He defines
one school al that which insists that
law can create money He does not
designate the other. The school which
inculcates that law is the essence of
money is called the historic school.
1t delves into the worlds experience
in search of precedent. It's attitude is
that of history, on the defensive. The
other school might be called the spec
ulative, or the school of p~lausibility. It
is aggressive with the vigor of it's
youth, and boyishly denounces as a
fool or knave any one whose research
condemns it's theories. l take my
tuition from the historic school.
The school on plausibilty contents
itself with saying that five double
eagles hammered smooth are still 800,
while q silver dollar hammered smooth
is worth but so cents. Thus gold abides
the hammer test, silver does not abide
that test. Hence, gold alone is good
money. We answer that the crucihle
or hammer test is the safest test of
money; but the whole truth alone
contents us. Five double eagles con.
tain 2, $50 grains of gold nine tenths
fine. By law, 2, $50 grains of gold
nine tenths fine will become 800 for
any owner who deposits it at the mint.
We propose that our law shall bestoW
upon silver like wise this right of tran
sition into money. Then, and for the
like reason, ALP 5 grains of silver nine
tenths fine will be a dollar similarly,
in the silver dollar undefaced or ham
mered smooth.
Mr.. Atkinson demands the repeal
of all laws of legal tender. How then,
we ask, would contracts be enforced
in lava Damages in civil suits, even
those in q u so foreign as the
breach Of promise of marriage, are all
assessed in money. Without h5 author
ity of the law of legal tender the
courts would be puzzled to determine
what is money. The historic school
finds a precedent to condemn this
scheme, an instance of actual test
and failuce Holland, by act of Sep
TENDER, 1894, auth 7rized the coinage
of gold pieces on which the govern
ment stamp was made a mere certif
cate of weight ana fnenees, Toe gold
smiths accepted them, and coin col
lectors did; but they would not circu
late as money. A few were coined in
1851 and the last was struck in 1853.
He questions the justice of grant
ing the debtor the choice of coins with
which to pay his debts. We answer
that the creditor, if allowed, would
choose the scarcer, because the more
valuable, He would more and more
insist upon the scarce, according as
his refusal of the abundant would
more and more reduce the value of the
abundant. The debtor, by choosing
the abundant, bestows value upon the
abundant by use ard takes value from
the scare to that extent by depriving
the scarce of use. To the extent that
use enhances the value of the abund
ant, want Of use reduces the value of
the scarce.
Transactions large and numerous
tend thus to attract the two to a parity
of value. Transactions many and
large and fro quent enough will thus
establish and maintain the coming
parity between the scarce and the
abundant when both metals have I'm.
limited Access into money. For this
opinion the historic school SETS forth
a precedent which authorizes the in
ably conditioned may always be
achieved. Our chief precedent is an
experience of France, plausibility not
Withstanding and nevertheless.
Il am aware that the true exper-
ienc9 of France is questioned. I know
that a work entitled The History of
Currency by one w. A. Shaw, is
commended plausibility, and that this
work pretends to refute our cOnclu
sions as to France. In The Bankers
Magazine for this present month OF
OctobeTs may be found by response at
length to Mr.. Shaw.
"Oa pages 281 and onward of The
Bankers Magazine of January, 1895,
as on pages lab and on The Congress,
ional Record of January %, 1895, may
be found historic statements and nv
deductions upon which l would ex-
pect the following, among the achieve
ments OF reopening the minis of the
United Jtates to silver: 1. The die.
tatlon OF the worlds market price OF
silver by the United States mints .
The parity of market and our co,nino
value for silver established and moin5
l $1,000 . ~ -----