Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1896-09-03
A LESSON FROM HISTORY.

II Is a curious fact, that In every finan-
ciai panic of the past there has always
arisen political party in favor of debas-
ing the coin, of some form of cheap money,
or Reputation more or less disguised. II is
also worthy of note that prosperity has
always been re-estabiishcd by the perma-
nent defeat of the base.money party, and
not by yielding to their schemes.
The false money panic in England in
1885, presents many points of similarity
to the condition of the United States to-
day. Macaulay says of that period:
''Fhe silver coin. which was then the
standard money Of the realm, was in
state ut which the boldcst and most en-
frightened statesman stood against"
Up to that time coinnge had been con-
Quoted by primitive methods. The coins
being shaped and stamped by the ham4
mer; and being rudely made, they had
been easy to clip and pare down without
attracting attention. This fraud had
grown to be so common. and had been
carried on to such an extent, that by 1896
the nation found itself for all practical
purposes without any true measure of
value. A half-crown or shilling of full
weight was a curiosity The bad effects
tfoutht3 itoii thto Ethtt VI tht tuIIthts
can readily be imagined. All pecuniary
transactions were thrown into confusion.
The great instrument of exchange being
deranged, 'all trade, all industry were
smitten as with a palsy" at may well be
doubted" says Macaulay, whether all
the misery which had been inflicted on the
English nation in a quarter of a cen
tury by bad kings, bad ministers, bad par
liaments and bad judges, was equal to the
misery caused in single year by bad
crowns and bad shillings.'
The government sought to remedy the
evil by improving the coinage. The new
pieces were no longer struck Ivy hand, but
were turned out by machinery. Their
shape being exactly circular and the
edges inscribed, the clipping was no longer
possible. But the remedy did not work.
The old hammered pieces and the new
milled coins being current together, and
alike receivable for NIL public and private
dues, it was found that the perfect coin
disappeared from circulation. Nobody
! cared to settle debt with II ounces of
silver when he could do it with 8. In
other words, good and bad money being
on the same footing, the good money was
driven out and boarded and the bad alone
remained in circulation. Ii was soon req
ognizcd that the only effective remedy
would be to retire all the defective money
recon it with full weight, and make the
perfect money alone legal tender.
| II was at this point that the demagogues
arose and demanded that the standard OF
the new coin should he lowered to harmon
ize with the clipped money in circulation
and that the new shillings should contain
only 0 pence instead Of II pence of silver
They succeeded in rallying Il large party
in favor of this doctrine composed OF
thousands who were anxious to settle
their debts Els on the E100. and of Other
thousands of honest. but dul-minded, PEG
pie who really believed in the curiou.
fallacy that the government could make .
pence of silver equal in value to II penc,
of silver by simply stamping and calm,
the D pence of silver a shilling. Just a.
well try to make the British Island biggel
by calling furlong mile.
England was threatened by this pro
position, with an act of wholesale confisca
ton and reputation in favor of the debto
class. The very agitation of such meas
IRE, backed as ii was by large party
was severe shock to every form of credit
mo person who thought it probable
that at day not far distant he would b
able TO pay debt of a pound with tire
crown pieces instead of four was willini
to part with crown piece until that di,
arrived" Besides no person cared to lem
money or sell on credit, or engage in an,
enterprise with the prospect of having +
receive payment in money of debase
value. Thus all trade and enterpris
We're at standstill; the panic was great
aggravated. the sufferings of the peOpl
became intense, and the cry of distres
went up from every corner of the kingdom
The agitators used this very distres
which they themselves had helped to or,
ate and to increase as an argument VIII
the people should adopt their nefariou
scheme, urging that it was the only wa
to restore prosperity.
. IL became the great issue in the election
: then pending. The people were harangue
: at every place of public resort, from til
chocolate house in ST. James street to til
, sanded kitchen of the ale house on til
, village green.''
! In verse and prose the suffering mutt
, tude were melted to rise up and strik
z down the money power. and to tear i
pieces the statesmen who were standin
firm for honest money Tilmults and riot
occurred i'll many places
, Never did more hang in the balance.
! mistake here would have been an rrepar,
BILE calamity. The eyes of the civilze
{ world were turned toward Englan,
Would the demands OF the polite;
t mountebanks prevail? Would the En-
fish people make themselves the laugIin;
stock of the world by trying to enrich IL
t country by calling pence shilling
Would they paralyze commerce by failin
S to adopt coin which would he receive
at its stamped value, not only in Londo
4 but in Amsterdam or Calcutta? Wou
r they commit the bliindcr of driving o,
e good money by issuing money having on
I, an artificial value? And, above all. won
they forever destroy public credit by
: wholesale confscation and reputation
j debts?
$ But the genius of the great ministers
that day, Sir Isaac Newton, Locke an
Montague, was equal to the crisis; vii
heroic tirmness. unparalleled eloquen,
, and inyincblc logic they made the figl
for honest money and Won and the issl
. was carried. that the standard of IL
money should not be altered in finenes
weight or denomination.
The effect was almost instantancou
The cruel agony of many months, viii,
e had produced the crash of many fortune
gave way to period of unbroken pro
perity.
. One stroke of craftsmanship had turn,