The herald., 1896-06-29
GOLD AND PRICES
oY cnAs. q. WEIGH

"Silver and Values" by Abbot Kinney,
who seems to attempt to carry the ar
guments against silver to further ex-
tremes than any one I have heretofore
read. From my study Of the question
find myself opposed to a1most every
thing he says. AS q criticism of, and
reply to. his communication, and also
to partially indicate how his arguments
against silver can be turned with equal
If not greater force against gold. offer
the accompanying article:
GOLD AND PRICES
IAN idea possesses many people that
q" low cost for things means prosper
ity." "It runs through the whole" free
trade doctrine and is now prominent
in the financial question" This idea
that a" low cost of things Is governed
by supply and demand" provided the
supply is not restricted by trusts and
combines. Price is also governed by
money"-the amount in circulation.
Money not only expresses value" but
Is one form of value. Promises, as in
the credit of the government" does not
control the expressed value" When
a money standard is" raised "all things"
fall Gin expressed value without in any
case really less valuable than they
| were before"
|
monetization of one-half of the stand
ard money of the world, resulting in a
universal depression of prices. The
| worlds stock Of silver and gold Is about
$3.50. 100000. A little over one-half Of
that is silver. Silver was demonetized
suasions of the moneyed aristocracy.
The result of this is to give
gold. the other half. double work, double
efficiency; and, as an inevitable conse-
quence double it's value with a con-
comitant lowering Of general prices.
Value of crops is affected by sea-
sons. A good season means plenty and
low value; a bad season. scarcity and
| q high value" Value Of money Is af-
fected by law. Good law means plenty
and a low money value; bad law. scar
| city and a high money value.
Peace is" not 1.-The great cheapener;"
It is a cheapener. WAR Isl not the
great raiser of values" 1t Is a raiser
of values The relative scarcity or
abundance of standard money in cir
culation is large factor in the deter
mination of values.
"The civilized and most productive
part of the world" has had a period of
rest from actual warfare, but during
that time the greatest preparations for
war known to history have been steadily
progressing. During this time improve
transportation have taken place" but ut
now largely under the control Of greed
and averice, represented by the great
| trusts. in every department of human
| industry. Thus there are more things.
greater plenty than ever before and
| lower prices" for those who have the
money with which to purchase. "This
cheapness is of things. 1t means better
| pay"-that is, more commodity for a
| given sum-for the coupon clipper and
other social and political parasites.
Prima facie. 1t Is low price for the La
borer also, but it really means less to
him, because the opportunities for labor
constantly lessen under rising stand
ard of value. The lowering of prices by
raising 1.-The standard Of the measure
Of value has been tempting field" for
the financial king ana the moneyed dcs-
pot. Within the last thirty years one
| country after another has followed the
advice of these charlatans. Silver has
been dethroned from its time-honored
| place as primary money, degraded TO
mere token money-the worlds stock
| Of standard money cut down one-haf.
Some Of the results Of this systematic
| contraction are known. A generation
or more ago. with twice the stock of re-
demption money in the world. Million
| aires were almost unknown. Today,
according to the statistics collected by
| M. de Variguy. there are 700 people on
the earth worth over 5000. 900 apiece
aggregating little less than the worlds
stock of gold.
| It might be interesting to note in this
| connection that the national debt alone
| of thirty-seven nations of the EARTH less
sinking fund, is $27, 1896, 1883, nearly
| eight times the worlds stock of gold.
THIS does not include state, county.
| municipal, corporate or individual in
debtedness nor the public Indebtedness
of the minor political subdivisions Of
foreign countries-which. taken all to-
1. IsDw,- ,r,,-At -
the above figure If 1t does not more than
| double it. The worlds stock of gold is
eaten up every four or five years to pay
| interest on national debts alone. Yet
| there are people who seriously argue
| that there is a sufficiency Of gold alone
| in the world for use as primary money.
| 1.-THE worlds records" do not "show
| that the metal of the measure of value
| was always gold" nor has the unit of
the money of account always been gold"
! There are records in civilized countries
| of another measure Of value. The United
! States is part Of the civilized world,
and big part of it. From 1892 to 1873
| silver was the unit of value in the United
| States. The early silver dollars coined
by the United States had the words ''one
unit" inscribed upon them. The amount
| of pure silver in the silver dollar has
| always remained the same, while the
amount of pure gold in the gold dollar
has been changed at least once.
| If the silver cannot be "or ever has
| been an ultimate measure of value" +"
| then gold cannot be or ever has been.
! either Barring the difference in weight
| for a given value. every argument used
| to destroy the use of silver as an ulti-
mate measure of value applies with
equal force to gold. "Silver has been
valued at one time as 4 to l, at another
10 to l, again 151a to l, or 20 to /, or go to
l." If the unit of value upon which it
is said to be measured is the gold unit,
| what becomes of the demonstration (?)
that silver thereby is not, or ever has
| been. standard measure of value when
we assert with equal propriety) that
silver is the unit, and say: Gold has
been valued at one time at .25 to /, at
another 10 to l, again O64 to /. or .05
| to l, or .03125 to 1? 1.-The unit of value
upon which it is measured is'' the silver
unit. This is demonstration that
gold is not the standard measure of
value" "The unit upon which it is
measured l, and that one" is silver
THE unit remains the same while" gold
"fuctuates about it."
Be it remembered that a medium of
exchange is not for the exclusive bene-
fit of international traders. Nor is
there any good reason why home com
merce should be forced to accept the
narrow measure of value which is said
to be entirely satisfactory to interna-
tional business. The international
trade of the whole world does not equal