The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1896-08-19

consider the language of two gentlemen
whose long public service and high standing
in the party TO which they belong will pro-
tect them from adverse criticism Ivy our op-
ponents In 1886 Senator John Sherman
said: "The contraction Of the currency is n
far more distressing operation than the Sem
ators suppose. Our own and other nations
have gone through that operation before. 1t
is not possible TO take that voyage without
sorest distress To every person, except q
capitalist out of debt or q salaried officer or
anauitant, it is q period Of loss, danger, lassi
tude of trade, fall of wages, suspension OF
enterprise, bankruptcy and disaster. 1t
means ruin 10 all dealers whose debts are
twice their business capital, though one
third les, than their actual property. 1t
means the fall of all agricultural production
without any great reduction of taxes. What
prudent man would dare to build house, n
railroad, factory or barn with this certain
fact before him."
When Mr.. Sherman describes contraction
OF the currency as disastrous to Nil the peo-
pie except the capitalist, out of debt, and
those who stand in q position similar to him,
he is stating truth which must be apparent
to every person who will give the matter
careful consideration. Mr.. Sherman was at
that time speaking of the contraction of the
contraction of the volume of paper currency,
but the principle which he set forth applies if
there is contraction of the volume Of the
standard money o. the world.
/ Nj. Blaine ,;iie.1ssed the same principle in
conn cction with the demoneiis:c:!.:cn Of silver.
Speaking in the House of Representatives on
February 7, 1873, he said: 81 believe the
struggle now going on in this country and
other countries for q single gold standard,
would, if successful; produce widespread dis.
aster in and throughout the commercial
world. The destruction Of silver as money
and the establishing of gold as the sole unit
of value must have q ruinous effect on oil
forms Of property, except those invested
which yield fixed return in money. These
would be enormously enhanced in value
and would gain disproportionate and unfair
advantage over every other species of prop
erty."
Is it strange that the "holders of invest
ments which yielded fixed return in mon
ey" can regard the demonetization Of silver
with complacence? We may not expect the
holders of other forms of property to protest
against giving to money "disproportionate
and unfair advantage over every other spe-
es of property" If the relatively few
whose wealth consists largely in fixed invest
ments have right to use the ballot to en-
hance the value of their investments have
not the rest of the people the right to use
the ballot to protect themselves from the dis
astrous consequence of rising Standard?
The well being of the nation-aye, Of civili-
zation itself-depends upon the prosperity
of the masses. What shall that profita man
to have dollar which grows more valuable
every day if such dollar lowers the stand
ard of civilization and brings distress to the
people? What shall it profit us if in trying
to raise our credit by increasing the pur-
chase power of our dollar we destroy our
ability to pay the debts already con racted
by lowering the purchasing power of the
products with which those debts must be
paid? If it is asserted, as it constantly is
asserted, that the gold standard will enable
us to borrow more money from abroad, re-
ply that the restoration of bimetalism will
restore the parity between money and prop
erty and thus permit an era of prosperity
which will enable the American people to
become loaners of money instead of perpetual
borrowers. Even if we desire to borrow
how long can we continue borrowing under
o system which by lowering the value OF
property weakens the foundation upon which
credit rests:
| If the holders of fixed Investments will
not listen to arguments based upon justice
and equity | appeal to them to consider the
interests of posterity. We don't live for our
selves alone; our labor, our self-denial and
our anxious care, all these are for those who
are to come after us as much as for ourselves,
but we cannot protect our condition beyond
the period of our lives. Let those who are
now reaping advantage from vicious tinan-
cial syslem remember that in the years to
come their own children and their childrens
children may, through the operation of this
system. be made to pay tribute to the descend
ants of those who are wronged to-day.
If there are two kinds of money the op-
| ion must rest either with the debtor or with
the creditor. Assuming that their rights
are equal we must look at the interests of
society in general in order to determine
which side the option should be given. I'm
der the bmetallic system gold and silver are
linked together by law at n fixed ratio and
any person or persons owing any qunantity
of either metal can have the same converted
into full legal tender money. If the credi-
tor has the right to choose the metal in which
payment shall be made it is reasonable to
suppose that he will require the debtor to
pay in the dearer metal if there is any per-
ce ptible difference between the bullion val
ues of the metals. This new demand Great
ed for the dearer metal will make that metal
dearer still, while the decreased demand for
the cheaper metal will make that metal
cheaper still. If, on the other hand, the
debtor exercises the option suppose that he
will pay in the cheper metal if one metal IS
perceptibly cheaper than the other. But
the demand thus created for the cheaper
metal will raise specie, while the lessened
demand for the dearer metal will lower spe-
Gle. In other words when the creditor has
the option the metals are drawn apart, where
as when the debtor has the option the metals
are held together approximately at the ratio
fixed by law; provided the demand Great
ed is sufficient to absorb all Of both metals
presented at the mint. Society is therefore
| interested in having the option exercised ny
the debtor. Indeed there can be no such
| thlng rs real DiIlelaiiish uniess Iie oP'ioh 10
exercised by the debtor.
We are told that any attempt on the part of
the government at this time TO redeem its
obligations in silver would put the premi-
um on gold, but why should it, The bank
of France exercise the right to redeem all
bank paper in eithsr gold or silver and
France maintains the parity between gold
and siyler ut the ratio of l5 IL to l and
retains in circulation more silver per capi-
ta than we do in the United States.
| The government must either exercise the