The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-08-13


bimetallists who are honest in endeav-
oring to secure it at any other ratio
than Is to 1. We are opposed to any
change of ratios for two reasons. First,
because a change would produce great
injustice. second. because q change IN
the ratio is not necessary a change
will produce injury because If erected
IN the manner usually suggested II
would result in an enormous contrac-
ton in the volume OF standard money.
If, for instance it was decided by inter-
national agreement to raise it through
out to 81 to the change might pc eI-
fected in several ways. The silver dol
lar could be doubled in size or the pres
ent gold dollar could be reduced one
half in weight, or the change could be
made by increasing the silver dollar and
decreasing the size OF the gold dollar
till the silver dollar would weigh 81
times as much as the gold dollar. IT
this change were made it would neceS-
state the recoinage of three billions of
silver and and two billions of gold dol
lars There would be an immediate
loss of two billions of dollars to individ-
uals or to the government but this
would be the least of the injury. A
shrinkage OF ene-half of the silver
money in the world would mean
Shrinkage of One-half in the total volume
of metallic money. This contraction In
the value of the dollar would virtually
increase the debts of the world billions
of dollars and decrease still more the
value of the property OF the world as
measured by dollars Besides the i'm
mediate result of such a change in the
ratio it would permanently decrease the
annual addition to the worlds supply
OF money because the annual silver
product when coined into dollars twice
as large would make only half as many
dollars
The people of the United States
would be injured by change in the
ratio not because they produce silver
but because they own property and owe
debts and they cannot afford to thus
n 20 l1a n n
increase the burden of their debts
In 1873 Mr.. Carlisle said: Mankind
will be fortunate indeed If the annual
production of gold and silver coin
should keep pace with the annual in
crease of population and industry 1
repeat this assertion. All of the gold
| and silver annually available for coin
age when converted into coin at the
present ratio will not in my Judgment
supply our monetary needs.
WHAT SHERMAN SAID.
In supporting the act of 1880 known
as the Sherman act Senator Sherman
on June 5, that year said: Under the
law of February, 1873, the purchase of
81. 900 ,009 worth of silver bulliona month
has by coinage produced annually an
average of nearly So 600 600 per month
for a period of IL years. If our present
currency is estimated at 81 ,400, 900, 600
and our population is increasing at the
ratio of per cent per annum it will
! require $43, 0G0, 600 increased circulation
each year to keep pace with the pOpu-
latiOn but as the increase of population
IS accompanied by a greater ratio of
wealth 1t was thought that immediate
increase of circulation might be obtain
ed by large purchases of silver bullion
to an amount sufficient to make good
the retirement of bank notes and keep
pace with the population. Assuming
that $54, COO, GOO q year additional cur
rency is needed upon this basis, that
| amount is provided for in this bin by
the issue of currency notes for bullion
and as the United States is only one
| nation among many our opponents
| make no adequate provisions for the
! increasing money needs Of the world.
In the second place a change in the
ratio is not necessary Hostile Ieg1Sla-
ton has decreased the demand for sill
Yer and lowered its price when neasur-
ed by gold, while this same hostile leg
islation by increasing the demand for
gold has raised the value Of gold We
are told that the restoration of bimet-
a1lism would be a hardship upon those
who have entered upon contracts pay
/ able in gold coin but this is a mistake.
It will be easier to obtain the gold with
/ which to meet gold contracts when
most of the people can use silver than
/ it is now when everyone is trying to Sc
7 cure gold Such contracts are objected
to on the ground that they are against
public policy. No one questions the
! right of legislatures to fix the rate of
| interest which can be collected by law
! yet there is far more reason in pre-
venting private individuals from set
| ting aside a legal tender law. The
money which by law is made legal
! tender must in the course of law be
accepted as legal tender. Why should
! the Tooth man be permitted to exempt
himself from the general rule Special
contracts have tendency to increase
! the demand for particular kind of
money and thus force it to a premium
Special contracts have a tendency
to increase the demand for a particu-
lar kind of money, and thus force it to
a premium Have not the people
right to say that a nparatively few
| individuals shall not be permitted to
deEange the financial system Of the
nation in order to collect a premium in
case they succeed in forcing one kind
of money to & premium?
There is another argument to which
I ask your attention. Some of the
more jealous opponents Of free coin
age point to the fact that - months
must elapSe between. the election and
the first regular session of congress and
assert That during that time in case
people declare themselves III favor Of
free coinage, all loans will be with
drawn and all mortgages foreclosed. If
these are merely prophecies INDUCED
in by those who have forgotten the
provisions of the constitution, it will be
sufficient to remind them that the pres
fdent is empowered to convene congress
in extraordinary session whenever the
public good requires such action.
IF In November the people by their
ballots declare themselves in favor of
the immediate restoration of bimeta1-
lisn, the system can be inaugurated
within a. few months. If, however, the
assertion that loans viii be withdrawn
and mortgages foreeIosed is made to
prevent such political action as the
people may believe to be necessary for
the preservation of their rights, then a
new and vital issue is raised.
Whenever it is necessary for the
people as a whole to obtain consent
from the owners of money and the
changers of money before, they can
legislate upon financial questions, we
shall have passed from a Democracy to
a plutocracy. But that time has not
yet arrived Threats and intimidation
will be of no avail.
1.-THE people who in 1776 Reflected the