The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-07-17
THE FREE-COINAGE CATECHISM.
Reasons Why Gold IL Accepted by All
Nations.
New York Post.


Q. What is money? A. Any common
medium of exchange which is accepted as
payment in itself
9. What is representative money? A.
Any common medium OF exchange which
promises 10 pay money.
Q. What is meant by primary money? A
This is a new phrase introduced 10 confuse
people by Suggesting that there is also
secondary money.
Q. What is money of final redemption? A.
This is another late addition 10 the Ameri-
can language implying that there are sew
eral different kinds of money. There il
only one kind of money i'm this country.
There are several different kinds OF repre-
sentative money.
Q. Give examples of each. A. Gold coin
is money. Everything else that circulates.
whether of metal or OF paper. Is represent
tative money.
Q. Is silver coin representative money!
A. 1t is.
promise to redeem it's silver coins? A. by
the act Of Congress of June g. 1879. IL prom
ises to redeem all coins smaller than one
dollar when presented I'm sums not less than
$40. BY the act of Feb. 2S. ISIS, the govern
ment promises TO receive silver dollars at
par in all payments 10 itself. By the act OF
July 10, 1890. il declares ii to be the policy
of the government to keep the two metals
at parity with each other BY two diff
ferent acts the Secretary OF the Treasury
is authorized TO purchase coin and TO issue
the obligations OF the United States there
for.
Q. What is the indispensable quality and
first requisite OF money? A.rThat II should
be universally acceptable.
@. Is there any kind of money universally
acceptable but gold? A. There is not
-. Would not silver be equally accept
able II il were equally legal tender? A.
Silver dollars are legal tender. Give any
man the cption of taking one hundred OF
these pieces or ten gold pieces OF $40 each
and he will choose the latter. Therefore
they are not equally acceptable.
Q. Is the difference in weight the only
reason why gold is more acceptable than
silver? A. That is not the only reason
now, but ii was the main. IL not the only.
reason when civilized nations made their
choice between the two.
Q. What reasons exist now that did not
exist then? A A variation OF 80 per cent.
has taken place in the value Of the two
metals. In addition to being sixteen times
heavy. silver has lost one-half OF its
value during the interval.
q. Are there any other reasons why
silver Is not equally acceptable with gold?
A. Yes: although limited amount OF sil-
YER land also of nickel and copper Is used
as a medium of exchange. IL is now a COM
modify In the markets OF the world sub
ject to the same fluctuations as other
commodities People do not like TO use a
fuctuating commodity as money. and will
not if they can get anything better.
O. Have you mentioned all the reasons
why gold is acceptable as money and sill
yer IS not? A. The most decisive reason
is that the civilized world has adjusted it,
self the gold standard during long
period OF time. Ali busiesns is bottomed
on il. Ii Is an accomplished fact, coexten-
sive with the commercial world To change
10 announcer SIdnddTu WOulQ De literally
turning the commercial world upside down.
Q. Can such a change be produced? A.
Absolutely impossible. In a conceivable
case one country may turn itself upside
down, but that feat would not make gold
less acceptable or silver more so. even In
that country. Acceptableness II a state OF
the human mind which laws cannot change.
q. Is the preference for gold UNIVERSAL,
A. IL is universal among civilized men,
Even the silver advocates in the United
States prefer gold i'm their business AFFAIRS
that is. everywhere except on the stump.
Senator Stewart, OF Nevada, makes his
mortgages payable in gold When he was
reproved for this bad example ne said that
he merely followed the universal custom on
the Pacific coast where he lives. So we
have his authority for the statement that
in the section OF the Union where the de-
mand for silver is most yociferous every
body prefers gold in his private business.
Q. Can you give any other examples? A.
The Territory Of Arizona brought q bill
before Congress two or three years ago
asking authority TO issue bonds payable
specifically in gold. on the ground that the
money would be borrowed at a consider
ably lower rate OF interest than III they
were payable in dollars without specifying
the kind OF dollars. The State of Utah n
negotiating a specific gold loan now for the
same roason. Yet both Arizona and Utah
are politically for silver
@. Wrat do these acts signify? A. Two
things: First. that gold Is preferable 10
silver I'm the general estimation OF man.
kind: second. that payment IN gold is an
advantage 10 borrowers