The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-10
THE FINANCIAL FORUM |
SILVER AS A CLUB.
Useful I'm Keeping Gold From AD-
precinting, Says Mr. RavefII.


To the Editor of the Globe
The so-called Gresham law had practically
demOnetiZed silver before 1873; that is, silver.
being at a slight premium, had vanished from
circulation. In the discussion of the money
question by the advocates of the single gold
standard it Is everywhere assumed that this
practical decentralization was in its effects
precisely the same as the legal act of 1873.
To see the unsoundness of this view you have
only to consider the fact that the legal act
of 1873 made 1t impossible for silver in its
turn to demonetize gold. In other words
silver, though practically demonetized, stood
ready to resume its work primary money
the moment gold was at par or at a premium.
Gold could not appreciate to any extent as
long as silver was recognized as primary
money.
And this. think, ought to make plain an
other fallacy OF the gold side in this controv-
ersy. 1t Is commended that we had been on
a gold basis from 1884 up to 1873 because silver
was practically demonetized; and because
gold was thus demonetized from 1872 to 1887
we are told this country had during those
years silver monometallism To my mind
nothing could be more faIlacious and mfsIead-
ing. just as misleading to affirm that man
Is un1ped because he goes now on one foot
now on the other. Let both gold and silver
nave Tree coinage and be full legal tender
Is from 1881 10 1879 granted also, what did
hapen that gold, the cheaper money drove
silver out of circulation. We must take for
granted also. what we know to be true that
goid under these circumstances would appre-
cia1e and silver would depreciate, with the
result that in 1873 a silver dollar is worth only
Sl.U5. 1t requires more faith than most men,
pie are possessed of to believe that the com
Inercial ratio OF these two metals would have
remained for centuries so nearly Constant
without the aid of free coinage The law of
supply and demand to which we all appeal
When 1t suits our purpose teaches that silver
tnough exiled from 1881 held the gold money
IN ful survey, ready to return in spite OF
enemies or conspirators. And this single ad-
vantage OF b1metaliism is in my humble opin-
ION worth more to the people, thousand
fold, than all the confessedly good things that
can De said for any single standard
nation that has lost its gold or silver
coin under free coinage of both is no more
under recommendation than it is under one
parry when the other party is out of Office
we have to have money for boarding as
Well as money for circulating and any one
can see the fallacy of saying that boarded sill
yer has no influence on the finances of the
country. The decentralization of silver in 1875
was IN It's essence and tendency precisely
like legal act disqualifying the Republican,
from ever taking office again Such an act
c cuatin on all competition would send Demo-
crauc stock skyward. And what would be
salo OF those who defended such an act by
saying 1t could do no harm as the RepubIi-
cans were out of Office at the time.
Another fallacy, closely related to those al
ready mentioned is that fne-spun theory
ABOUT the impossibility of double Standard
II would be all very well if we had or ever
condd nave, an ideally perfect standard of
money That being out of the question and
locally perfect men being also out of the cues
ilon; what we as nation have to consider
silver give US a more stable standard than
we nave at present. Under free coinage. in
Ioiz, gold could not appreciate very much
without calling to its aid all available silver
from every quarter Of the globe. ANY ten
oency towards appreciation of one would be
neutrahzed by the other and ehearer metal
Just as clocks have compromising penduluIns
mace OF two metals so arranged and related
70 each other that the expansion OF one ig
neutralized by the expansion of the other. the
penduium remaining unchanged in length and
ne Ime measured much more accurately
tnan Dy menometallic pendulum What wa
want is not a fine theory, but stability; what
we DO not want is fuctuation. Silver and
gola under free coinage gave us l believe for
hundreds OF years, in spite of slight variations
or rather perhaps because Of them. a much
more stable standard than any single metal
could do. We need both gold and silver in
TINS country today quite as much as we do
Two parties; and they must, both parties and
metals, be equal before the law if thew are to
40 us any good. And we are governed often
cute as much by the party and metal out Of
office as by the <sins'' j W PavaIE u
st. Paul. Aug. 8. nm