The times. [volume] (Richmond, Va.) 1890-1903, 1896-08-23

will come to a stsndstill. because people
! Will be liable to tumble into pitfalls at
| every step. We have. within the past
| three years seen n most calamtous Illus
tration OF the truth Of this The silver
! I'm one silver dollar Is worth only half as
much as the gold in one gold dollar. Yet
| three years ago We were pursuing the
policy OF adding immense quantities OF
these oyeryalued silver dollars TO our
money. What was the consequence Men
became alarmed lest they should part
with gold dollars and be paid back silver
dollars. They refused 10 enter INTO bust
ness transactions. active business was in
great part suspended all over the country.
employments came TO an end. and per-
feet pail fell over the whole land. The
Richmond Locomotive ana Machine
Works furnish you an illustration. Three
years ago they were full OF work. But
this uncertainty about the standard OF
value came on the country. Men with
mOney TO invest refused TO buy the bonds
OF the railroads because they said they
did no. know whether the bonds would
be paid In gold dollars or In oyervaluef
silver dollars: tho railroads were unable
TO buy engines. and the Locomotive Works
have been practically almost idle for three
years. This has meant one thousand men,
who then had work having no work at
all n great part OF the time.
I conclude this part OF the subject. then
gentlemen. with saying that quantity Of
coin and circulating notes is Of compare
lively small consequence. but what We
want Is a fixed and Interchangeable stand
ard OF value that will make all men I'M
dcrstand exactly what is meant nv the
word dollar, and after that. we want all
abrdgmcnts upon our right 10 create and
transfer credits taken away We want
orr State banks restored to u.. Remem-
her. then. my friends n is not money that
We want. but fixed standard OF val1e
and perfect freedom to create and assign
credits These are the practical money
with Which the business OF the world ~
done. Learn that well and remember It
for ne whole face Ios, Sig 6v here epiicrs
This point Is so vital. and fun under
stancing Of n IL so necessary, that feel
iIipelled 10 elaborate II further.
The prevailing error OF ne dsy upon
this subject is thus stated by the eminent
free-silver authority, Mr.. Wn. = ST
John. He scys the value OF each dollar.
expressed in prices. depends upon the
number OF dollars 10 circulation The real
idea he intends TO convey here IS that
whsn dollars are scarce the prices OF com
modities will be low. but when dollars
ara numerous. the prices Of commodities
viii be high. But this whole notion -
founded upon the error that business
consists Of sales Of commodities for mon
cv. while business Is. I'm fact. exchanges
o, commodities. the exchanges being et-
facted by swaps Of the credit values or the
commodities The only part money plays
in tho exchanges Is 10 settla balances.
What we call "yalus' Ia not fixed by
the quantity Of money at all II -
fixed by comparing tue lahor involved IN
producing "A commodity as mOdined ny
the demand FOR that commodity. with the
labor involved IN producing the amount
Of metal m dollar modified by the
demand for that metal. II the money -
greatly increased after that. prices or
commodities viii noninally rise. II - true,
but IL Is a nominal rise only. and what has
really happened is that me re Al or
which the money IL made has lost ground.
Either the labor necessary 70 produce II
has become less. OF tho quantity OF II his
caused tho desire for II to abate. and II
n case or money being deprecated
rather than a real rise In the value OF
commodities. Outside OF the apriOri rea-
soning which proves rhis IT Is proved ~
the fact that when the money mas IN
creased In quantity 10 such an extent, TO
relation OF commodities 20 each ofner re
mains just what II was before the IN
crease A htshel OF wheat swaps Tor JUST
the same amount OF corn as before, ana 4
barre OF potatoes for the same quantity
OF fax The nCnsral increase or prices.
therefore, that cen IS from incfeased guam
tity Of ncney has no effect whatever upon
the value Of comm oddities II is nothing
but proof that the money OF the country
las Ccprccie ted.
Me-. Watson. the nominee OF the Pom
lists for Vice President, has furnlsheu q
striking Illustration Of the truth or ms
reascning lie publishes a paper down
I'm Georgia ard s.ens all the articles ne
writes with his own initials. recent
one sgr,ed by him contained the follow
con the last pages II the first volume OF
his Conquest OF Peru Mr. Prescott. the
historian. tells Us that when Pizarro and
his victorious @ nj anious anne 70 Oh,
vision of the geld and silver they nal
stripped from shrine, temple. and pila -,
the quantity was 20 great mat me rel+-
tons Of commodities IT. the market WERE
very seriously disturbed. Inc price OF
gold and silver went down, and the prices
81 other things went up. That is. it re-
cuired a larger amount or silver anu
gold to purchase ether products.
The historian gays: a quire OF paper
as Mr. Prescott explains On page 40.
was equal 10 Sl1G1 CT our money. Ihtte-
fore. the quire OF paper Nchahseu LOT
Mr. Prescott further says: a bottle
Of wine sold for sixty pesos de orc.
sword for forty or nifty; clck Tor a nun
dred. and Sometimes more: PAIR Oh SHOES
cost thirty or fcity pesos lie orc aid a
good horse could not be had for less than
twenty-five hundred
Turning these prices into their equiyn-
lent IN our money. we have the follow
ing interesting statement OF values in
Peru in the year Il our Lord 13.Ai: A
bottle Of wine, NuO.2o, sword $ivp.oo'
q clock, 81 .1c7: a pair OF shoes. S35O.1O,
horse. so, i1J. All payable IN gold or
silver.
The people OF Peru had no knowledge
OF money They had no paper or coin
currency. Barter and exchange was their
only mercantile device. On" commodity
had to swap for another on its merits
those merits being determined by useful
ness, and SUPPLY and demand.
Could there be a more complete HIS
tratiOn OF the sOundness OF what | CON
tend for? The Peruyians knew nothing
Of the uses OF money, the Spanards had
no means Of &C mmunicatlng with the
civilized world, ard, consequently, tho
only use they could make OF their gold
and silver was in traffic amongst them
selves. and there were very few OF them.
while there were great quantities OF these
metals The consequence was prices OF
commodities rose enormously. But the
rise was nothing but an evidence that
gold and silver had become so common
that men had lest their appreciation Tor
them. Nothing had become more yalua-
bic than Il had been. but gold and silver
had become much less valuable. II took
lust as many cows TO exchange Tor
horse after the rise In prices as 10 took
before the rise. So that. for the purposes
OF business, absolutely nothing had been
done through the great Increase OF mon
John stuart MIL in discussing this sub
Jet and affirming the doctrine have
stated. says In his political economy. vol.
l. book 3. chapter /. section 4. p. 525.
'e"hings which are exchanged for one
another. can no mere all fall, or all rise.
than A dozen summers can each outrun
ali the rest. or a hundred trees all over
TOP enc another. Simple as this truth Is.
Wa shall presently see that 1t is lost SIGHT