Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1896-08-13


that if they delayed they would be re.
paid in the cheap money which the
silvcrites promise us. The result Of
this would be the wholesale suspen-
sion of banks Of deposit, none of which
could stand such runs. The banks III
turn would call in their overdue and
maturing loans and force collection to
satisfy their dcpositors. They would
also decline to make new loans unless
it were stipulated that payment was to
be in money as good as that loaned,
viz, gold. Private creditors would
also push their debtors for the same
reasons and the hardships OF the
debtor class would be appalling. Add
to this the inability to conduct bust
ness on borrowed capital, the tighten
ING Of money sure to follow the with
drawal of gold for boarding and ex-
port, the prostration Of industry, the
curtailment or cessation of employ
ment and we should be in a condition
to move the pity of the world. The
hardship would fall not so much on
the persons OF wealth at whom the
policy is aimed as on the debtor and
laboring man whose very livelihood
would be endangered.
Ii, in spite of this, free coinage
should finally be enacted, what results
would followp Without particle Of
doubt we should 90 to a silver basis at
once. Two metals, coined tree and
in unlimited amount and coined at a
ratio disproportionate to their market
value, cannot circulate together. The
cheaper drives the dearer ont, or at
least forces it to premium. The sill
yer men expect a silver basis and
want it. Why2 SO that with cheap
money will come higher prices and
better balance to pay debts with.
Well, let us study that a little. As
soon as the minis begin coming Alp l-2
grains OF silver into dollar on the
plan proposed. the silver mine owner
can take that quantity of silver-now
worth 50 cents--to the mint and have
it made into one legal tender dollar.
This dollar will be 100 cents, though,
in only two ways: first, to pay his
debts; second, to pay his laborers.
He cannot 90 into the market and buy
any more goods with his silver dollar
than he could with SO cents in gold,
because the prices of all goods would
rise with the gold dollar and an article
now worth 800 would bring $l.94
then. This is the exact argument
used by the silver men to catch the
farmers and other producers, that
their products will rise as the dollar
yoes down.
The first gamer by free coinage will
DC the silver owner. who can scale his |
ilebts one-half and pay his employees
lollars that will buy only half as much
Is those they now get.
The free silver dollar would pass
rom the mine owner to his creditors,
md i'll the course of time would reach
i'll classes of industry, still remaining
Scent dollars as compared with all
,thcr things except debt and labor
which could be discharged on the 100
'ent basis, to the manifest injury of 1
and laborers. Prices would /
,e increased all along the line, but
alarics, wages, and all fixed incomes
would either remain stationary or rise
cry slowly. The government would
'e Obliged to take these dollars at par
nd would in turn pay them out as 100 |
ents to its officers and its pensioners.
II there remained any money on de-
osit in the banks ii would be repaid
n these 53-cent dollars. Fixed charges
Ike rents, board, car fares. profess
ional services and the like would be
ased on gold, since there is no reason
1hy they should not share in the gen
raj rise. Az a consequence, the
armer or other producer who now
ONES out even in business at the end
t the year would come out even then
nd be no better off. The man who
as 4 surplus ut the end of the year
,ould have larger surplus, measured
a silver dollars, but he could buy no
more with it. True, he could, if in
ebt, discharge his debts faster with
nat surplus, and that is really the ex-
OF the vote-catching power
t the free coinage movement. 1t
'ould help the debtor. So would
NV that decreed that the debtor should
ay only 5S-100 Of his indebtedness,
nd such law would be as just and