The herald., 1896-01-05
The Financial Ouestjo,

| Inc FINANCIAL question
EDITOR HERALD: In your issue of the
3lst inst. Mr.. j. ID. Bailey attempts an adj
verse criticism on my proposed constitu-
tional amendment on the money question.
| The attempted criticism shows the sound
ness of the plan. He says: "Third--
! Everything and everybody, and the nation
itself, would be pledged to redeem this
money in gold or silver coin, which at the
present time means gold" The amend
ment does not state gold alone. but gold
and silver coin, and Mr.. Bailey has no legal
authority to change its wording simply to
set up straw man to knock down.
The amendment leaves the date of re-
demption to the best judgment of two
thirds vote of Congress. And if the time
never arrives for needed redemption it
will not be redeemed, but will continue to
circulate as when first issued. My plan
does not contemplate current redemption,
as shown in my former article. Hence his
criticism on that point is entirely off. AS
to how the nation will get gold or silver,
the best way know is as stated in my
article referred to. | fear Mr.. Bailey did
not read it all or forgot it. The govern
ment does not collect taxes of the people,
but levies duties on imports and internal
silver Of the wealthy people who imported
or manufactured.
Mr.. Bailey labors under the common
error as TO the standard of value cutting
any figure III values. 1t will not do any
such thing whether gold, silver, or railroad
iron is used as the standard.
The long or short yardstick argument is
a gross humbug to fool the people. To il
lustrate: If the yardstick is 6 feet long or
Is inches long, will it affect the price of
goods? No. If 6 feet long you will pay 81
for yard feet long. or 80 cents for half
yard J feet long. Or If the yardstick is
is inches long, you will pay 20 cents for
IS inches of goods. or 80 cents for feet
OF goods, or 81 for feet OF goods.
so. whether the standard is gold or silver,
will not affect real values of products as
measured by the labor necessary to produce
the goods.
If the gold dollar is worth commercially
2OO you will get two yards of goods if it is (
worth 90 you will get one yard of goods;
If worth 90 cents you will get half yard of
goods. The same if silver is used. The |
price of gold and silver is fixed by the !
common agreement of the world and not |
ny any one nation. Legislation by one ma
ton can not alter the price fixed by the |
world.
All constitutional enactments require |
congressional action to set them in opera
ton. Hence Mr.. Bailey's criticism on Sec
ton is wholly inapplicable. Section 3 |
vests the power to put temporary limit
on the volume in a two-thirds vote of each
house. No safer plan can be found. 1t /
must rest somewhere, to meet possible
of too great an issue. His
criticism that national banks, under my
plan, will buy the bonds to issue national
bank notes, is not tenable. Under my
system there will be no national bank
notes. Nothing but United States currency
or greenbacks will be in existence. Banks
are allowed to borrow money of the United
states under my system, the same as
others. This would be to meet the short.
arge demands of localities for moving
crops or other similar demands. 1t can
1est be done this way in the interests of
he people. No other system could pro-
duce equally good results.
Merchants and manufacturers want short
oans for thirty to ninety days and do not
wish to 60 through long red tape govern
neent process to get it. Banks would COM
ment and accomnh556h ii With the govern:
The competition between banks would
keep down interest rates.
His criticism that under my plan the
banks would capture the coin and run in
for redemption is a phantasma.
Such thing cannot be done under section
seven as printed in my article.
My plan gives the people in states, coun-
ties and cities all the benefits of low two
per cent interest tnat hf. Daley refers 10
in the close of his article.
1t is unfortunate in the interests of
the people that persons should SO egre-
grously misrepresent the facts of a finan-
cial system or plan and thus tend to con-
fuse the voters.
If Mr.. Bailey will understand my plan
as it will actually work out, he will I'M
doubtedly support it. Those who have op-
posed its principles for years are now adj
them.
Henry Clews for years has opposed con-
gressonal action, and has periodically got
off the stale phrase that if congress would
only adjourn and go home and not inter-
fere with finances that the country would
prosper. he now states that only con-
gressonal action can save the country from
disaster, This shows that form
erly he did not understand the subject,
Other prominent New Workers advocate
the issue of . per cent bonds for local use,
and as basis for banks to borrow of the
United States to meet local money de-
mands as provided in my plan. This is
now advocated by the New York World.
The national bonds and currency should be
payable in gold or silver bullion at it's com.
Inercal value at the date of payment. This
would end the gold or silver standard craze
at once. X. M. WIDNEY.
January 3, 1896.
Discretion and Ind scretion