The Colfax chronicle. [volume] (Colfax, Grant Parish, La.) 1877-1981, 1896-08-15
History Repeating Itself.

Editor N. Y World:
By striking coincidence exactly
200 years ago England passed
through just such financial cam
paign as is now going on in the
United States. The great issue
was whether the amount of silver
in the shilling should be lowered.
The exhausting wars with France
had produced a temporary scarcity
of money. This was intensified by
the condition of the currency. In
fact, for some years there had been
in England two kinds of silver
money. The old-fashionad ham
mered coins, though universally
debased by pairing and clipping,
were still IN use. still receivable
for public dues and still legal ten
der for private debts. The new
mllled coins, which had been de-
vised by the government to take
the place of the mutilated currency,
and which were of full standard
value and SO stamped that pairing
could be readily detected, had been
turned out in large quantities from
the royal mints, but failed to APP
pear in circulation.
The lawmakers of that age, says
Macaulay, "marvelled exceedingly"
at this. They expected that the
new money, which was excellent,
would displace the old, which was
much impaired. But then was oh
served the operation of an unfail-
ing law that when two kinds of
money of unequal intrinsic value
are recognized by law the more
valuable will not drive the baser
ont of circulation, but will itself be
driven out.
When man came into possess
sion of a new shilling of full weight
he very naturally did not care to
pay it out when one of much less
weight would serve his turn. "The
horse in the Tower still paced his
rounds. Fresh wagon-loads of
choice money still came forth from
the mint It vanished as fast as
it appeared. Great masses were
melted down, great masses were
exported, great masses we're hoard
ed, but scarcely one new piece was
to be found in the till of the. shop
orsthe leathern bag the farmer car
ried from the market. In the re-
ceipts and payments OF the Elk
chequer the milled money did not
exceed ten shillings in a hundred
pounds"
In vain were efforts made by
legislation to control the operation
of this law of human nature. Sc
we're penalties were enacted against
melting down or exporting the
milled coin. They were as futile
as endeavoring by law to check the
operation of the law of gravity.
The country continued to suffer
from scarcity Of money, and from
the defective character of the only
kind which was in circulation.
The obvious policy and that which
was at last adopted with satisfac-
tory results was to call in the cur
rency of uncertain value and to re-
coin it into standard pieces.
But before these results could
be realized there arose clan OF
politicians who took the position
that tire secret of the financial dis
tress of the nation was that money
had risen in value. Prices had in.
deed fallen, as might be expected
and as always happens when money
disappears. The difficulty was
they insisted, that debtors had te
meet their acceptances in money
which was worth more than at the
time the indebtedness was assumed
They therefore boldly proposed
under the leadership of William
Lowndes, then Secretary of thu
Treasury, that the amount of silvel
ina shilling and other coins should
be reduced about Is per cent. This
they said, would give q largel
amout of money out of the same
amount of metal, would be justic'
to the debtor class, would restore
the old standard of prices for tn
products of the factory and thu
farm and bring back prosperity t
the nation.
This was made the great issue il
the election of 1896, and then tool
place the historic campaign OF tn
'little shilling" The enemies Q
the Government, seizlng upon it
refusal to adopt the measure pro
posed by Lowndes as the point Q
attack, labored indefatigably i
l. 9Th