Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1896-05-07

markets then you are talking Popu-
lism.
We know that you claim that is not
so. You claim that you believe silver
would go back to its 1878 value If the
1873 conditions were restored. True.
But remember that there are two awk-
ward facts to confront you as long as
you stop short of the Populist position:
1st. The trade dollar is there to prove
that it was not the value OF the Sill
yer which made the standard dollar
circulate at par. 1t was the power OF
the legal tender law!
I'd. There are the market quotations
of 1873 to prove that the amount OF
silver in the standard silver dollar was
worth three cents more, on the mar
kets of the world, than the amount OF
gold in the standard gold dollar. This
proves too much for you; not too much
for us Pops!
Neither of these awkward facts inter-
fere with the fiat money" principle,
but they play the mischief with any
free silver argument which stops short
Of the Populist position.
Each of the two facts alluded TO
conclusively prove that the commercial
ratio is one thing and the legal coinage
ratio quite another; the market value
of 420 grains of non-legal tender silver
Grade dollar may be only 80 cents,
while the legal value of 4161s grains OF
legal tender silver STANDARD dollar)
may be one dollar.
On the contrary, the market value
of 4161a grains of silver might rise
above a dollar, whereas it could only,
as coined dollar be worth a dollar
in the payment of debts.
No mere free silver Democrat" can
get over these two facts.
Mr.. Smith is correct when he says
that the nations Of the world nave
changed the coinage ratio time and
again to make it conform to the COM
mercial ratio. AS he says, it has been
done also in this country. We think
that the gold bugs are right when they
claim that debased dollar, under mere
bimetallism, would drive the good dol
lar out of circulation. The reason is
obvious: the good dollar would seek Its
true level, and would part company
with its inferior.
To witness the lodgings and the
squirmings of the free silver men when
impaled on this point is funny. They
cannot answer it, and they rarely try.
But to the Pops this alleged gold
bug argument, this so-called Gresham
law has no terror at all.
We admit that any commodity, obey
ing the laws of a mere commodity, will
go where the best price invites it. OF
two commodity dollars, the less val
liable will continue to toddle around,
as a dollar, while the more valuable
will 20 into better business. For in
stance, if the law stamps the words
zone dollar on ten cents worth of iron
and also stamps the words zone dollar
on one hundred cents worth of gold,
the gold will not associate on such
terms with the iron. 1t will leave the
dimes worth of iron to keep up the
pretense of being zone dollar" while
the one hundred cents worth of gold
will be called to those uses which
make it worth one hundred cents.
This is the Gresham law-d9struc-
tive to your weakened silverite VINO
wants more money, but who does not
want it based on the fiat of the govern
ment.
To us Pops this Gresham law" goes
for nothing.
We say we don't care a dime where
gold goes; nor what the gold il the
gold dollar is worth. We don't care
whether silver stays at home, or visits
around.
What we want is money. And to
us. money means that thing which
the government declares to be dollar,
and declares to be good in payment
of a dollars taxes and dollars debts.
That's all we want in this country, and
the law of this land and the enormous
wealth of this people would carry pa
per money, at par, as easily as it car
ries paper bonds to a premium.
1t is the law and the governments
credit which floats the bond. The same
agencies should float the dollar. Paper
is paper, and a promise is a promise
and there can be no reason why Uncle
Sans word on a paper dollar is not as
good as his word on a paper bond.
For all purposes of trade in this
country, then, a paper dollar, backed
by the government, would answer
our purposes as we'll as silver and
gold.
For foreign trade, we would have
TO do Just as we do now-settlo our
balances by bills of exchange or by
gold and silver in their commercial
shape. The United States government
stamp on gold and silver dollars Is
worth nothing to use in foreign trade.
Gold bars and silver bricks, duly as
sayed, would do quite as well.