Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1896-09-10
LETTER FROM COL. MosBY.

LETTER FROM COL. MOSBY.
70 the editor Of the alexandria Gazette: ::
In an editorial paragraph in your is
sue OF August 9th it is said that, "If a
valueless slip Of paper becomes worth a
dollar simply by having the govern
ment's stamp printed upon it, why a
lump of silver that can be sold for fifty
three cents anywhere will not also be
worth d dollar if it bears the govern
ment stamp, cannot readily be told"
Now the government stamp neither
gives value to the greenback nor to sill
yer. Greenbacks were first issued in
1852 and by 1865 became so deprecated
that they were worth less that 40 cents
in the dollar; l mean, that their pur-
chasing power was less than 40 cents in
the dollar. Wages were then but very
little higher than they were in gold in
1860. The government stamp on the
gree back when it was so much depre-
ciated was just the same that it is now.
So it is not the stamp that gives value
to the paper. The greeuback is gov
ernment promise to pay dollar; it is
not money but the representative Of
money. AS they were payable on de-
mand and as the government failed 10 re-
deem them they were like the dishonor-
I'D notes of an individual that have been
protested in bank. AS soon as the gov
ernment provided redemption fund
they rose to par with gold.
The populist convention at Chicago
declared war on the national banks and
in favor of issuing all money in notes
directly from the Treasury. This
would demonetize both gold and silver.
When the scheme for issuing green
backs was first proposed the democratic
party opposed it as unconstitutional.
George II. Pendleton denounced green
backs as having the brand of Cain upon
them.
The silver dollar which we now have
derives none OF its value from the stamp
upon it; that like the stamp on the
gold dollar is mere certificate OF its
weight and fineness. Now the test OF
sound money, as stated by an economist
of high authority, is this: Good money
consists of coin which is worth as much
after it is melted as it purports to be
worth in coin" If you melt twenty
dollar gold piece the bullion is just the
same value as the coin. In other words,
SO much money mears coins whose face
value is the same as their intrinsic
value. Fiat money is that kind whose
face is greater than its market
value. But it may be said in answer
thau the fact that silver dollars now cir
culate at par is contradiction Of this
theory. Not AT all: the silver dollars
now in circulation were not coined al
the mints on private account as they
would be if We had free coinage, but
were coined on government account
and issued to its creditors by the
government with the pledge o
maintain their parity with gold.
IL is therefore the confidence in the
good faith of the government that
gives all OF its value to the greenback
aud one half of it's value to the silver
dollar. But with free coinage the gov
ernment does not guarantee the value
of the silver dollar; its stamp is
only certificate of its weight and fine
ness. Il must go out in the world un-
supported and take its chances OF
standing on its merits in competition
with gold. If the coinage of silver dol
lars had not been suspended through
the influence of Mr.. Cleveland the sill
yer currency would have become re-
dundant aud deprecated, and beyond
the power OF the government to main
tain the parity OF the two metals.
Suppose the proposition for com
promise between the gold and silver
men were made by having free coinage
at 16 to /, but without the legal tendt
attachment to either metal. Would
the gold men accept? Certainly, be-
cause lump of gold will buy as much
and pay as much debt in its natural
state as when coined. Would the sill
YER men agree to the free coinage OF
silver dollars without legal tender
over? No, because they know
| they would lose their fictitious, and
sink to their real or bullion value, and
could not be used for scaling debts.
This test would prove the insincerlty
of the silverites who pretend to
think that with free coinage sill
Yer would rise to level with
gold. Without the legal tender
atts schment they couldn't force the sill.
Yer dollar on the people and it would
not circulate.
Silverites say that the prevailing low
prices are due to the appreciation OF
scarcity of gold, and the consequent
contraction of the currency. This is the
chorus to all the speeches of the popu
list candidate for the presidency. II
should not be forgotten that four year:
ago the complaint was against high
prices and the Mckinley bill. People
who have to buy their bread prefer the
present prices to the old ones. There