Delaware gazette and state journal., 1896-07-30
SOUND MONEY LABOR's SAFEGUARD.
Hon. Rowland d. sIahany.

money OF the bankers, but silver is the
morey of the people.
This misleading declaration is cum
ningly advanced to distort into an
argument for silver the fact that, even
when the metals circulate at a parity
that Is, on an equality of values-the
gold coins being in the main Of larger
denominations usually So and $40
piecosl, the silver dollars have a
greater currency among the people,
simply because of greater convenience
in the making of change or the settle-
ment of small transactions. This con-
venience becomes at once secondary
confederation when the value or pur-
chasing power OF silver is impaired.
This government is now on d gold
basis; that is to say, the nation stands
pledged to redeem all its debts or obli-
cations in gold, This is not the result
OF arbitrary legislation on our part,
but a necessity imposed by the do
mands of trade and commerce. Foreign
purchasers of American products pay
in. gold, and foreign creditors demand
settlements in the same metal.
How would the free and unlimited
coinage of silver at the ratio of 16 to ]
affect our business, and especially our
industrial conditions?
The advocates of silver ask the gov
ernment of the United States to declare
by law that 16 ounces of silver are
equal to one ounce Of gold; whereas it
takes in the neighborhood of 81 ounces
of silver to purchase an ounce of gold
in any market of tho world, merican or
European. We are, then, to discard
our present gold standard, recognized
and honOred IN every business centre
on earth, and to adopt fiat standard,
recognized nowhere ut it's stamped
value, not even among ourselves.
Who would be the chief sufferer by
such policy
+ Not the banker or capitalist, against
whom tho silver people are attempting
to raise such hue and cry. The brains
that understand finance and accumulate
great fortunes can bo depended upon
to escape with minimum of loss; but
the maximum of disaster would fall
upon tho American laborer.
The moment the free and unlimite ted
coinage of silver ut the ratio of 16 to |
is adopted, that moment, in all the
markets of the world. our silver dollar
will be rated, not at its stamped value,
but ut its real value of 81 or SO cents.
Sixteen ounces of silver are WORTH only
about one half Of an ounce of gold, and
hence cur silver dollar at the ratio of I6
to will be worth only about one half
of gold dollar. Every manwho has a
dollar in gold will keep it, il he can
pay bis tlobts with silver dollar worth
only half as much as gold dollar.
This will withdraw gold from circula-
tion here; and gradually all our gold =
about 1868, QUO, GOO in coin and bullion
will cross the Atlantic 10 pay our
foreign obligations that are redeemable
only in that metal.
The withdrawal of our gold coin
(aggregating 1920. 900, 000) now in cir
culation would shrink our currency TO
the extent of one third. e
This disturbance of our finansfal
system would be rendered the more
appalling by the immediate shrinkage
in the value of our silver coin to one
half of it's present purchasing power
Tho financial stringency of 1893 would
he reproduced on gigantic scale.
Depositors in banks would demand the
payment of their deposits in gold.
Runs on these institutions wouldscause
80 per cent of them to close their doors.
Notes could not be discounted, and en-
ployers doing BUSINESS on credit basis
would fail. ,Workingmen, would be
thrown out of employment. Rates of
interest would go up as the general
ability to endure tho burden declined.
Crash and panic-each producing the
otherIwould be the. continuous order
Of the hour. - a.
This state of affairs would bo the first
calamity to fall on American labor
from the free and unlimited coinage of
silver at the ratio of .lG to /. The long
train Of consequent and subsequent
evils almost deiies description.
To MeXicaniZe our money means to
Mexicanize our labor. 1t is fact de-
duoed from universal history that the
rates of wages do not increase in pro-
portion as the money in which they are
paid decreases in value. There are few
things slower than rise in wages,
while the commodities or necossaries
of life for which these wages are ex-
pended fluctuate in price from day to
| day. There are few things swifter than
a decrease of wages in hard times.
There is nothing that produces hard
times more quickly than an unstable
| or huctuating currency. 1t unsetres
securities apd deters Investments. II
destroys confidence, which is the
mother of busnes enterprise.
That the American workipgman,
| therefore, should desire the establish
ment Of the least variable standard OF
currency seems to be the plainest prop
osition OF com mon sense. The dollar
paid to him, in wages should be equaI
in purchasing power at all times and
everywhere to that paid to the owner
of a bond. A days labor is the same
| in physical exhaustion whether the
compensation for it Is in dollars worth
| so cents or in dollars worth 100 cents.
What is more important, therefore, tc
the laborer than that the money stand.
ard of his wages shall be as fixed as the
labor for which those wages are paidi
When there are two kinds OF money,
ono cheaper than the other, capital
will always endcayor to pay labor in
the poorer currency, and to secure its
own profits in the better. In addition
to that. the laborer, under tho eilve,
regime, would be forever at the mercy
of the market manipulators in exchange
Fates, and every disaster that occurred
to depress industry would drive dowr
the price Of silver and force up the
price of gold. The laborer, however,
cannot hold his silver money until th,
market takes an upward turn for thai
metal. Unlike the rich man, the lab
orer, having but little money, mus
pay as he goes. Ho pust part witt
his wages for the necessaries of life
When the market price of silver il
down, he gets 30 much less for hi
| money. In whiph purrrency tharafnre