St. Paul daily globe., 1896-04-25
SOLE UNIT of VALUE.
Cato's Assertions Regarding Silver
and Gold.

To the Editor of the Globe
The basis of the argument directed against
the proposition to resume the old-time long
sanctioned governmental usage of coming
gold and silver freely at the Sixteen to one''
ratio is the assertion that such ratio does
not accurately correspond with the existing
commercial ratio.
This fact, not denied by the advocates of
free coinage" Is urged with tiresome itera-
tion by the exponents of the "gold standard"
theory of finance. Mr.. Carlisle and Mr. Eckles
have lately spoken from the ramparts of
the federal treasury, dilating upon the sup
posed advantages resulting from a policy
which destroys the debt-paying utility of half
the metal originally designated by the con-
sent OF the world as legal tender.
These distinguished advocates of the ''gold
standard also urge as an argument favor
able to their theories, the latter-day cheapen-
Ing of silver (as compared with gold) and
shout derision to the 'ffty-cent dollar" as
they term the silver dollar, which, at the
foundation of our federal monetary system,
was made the sole unit of value-the DOM
inant standard for the worth of all coins.
Now, the important questions-the con-
trolling questions-in this connection, are:
1. How did the commercial ratio between
gold and silver become changed?"
2. Can the ratio of sixteen to one'' be re-
established?
The accurate answer to the first question is
readily given. The cause of the apparent
decline in the commercial value of silver, as
compared with gold, is, simply, governmental
action. Nothing can be clearer The relative
quantities of gold and silver in the world
are, practically, the same as in the year 1873
-tnat disastrous year in which the Repub
ltcan party demonetiZed silver. During the
period which has elapsed since that year, the
production of gold and silver has taken place
In such measure as to leave the bulk and vol
ume of gold and silver unchanged, save that
the total quantity of gold seems now to be
somewhat greater in proportion to the total
1873.
Measured by its purchasing power in the
great staple commodities, silver has as great
commercial value in countries not cursed
by the gold standard as it ever did possess.
Silver has not deprecated. Gold has appre-
ciated. This appreciation would, by in
creasing the normal and covenanted burden
or debt, be great calamity, even though it
arose from natural causes. Produced, as it
has been, by artificial causes, it is mon
strous wrong.
The argument is sometimes advanced that.
since wages have shown no average decline
therefore, gold has not in fact appreciated.
Let US examine this argument. No close stu
dent of the labor world will deny that.
during the last ten years, the tendency of
the rate of wages has been downward.
This downward tendency has been resisted
by artificial means. The industrial classes
nave OISdulLeu ana nave WaSeQ a SucceSSrul
war against the decline in wage-rates. Force
mot commercial or Industrial routine-has
kept up wages If capitalstic effort, so dill
gently exerted of late years. had succeeded
in its cherished purpose to annihilate the
labor unions, the practical serfdom of the
laborer would be an accomplished fact.
The second question demands an answer
and the necessary response is in the affrma-
tive. What governmental action has DONE
governmental action can undo. Congress en-
acted the demonetization of silver. Let con-
gress repeal the act of demonetization. Moth
Ing could be simpler. 1t is manifestly illog-
fcal to complain, after artificially destroying
the commercial value of silver by depriving
1t Of its debt-paying function, that it should
not be restored to its debt-paying function
because 1t has been cheapened. The ''ffty-
cent" dollar was worth more than one hun
dred cents in gold when it was stricken out
of the list of standard coins by the fiat of
Republican congress. Remonetize the silver
dollar and, by natural sequence, it will re-
sumo its normal value, as compared with
gold, the added value of the gold dollar will
disappear a balloon shrinks in volume
when its gas-receptacle is punctured. Pa
triotism and humanitarian alike demand that
the industry of our people be relieved from
the blight Of indebtedness artificially en-
HANGED. Relief should be afforded by re-
storing our coinage to the hard money
standard specified in the federal constitution
and so earnestly commended and carefully
maintained by the people of the United
States when guided by Jefferson, Jackson
and Benton, -Cato