The Colfax chronicle. [volume] (Colfax, Grant Parish, La.) 1877-1981, 1896-01-25
SOUND MONEY.
homo Questions and Answers Concerning
the Currency.
Q. What is meant by sound money!

A. Money that is good for its face
value; money that is equally change
able at its face value with any other
money in the world. ns{f.
Q. have seen money defined as any
thing that circulatcs freely and custom
nrily between man and man in exchange
for services and merchandise. Wouldn't
that make silver sound money?
A. 1t would if silver would circulate
freely, but that is the trouble. If you
will consider a moment you will see
that confidence in being able continu-
ously to pass silver as money would be
a condition precedent to accepting sill
yer as money, and that confidence must
be worldwide in order to make sound
money Right here let me say that
sound currency, with q real and not
fictitious purchasing power, is more
necessary for the happiness of the
farmer and the wagc-earner, since
traders. capitalists and spectators get
quicker information of fluctuations and
can shape their business accordingly
with greater facility.
Q. Wouldn't free coinage of silver
help the mine-owncr and the man in
debt?
A. Temporarily. After the panic al
ready alluded to and before silver was
down to its bullion value, it would help
the mine-owner. But if afterwards it
deprecated the value of the dollar then
it would not help the mine-owner, and
the man in debt would have failed be-
fore the panic resulting from sixteen
| 10 one victory was over. 1t is perfectly
plain that if free coinage of silver raises
| the value of silver, it cannot at the same
| time &ise the value of property; and
| II it depreciates the value of the dollar,
| that means q period of financial anarchy
and long period of depression. Take
either horn of the silver question and
| 1t only does our country harm.
Q. Do you really mean, from the stat
istics you give, that England has moro
cash and credit circulation per capita
than any other nation on the globe?
A. 1t is the truth.
@. Well, suppose congress should
meet and pass law absolutely giving
free to every man, woman and child in
the country 500 in greenbacks. wouldn't
| that give us more than England?
A. Oh, yes, that, added to what We
| have now, would give the country q
cash and credit circulation of about $14,-
100000 900, and l suppose you think that
would be good thing for the country :?
@. 1t would look SO, though only $500
| for each one OF us doesn't amount to so
| very much.
A. That is Just it; 500 for each one
Of us isn't so very much property; but
put that much money in circulation and
your money will go down hill in value,
something like the confederate money
did toward the close of the war.
q. How is that?
A. Your questions only show that
| you, like most people, are not familiar
with the science of money. Money in
itself is intrinsically worth little or
nothing, except the value of the gold
and silver, which their use in the arts
or us jewelry would give. The total
business of all the clearing house banks
of the country is not over $50, 000, o00, 900
year. With nearly $9,0OO,o0o.00O of
actual cash currency circulation. as
| you propose, currency would become SO
| redundant that the same condition of
| affairs would be brought about as hap
pened in the Argentine Republic. All
| we need is sufficient cash and credit
money to enable us to get what we want
without actually bartering. For in
stance, have some merchandise farm
4 nj he
dealer wants, which cotton the manu-
! facturer wants from whom l get my
! merchandise. Money enables us each to
make an exchange without making a
triangular barter, as would have been
the case in olden days, before currency,
checks, drafts end due bills were in
vented. If the country has more cur
rency than is needed to enable us to eff
feet exchanges, our desire for currency
will diminish as it grows more plentiful
and SO more difficult to part with in ex-
change for real values. That would
bring us to just such condition as ex-
listed recently in the Argentine Repub-
lie, a period of imitation, of cheap money
and high property, of much money for
which there was no corresponding need,
and a desire on the part OF the holders
of the surplus currency to put it in some
investments that would return divi-
dend, as no one can make anything out
of currency just by locking it up in q
safe and keeping it there. After awhile
everyone was trying to get rid of his
currency for property, and stampede
set in which caused the collapse of the
Argentine Republic and more misery
all over the world than any similar panic
in the worlds history. They are gradu-
ally getting back some of their credit
but one of our paper dollars to-day will
buy as much in their own country as
four of theirs.
@. You believe, then, our condition
would be better If our credit was un.
questioned?
| A. Yes; kill the silver question alb
solutely, and our country will rise on