The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-10-21
ATKINSON on SILVER.

- Twain 9aS lee to the rs<sl9{ OF so mary
letters and questions that have zen ur-
anie TO give personal reply 10 most q
them The question. "A legal tender-~nst
Is II n 0re OF these. That question goes
70 the root OF the matter. A ful! reply
would cali for q volume o. monetary his
tory
To those who wish 20 go fully into the
case commend a few books
Bl-netaiiisns" by Henry D1nning Nc
Leo6
History OF Currency" BY W. A Shaw
Origin os Currency and Weight Stand
ards" by Prot. William Ridgway-
] also commend 10 every one's attention
The Silver Situation IN the United
States" by Prof r. ". Taussig. OF Har-
ward university
VIII add President Francis A Walkers
recent work or international bi-nnetalitsin,
OF which he is al advocate. IL Is OF great
value historically ard ststisticaly. but
cannot help concurring with a review
which appeared IN the August number OF
the Investors Review. OF London. 10 the
effect that while President Walkers sup
port OF international bi-Fnetallism Is not
readily comprehended, there ara "sgreaks
OF luminosity" In his dealing with that
branch OF the subject quote this phrase
only for the reason that / do not myself
think that any one who holds that an act
or force or Of legal ten1er is necessary 10
give monetary use or power TO every kird
OF money, even money made Of gold. can
ever make mis- argument perfectly clear.
IL may contain "streaks of luminosity"
but can only become thoroughly luminous
and lucid through complete surrender
OF the fiat fallacy
The advocates OF international bl-metal-
iism resi- their case wholly upon the fat
Of law. Their contention is that by giving
forced circulation 10 silver at fixed
ratio relative to gold, such a use may be
fGn ga n czE n
ton by the public being maintained with
substantial psrmanence at the fixed ratio
which may be determined upon. The term
international bi-metailisun'' should give
place TO a very awkward term for when
/ can find no synonym. International BIZ
legal-tenderism." The money settlements
of the balances of international commerce
are now made by remittances OF fixed
weights of gold under the name pound
sterling" which Is not the name OF any
lawful coin. There is no act of interna-
tionai legal tender, and the object Of the
advocates OF bi-metailism can only be at
tanned By bringing the force OF law TO
bear upon the contracts which are now
conducted free OF any restriction and
without any Intervention Of a forced legal
tender. Hence IL is right TO say that all
advocates OF international bi-metalllsm,
well as all advocates of the free coin
age OF silver. concur in being advocates OF
fiat money.
] have given the names of these books
because l have had so many letters OF in
quiry.
i did not clear my own mind of
many doubts upon the money prob
lem until ! had put TO myself
this very question. "A legal ten
der-what is it," / could at first see no
reason TO deny the assertion on which the
bi-metallic theory rests, namely. that the
quantity Of coin I'm use at given period
must of necessity be controlling element
in establishing prices in the conduct OF
purchases and sales II once appeared 10
me that in setting of goods against
money money against goods the price
must OF necessity be determined by an
equation; the quantity OF money set OF
against the quantity of goods at given
time. so must he the price. This now re-
gard as a fallacy corresponding To that
out of which the so-called wage fund
theory originated. namely, that given so
much capital available for production at
given time and so many lahorers. the rate
OF wages would be worked by division or
that capital. No one has done greater ser
vice in removing the latter fallacy than
President Francis A. Walker. II the
quantitative theory were absolutely true
in it's application to a particular period.
say a year. or even decade. then any act
or series of acts displacing great guam
THY OF coin which had been previously in
would make all debts then due more diff
fcuit TO pay.
/ think that this is fair statement OF
TN. case. not only OF the advocates Of the
free coinage OF silver. but of the bi-metal-
lists who hold that silver has been de-
monet!zed and that the quantity OF money
OF fun legal tender has been 50 much re-
duced "a 10 have brought about what
President Andrews calls a fatal fall in
prices" 20 the benefit Of creditors and To
the grave injury or debtors.
II Is admitted that the quantitadve
theory OF money is not without support IN
certain facts. IL may be admitted that
tho enormous increase Of gold and silver
alike has affected prices in very long
periods OF time. Both gold and silver have
deprecated by becoming moro abundant
in ratio TO their use. since for instance,
the latter part Of the seventeenth cen
tlfry, when under william III the British
debt was first put in a funded form There
can be no dofbt that both gold and silver
have lost part OF their purchasing power
in ratio 70 all commodities since then. bat
the effect Of qusntttative changes s. de-
veiope,i only In very Tong periods of time.
Hence il follows that neither gold nor silver
can he held TO be absolute standards.
There Is no such thing an absolute
monetary standard or standard Of value.
have myself long been OF the conviction
that the very large Increase in the relative
quantity OF gold as compared to silver
after the discoveries in California ami
Australia has tended to depreciate both
gold and silver alike. silver more than
gold. under tho Iaw that when a substance
most ~ for n given purpose becomes 50
abundant as - render IL possible to dis
phase one less fl. the latter may be depre-
ciated BY the great Increase OF the former
In respect 10 gold. the enormous relative
increase after IS5o. 20 which another huge
increase is now being added, has IN my
Judgment caused depreciation Of gold
f.s..f Or in other words from the exam
fnattons which ! have made in many ii
r>c>iions ths great reduction In the labor
cost Of production Of many articles would
have warranted a greater reduction OF
rrice than has occurred. Hence u follows
that while silver has been dearerfatrst
both by ia owD relative Increase n 1yro-
6stcts0n and BY is partial diS1se az a
metal q. rali legal ter3er there has been
no scarcity 81 god az any time. There Is
none now. and no article o. necessary or
common use can o. cited - which there
las been Il reduction IN pF@.>e which can
not be acs,sutei far witheut any reference
- the ratio OF god and silver ! r,spTat
he challenge - a1T snd every atvo.-ats
% tire grs-e coinage 81 silver or Of inter
rational bt-va~tnilisn 10 name any article
81 food, eiel. atsr. fabric Or metal OF
wAh,h any reduction IN u~sce which has
taken Mace since lsTs OF las cannot ~ fully
accounted for ay RE applscai sssn % science
and invention without any reference "a
eha concurrent SsIaGg~ n tae ratio Of gold
ana silver. and vice versa.
II Il could ~ proved that genera. o-4>as
had Been lowered n tire markets e tina
world 20 IRE benefit OF The creditor arA -
The sntrFry % the debtor ~ The slo-caife~9