Evening star., 1896-10-23
THE MONEY QUESTION
Further Expressions Upon It by Correspond
ents of The Star.
Reference to the Effect of the Paper
Money Issues During the War
of the Rebellion.

Oh the HcOeulOns
To the Editor Of The Evening Star:
Anent the claim of the gold standard
papers. including Harper's Weekly. that
the wages Of the workmen will not rise
with rise of prices when the latter is
caused by al increase in the money of the
! country. will you kindly publish the follow
| Ing extract from Harper's Weekly Of May
Q. 1863 The then editor of that journal
was discussing the financial prospect of
that day and replying to the arguments Of
those who contended against the large
Increase of paper money, "greenbacks." :"
| The article proceeds:
after a years trial of the system an
impartial Judge must decide that 1t has
worked we'll. and that the incidental evils
whatever to the benefits which 1t has
conferred. 1t has increased the cost of
| living, and the market value of all articles
of use. necessity and luxury. But 1t has
! simultaneously increased, and- to a much
greater extent, the capacity Of consumers
! to pay for these articles. II The poor
| man pays more for his tea and his sugar
| and his coffee and his clothes bis labor
commands much higher wages, and all the
articles he produces. by agricultural or
mechanical labor. fetch a higher price
was in SO great demand throughout the
country as now; never time when an
| Industrious. frugal man could live Better
| on his wages and save more. notwith-
consumption. This lively market for all
kinds Of labor springs directly from the
| effect of the issues Of paper money, which,
coursing through the country like summer
rains through parched fields, have given
! new life to the land, developed agriculture
| and industry, generated enterprise in re-
gions which were dormant and enormously
increased production ana traffic"
| question suggests
| If such an effect WAS caused by an increase
| In the paper money of the country would
not still more beneficial effect result
| from an increase In the coined money Of
| the country by opening the mint5 to the
| free and unlimited coinage of gold and sill
| YER? FRANKLIN H. MACKEY
| Inconsistencies of the Campaign.
| To the Editor Of The Evening Star:
Permit me to occupy small portion of
| your space to call attention to one of the
| most important Of the many inconsistent
| cies Of this campaign. II Is frequently
asserted that the value of the money unit
is determined solely by the market value
| Of tine metal Of when 1t is composed, and
| that this Is regulated by the same laws
that govern all other commodities. Cou-
| pied with this assertion very often is the
| statement that the present low prices are
| due to increased transportation facilities,
| labor-saving machinery and other modern
| commercial and industrial devices. If the
| first of these propositions be true-n the
! value of a standard dollar Is simply the
| commodity value of the gold of which it
| Is composed determined as the values Of
all other commodities are determined. then
some other reason than that assigned must
! be sought for the prevalent low prices.
| If. on the other hand, these prices are due
to decreased cost of production (which in
| cludeS increased transportation facilitieS),
| then the first proposition must be aban-
| doned. For gold, our present sole stand
| ard money metal. has shared with other
commodities the advantages of cheapened
| processes of production and greater facili-
| ties for transportation TO market, and
| should. therefore. be also lowered thereby
| In value. But II gold had been lowered in
| value proportionatey with other comnodi-
| ties, then no more and no less of 1t would
| be required than formerly in exchange for
| other commodities. and prices would. con-
| the other of these irreconcilable hypothe-
| Ses must be abandoned. Either the low
| prices of today are not due to modern in
vention. or the money metal does not de-
| rive its value solely from those laws which
| govern the values Of other commodities.
| That modern invention has cheapened the
| cost, as measured in labor, OF all commodi-
| ties, including the money metals. is so lal-
| pable a fact that 1t can hardly be disputed.
That the value of the money unit has rot
kept pace with this decline is shown by
its increased purchasing power or, in other
| words, the lower prices of all commodi-
ties except gold Hence. we are unavoida-
bly, driven to the conclusion that the value
| of the money unit is not determined solely
and perhaps primarily-by the same laws
| that govern the values of commodities gen.
| orally. And the fact that the value Of
| gold bullion has not declined in the mar
| kets of the world with the values OF other
| commodities shows that instead Of the
| value of the coin being determined by the
value Of the bullion. the converse Is true,
| viz: That the value Of the bullion is de-
termined by the value Of the coin. the
LOT tor hair x1yo hov oih n
| special laws applicable only to money.
| OF course this Is merely a brief s:ate-
| ment in general terms OF very broad
| question. 1t is not intended as an argu-
| ment, but simply as suggestion to those
| to whom perhaps, the matter has not thus
| presented itself. H. w. o.
Inflated Claims.
To the Editor Of The Evening Star:
| 1t is reported by the democrats In Ham
| ilton. Va, that Bryan. Sewan and Rixey
Club of 129 members has been formed. The
| voters in the whole precinct only number
| 16O. The Mckinley and Palmer men claim,
| more thar half of them. The Loudoun
democrats like to brag When Bryan was
nominated, in Hamilton they claimed that
fifty republicans in that precinct were 60
ing to vote for him. but they have never
shown up. In Leesburg they organized a
| Bryan club. and claimed that there also
fifty republicans had joined it, when only
| three that had generally voted with the
democrats were all that they could name.
They remind me of the following frog story
A boy asked a hotel keeper If he wanted
any frogs legs.
| Keepsr-"Yes."
Boy-"WiH you take ten car loads OF
| them?'
Keeper-"No! What do I want with SO
| many? Bring me bushel"
| In course Of time the boy brought him
ter pairs. when the keeper. in anger, said
| Where is the bushel ordered?'
| Boy-"From the noise they made ]
| thought that there were more than ten
car loads, but these are all that could get.
| There amt no more"
| The democrats are claiming New York,
| New Jersey. Pennsylvania, and after a
while they will claim Canada, with Eng
land thrown in. GOLD.
| Loudoun, October %.
| A Flag Day Suggestion.
To the Editor Of The Evening Star:
1t is evident that the suggestion of Mr..
Hanna thai the American flag should be
| displayed generally on the 31st instant by
republicans greatly excited the popocrats.
This excitement was caused by the fear
| that such display would be evidence of the
strength Of Major Mckinley with the peo-
| Dle and to Dreyent its effect the nono.