The herald., 1896-10-29
THE MONEY LENDERS AGENT


the producer. He told the people of
Southern California that they should
be borrowers of money-that they need
ed to widen their business on borrowed
capital Such advice coming from a
man whose home and interests are cast
with money lenders, It probably would
not be wyongins him to say that he had
| In mind the material interests Of his
neighbors rather than the political am
bitior Of Major Mckinley when he ad-
vised our people to become borrowers of
money. and It is quite natural for such
man to advocate q monetary system
that would keep the supply Of loanable
money below the demand. Under such
conditions the necessities Of the borrow
er gives the lender opportunity to dic-
tate as to the security and as to the rate
of interest. With gold as the redemp-
tion money Southern California bor-
rowers would never be able to pay the
principal. but they could pay the inter
est, and as permanent investments
with interest assured in kind Of mon
ey that would keep articles of consump-
tion at the lowest possible point
are what Mr.. Reed's money lending
friends want naturally he would ad-
wise our people to not only maintain the
gold basis, but become liberal borrow
erS.
In the course Of his advice giving, Mr..
Reed tried very hard to convince his
hearers that they must get the idea out
Of their heads that q 5o-cent silver dol
lar Is as good as a 100-cent gold dollar,
for the money-lenders Of his neighbor-
hood would not like to have returns
made to them for the use Of their gold in
dollars possessing only half OF theinface
value. It matters not to Mr.. Reed how
much the government may stamp and
declare q given quantity Of silver to be
the equal Of 100 cents worth Of gold, un-
less hts money-lending friends give
their consent it would not be "honest
money" and in paying debts with 1t
great and brutal wrong would be done
the lender Mr.. Reed substantially ad-
mits that what the advocates Of free
silver coinage have been claiming Is
right, namely, that the gold standard
makes a half-price for everything ex-
cept gold. Certainly 1t would be dis
honest as Mr.. Reed says. to pay a debt
with silver dollars that were worth only
there could be no such dollars II they
were issued by the government, for the
government declares every one Of its
disks containing 412h grains Of silver to
be as good a debt-paying dollar as a
disk containing 25.s grains Of gold. Mr..
Reeds talk, therefore. about "5o-cent
dollar" Is nothing more nor less than
very thinly- disguised scare crow. The
government could no more coin Co.
cent dollar than 1t could make an 49,
inch yardstick. The proposition is self
contradictory. But 1t Is true that II the
government would open the mints to
the free and unlimited coinage OF sill
yer, silver would be just as much re-
demption money as gold, which IN turn
would cause the market price Of all
merchantable articles to advance and
thus enable the Southern California bor-
rover Of money Of Mr.. Reeds neigh
bors to sell his products at price which
would leave him a satisfying surplus af-
ter paying interest on his indebtedness.
But that would make the lender pay
more for the products of the producers;
besides, in time the borrower would be
able to pay the principal Of his loan. and
because such conditions would obtain II
silver were remonetized Mr.. Reed is op-
posed to making silver redemption
money.
In analyzing the relation which labor
sustains to capital Mr.. Reed was rather
more frank than most goldites. He said
labor could not stand and parley over the
question of wages, because it got no pay
for the time it spent In parleying. La
bor differs. he said, from a barrel OF hour,
for the barrel Of -four could be held for
better prices without losing any Of Its
earning opportunity, while labor sus-
tanned a loss in every minute it spent In
trying to better its condition. 1t is not
the custom Of politicians to compare the
workingman to a cord Of wood or bar
rel Of -four, but the natural speration OF
the gold standard policy is to make Ia
bor q mere commodity, the same as
wood or flour, only that labor sustains
an irreparable loss in every minute 1t
refuses to accept such wages as are