The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-07-14
Free Coinage, He Says, Would
Not Increase the Circulat-
ing Medium.
TRUE FUNCTIONS OF MONEY
Used Only in Small Dealings ant
Confidence Brings 1t From
Hiding.Piaces.

SPOKANE. WASH, July 13.-Hon.
Charles S. Fairchild, Secretary OF the
Treasury under Cleveland during his first
administration, was seen by CALL corre-
spondent here to-day. When asked for
his views on the financial situation and
the planks in the two platforms he said:
Il differ from the view! of your people
in the West. do not believe in free sill
yer. am not even an international BIZ
metallist."
You are a straight gold man, then?"
"No, can't put it that way, either.
There is a misapprehension on the part OF
the people of the true functions of money.
They seem to believe that the Government
can regulate the whole matter. while this
is not the case. Great parties are resolv-
ing for this or that, and they might just
as well resolve at what time there would
be an eclipse of the moon.
lit is said that by free coinage we would
have a larger circulating medium and as a
result there would be a rise of prices and an
increase in prosperity. DO not hold that
this would be the case. The circulating
medium is not the amount of money but
the credits. In this respect confidence in
one another aids in extending the circu-
lating medium. Few. indeed, are the
transactions actually com passed by the
use of money. In small affairs it is used,
but in all large dealings it is a passage of
credits or settlement of balances. In the
road which we are to purchase to-day, if
we were to pay actual cash and were 10
use silver money, we would have TO add a
couple OF cars to our train to carry money
along"
Mr.. Fairchild referred to the purchase
of the Coeur d Alene branch of the Oregon
Railway and Navigation Company's line.
which was to-day acquired by the reorgan-
ization committee. Continuing, he said /:
'I even consider gold too cumbersome
to be used in transactions. In buying the
road there is only a settlement of balances
ana transfer of credits"
"Do you believe that by free coinage
there would be an advance in prices?"
81 am not sure but this would be the
result You charge more for an article in
poor money than you do in good, and you
would get larger prices for products in the
same ratio that silver money is poorer
than gold. There is but one class that would
be benefited, and that is q small number
when compared with the whole people.
Those who have debts TO pay antedating
the introduction OF silver would, to the
extent that they could pay in cheaper
money, be benefited: but this is a very
small class indeed. Only per cent of the
debts of the country antedate the year in
which they ere liquidated, while the great
bulk of ali debts-the daily transactions.
the SO per cent-are liquidated within the
year. What We want is money that is
good anywhere, and on which is based
large credits. You know perfectly we'll
that you would loan q man S. If you had
perfect confidence in him, his honest in
tegrity and ability TO pay, although he
might not own a cents worth of property.
When You do that you have increased the
circulation Just TO that extent.
But them" said the general, as the
train was about to pull out, II was not
going to give an interview until I sat
down and carefully thought over Just what
l wanted to say"
"Will the action of the Democratic con-
vention at Chicago in adopting free
silver plank result in the gold wing OF
that party putting up a separate ticket7''
II am sure / don't know. / have had
but little time to look after politics, and
all know is what / have seen in the
papers"
"If they do not, can the free-trade DEM
ocrats vote for Mckinley, even with the
gold plank, when the Republican party
says that the tariff is the issue?'
I'VE have tariff enough" said he, as he
took his seat at the breakfast-table and
the train drew out, land l guess it won't
hurt to get in and stop this wiIdfire."