The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-13
STUDIES In FINANCE.

tribution yet made to the literature
of what has now become the all
absorbing topic Of the day. These ar
ticles are prepared by Prof. J. Lau-
renee Laughlin, author of "a History
Of Bimetallism in the United States,''
and professor OF political economy in
the University of Chicago Prof
Laughlin is easily the first authority
in this country on the economic as
poets of the financial question. He.
is perfectly familiar with the history
CT the monetary struggles and the
evolution of currency in this country
and in others. He has what is still
more valuable for our purpose, not
merely the ability of the student, but
the practical common sense of the
man of affairs. He puts the gist of
this matter into the plainest possible
language. He writes, not like the col
u
students, but like the plain business
man talking seriously with other men.
We believe that no series Of articles
of similar value has ever appeared in
this country. We are sure that men
who are anxiously looking for infor-
nation and light upon this subject. no
matter what their present PROPOSES
sions may be- cannot afford to miss
reading these articles, ten in all. in
which Prof. Laughlin will discuss all
phases of the free silver agitation,
especially as related to the interests
of agriculture, manufacture, trade.
commerce, and of every individual in
the country. They will appear in the
q b e exclusively in this territory,
and we offer them to our readers with
pleasure, as special proof of enter
prise in journalism.
The article which appears this morn
ing lays the foundation for further dis
cussion by defining what is meant BY
the free coinage of silver, and stating
what must happen to the money of the
country the moment that this system
should go into effect The proof that
all gold must necessarily disappear
npt Wi aiv
i've. When, under the law, a ma.
could make profit of 100 -, CENT by
trading silver dollars for gold, buying
silver bullion with this gold, hav-
ing it coined and then trading the dol
lars for gold once more, it is clear that
everybody would go into the business
as long as gold dollar was to be
had. 1t is equally clear that the hold
er of the gold dollar would not long he
foolish enough to exchange it on equal
terms. Therefore, gold would vanish
from circulation. This would contract
our currency by about one-third. The
remainder, as Prof. LaughIin observes.
which has now a purchasing power
equal to that Of gold, because the faith
of the government is pledged to re-
deem it in gold, will Immediately sink
to the silver standard basis. This
would cut it, approximately. in two.
leaving us with only one-third of the
present volume of our circulating me-
dunn. This is rather startling re-
suit to follow the policy of those whose
constant cry is that the country needs
more money"
But the most serious fact that Prof.
Laughlin points out is not the reduc-
ton of money volume or the change
in prices, or even the overthrow of
our entire business system, as it has
been built up in the last fifty years.
1t is the absolute stoppage that would
be put upon all enterprise and all in
vestment. The singular delusfon that
labor can get along without capital is
just as reckless in its performances
when it lays hold of the people as it's
companion idea that capital can get
along without labor. When either at
tempts to disregard the just rights of
the other both must suffer. and that
severely. The evils against which the
workingmen of this country in all oc-
equations are crying out today are
the product of a stagnation that is due
to the natural timidity of capital.
These workingmen. whose resources
are their strong muscles and sturdy
hearts, can find no opportunity, unless
there are enterprises put forward
which call for labor To start those
enterprises capital is necessary. Capi-
tai will not venture out Of its retreat
while uncertainty prevails. No man
is going to let $1,000 go out of his pos
get only $500 of it back. and that a
law will be passed compelling him to
take that as complete discharge OF
all that is due to him. Therefore.
buying and selling are at a minimum.
factories are operated only long
enough to supply the demands of the
dayS property Of all kinds cannot find