St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-03-09

fail TO see the use Of proving what scarcely
any sane man Will deny. But Mr. Towne and
his admirers do not trace this effect back Ia
the initial and main cause. Lower prices are
everywhere and most of all due to more fac
lie production and the still more efficient
means of distributing the surplus products.
Nor though claiming the support of the royal
com MISSION is he more accurate in deciding
that the prices of commodities had not fallen
IN silver as in gold standard countries, the
example quoted being the Indian rupee? The
commission, or rather some of its members,
were miSled by interested and mistaken evil
dence. But the illusion was completed by
their failing TO notice that because silver and
commodities fell together the loss in purchas-
ing power of the rupee. though real did not
prima facie so appear? Mr.. Towne is only
another victim, and at a time when accurate
logic would have been priceless possession.
Were 1t otherwise, the British merchant could
convert sterling into 20 per cent more rupees
than formerly, and each retain the former
purchasing poTer. This would give % per
cent additional proft-a proposition which is
on the face of 1t absurd. Mechanically 1t
would engender a new maxim, VIZ: that
things tan appreciated and deprecated rupee)
might be equal to the same thing (the same
amount of goods and yet not be equal to one
another.
Fourth-How sound is the reasoning that
while the adoption of the gold standard by
England, rather the United Kingdom, had
not impaired the relation"-the 151a to l ratio
the same action at the hands Of other govern
ments made a sudden and tremendous lessen
ing Of the mint demand for silver" Mr..
Towne must have fancied himself proving that
at that stage even England was effete. The
appreciation of gold he assumes the next,
the fall in prices as the last and most criminal
result. 1t might be asked at this point if
ever any citizen was honored for increasing
the price of commodities? What a relief 1t
must be to the elementary student to find that
there is such thing as the purchasing power
OF the world, to which all currencies, appreci-
ated and deprecated, must alike and from day
to day conform. He will breathe still freer
on discovering that prices are based on the
cost of production and the demand for the
articles produced that the prices of all COM
modities are thus relative and maintain the
same proportion independently of the kind of
money by which the exchange has been eff
fected, or the money terms in which the vari-
Gus prices are expressed.
Fifth-Nor does Mr.. Towne seem to know
that the commercial ratio during the legal
epoch of 1512 to 1 was no steadier in France
than In England and that the money changers
on both sides profited by the mistaken action
OF the French government. The seigniorage
for coming and the cost of transportation be-
Ing the only offsets to the agio or difference,
the profits were enormous. Any one knowing
anything OF original cost and probable amount
which could now be realized for the silver in
the treasury can form an estimate of the
costliness OF such experiments to the national
taxpayers.
Sixth-The relation supposed to exist be-
tween the nation and the bondholders is
simply ludicrous. For if a fallziin prices
means corresponding present from the for
mer to the latter the CONVERSE rise in
prlces-must turn the donor into the donee.
SeVenth-Mr. Towne readily steps into the
pitfalls which Prof. Andrews dug for him
sell, and into which he alone should have
faIien. Both are now responsible for the
fallacy that because there has been a fall of
prices, !. e., more facile production; ergo the
national debt has increased by so per cent
The worthy couple ought to know that the
potentlallty to produce and pay. had been
even more than correspondingly increased.
Elghth-A great deal of rubbish has been
written and spoken land both Prof Andrews
and Mr. Towne have been liberal contribu-
tors) on the so-called over-production of sill
yer. The enormously increased output and a
contemporaneously decreased demand could
nave no other effect than a decided fall in
prices. The abandonment of silver as prin-
cIpal money by. the commercial nations
(England included) was the main factor on
the side of the demand.
Ninth-When Mr.. Towne goes outside the
province of currency he shows as concu-
sively the absence of a logical turn of mind.
do not complain of his spreading the eagle
over the great Republican policy for he
candidly admits that its sphere is in some
degree limited; THAT 1t cannot do everything.
Handicapped by. the gold standard, it can
only work out a portion of its proper re-
suits" Bimetallism he calls 1.-The other half
OF protection, and from one point of view
this is admissible For the great Republican
party looking to the loaves and fishes and
relying at that time largely on the votes OF
1.-THE "silver states,' could scarcely refuse to
the miners what they had so literally dealt
out to Eastern manufacturers. To this feat
ure was really due the passage of the Sher-
man act-that mistake which has proved sc
costly to the United States. 1t is after all
part and parcel of the mistaken fiscal policy
OF which the popular misnomer is protection
Verify the free coinage Of silver would &c
some length to form the moiety of which Mr.
Town is in quest.
Tenth-Mr. Towne says the premium paid
for the gold standard is so per cent in the
| goods produced in the United States. 1t is
difficult, nay impossible. to justify such rea-
! soning; for it could not be maintained that
| if the United States had been on a silver
| basis, the goods sold to silver standard
! countries, prices would have been higher
either at home or abroad.
| Eleventh-Mr. Towne and his coadjutors err
roneousy call metallic money primary mon.
| ey," and fail to see that paper under IA
vorable circumstances equally we'll perform
! the functions. But, besides, they cannot evil
IDENTIFY draw the proper conclusions from un-
! contestable facts regarding the substitutes
| for money which by no means possess its
| attributes. If the country with a large vol
ume OF metallic money. were. the -rich,, an6
| one with less the poorer country, then how
! is it that Great Britain, with half the metal.
lie money does twice as much trade as
France and derives therefrom more thar
| twice the profits. More money" is the CRY
of the unsophisticated and unlearned, ant
among whom Mr.. Towne must in an econ
omic sense still be classed. Like all veal
students, he assumes an air of comfort anC
congratulates himself on the probability Of
| the people DelllS again leu along the pains
! of prosperity by the Republican party" Il
! he were an accurate analyst he would dis
! cover that the foundations of the present
distress were laid by the belauded party
! even long before Mr.. Cleveland entered or
| his first term. Which party promoted tho
! overgrown railway system, out of which
such gigantic steals were made? Which al
| lowed thousands of useless and closely par.
/ alleling lines to be built? Which looked
with complacency on the stock and bond
watering on which the people have beer
/ called to pay but often could
not pay the interest. Wher
the capital and interest borrowed for these
uDneeded railways and scores of other similar
schemes came home to roost the bad times
began. And the silver advocates did a grea
/ deal to intensity the disasters which followed
! the realization by foreigners of the returned
securities. The railway Indebtedness is abou
! 81 ,750. 600, 600: state, county, municipal ant
/ corporation debts. of one kind or another will
! be another $1.250.00O00 900. OF this, at leas
one-third or 81 900, 900 600, will be in foreign
hands, and involve an annual interest pay.
ment of $50 ,000, 900. Installments of one-tentl
! of the capital would mean another $780, 900 900
And this is the condition of the country which
Mr.. Towne considers capable of carrying GU
| independently the free coinage of silver.
| Twelfth-When pressed as to whether fire;
coinage of silver would send gold to a premium
| he gave the unsatisfactory answer, Yes,
| small premium. How small, / ask? H,
ought to know that as soon as the secretar,
of the treasury paid out silver for "con.
and instead of gold, the former would fall IL
81 cents, or the commercial value, and golt
be at corresponding premium as in Mexico
and other silver standard countries.
| Thirteenth-Mr. Towne saws the gold stand
ard depresses prices, and both it and free trad,
"aim at low prices" I will take the egh
commodities cited by Prof. Andrews and re
| cited by Mr.. Towne and show then
that six of the eight are dearer
IN Great Britain than in any silver standard
| country in the world or in any protected on,
| whatever, the United States included II
this category it is safe to put beef, corn
| wheat. oats. pork and cotton. Coal is mucl
the same under similar circumstances in tn,
civilized countries and iron only is cheape
in Britain than any new country.