Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1896-07-31

Two Metals Is Not Controlled b.
PrOductiOn-The Need Of Nor
J Money Demonstrated, to Keel
Pace with the Aggregation o
Wealth and Volume of Business
By ". b. Fleming.
In view OF the recent declaration o
the Chicago convention in favor of tn
"free and unlimited" coinage of silve
at the ratio OF l6 to l, the question, Car
the United States Gndependent of tlI'
concerted action of Europe) establish
and maintain the parity between gole
and silver at the ratio named, is of in
creasing interest.
Eastern politicians and capitalists
for the most part answer this question
in the negative. The Southern and
Western Democracy have answered in
the affirmative. Both answers being
presumably influenced by personal in
terest, an unprejudiced investigation
may elucidate the probable truth.
The consensus OF impartial scientific
opinion may be said to have resulted
in agreement upon the following
propositions:
l. Since 1873 gold has risen in
value 100 per cent. and silver and all
other commodities fallen so per cent.
2. Under the gold standard gold
must continue to appreciate and other
commodities depreciate.
3. These commodities benefit the
holders of realized riches and persons
with fixed incomes and tend to hard
times, the impoverishment of the
many, and the bankruptcy of the
debtor class.
4. Hence a return to the bimetal-
lie standard is desirable, if feasible.
The only plans suggested to such
return are
First: The Whitney plan OF inter
national agreement. This includes
England. Is it probable that Eng
land will consent to such an agree
ment? She demonetized silver in
1916 and has since steadfastly ad-
hered to that policy. The London
Economist in 1883 said " England be.
ing the chief creditor nation of the
world, it is to her interest to keep the
volume of money as small az possible
in counties from which debts are due
in order to get more of their products
in payment of interest due to her
citizens" In 1886 Sir Robert N
Fowler, Ex-Mayor of London, a mem
Der of Parliament and banker said
The effect OF the depreciation OF sill
yer must finally be the ruin of the
wheat and cotton industries OF
America and the development of India
as the chief wheat and cotton ex
porter of the world" In 1872 the
London Daily News, said," For Great
Britain, pre-eminently the creditor
among all nations, to adopt it would
be midsummer madness indeed.
Bimetallism would shake to
it's foundations the financial fame and
supremacy of Great Britain" In q
late speech, Mr.. Gladstone said ol
England 1t is the great creditor ma.
tion of the world, and it is increasing
ly the great creditor country of the
world" In that speech Mr.. Glad.
stone estimated the holdings OF Grea,
Britain beyond the limits of her king.
dom at $1OOOOOOO,OO0, and admitted
that bimetallism would result in Eng
land making a present of $5OOOOO,.
600, to the world.
VIM. Henry Grenfell, chairman OF
the Bimetallic League of England de-
clares that if we wait for England to
show the way we will /" wait forever"
Since it is to the nterest Of the cred.
itor class to maintain the gold stand
ard, and that class controls the policy
OF England, bimetallism by interna'
tional agreement may be dismissed as
out of the question.
Second. The other plan is for the
United States to 60 it alone.
The proposition is that the United
States shall establish the dual stand
ard, by their own decree, independent
of European action. Can this be doneI
Such experiment is at once new and
old. 1t is old, because we had free
coinage OF both metals up to 1873
It is new, because Heretofore the
coinage of the two metals has been
established upon ratio approximatlnl
the commercial value OF the metals.
Mr.. Hamilton was opposed to at
taching the unit of value to eithel
metal for the reason that to do &c
would destroy the office and character
of one of them as money and reduce
it to the situation of mere mer'
chandise," and he held that "To
annul the use of either OF the metals
as money, is to abridge the quantity
OF circulating medium, and is liable tc
all the objections which arise from q
comparison of the benefits OF full
| with the evils of scant circulating