The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-10-20
and silver dollars: The name Of bimetai-
lism annot be invoked IN favor Of repu-
diation.

use the power of the Government to limit
the supply Of money in order to prevent
nit the right of the Government TO in
crease the currency when necessary 10
prevent Injustice to the DEBTOR,
The immediate effect of free coinage of
silver would be to contract the currency;
ultimately it would initiate the currency.
The only manner in which infation could
protect the interest of the debtor would
be by enabling him to scale his indebted-
ness and make a settlement with his
creditors in deprecated money. But Mr..
Bryan elsewhere has said that the effect
of free coinage would be to raise the price
OF silver bullion in the market to sl.2s per
ounce in gold.
Both of these statements cannot be true.
The silver dollar cannot at once appre-
ciate and depreciate in value. This is the
fetal dilemma which forever confronts
the advocates Of free coinage at a false
ratio.
FREE COINAGE AND EXPORTS.
August Is, 1S93.--If our gold goes
abroad, Europe will have more money
with which to buy our exports-cotton
ana wnea cattle and hogs. #. on the
II from Europe and thus lessen their
money and reduce the price of our ex-
ports in foreign markets. This, too, would
decrease the total value of our exports
and increase the amount of products
which 1t would be necessary to send
abroad, to pay the principal and interest
winch we owe to bondholders and stock
holders residing in Europe"
Mr.. Bryan ignores the fact that inn
ports are paid for with exports, and that
on account of importations is only so
-n,,o - L, -1zz- = - L. 80 n
when the balance of trade happens to be
against US. Europe needs no more money
than she has to buy Of us what she wants.
and she would not buy any more II she
had more money than she has. No politi-
cal economist of reputation has ever
taken the position that it is advantageous
to any country to adopt an overtrading
policy calculated TO drive money out and
put it in the hands of a commercial rival.
Besides, the avowed purpose Of free coin
age of silver is to make money plenty at
home. 1t cannot have two opposite effects
at once. 1t cannot make money plenty
here and plenty abroad at the same time.
a BRYANTS HONEST DOLLAR.
b August is, 1S9S.-'Tf I borrow. a thous-
and dollars today, and next year pay the
debt with a thousand dollars which will
oECAIE tA6Clly as MUCH Oh 8il I11fgS de-
sirable as the one thousand which l nave
borrowed. I have paid in honest dollars.
II the money has decreased or increased
in purchasing power. 1 nave satisfied my
debt with dishonest dollars"
Debts are not paid las a rule) with
money, but with property of some sort,
including bank credits with property.
The value of property sold, for which
payment must be made. is estimated in
dollars and cents; SO is the value Of the
property given in exchange for 1t. In
ninety-fve pre- cent OF the transactions
between American citizens no money
changes hands. If payment is not de-
ferred, the problem is simple, so long as
both parties to the bargain measure the
value Of their respective properties by the
| same standard. But if payment is de-
ferred the element of perpetual fiuctua-
ton in values gives a certain speculative
flavor to the transaction, which cannot
be avoided.
If payment were made in wheat instead
of in money this would still be true. A
farmer borrows one thousand bushels Of
wheat from his neighbor one week; next
week he returns it; meanwhile it may
have risen or fallen in value one-eighth
| VI d II q DASA2-l. ANCf<itAEtCSSs "A Az
lender agreed to take one thousand bush
els of wheat in satisfaction Of the debt,
the farmer who returns exactly as much
wheat as ne borrowed cannot be branded
as dishonest, and his wheat is honest
wheat.
According to Mr.. Bryan's view, an hon
est dollar is an inpossibility. since it is
clearly impossible that any dollar should
secure exactly as much of all things de-
sirable'' III two successive years. The in
ference would be, that there is no such
thing as honesty among men. But. taking
his definition of an honest dollar, the
dollar which comes nearest to being an
honest dollar is the gold dollar, for the
value of gold fuctuates less, in relation
to the value Of all other commodities
thai does silver.
This definition of an honest dollar is
inaccurate and misleading. It was in
vented TO escape the force of the observa-
ton that the man who borrows money
every dollar of which is worth one hun
bred cents in gold, and repays his debt
with dollars worth only ffty-three cents
in gold, is not an honest man. It is a con-
temptible and unsuccessful evasion of the
issue.
An honest dollar is a dollar whose value,
after the removal of the Government
stamp upon it. is the same as before such
removal; or, if not of the same intrinsic
value as bullion. one which the Govern
ment undertakes and is able to maintain
at par with every other dollar upon
which it puts its official stamp.
THORN CLUB CRITICIZED.