The herald., 1896-07-05

| sonable people, further added to the
value of gold. The presumption is that
these governmental actions have had an
| effect in producing the rapid departure
, of the two precious metals from their
| former ratio of value. Germany started
the movement after getting the immense
| war indemnity in gold from France.
France followed because Germany un-
dertook to unload it's called-in silver on
the Latin union. The demonetization
of silver by this country took place when
we had neither precious metal in cir
| culation. There is no evidence that its
! action unfavorably affected the value
Of silver except in so far as it may have
increased the value of gold by the re-
sumption of this metal in 1879. On the
other hand, while the government has
purchased some $3.50, ,000,0 900 in gold for
resumption in gold and to maintain that
standard it has purchased within the
same period $3.50 200, 900 of silver to keep
up the price or value of that metal The
effects of governmental action on the
relative values of the two metals isVery
difficult to ascertain. l can only say.that
the PRESUMPTION is reasonable that the
action of the various powers has low
cred the value of silver relative to gold
and perhaps raised the value of gold as
expressed in things.
The straight out gold men do not at
tach sufficient Importance to these argu-
ments. Both of them have force and
demand the attention of the political
economist and the statesman. If we ad-
nit for the sake of the argument that
these points are we'll taken, it still leaves
us as far as ever from the crude reme-
dies proposed. The. exercise of, the,gov-
ernment's option to pay it's bonds on the
silver basis does not necessarily involve
general scaling to the same value of
current contracts. A sudden change in
all contracts not specific as to gold. and
perhaps as to these, to the extent of half
their value, 1t is reasonably claimed
would bring on general liquidation
with all the usual losses entailed by
forced realization. If this was the re-
suit the injury to the people and to the
country would vastly exceed the amount
saved on the scaled-down public obli-
cations. The panic of 1898 was followed
by shrinkage in business which still
persists There is difficulty in knowing
what this shrinkage has amounted to,
but it is certainly large. 1 have not the
bank clearance figures at hand for the
period involved but my recollection is
that in that item alone the shrinkage
from 1891 to 1892 has averaged over two
billions month. I think that it would
be easy for the general business, enter
prise and labor of the country to lose on
a general liquidation the full amount of
the federal public debt every month un-
III the readjustment and recovery. AS
it usually takes about five years to re-
cover from these depressions, it can be
seen that the reputation of the entire
debt would be infinitessimal as an ease
ment compared to the injury to the coun-
Try by panic. The moral question of
the method of paying the United States
debt is as strong for the silver men as
1or the gold men, or even stronger for
silver. The guess that free silver coin
age would produce panic and pro-
longed liquidation is only more rea-
sonable guess than the guess that it will
are guesses. Most of the noisy advo-
produce prosperity-but that is all. Both
Gates OF silver are fiat money men. They
are not for silver. Take our townsman.
judge Utley. whose article in the Arena
on Bimetallism has attracted very favor
able comment from silver men. Be
tween the lines of the judges article
one sees paper money everywhere
His arguments against gold are argu-
ments against silver. challenge Judge