The San Francisco call., 1896-09-27
oalmVerdict byAmorican
Collage Professors
Cornel Williams, Vassar, Yale, Ann 4rbor,
and Princeton Authorities Hre All
for Sound Money

United States want bimetallism. Our parties
only differ as to the method of securing BIZ
metallism. II it is better it resolves itself, to
my mind, in this one question: Can the United
states alone force this principle (Which all
nations at one time recognized and the United
states and others now wanD upon the civilized
world? Are We commercially strong enough
10 lead out and fight for this principle of BIZ
metallism until it is again recognized? My
youth and consequent enthusiasm may &C
count for my present inclined belief that we
can. If our legislation viii not give silver an
increased intrinsic value all over the world,
and any of the foreign Governments, envious
OF our prosperity or actuated by financial gain
or any other reason, fight our intended help TO
the cause of bimetallism by flooding us with
the still deprecated silver (silver which has
not increased in intrinsic value since our
legislation in its behalD cannot the United
States put tariff on foreign bullion and close
1t out of our markets? Cannot we punish
them besides by shutting out, in the same
way, their goods and manufactures? Cannot
the great doctrine of reciprocity be applied
here?
Please pardon the length of this letter, as
well as any misconceptions here stated. My
excuse is that am anxious to know. Feeling
that reply from you will not only be great
benefit 10 me but to many others who will
read 1t, hope you may have the time to spare
for an answer. Sincerely yours,
F. v. BROOKS.
In reply, Professor Quarles further ex-
emplitied his position by the following
answer:
sTAUNToN, Va, July %, 1895.
F. Y. Brooks, San Francisco, CaL-DEAR SIR:
appreciate your kind words. l am an old
Democrat, and as such take pleasure in ad-
dressing one just entering the lists.
The free and unlimited coinage of silver as
tull legal tender at 16 to 1 would produce
silver monometall1sm by the operation of
Gresham's law that the poorer drives out the
better. We should at once drop TO the silver
standard, and as gold would not buy here
gold dollars worth it would go TO Europe,
where it is valued on its merits. This would
deprive US OF 5000, 900 900 of money, and thus
produce contraction. This would also lessen
the value of all wages and salaries, because
they would not rise in proportion to the fall
OF the current money, and in many cases
would not rise at all, because fixed by law,
custom, etc.; e. g., l would still get $2400
salary, which is now equal to gold but which
would then have only the value of silver
This change of standard would derange prices
and furnish the opportunity to the sharp and
shrewd, while the weaker classes financially
would be their victims.
Yes, there are several kinds of money: Real
standard money, gold; token money, bronze,
nickel and silver; substitute money, gold cer-
tiieates; and credit money, treasury notes
and national bank currency.
1t is not in the power of governments, singly
or combined, to give value to anything. If
they can create one dollar of value they can
create billion of dollars of value; and, If so,
what need of levying of taxes to meet their
expenses? Our trade-dollar, with more silver
than the legal tender, was worth S0eentswhen it
& A..
GreenbacKs in 1864 were worth as little as %
cents on the dollar. These show that the
Government stamp does not give value.
The silver dollar is now worth 100 cents, for
the same reason that the greenback is
worth 100 cents because the Govern
ment backs both with its credit. But the
Government cannot back an unlimited amount
of notes nor of silver. If the civilized world
should agree to the free and unlimited coinage
of silver, silver would doubtless appreciate
somewhat by the increased demand fer it. This.
however, would not make its value permanent
nor bear the fixed ratio of 16 to l to gold. All
civilization agrees to the free and unlimited
use of wheat and rice, and yet their values and
ratio are not permanent There would be less
loss and danger to US il all natl ons agreed to
the unlimited use of silver, because the loss
would not be so great and would be distributed
There GEMS no present prospect OF such un-
United international use.
So far as legislation affects the demand for
an article so far ii affects its value The shut
ting OF the minis of the civilized world against
silver has doubtless affected the use and con-
sequent value OF silver. This, however. has
not caused its great depreciation, which is due
to the conviction of the civilized word that
silver is not suitable by reason of its bulk and
abundance to be the standard money. There
can be but one standard, and gold is recog-
nized as the best metal for that purpose.
There are two uses for money. First-As
measure of values. For this use we must have
a monometallic standard, because no two
things bear constant ratio TO each other.
For this reason the civilized world believes
and adopts gold monometallism.
Second-Money is used as an actual medium
of exchanges in settling balances. For this
gold is used in the largest transactions, silver
in those of a medium character, nickel and
bronze for petty penny purchases. Paper is
more used than they all for making ex-
changes. We want many metals and paper
for actual trading, but we want but one metal
for the measure. Gold is too valuable to be
made into cents and so is silver. Silver suits
for dollars. halves, quarters and dimes. Nickel
and bronze are too base for dollars, but make
good half dimes and cents.
Our present troubles are not due to lack OF
money, still less 10 a lack of silver, because we
udNS now over TWICE d5 uuCu luOAGy us W6 0du
in 1878; the golden age of the silverite; be-
cause, again. in 1873 we had not a single dol
lar of silver in circulation, and had up to that
time coined only about 8, 10000 of silver dol
lsrs in all our history, and now have about
$500, 100000 of silver money which is full
legal tender for all debts. We are suffering
from plethora not from a lack of silver. 1t
is the agitation for free silver which is the
main cause of our present distress, because
the business of the world is in the hands OF
gold men, who will not risk an enlargement
of business with possible silver crisis con-
fronting them.
You see that have written hurriedly and
away from home. If you viii get the February
and March, 1895, numbers of the American
Mag gazine OF Civics, published at New York, you
will find my views at length.
AS patriot cannot vote for the Democratic
ticket this fail. AS / believe the Republicans
for our present legislation, which
I consider fatally defec tive, it is doubtful
whether can bring myself to support them,
even in their present plight, for what believe
to be essential to our welfare-the continuance
of the gold standard. Sincerely yours,
JAMES A. QUARLEs.
It is interesting to know that of those
who made reply to the letters of inquiry