The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-09

| III the court room, and long before the
| time for the speaking every seat was
| filled, While many left unable to gain adj
mittance. Never was crowd more atten-
| tive or better behaved
DIR. Stott's Speech.
DR.. Stott, in beginning, stated that for
twenty-four years he had been teaching
the value of money in economics, and that
his talk would embrace the same doctrines
he had been teaching in his classes and
would teach this year. Because of the
vital issues at stake he spoke from a sense
OF duty as well as in answer to an invita-
ton. His speech, in part, follows:
II can but remember that tonight am
addressing Veteran League Club. The
veterans were among those who helped to
decide one great national question in 1861
10 1850. With some of you l have stood
shoulder to shoulder in many battles for
the Nation In my Judgment there has
the present one since those of 1860 and 1864
We then did what we could for the per-
petulty OF the Nation; it seems to me that
we are now called upon to work equally
earnestly for the prosperity of our coun-
try
THE question has been asked whether I,
representing institution where ali
shades of political belief are held. ought to
take any active part in this campaign.
The question with NE is rather whether
have right to be silent at such a time,
and know that l can speak freely to you
common experiences of suffering, service
and victory; and, inaSmuch money has
been one Of the subjects which / have
taught regularly for more than a score of
years, you Will grant that l know some
thing of the subject unless have lacked
both ability and earnest study. This is
campaign not of rhetoric, but rather of
logic and ethics. The one question which,
above all others, we are called upon to
follow me for brief time in such a study
Whatever be our definition of money, we
must all grant that it is a medium of ex-
change, and facilitates exchange in way
that never could be reached by barter. The
nations have agreed that the precious met
ais shall constitute our money. One Of
the very first qualifications of money is
that the metals used shall have intrinsic
value There is true money, in the
best sense, which is not worth much in
the form of bullion as of coin. In other
words. money. cannot be created. 1t is the
product of labor. Another principle which
is fundamental in any discussion of mon
ey is that there can be but one standard.
there cannot be more than one standard.
any more than there can be more
than one standard for lineal meas
principle which we find true is that
the tendency has always been from the
less precious to the more precious metals,
until at last the most civilized nations
have come to adopt gold as the standard
with silver for subsidiary coins. And the
son is there why there should be great
value wrapped up in the metals which
constitute our com. Inc question might
arise as to which of our two precious met
ais constitute the best standard, and we
may say in reply that the metal which
varies least In its value, other things be-
ing equal, should form our standard. SUBJ
Jected to such a test, gold is a better
standard than silver, for while silver has
varied from $1.36 to 6S cents in thirty-sev-
en- years, gold has had no such variations.
Another qualification for the best money
is that it shall be universally acceptable.
This is true of gold, but not of silver
Another principle which is found to be true
is that which is called Greshams law,
namely, that when two kinds of coin
used of different values the cheaper will
run out the dearer So much for the the
oretical side of money. Now we come to
ask ourselves whether this theory is sup
ported by such facts as we have access
to. In the first place, it has been said and
stated as a fact that gold is too dear to
constitute a standard as compared with a
large and representative number of the
For instance, it has been said that since
the adoption of the gold standard in 1878
all ard Prio tha nave od gone down or, IN other
ted The facts do not warrant this con-
clusion. In 1872 corn was worth "a cents
bushel, in 1894 1t worth As cents a
bushel; fat beef in 1872 was worth about
$40 a fat beef in 1894 was worth about
$50: in 1872 a bushel of oats was worth 90
cents. in 1894 a. bushel of oats was worth
80 cents. In all of these cases the prices
of the products have appreciated. The
wheat, but the cause is to be found in the
great abundance of these crops; moreover,
find investigation, that there
more value in the corn crop than in both
the wheat crop and the cotton crop put
together. 1t has also been said that since
the adoption Of the gold etandard the price
of labor has constantly gcne down. But an
examination of the statistics will prove
that wages increased from 1860 to 1880 IS
per cent in money and Y per cent. in
purchasing power.
MONEY AND PRICES.
1T IS also found to be true that the
volume of money does not decide either
the price of the products or of labor, for
while in 1877 our circulation was s729 900, 900,
in 1896 it is twice as much or 81, 500 600 0o0
And be it remembered that our pop
uIation increased in no such ratio. The
present low price of silver bullion is due to
the fact of the great relative supply,
and that is a. law of all commodities The
amount of supply decreases the value
Again, it has been thought and said that
the governments stamp the precious
metals is all that is needed to make them
valuable and equally valuable. The truth
is that the government stamp adds no
value at ALL 1t simply indicates that this
certain round piece of metal is of a certain
weight and certain hneness of quality.
The intrinsic value depends entirely upon
come now to ask directly what the in
duence of the free coinage of silver would
silver would dron in price to its bullion
value at once. II the question be asked
Why is it not rated at It's bullion value
the government has pledged itself TO re-
deem all of it's silver dollars in gold If
the question were further asked why the
government could not continue to so prom
Use, under free coinage. the ready reply is
that it would have no power to make such
a pledge The only way in which the gov
eminent can pledge itself TO redeem its
silver dollars in gold is that it have the
power to limit the supply OF silver dollars;
and free coinage takes away all such
limit. The argument that has been used
viz. that as soon free coinage is a fact
the greater demand for silver would bring
it w to 100 cents on the dollar may be
fairly met by the statement that. sometime
since while the government was coming
silver at the rate of two TO four millions
a month. the bullion price OF silver did not
appreciate. but constantly declined. An
would be- How has IT come to pass in
our country that any body Of men have