Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1896-08-18

debts are twice their business capital,
though one-thfrd less than their actual
property Il means the fall of all agricul-
tural production without any great re
duction of taxes What prudent man
would dare TO build a house, q railroad, n
factory or a barn with this certain fact
before hlmf"
Blaine Opposed the Gold Standard.
Mr.. Blaine discussed the same principle
in connection with the decentralization OF
silver. Speaking in the house of represen-
tatiyes on the 7th OF February, 1873, he
said: Il believe the struggle now going on
in this country and other countries for a
single gold standard would, If successful.
produce widespread disaster in and
throughout the commercial world The
destruction of silver as money, and the
establishing of gold as the sole unit OF
value, must have q ruinous effect on all
forms of property, except those invested
which yield fixed return in money. These
would be enormously enhanced in value,
and would gain disproportionate and
unfair advantage over every other species
of property"
If the relatively few whose wealth con-
siSts largely in fixed investments have n
right to use the ballot to enhance the
value OF their investments. have not the
resp of the pCsiple the right to use the
ballot to protect themselves from the
disastrous consequences of a rising stand
aris The well being of the nation-aye,
of civilization itself-depends upon the
prosperity of the masses. What shall it
profit us to have dollar which grows
more valuable every day If such a dollar
lowers the standard of civilization and
brings distress to the peoplef What shall
it profit us IL in trying to raise our credit
by increasing the purchasing power OF our
dollar we destroy our ability to pay the
debts already contracted by lowering the
purchasing power of the products with
which these debts must be paids
II, as it constantly is asserted, the gold
standard will enablo us to borrow moro
money from abroad, reply that the res
toration of bimetallism will restore the
parity between money and property, and
thus permit an era of prosperity which
will enable the American people TO become
1oaners of money instead of perpetual bor-
rowers. Even il we desire to borrow, how
long can we continue borrowing under n
system which, by lowering the value Of
property, weakens the foundation upon
which credit rests?
Not New Experiment.
We are not asking that new expert
mcnt be tried; we are insisting upon n re-
turn to financial policy approved by the
experience of history and supported by all
the prominent statesmen of our nation
from the days of our first president down
to 1873 When we ask that our mints be
opened to the free and unlimited coinage
of silver into full legal tender money we
are simply asking that the same mint
privileges be accorded to silver that are
now accorded to gold. When we ask that
this coinage be at the ratio of 16 TO 1 we
simply ask that our gold coins and the
standard silver dollar-which, be it re-
-
pure silver as the first silver dollar coined
at our mints-retain their present weight
and hneness.
The theoretical advantage of the bime-
tallic system is best stated by European
writer on political economy, who suggests
the following illustration A river fed
from two sources is more uniform in vol
une than river fed from one source-the
reason being that when one of the feeders
are swollen the other may be low, whereas
a river which has but one feeder must rise
and fall with that feeder. So in the case
of bimetallisnI, the volume of metallic
money receives contributions from both
the gold mines and the silver miles, and,
therefore, varies less; and the dollar, rest
ing upon two metals, is less changeable
in its purchasing power than the dollar
which rests on one metal only.
1t is constantly assumed by some that
greenbacks, and tho treasury notes, issued
under the act of 1890, are responsible for
the recent drain upon the gold reserve, but
this assumption is entirely without foun-
dation. Secretary Carlisle appeared be-
fore the house committee on appropria-
tions on Jan. 81, 1895, and 1 quote from
the printed report of his testimony before
the committee: Said Secretary Carlisle:
A Quotation from Carlisle.
''The policy of reserving to the govern
ment, at the beginning Of resumption,
the option of redeeming in gold or silver
all its paper presented. believe won Id
have worked benefcially. and there would
have been no trouble growing out OF IL,
but the secretaries of the treasury from
the beginning of resumption have pur-
sued policy of redeeming in gold or sill
yer, Mt the option of the holder of the pa
per, and if any secretary had afterwards
attempted to change that policy and force
silver upon a man who wanted gold, or
gold upon man who wanted silver, and
especially IL he had made that attempt at
such critical period as we have had in
the last two years, my Judgment is it
would have been very disastrous"
do not agree with the secretary that It
was wise to follow bad precedent, but
from his answer IL will be seen that the
fault does not lie with the greenbacks and
treasury notes, but rather with the execu-
tive officers who have seen fit to surrender
+ right which should have been exercised
for the protection of the interests OF the
people This executive action has already
been made the excuse for the issue Of more
than $3.50, 600 600 in bonds, and it is inpos-
sible to estimate the amount OF bonds
which may hereafter be issued IL this pol
icy is continued
There is an actual necessity for bimetal-
lisn, as well as theoretical defense Of it.
During the last twenty-three years legis-
lation has been creating an additional de-
nnand for gold, and this has resulted in In
craasing the purchasing power of each
ounce Of gold The restoration Of bimetal-
HsIn In the United States will take away
from gold just 50 much of its purchasing
power as was added to it by the demoneti-
cation of silver by the United States Tho
silver dollar is now held up to the gold
dollar by legal tender laws, and not by re-
demPtion in gold, because the standard
silver dollars are not now redeeInable in
gold either in law or by administrative
policy.
We contend that free aud unlimited
coinage by the United States alone will
raise the bullion value OF silver to its
coinage value, and thus make silver bull
lion worth 81 % per ounce in gold through
ont the world This proposition is in
keeping with natural laws, not in defiance
of them. The best known law OF com
merce is in the law of supply and demand.
We recognize this law and build our argu-
ments upon it We apply this law TO
money when we say that reduction IN
the volume Of money VIII raise the pur-
chasing power of the dollar. We alsoopply
the law of supply and demand TO silver