The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-17
he GOLD WERE DEMoNETIzEp.

There is one supposition in regard
to arguments relating to the financial
question that we have not yet seen
used, but that seems to us supremely
pertinent and convincing. The free
coinage men persist in assuming that
it was the act of 1873, by the congress
of the United States, to which the fall
in silver prices must be credited, and
they further assume that the repeal
of that act by the United States alone
would forthwith result in re-establish-
ing the market standard of that metal.
1t is about this hypothesis, strenuously
denied by the gold standard men, that
the battle RACES. 1t seems to US that
the question can be decided easily
enough by considering what would
happen if similar action were taken by
this country with reference to gold.
The price of gold remains firm, so our
free silver friends say, because it is
fixed by law. Since a certain amount
of pure gold will always command a
given price at any mint in the United
States, therefore the price cannot fall
below that figure. It is not a CONNER
cial condition, they maintain, but a
legal condition, that controls the mar
ket.
Now, assume that the congress
which is to meet in December will pass
an act demonetizing gold, and the pres
ident sign it. Let it be ordained that.
from this time on, there shall not be
coined, at any mint of the United
States, any gold dollar, half-eagle
eagle or double eagle, and that no
such coins shall hereafter be a legal
tender for the payment of any debt
within the United States. Is there
any man in this country, or any other
so foolish as to believe that this act
of our government would have the
slightest effect upon the market price
of gold, or the desire of the people to
get hold Of 1t, and their willingness to
exchange other commodities for If at
the old rate? An ounce of gold, under
these circumstances, would command
the same price as 1t did before in Lon
don, Paris, Berlin, Vienna, st. Peters
burg or any other great or small city
In the whole world where bullion is
bought and sold. The mental attitude
of the people of this country them
selves toward this precious metal
would not be changed; although os
TRACKED by law, it would appeal lust as
strongly to their desire. Knowing its
worldwide exchangeability, they would
accept it as freely in payment for COM
modities, and transfer 1t as readily
from hand to hand at the rate of
% 2-10 grains of pure gold for every
dollars worth of commodities as if
coinage laws and acts of legal tandar
had never been heard of.
1t is apparent to one who gives the
subject the slightest thought that an
act of congress "demonetizing" gold
would be as ridiculously futile as an
act declaring that the Temperatures
should never rise above or fall delow
20 degrees in this latitude, summer or
winter. 1t is to be admitted. of course
In all probability, that, if all the na-
tions of the world that have a lead
Ing part in commerce were to
unite in banishing gold from the list
OF coinage metals, 1t would eventually
react upon the market price of that
metal. 1t would take a long time for
this to happen, because the idea of
value has attached itself so firmly RI
this particular metal in the minds
of all the people everywhere, that thew
would continue to use it for generations
as money metal, with or without
government sanction, at substantially
the old rate. We have seen exactly
the same conditions existing in In
Ola. where established usage yielded
but slowly, although it did yield at
last. TO new conditions. The people of
India having used silver in their ex-
changes from time immemorial. the