The herald., 1896-10-05
COMMON SENSE IN FINANCE

Let US have some plain common sense
in this financial discussion.
The use of metal for money affects
its value as commodity, or it does not
affect it's value as a commodity. 1t
does or it does not. This is plain. If
it does, then the bimetallsts are right
and the single gold standard men are
wrong. If it does not, then the gold
men are on as good or stronger ground
than the bimetallists.
Let us examine the proposition that the
use Of a metal for money does not affect
its value as commodity. This propo-
sition is the basis on which the gold
standard book of J. ]. Valentine, pres
ident of Wells, Fargo's Express COM
pany. rests. This book is by far the
ablest gold book published. By the way
this express company is charged with
discriminating against and delaying the
literature and even the daily newspapers
Of the Democrats and Populists. We
ourselves have repeatedly been obliged
to seek other means Of transportation
for Democratic literature. The gold
standard goes far. fellow citizens. very
far. N.s lg-'4Nt
They tell us that the precious metals
used for money amount to about nine
billion dollars, divided about equally
between gold and silver
The single gold standard men must
say and do say through Valentine that
the use of this mass of metal as money
does not affect It's value as a commodity.
The nine billions of metal now used as
money, no longer so used and thrown
on the general market, 1t would not af-
feet its value as a commodity. Who
can believe this to be correct? It is
proposition that is simply incredible.
Nine billions of anything taken out of
use and thrown on other remaining
use would in the opinion of any sensi-
BILE person affect its value. AS soon as
one thinks out this proposition 1t be-
comes clearly untenable.
We must admit that the disuse Of the
precious metals as money would affect
their value.
The next question then Is, what possi-
BILE escape is there from the conclusion
that the disuse Of silver as money of
standard measuring value would dimin-
ish it's value as a commodity and that
the substitution Of gold for silver as
money and the resulting increased use
Of gold as the measure of value in money
would increase the demand for gold and
increase It's value as a commodity?
How can a plain. sensible man come to
any conclusion different from this?
Silver would go down with lessened
use and lessened demand, while gold
would increase in value and demand
with its increased use as the sole meas
ure Of value.
The explanation of the progressive
shrinkage of values from which we suf-
fer is in the increased demand for the
gold in which all things are now exclu-
sively measured in the United States.
The boiler plate of one Of our converted
contemporaries. converted, we assume.
by reasons Of state to the worship of the
golden calf, sets forth the many nation
al converts to the single gold stand
ard and significantly ends with the hope
that the whole world will soon be on the
single gold standard. Then this disuse
OL SllNcE DIS IilOHcy 10 Ouly UcSuH. we
are to go on with it for indefinite years,
until gold has the monopoly of money.
If the use of precious metal affects
it's value then we must agree that the
constant increased use of gold growing
out of this policy will as constantly in
crease the value of gold. The expressed
values Of all else must shrink. For
years, then, the tide must run against
every investment and every enterprise.
There is scarcely man today in Los
Angeles who, selling out clean five years
ago and putting his money into a well
without use or advantage to anyone,
would not be richer today than he is.
There is scarcely house, lot, a pro-
duct or any property in the United
States that could not be bought for less
today than it sold for five years ago.
This is bad business to continue. To
confront another indefinite series
of years of shrinking value is too gloomy
to attract any sensible citizen. Such
a prospect is more than dull-it is dan
gerous. We have come up to this finan-
cial bridge. We have either got to
stand on the slippery edge and buck and
balk and kick or else cross the bridge.
Let us cross. Let us go over and get
somewhere out of this yellow wilder
MACS nF shrink cbrin1x cl,r;nlr