The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1897-09-18
Watterson on the Gold Fraud.

IRE anu persecution.
WattersOn on the Gold Fraud.
Louisville Courier Journal, March 30, 1886.
People who jump at conclusions are
liable to be entrapped into the error
that If the purchasing power of gold
affect all values alike and equally; con-
sequently that if the universal level of
property and labor valuation were
lowered, the depression would bring
harm to no one, because the original
relation of things wonld be maintained,
being readjusled on new scale.
There are unanswerable reasons why
these propositions are untenable.
First, people who own the gold must
be manitestly richer to the extent of its
rise. The man who has 800, 900 in
gold would be worth 1925, 900, with
olt the addition of coin to his stock,
if the purchasing power of gold ad-
vanced % per cent. The man also
who has gotten his income fixed upon
the gold basis would receive the prop
erty equivalent OF $l2,500 by such
advance "a gold values for every $le,-
600 of interest or dividends, or rent,
stipulated IN his contracts, aud he
would make his gain of 80. 800 on the
gold appreciation without investing
dollar, and even ii he should not
receive an additional coin IN his
income.
TIE debts outstanding in the United
States amount to about $l2, ,0o0, 600
600, exclusive of commercial loans,
predicated on bank capital and depos-
its of 81 900, 900, 900, exclusive of rail
road and other corporate stock amount
ing 10 six or seven thousand millions.
The entire wealth of the United States
OF all kinds was estimated at the last
censue at $42 ,O0O, 900 900. but this in
cluded part of the debt involving a
duplicate count. The total debt is
probably Sl5, ,0OO, GOO, 900, at an appar-
emily conservative estimate, and is,
therefore, "a to 40 per cent of the
remaining wealth of the nation in
lands, buildings, money, live stock,
mines, machinery ard labor. Now, it
needs no argument to show intelligent
people that If a rise, say of 20 per cent,
occurs IN gold between the issue and
payment of those debts, there will be-
robbery of the debtor and gain to the
creditor of an aggregate amount equal
to 25 per cent of the entire amount of
this mass of debt. Without the pay
nent or receipts of single coin more
than was ssnominated in the bond,"
the debtor class would be stripped of
20 per cent more money than they con-
tracted to deliver, and the creditor
class would be that much richer with
out any risk or outlay or expenditure.
This gigantic fraud-for it is nothing
less-upon the natural rights of men,
would be consummated whether the
money used IN liquidation be gold or its
currency equivalent, as il is obvious
that if the gold ccin be raised from 100
to 1875 in value, its currency represent
ative being its equal, woNld also be
equal TO 1875.
If fifteen thousand millions OF debt
be expended in the United States, a
rise of 25 per cent in the value of the
medium of payment would be equiva-
lent to the addition of 1880, 100000
to the wealth of the creditors, and a
spoliation of debtors to the same
amount. II would be tantamount of
crsalIng $3,750, 900, 900 of debt with
out benefit or consideration to debtors,
OF even without their consent; and it
would transfer to creditors who own
the income receiving capital $780,
000,000 of other peoples money, for
which they never did stroke of work
or risked or spent dollar of money.
And this is precisely what has been
occurring since 1873, in that group of
nations which rule the world and CON-
placently call themselves Christian
nations. Productive capital and labor
have been thus despoiled for the benefit
of retired or income bearing capital.
Labor or production and the capital on
which it pays rent or interest or divi-
dends has been robbed for the benefit