The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-05-31

Sound Money.
The legislature of the state CT Washing
ton has passed bin providing that every
contract. loan, bond or mortgage may be
paid or fully satisfied by and with any kind
Of lawful money or currency of the United
States, a provision OF the contract, loan,
bond or mortgage to the contrary notwith-
standing. A provision in any debt con-
tract. loan. mortgage or bond making the
same payable in d particular kind Of money
or currency OF the United States is de-
ctared to be and made uncomfortable. This
is aimed at the gold clause which has very
generally been inserted in mortgages made
In the West since the silver movement be-
gan 10 be threatening. The constitution OF
tie United States provides that no state
shall enact ANY law inpairing the obIi-
CATION OF contracts" The new Washing
ton statute proposes to defy this explicit
constitutional Inhibition. The courts will
OF course, make short work with IL. It's
adoption was merely bit Of Popuiist bun
combe. The right OF citizen to make a
contract calling for payment in gold. sill
yer. paper. wheat or any other thing OF
value is absolute. and the right OF the cred
itor to enforce the precise terms of the
contract is placed beyond the power of any
state legislation 10 assaii. All business
transactions rest upon the sanctity OF cou-
tracts. In fact. civilization itself may TIE
said to depend upon men keeping their
agreements with each other. No local iegis-
latton can make il legal for man 10 con-
tract 10 pay one sort Of money or other
thing OF value ard then pay in another sort
OF inferior value.
This Washington statute may be re-
ga-ied as a piece Of the driftwood carried
along on the surface OF the great free sill
Yer flood. Washington is a state of mag
nsiicent natural resources, and Is inhab-
it'd mainly by q superior class of settlers
OF American blood. IL enjoyed ten years
of very rapid development after /, was
connected with the East by a transconsi-
mental railroad. There was an enormous
volume of immigration. and Money poured
IN from the Eastern states ana from Hoi-
land for investment. Cities and towns
sprung up as BY magic and Were built n
long way in advance OF the supporting ca
pactty Of the oountrs around them Spec.
ulat.on ran riot. When hard times set In
there was se~sTa reaction. Immtgra ton
ceasa3 and money stopped coming in The
people were thrown upon their own re-
sources THE bubble of fictitious real es-
tate values cola rseG. Lenders wanted
their money when their mortgages ma
sured. Necessarily the hard times were
much more severely felt than In older
communities that have accumulated SIR
plus OF wealth AMI have had time 10 make
The most 81 natural resources The state
is slowly getting out OF the rufs OF de-
FTSSSscfi. however, Dali ifs progress * <sri-
ousiy maaaced by Popsllstic legislation
" a!ch Viii sarely have the effect OF ar;y-
iIs cut capital already invested in loans
and kreQ4ug out money that would other
visa come in for fresh investments
The law inpai-iag the obligation OF con-
tracts IL hot the worst piece OF iaw--naS-
ir< E~oently adopted. That law is urac-
sscslfy harmless because il will bs. de-
clAsea auil and void by the courts. An
act raising 10 500 the amount Of r..rx..r,aI
property exempt from execution for debt
and adding SEQ worth % improvements on
laid IL likely 10 work s. real harm q, the
very class OF people IL was dsssxue. TO
oenesat--<sgaaii farmers and ia5orers and
mechanics living in sowns and cities. Add