The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-07-14
Value. Theory and Free Silver.

Value. Theory and Free Silver.
To the Editor of the Globe
The action of the state Democratic con-
yention of Ohio in reaffirming the Chicago
platform has caused no little comment on
the silver question. Trusting that the daily
press seek for the truth and not to carry
their opinions triumphantly through blind
prejudice, ask the opportunity to reply to
recent attacks made against free silver.
One of the points set forth is that prices
should have risen instead of fallen As per
cent by reason of the addition of 1865 900 coo
to the money supply of the United States since
1873. satisfactory reply to this argument
will require a proper definition of the word
value. Values cannot be fairly measured
by variable standard. Gold, like other COM
modtties, is governed by the law of supply
and demand. The prices of all commodities
are regulated according to the supply of and
the demand for gold. Since the price of
gold never varies in dollars and cents but
is liked by virtue of a statute we have the
strange anomaly of measuring gold by gold
me instant we measure gold by commodities
We then discover the enormous fluctuations in
the price of that metal.
think 1t was j. B: Day who gave this
a oe 1td OF value: "Va.ue is the relation
consists in the ability to earn and the ability
to Pay. If the ability to exchange is con-
strained 90 per cent prices fall in proportion;
or, in other words, If the exchange of COM
modties is hindered by virtue of the con.
traction of the currency, and makes a dol
lar again as hard to earn as formerly then
prices must necessarily fall so per cent. Is
there man in this country who will not say
that 1t is again as hard to earn a dollar
today as 1t was prior to 1873?
1t must be remembered that by "contrac-
tlon we do not mean taking a dollar out
OF circulation and utterly destroying it, A
certain morning paper makes this astounding
statement: Within the last eight years the
accumulation OF gold in the financial reser-
voirs of the world has increased 60 per cent"
Yes; and it will continue to increase. This
statement simply confirms the assertion that
money is being contracted-that is Withdrawn
from circulation, and boarded by spectators
ana nnanclers to raise its price artificialy
Inc money trust is like other trusts. The
s s trust mas more than once $50 Cook in
forms us) reduced their working force in
order to create a scarcity of sugar to en-
nance its price artifciaIly Surprising we
nau $lO ooo; 0OjGJ0 in the banks, what benefit
would 1t be to- the people if they caCn9t
get any of it? The contention is that the
money is not in circulation, and thus drains
the channels of commerce. 1t is a remark
aDle TACT That, Notwithstanding the enor-
nous increase of gold in the treasures of the
world during late years there is less money
borrowed for business purposes than ten years
ago, even though the interest rate is clainoad
to be lower now than formerly.
The remedy is true bimetallism: the hrine
ing OF SILVER into competition with gold: also
t tne aoopIioh OF measures to prevent silver
trust by prohibiting an association of si;ver
mine owners seeking to combine their inter
ests. oi
There appears to be a radical difference
Cy11
but the form Of bimetalIism favored hv he
friends of silver is that which prevailed
prior to 1873. p'00
Bimetalism means simply equal onnortuni.v
for both metals, before the law + O The
coinage of both on equal terms without gov
ornamental interference in the circulation OF
eltner OF them; AS it is the government
lnterferes with the circulation of silver since
the government cannot ascertain the exact
amount of business to be transacted in the
future, 1t should not attempt to force
definite of {,,+o
for If it should commerce would expand on!v
IN proportion to the quantity of money in
actual circulation.
currency restricted to the outnut of
god cannot be called an elastic currency.
because commerce must necessarily be con
fined to the circulation of that metal.
The claim made by the advocates of the
gold standard that we have genuine BIZ
metallism. in the circulation of gold and
silver, side by side, is erroneous If. per
chance, the production of god fell one-half,
then 1t follows that the quantity of silver
money must be reduced one-half to prevent
a disparity between the two metals. It was
argued at the time the Sherman bill was
repealed. that If the government continued to
coin $4,30O.000 of silver per month 1t would
cause such great disproportion between gold
them.
Prior to 1873 I doubt If single instance
can be shown in history where gold and
silver circulated side by side perfectly on
equal terms. The people have always de-
pended upon the cheaper metal From 1874
to 1873 the business of the country was trans
acted by means of the jackson yellow bows.
and California gold. This money circulated
freely from hand to hand. Everybody car
ried gold in his pocket, and silver went out
Of circulation. because there was a premium
on that metal Does gold circulate freely
today? No. Let every citizen examine his
little resurve fund and see how much gold
he has in proportion to silver
If the logic of the gold advocate is sound
in assuming that we were on a gold basis
prior to 1873, because gold circulated freely,
then, it would be equally logical to claim
that we are now on a silver and national
bank note basis, because that kind of money
circuates in restricted quantities, while gold
is boarded by spectators and fnanciers
Thus past experience teaches us that when
ever the government restricted the free cir
culaton of either gold or silver, the efforts
have been pernicious Financiers have al
ways sought to have their bonds payable
in dear money. Attempts were made to
demonetize god, in 1858, because gold was
cheaper than silver.
The basis of modern commerce is the re-
tail trade which is carried on a cash basis.
and not with bank checks.
Gold is the money of the rich; silver the
poor mans money, because of its abund-
ance Give silver an equal opportunity with
gold and we will have this much talked OF
prosperity, which is so near, and yet so for.
-Adolphe Paradis.
499 Laurel avenue.