The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1897-12-30
Samuel Gompers on the
Secretary's Financial
Scheme.
Why the Federation Of Labor
Opposes the Retiring Of
,Greenbacks.
Fears That It Would Make the Ma
uOnal Banks Of the Country
Supreme.
Special Dispatch to The Call.

WASHINGTON, Dec. 2s.-Samuel
Gompers, President of the American
Federation of Labor, has replied in an
open letter to Secretary Cages recent
letter taking exceptions to the resolu-
lions passed by the Federation with
reference TO the Gage financial bill Mr..
Gompers says in part:
You take exception both to the posi-
uon which our organization has taken
upon your bill. as we'll as the language
employed. Even If you are justified in
the one you certainly misapprehend the
otner L submit that you will seek in
vain for single denunciatory word
eiisner In regard to your motives, your
nunciauon Is not argument, but to de-
clare our position and the statement Of
iact IN regard to a most important
ana far-reaching measure, affecting the
changing of the financial system of our
country, can by no means be construed
as Pronunciation.
Those resolutions declare against your
pan Tor more thoroughly committing
our country TO the gold Standard plan
LOT destroying our greenback currency
ana substituting bank notes-a plan, in
Iect, Tor weakening the control of the
National Government over that most i'm
portant OF all measures, the measure of
Values, and strengthening the banks-a
plan aiming at what you call Currency
monopoly"
The wage-earners of America, repre-
Sented in the American Federation of
Labor, believe that the position taken in
regard to the retirement Of the green
back currency is antagonistic to their in
Ierests, and they are opposed to your
pan Tor more thoroughly committing
THIS country TO the gold standard.
You ASK what evils have resulted from
our adherence to the gold standard.
answer that the evils are those that have
grown and ever must grow from a dis
honest measure of values a measure of
values that interferes with the just dis
men or a part of their earnings that is
rightly theirs and conferS il upon others
VINO nave earned II not.
The products of labor are divided into
tlIee general shares, One share goes as
interest and rents to the money-lender
and landlord, the capitalists who do not
productivity use their own capital who
seek 70 avoid the risks of productions
ers, third share goes as wages to wage
earners. The interest charges and rents
are 10 great degree fixed and profits
and wages are subject to great fiuctua-
tons This being so. ii Is clear that
anything that reduces the total money
value OF the products Of labor must in
crease the share OF the money-lender and
creditor though nominally fixed and de-
crease the share to be divided among en-
ployers and wage earners. It Ia equally
clear that to increase the value Of mo-
HSy must decrease the value of the pro-
ducts of labor and therefore enrich the
creditor at the expense OF the debtor.
Now, II your adherence to the gold
standard has caused money to grow
dearer, you must admit that the gold
standard has done injury to our people
brought distress to wage earners and
employers, and discouraged enterprises
Our adherence to the gold standard has
caused money to grow in value and of
course forced the things measured in
money to fall in price.
You admit that the purpose of vour
currency bill. is to cause the retirement
OF our national greenback currency and
all Government paper money and the
substitution of bank notes This you
hold to be desirable. Why? Would II
not give the banks the power to regu-
late our foreign exchanges, the power to
check gold exports by contraction and
by screwing down accommodation to
merchants SO as to force them to throw
their products on the market at prices
at which our foreign creditors would
rather take such products than our gold :?
Would ii not thus relieve the Treasury
OF the burden of providing for gold re-
demption, and make the banks supreme .
This we hold to be undesirable.
We oppose your currency bill because
as has been well said. cit is a bill to pro-
vide for the abdication of the sovereign
power of the Government to the banks
for strengthening the hands of the spec-
ulative cliques. enriching the few and
impoverishins the many"