The herald., 1897-12-30
Is Answered by President
Gompers
EVILS OF THE GOLD STANDARD
BRIEFLY BUT VERY DISTINCTLY
POINTED OUT
The Currency Bill Opposed as Enrich
ing the Few and Impoverish-
ing the Many
associated Press Special Wire

Associated Press Special Wire
WASHINGTON, Dec. 29.-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-
tions passed by the federation with ref
erence to the Gage financial bill. Mr..
Gompers says in part:
"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
dishonest measure of values. measure
Of values that interferes with the just
distribution of wealth, that deprives
some men Of part Of their
earnings that Is rightly theirs
and confers it upon others who
have earned it not. Any measure Of
values that thus forces an unjust dis
tribution Of the products of labor, that
deprives the producer of the fruits of
his toll, cuts down wages and profits,
thereby destroys the incentive to en-
terprise, leading to industrial stagna-
ton, enforced idleness, distress and pub
lie suffering.
1.-THE products of labor are divided into
three general shares. One share goes as
interests and rents to the money lender
and landlord, the capitalists who do not
productivity use their own capital, who
seek to avoid the risks of production. A
second share goes as profits to employ
ers, third share goes as wages to wage
earners. The interest charges and rents
are to a great degree fixed and profits
and wages are subject to great fluctua-
tions. This being so 1t Is clear that any
thing that reduces the total money value
Of the products of labor must increase
the share of the money lender and cred
itor though nominally fixed, and de-
crease the share to be divided among
employers and wage earners. 1t is
equally clear that to increase the value
of money must decrease the value of the
products Of labor and therefore enrich
the creditor at the expense of the debtor.
Changes In the value of money have
largely Influenced the movement. of
prices during the last half century, and
were great factors in the price move
ments during one long period. During
the quarter century following the gold
discoveries in California, there was much
progress in the line of invention, much
introducing Of 'abor-saving machinery,
much cheapening In the labor cost of
production. This, on your theory.
should have caused steadily falling
prices. But what happened? The out
pourings Of gold cheapened gold to a
greater degree than commodities were
cheapened and the result was that
prices were in general 30 per cent higher
at the end of this period than at the be-
ginning. Then what happened? We,
along with many other nations, closed
our mints to silver.
"And now, just one word as to the sec
ond resolution to which you take excep-
ton This resolution declares, and you
admit 1t, that the purpose of your cur
rency bill, is to cause the retirement Of
our national greenback currency and all
government paper money and the sub
stitution of bank notes. This you hold
to be desirable. Why? Would it not
give the banks the power to regulate
our foreign exchanges, the power to
check all gold exports by contraction