The herald., 1897-08-21
The Effect Upon Gold

To the Editor of the Los Angeles Her
aid: From an editorial in the Times of
Sunday, August Is, 1897, the following
is quoted: THE theory that gold has
appreciated in purchasing power be-
cause Of the alleged characterization of
silver is shown to be false"
This is not the whole sentence, but ii
is enough to show the opinion of the ed
itor that the act of demonetizing silver
produced no effect on the value of the
remaining lawful money; that is to say,
that it did not enhance the value of
gold. This was quite frequently asserted
at first, but evidently by men who would
not take the trouble to reason upon the
subject, or who were disposed to will
fully mislead others; but perhaps more
frequently the sentiment was dictated
by desire to justify that most fragrant
scheme of robbery. In the latter point of
view the assertion may be deemed, in a
degree, commendable, as indicating the
presence of some conscientious scruples
about the whole bad business
This it is, presumably, that gives di-
rection to the thoughts of the Times man
on the subject, for mad he consulted any
banker, or any bankers clerk, he could
have been informed that money. pre-
cisely like any other commodity, is SUBJ
ject to the laws of trade, for its value, at
any time; that the value of money de-
pends upon supply and demand, the
same as anything else. If money is
abundant it is cheap; if scarce it is dear
If the demand for it is great it takes
more property to fetch the dollar than
when the demand is slack. By reducing
the volume of lawful money in any man
ner and thus making it scarcer its value
is proportionately enhanced. The de-
monetization of silver, by one fell swoop
greatly reduced the quantity of lawful
money and necessarily added very
largely to it's value. The statement of
the fact is evidence enough to support
the position, but if further proof were
wanted it can be found in the extreme
solicitude of the money dealers on the
subject of the restoration of silver to
itS former place as lawful money II
they were not to be affected by the res
toration, why this great anxiety? Can
it be accounted for in any other way?
But if the moneyed men would be af-
fected by the restoration of silver, how
rethey affected by it's decentralization
If their capital was not augmented in
value by that act, it was matter of liz
tie consequence to them, and its remone-
tization would not greatly affect them
pecuniarily. Why, then, should they op-
pose it with so much violence? This,
certainly, should set people thinking.
II does seem strange, that, in this ad
vanced age of the world, men of inteli-
gepce should question "the theory that
gold was apprecia ted in purchasing pow
er by the act of demonetizing silver"
and the more strange when the fact Is
conceded by every writer of standing,
on political economy, and by every etu-
dent of finance in the world. But men of
some conscience, seeing the great in
iquity of the movement, seek to justify
it by assuming that 70 selfish motive
prompted it. They essay, but in vain. to
believe that there was no gain to the ma
nipulators of gold in that great financial
scheme. AS a money making move, il
has had. mo parallel in modern times,
and intelligent men may as we'll con-
fess it. An honest confession of truth
will relieve their souls from embar-
rassment and at the same time open the
door to conversion from the grossesc
of errors c.