The Advocate and news., 1898-01-05
sHLABOR NEWS


since 1893, common to all gold-using
countries, fall in prices of 20 per cent,
has not grown out OF Improvement In ma
chinery exclusively that the labor cost
of production has not been decreased by
One-fifth in the past years Is patent to
all. Therefore the cause of this fall in
prices must lie In dearer money, due pri-
marily to an appreciation in gold.
Changes in the value Of money have
largely influenced the movements Of
prices during the last half century, and
were great factors In price movements
during one long period. During the
quarter OF a century following the gold
discoveries in California, there was
much progress in the line of invention,
much introducing of labor-savlng ma
chinery, much cheapening in the labor
cost Of production. This, on your theory,
should have caused steadily falling
prices. But what happened? The out
Dourings of gold eheapened gold to a
greater degree than commodities were
cheaDened and the result was that prices
were in general 80 per cent. higher at the
end Of this period than at the beginning.
Then what happened? We, along with
many other nations, closed our mints to
silver. We increased the demand for
gold, with the result that gold went up in
value and prices Of commodities went
down. You must abandon the advocacy
of gold mOnOmetallism unless you can
show that the demOnetizatlon of silver,
and the doubling of the demand for gold
resultant therefrom, has not caused gold
to grow dearer and prices lower to the
great injury to all producers of wealth.
You should at least show that the per-
petuation Of the gold standard will not
result in making money dearer and hui
man flesh cheaper.
"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 |
substitution of bank notes. This you |
hold to be desirable. Why? Would 1t |
not give the banks the power to regulate |
our foreign exchanges, the power to |
check gold exports by contraction and by |
screwing down accommodation to pro-
ducers so as to force them to throw their
products on the markets at prices at
which our foreign creditors would rather
take such product than our gold. Would |
1t not thus relieve the treasury Of the
burden OF providing for gold redemp-
tions and make the banks supreme? This
we hold to be undesirable. It would
make the banks guardian over our vol
ume of money and 80 of our measures Of
values; 1t would enable the banks, work.
ing In the interest Of the spectators to
cause movements In prices with great
enable them to depress prices
by contracting the currency and raise
prices by expanding the same. 1t would
make the banks the masters and the
many the slaves, and would enrich the
few and impOverish the multitude.
I'm the statement you recently made
before the House Committee on Banking
and Currency in support of your bill you
say, and / repeat this trulsm, that the
less the government owes, the less it
will have to pay Yet your plan involves
the proposition of the retirement OF our
national paper currency and greenbacks
upon which we pay no interest at all, and
the issuance Of bonds In It's stead in the
sum Of $2OO,0OO,O 900, for which shall we
owe and upon which we shall be re-
luired to pay interest. The Inconsistency
Of your statement and your plan seems
slaring.
I'VE oppose your currency bill because,
as has been we'll said, 1t is bill to pro-
vide for the abdlcation of the sovereign
powers Of the government to the banks,
For strengthening the hands of the spec
llative cliQues, enriching the few and
impoyerishing the many"
What costive manila noad IA a natural