The Indianapolis journal., 1898-01-26

Gus effect of a gold appreciation falls. II
is upon those who own the land, the forest
Gus effect is visited This is all so plain
that one cannot comprehend how the wage
Garner can be misled by that iridescent
orator who, by multtudes of words, couched
in ambiguous and sophistical phrases, seeks
to obscure judgment.
AN EXAMPLE.
II know of nothing which presents this
whole subject under clearer or more COM
prehensive view than was afforded in the
fall of 1895 in a short private discussion be-
tween two men. whom will call A and B.
Mr.. A-What do you think, Mr. B, of this
silver agitation, what will be its outcome?
Mr.. B-Within two years we will go to
the silver standard in the United States,
and believe it to be for the interest of the
people of this country to reach that result
at the earliest possible moment
''Mr. Al am surprised at such a state
ment from you. You are a student of such
questions-a business man of experience in
affairs. 1 know that you are largely inter-
ested in silver mines, but ] would not think
that fact could seriously bias your general
judgment.
'Mr. Bit does not; 1 am interested in
gold mines, as / am in silver mines, but
have larger interests in general affairs than
III both OF these combined l am speaking
for what believe to be the interest of the
Mr.. A-Well, then, won't you kindly ex-
pose to me the considerations which bring
you to this conclusion? You can make the
statement so that | can understand It.
Mr. Bit is this way: Our natural oppor-
TALLY all taken uD: We must now turn our
attention to manufactures. In this we shall
be in competition with other nations, Pro-
lection no longer protects. Cheap
ocean freghts. the submarine ca
bles, the development in credits and the
system of exchanges bring the world closer
closer together.
world competition on even terms. We can
not do it now. Labor is too high. Wages
must be reduced in order that we may pro-
duce on cheaper terms. You cannot accomp-
lish this by any direct method. Labor will
Tesist-Strikes, lockouts and riots will re-
suit. But can't you see that with the pres
ent general wage prices, il paid in silver,
We can on the product of labor, realize in
foreign markets, KIND or money twice as
valuable as that in which the labor cost is
paid. and thus largely increase to the raw
producer and TO the manufactures the
will stimulate manufacturing and prOduc-
tion, as it is now doing in Mexico and Ja-
pan.
interest of the people, and yet the merit of
your proposition if 1t has merit, lies in this,
that by an indirect, but certain, process, it
reduces the relative award to labor and in
creases the employers share. Are not the
wage-workers and the dependent stipendi-
pie?
"Mr. B-Yes: but they will get as much
nominally. as row, even more as time goes
on, and If they ever discover that the diff
ference is against them it will be too late.
In any event, it's better than strikes and
lockouts
"Nr. A-Well, 1 understand you; but I
cannot agree to blindfold one class, while
another class pick their pockets. But, pass
ing that, ] want to ask you what would be
the immediate result to trade and industry
were free coinage of silver on the old ratio
of 16 to l inaugurated?
Mr.. B-Well, that's plain enough. too
We would have a tremendous shock, credit
would be destroyed The owner of capital
would refuse to lend. He would collect mis-
claims. because he would want to own and
control things which by their nature would
rise in value as measured in silver. pari
passu, with the certain rise in gold. Nearly
all present debtors would be ruined, and for
while business chaos would follow.
myself owe largely, but propose to pay it
all off before the storm comes, and then
| wait for the readjustment of things.
A SEQUEL TO THE STORY.
"This dialogue is faithful reproduction
of talk between two men, who spoke to-
gether without disguise, each of whom un-
derstood the true philosophy of the ques-
tion. There is a sequel to the story which
ought not to be lost: Mr.. b.. the energetic
advocate of the silver standard, refused
later to support the Chicago nominee. He
refused publicly to meet demands upon him
for contributions to support that nominee.
He voted for Mckinley. Why did he do
this? His answer is instructive and bears
directly on the question: Il found he said,
when I tried to negotiate my securities,
issued against the great constructive en-
terprise in which my fortune and credit
We're involved, that credit already
shaken and my enterprise was not Suffi-
GENTLY advanced toward completion. More
capital was necessary, and L knew that If
Bryan should be elected my enterprise
would meet with disaster-my credit lost
my fortune destroyed Now he said in
EpI1f1 nrxr fhn al nv iC
open to me; / shall have the satisfaction of
success. and / shall realize my dream of
Dargg INTO Tgon Of neone Who Who %
there find industrial opportunities and hap
| py homes
"Mr. BIS preliminary analysis of the ef-
| feet of free coinage of silver upon wages
and stipendiaries of all grades was, I be-
lieve, perfectly correct His discovery of
the disastrous consequences to enterprise
requiring the control of capital by aid of
credit. which would follow the success of
opened his vision to the broader fact. that
while, In the great industrial fields. the in
terests between employer and employed
may involve differences of opinion as to
their respective rights and duties from and
to each other. they have one common
united interest in the stability of the state,
the integrity of the money standard, the
freedom Of capital and the uninterrupted
power of credit to control and direct 1t to
productive ends.
''While Mr.. &. believed the wage Garner
could be made to bear the burden of a de-
graded standard another as ardent as he
once was expects that the burden can be
thrown upon the recipient of official salaries
and fixed incomes. In other words, as be-
lieved and hoped for by him, the expenses
for food, shelter and clothing will be in
creased, as measured in dollars, and the in
crease will go to the producers OF things.
But, as already seen, there are three factors
In production-land, labor and captal-and
the increased prices would be divided in
some proportion between the three.
1T is the complaint now of labor that rent
and interest are able to take to themselves
a disproportionate share. Would there be
|. anything in this proposition to modify this
the tendency of wages is to become con-
Nentionally fixed. and that a rise in the
rate. though 1t follows the law of supply
and demand, is not so quickly responsive
TO that law as are wares and merchandise
the product of labor?
1T would thus appear that an effort to re-
duce the power of official salaries and fixed
incomes by paying them in cheaper money
would have an effect in the same direction
upon wages. Besides this ii must be re-
membered that fixed incomes is relative
term; it includes the few upon whose large
income the decreased power would not be
noticed an Inconvenience even, but il
includes also the humble investments of the
multiplied thousands and would blight with
its mildew the result of toll ard economies
five millions of people, now held in the saw
ings banks of our land No, 1t VIII not do:
this silver scythe with which this man
would trim down official salaries and fixed
incomes cuts too deep. Il reaches the
Widows mite and the wage earner's pay.
BRYAN'S UNTRUTHS.
THE revival of industry now witnessed
and the easy condition as to interest which
now transfers capital are the best witnesses