The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1898-01-06
AN OPEN LETTER IN ANSWER TO
THE RECENT ONE OF THE
SECRETARY.
ne CONDEMNS The CURRENCY PLAN
Upholds American Federation Reso-
IutiOns md Says There Was Moth
ing Personal in Them-PubIic
Servants Open to Criticism.

ZION OF lIaDOr, mas replied IN an open let
ter to Secretary Cages recent letter
taking exceptions, to. the resolutions
passed by the federation with reference
to the Gage financial bill. Mr.. Gompers
says in part:
you take exception both to the posi-.
ton which our organization has taken
to your bill rs well as the language en-
ployed. Even if you are justified in the
one, you certainly misapprehend the
other. ! sumbit that you will seek in
vain for single denuncatory word,
either in regard to your motives, yonr
plan or your bill. We realize that de-
nunciaton is not argument. but to de-
clare our position ana the statement of Il
fact in regard to most important and
far-reaching measure affecting and
changing the financial system of our
country can by no means he construed
as dcIunciatiOn.
"Ihose resolutions against your plan
for more thoroughly committing our coun-
try to the gold standard, plan for de-
strOying our grcenbacks and substituting
bank notes, Il plan, in fact, for weakening
the control of the national government
over that most important of all meas
ures-the measure Of value-and strength
ening the banks, a plan aiming mt what
you call currency reform and which we
call bank monopoly.
That you should take Offense mt these
resolutions | regret, for the right to eX-
press disapproval of the acts of their
servants is one of the rights held sacred
by the American people, and one you will
freely accord. We do not charge you
with Ignorance, re.ative or absolute or
allege any evil purpose or 'pervcrsity
of motive on your part, implied in your
letter, nor on re-reading the resolutions
will you find them either condcmnatory
or dcnunciatory, as you say they are.
The resolutions are declaratory of the
views of the American Federation of
Labor and are entirely impersonal, for
of all men in public life. we have the
greatest respect for your probity and in
tegrity.
"rhc wage earncrs of America repre-
scented in the American Federation of
Labor believe the position you have taken
in regard to the retirement of our green
back currency is antagonistic to their in
terests and they are opposed to your plan
for more thoroughly committing this
country to the gold standard.
You ask what evils have resulted from
our adherence to the gold standard. i
answer that the evils are those that have
grown and ever must grow from n dis
honest measure of values, n measure of
values that intcrfcrcs with the just dis
tribution 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
triDutiOn OF the products of labor, that
deprivcs the producers of the fruits of
their toll, cuts down wages and profits.
thereby destroys the incentive to enter
prise. leads To industrial stagnatiOn. en-
forced idlencss, distress and public suf-
fcring.
"The products of labor are divided into
three general shares. One share goes ms
interest and rent to the money lender and
landlords. to capitalists who do not pro-
use their own capital. who seek
to avoid the risks of production. A sec
Dnd share goes as profits to employers,
a third share goes as wages to wage
Farmers. The interest charges and rents
are to great degree fixed and profits
and wages are subject to great tluctua-
tons. This being so. it 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
tor, though nominally fixed. and de-
,rcasc the snare to be divided among
employers and wage-earners. 1t is
clear that to increase the value
If money must decrease the value of the
products of labor, and therefore enrich
he creditor Mt the expense of the debtor.
"Now. if our adherence to the gold
has caused money to grow
learcr, YOU must admit that the gold
standard has done injury to the people.
brought distress to wage earners and
employers. and discouraged enterprise.
Dur adherence to the gold standard has
'ansed money to grow in value, and, of
curse, forced the things measured in
money to fall in price.
"Howevcr, it is not alone the cheap
ming of the labor cost of production,
,ut also to an actual appreciation of gold
hat the fall in prices since 1872 has
been in a great part due. And this APP
probation has grown out of he demon
citation of silver, which has increased
he demands for gold.
This is question that every pro-
lucer can answer. Has the fa!! in prices
my earnings? If the fall in
prices has been due only 20 general i'm
proved methods of production, Il lessen |
ng in the true cost of production. he
1as suffered no loss from such fall. |
Moreover. the fall in prices since 1893,
common to all gold using countries. Il
all in prices of 20 per cent, has not
crown out of improvement in machines
that the labor of production
1as not been increased by one-ffth in
ne lGlSt -FOUR years ana tnut Int cause ol
his fall in price must rest in what. if not
II dcarcr money. and was due primarily
o an appreciation in gold.
Changes in the value of money have
largely influenced the movement of
PRICES during the last half century and
we're great factors in the price move
ncnts during one period. During the
luartcr of n century following the gold
discoveries in California. there was
much progress in the lines of invention,
much in production of labor saving ma
'hincry, much chcapenidg in the labor
'ost of production. This. on your the
Try, should have caused steadily falling |
,riccs. But what has happened? The
of gold cheapened gold to
greater degree than commodities were
'heapcned, and the result was that |
,riccs were in general 30 per cent higher |
It the end of this period than at the be-
ginning. Then what happened? We
llong with many othe- nations. closed |
,ur minis to silver We increased the |
demand for gold with the result thai
.old went up in value and prices of com |
uoditicS down. Iou must abandon tho |
dvocacy If gold recommendation unlcs' |
'ou can show that the decentralization |
# silver aud the doubling of the dcman' |
or gold resultant therSfrom has ne |
HuScl gold to grow dcarer and price
over to the great injury of all produ. |
IS Of wealth. You should nj len
now that the pcrpctuation OF the 20
tAuiarl will not result in MAXI
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