The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-09-15


counter view, the mere physical sim
plicity view, while bimetallists take the
other-that of the essential meaning OF
money as measuring other things, with
its ultimate ana intimate ethical and
social signihcances.
Stability of value, or the nearest
-practicable approach 10 II, IS tne test OF
goodness in money. This IS generally ad-
mitted. The physical simplicity school
aSsum es gold in advance as the perfect
standard. as changeless and invariable,
and then gauges the stability or instabili-
ty of everything elsL, including other
forms of money, by comparison with gold.
BY the other view. however, STABILITY OF
value means constancy OF exchange re-
la.ions to other things, invariability or
purchasing power. II Is submitted that
the latter meaning is the only one that
commends itself TO common sense. Since
value is exchange relation, stability of
value means stability OF exchange rela-
lions. or as applied to money OF pur-
chasing power.
FALLING PRICES.
Failing prices are an industrial, econo-
mic. political ard social evil of almost
unparalleled proportions. They diScour-
age industries, drive money Irom activity
into idleness, from the channels OF trade
into the bank vaults, reduce wages and
throw laborers out OF employment, make
property unproductive and therefore
worthless. destroy equities, increase the
burden OF taxes and all tINed eharSes.
ruin debtors, pile up wealth in me names
of the few, encourage the formation OF
trusts, monopoles and combiTIes, make
producers the prey OF mrddlemen,
strengthen the hold of the merely rlcn
upon the political machinery OF the
state, stife of the spirit Of liberty among
the masses, multiply immortality, and, II
long enough prOtracted. invariably teduS
10 the overthrow and demolition Of the
very fabric OF popular government
II, according 10 the premises, money
IS purchasing power over things IN gen
eral;- and if the value OF q money unit
consists in the amount IL possesses OF
this purchasing power; ana II IalllnS
prices are, IN the ways we have seen,
inimical 10 industrial progress and social
happiness and thus ultimately destruc-
tive OF liberty; it follows that money
both unsound and dishonest; and. If dur
ing any given period, the average ieyei
OF general prices unoerg0es progressive
Iall, this fact itself is an Indictment OF
the money system in operation. The gold
standard. dating approximately from
1873. has furnished the nations attempt
ing &c use it with a money until which
aimee that date. in spite OF short tenn
po-ary periods of relative stability. and
with even slight occasional declarations
toward its former commodity equivalent,
has, upon the whole, constantly risen in
value until the purchasing power of
unit weight of gold is today approximate
ly 100 per cent greater than in 1913.
This indisputable and portentous fact,
of the tremendous appreciation of gold, is
the centrai point OF this great cOntro-
Versy. X Chilly appTenended 1t is alone an
SOlLIelN destructive OF GlstllilS Oii lilG
part OF the gold standard to be consid-
cred q satisfactory money system. Any
such claim IS confronted with the inseD-
cradle fact that during the existence of
that system il has given the gold using
world most unstable measure OF value,
one that has nearly doubled In . years.
The gold standard and permanently
higher prices are impossible companions
The continuance of that system means
continued increase in the purchasing
power of the dollar, and, which is iden-
TfAa1lv- 10 thing "A 11rDrrlCteQ flU
Of general prices.
A CHANGE NECESSARY.
AT present the experiment of the gold
standard Is in a state of incompleteness
10 go on with 1t TO the logical conclusion
OF the gold valuation system IS a pfac-
teal impossibility, while it is equally out
OF the question for the world 20 remain
in its simplicity contemplates the abolition
of every kind of money OF full debt paving
power except gold alone. and the use OF
various forms of credit based on gold In
the ordinary transactions OF business. we
aN see on indication o. this INTENDED
consumption in the various schemes OF
monetary reform recently proposed and
now pending in congress, the so-called
Gage plan. that of the Indianapolis sound
money convention, and that embodied IN
the McIleary bill, all Of which share the
aim so distinctly announced by the sec
rotary Of the treasury, TO commit the
country more thoroughly to the gold
standard and agree in their essential
provisions. They contemplate the retire
money, or greenbacks and treasury notes,
and the reduction Of our standard silver
dollar into q mere promise TO pay in gold
The inevitable result of such a course
would soon be the absolute disuse of sill
yer for money except as small change,
the melting and sale for use in the arts
OF about half n billion Of silver dollars,
aud the contraction OF our circulation to
such a quantity as should be furnished by
our distributiVe share of the worlds gold.
plus such paper circulation as the banks
could keep actually redeemabe in gold.
GOLD STANDARD IMPOSSIBLE.
THE par Of exchange among nations
can be restored in only one Of two ways:
either by the universal adoption of the
gold standard or by the restoration OF |
genuine bimetallisrn, so that all nations
may possess a common measure composed
of the Joint volume of both gold and sill
Yer. But the universal adoption OF the
gold standard is impossible. To say moth
ing Of the folly of attempting its extern
sion 10 India. its establishment In all It's
rigor. even in Europe. would produce such |
cItaclysm Of disaster aud misery due to
the enforced annihilatior of hundreds OF
millions of dollars OF silver and silver sup
ported paper with their sUperimpoSed !
credit, that a socia, CHAOS would super
vene. compared 20 which tbs dark ages
would seem like an arcadiel era
We therefore reach the conclusion that I
the only way 20 bring back a par of ez-
change between sold and silver IS by re-
storing TO silver the fun money opportu-
mites of which il has been deprived by
law: b again authorizing the coinage and
Csa of silver as standard money co-or- !
I'VE contend that by opening the mints |
of the United States to the free coinage |
Of silver. as Wei as OF gold, at is TO /, tho |
fell Of prices would be stopped. This is |
admitted by our opponents. Their fear IS /
of an alleged 'fifty-cent' dollar. and a |
fits cent dollar IS only another name for |
4 hundred pcr cent rise of average prices. |
But the rise would not be so high, nor |
anything like II. The 'hftY-ccnt dollar |
cry is only a campaign catch phrase. No |
afarH 4 .Hrnusm
Introduction Of silver into competition |
with gold would deprive the latter of its /
monopoly OF measuring values and regis /
-ering prices. The endowment of silver /
would greatly add to its demand. The /
eject would be that gold would faii to-
wards silver and silver would rise to- /
ward gold the result being a gradual ele-
walton Of average prices that would even
tually reach n compromise about half /
way between their present level and that
from which they fell. or an advance Of
about . per cent.
EXPULSION OF GOLD.
''But we are told that all the gold in the
country. estimated at over $500. Cos COS.
would be driven out OF the country il the
mints were opened to silver There Is no
more grotesuue figure of speech In fire.
qucnt use today than this Of the gold ad-
NOcates which represents the alleged eE-
pulsi0n of gold. Il is as If the FIRST few
silver dollars that should Dercolate
through the mints We're instantly 10 seek
ont the frightened and unrcsisyng $685.
O-a0o0 of gold. seize It by the cellar and /
eject il from the country. The
process is not that. The sold could not
20 any faster than Il was displaced. Why
has not our gold gore already In fear of
the 500 000.G01 Of silver We now haVe2 TIE
answer is because there is demand for
the gold here in addition TO the use of
the silver. and our scale Of prices Is 80
TO the international range OF low
prices az 10 enable US to hold it. As prices
began gradually 70 rise under the opera