Iron County register., 1898-11-24
The Monetary Problem.
THE GOLD TRUST.


The term honest money is seldom
heard except when the question OF pre-
serving the equities of time contracts
is under discussion. Honest money"
therefore, is money whose purchasing
power is precisely the same (no more
nor less) when debt falls due as it was
when the debt was contracted. Judged
by this true test, it is almost needless
to say that the world has never yet
seen perfectly honest money. By such
test money has fuctuated in its de-
grees of honesty with the huctuating
yield of the precious metals of which
it has been composed. AS this yield has
increased or diminished, prices have
risen or fallen with the fluctuations in
the supply of money in general
circulation, and the discharge Of
debts, payable in the future, has
grown more or less burdensome to debt
ors, and more or less gainful to cred
itors, in proportion to this yield. Hence
circulating medium composed of both
gold and silver money is more honest
than one composed of gold alone, be-
cause the supply of both metals is less
liable to fluctuations than that OF one
of them only, since a diminution in the
yield OF one metal has generally been
compensated for by an increased yield
of the other.
Thus, until silver was demonetized,
the supply of money was automatic in
its operation. It depended upon causes
that were beyond the control OF the
money changers. The effects of an in
crease or diminution of the precious
metals were therefore diffused over the
world, and all changes in the general
level of prices were slowly spread over
considerable periods of time, so that
business of all kinds gradually adapted
itself to such changes, without sudden
and great distress to the people. This
condition tended strongly to cause
the industrious and provident, and all
of the achievements of modern civiliza-
ton on the line of the betterment of
mankind have been wrought oct under
such condition.
Less than 80 years ago the money
changers and bondholders having be-
come dissatisfied with the profit de-
rived from the use of their capital in
vested in money and interest-bearing
securities of every kind, concluded to
double the purchasing power of such
capital by destroying, through legisla-
ton, the use of silver by the great COM
mercial nations. They thus doubled
the purchasing power of gold, which
the nature of their business enables
them without expense to monopolize ut
will. By this means the automatic op-
Grafton of money upon the worlds level
of prices was destroyed, and prices
placed under the almost complete con-
troll of artificial influences. Thus are
all natural trade movements which de-
pend upon the unimpeded operation of
the law of supply and demand prevent
ed, and the law itself overthrown. By
this artificial control over prices, ex-
ercised through their control over the
volume and distribution of money. the
money changers and their allied trusts
have eutrenched themselves between
the producer and consumer, not as
lgitimate middlemen, to facilitate COM
merce, but as autocrats debating to
producer and consumer alike the price
at which the one shall sell and the
other buy all the products of labor and
property.
The gold monopoly is now the breed
ing mother of all monopolies. All other
trusts followed swiftly upon the heels
of the formation of the gold trust: The
successful operation of all other monop-
olies depends upon their control of, or
assistance received from, one or more
banks clamorous for gold money only.
A free line of Accommodation flow
readily from the gold monopoly, rep
resented by the banks to all other
monopolies. The banks know that such
debtors hold certain industries in their
grip, and that their business will, there
fore, be successful, and their bank ac-
commodations secure. But with those
outside the pale of any trust, the banks
deal at arms length and with heavy
hand. Not until the gold trust is over
thrown will it be possible to overthrow
its aiders and abettors. AS they stand
united together. so will they fall to-
gether, or not at al1.-Hon. w. Fl. Clag.
gett, in Mississippi Valley Democrat.