The record-union., 1898-09-16

It Redeem Itself.
OMAHA. Sept 15-The third and
last day of the onal Currency Con-
vention began with a paper in support
of an unlimited issue of irredeemable
currency by the Government by Gen
eral A. j. Warner, President of the
American Bimetallic Union. The Mid
dle-of- the-Road fatist editors of the
Reform Press Association were so
anxious to be heard, regardless of the
arranged program, that it was with
difficulty that Congressman Charles ).
Hartman of Montana, who presided,
could keep them in order.
General Warner said the debate would
be divided into first, the advocacy Of
bank currency; second, a plea for
governmental currency to circulate
concurrently with the metals; and,
third, an affirmation of an irredeem
able Government paper currency or alb
solute fiatisn1. AS to the defense of fall
ing prices made by the gold standard
advocates, he said he concurred in their
opinions except as to farm products,
for which the labor cost had decreased,
and with the further qualifications that
there had been no reduction in the fixed
charges, such as transportation rates,
debts and taxes. General Warner said
in part:
THE measure of the effect of paper
money on prices and on other money
does not depend upon whether or not
it is covered by coin, dollar 1or dollar,
any more than upon the color or tex
ture of the fiber of the paper on which
the insignia of money is stamped, but
put into circulation. The principle is
the same whether applied to paper
money or to gold and silver coin or to
gold alone. No economist surely will
dispute the proposition that if the stock
of gold should be at once largely in
creased by new finds of gold, while the
worlds needs for money We're un-
changed, that the value of gold every
where would be decreased and prices
would rise This would amount to a
virtual alteration of the existing stand
ard. The effect, no doubt of the res
toration of silver to unrestricted mint
age would lower the value of all money
including gold as would be evident by
a general rise of prices. On the other
hand should the supply of gold for
money be cut off by reduced production
and increased demand for it for the arts
or for other non-monetary purposes,
while the worlds needs for money con-
tinue the same, and no other money
was substituted for the gold, the value
of gold would be increased and prices
wouldi fall This is exactly what has
taken place the last thirty years.
"By the decentralization of silver and
the extension of the gold standard to
countries Heretofore using little or no
gold for money, the demand for gold
relatively to its supply has largely in
creased and it's value correspondingly
augmented. But the point 1 wish es-
pecially to emphasize here is this, that
the effect Of the increase or decrease of
paper money to the extent that it takes
the place of or adds to metallic money,
or to the extent that it does the work
of metallic money, has the same effect
on general prices, and on gold itself, or
on so-called standard money, as would
so much additional gold obtained from
altogether new sources and put into
circulation. Any considerable increase
of paper money in countries now on the
gold standard, as England, France,
Germany. etc. would lower the value
of all money, including gold. This, too,
might take place if but one country
per. If it were issued in sufficient
quantity TO expel its gold, which. be-
coming added to other gold countries,
would lower it's value everywhere. This
has taken place time and again.
"A national currency issued by the
General Government should be legal
tneder: that is, should be money in the
fullest sense. / hope some one here
will explain just how paper currency
IS made better by depriving it Of the
mower of legal tender. and what the
public is to gain by the substitution OF
non-legal tender notes of banks in the
place of our present legal tender green
back currency.
s.The issue is fairly presented be-
tween currency issued by thousands
of banks. scattered all over the country
as their interests alone may dictate
for they will be governed by no other
principle; they can be governed py nc
other-and currency issued and con
trolled by the Government in the inter
est of all the people, and with the view
of securing at ali times stability In the
value of money and prices, thereby pro-
ducing conditions most favorable TO IN
dustrial and commercial prosperity
Whatever may be the result now, IN th'
end the public welfare will control, ahe
the power that controls coinage wIl
also control the issue of paper cur
rency''
A reply was made to him by Con
gresham c. n. Fowler of New Jersey
who supported bank currency.
Mr.. Fowler said the only logical posi-
ton the Silverites could take was ina
of General Warner: that If they coult
legislate value into silver they eouls
legislate value into paper and make /
redeem itself.
1.-The safeguard that will insure fhe
current convertibility of every note Is
y sued by the banks into the measure o.
value of the country will be an abso
lnte guaranty to the people that tha'
hank currency is as good as gold com
,f the standard of the country is gold
This has been proved by every leadins
commercial country outside of th'
United States, and can be readily ane
safely adopted here by giving tht