The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1898-01-05
THE FEDERATloN's POSITION.
GOmpers Makes Reply to Secretary
Cages Letter.

| :
ton of Labor, has replied in an open let
ter to Secretary Cages recent letter
taking exceptions to the resolutions
passed by the federation with reference
j to the Gage financial bill. Mr.. Gompers
says, in part:
You take exception both to the position
| which our organization has taken upon
| your bill, as well as the language employed.
! Even if you are justified in the one, you
certainly misapprehend the other. I SUBJ
init that you will seek in vain for a single
denunciatory word either in regard to your
motives. your plan or your bill. We real
lie that denunciation is not argument, but
| to declare our position and the statement
| of fact in regard to a most important
and far-reachng measure, affecting and
changing the financial system Of the coun-
| try, can by no means be construed as de-
| nunciation.
| '"Those resolutions declare against your
| plan for more thoroughly committing our
| country to the gold standard, plan for de-
stroying our greenback currency and sub
| stituting bank notes, a plan, in fact, for
| weakening the control of the national gov
| eminent over that most important of all
| measures, the measure Of values, and
strengthening the banks-a plan aiming at
| what you call currency reform and which
| we call bank monopoly
'"That you should take offense at these
resolutions regret, for the right to express
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 ig-
norance. relative or absolute or allege
any evil purpose or 'perversity Of mo-
I tive on your part as implied in your let
ter, nor upon rereading the resolutions
Will you find them either condemnatory or
denunciatory, 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 integrity.
1.-THE wage-earners of America, repre-
scented in the American Federation of La
Dor, believe that the position taken in re-
gard to the retirement of the greenback
currency is antagonistic to their interests,
and they are opposed to your plan for more
thoroughly committing this country of ours
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 dishonest measure of values,
measure of values that interferes with
the just distribution of wealth, that de-
prives some men of part of their earnings
that is rightly theirs and confers 1t upon
others who have earned it not. Any meas
ure of values that thus forces an unjust
distribution of the products of labor, that
deprives 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 idleness, distress and public suf-
fering.
1.-The products of labor are divided into
three general shares. One share goes as
interest and rents to the money lender and
landlord, to capitalists who do not pro-
n hot, fol ytNe
to avoid the risks of production. A second
share goes as profits to employers. third
share goes as wages to wage-earners. The
interest charges and rents are to great
degree fixed, and profits and wages are
subject to great fluctuations. This being
so, it is clear that anything that reduces
the total money value of the products OF
labor must increase the share Of the money
lender and creditor. though nominally
fixed, and decrease the share to be divided
among employers and wage-earners. 1t Is
equally clear that to increase the value of
money must decrease the value of the
products of labor, and therefore enrich the
creditor at the expense of the debtor.
Changes in the value of money have
largely Influenced the movements Of prices
during the last half century and were great
factors In the price movements during one
long period. During the quarter Of GEN.
fury following the gold discoveries in Cali
of invention, much introducing of labor
saving machinery, much cheapening in .ne
labor cost of production. This, on your
theory, should have caused steadily fall
ing prices.
but what happened? The outpourings
of gold cheapened gold to a greater degree
than commodities were cheapened. and the
result was that prices were in general 80
per cent higher at the end of this period
than at the beginning. Then what hap
pened? We, along with many other ma
lions, closed our minis to silver. We IN
creased the demand for gold. with the re-
suit that gold went up In value and prices
of commodities down. You must abandon
the advocacy of gold monometallism I'M
less you can show that the decentralization
of silver and the doubling of the demand
for gold resultant therefrom has not
caused gold to grow dearer and prices
lower, to the great injury of all producers
of wealth. You should at least show that
the perpetuation of the gold standard will
not result in making money dearer and hui
man flesh cheaper.
"And now, just one word as to the second
of the resolutions to which you take ex-
ception. This resolution declares, and you
admit it, that the purpose of your currency
bill is to cause the retirement of our ma
tional greenback currency and all govern
ment paper money and the substitution of
bank notes. This you hold to be desirable.
Why? Would 1t not give the banks the
power to regulate our foreign exchanges,
the power to check gold exports by contrac-
tion and by screwing down accommoda-
ton to merchants so as to force them to
throw their products on the market at
prices at which our foreign creditors would
rather take such products than our gold?
Would it not thus relieve the treasury Of
the burden of providing for gold redemp-
ton and make the banks supreme? This
we hold to be undesirable. 1t would make
the banks guardian over our volume or
money, and so of our measure of values:
1t would enable the banks working In the
interest of the spectators to cause move
ments in prices with great certainty, enable
them to depress prices by contracting the
currency and raise prices by expanding the
same. It would make the banks the mas
tiers and many the slaves, and would enrich
the few and impoverish the multitude.
'In the statement you recently made be-
fore the house committee on banking and
currency in support of your bill you say
and repeat this truism: That the less the
government owes the less it will have to
, pay Yet your plan involves the propo,
sition of the retirement of our national
paper currency and greenbacks upon which