The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-01-01
HE SPEAKS FOR LABOR
Presiasot Gompers Answers Let
ter OF Mr.. Gage.
He Explains the Opposition OF the
American Federation co the
Financial Plan Promulga-
ted by the Secretary.


Washington, Dec 3o.-Samuel Com
pers, president OF the American Fedora
Non OF Labor. has replied in an open let
ter 10 Secretary Cages recent letter
taking exceptions 10 the resolutions
passed by the federation with reference
70 the Gage financial bill. Mr.. Gompers
says, In part;
You take exception both 10 the position
which our organization has taken upon
your blu as well as the language employed.
Even II you are justified In the one, you
certainly misapprehend the other. i sub
NIT that you Will seek IN vain for a single
denunciatory word either In regard 10 your
motives your plan or your bill. We real
lie that denunciation Is not argument, but
70 declare our position and the statement
OF fact In regard 10 most important
and far-reaching measure, affecting and
changing the financial system OF the coun-
try, can by no means be construed as de-
nunciation.
Would lie bank Monopoly.
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
shutting 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 ana which
we call bank monopoly
THAT you should take offense at these
resolutions 1 regret. for the right 20 express
disapproval OF the acts OF their servants
Is one OF the rights held sacred by the
American people, and one you viii freely
accord. We do not charge you with ig
norance, relative or absolute, or allege
any evil purpose or a 'perVersity OF mo-
tive on your part, as implied In your let
ter, nor upon rereading the resolutions
WI w al NE fl.rr, TOR.
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 integrity.
Evils OF the Gold Standard.
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 10 their interests,
and they are opposed 10 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. 4 answer that The evils
are those that have grown and ever must
grow from a dishonest measure OF values.
a measure OF values that interferes with
the just distribution OF wealth, that de-
prives some men OF a part OF their earnings
that Is rightly theirs and confefs IL upon
others who have earned Il not. Any meas
ure OF values that thus forces an unjust
distribution OF the products OF labor, that
deprves the producers OF the fruits OF
their toll cuts down wages and profits
thereby destroys the incentive 10 enter
prise, leads TO Industrial stagnation. en-
forced idleness. distress and public suf-
How Labor Ii Injured.
"Thc 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-
ductively use their own capital who seek
10 avoid the risks OF production. A second
share goes as profits TO employers, third
share goes as wages TO wage-Carners. The
interest charges and rents are TO a great
degree fixed, and profits and wages are
subject 10 great fluctuations. This being
so, IL 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 nomnally
fixed, and decrease the share TO be divided
among employers and wage-earners. Ii IS
equally clear that 10 increase the value OF
money must decrease the value or the
products OF labor, and therefore enrich the
creditor at the expense OF the debtor.
Now. II our adherence 10 the gold stand
ard has caused money to grow dearer. you
must admit that the gold standard has done
injury 10 our people, brought distress 10
wage-earners and employers and discour-
aged enterprises. Our adherence 10 the
gold StauuhTu mas 0dhaCu money 10 grow
In value, and. OF course. forced the things
measured In money TO fall IN price
However, II Is not alone TO the cheapen-
Ing Of the labor cost OF production, but also
10 an actual appreciation OF gold that the
fall In prices since 1872 has been In great
part due. And this appreciation has grown
out OF the decentralization OF silver, which
has Increased the demand for gold. This
is a question that every producer can an
swer. Has the fall In prices curtaied my
fnl iu ha hoe
due only to general improved methods OF
production, a lcssening OF the true cost or
production, he has suffered no loss from
such fall Moreover. the fail In prices since
1898, common TO all gold-using countries. a
fall in prices Of 20 per cent, has not grown
out Of improvement In machinery exclu-
sively: that the labor cost or production
has not been increased by one-tifth IN these
past years. and that therefore the cause
OF this fall In prices must lie IN what, II not
In dearer money, and was due primarily to
an appreciation OF gold.
Retirement of Greenbacks.
And now, just ono word as TO the second
OF the resolutions TO which you take ex-
ception. This resolution declares, and you
admit II, 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 or
bank notes. This you hold TO be desirable.
why? Would II not give the banks the
power TO regulate our foreign exchanges.
the power TO check gold exports by contrac-
ton and by screwing down accommoda-
ton to merchants so as 10 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 IL not thus relieve the treasury or
the burden OF providing for gold redemp-
ton and make the banks supreme7 This
we hold 10 be undesirable 10 would make
the banks guardian over our volume or
money and 50 OF our measure OF values
Il would enable the banks working In the
interest OF the spectators TO cause move
ments In prices with great certainty enable
them to deprcss prices by contracting the
currency and raise prices by expanding the
same. II would make the banks the mas
tiers and many the slaves, and would enrich
the few and impoverlsh the multitude.
I'VE oppose your currency Dill because,
az has been well said, ~ j. OH 70 PROVIDE
for the abdIcation OF the sovereign powers
OF the government 20 the banks, Tor
strengthening the hands OF the speculative