Kansas City journal., 1898-01-13
BUT ONE MEASURE OF VALUES.
DOUBLE STANDARD NEVER EXISTED
AND NEVER CAN.
Attempt to Establish 1t Means Disas-
ter and Panic-Bcst standard Is
Gold Because Most Stable
Ex-Sccretnry Fair
child Heard.

pfenenSlNe revision OF the currency. I'm
Senator Edmunds. of Vermont. chairman
of the commission. headed the delegation.
| and with him were eX-Secretary of the
Treasury Fairchild. of New York; j. w.
Fries. of North Carolina. representing the
gold Democratic sentiment of the South;
Il. j. Bush. of Alabama. and Judge X. 5.
Tyler, of Indiana, representing the Middle
West. Secretary Gage was also present,
accompanied by the solicitor of the treas
ury. The hearing attracted much interest,
Il number of the members OF the house.
accompanied by ladies. being present.
Mr.. Edmunds was the first speaker He
said the fundamental principle which the
commission had felt was to be considered
in establishing a stable currency was. first,
to know what the standard of value in this
country is. and is to be. On this there
were many divergent views among finan-
cial authorities. Many believed, and he
was one Of these. that 1t was impossible
to have more than one standard of values.
IL this be true. then the question is, what
Is the best standard? The experience of
the world. Mr. Edmunds said, was that
the best standard was the one subject to
least change. one tc which all other values
most readily adjusted themselves; one
which will be the same when the transac-
ton closes it was when 1t opened. The
commission felt that such a thing as "A
double standard had never existed in the
world through natural operations. There
had been double standards established by
law. but never in fact. When 1t came to
an actual standard, there could be but one.
Mr.. Edmunds referred to the experience
of the great nations of the world. all show
ing, he said, that single standard meant
stability and safety, while legal attempts
at double standards meant disaster and
panic.
From this universal experience. Mr.. Ed
munds said. he and his associates mad
come TO the conclusion that the first prin-
ciple on which to base currency was
to have one standard, and that gold Is the
best standard, because it is the most stable
OF all standards of value. Feeling that one
standard was essential and that gold was
the best of these. the commission was
brought to the gold standard as their frSt
proposition.
That, however, did not exclude the use
OF silver, or any other metal, to the lars,
est extent that they could be maintained
on an equality with the one liked and
invariable standard of gold.
Mr.. EdmundS then took up the propo-
silion of the commissions bill. proposing
u retirement of United States notes. eX.
planning and urging this on the lines OF
the commissions report. He closed with
q strong appeal for early action.
Representative Cox. Democrat. of Tenn
essee, pronounced a series of questions in
tended to bring out that the effect of the
bill woul be to convert all debts. public and
private, into gold obligations. Mr.. Ed
| munds answered that it would convert
every government obligation. except a few
of minor form. into gold obligations: and
stated. broadly, that the effect would be
to make all United States obligations pay
between citizens, Mr.. Edmunds answered
emphatically in the negative.
Mr.. Walker asked II the bill was designed
to change the legal tender quality of the
standard silver dollar.
Mr.. Edmunds answered that it would not.
The only purpose was to give the silver
dollar distinct reference to one fixed
standard. without naming ratio. Exist
ing conditions were not changed, but
doubts We're removed.
Mr.. Walker suggested the question of
expediency In carrying so large a question
356 members ready for months of debate.
Mr.. Edmunds replied that the commission
had reported what it deemed to be essen
tial and right TO a proper adjustment of
right thing, despite questions of eXpedi-
ency: This brought a round of applause,
Representative pres Newlands, slverte, of
Nevada. discussed with Mr.. Edmunds the
effect of the bill in contracting. the cur
rency. Mr.. Edmunds did not believe con-
traction would occur, or that bank reserves
would be injuriously affected by having
the supply Of greenbacks limited and in
part displaced by the demand for gold. Mr..
Newlands asked if the world had sutti-
cheney of gold.
Not a sntticiiency of gold, or Of virtue"
that led to the rush 10, the Klondike."
Ex,secretary FairchIld me-, next spoke on the
this. however. by saying that monetary
standards We're no more subject to govern
1t was a natural and economical operation
between individuals. In which each sought
the best. Governments had adopted stand
ards already in existence and thus serv-
ing the convenience of the people. but they
had never created a standard. When gov
ernment. sought to make a standard. IT
Eierely interrupted the natural law and
embarrassed natural exchanges. The ques-
ton was not one of theory. but one of
fact, the same as the existence of steam or
electricity. 1t was no more possible for a
law to ignore this fact of IL natural stand
ard than to ignore the existence OF cleo
trcity. Making thing legal tender gave
The great body of the people. he said
used banking as a great benefcent instru-
nent of civilization, and 1t was the peo-
pie, not the bankers. who We're helped by
wise government action This view, he
declared. removed narrow preJudiceS and
placed the subject on a broader, public
plane
The design of the banking feature Of the
commissions bill was TO facilitate the nat
Lral operations of banking and exchange.
by adding the governments aid toward
rapidity. certainty and safety of these ex-
changes.
After an hours recess and before con-
tnuing Hr Fairchild's hearing, Mr.. Now
lands made motion that the committee
on ways and means and the committee on
coinage be invited to participate in these
hearings.
Mr.. johnson. of Indiana, opposed the mo-
tion. saying it would embarrass and delay
the subject; leading OF Of TO IN, many my, new In.
town meeting. The motion was defeat
ed. Mr.. Fairchild then went on with his
statement.
Mr. Cox asked if he was right in un-
derstanding that the measure accomplished
two things: First. the establishment of
the gold Standard second. the retirement
of all paper currency except national bank
Mr. Fairchild assented to this. saying it
was the practical effect of the bill.
Mr. Fairchild will proceed with his hear
ing Tomorrow
Mr. Bush, of Anniston, Ala. a member Of
the monetary commission. was next heard.
He said 1t would not be to the credit of
any party to check this movement for cur
rency reform, or to fail to embrace the op-
portunity to execute.
There were some who We're SO bound up
the country that the tariff would accom-
pIish everything. But the tariff would not
cure the vital evils of the currency. 1t
was quite as important Tor members of
battleships and cruisers as a preparation
for emergency.
At the conclusion of Mr.. Bush's state
| ment. the committee adjourned until to-
morrow when the hearing will be re-
sumed.
Chairman Walker and Representative
Fowler of the committee. met members of
| the commission tonight with Il view to
seeing If there was any basis of agree
ment between their financial bills and
those of the commission and of Secretary
Gage.
International Bank Scheme.
New York. Jan. 12.-At a meeting of the
New York board of trade to-day reso-
nd fad ir1