Daily capital journal. (Salem, Or.) 1896-1899, 1898-02-22
The Business
Mems Rebuke
To the indianapolis Monetary Com
mission.
An Association That Can't Concur in Any
of the Gold and Bank Measures.

The most important matter consid-
cred at the meeting of the Busines:
Mems Association the other evening
says the Chester PA. Republican, wa:
the reply prepared by the legislative
committee sent by the lndianapoli:
Monetary Commission in answer to a
request for the associations opinion
on the report and statement promul
gated by that commission.
The legislative committee recon-
mended that the following be sent as
the associations reply.
To the Executive Committee of the
Indianapolis Monetary Commission:
GENTLEMAN: The report of the
Monetary Commission to your honor
able body has been duly received, to-
gether with the request that this as
sociation officially consider it and re-
port to your body our views.
We respectfully report that we
have duly considered its provisions
and hereby advise you that we can
not concur in any, and must condemn
most of the proposed measures.
These recommendati1n are based
upon a series of false statements as to
the fundamental facts in the case,
and erroneous differences drawn from
them, among which are the following:
First. That gold is the present
staLdard of value in this country.
We beg to inform you that this is
not the case. Gold is not now, nor
has it ever been the standard in this
country. The american Dollar" is
our standard unit of value, entirely
independent of any of the materials
of which il may be made, and we re-
fer you to the law which created it
and the decisions of the Supreme
Court of the United States which
have interpreted the law, for full in
formation concerning it.
Second. The assumption based upon
the foregoing error, that our money
derives Its value from the value or the
gold from which part of it is made.
This is wholly false. Our money
derives its value from the only source
of value in the world, which Is the
law of supply aud demand. Our money
is made the debt paying instrument
by the fiat of government, and the
demand for money with which to pay
debts in this country is in excess Of
the supply, and its value is rising and
will continue TO rise until the supply
is increased.
For years the banks and clearing
houses have been injecting credit in
struments into our financial system
as substitutes for money, and to a
great extent have cOunteIacted tue
effect of the short supply of real
money; but this Initiation of credits
has reached and long since passed the
point of safety and cannot be further
expanded until larger base of ulti-
mate money is provided.
Third. That our stock OF silver
dollars (some 100000, ,O00) is debt
owed by the government to the own
ers Of this coin, and that in some way
or other, directly or indirectly, it Is
payable or redeemable ia gold, and for
this reason silver dollars are at par
with gold dollars.
This also Is wholly false.
The law is perfectly clear to the
contrary, and Secretary Carlisle, in
1896, and secretary Gage in 1897, each
In their official reports have dis
tinctly stated that "silver dollars are
standard coins of the United States
and are not redeemable."
We understand perfectly that this
is necessary link in the chain Of
errors with which it is sought to
bind us to the Gold standard for if
the "demand for money" and not
"Gold redemption" holds these dol
lars at par, there is not a shred Of
argument in the whole Gold standard
fabrication. We think it probable
that the most of your honorable body
(uot having examined the record,) do
not know that this assumption is false
but such men as John Sherman, John
G. Carlisle, Lyman ]. Gage, and ex-
Senator Edmuuds, whose name ap-
pears as chairman Of your commits
sion, are familiar with the facts, and
since they know that this statement
is false, and affirm it to be true, they
are here regarded as past masters
in the order of Ananias.
Fourth. That our national paper
currency is, at least by implication,
Tedeemable in gold
This is also false, and is given as
the ostensible reason for the patrl-
otic (?) effort now being made to re-
tire this currency, and save the gov
ernment from borrowing gold TO re-
notes which the banks SO unset
tishly ~ offer TO furnish.
We are constrained to suggest, how
ever, that the real reasons actuating
those of your number who really un-
derstand this question are:
(al That the greenbacks are legal
tender for private debts and cannot
be stipulated against by gold payment
clauses in private contracts; and since
silver dollars may be so Disseminated
against, this form Of money(the green
backs is the one thing that stands in
the way of the practical establish
ment Of the gold standard without
even the form Of law.
(b) That they are not redeemable in
gold, but in coin at the option OF the
government; and
(c) That their retirement with
bonds will furnish permanent iE-
Vestment for the banks, and make
room for bank notes to be furnished
and controlled by the bankers.
Fifth. That the depression Of bust
ness in recent years is due TO lack OF
confidence in the value of our money
and in the credit Of the government.
There is not scintilla Of truth in
this assumpi ion. The credit of the
government was meyer better, and In
the darkest hour of Onr recent depres'